UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-4118
Fidelity Securities Fund
(Exact name of registrant as specified in charter)
245 Summer St., Boston, Massachusetts 02210
(Address of principal executive offices) (Zip code)
William C. Coffey, Secretary
245 Summer St.
Boston, Massachusetts 02210
(Name and address of agent for service)
Registrant's telephone number, including area code:
617-563-7000
Date of fiscal year end: | July 31 |
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Date of reporting period: | July 31, 2019 |
Item 1.
Reports to Stockholders
Fidelity® Blue Chip Growth Fund Annual Report July 31, 2019 |
 |
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of a fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a financial advisor, broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from a fund electronically, by contacting your financial intermediary. For Fidelity customers, visit Fidelity's web site or call Fidelity using the contact information listed below.
You may elect to receive all future reports in paper free of charge. If you wish to continue receiving paper copies of your shareholder reports, you may contact your financial intermediary or, if you are a Fidelity customer, visit Fidelity’s website, or call Fidelity at the applicable toll-free number listed below. Your election to receive reports in paper will apply to all funds held with the fund complex/your financial intermediary.
| Account Type | Website | Phone Number |
| Brokerage, Mutual Fund, or Annuity Contracts: | fidelity.com/mailpreferences | 1-800-343-3548 |
| Employer Provided Retirement Accounts: | netbenefits.fidelity.com/preferences (choose 'no' under Required Disclosures to continue to print) | 1-800-343-0860 |
| Advisor Sold Accounts Serviced Through Your Financial Intermediary: | Contact Your Financial Intermediary | Your Financial Intermediary's phone number |
| Advisor Sold Accounts Serviced by Fidelity: | institutional.fidelity.com | 1-877-208-0098 |
Contents
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-800-544-8544 if you’re an individual investing directly with Fidelity, call 1-800-835-5092 if you’re a plan sponsor or participant with Fidelity as your recordkeeper or call 1-877-208-0098 on institutional accounts or if you’re an advisor or invest through one 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. © 2019 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT. Forms N-PORT are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-PORT 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.institutional.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.
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
| For the periods ended July 31, 2019 | Past 1 year | Past 5 years | Past 10 years |
| Fidelity® Blue Chip Growth Fund | 9.09% | 14.67% | 16.92% |
| Class K | 9.20% | 14.79% | 17.07% |
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity® Blue Chip Growth Fund, a class of the fund, on July 31, 2009.
The chart shows how the value of your investment would have changed, and also shows how the Russell 1000® Growth Index performed over the same period.
See above for additional information regarding the performance of Fidelity® Blue Chip Growth Fund.
| Period Ending Values | ||
| $47,721 | Fidelity® Blue Chip Growth Fund | |
| $43,142 | Russell 1000® Growth Index | |
Management's Discussion of Fund Performance
Market Recap: The U.S. equity bellwether S&P 500® index gained 7.99% for the 12 months ending July 31, 2019, beginning the new year on a high note after enduring a historically volatile final quarter of 2018. Upbeat company earnings/outlooks and signs the Federal Reserve may pause on rates boosted stocks to an all-time high on April 30. In May, however, volatility spiked and stocks returned -6.35% for the month amid the Fed’s decision to hold interest rates steady and signal that it had little appetite to adjust them any time soon, as well as retaliatory tariffs imposed on the U.S. by China. The downtrend was similar to late 2018, when many investors fled from risk assets on elevated concerns about future economic growth, global trade and tighter monetary policy. The bull market roared back in June, with the S&P 500® rising 7.05%, and recorded a series of all-time highs in a productive July (+1.44%). For the full 12 months, growth stocks outpaced value, while large-caps handily bested small-caps. By sector, information technology (+19%) led the way, boosted by continued strength in software & services (+26%), the market’s largest industry segment. Three defensive groups also stood out – real estate (+18%), utilities (+17%) and consumer staples (+15%) – followed by consumer discretionary (+10%) and communication services (+8%). In contrast, energy (-16%) was by far the weakest sector. Other notable laggards included materials (0%), financials (+3%), industrials (+4%) and health care (+4%).Comments from Portfolio Manager Sonu Kalra: For the fiscal year, the fund's shares classes returned about 9%, behind the 10.82% result of the Russell 1000® Growth Index. Versus the index, security selection in consumer discretionary, industrials, materials and financials hampered the fund’s relative result. Positioning in communication services and energy also hurt, as did an underweighting in real estate. In terms of individual detractors, an overweighting in graphics chip designer Nvidia (-31%) hurt the most. Shares of Nvidia suffered as the firm grappled with excess inventory amid a slowdown in capital spending from some of Nvidia’s customers. Another notable relative detractor was an outsized stake in Activision Blizzard (-33%). Shares of the video-gaming company were hurt by strong competition from the blockbuster online game Fortnite. Conversely, the fund’s non-index investment in e-cigarette maker JUUL Labs was by far the fund’s biggest relative contributor. The company, which is not publicly traded, has emerged as a leader in the rapidly growing electronic cigarette market, given that its disruptive technology is intended to offer smokers a potentially safer alternative to traditional, combustible cigarettes. JUUL’s success in penetrating the U.S. market supported a higher estimate of fair value for this position. Choices in information technology and an underweighting in industrials also contributed, albeit to a much lesser degree.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Investment Summary (Unaudited)
Top Ten Stocks as of July 31, 2019
| % of fund's net assets | |
| Amazon.com, Inc. | 7.1 |
| Alphabet, Inc. Class A | 6.7 |
| Apple, Inc. | 5.8 |
| Microsoft Corp. | 5.2 |
| Facebook, Inc. Class A | 4.2 |
| Salesforce.com, Inc. | 2.7 |
| JUUL Labs, Inc. Series C | 2.7 |
| Visa, Inc. Class A | 2.6 |
| Marvell Technology Group Ltd. | 2.4 |
| MasterCard, Inc. Class A | 1.9 |
| 41.3 |
Top Five Market Sectors as of July 31, 2019
| % of fund's net assets | |
| Information Technology | 35.3 |
| Consumer Discretionary | 22.8 |
| Communication Services | 16.5 |
| Health Care | 11.9 |
| Consumer Staples | 5.6 |
Asset Allocation (% of fund's net assets)
| As of July 31, 2019 * | ||
| Stocks | 95.8% | |
| Convertible Securities | 4.2% | |
* Foreign investments - 11.2%
Schedule of Investments July 31, 2019
Showing Percentage of Net Assets
| Common Stocks - 95.8% | |||
| Shares | Value (000s) | ||
| COMMUNICATION SERVICES - 16.5% | |||
| Entertainment - 3.6% | |||
| Activision Blizzard, Inc. | 3,126,734 | $152,397 | |
| Netflix, Inc. (a) | 1,299,238 | 419,641 | |
| Nintendo Co. Ltd. | 57,700 | 21,227 | |
| Nintendo Co. Ltd. ADR | 197,623 | 9,128 | |
| Take-Two Interactive Software, Inc. (a) | 300,497 | 36,817 | |
| The Walt Disney Co. | 2,538,976 | 363,099 | |
| WME Entertainment Parent, LLC Class A (a)(b)(c)(d) | 9,962,399 | 31,979 | |
| 1,034,288 | |||
| Interactive Media & Services - 12.6% | |||
| Alphabet, Inc.: | |||
| Class A (a) | 1,568,657 | 1,910,938 | |
| Class C (a) | 105,340 | 128,165 | |
| ANGI Homeservices, Inc. Class A (a) | 56,830 | 787 | |
| CarGurus, Inc. Class A (a) | 636,459 | 23,721 | |
| Facebook, Inc. Class A (a) | 6,140,365 | 1,192,643 | |
| IAC/InterActiveCorp (a) | 71,489 | 17,089 | |
| Match Group, Inc. (e) | 346,021 | 26,052 | |
| Snap, Inc. Class A (a)(e) | 1,715,745 | 28,825 | |
| Tencent Holdings Ltd. | 2,920,600 | 136,079 | |
| Twitter, Inc. (a) | 2,508,620 | 106,140 | |
| Zillow Group, Inc. Class C (a)(e) | 119,100 | 5,950 | |
| 3,576,389 | |||
| Media - 0.1% | |||
| Sinclair Broadcast Group, Inc. Class A | 324,345 | 16,298 | |
| Wireless Telecommunication Services - 0.2% | |||
| T-Mobile U.S., Inc. (a) | 748,514 | 59,679 | |
| TOTAL COMMUNICATION SERVICES | 4,686,654 | ||
| CONSUMER DISCRETIONARY - 22.4% | |||
| Auto Components - 0.0% | |||
| Aptiv PLC | 113,370 | 9,937 | |
| Automobiles - 1.2% | |||
| Tesla, Inc. (a)(e) | 1,400,950 | 338,484 | |
| Diversified Consumer Services - 0.0% | |||
| Afya Ltd. | 240,600 | 6,958 | |
| Hotels, Restaurants & Leisure - 2.9% | |||
| Chipotle Mexican Grill, Inc. (a) | 30,758 | 24,469 | |
| Churchill Downs, Inc. | 71,300 | 8,531 | |
| Dunkin' Brands Group, Inc. | 35,200 | 2,822 | |
| Eldorado Resorts, Inc. (a) | 1,190,068 | 53,696 | |
| Hilton Grand Vacations, Inc. (a) | 1,021,604 | 33,406 | |
| Kambi Group PLC (a) | 543,523 | 6,976 | |
| McDonald's Corp. | 176,547 | 37,202 | |
| Planet Fitness, Inc. (a) | 993,036 | 78,112 | |
| PlayAGS, Inc. (a) | 1,090,078 | 20,450 | |
| Restaurant Brands International, Inc. | 892,620 | 65,739 | |
| Royal Caribbean Cruises Ltd. | 627,239 | 72,973 | |
| Sea Ltd. ADR (a)(e) | 4,512,989 | 158,406 | |
| Shake Shack, Inc. Class A (a) | 453,907 | 33,889 | |
| Starbucks Corp. | 1,180,727 | 111,803 | |
| Vail Resorts, Inc. | 59,500 | 14,668 | |
| Wynn Resorts Ltd. | 670,446 | 87,205 | |
| 810,347 | |||
| Household Durables - 0.4% | |||
| D.R. Horton, Inc. | 565,416 | 25,970 | |
| Mohawk Industries, Inc. (a) | 425,667 | 53,076 | |
| Roku, Inc. Class A (a) | 335,332 | 34,650 | |
| 113,696 | |||
| Internet & Direct Marketing Retail - 10.2% | |||
| Alibaba Group Holding Ltd. sponsored ADR (a) | 1,469,697 | 254,419 | |
| Amazon.com, Inc. (a) | 1,079,888 | 2,015,914 | |
| Chewy, Inc. | 150,900 | 5,064 | |
| JD.com, Inc. sponsored ADR (a) | 3,181,503 | 95,159 | |
| MakeMyTrip Ltd. (a) | 210,281 | 5,381 | |
| Meituan Dianping Class B | 3,540,004 | 28,625 | |
| MercadoLibre, Inc. (a) | 112,065 | 69,639 | |
| Ocado Group PLC (a) | 404,351 | 6,125 | |
| Pinduoduo, Inc. ADR (e) | 3,211,711 | 71,525 | |
| The Booking Holdings, Inc. (a) | 115,767 | 218,407 | |
| The Honest Co., Inc. (a)(c)(d) | 150,143 | 2,204 | |
| The RealReal, Inc. (e) | 988,900 | 24,277 | |
| Wayfair LLC Class A (a) | 599,025 | 78,568 | |
| 2,875,307 | |||
| Multiline Retail - 0.9% | |||
| Dollar General Corp. | 100,530 | 13,473 | |
| Dollar Tree, Inc. (a) | 1,940,726 | 197,469 | |
| Dollarama, Inc. | 243,600 | 9,026 | |
| Ollie's Bargain Outlet Holdings, Inc. (a) | 131,755 | 11,158 | |
| Target Corp. | 420,960 | 36,371 | |
| 267,497 | |||
| Specialty Retail - 3.6% | |||
| American Eagle Outfitters, Inc. | 1,446,483 | 25,588 | |
| Burlington Stores, Inc. (a) | 401,785 | 72,623 | |
| Carvana Co. Class A (a)(e) | 620,922 | 39,466 | |
| Five Below, Inc. (a) | 393,234 | 46,189 | |
| Floor & Decor Holdings, Inc. Class A (a) | 1,080,307 | 42,294 | |
| IAA Spinco, Inc. (a) | 67,900 | 3,174 | |
| John David Group PLC | 364,000 | 2,876 | |
| Lowe's Companies, Inc. | 2,847,494 | 288,736 | |
| RH (a)(e) | 622,887 | 86,830 | |
| The Children's Place Retail Stores, Inc. | 134,219 | 13,109 | |
| The Home Depot, Inc. | 1,311,075 | 280,164 | |
| TJX Companies, Inc. | 910,718 | 49,689 | |
| Ulta Beauty, Inc. (a) | 165,113 | 57,666 | |
| 1,008,404 | |||
| Textiles, Apparel & Luxury Goods - 3.2% | |||
| adidas AG | 335,275 | 107,466 | |
| Allbirds, Inc. (c)(d) | 36,216 | 1,814 | |
| Canada Goose Holdings, Inc. (a) | 290,419 | 13,601 | |
| Capri Holdings Ltd. (a) | 943,501 | 33,579 | |
| Crocs, Inc. (a) | 424,563 | 9,701 | |
| lululemon athletica, Inc. (a) | 1,425,881 | 272,472 | |
| LVMH Moet Hennessy Louis Vuitton SE | 91,026 | 37,599 | |
| Moncler SpA | 876,496 | 36,065 | |
| NIKE, Inc. Class B | 2,685,106 | 231,000 | |
| PVH Corp. | 787,744 | 70,046 | |
| Revolve Group, Inc. (e) | 444,900 | 15,336 | |
| Tapestry, Inc. | 1,112,780 | 34,418 | |
| Tory Burch LLC (a)(b)(c)(d) | 293,611 | 18,859 | |
| Under Armour, Inc. Class C (non-vtg.) (a) | 1,209,934 | 24,610 | |
| 906,566 | |||
| TOTAL CONSUMER DISCRETIONARY | 6,337,196 | ||
| CONSUMER STAPLES - 2.7% | |||
| Beverages - 0.4% | |||
| Constellation Brands, Inc. Class A (sub. vtg.) | 44,800 | 8,818 | |
| Fever-Tree Drinks PLC | 1,291,029 | 36,676 | |
| Keurig Dr. Pepper, Inc. | 932,308 | 26,235 | |
| Monster Beverage Corp. (a) | 554,015 | 35,717 | |
| Pernod Ricard SA | 14,178 | 2,496 | |
| 109,942 | |||
| Food & Staples Retailing - 1.1% | |||
| BJ's Wholesale Club Holdings, Inc. (a) | 2,664,791 | 62,782 | |
| Costco Wholesale Corp. | 766,822 | 211,359 | |
| Grocery Outlet Holding Corp. | 71,500 | 2,784 | |
| Walmart, Inc. | 280,200 | 30,928 | |
| 307,853 | |||
| Food Products - 0.2% | |||
| Darling International, Inc. (a) | 254,338 | 5,171 | |
| JBS SA | 525,100 | 3,426 | |
| Nestle SA (Reg. S) | 30,957 | 3,284 | |
| The Kraft Heinz Co. | 540,200 | 17,292 | |
| Tyson Foods, Inc. Class A | 332,720 | 26,451 | |
| 55,624 | |||
| Household Products - 0.0% | |||
| Energizer Holdings, Inc. | 214,300 | 9,018 | |
| Personal Products - 0.4% | |||
| Coty, Inc. Class A | 4,447,744 | 48,525 | |
| Estee Lauder Companies, Inc. Class A | 389,771 | 71,792 | |
| 120,317 | |||
| Tobacco - 0.6% | |||
| Altria Group, Inc. | 3,130,804 | 147,367 | |
| JUUL Labs, Inc. (a)(c)(d) | 6,625 | 1,888 | |
| JUUL Labs, Inc. Class A (a)(c)(d) | 21,148 | 6,027 | |
| 155,282 | |||
| TOTAL CONSUMER STAPLES | 758,036 | ||
| ENERGY - 0.6% | |||
| Oil, Gas & Consumable Fuels - 0.6% | |||
| Continental Resources, Inc. (a) | 557,096 | 20,707 | |
| Diamondback Energy, Inc. | 273,858 | 28,325 | |
| Hess Corp. | 335,515 | 21,755 | |
| Pioneer Natural Resources Co. | 20,900 | 2,885 | |
| Reliance Industries Ltd. | 5,052,338 | 85,059 | |
| 158,731 | |||
| FINANCIALS - 0.9% | |||
| Banks - 0.4% | |||
| Bank of America Corp. | 2,428,859 | 74,517 | |
| HDFC Bank Ltd. sponsored ADR | 23,832 | 2,740 | |
| ICICI Bank Ltd. sponsored ADR | 494,609 | 6,039 | |
| IndusInd Bank Ltd. | 184,465 | 3,767 | |
| Kotak Mahindra Bank Ltd. | 900,886 | 19,807 | |
| 106,870 | |||
| Capital Markets - 0.0% | |||
| Edelweiss Financial Services Ltd. | 1,204,598 | 2,543 | |
| HDFC Asset Management Co. Ltd. (f) | 1,726 | 54 | |
| MSCI, Inc. | 48,800 | 11,089 | |
| 13,686 | |||
| Diversified Financial Services - 0.0% | |||
| GDS Holdings Ltd. ADR (a)(e) | 302,031 | 12,438 | |
| Insurance - 0.3% | |||
| eHealth, Inc. (a) | 691,078 | 71,699 | |
| Thrifts & Mortgage Finance - 0.2% | |||
| Housing Development Finance Corp. Ltd. | 697,722 | 21,423 | |
| LendingTree, Inc. (a)(e) | 125,292 | 40,412 | |
| 61,835 | |||
| TOTAL FINANCIALS | 266,528 | ||
| HEALTH CARE - 11.7% | |||
| Biotechnology - 4.3% | |||
| AbbVie, Inc. | 1,539,200 | 102,542 | |
| ACADIA Pharmaceuticals, Inc. (a) | 255,082 | 6,270 | |
| Acceleron Pharma, Inc. (a) | 242,820 | 10,602 | |
| Agios Pharmaceuticals, Inc. (a) | 293,129 | 14,102 | |
| Aimmune Therapeutics, Inc. (a)(e) | 521,860 | 10,046 | |
| Alexion Pharmaceuticals, Inc. (a) | 2,011,307 | 227,861 | |
| Allakos, Inc. (a) | 152,727 | 5,310 | |
| Allogene Therapeutics, Inc. (e) | 112,439 | 3,486 | |
| Alnylam Pharmaceuticals, Inc. (a) | 808,979 | 62,769 | |
| AnaptysBio, Inc. (a) | 177,345 | 9,525 | |
| Arena Pharmaceuticals, Inc. (a) | 355,430 | 22,278 | |
| Argenx SE ADR (a) | 45,663 | 6,414 | |
| Ascendis Pharma A/S sponsored ADR (a) | 401,321 | 46,457 | |
| Atara Biotherapeutics, Inc. (a) | 13,320 | 190 | |
| Axcella Health, Inc. | 296,218 | 2,261 | |
| BeiGene Ltd. | 587,600 | 6,033 | |
| BeiGene Ltd. ADR (a) | 136,661 | 18,769 | |
| bluebird bio, Inc. (a) | 313,921 | 41,196 | |
| Blueprint Medicines Corp. (a) | 121,589 | 12,177 | |
| Bridgebio Pharma, Inc. (e) | 258,300 | 7,581 | |
| CareDx, Inc. (a) | 1,067,181 | 34,972 | |
| Cellectis SA sponsored ADR (a) | 128,924 | 1,876 | |
| Cibus Corp.: | |||
| Series C (a)(b)(c)(d) | 3,045,600 | 5,093 | |
| Series D (a)(b)(c)(d) | 1,716,640 | 2,146 | |
| Coherus BioSciences, Inc. (a) | 571,499 | 9,613 | |
| Crinetics Pharmaceuticals, Inc. (a) | 264,890 | 5,372 | |
| CytomX Therapeutics, Inc. (a)(f) | 378,621 | 3,904 | |
| Denali Therapeutics, Inc. (a)(e) | 603,819 | 12,892 | |
| Editas Medicine, Inc. (a)(e) | 444,777 | 11,231 | |
| Epizyme, Inc. (a) | 110,005 | 1,459 | |
| Exact Sciences Corp. (a) | 108,577 | 12,498 | |
| FibroGen, Inc. (a) | 436,448 | 20,627 | |
| Global Blood Therapeutics, Inc. (a) | 637,844 | 34,954 | |
| Immunomedics, Inc. (a)(e) | 644,138 | 9,501 | |
| Intellia Therapeutics, Inc. (a)(e) | 546,573 | 9,893 | |
| Intercept Pharmaceuticals, Inc. (a) | 322,141 | 20,247 | |
| Ionis Pharmaceuticals, Inc. (a) | 149,831 | 9,868 | |
| Ironwood Pharmaceuticals, Inc. Class A (a) | 959,699 | 10,202 | |
| Natera, Inc. (a) | 808,272 | 22,292 | |
| Neurocrine Biosciences, Inc. (a) | 536,938 | 51,755 | |
| Principia Biopharma, Inc. | 100,910 | 3,748 | |
| Repligen Corp. (a) | 32,500 | 3,068 | |
| Rubius Therapeutics, Inc. | 125,141 | 1,664 | |
| Sage Therapeutics, Inc. (a) | 471,907 | 75,666 | |
| Sarepta Therapeutics, Inc. (a) | 504,557 | 75,103 | |
| Scholar Rock Holding Corp. (a) | 163,509 | 2,010 | |
| The Medicines Company (a)(e) | 559,577 | 20,055 | |
| TransMedics Group, Inc. | 353,360 | 8,385 | |
| Vertex Pharmaceuticals, Inc. (a) | 490,484 | 81,724 | |
| Xencor, Inc. (a) | 410,010 | 18,049 | |
| Zai Lab Ltd. ADR (a) | 477,878 | 15,349 | |
| 1,211,085 | |||
| Health Care Equipment & Supplies - 3.2% | |||
| Alcon, Inc. (a) | 567,579 | 33,345 | |
| Atricure, Inc. (a) | 176,520 | 5,663 | |
| Axonics Modulation Technologies, Inc. (a)(e) | 302,638 | 11,107 | |
| Boston Scientific Corp. (a) | 7,658,107 | 325,163 | |
| Danaher Corp. | 416,290 | 58,489 | |
| DexCom, Inc. (a) | 152,053 | 23,853 | |
| Edwards Lifesciences Corp. (a) | 41,600 | 8,855 | |
| Establishment Labs Holdings, Inc. (a)(e) | 371,217 | 9,266 | |
| Inspire Medical Systems, Inc. (a) | 47,400 | 3,206 | |
| Insulet Corp. (a) | 293,196 | 36,046 | |
| Intuitive Surgical, Inc. (a) | 488,394 | 253,726 | |
| Koninklijke Philips Electronics NV | 444,700 | 20,861 | |
| Koninklijke Philips Electronics NV (depositary receipt) (NY Reg.) | 129,900 | 6,078 | |
| Novocure Ltd. (a) | 222,838 | 18,545 | |
| Quanterix Corp. (a) | 143,678 | 4,451 | |
| Shockwave Medical, Inc. (a)(e) | 676,452 | 33,092 | |
| Silk Road Medical, Inc. (e) | 84,405 | 3,654 | |
| Tandem Diabetes Care, Inc. (a) | 423,591 | 26,868 | |
| ViewRay, Inc. (a)(e) | 534,354 | 4,788 | |
| Wright Medical Group NV (a) | 300,977 | 8,686 | |
| 895,742 | |||
| Health Care Providers & Services - 2.7% | |||
| Anthem, Inc. | 93,852 | 27,650 | |
| Guardant Health, Inc. (e) | 299,728 | 28,171 | |
| HCA Holdings, Inc. | 249,839 | 33,356 | |
| Humana, Inc. | 651,931 | 193,461 | |
| Notre Dame Intermedica Participacoes SA | 989,000 | 11,325 | |
| OptiNose, Inc. (a)(e) | 735,412 | 3,949 | |
| UnitedHealth Group, Inc. | 1,871,111 | 465,925 | |
| 763,837 | |||
| Health Care Technology - 0.0% | |||
| Health Catalyst, Inc. | 80,000 | 3,540 | |
| Livongo Health, Inc. (e) | 61,500 | 2,721 | |
| Phreesia, Inc. (e) | 260,300 | 7,114 | |
| 13,375 | |||
| Life Sciences Tools & Services - 0.4% | |||
| Adaptive Biotechnologies Corp. (e) | 106,600 | 4,109 | |
| Avantor, Inc. | 617,655 | 10,865 | |
| IQVIA Holdings, Inc. (a) | 90,686 | 14,434 | |
| Thermo Fisher Scientific, Inc. | 344,607 | 95,690 | |
| 125,098 | |||
| Pharmaceuticals - 1.1% | |||
| Akcea Therapeutics, Inc. (a) | 787,919 | 17,043 | |
| AstraZeneca PLC sponsored ADR | 1,685,893 | 73,185 | |
| Bristol-Myers Squibb Co. | 2,033,344 | 90,301 | |
| Chiasma, Inc. warrants 12/16/24 (a) | 55,391 | 99 | |
| Corteva, Inc. | 204,400 | 6,030 | |
| Hansoh Pharmaceutical Group Co. Ltd. (f) | 2,256,000 | 6,063 | |
| Horizon Pharma PLC (a) | 186,404 | 4,640 | |
| Merck & Co., Inc. | 427,600 | 35,487 | |
| Morphic Holding, Inc. | 186,000 | 4,200 | |
| MyoKardia, Inc. (a) | 97,201 | 5,291 | |
| Nektar Therapeutics (a) | 878,523 | 25,003 | |
| TherapeuticsMD, Inc. (a)(e) | 938,506 | 2,018 | |
| Theravance Biopharma, Inc. (a) | 55,608 | 1,159 | |
| Turning Point Therapeutics, Inc. | 548,485 | 21,852 | |
| Zogenix, Inc. (a) | 107,922 | 5,199 | |
| 297,570 | |||
| TOTAL HEALTH CARE | 3,306,707 | ||
| INDUSTRIALS - 5.1% | |||
| Aerospace & Defense - 1.3% | |||
| Elbit Systems Ltd. | 49,306 | 7,869 | |
| General Dynamics Corp. | 109,564 | 20,372 | |
| Lockheed Martin Corp. | 514,121 | 186,199 | |
| Northrop Grumman Corp. | 8,200 | 2,834 | |
| Space Exploration Technologies Corp.: | |||
| Class A (a)(c)(d) | 242,545 | 51,905 | |
| Class C (a)(c)(d) | 2,783 | 596 | |
| The Boeing Co. | 322,895 | 110,165 | |
| 379,940 | |||
| Air Freight & Logistics - 0.3% | |||
| United Parcel Service, Inc. Class B | 628,900 | 75,135 | |
| XPO Logistics, Inc. (a)(e) | 85,600 | 5,776 | |
| 80,911 | |||
| Airlines - 0.3% | |||
| Spirit Airlines, Inc. (a) | 1,777,691 | 75,427 | |
| Commercial Services & Supplies - 0.1% | |||
| HomeServe PLC | 1,491,468 | 20,695 | |
| Tomra Systems ASA | 575,200 | 17,002 | |
| 37,697 | |||
| Construction & Engineering - 0.1% | |||
| Dycom Industries, Inc. (a) | 235,111 | 12,969 | |
| Electrical Equipment - 0.1% | |||
| Fortive Corp. | 426,990 | 32,473 | |
| Industrial Conglomerates - 1.0% | |||
| General Electric Co. | 19,221,685 | 200,867 | |
| Honeywell International, Inc. | 401,527 | 69,247 | |
| 270,114 | |||
| Machinery - 0.6% | |||
| AGCO Corp. | 75,500 | 5,814 | |
| Deere & Co. | 945,904 | 156,689 | |
| Rational AG | 14,778 | 10,077 | |
| 172,580 | |||
| Professional Services - 0.0% | |||
| TriNet Group, Inc. (a) | 77,300 | 5,685 | |
| Road & Rail - 1.3% | |||
| Canadian Pacific Railway Ltd. | 23,830 | 5,690 | |
| Knight-Swift Transportation Holdings, Inc. Class A | 1,735,837 | 62,212 | |
| Lyft, Inc. (e) | 453,961 | 27,633 | |
| Lyft, Inc. | 1,266,687 | 73,248 | |
| Uber Technologies, Inc. | 5,209,654 | 197,581 | |
| Uber Technologies, Inc. (e) | 168,813 | 7,114 | |
| 373,478 | |||
| TOTAL INDUSTRIALS | 1,441,274 | ||
| INFORMATION TECHNOLOGY - 34.8% | |||
| Communications Equipment - 0.6% | |||
| Arista Networks, Inc. (a) | 414,157 | 113,251 | |
| Cisco Systems, Inc. | 944,900 | 52,347 | |
| 165,598 | |||
| Electronic Equipment & Components - 0.0% | |||
| Coherent, Inc. (a) | 81,500 | 11,316 | |
| IPG Photonics Corp. (a) | 21,200 | 2,777 | |
| 14,093 | |||
| Internet Software & Services - 0.1% | |||
| Farfetch Ltd. Class A (e) | 455,743 | 9,160 | |
| Qudian, Inc. ADR (a)(e) | 577,432 | 5,278 | |
| 14,438 | |||
| IT Services - 7.3% | |||
| Akamai Technologies, Inc. (a) | 858,257 | 75,638 | |
| Elastic NV (e) | 627,472 | 62,013 | |
| Endava PLC ADR (a) | 288,563 | 10,677 | |
| Fastly, Inc. Class A (e) | 57,132 | 1,240 | |
| Fiserv, Inc. (a) | 26,900 | 2,836 | |
| Fiverr International Ltd. (e) | 187,300 | 4,757 | |
| GMO Internet, Inc. | 158,000 | 2,588 | |
| GoDaddy, Inc. (a) | 345,471 | 25,351 | |
| Keywords Studios PLC | 111,361 | 2,252 | |
| MasterCard, Inc. Class A | 1,978,208 | 538,607 | |
| MongoDB, Inc. Class A (a) | 64,145 | 9,187 | |
| Okta, Inc. (a) | 647,165 | 84,669 | |
| PagSeguro Digital Ltd. (a) | 502,100 | 21,831 | |
| PayPal Holdings, Inc. (a) | 2,599,238 | 286,956 | |
| Shopify, Inc. Class A (a) | 280,641 | 89,183 | |
| Square, Inc. (a) | 291,684 | 23,454 | |
| Twilio, Inc. Class A (a) | 320,005 | 44,516 | |
| Visa, Inc. Class A | 4,098,163 | 729,473 | |
| Wix.com Ltd. (a) | 352,194 | 52,308 | |
| 2,067,536 | |||
| Semiconductors & Semiconductor Equipment - 9.0% | |||
| Advanced Micro Devices, Inc. (a) | 2,796,694 | 85,159 | |
| Analog Devices, Inc. | 74,600 | 8,763 | |
| Applied Materials, Inc. | 600,835 | 29,663 | |
| ASML Holding NV | 88,170 | 19,645 | |
| First Solar, Inc. (a) | 54,360 | 3,506 | |
| Inphi Corp. (a) | 642,228 | 38,669 | |
| Lam Research Corp. | 590,585 | 123,202 | |
| Marvell Technology Group Ltd. | 26,024,826 | 683,412 | |
| Microchip Technology, Inc. | 242,900 | 22,935 | |
| Micron Technology, Inc. (a) | 3,183,932 | 142,927 | |
| Monolithic Power Systems, Inc. | 290,095 | 42,980 | |
| NVIDIA Corp. | 3,160,203 | 533,189 | |
| NXP Semiconductors NV | 3,321,821 | 343,443 | |
| Qorvo, Inc. (a) | 115,300 | 8,450 | |
| Qualcomm, Inc. | 6,032,902 | 441,367 | |
| Skyworks Solutions, Inc. | 99,200 | 8,460 | |
| Universal Display Corp. | 136,795 | 28,875 | |
| 2,564,645 | |||
| Software - 11.9% | |||
| Adobe, Inc. (a) | 1,091,716 | 326,270 | |
| Altair Engineering, Inc. Class A (a) | 88,620 | 3,687 | |
| Anaplan, Inc. | 61,020 | 3,474 | |
| Atlassian Corp. PLC (a) | 113,827 | 15,949 | |
| Atom Tickets LLC (a)(b)(c)(d) | 1,204,239 | 2,312 | |
| Blue Prism Group PLC (a) | 1,050,008 | 18,170 | |
| Ceridian HCM Holding, Inc. (a) | 53,700 | 2,863 | |
| Coupa Software, Inc. (a) | 160,744 | 21,815 | |
| Crowdstrike Holdings, Inc. (e) | 226,700 | 20,192 | |
| DocuSign, Inc. (a) | 317,002 | 16,395 | |
| HubSpot, Inc. (a) | 137,139 | 24,509 | |
| Intuit, Inc. | 214,232 | 59,409 | |
| Lightspeed POS, Inc. (a) | 645,131 | 19,376 | |
| LivePerson, Inc. (a) | 491,600 | 16,316 | |
| Medallia, Inc. (e) | 43,300 | 1,726 | |
| Microsoft Corp. | 10,889,650 | 1,483,933 | |
| Nutanix, Inc. Class B (a)(f) | 482,746 | 10,958 | |
| Pagerduty, Inc. (e) | 42,898 | 1,896 | |
| Paycom Software, Inc. (a) | 342,467 | 82,449 | |
| RingCentral, Inc. (a) | 454,567 | 64,539 | |
| Salesforce.com, Inc. (a) | 4,975,420 | 768,702 | |
| ServiceNow, Inc. (a) | 354,199 | 98,251 | |
| Slack Technologies, Inc. Class A (a)(e) | 454,196 | 15,179 | |
| Smartsheet, Inc. (a) | 244,595 | 12,208 | |
| Splunk, Inc. (a) | 159,640 | 21,601 | |
| StoneCo Ltd. Class A (a)(e) | 169,600 | 5,938 | |
| Synopsys, Inc. (a) | 23,331 | 3,097 | |
| Tanium, Inc. Class B (a)(c)(d) | 554,900 | 5,921 | |
| The Trade Desk, Inc. (a) | 330,083 | 86,914 | |
| Tufin Software Technologies Ltd. (e) | 215,273 | 4,699 | |
| Workday, Inc. Class A (a) | 633,047 | 126,597 | |
| Zendesk, Inc. (a) | 286,163 | 23,912 | |
| Zoom Video Communications, Inc. Class A (e) | 87,541 | 8,361 | |
| 3,377,618 | |||
| Technology Hardware, Storage & Peripherals - 5.9% | |||
| Apple, Inc. | 7,647,087 | 1,629,135 | |
| Western Digital Corp. | 654,279 | 35,259 | |
| 1,664,394 | |||
| TOTAL INFORMATION TECHNOLOGY | 9,868,322 | ||
| MATERIALS - 0.9% | |||
| Chemicals - 0.9% | |||
| CF Industries Holdings, Inc. | 1,995,043 | 98,874 | |
| Nutrien Ltd. | 1,869,864 | 102,518 | |
| The Chemours Co. LLC | 594,000 | 11,328 | |
| The Mosaic Co. | 2,269,100 | 57,159 | |
| 269,879 | |||
| REAL ESTATE - 0.2% | |||
| Equity Real Estate Investment Trusts (REITs) - 0.2% | |||
| Ant International Co. Ltd. Class C (a)(c)(d) | 4,367,660 | 34,548 | |
| Crown Castle International Corp. | 123,767 | 16,493 | |
| 51,041 | |||
| Real Estate Management & Development - 0.0% | |||
| Parsvnath Developers Ltd. (a) | 13,552,437 | 649 | |
| TOTAL REAL ESTATE | 51,690 | ||
| UTILITIES - 0.0% | |||
| Electric Utilities - 0.0% | |||
| ORSTED A/S (f) | 35,000 | 3,197 | |
| TOTAL COMMON STOCKS | |||
| (Cost $15,040,912) | 27,148,214 | ||
| Preferred Stocks - 4.2% | |||
| Convertible Preferred Stocks - 4.2% | |||
| CONSUMER DISCRETIONARY - 0.4% | |||
| Hotels, Restaurants & Leisure - 0.2% | |||
| MOD Super Fast Pizza Holdings LLC: | |||
| Series 3 (a)(b)(c)(d) | 68,723 | 9,794 | |
| Series 4 (a)(b)(c)(d) | 6,272 | 894 | |
| Series 5 (a)(b)(c)(d) | 25,187 | 3,590 | |
| Neutron Holdings, Inc.: | |||
| Series C (a)(c)(d) | 50,654,200 | 12,284 | |
| Series D (c)(d) | 85,315,542 | 20,689 | |
| Topgolf International, Inc. Series F (a)(c)(d) | 415,730 | 6,365 | |
| 53,616 | |||
| Internet & Direct Marketing Retail - 0.1% | |||
| Reddit, Inc. Series B (a)(c)(d) | 524,232 | 11,369 | |
| The Honest Co., Inc.: | |||
| Series C (a)(c)(d) | 350,333 | 13,540 | |
| Series D (a)(c)(d) | 77,448 | 3,544 | |
| Series E (a)(c)(d) | 551,397 | 10,807 | |
| 39,260 | |||
| Leisure Products - 0.1% | |||
| Peloton Interactive, Inc. Series E (a)(c)(d) | 1,341,716 | 28,552 | |
| Textiles, Apparel & Luxury Goods - 0.0% | |||
| Allbirds, Inc.: | |||
| Series A (c)(d) | 14,293 | 716 | |
| Series B (c)(d) | 2,512 | 126 | |
| Series C (c)(d) | 23,999 | 1,202 | |
| 2,044 | |||
| TOTAL CONSUMER DISCRETIONARY | 123,472 | ||
| CONSUMER STAPLES - 2.9% | |||
| Food & Staples Retailing - 0.2% | |||
| Roofoods Ltd. Series F (a)(c)(d) | 41,941 | 17,527 | |
| Sweetgreen, Inc. Series H (c)(d) | 3,242,523 | 48,800 | |
| 66,327 | |||
| Food Products - 0.0% | |||
| Agbiome LLC Series C (a)(c)(d) | 1,091,300 | 6,209 | |
| Tobacco - 2.7% | |||
| JUUL Labs, Inc.: | |||
| Series C (a)(c)(d) | 2,613,078 | 744,727 | |
| Series D (a)(c)(d) | 13,822 | 3,939 | |
| Series E (a)(c)(d) | 14,959 | 4,263 | |
| 752,929 | |||
| TOTAL CONSUMER STAPLES | 825,465 | ||
| FINANCIALS - 0.1% | |||
| Consumer Finance - 0.1% | |||
| Oportun Finance Corp. Series H (a)(c)(d) | 3,552,125 | 12,006 | |
| HEALTH CARE - 0.2% | |||
| Biotechnology - 0.1% | |||
| 23andMe, Inc. Series F (a)(c)(d) | 800,982 | 10,557 | |
| Generation Bio Series B (a)(c)(d) | 460,500 | 4,186 | |
| Immunocore Ltd. Series A (a)(c)(d) | 11,275 | 1,335 | |
| Nuvation Bio, Inc. Series A (c)(d)(g) | 8,221,300 | 6,342 | |
| 22,420 | |||
| Health Care Providers & Services - 0.1% | |||
| Mulberry Health, Inc. Series A8 (a)(c)(d) | 2,728,716 | 20,138 | |
| Pharmaceuticals - 0.0% | |||
| Castle Creek Pharmaceutical Holdings, Inc. Series B (c)(d) | 3,301 | 1,389 | |
| TOTAL HEALTH CARE | 43,947 | ||
| INDUSTRIALS - 0.1% | |||
| Aerospace & Defense - 0.1% | |||
| Space Exploration Technologies Corp.: | |||
| Series G (a)(c)(d) | 97,277 | 20,817 | |
| Series H (a)(c)(d) | 25,767 | 5,514 | |
| 26,331 | |||
| Professional Services - 0.0% | |||
| YourPeople, Inc. Series C (a)(c)(d) | 692,196 | 2,644 | |
| TOTAL INDUSTRIALS | 28,975 | ||
| INFORMATION TECHNOLOGY - 0.5% | |||
| Internet Software & Services - 0.1% | |||
| ContextLogic, Inc. Series G (a)(c)(d) | 133,922 | 22,709 | |
| Starry, Inc.: | |||
| Series C (a)(c)(d) | 5,833,836 | 8,342 | |
| Series D (c)(d) | 4,312,627 | 6,167 | |
| 37,218 | |||
| IT Services - 0.0% | |||
| AppNexus, Inc. Series E (Escrow) (a)(c)(d) | 646,522 | 624 | |
| Software - 0.4% | |||
| Bird Rides, Inc. Series C (c)(d) | 2,114,013 | 24,830 | |
| Cloudflare, Inc. Series D, 8.00% (a)(c)(d) | 1,160,525 | 22,967 | |
| Compass, Inc. Series E (a)(c)(d) | 53,263 | 8,416 | |
| Dataminr, Inc. Series D (a)(c)(d) | 277,250 | 5,606 | |
| Delphix Corp. Series D (a)(c)(d) | 675,445 | 6,106 | |
| Jet.Com, Inc. Series B1 (Escrow) (a)(c)(d) | 2,928,086 | 133 | |
| Malwarebytes Corp. Series B (a)(c)(d) | 1,056,193 | 21,177 | |
| Taboola.Com Ltd. Series E (a)(c)(d) | 634,902 | 15,733 | |
| UiPath, Inc.: | |||
| Series A1 (c)(d) | 128,283 | 5,048 | |
| Series B1 (c)(d) | 6,390 | 251 | |
| Series B2 (c)(d) | 31,827 | 1,252 | |
| 111,519 | |||
| TOTAL INFORMATION TECHNOLOGY | 149,361 | ||
| REAL ESTATE - 0.0% | |||
| Real Estate Management & Development - 0.0% | |||
| Sonder Canada, Inc. Series D (c)(d) | 606,719 | 6,368 | |
| TOTAL CONVERTIBLE PREFERRED STOCKS | 1,189,594 | ||
| Nonconvertible Preferred Stocks - 0.0% | |||
| CONSUMER DISCRETIONARY - 0.0% | |||
| Textiles, Apparel & Luxury Goods - 0.0% | |||
| Allbirds, Inc. (c)(d) | 7,680 | 385 | |
| HEALTH CARE - 0.0% | |||
| Pharmaceuticals - 0.0% | |||
| Castle Creek Pharmaceutical Holdings, Inc. Series A4 (c)(d) | 29,758 | 12,519 | |
| TOTAL NONCONVERTIBLE PREFERRED STOCKS | 12,904 | ||
| TOTAL PREFERRED STOCKS | |||
| (Cost $348,767) | 1,202,498 | ||
| Money Market Funds - 2.6% | |||
| Fidelity Cash Central Fund 2.43% (h) | 14,139,360 | 14,142 | |
| Fidelity Securities Lending Cash Central Fund 2.43% (h)(i) | 721,255,997 | 721,328 | |
| TOTAL MONEY MARKET FUNDS | |||
| (Cost $735,470) | 735,470 | ||
| TOTAL INVESTMENT IN SECURITIES - 102.6% | |||
| (Cost $16,125,149) | 29,086,182 | ||
| NET OTHER ASSETS (LIABILITIES) - (2.6)% | (747,289) | ||
| NET ASSETS - 100% | $28,338,893 |
Legend
(a) Non-income producing
(b) Investment is owned by a wholly-owned subsidiary (Subsidiary) that is treated as a corporation for U.S. tax purposes.
(c) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $1,367,790,000 or 4.8% of net assets.
(d) Level 3 security
(e) Security or a portion of the security is on loan at period end.
(f) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $24,176,000 or 0.1% of net assets.
(g) Security or a portion of the security purchased on a delayed delivery or when-issued basis.
(h) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(i) Investment made with cash collateral received from securities on loan.
Additional information on each restricted holding is as follows:
| Security | Acquisition Date | Acquisition Cost (000s) |
| 23andMe, Inc. Series F | 8/31/17 | $11,121 |
| Agbiome LLC Series C | 6/29/18 | $6,912 |
| Allbirds, Inc. | 10/9/18 | $1,986 |
| Allbirds, Inc. | 10/9/18 | $421 |
| Allbirds, Inc. Series A | 10/9/18 | $784 |
| Allbirds, Inc. Series B | 10/9/18 | $138 |
| Allbirds, Inc. Series C | 10/9/18 | $1,316 |
| Ant International Co. Ltd. Class C | 5/16/18 | $24,503 |
| AppNexus, Inc. Series E (Escrow) | 8/1/14 | $12,951 |
| Atom Tickets LLC | 8/15/17 | $7,000 |
| Bird Rides, Inc. Series C | 12/21/18 | $24,830 |
| Castle Creek Pharmaceutical Holdings, Inc. Series A4 | 9/29/16 | $9,831 |
| Castle Creek Pharmaceutical Holdings, Inc. Series B | 10/9/18 | $1,360 |
| Cibus Corp. Series C | 2/16/18 | $6,396 |
| Cibus Corp. Series D | 5/10/19 | $2,146 |
| Cloudflare, Inc. Series D, 8.00% | 11/5/14 - 9/10/18 | $9,459 |
| Compass, Inc. Series E | 11/3/17 | $3,594 |
| ContextLogic, Inc. Series G | 10/24/17 | $18,017 |
| Dataminr, Inc. Series D | 3/6/15 | $3,535 |
| Delphix Corp. Series D | 7/10/15 | $6,079 |
| Generation Bio Series B | 2/21/18 | $4,212 |
| Immunocore Ltd. Series A | 7/27/15 | $2,122 |
| Jet.Com, Inc. Series B1 (Escrow) | 3/19/18 | $-- |
| JUUL Labs, Inc. | 11/21/17 | $-- |
| JUUL Labs, Inc. Class A | 12/20/17 - 7/6/18 | $453 |
| JUUL Labs, Inc. Series C | 5/22/15 - 7/6/18 | $-- |
| JUUL Labs, Inc. Series D | 6/25/18 - 7/6/18 | $-- |
| JUUL Labs, Inc. Series E | 12/20/17 - 7/6/18 | $321 |
| Malwarebytes Corp. Series B | 12/21/15 | $10,958 |
| MOD Super Fast Pizza Holdings LLC Series 3 | 11/3/16 | $9,415 |
| MOD Super Fast Pizza Holdings LLC Series 4 | 12/14/17 | $878 |
| MOD Super Fast Pizza Holdings LLC Series 5 | 5/15/19 | $3,590 |
| Mulberry Health, Inc. Series A8 | 1/20/16 | $18,432 |
| Neutron Holdings, Inc. Series C | 7/3/18 | $9,262 |
| Neutron Holdings, Inc. Series D | 1/25/19 | $20,689 |
| Nuvation Bio, Inc. Series A | 6/17/19 | $6,342 |
| Oportun Finance Corp. Series H | 2/6/15 | $10,114 |
| Peloton Interactive, Inc. Series E | 3/31/17 | $7,266 |
| Reddit, Inc. Series B | 7/26/17 | $7,442 |
| Roofoods Ltd. Series F | 9/12/17 | $14,829 |
| Sonder Canada, Inc. Series D | 5/21/19 | $6,368 |
| Space Exploration Technologies Corp. Class A | 10/16/15 - 9/11/17 | $23,515 |
| Space Exploration Technologies Corp. Class C | 9/11/17 | $376 |
| Space Exploration Technologies Corp. Series G | 1/20/15 | $7,535 |
| Space Exploration Technologies Corp. Series H | 8/4/17 | $3,479 |
| Starry, Inc. Series C | 12/8/17 | $5,379 |
| Starry, Inc. Series D | 3/6/19 | $6,167 |
| Sweetgreen, Inc. Series H | 11/9/18 | $42,282 |
| Taboola.Com Ltd. Series E | 12/22/14 | $6,619 |
| Tanium, Inc. Class B | 4/21/17 | $2,755 |
| The Honest Co., Inc. | 8/21/14 | $4,062 |
| The Honest Co., Inc. Series C | 8/21/14 | $9,479 |
| The Honest Co., Inc. Series D | 8/3/15 | $3,544 |
| The Honest Co., Inc. Series E | 9/28/17 | $10,810 |
| Topgolf International, Inc. Series F | 11/10/17 | $5,751 |
| Tory Burch LLC | 5/14/15 | $20,890 |
| UiPath, Inc. Series A1 | 6/14/19 | $5,048 |
| UiPath, Inc. Series B1 | 6/14/19 | $251 |
| UiPath, Inc. Series B2 | 6/14/19 | $1,252 |
| WME Entertainment Parent, LLC Class A | 4/13/16 - 8/16/16 | $19,025 |
| YourPeople, Inc. Series C | 5/1/15 | $10,314 |
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
| Fund | Income earned |
| (Amounts in thousands) | |
| Fidelity Cash Central Fund | $541 |
| Fidelity Securities Lending Cash Central Fund | 5,997 |
| Total | $6,538 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable. Amount for Fidelity Securities Lending Cash Central Fund 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.
Investment Valuation
The following is a summary of the inputs used, as of July 31, 2019, 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 below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| Valuation Inputs at Reporting Date: | ||||
| Description | Total | Level 1 | Level 2 | Level 3 |
| (Amounts in thousands) | ||||
| Investments in Securities: | ||||
| Equities: | ||||
| Communication Services | $4,686,654 | $4,497,369 | $157,306 | $31,979 |
| Consumer Discretionary | 6,461,053 | 6,248,095 | 66,224 | 146,734 |
| Consumer Staples | 1,583,501 | 746,837 | 3,284 | 833,380 |
| Energy | 158,731 | 73,672 | 85,059 | -- |
| Financials | 278,534 | 218,934 | 47,594 | 12,006 |
| Health Care | 3,363,173 | 3,264,151 | 35,317 | 63,705 |
| Industrials | 1,470,249 | 1,117,944 | 270,829 | 81,476 |
| Information Technology | 10,017,683 | 9,860,089 | -- | 157,594 |
| Materials | 269,879 | 269,879 | -- | -- |
| Real Estate | 58,058 | 16,493 | 649 | 40,916 |
| Utilities | 3,197 | 3,197 | -- | -- |
| Money Market Funds | 735,470 | 735,470 | -- | -- |
| Total Investments in Securities: | $29,086,182 | $27,052,130 | $666,262 | $1,367,790 |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value:
| (Amounts in thousands) | |
| Investments in Securities: | |
| Equities - Consumer Staples | |
| Beginning Balance | $476,524 |
| Net Realized Gain (Loss) on Investment Securities | 380,118 |
| Net Unrealized Gain (Loss) on Investment Securities | 340,403 |
| Cost of Purchases | 42,736 |
| Proceeds of Sales | (406,401) |
| Amortization/Accretion | -- |
| Transfers into Level 3 | -- |
| Transfers out of Level 3 | -- |
| Ending Balance | $833,380 |
| The change in unrealized gain (loss) for the period attributable to Level 3 securities held at July 31, 2019 | $342,234 |
| Equities - Information Technology | |
| Beginning Balance | $388,432 |
| Net Realized Gain (Loss) on Investment Securities | (7,293) |
| Net Unrealized Gain (Loss) on Investment Securities | (115,107) |
| Cost of Purchases | 51,193 |
| Proceeds of Sales | (159,631) |
| Amortization/Accretion | -- |
| Transfers into Level 3 | -- |
| Transfers out of Level 3 | -- |
| Ending Balance | $157,594 |
| The change in unrealized gain (loss) for the period attributable to Level 3 securities held at July 31, 2019 | $8,787 |
| Other Investments in Securities | |
| Beginning Balance | $295,337 |
| Net Realized Gain (Loss) on Investment Securities | 54 |
| Net Unrealized Gain (Loss) on Investment Securities | 51,851 |
| Cost of Purchases | 57,310 |
| Proceeds of Sales | (27,736) |
| Ending Balance | $376,816 |
| The change in unrealized gain (loss) for the period attributable to Level 3 securities held at July 31, 2019 | $59,218 |
The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations.
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
| United States of America | 88.8% |
| Cayman Islands | 3.1% |
| Bermuda | 2.4% |
| Netherlands | 1.6% |
| Canada | 1.1% |
| Others (Individually Less Than 1%) | 3.0% |
| 100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
| Amounts in thousands (except per-share amounts) | July 31, 2019 | |
| Assets | ||
| Investment in securities, at value (including securities loaned of $702,095) — See accompanying schedule: Unaffiliated issuers (cost $15,389,679) | $28,350,712 | |
| Fidelity Central Funds (cost $735,470) | 735,470 | |
| Total Investment in Securities (cost $16,125,149) | $29,086,182 | |
| Restricted cash | 280 | |
| Foreign currency held at value (cost $5) | 5 | |
| Receivable for investments sold | 133,040 | |
| Receivable for fund shares sold | 18,178 | |
| Dividends receivable | 6,853 | |
| Distributions receivable from Fidelity Central Funds | 664 | |
| Prepaid expenses | 68 | |
| Other receivables | 1,316 | |
| Total assets | 29,246,586 | |
| Liabilities | ||
| Payable to custodian bank | $1,904 | |
| Payable for investments purchased | ||
| Regular delivery | 134,150 | |
| Delayed delivery | 3,171 | |
| Payable for fund shares redeemed | 26,418 | |
| Accrued management fee | 16,552 | |
| Other affiliated payables | 2,999 | |
| Other payables and accrued expenses | 1,202 | |
| Collateral on securities loaned | 721,297 | |
| Total liabilities | 907,693 | |
| Net Assets | $28,338,893 | |
| Net Assets consist of: | ||
| Paid in capital | $14,505,077 | |
| Total distributable earnings (loss) | 13,833,816 | |
| Net Assets | $28,338,893 | |
| Net Asset Value and Maximum Offering Price | ||
| Blue Chip Growth: | ||
| Net Asset Value, offering price and redemption price per share ($23,022,835 ÷ 223,406 shares) | $103.05 | |
| Class K: | ||
| Net Asset Value, offering price and redemption price per share ($5,316,058 ÷ 51,493 shares) | $103.24 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| Amounts in thousands | Year ended July 31, 2019 | |
| Investment Income | ||
| Dividends | $193,039 | |
| Income from Fidelity Central Funds (including $5,997 from security lending) | 6,538 | |
| Total income | 199,577 | |
| Expenses | ||
| Management fee | ||
| Basic fee | $141,881 | |
| Performance adjustment | 28,241 | |
| Transfer agent fees | 32,446 | |
| Accounting and security lending fees | 2,026 | |
| Custodian fees and expenses | 376 | |
| Independent trustees' fees and expenses | 144 | |
| Registration fees | 488 | |
| Audit | 166 | |
| Legal | 73 | |
| Interest | 122 | |
| Miscellaneous | 173 | |
| Total expenses before reductions | 206,136 | |
| Expense reductions | (720) | |
| Total expenses after reductions | 205,416 | |
| Net investment income (loss) | (5,839) | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | 1,736,717 | |
| Fidelity Central Funds | (11) | |
| Foreign currency transactions | (356) | |
| Total net realized gain (loss) | 1,736,350 | |
| Change in net unrealized appreciation (depreciation) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | 509,544 | |
| Assets and liabilities in foreign currencies | (113) | |
| Total change in net unrealized appreciation (depreciation) | 509,431 | |
| Net gain (loss) | 2,245,781 | |
| Net increase (decrease) in net assets resulting from operations | $2,239,942 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Amounts in thousands | Year ended July 31, 2019 | Year ended July 31, 2018 |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $(5,839) | $34,241 |
| Net realized gain (loss) | 1,736,350 | 2,451,922 |
| Change in net unrealized appreciation (depreciation) | 509,431 | 2,830,656 |
| Net increase (decrease) in net assets resulting from operations | 2,239,942 | 5,316,819 |
| Distributions to shareholders | (1,427,021) | – |
| Distributions to shareholders from net investment income | – | (24,826) |
| Distributions to shareholders from net realized gain | – | (955,924) |
| Total distributions | (1,427,021) | (980,750) |
| Share transactions - net increase (decrease) | 1,142,357 | (610,765) |
| Total increase (decrease) in net assets | 1,955,278 | 3,725,304 |
| Net Assets | ||
| Beginning of period | 26,383,615 | 22,658,311 |
| End of period | $28,338,893 | $26,383,615 |
| Other Information | ||
| Undistributed net investment income end of period | $19,407 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Blue Chip Growth Fund
| Years ended July 31, | 2019 | 2018 | 2017 | 2016 | 2015 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $99.75 | $83.20 | $69.52 | $75.25 | $66.72 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | (.04) | .11B | .11 | .09 | .05 |
| Net realized and unrealized gain (loss) | 8.65 | 20.20 | 16.30 | (2.16) | 12.56 |
| Total from investment operations | 8.61 | 20.31 | 16.41 | (2.07) | 12.61 |
| Distributions from net investment income | (.11) | (.08) | (.15) | (.03) | (.09) |
| Distributions from net realized gain | (5.20) | (3.68) | (2.58) | (3.63) | (3.99) |
| Total distributions | (5.31) | (3.76) | (2.73) | (3.66) | (4.08) |
| Net asset value, end of period | $103.05 | $99.75 | $83.20 | $69.52 | $75.25 |
| Total ReturnC | 9.09% | 25.21% | 24.48% | (2.59)% | 19.72% |
| Ratios to Average Net AssetsD,E | |||||
| Expenses before reductions | .80% | .72% | .70% | .82% | .89% |
| Expenses net of fee waivers, if any | .80% | .72% | .70% | .82% | .89% |
| Expenses net of all reductions | .80% | .72% | .69% | .82% | .88% |
| Net investment income (loss) | (.04)% | .12%B | .15% | .13% | .07% |
| Supplemental Data | |||||
| Net assets, end of period (in millions) | $23,023 | $20,714 | $16,993 | $14,230 | $15,346 |
| Portfolio turnover rateF | 45%G | 41%G | 43%G | 50%G | 51%G |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $.09 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .02%.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D 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.
E 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.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Fidelity Blue Chip Growth Fund Class K
| Years ended July 31, | 2019 | 2018 | 2017 | 2016 | 2015 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $99.92 | $83.34 | $69.67 | $75.36 | $66.82 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .05 | .20B | .19 | .16 | .13 |
| Net realized and unrealized gain (loss) | 8.66 | 20.22 | 16.32 | (2.15) | 12.57 |
| Total from investment operations | 8.71 | 20.42 | 16.51 | (1.99) | 12.70 |
| Distributions from net investment income | (.19) | (.16) | (.27) | (.07) | (.17) |
| Distributions from net realized gain | (5.20) | (3.68) | (2.58) | (3.63) | (3.99) |
| Total distributions | (5.39) | (3.84) | (2.84)C | (3.70) | (4.16) |
| Net asset value, end of period | $103.24 | $99.92 | $83.34 | $69.67 | $75.36 |
| Total ReturnD | 9.20% | 25.33% | 24.63% | (2.47)% | 19.84% |
| Ratios to Average Net AssetsE,F | |||||
| Expenses before reductions | .70% | .62% | .59% | .70% | .78% |
| Expenses net of fee waivers, if any | .70% | .62% | .59% | .70% | .77% |
| Expenses net of all reductions | .70% | .62% | .58% | .70% | .77% |
| Net investment income (loss) | .05% | .22%B | .26% | .25% | .19% |
| Supplemental Data | |||||
| Net assets, end of period (in millions) | $5,316 | $5,669 | $5,665 | $5,158 | $5,898 |
| Portfolio turnover rateG | 45%H | 41%H | 43%H | 50%H | 51%H |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $.09 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .12%.
C Total distributions of $2.84 per share is comprised of distributions from net investment income of $.267 and distributions from net realized gain of $2.576 per share.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
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 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.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended July 31, 2019
(Amounts in thousands except percentages)
1. Organization.
Fidelity Blue Chip Growth Fund (the Fund) is a fund of Fidelity Securities Fund (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Blue Chip Growth and Class K shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date ranged from less than .005% to .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investments Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy. Equity securities, including restricted securities, for which observable inputs are not available are valued using alternate valuation approaches, including the market approach and the income approach and are categorized as Level 3 in the hierarchy. The market approach generally consists of using comparable market transactions while the income approach generally consists of using the net present value of estimated future cash flows, adjusted as appropriate for liquidity, credit, market and/or other risk factors.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
The following provides information on Level 3 securities held by the Fund that were valued at period end based on unobservable inputs. These amounts exclude valuations provided by a broker.
| Asset Type | Fair Value | Valuation Technique(s) | Unobservable Input | Amount or Range/Weighted Average | Impact to Valuation from an Increase in Input(a) |
| Equities | $1,367,790 | Market comparable | Enterprise value/Sales multiple (EV/S) | 1.0 - 15.9 / 5.5 | Increase |
| Transaction price | $0.77 - $411.85 / $230.83 | Increase | |||
| Discount rate | 6.0% - 75.0% / 20.5% | Decrease | |||
| Premium rate | 6.9% - 75.7% / 54.1% | Increase | |||
| Conversion ratio | 3.0 | Increase | |||
| Proxy discount | 0.6% - 26.8% / 6.9% | Decrease | |||
| Discount for lack of marketability | 10.0% - 25.0% / 13.8% | Decrease | |||
| Price/Earnings multiple (P/E) | 8.4 | Increase | |||
| Liquidity preference | $14.90 - $45.76 / $30.68 | Increase | |||
| Proxy premium | 0.2% | Increase | |||
| Recovery value | Recovery value | 0.0% - 1.0% / 0.8% | Increase | ||
| Market approach | Transaction price | $0.24 - $417.90 / $233.80 | Increase | ||
| Conversion ratio | 1.0 | Increase |
(a) Represents the directional change in the fair value of the Level 3 investments that could have resulted from an increase in the corresponding input as of period end. A decrease to the unobservable input would have had the opposite effect. Significant changes in these inputs may have resulted in a significantly higher or lower fair value measurement at period end.
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 July 31, 2019, as well as a roll forward of Level 3 investments, is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan) for the Fund, certain independent Trustees have elected to defer receipt of a portion of their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees of $932 are included in the accompanying Statement of Assets and Liabilities in other receivables and other payables and accrued expenses, respectively.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. As of July 31, 2019, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), redemptions in kind, partnerships, deferred trustees compensation and losses deferred due to wash sales and excise tax regulations.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
| Gross unrealized appreciation | $13,295,368 |
| Gross unrealized depreciation | (430,199) |
| Net unrealized appreciation (depreciation) | $12,865,169 |
| Tax Cost | $16,221,013 |
The tax-based components of distributable earnings as of period end were as follows:
| Undistributed long-term capital gain | $980,255 |
| Net unrealized appreciation (depreciation) on securities and other investments | $12,865,108 |
The Fund intends to elect to defer to its next fiscal year $10,615 of ordinary losses recognized during the period January 1, 2019 to August 31, 2019.
The tax character of distributions paid was as follows:
| July 31, 2019 | July 31, 2018 | |
| Ordinary Income | $33,263 | $ 24,826 |
| Long-term Capital Gains | 1,393,758 | 955,924 |
| Total | $1,427,021 | $ 980,750 |
Delayed Delivery Transactions and When-Issued Securities. During the period, the Fund transacted in securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. The securities purchased on a delayed delivery or when-issued basis are identified as such in the Fund's Schedule of Investments. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
Consolidated Subsidiary. The Fund invests in certain investments through a wholly-owned subsidiary ("Subsidiary"), which may be subject to federal and state taxes upon disposition.
As of period end, the Fund held an investment of $74,947 in these Subsidiaries, representing .26% of the Fund's net assets. The financial statements have been consolidated and include accounts of the Fund and each Subsidiary. Accordingly, all inter-company transactions and balances have been eliminated.
Any cash held by the Subsidiaries is restricted as to its use and is presented as Restricted cash in the Statement of Assets and Liabilities.
New Rule Issuance. During August 2018, the U.S. Securities and Exchange Commission issued Final Rule Release No. 33-10532, Disclosure Update and Simplification. This Final Rule includes amendments specific to registered investment companies that are intended to eliminate overlap in disclosure requirements between Regulation S-X and GAAP. In accordance with these amendments, certain line-items in the Fund's financial statements have been combined or removed for the current period as outlined in the table below.
| Financial Statement | Current Line-Item Presentation (As Applicable) | Prior Line-Item Presentation (As Applicable) |
| Statement of Assets and Liabilities | Total distributable earnings (loss) | Undistributed/Distributions in excess of/Accumulated net investment income (loss) Accumulated/Undistributed net realized gain (loss) Net unrealized appreciation (depreciation) |
| Statement of Changes in Net Assets | N/A - removed | Undistributed/Distributions in excess of/Accumulated net investment income (loss) end of period |
| Statement of Changes in Net Assets | Distributions to shareholders | Distributions to shareholders from net investment income Distributions to shareholders from net realized gain |
| Distributions to Shareholders Note to Financial Statements | Distributions to shareholders | Distributions to shareholders from net investment income Distributions to shareholders from net realized gain |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and in-kind transactions, aggregated $12,738,745 and $12,032,887, respectively.
Unaffiliated Redemptions In-Kind. During the period, 5,962 shares of the Fund were redeemed in-kind for investments and cash with a value of $553,702. The net realized gain of $337,523 on investments delivered through in-kind redemptions is included in the accompanying Statement of Operations. The amount of the in-kind redemptions is included in share transactions in the accompanying Statement of Changes in Net Assets as well as the Notes to Financial Statements. The Fund recognized no gain or loss for federal income tax purposes.
Prior Fiscal Year Unaffiliated Redemptions In-Kind. During the prior period, 15,023 shares of the Fund were redeemed in-kind for investments and cash with a value of $1,335,342. The Fund had a net realized gain of $811,963 on investments delivered through in-kind redemptions. The amount of the in-kind redemptions is included in share transactions in the accompanying Statement of Changes in Net Assets as well as the Notes to Financial Statements. The Fund recognized no gain or loss for federal income tax purposes.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .24% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of +/- .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of Blue Chip Growth as compared to its benchmark index, the Russell 1000 Growth Index, over the same 36 month performance period. For the reporting period, the total annual management fee rate, including the performance adjustment, was .64% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of Blue Chip Growth, except for Class K. FIIOC receives an asset-based fee of Class K's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
| Amount | % of Class-Level Average Net Assets | |
| Blue Chip Growth | $29,979 | .14 |
| Class K | 2,467 | .05 |
| $ 32,446 |
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Prior to April 1, 2019, FSC had a separate agreement with the Fund for administration of the security lending program, based on the number and duration of lending transactions. For the period, the total fees paid for accounting and administration of securities lending were equivalent to an annual rate of .01%.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $292 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with Fidelity Management & Research Company (FMR) or other affiliated entities of FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
| Borrower or Lender | Average Loan Balance | Weighted Average Interest Rate | Interest Expense |
| Borrower | $20,124 | 2.53% | $117 |
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
Other. During the period, the investment adviser reimbursed the Fund for certain losses in the amount of $205.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $70 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. For equity securities, lending agents are used, including National Financial Services (NFS), an affiliate of the Fund. Pursuant to a securities lending agreement, NFS will receive a fee, which is capped at 9.9% of daily lending revenue, for its services as lending agent. The Fund may lend securities to certain qualified borrowers, including NFS. 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. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. The value of securities loaned to NFS, as affiliated borrower, at period end was $1,710. 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 $231 from securities loaned to NFS, as affiliated borrower.
8. Bank Borrowings.
The Fund is permitted to have bank borrowings for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity requirements. The Fund has established borrowing arrangements with certain banks. The interest rate on the borrowings is the bank's base rate, as revised from time to time. The average loan balance during the period for which loans were outstanding amounted to $9,069. The weighted average interest rate was 2.90%. The interest expense amounted to $5 under the bank borrowing program. At period end, there were no bank borrowings outstanding.
9. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $500 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses. During the period, custodian credits reduced the Fund's expenses by $30. During the period, transfer agent credits reduced each class' expenses as noted in the table below.
| Expense reduction | |
| Blue Chip Growth | $3 |
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $187.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Year ended July 31, 2019 | Year ended July 31, 2018 | |
| Distributions to shareholders | ||
| Blue Chip Growth | $1,117,762 | $– |
| Class K | 309,259 | – |
| Total | $1,427,021 | $– |
| From net investment income | ||
| Blue Chip Growth | $– | $14,640 |
| Class K | – | 10,186 |
| Total | $– | $24,826 |
| From net realized gain | ||
| Blue Chip Growth | $– | $722,426 |
| Class K | – | 233,498 |
| Total | $– | $955,924 |
11. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
| Shares | Shares | Dollars | Dollars | |
| Year ended July 31, 2019 | Year ended July 31, 2018 | Year ended July 31, 2019 | Year ended July 31, 2018 | |
| Blue Chip Growth | ||||
| Shares sold | 46,648 | 40,439 | $4,497,772 | $3,709,387 |
| Reinvestment of distributions | 11,015 | 8,154 | 1,055,435 | 698,554 |
| Shares redeemed | (41,910)(a) | (45,177) | (3,958,336)(a) | (4,036,931) |
| Net increase (decrease) | 15,753 | 3,416 | $1,594,871 | $371,010 |
| Class K | ||||
| Shares sold | 12,360 | 14,932 | $1,191,601 | $1,373,508 |
| Reinvestment of distributions | 3,225 | 2,843 | 309,259 | 243,684 |
| Shares redeemed | (20,830)(a) | (29,012)(b) | (1,953,374)(a) | (2,598,967)(b) |
| Net increase (decrease) | (5,245) | (11,237) | $(452,514) | $(981,775) |
(a) Amount includes in-kind redemptions (see the Unaffiliated Redemptions In-Kind note for additional details).
(b) Amount includes in-kind redemptions (see the Prior Fiscal Year Unaffiliated Redemptions In-Kind note for additional details).
12. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Securities Fund and Shareholders of Fidelity Blue Chip Growth Fund:
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statement of assets and liabilities of Fidelity Blue Chip Growth Fund (the "Fund"), a fund of Fidelity Securities Fund, including the schedule of investments, as of July 31, 2019, the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of July 31, 2019, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund's financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of July 31, 2019, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/ Deloitte & Touche LLP
Boston, Massachusetts
September 13, 2019
We have served as the auditor of one or more of the Fidelity investment companies since 1999.
Trustees and Officers
The Trustees, Members of the Advisory Board (if any), and officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Except for Jonathan Chiel, each of the Trustees oversees 298 funds. Mr. Chiel oversees 170 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the fund is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund's Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544 if you’re an individual investing directly with Fidelity, call 1-800-835-5092 if you’re a plan sponsor or participant with Fidelity as your recordkeeper or call 1-877-208-0098 on institutional accounts or if you’re an advisor or invest through one.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Board Structure and Oversight Function. James C. Curvey is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Ned C. Lautenbach serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and other equity funds. The asset allocation funds may invest in Fidelity® funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Jonathan Chiel (1957)
Year of Election or Appointment: 2016
Trustee
Mr. Chiel also serves as Trustee of other Fidelity® funds. Mr. Chiel is Executive Vice President and General Counsel for FMR LLC (diversified financial services company, 2012-present). Previously, Mr. Chiel served as general counsel (2004-2012) and senior vice president and deputy general counsel (2000-2004) for John Hancock Financial Services; a partner with Choate, Hall & Stewart (1996-2000) (law firm); and an Assistant United States Attorney for the United States Attorney’s Office of the District of Massachusetts (1986-95), including Chief of the Criminal Division (1993-1995). Mr. Chiel is a director on the boards of the Boston Bar Foundation and the Maimonides School.
James C. Curvey (1935)
Year of Election or Appointment: 2007
Trustee
Chairman of the Board of Trustees
Mr. Curvey also serves as Trustee of other Fidelity® funds. Mr. Curvey is Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey is an Overseer Emeritus for the Boston Symphony Orchestra, a Director of Artis-Naples, and a Trustee of Brewster Academy in Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-2018), Director of Fidelity Investments Money Management, Inc. (investment adviser firm, 2009-2014) and a Director of FMR and FMR Co., Inc. (investment adviser firms, 2007-2014).
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), as a member of the Independent Directors Council (IDC) Governing Council (2010-2015), and as a member of the Board of Directors for The Brookville Center for Children’s Services, Inc. (2009-2017). Mr. Dirks is a member of the Finance Committee (2016-present) and Board of Directors (2017-present) and is Treasurer (2018-present) of the Asolo Repertory Theatre.
Donald F. Donahue (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Donahue also serves as a Trustee of other Fidelity® funds. Mr. Donahue is President and Chief Executive Officer of Miranda Partners, LLC (risk consulting for the financial services industry, 2012-present). Previously, Mr. Donahue served as a Member of the Advisory Board of certain Fidelity® funds (2015-2018) and Chief Executive Officer (2006-2012), Chief Operating Officer (2003-2006), and Managing Director, Customer Marketing and Development (1999-2003) of The Depository Trust & Clearing Corporation (financial markets infrastructure). Mr. Donahue serves as a Member (2007-present) and Co-Chairman (2016-present) of the Board of Directors of United Way of New York, Member of the Board of Directors of NYC Leadership Academy (2012-present) and Member of the Board of Advisors of Ripple Labs, Inc. (financial services, 2015-present). He also served as Chairman (2010-2012) and Member of the Board of Directors (2012-2013) of Omgeo, LLC (financial services), Treasurer of United Way of New York (2012-2016), and Member of the Board of Directors of XBRL US (financial services non-profit, 2009-2012) and the International Securities Services Association (2009-2012).
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2014-2017) and a member (2010-2017) of the Board of Directors of Dave & Buster’s Entertainment, Inc. (restaurant and entertainment complexes), as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association, and as a member of the Board of Directors for The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), Earth Fare, Inc. (retail grocery, 2010-2014), and The Western Union Company (global money transfer, 2006-2011).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as Chair (2018-present) and Member (2013-present) of the Board of Governors, State University System of Florida and is a member of the Council on Foreign Relations (1994-present). He is also a member and has most recently served as Chairman of the Board of Directors of Artis-Naples (2012-present). Previously, Mr. Lautenbach served as a member and then Lead Director of the Board of Directors of Eaton Corporation (diversified industrial, 1997-2016). He was also a Partner and Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007). In addition, Mr. Lautenbach also had a 30-year career with IBM (technology company) during which time he served as Senior Vice President and a member of the Corporate Executive Committee (1968-1998).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-2018).
Cornelia M. Small (1944)
Year of Election or Appointment: 2005
Trustee
Ms. Small also serves as Trustee of other Fidelity® funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.
Garnett A. Smith (1947)
Year of Election or Appointment: 2018
Trustee
Mr. Smith also serves as Trustee of other Fidelity® funds. Prior to Mr. Smith's retirement, he served as Chairman and Chief Executive Officer of Inbrand Corp. (manufacturer of personal absorbent products, 1990-1997). He also served as President (1986-1990) of Inbrand Corp. Prior to his employment with Inbrand Corp., he was employed by a retail fabric chain and North Carolina National Bank. In addition, Mr. Smith served as a Member of the Advisory Board of certain Fidelity® funds (2012-2013) and as a board member of the Jackson Hole Land Trust (2009-2012).
David M. Thomas (1949)
Year of Election or Appointment: 2008
Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present) and as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), a Director of Fortune Brands, Inc. (consumer products, 2000-2011), and a member of the Board of Trustees of the University of Florida (2013-2018).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Advisory Board Members and Officers:
Correspondence intended for a Member of the Advisory Board (if any) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235. Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Vicki L. Fuller (1957)
Year of Election or Appointment: 2018
Member of the Advisory Board
Ms. Fuller also serves as Member of the Advisory Board of other Fidelity® funds. Ms. Fuller serves as a member of the Board of Directors, Audit Committee, and Nominating and Governance Committee of The Williams Companies, Inc. (natural gas infrastructure, 2018-present). Previously, Ms. Fuller served as the Chief Investment Officer of the New York State Common Retirement Fund (2012-2018) and held a variety of positions at AllianceBernstein L.P. (global asset management, 1985-2012), including Managing Director (2006-2012) and Senior Vice President and Senior Portfolio Manager (2001-2006).
Peter S. Lynch (1944)
Year of Election or Appointment: 2003
Member of the Advisory Board
Mr. Lynch also serves as Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of FMR (investment adviser firm) and FMR Co., Inc. (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).
Michael E. Wiley (1950)
Year of Election or Appointment: 2018
Member of the Advisory Board
Mr. Wiley also serves as Trustee or Member of the Advisory Board of other Fidelity® funds. Mr. Wiley serves as a Director of High Point Resources (exploration and production, 2005-present). Previously, Mr. Wiley served as a Director of Andeavor Corporation (independent oil refiner and marketer, 2005-2018), a Director of Andeavor Logistics LP (natural resources logistics, 2015-2018), a Director of Post Oak Bank (privately-held bank, 2004-2018), a Director of Asia Pacific Exploration Consolidated (international oil and gas exploration and production, 2008-2013), a member of the Board of Trustees of the University of Tulsa (2000-2006; 2007-2010), a Senior Energy Advisor of Katzenbach Partners, LLC (consulting, 2006-2007), an Advisory Director of Riverstone Holdings (private investment), a Director of Spinnaker Exploration Company (exploration and production, 2001-2005) and Chairman, President, and CEO of Baker Hughes, Inc. (oilfield services, 2000-2004).
Elizabeth Paige Baumann (1968)
Year of Election or Appointment: 2017
Anti-Money Laundering (AML) Officer
Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer (2012-present) and Senior Vice President (2014-present) of FMR LLC (diversified financial services company) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as AML Officer of the funds (2012-2016), and Vice President (2007-2014) and Deputy Anti-Money Laundering Officer (2007-2012) of FMR LLC.
Craig S. Brown (1977)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Brown also serves as Assistant Treasurer of other funds. Mr. Brown is an employee of Fidelity Investments (2013-present).
John J. Burke III (1964)
Year of Election or Appointment: 2018
Chief Financial Officer
Mr. Burke also serves as Chief Financial Officer of other funds. Mr. Burke serves as Head of Investment Operations for Fidelity Fund and Investment Operations (2018-present) and is an employee of Fidelity Investments (1998-present). Previously Mr. Burke served as head of Asset Management Investment Operations (2012-2018).
William C. Coffey (1969)
Year of Election or Appointment: 2018
Secretary and Chief Legal Officer (CLO)
Mr. Coffey also serves as Secretary and CLO of other funds. Mr. Coffey serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2018-present); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2018-present); and CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2018-present). He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Assistant Secretary of certain funds (2009-2018) and as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Timothy M. Cohen (1969)
Year of Election or Appointment: 2018
Vice President
Mr. Cohen also serves as Vice President of other funds. Mr. Cohen serves as Executive Vice President of Fidelity SelectCo, LLC (2019-present), Co-Head of Equity (2018-present), a Director of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present), and is an employee of Fidelity Investments. Previously, Mr. Cohen served as Head of Global Equity Research (2016-2018), Chief Investment Officer - Equity and a Director of Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2013-2015) and as a Director of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2017).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds. Mr. Davis serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present), and is an employee of Fidelity Investments (2008-present). Previously, Mr. Deberghes served as President and Treasurer of certain Fidelity® funds (2013-2018). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). Previously, Mr. Deberghes served in other fund officer roles.
Laura M. Del Prato (1964)
Year of Election or Appointment: 2018
Assistant Treasurer
Ms. Del Prato also serves as an officer of other funds. Ms. Del Prato is an employee of Fidelity Investments (2017-present). Prior to joining Fidelity Investments, Ms. Del Prato served as a Managing Director and Treasurer of the JPMorgan Mutual Funds (2014-2017). Prior to JPMorgan, Ms. Del Prato served as a partner at Cohen Fund Audit Services (accounting firm, 2012-2013) and KPMG LLP (accounting firm, 2004-2012).
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2005-present). Previously, Mr. Hogan served as Assistant Treasurer of certain Fidelity® funds (2016-2018).
Pamela R. Holding (1964)
Year of Election or Appointment: 2018
Vice President
Ms. Holding also serves as Vice President of other funds. Ms. Holding serves as Executive Vice President of Fidelity SelectCo, LLC (2019-present), Co-Head of Equity (2018-present) and is an employee of Fidelity Investments (2013-present). Previously, Ms. Holding served as Chief Investment Officer of Fidelity Institutional Asset Management (2013-2018).
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight, serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. Ms. Smith serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), is an employee of Fidelity Investments (2009-present), and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Assistant Treasurer (2013-2018) and Deputy Treasurer (2013-2016) of certain Fidelity® funds.
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
Jim Wegmann (1979)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Wegmann also serves as Assistant Treasurer of other funds. Mr. Wegmann is an employee of Fidelity Investments (2011-present).
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (February 1, 2019 to July 31, 2019).
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.
| Annualized Expense Ratio-A | Beginning Account Value February 1, 2019 | Ending Account Value July 31, 2019 | Expenses Paid During Period-B February 1, 2019 to July 31, 2019 | |
| Blue Chip Growth | .85% | |||
| Actual | $1,000.00 | $1,118.30 | $4.46 | |
| Hypothetical-C | $1,000.00 | $1,020.58 | $4.26 | |
| Class K | .76% | |||
| Actual | $1,000.00 | $1,118.90 | $3.99 | |
| Hypothetical-C | $1,000.00 | $1,021.03 | $3.81 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
C 5% return per year before expenses
Distributions (Unaudited)
The Board of Trustees of Fidelity Blue Chip Growth Fund voted to pay to shareholders of record at the opening of business on record date, the following distributions per share derived from capital gains realized from sales of portfolio securities:
| Pay Date | Record Date | Capital Gains | |
| Fidelity Blue Chip Growth Fund | |||
| Blue Chip Growth | 09/16/19 | 09/13/19 | $3.595 |
| Class K | 09/16/19 | 09/13/19 | $3.595 |
The fund hereby designates as a capital gain dividend with respect to the taxable year ended July 31, 2019, $1,456,204,981, or, if subsequently determined to be different, the net capital gain of such year.
Blue Chip Growth and Class K designate 100% of the dividends distributed during the fiscal year as qualifying for the dividends–received deduction for corporate shareholders.
Blue Chip Growth and Class K designate 100% of dividends distributed during the fiscal year as amounts which may be taken into account as a dividend for purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code.
The fund will notify shareholders in January 2020 of amounts for use in preparing 2019 income tax returns.
BCF-ANN-0919
1.536058.122
Fidelity® Blue Chip Growth K6 Fund Annual Report July 31, 2019 |
|
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of a fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a financial advisor, broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from a fund electronically, by contacting your financial intermediary. For Fidelity customers, visit Fidelity's web site or call Fidelity using the contact information listed below.
You may elect to receive all future reports in paper free of charge. If you wish to continue receiving paper copies of your shareholder reports, you may contact your financial intermediary or, if you are a Fidelity customer, visit Fidelity’s website, or call Fidelity at the applicable toll-free number listed below. Your election to receive reports in paper will apply to all funds held with the fund complex/your financial intermediary.
| Account Type | Website | Phone Number |
| Brokerage, Mutual Fund, or Annuity Contracts: | fidelity.com/mailpreferences | 1-800-343-3548 |
| Employer Provided Retirement Accounts: | netbenefits.fidelity.com/preferences (choose 'no' under Required Disclosures to continue to print) | 1-800-343-0860 |
| Advisor Sold Accounts Serviced Through Your Financial Intermediary: | Contact Your Financial Intermediary | Your Financial Intermediary's phone number |
| Advisor Sold Accounts Serviced by Fidelity: | institutional.fidelity.com | 1-877-208-0098 |
Contents
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-800-835-5092 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2019 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT. Forms N-PORT are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-PORT 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.institutional.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.
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
| For the periods ended July 31, 2019 | Past 1 year | Life of fundA |
| Fidelity® Blue Chip Growth K6 Fund | 7.48% | 15.76% |
A From May 25, 2017
$10,000 Over Life of Fund
Let's say hypothetically that $10,000 was invested in Fidelity® Blue Chip Growth K6 Fund on May 25, 2017, when the fund started.
The chart shows how the value of your investment would have changed, and also shows how the Russell 1000® Growth Index performed over the same period.
| Period Ending Values | ||
| $13,764 | Fidelity® Blue Chip Growth K6 Fund | |
| $13,961 | Russell 1000® Growth Index | |
Management's Discussion of Fund Performance
Market Recap: The U.S. equity bellwether S&P 500® index gained 7.99% for the 12 months ending July 31, 2019, beginning the new year on a high note after enduring a historically volatile final quarter of 2018. Upbeat company earnings/outlooks and signs the Federal Reserve may pause on rates boosted stocks to an all-time high on April 30. In May, however, volatility spiked and stocks returned -6.35% for the month amid the Fed’s decision to hold interest rates steady and signal that it had little appetite to adjust them any time soon, as well as retaliatory tariffs imposed on the U.S. by China. The downtrend was similar to late 2018, when many investors fled from risk assets on elevated concerns about future economic growth, global trade and tighter monetary policy. The bull market roared back in June, with the S&P 500® rising 7.05%, and recorded a series of all-time highs in a productive July (+1.44%). For the full 12 months, growth stocks outpaced value, while large-caps handily bested small-caps. By sector, information technology (+19%) led the way, boosted by continued strength in software & services (+26%), the market’s largest industry segment. Three defensive groups also stood out – real estate (+18%), utilities (+17%) and consumer staples (+15%) – followed by consumer discretionary (+10%) and communication services (+8%). In contrast, energy (-16%) was by far the weakest sector. Other notable laggards included materials (0%), financials (+3%), industrials (+4%) and health care (+4%).Comments from Portfolio Manager Sonu Kalra: For the fiscal year, the fund returned 7.48%, behind the 10.82% result of the Russell 1000® Growth Index. Security selection in consumer discretionary, industrials, materials and financials hampered the fund’s relative result. Positioning in communication services and energy also hurt, as did an underweighting in real estate. In terms of individual detractors, an overweighting in graphics chip designer Nvidia (-31%) hurt the most. Shares of Nvidia suffered as the firm grappled with excess inventory amid a slowdown in capital spending from some of Nvidia’s hyperscale customers. An outsized stake in Activision Blizzard (-33%) also detracted, as the video-gaming company faced strong competition from the blockbuster online game Fortnite. Conversely, choices in information technology and an underweighting in industrials added value. Among individual positions, an overweighting in Marvell Technology Group, a producer of storage, communications and consumer semiconductor products, added value, driven partly by demand for its chips tied to the build-out of fifth-generation (5G) wireless infrastructure. An out-of-benchmark private investment in e-cigarette maker JUUL Labs also contributed. JUUL’s success in penetrating the U.S. market supported a higher valuation for this position. As the largest industry participant, JUUL has been a focus of the U.S. Food and Drug Administration, which called teen vaping an "epidemic."The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Investment Summary (Unaudited)
Top Ten Stocks as of July 31, 2019
| % of fund's net assets | |
| Amazon.com, Inc. | 7.4 |
| Alphabet, Inc. Class A | 7.1 |
| Apple, Inc. | 5.9 |
| Microsoft Corp. | 5.0 |
| Facebook, Inc. Class A | 4.5 |
| Salesforce.com, Inc. | 2.9 |
| Visa, Inc. Class A | 2.8 |
| Marvell Technology Group Ltd. | 2.6 |
| MasterCard, Inc. Class A | 2.0 |
| NVIDIA Corp. | 2.0 |
| 42.2 |
Top Five Market Sectors as of July 31, 2019
| % of fund's net assets | |
| Information Technology | 36.0 |
| Consumer Discretionary | 23.1 |
| Communication Services | 17.4 |
| Health Care | 12.1 |
| Industrials | 4.6 |
Asset Allocation (% of fund's net assets)
| As of July 31, 2019 * | ||
| Stocks | 98.5% | |
| Convertible Securities | 0.7% | |
| Short-Term Investments and Net Other Assets (Liabilities) | 0.8% | |
* Foreign investments - 11.2%
Schedule of Investments July 31, 2019
Showing Percentage of Net Assets
| Common Stocks - 98.5% | |||
| Shares | Value | ||
| COMMUNICATION SERVICES - 17.4% | |||
| Entertainment - 3.8% | |||
| Activision Blizzard, Inc. | 275,496 | $13,427,675 | |
| Netflix, Inc. (a) | 112,525 | 36,344,450 | |
| Nintendo Co. Ltd. | 4,800 | 1,765,886 | |
| Nintendo Co. Ltd. ADR | 17,134 | 791,419 | |
| Take-Two Interactive Software, Inc. (a) | 26,223 | 3,212,842 | |
| The Walt Disney Co. | 219,479 | 31,387,692 | |
| 86,929,964 | |||
| Interactive Media & Services - 13.4% | |||
| Alphabet, Inc.: | |||
| Class A (a) | 133,794 | 162,987,851 | |
| Class C (a) | 10,131 | 12,326,185 | |
| CarGurus, Inc. Class A (a) | 52,364 | 1,951,606 | |
| Facebook, Inc. Class A (a) | 528,019 | 102,557,130 | |
| IAC/InterActiveCorp (a) | 5,611 | 1,341,310 | |
| Match Group, Inc. | 27,379 | 2,061,365 | |
| Snap, Inc. Class A (a)(b) | 141,255 | 2,373,084 | |
| Tencent Holdings Ltd. | 250,900 | 11,690,177 | |
| Twitter, Inc. (a) | 206,766 | 8,748,269 | |
| Zillow Group, Inc. Class C (a)(b) | 9,600 | 479,616 | |
| 306,516,593 | |||
| Media - 0.0% | |||
| Sinclair Broadcast Group, Inc. Class A | 26,155 | 1,314,289 | |
| Wireless Telecommunication Services - 0.2% | |||
| T-Mobile U.S., Inc. (a) | 61,458 | 4,900,046 | |
| TOTAL COMMUNICATION SERVICES | 399,660,892 | ||
| CONSUMER DISCRETIONARY - 23.0% | |||
| Auto Components - 0.0% | |||
| Aptiv PLC | 9,030 | 791,480 | |
| Automobiles - 1.2% | |||
| Tesla, Inc. (a)(b) | 113,847 | 27,506,574 | |
| Diversified Consumer Services - 0.0% | |||
| Afya Ltd. | 19,600 | 566,832 | |
| Hotels, Restaurants & Leisure - 3.0% | |||
| Chipotle Mexican Grill, Inc. (a) | 2,542 | 2,022,237 | |
| Churchill Downs, Inc. | 5,700 | 682,005 | |
| Dunkin' Brands Group, Inc. | 2,800 | 224,448 | |
| Eldorado Resorts, Inc. (a) | 101,529 | 4,580,988 | |
| Hilton Grand Vacations, Inc. (a) | 85,249 | 2,787,642 | |
| Kambi Group PLC (a) | 44,400 | 569,864 | |
| McDonald's Corp. | 14,753 | 3,108,752 | |
| Planet Fitness, Inc. (a) | 83,524 | 6,569,998 | |
| PlayAGS, Inc. (a) | 89,246 | 1,674,255 | |
| Restaurant Brands International, Inc. | 73,437 | 5,408,453 | |
| Royal Caribbean Cruises Ltd. | 53,543 | 6,229,193 | |
| Sea Ltd. ADR (a)(b) | 377,091 | 13,235,894 | |
| Shake Shack, Inc. Class A (a) | 41,667 | 3,110,858 | |
| Starbucks Corp. | 96,971 | 9,182,184 | |
| Vail Resorts, Inc. | 4,900 | 1,207,948 | |
| Wynn Resorts Ltd. | 55,216 | 7,181,945 | |
| 67,776,664 | |||
| Household Durables - 0.4% | |||
| D.R. Horton, Inc. | 47,828 | 2,196,740 | |
| Mohawk Industries, Inc. (a) | 34,671 | 4,323,127 | |
| Roku, Inc. Class A (a) | 31,137 | 3,217,386 | |
| 9,737,253 | |||
| Internet & Direct Marketing Retail - 10.4% | |||
| Alibaba Group Holding Ltd. sponsored ADR (a) | 124,964 | 21,632,518 | |
| Amazon.com, Inc. (a) | 90,292 | 168,555,297 | |
| Chewy, Inc. | 12,100 | 406,076 | |
| JD.com, Inc. sponsored ADR (a) | 267,451 | 7,999,459 | |
| MakeMyTrip Ltd. (a) | 17,219 | 440,634 | |
| Meituan Dianping Class B | 52,300 | 422,908 | |
| MercadoLibre, Inc. (a) | 9,535 | 5,925,240 | |
| Ocado Group PLC (a) | 33,249 | 503,607 | |
| Pinduoduo, Inc. ADR | 271,675 | 6,050,202 | |
| The Booking Holdings, Inc. (a) | 9,893 | 18,664,233 | |
| The RealReal, Inc. (b) | 79,500 | 1,951,725 | |
| Wayfair LLC Class A (a) | 49,713 | 6,520,357 | |
| 239,072,256 | |||
| Multiline Retail - 1.0% | |||
| Dollar General Corp. | 8,437 | 1,130,727 | |
| Dollar Tree, Inc. (a) | 157,840 | 16,060,220 | |
| Dollarama, Inc. | 19,500 | 722,496 | |
| Ollie's Bargain Outlet Holdings, Inc. (a) | 10,462 | 886,027 | |
| Target Corp. | 34,140 | 2,949,696 | |
| 21,749,166 | |||
| Specialty Retail - 3.8% | |||
| American Eagle Outfitters, Inc. | 124,082 | 2,195,011 | |
| Burlington Stores, Inc.(a) | 34,638 | 6,260,819 | |
| Carvana Co. Class A (a) | 52,161 | 3,315,353 | |
| Five Below, Inc. (a) | 33,487 | 3,933,383 | |
| Floor & Decor Holdings, Inc. Class A (a) | 88,423 | 3,461,760 | |
| IAA Spinco, Inc. (a) | 5,400 | 252,450 | |
| John David Group PLC | 29,400 | 232,325 | |
| Lowe's Companies, Inc. | 243,693 | 24,710,470 | |
| RH (a)(b) | 49,600 | 6,914,240 | |
| The Children's Place Retail Stores, Inc. | 11,481 | 1,121,349 | |
| The Home Depot, Inc. | 112,023 | 23,938,195 | |
| TJX Companies, Inc. | 80,964 | 4,417,396 | |
| Ulta Beauty, Inc. (a) | 14,352 | 5,012,436 | |
| 85,765,187 | |||
| Textiles, Apparel & Luxury Goods - 3.2% | |||
| adidas AG | 28,999 | 9,295,103 | |
| Allbirds, Inc. (c)(d) | 2,352 | 117,812 | |
| Canada Goose Holdings, Inc. (a) | 23,481 | 1,099,682 | |
| Capri Holdings Ltd. (a) | 77,499 | 2,758,189 | |
| Crocs, Inc. (a) | 34,213 | 781,767 | |
| lululemon athletica, Inc. (a) | 107,037 | 20,453,700 | |
| LVMH Moet Hennessy Louis Vuitton SE | 7,374 | 3,045,898 | |
| Moncler SpA | 73,904 | 3,040,942 | |
| NIKE, Inc. Class B | 232,078 | 19,965,670 | |
| PVH Corp. | 68,075 | 6,053,229 | |
| Revolve Group, Inc. (b) | 35,300 | 1,216,791 | |
| Tapestry, Inc. | 89,420 | 2,765,761 | |
| Under Armour, Inc. Class C (non-vtg.) (a) | 105,986 | 2,155,755 | |
| 72,750,299 | |||
| TOTAL CONSUMER DISCRETIONARY | 525,715,711 | ||
| CONSUMER STAPLES - 3.0% | |||
| Beverages - 0.4% | |||
| Constellation Brands, Inc. Class A (sub. vtg.) | 3,500 | 688,870 | |
| Fever-Tree Drinks PLC | 111,836 | 3,177,048 | |
| Keurig Dr. Pepper, Inc. | 76,931 | 2,164,838 | |
| Monster Beverage Corp. (a) | 44,385 | 2,861,501 | |
| Pernod Ricard SA | 1,123 | 197,725 | |
| 9,089,982 | |||
| Food & Staples Retailing - 1.2% | |||
| BJ's Wholesale Club Holdings, Inc. (a) | 228,211 | 5,376,651 | |
| Costco Wholesale Corp. | 66,325 | 18,281,160 | |
| Grocery Outlet Holding Corp. | 5,700 | 221,958 | |
| Walmart, Inc. | 22,000 | 2,428,360 | |
| 26,308,129 | |||
| Food Products - 0.2% | |||
| Darling International, Inc. (a) | 21,320 | 433,436 | |
| JBS SA | 40,600 | 264,897 | |
| Nestle SA (Reg. S) | 2,561 | 271,689 | |
| The Kraft Heinz Co. | 43,300 | 1,386,033 | |
| Tyson Foods, Inc. Class A | 26,880 | 2,136,960 | |
| 4,493,015 | |||
| Household Products - 0.0% | |||
| Energizer Holdings, Inc. | 17,400 | 732,192 | |
| Personal Products - 0.4% | |||
| Coty, Inc. Class A | 363,616 | 3,967,051 | |
| Estee Lauder Companies, Inc. Class A | 33,603 | 6,189,337 | |
| 10,156,388 | |||
| Tobacco - 0.8% | |||
| Altria Group, Inc. | 265,170 | 12,481,552 | |
| JUUL Labs, Inc. Class A (a)(c)(d) | 23,134 | 6,593,190 | |
| 19,074,742 | |||
| TOTAL CONSUMER STAPLES | 69,854,448 | ||
| ENERGY - 0.5% | |||
| Oil, Gas & Consumable Fuels - 0.5% | |||
| Continental Resources, Inc. (a) | 49,133 | 1,826,274 | |
| Diamondback Energy, Inc. | 23,032 | 2,382,200 | |
| Hess Corp. | 27,885 | 1,808,063 | |
| Pioneer Natural Resources Co. | 1,700 | 234,668 | |
| Reliance Industries Ltd. | 337,042 | 5,674,323 | |
| 11,925,528 | |||
| FINANCIALS - 1.0% | |||
| Banks - 0.4% | |||
| Bank of America Corp. | 268,463 | 8,236,445 | |
| HDFC Bank Ltd. sponsored ADR | 1,968 | 226,281 | |
| ICICI Bank Ltd. sponsored ADR | 41,664 | 508,717 | |
| IndusInd Bank Ltd. | 8,949 | 182,762 | |
| Kotak Mahindra Bank Ltd. | 38,102 | 837,725 | |
| 9,991,930 | |||
| Capital Markets - 0.1% | |||
| Edelweiss Financial Services Ltd. | 58,486 | 123,452 | |
| HDFC Asset Management Co. Ltd. (e) | 110 | 3,416 | |
| MSCI, Inc. | 4,000 | 908,960 | |
| 1,035,828 | |||
| Diversified Financial Services - 0.0% | |||
| GDS Holdings Ltd. ADR (a) | 24,771 | 1,020,070 | |
| Insurance - 0.3% | |||
| eHealth, Inc. (a) | 57,422 | 5,957,533 | |
| Thrifts & Mortgage Finance - 0.2% | |||
| Housing Development Finance Corp. Ltd. | 20,960 | 643,556 | |
| LendingTree, Inc. (a) | 10,205 | 3,291,521 | |
| 3,935,077 | |||
| TOTAL FINANCIALS | 21,940,438 | ||
| HEALTH CARE - 12.0% | |||
| Biotechnology - 4.3% | |||
| AbbVie, Inc. | 124,100 | 8,267,542 | |
| ACADIA Pharmaceuticals, Inc. (a) | 19,374 | 476,213 | |
| Acceleron Pharma, Inc. (a) | 20,258 | 884,464 | |
| Agios Pharmaceuticals, Inc. (a) | 22,386 | 1,076,990 | |
| Aimmune Therapeutics, Inc. (a) | 42,395 | 816,104 | |
| Alexion Pharmaceuticals, Inc. (a) | 173,395 | 19,643,920 | |
| Allakos, Inc. (a) | 12,680 | 440,884 | |
| Allogene Therapeutics, Inc. | 9,283 | 287,773 | |
| Alnylam Pharmaceuticals, Inc. (a) | 70,115 | 5,440,223 | |
| AnaptysBio, Inc. (a) | 14,025 | 753,283 | |
| Arena Pharmaceuticals, Inc. (a) | 28,662 | 1,796,534 | |
| Argenx SE ADR (a) | 3,837 | 538,945 | |
| Ascendis Pharma A/S sponsored ADR (a) | 34,432 | 3,985,848 | |
| BeiGene Ltd. | 47,600 | 488,725 | |
| BeiGene Ltd. ADR (a) | 10,926 | 1,500,577 | |
| bluebird bio, Inc. (a) | 26,176 | 3,435,076 | |
| Blueprint Medicines Corp. (a) | 8,070 | 808,211 | |
| Bridgebio Pharma, Inc. | 20,700 | 607,545 | |
| CareDx, Inc. (a) | 85,619 | 2,805,735 | |
| Cellectis SA sponsored ADR (a) | 10,078 | 146,635 | |
| Cibus Corp.: | |||
| Series C (a)(c)(d)(f) | 133,810 | 239,679 | |
| Series D (a)(c)(d)(f) | 134,400 | 168,000 | |
| Coherus BioSciences, Inc. (a) | 45,631 | 767,513 | |
| Crinetics Pharmaceuticals, Inc. (a) | 22,006 | 446,282 | |
| Denali Therapeutics, Inc. (a)(b) | 48,265 | 1,030,458 | |
| Editas Medicine, Inc. (a)(b) | 36,312 | 916,878 | |
| Epizyme, Inc. (a) | 8,784 | 116,476 | |
| Exact Sciences Corp. (a) | 9,552 | 1,099,531 | |
| FibroGen, Inc. (a) | 35,478 | 1,676,690 | |
| Global Blood Therapeutics, Inc. (a) | 51,800 | 2,838,640 | |
| Immunomedics, Inc. (a)(b) | 54,962 | 810,690 | |
| Intellia Therapeutics, Inc. (a)(b) | 43,563 | 788,490 | |
| Intercept Pharmaceuticals, Inc. (a) | 25,166 | 1,581,683 | |
| Ionis Pharmaceuticals, Inc. (a) | 12,047 | 793,415 | |
| Ironwood Pharmaceuticals, Inc. Class A (a) | 77,794 | 826,950 | |
| Natera, Inc. (a) | 67,617 | 1,864,877 | |
| Neurocrine Biosciences, Inc. (a) | 41,371 | 3,987,751 | |
| Principia Biopharma, Inc. | 8,301 | 308,299 | |
| Repligen Corp. (a) | 2,600 | 245,414 | |
| Rubius Therapeutics, Inc. | 10,182 | 135,421 | |
| Sage Therapeutics, Inc. (a) | 35,393 | 5,674,914 | |
| Sarepta Therapeutics, Inc. (a) | 43,404 | 6,460,685 | |
| Scholar Rock Holding Corp. (a) | 13,076 | 160,704 | |
| The Medicines Company (a) | 42,663 | 1,529,042 | |
| TransMedics Group, Inc. | 28,740 | 682,000 | |
| Vertex Pharmaceuticals, Inc. (a) | 43,964 | 7,325,282 | |
| Xencor, Inc. (a) | 31,730 | 1,396,755 | |
| Zai Lab Ltd. ADR (a) | 39,800 | 1,278,376 | |
| 99,352,122 | |||
| Health Care Equipment & Supplies - 3.3% | |||
| Alcon, Inc. (a) | 45,921 | 2,697,859 | |
| Atricure, Inc. (a) | 14,601 | 468,400 | |
| Axonics Modulation Technologies, Inc. (a)(b) | 24,999 | 917,463 | |
| Boston Scientific Corp. (a) | 660,207 | 28,032,389 | |
| Danaher Corp. | 35,526 | 4,991,403 | |
| DexCom, Inc. (a) | 12,074 | 1,894,048 | |
| Edwards Lifesciences Corp. (a) | 3,400 | 723,690 | |
| Establishment Labs Holdings, Inc. (a) | 32,923 | 821,758 | |
| Inspire Medical Systems, Inc. (a) | 3,800 | 256,994 | |
| Insulet Corp. (a) | 22,846 | 2,808,687 | |
| Intuitive Surgical, Inc. (a) | 41,934 | 21,785,132 | |
| Koninklijke Philips Electronics NV | 35,900 | 1,684,092 | |
| Koninklijke Philips Electronics NV (depositary receipt) (NY Reg.) | 10,600 | 495,974 | |
| Novocure Ltd. (a) | 17,266 | 1,436,877 | |
| Quanterix Corp. (a) | 11,609 | 359,647 | |
| Shockwave Medical, Inc. (a)(b) | 55,848 | 2,732,084 | |
| Silk Road Medical, Inc. (b) | 6,995 | 302,814 | |
| Tandem Diabetes Care, Inc. (a) | 35,822 | 2,272,189 | |
| ViewRay, Inc. (a) | 44,274 | 396,695 | |
| Wright Medical Group NV (a) | 24,873 | 717,835 | |
| 75,796,030 | |||
| Health Care Providers & Services - 2.8% | |||
| Anthem, Inc. | 6,848 | 2,017,489 | |
| Guardant Health, Inc. | 24,914 | 2,341,667 | |
| HCA Holdings, Inc. | 22,279 | 2,974,469 | |
| Humana, Inc. | 54,628 | 16,210,859 | |
| Notre Dame Intermedica Participacoes SA | 67,300 | 770,634 | |
| OptiNose, Inc. (a) | 49,856 | 267,727 | |
| UnitedHealth Group, Inc. | 157,929 | 39,325,900 | |
| 63,908,745 | |||
| Health Care Technology - 0.0% | |||
| Health Catalyst, Inc. | 6,500 | 287,625 | |
| Livongo Health, Inc. | 5,000 | 221,250 | |
| Phreesia, Inc. | 21,100 | 576,663 | |
| 1,085,538 | |||
| Life Sciences Tools & Services - 0.5% | |||
| Adaptive Biotechnologies Corp. | 8,500 | 327,675 | |
| Avantor, Inc. | 49,845 | 876,774 | |
| IQVIA Holdings, Inc. (a) | 7,414 | 1,180,086 | |
| Thermo Fisher Scientific, Inc. | 28,593 | 7,939,704 | |
| 10,324,239 | |||
| Pharmaceuticals - 1.1% | |||
| Akcea Therapeutics, Inc. (a) | 61,044 | 1,320,382 | |
| AstraZeneca PLC sponsored ADR | 141,173 | 6,128,320 | |
| Bristol-Myers Squibb Co. | 172,383 | 7,655,529 | |
| Corteva, Inc. | 16,300 | 480,850 | |
| Hansoh Pharmaceutical Group Co. Ltd. (e) | 180,000 | 483,735 | |
| Horizon Pharma PLC (a) | 15,596 | 388,184 | |
| Merck & Co., Inc. | 34,100 | 2,829,959 | |
| Morphic Holding, Inc. | 14,900 | 336,442 | |
| MyoKardia, Inc. (a) | 7,840 | 426,731 | |
| Nektar Therapeutics (a) | 72,848 | 2,073,254 | |
| TherapeuticsMD, Inc. (a) | 77,266 | 166,122 | |
| Theravance Biopharma, Inc. (a) | 4,213 | 87,841 | |
| Turning Point Therapeutics, Inc. (b) | 44,815 | 1,785,430 | |
| Zogenix, Inc. (a) | 8,716 | 419,850 | |
| 24,582,629 | |||
| TOTAL HEALTH CARE | 275,049,303 | ||
| INDUSTRIALS - 4.6% | |||
| Aerospace & Defense - 1.1% | |||
| Elbit Systems Ltd. | 3,905 | 623,238 | |
| General Dynamics Corp. | 8,936 | 1,661,560 | |
| Lockheed Martin Corp. | 28,779 | 10,422,890 | |
| Northrop Grumman Corp. | 700 | 241,899 | |
| The Boeing Co. | 33,096 | 11,291,693 | |
| 24,241,280 | |||
| Air Freight & Logistics - 0.3% | |||
| United Parcel Service, Inc. Class B | 50,900 | 6,081,023 | |
| XPO Logistics, Inc. (a) | 6,900 | 465,612 | |
| 6,546,635 | |||
| Airlines - 0.3% | |||
| Spirit Airlines, Inc. (a) | 149,198 | 6,330,471 | |
| Commercial Services & Supplies - 0.1% | |||
| HomeServe PLC | 119,151 | 1,653,304 | |
| Tomra Systems ASA | 47,000 | 1,389,283 | |
| 3,042,587 | |||
| Construction & Engineering - 0.0% | |||
| Dycom Industries, Inc. (a) | 19,513 | 1,076,337 | |
| Electrical Equipment - 0.1% | |||
| Fortive Corp. | 36,931 | 2,808,603 | |
| Industrial Conglomerates - 1.0% | |||
| General Electric Co. | 1,569,456 | 16,400,815 | |
| Honeywell International, Inc. | 34,729 | 5,989,363 | |
| 22,390,178 | |||
| Machinery - 0.6% | |||
| AGCO Corp. | 6,100 | 469,700 | |
| Deere & Co. | 79,240 | 13,126,106 | |
| Rational AG | 1,209 | 824,432 | |
| 14,420,238 | |||
| Professional Services - 0.0% | |||
| TriNet Group, Inc. (a) | 6,200 | 455,948 | |
| Road & Rail - 1.1% | |||
| Canadian Pacific Railway Ltd. | 1,870 | 446,473 | |
| Knight-Swift Transportation Holdings, Inc. Class A | 141,813 | 5,082,578 | |
| Lyft, Inc. | 278,027 | 16,077,328 | |
| Lyft, Inc. (b) | 35,739 | 2,175,433 | |
| Uber Technologies, Inc. (b) | 13,787 | 580,984 | |
| 24,362,796 | |||
| TOTAL INDUSTRIALS | 105,675,073 | ||
| INFORMATION TECHNOLOGY - 35.8% | |||
| Communications Equipment - 0.6% | |||
| Arista Networks, Inc. (a) | 33,310 | 9,108,620 | |
| Cisco Systems, Inc. | 75,300 | 4,171,620 | |
| 13,280,240 | |||
| Electronic Equipment & Components - 0.0% | |||
| Coherent, Inc. (a) | 6,600 | 916,410 | |
| IPG Photonics Corp. (a) | 1,700 | 222,717 | |
| 1,139,127 | |||
| Internet Software & Services - 0.1% | |||
| Farfetch Ltd. Class A (b) | 36,857 | 740,826 | |
| Qudian, Inc. ADR (a) | 47,206 | 431,463 | |
| 1,172,289 | |||
| IT Services - 7.7% | |||
| Akamai Technologies, Inc. (a) | 73,990 | 6,520,739 | |
| Elastic NV | 50,728 | 5,013,448 | |
| Endava PLC ADR (a) | 23,552 | 871,424 | |
| Fastly, Inc. Class A (b) | 4,568 | 99,126 | |
| Fiserv, Inc. (a) | 2,200 | 231,946 | |
| Fiverr International Ltd. (b) | 15,000 | 381,000 | |
| GMO Internet, Inc. | 12,700 | 208,028 | |
| GoDaddy, Inc. (a) | 28,900 | 2,120,682 | |
| Keywords Studios PLC | 9,069 | 183,409 | |
| MasterCard, Inc. Class A | 170,205 | 46,341,715 | |
| MongoDB, Inc. Class A (a) | 5,155 | 738,299 | |
| Okta, Inc. (a) | 51,969 | 6,799,104 | |
| PagSeguro Digital Ltd. (a) | 40,700 | 1,769,636 | |
| PayPal Holdings, Inc. (a) | 224,081 | 24,738,542 | |
| Shopify, Inc. Class A (a) | 22,707 | 7,215,899 | |
| Square, Inc. (a) | 23,590 | 1,896,872 | |
| Twilio, Inc. Class A (a) | 26,083 | 3,628,406 | |
| Visa, Inc. Class A | 352,923 | 62,820,294 | |
| Wix.com Ltd. (a) | 29,673 | 4,407,034 | |
| 175,985,603 | |||
| Semiconductors & Semiconductor Equipment - 9.5% | |||
| Advanced Micro Devices, Inc. (a) | 227,813 | 6,936,906 | |
| Analog Devices, Inc. | 6,000 | 704,760 | |
| Applied Materials, Inc. | 50,265 | 2,481,583 | |
| ASML Holding NV | 7,234 | 1,611,808 | |
| First Solar, Inc. (a) | 4,516 | 291,237 | |
| Inphi Corp. (a) | 52,440 | 3,157,412 | |
| Lam Research Corp. | 50,356 | 10,504,765 | |
| Marvell Technology Group Ltd. | 2,225,241 | 58,434,829 | |
| Microchip Technology, Inc. | 19,500 | 1,841,190 | |
| Micron Technology, Inc. (a) | 272,873 | 12,249,269 | |
| Monolithic Power Systems, Inc. | 25,673 | 3,803,712 | |
| NVIDIA Corp. | 272,566 | 45,987,336 | |
| NXP Semiconductors NV | 273,714 | 28,299,290 | |
| Qorvo, Inc. (a) | 9,300 | 681,597 | |
| Qualcomm, Inc. | 502,321 | 36,749,804 | |
| Skyworks Solutions, Inc. | 8,000 | 682,240 | |
| Universal Display Corp. | 11,505 | 2,428,475 | |
| 216,846,213 | |||
| Software - 11.9% | |||
| Adobe, Inc. (a) | 93,751 | 28,018,424 | |
| Altair Engineering, Inc. Class A (a) | 6,738 | 280,368 | |
| Anaplan, Inc. (b) | 4,880 | 277,867 | |
| Atlassian Corp. PLC (a) | 9,173 | 1,285,321 | |
| Blue Prism Group PLC (a) | 66,792 | 1,155,842 | |
| Ceridian HCM Holding, Inc. (a) | 4,300 | 229,233 | |
| Coupa Software, Inc. (a) | 13,056 | 1,771,830 | |
| Crowdstrike Holdings, Inc. | 18,100 | 1,612,167 | |
| DocuSign, Inc. (a) | 27,280 | 1,410,922 | |
| HubSpot, Inc. (a) | 10,211 | 1,824,910 | |
| Intuit, Inc. | 18,530 | 5,138,554 | |
| Lightspeed POS, Inc. (a) | 52,069 | 1,563,885 | |
| LivePerson, Inc. (a) | 39,400 | 1,307,686 | |
| Medallia, Inc. | 3,500 | 139,475 | |
| Microsoft Corp. | 835,351 | 113,833,281 | |
| Pagerduty, Inc. (b) | 3,502 | 154,788 | |
| Paycom Software, Inc. (a) | 29,955 | 7,211,666 | |
| RingCentral, Inc. (a) | 38,890 | 5,521,602 | |
| Salesforce.com, Inc. (a) | 428,659 | 66,227,816 | |
| ServiceNow, Inc. (a) | 28,687 | 7,957,487 | |
| Slack Technologies, Inc. Class A (a) | 36,400 | 1,216,488 | |
| Smartsheet, Inc. (a) | 20,505 | 1,023,405 | |
| Splunk, Inc. (a) | 12,812 | 1,733,592 | |
| StoneCo Ltd. Class A (a) | 13,700 | 479,637 | |
| Synopsys, Inc. (a) | 1,869 | 248,128 | |
| The Trade Desk, Inc. (a) | 28,576 | 7,524,347 | |
| Tufin Software Technologies Ltd. (b) | 18,027 | 393,529 | |
| Workday, Inc. Class A (a) | 53,548 | 10,708,529 | |
| Zendesk, Inc. (a) | 20,420 | 1,706,295 | |
| Zoom Video Communications, Inc. Class A (b) | 7,459 | 712,409 | |
| 272,669,483 | |||
| Technology Hardware, Storage & Peripherals - 6.0% | |||
| Apple, Inc. | 634,978 | 135,275,713 | |
| Western Digital Corp. | 53,921 | 2,905,803 | |
| 138,181,516 | |||
| TOTAL INFORMATION TECHNOLOGY | 819,274,471 | ||
| MATERIALS - 1.0% | |||
| Chemicals - 1.0% | |||
| CF Industries Holdings, Inc. | 165,528 | 8,203,568 | |
| Nutrien Ltd. | 148,976 | 8,167,831 | |
| The Chemours Co. LLC | 48,000 | 915,360 | |
| The Mosaic Co. | 182,400 | 4,594,656 | |
| 21,881,415 | |||
| REAL ESTATE - 0.2% | |||
| Equity Real Estate Investment Trusts (REITs) - 0.2% | |||
| Ant International Co. Ltd. Class C (a)(c)(d) | 274,458 | 2,170,962 | |
| Crown Castle International Corp. | 10,133 | 1,350,324 | |
| 3,521,286 | |||
| UTILITIES - 0.0% | |||
| Electric Utilities - 0.0% | |||
| ORSTED A/S (e) | 2,800 | 255,768 | |
| TOTAL COMMON STOCKS | |||
| (Cost $1,849,366,813) | 2,254,754,333 | ||
| Preferred Stocks - 0.7% | |||
| Convertible Preferred Stocks - 0.7% | |||
| CONSUMER DISCRETIONARY - 0.1% | |||
| Hotels, Restaurants & Leisure - 0.1% | |||
| Neutron Holdings, Inc.: | |||
| Series C (a)(c)(d) | 3,178,083 | 770,685 | |
| Series D (c)(d) | 5,904,173 | 1,431,762 | |
| Topgolf International, Inc. Series F (a)(c)(d) | 9,181 | 140,561 | |
| 2,343,008 | |||
| Internet & Direct Marketing Retail - 0.0% | |||
| The Honest Co., Inc. Series E (a)(c)(d) | 11,802 | 231,319 | |
| Textiles, Apparel & Luxury Goods - 0.0% | |||
| Allbirds, Inc.: | |||
| Series A (c)(d) | 928 | 46,484 | |
| Series B (c)(d) | 163 | 8,165 | |
| Series C (c)(d) | 1,558 | 78,040 | |
| 132,689 | |||
| TOTAL CONSUMER DISCRETIONARY | 2,707,016 | ||
| CONSUMER STAPLES - 0.3% | |||
| Food & Staples Retailing - 0.1% | |||
| Roofoods Ltd. Series F (a)(c)(d) | 337 | 140,832 | |
| Sweetgreen, Inc. Series H (c)(d) | 211,642 | 3,185,212 | |
| 3,326,044 | |||
| Food Products - 0.0% | |||
| Agbiome LLC Series C (a)(c)(d) | 68,700 | 390,903 | |
| Tobacco - 0.2% | |||
| JUUL Labs, Inc. Series E (a)(c)(d) | 12,508 | 3,564,780 | |
| TOTAL CONSUMER STAPLES | 7,281,727 | ||
| HEALTH CARE - 0.1% | |||
| Biotechnology - 0.1% | |||
| 23andMe, Inc. Series F (a)(c)(d) | 6,504 | 85,723 | |
| Generation Bio Series B (a)(c)(d) | 22,400 | 203,616 | |
| Nuvation Bio, Inc. Series A (c)(d)(g) | 658,600 | 508,031 | |
| 797,370 | |||
| INFORMATION TECHNOLOGY - 0.2% | |||
| Internet Software & Services - 0.1% | |||
| ContextLogic, Inc. Series G (a)(c)(d) | 2,862 | 485,309 | |
| Starry, Inc.: | |||
| Series C (a)(c)(d) | 158,250 | 226,298 | |
| Series D (c)(d) | 296,910 | 424,581 | |
| 1,136,188 | |||
| Software - 0.1% | |||
| Bird Rides, Inc. Series C (c)(d) | 146,154 | 1,716,652 | |
| Cloudflare, Inc. Series D, 8.00% (a)(c)(d) | 30,300 | 599,637 | |
| Compass, Inc. Series E (a)(c)(d) | 1,181 | 186,614 | |
| UiPath, Inc.: | |||
| Series A1 (c)(d) | 9,939 | 391,117 | |
| Series B1 (c)(d) | 495 | 19,479 | |
| Series B2 (c)(d) | 2,466 | 97,041 | |
| 3,010,540 | |||
| TOTAL INFORMATION TECHNOLOGY | 4,146,728 | ||
| REAL ESTATE - 0.0% | |||
| Real Estate Management & Development - 0.0% | |||
| Sonder Canada, Inc. Series D (c)(d) | 47,507 | 498,633 | |
| TOTAL CONVERTIBLE PREFERRED STOCKS | 15,431,474 | ||
| Nonconvertible Preferred Stocks - 0.0% | |||
| CONSUMER DISCRETIONARY - 0.0% | |||
| Textiles, Apparel & Luxury Goods - 0.0% | |||
| Allbirds, Inc. (c)(d) | 499 | 24,995 | |
| TOTAL PREFERRED STOCKS | |||
| (Cost $11,095,533) | 15,456,469 | ||
| Money Market Funds - 3.5% | |||
| Fidelity Cash Central Fund 2.43% (h) | 20,189,588 | 20,193,626 | |
| Fidelity Securities Lending Cash Central Fund 2.43% (h)(i) | 60,914,912 | 60,921,004 | |
| TOTAL MONEY MARKET FUNDS | |||
| (Cost $81,114,630) | 81,114,630 | ||
| TOTAL INVESTMENT IN SECURITIES - 102.7% | |||
| (Cost $1,941,576,976) | 2,351,325,432 | ||
| NET OTHER ASSETS (LIABILITIES) - (2.7)% | (61,088,716) | ||
| NET ASSETS - 100% | $2,290,236,716 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $24,746,112 or 1.1% of net assets.
(d) Level 3 security
(e) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $742,919 or 0.0% of net assets.
(f) Investment is owned by a wholly-owned subsidiary (Subsidiary) that is treated as a corporation for U.S. tax purposes.
(g) Security or a portion of the security purchased on a delayed delivery or when-issued basis.
(h) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund’s Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(i) Investment made with cash collateral received from securities on loan.
Additional information on each restricted holding is as follows:
| Security | Acquisition Date | Acquisition Cost |
| 23andMe, Inc. Series F | 8/31/17 | $90,303 |
| Agbiome LLC Series C | 6/29/18 | $435,125 |
| Allbirds, Inc. | 10/9/18 | $128,974 |
| Allbirds, Inc. | 10/9/18 | $27,363 |
| Allbirds, Inc. Series A | 10/9/18 | $50,888 |
| Allbirds, Inc. Series B | 10/9/18 | $8,938 |
| Allbirds, Inc. Series C | 10/9/18 | $85,434 |
| Ant International Co. Ltd. Class C | 5/16/18 | $1,539,709 |
| Bird Rides, Inc. Series C | 12/21/18 | $1,716,652 |
| Cibus Corp. Series C | 2/16/18 | $281,001 |
| Cibus Corp. Series D | 5/10/19 | $168,000 |
| Cloudflare, Inc. Series D, 8.00% | 9/10/18 | $333,300 |
| Compass, Inc. Series E | 11/3/17 | $79,692 |
| ContextLogic, Inc. Series G | 10/24/17 | $385,033 |
| Generation Bio Series B | 2/21/18 | $204,864 |
| JUUL Labs, Inc. Class A | 12/20/17 - 7/6/18 | $645,585 |
| JUUL Labs, Inc. Series E | 12/20/17 - 7/6/18 | $342,963 |
| Neutron Holdings, Inc. Series C | 7/3/18 | $581,081 |
| Neutron Holdings, Inc. Series D | 1/25/19 | $1,431,762 |
| Nuvation Bio, Inc. Series A | 6/17/19 | $508,030 |
| Roofoods Ltd. Series F | 9/12/17 | $119,153 |
| Sonder Canada, Inc. Series D | 5/21/19 | $498,633 |
| Starry, Inc. Series C | 12/8/17 | $145,907 |
| Starry, Inc. Series D | 3/6/19 | $424,581 |
| Sweetgreen, Inc. Series H | 11/9/18 | $2,759,812 |
| The Honest Co., Inc. Series E | 9/28/17 | $231,376 |
| Topgolf International, Inc. Series F | 11/10/17 | $127,005 |
| UiPath, Inc. Series A1 | 6/14/19 | $391,117 |
| UiPath, Inc. Series B1 | 6/14/19 | $19,479 |
| UiPath, Inc. Series B2 | 6/14/19 | $97,041 |
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 | $297,020 |
| Fidelity Securities Lending Cash Central Fund | 351,958 |
| Total | $648,978 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable. Amount for Fidelity Securities Lending Cash Central Fund 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.
Investment Valuation
The following is a summary of the inputs used, as of July 31, 2019, 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 below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| Valuation Inputs at Reporting Date: | ||||
| Description | Total | Level 1 | Level 2 | Level 3 |
| Investments in Securities: | ||||
| Equities: | ||||
| Communication Services | $399,660,892 | $386,204,829 | $13,456,063 | $-- |
| Consumer Discretionary | 528,447,722 | 522,129,093 | 3,468,806 | 2,849,823 |
| Consumer Staples | 77,136,175 | 62,989,569 | 271,689 | 13,874,917 |
| Energy | 11,925,528 | 6,251,205 | 5,674,323 | -- |
| Financials | 21,940,438 | 20,149,527 | 1,790,911 | -- |
| Health Care | 275,846,673 | 271,985,072 | 2,656,552 | 1,205,049 |
| Industrials | 105,675,073 | 89,597,745 | 16,077,328 | -- |
| Information Technology | 823,421,199 | 819,274,471 | -- | 4,146,728 |
| Materials | 21,881,415 | 21,881,415 | -- | -- |
| Real Estate | 4,019,919 | 1,350,324 | -- | 2,669,595 |
| Utilities | 255,768 | 255,768 | -- | -- |
| Money Market Funds | 81,114,630 | 81,114,630 | -- | -- |
| Total Investments in Securities: | $2,351,325,432 | $2,283,183,648 | $43,395,672 | $24,746,112 |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value:
| Investments in Securities: | |
| Beginning Balance | $23,490,491 |
| Net Realized Gain (Loss) on Investment Securities | -- |
| Net Unrealized Gain (Loss) on Investment Securities | 10,343,315 |
| Cost of Purchases | 9,807,002 |
| Proceeds of Sales | (18,894,696) |
| Amortization/Accretion | -- |
| Transfers into Level 3 | -- |
| Transfers out of Level 3 | -- |
| Ending Balance | $24,746,112 |
| The change in unrealized gain (loss) for the period attributable to Level 3 securities held at July 31, 2019 | $11,108,955 |
The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations.
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
| United States of America | 88.8% |
| Cayman Islands | 3.0% |
| Bermuda | 2.6% |
| Netherlands | 1.6% |
| Canada | 1.2% |
| Others (Individually Less Than 1%) | 2.8% |
| 100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
| July 31, 2019 | ||
| Assets | ||
| Investment in securities, at value (including securities loaned of $59,057,191) — See accompanying schedule: Unaffiliated issuers (cost $1,860,462,346) | $2,270,210,802 | |
| Fidelity Central Funds (cost $81,114,630) | 81,114,630 | |
| Total Investment in Securities (cost $1,941,576,976) | $2,351,325,432 | |
| Foreign currency held at value (cost $255) | 255 | |
| Receivable for investments sold | 10,943,101 | |
| Receivable for fund shares sold | 1,239,287 | |
| Dividends receivable | 497,069 | |
| Distributions receivable from Fidelity Central Funds | 95,955 | |
| Other receivables | 11,426 | |
| Total assets | 2,364,112,525 | |
| Liabilities | ||
| Payable to custodian bank | $87,604 | |
| Payable for investments purchased | ||
| Regular delivery | 10,606,249 | |
| Delayed delivery | 254,015 | |
| Payable for fund shares redeemed | 1,139,324 | |
| Accrued management fee | 865,635 | |
| Collateral on securities loaned | 60,922,982 | |
| Total liabilities | 73,875,809 | |
| Net Assets | $2,290,236,716 | |
| Net Assets consist of: | ||
| Paid in capital | $1,944,552,310 | |
| Total distributable earnings (loss) | 345,684,406 | |
| Net Assets, for 167,349,642 shares outstanding | $2,290,236,716 | |
| Net Asset Value, offering price and redemption price per share ($2,290,236,716 ÷ 167,349,642 shares) | $13.69 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| Year ended July 31, 2019 | ||
| Investment Income | ||
| Dividends | $14,252,926 | |
| Income from Fidelity Central Funds (including $351,958 from security lending) | 648,978 | |
| Total income | 14,901,904 | |
| Expenses | ||
| Management fee | $8,455,869 | |
| Independent trustees' fees and expenses | 9,846 | |
| Interest | 2,716 | |
| Commitment fees | 4,873 | |
| Total expenses before reductions | 8,473,304 | |
| Expense reductions | (42,631) | |
| Total expenses after reductions | 8,430,673 | |
| Net investment income (loss) | 6,471,231 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | (52,912,430) | |
| Fidelity Central Funds | 745 | |
| Foreign currency transactions | (26,750) | |
| Total net realized gain (loss) | (52,938,435) | |
| Change in net unrealized appreciation (depreciation) on: | ||
| Investment securities: | ||
| Unaffiliated issuers (net of decrease in deferred foreign taxes of $75,540) | 203,303,585 | |
| Assets and liabilities in foreign currencies | (6,761) | |
| Total change in net unrealized appreciation (depreciation) | 203,296,824 | |
| Net gain (loss) | 150,358,389 | |
| Net increase (decrease) in net assets resulting from operations | $156,829,620 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Year ended July 31, 2019 | Year ended July 31, 2018 | |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $6,471,231 | $4,595,244 |
| Net realized gain (loss) | (52,938,435) | (14,265,282) |
| Change in net unrealized appreciation (depreciation) | 203,296,824 | 207,757,843 |
| Net increase (decrease) in net assets resulting from operations | 156,829,620 | 198,087,805 |
| Distributions to shareholders | (7,070,490) | – |
| Distributions to shareholders from net investment income | – | (737,285) |
| Distributions to shareholders from net realized gain | – | (113,428) |
| Total distributions | (7,070,490) | (850,713) |
| Share transactions | ||
| Proceeds from sales of shares | 912,565,199 | 1,506,071,314 |
| Reinvestment of distributions | 7,070,490 | 850,713 |
| Cost of shares redeemed | (459,202,456) | (204,338,016) |
| Net increase (decrease) in net assets resulting from share transactions | 460,433,233 | 1,302,584,011 |
| Total increase (decrease) in net assets | 610,192,363 | 1,499,821,103 |
| Net Assets | ||
| Beginning of period | 1,680,044,353 | 180,223,250 |
| End of period | $2,290,236,716 | $1,680,044,353 |
| Other Information | ||
| Undistributed net investment income end of period | $3,740,420 | |
| Shares | ||
| Sold | 72,428,803 | 130,929,525 |
| Issued in reinvestment of distributions | 568,533 | 75,151 |
| Redeemed | (37,024,976) | (17,090,266) |
| Net increase (decrease) | 35,972,360 | 113,914,410 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Blue Chip Growth K6 Fund
| Years ended July 31, | 2019 | 2018 | 2017 A |
| Selected Per–Share Data | |||
| Net asset value, beginning of period | $12.79 | $10.32 | $10.00 |
| Income from Investment Operations | |||
| Net investment income (loss)B | .04 | .05C | –D |
| Net realized and unrealized gain (loss) | .91 | 2.44 | .32 |
| Total from investment operations | .95 | 2.49 | .32 |
| Distributions from net investment income | (.05) | (.01) | – |
| Distributions from net realized gain | – | –D | – |
| Total distributions | (.05) | (.02)E | – |
| Net asset value, end of period | $13.69 | $12.79 | $10.32 |
| Total ReturnF,G | 7.48% | 24.10% | 3.20% |
| Ratios to Average Net AssetsH,I | |||
| Expenses before reductions | .45% | .45% | .45%J |
| Expenses net of fee waivers, if any | .45% | .45% | .45%J |
| Expenses net of all reductions | .45% | .45% | .45%J |
| Net investment income (loss) | .34% | .45%C | (.24)%J |
| Supplemental Data | |||
| Net assets, end of period (000 omitted) | $2,290,237 | $1,680,044 | $180,223 |
| Portfolio turnover rateK | 51%L | 40%L | 3%L,M |
A For the period May 25, 2017 (commencement of operations) to July 31, 2017.
B Calculated based on average shares outstanding during the period.
C Net investment income per share reflects a large, non-recurring dividend which amounted to $.02 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .29%.
D Amount represents less than $.005 per share.
E Total distributions of $.02 per share is comprised of distributions from net investment income of $.013 and distributions from net realized gain of $.002 per share.
F Total returns for periods of less than one year are not annualized.
G Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
H 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.
I Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
J Annualized
K Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
L Portfolio turnover rate excludes securities received or delivered in-kind.
M Amount not annualized.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended July 31, 2019
1. Organization.
Fidelity Blue Chip Growth K6 Fund (the Fund) is a fund of Fidelity Securities Fund (the Trust) and is authorized to issue an unlimited number of shares. Share transactions on the Statement of Changes in Net Assets may contain exchanges between affiliated funds. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. Shares generally are available only to employer-sponsored retirement plans that are recordkept by Fidelity, or to certain employer-sponsored retirement plans that are not recordkept by Fidelity.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date ranged from less than .005% to .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investments Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy. Equity securities, including restricted securities, for which observable inputs are not available are valued using alternate valuation approaches, including the market approach and the income approach and are categorized as Level 3 in the hierarchy. The market approach generally consists of using comparable market transactions while the income approach generally consists of using the net present value of estimated future cash flows, adjusted as appropriate for liquidity, credit, market and/or other risk factors.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
The following provides information on Level 3 securities held by the Fund that were valued at period end based on unobservable inputs. These amounts exclude valuations provided by a broker.
| Asset Type | Fair Value | Valuation Technique(s) | Unobservable Input | Amount or Range/Weighted Average | Impact to Valuation from an Increase in Input(a) |
| Equities | $24,746,112 | Market comparable | Enterprise value/Sales multiple (EV/S) | 1.0 - 11.5 / 5.2 | Increase |
| Transaction price | $0.77 - $9.15 / $3.17 | Increase | |||
| Discount rate | 6.0% - 57.2% / 11.9% | Decrease | |||
| Premium rate | 15.5% | Increase | |||
| Proxy discount | 0.6% | Decrease | |||
| Discount for lack of marketability | 10.0% | Decrease | |||
| Liquidity preference | $19.60 | Increase | |||
| Market approach | Transaction price | $0.24 - $417.90 / $179.30 | Increase | ||
| Conversion ratio | 1.0 | Increase |
(a) Represents the directional change in the fair value of the Level 3 investments that could have resulted from an increase in the corresponding input as of period end. A decrease to the unobservable input would have had the opposite effect. Significant changes in these inputs may have resulted in a significantly higher or lower fair value measurement at period end.
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 July 31, 2019, as well as a roll forward of Level 3 investments, is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. 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 U.S. Federal income taxes is required. As of July 31, 2019, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), partnerships, capital loss carryforwards and losses deferred due to wash sales.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
| Gross unrealized appreciation | $446,498,124 |
| Gross unrealized depreciation | (45,753,783) |
| Net unrealized appreciation (depreciation) | $400,744,341 |
| Tax Cost | $1,950,581,091 |
The tax-based components of distributable earnings as of period end were as follows:
| Undistributed ordinary income | $3,697,845 |
| Capital loss carryforward | $(58,753,961) |
| Net unrealized appreciation (depreciation) on securities and other investments | $400,740,523 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of fiscal period end and is subject to adjustment.
| No expiration | |
| Short-term | $(53,083,216) |
| Long-term | (5,670,745) |
| Total capital loss carryforward | $(58,753,961) |
The tax character of distributions paid was as follows:
| July 31, 2019 | July 31, 2018 | |
| Ordinary Income | $7,070,490 | $ 850,713 |
Delayed Delivery Transactions and When-Issued Securities. During the period, the Fund transacted in securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. The securities purchased on a delayed delivery or when-issued basis are identified as such in the Fund's Schedule of Investments. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
Consolidated Subsidiary. The Fund invests in certain investments through a wholly-owned subsidiary ("Subsidiary"), which may be subject to federal and state taxes upon disposition.
As of period end, the Fund held an investment of $407,679 in this Subsidiary, representing .02% of the Fund's net assets. The financial statements have been consolidated and include accounts of the Fund and the Subsidiary. Accordingly, all inter-company transactions and balances have been eliminated.
New Rule Issuance. During August 2018, the U.S. Securities and Exchange Commission issued Final Rule Release No. 33-10532, Disclosure Update and Simplification. This Final Rule includes amendments specific to registered investment companies that are intended to eliminate overlap in disclosure requirements between Regulation S-X and GAAP. In accordance with these amendments, certain line-items in the Fund's financial statements have been combined or removed for the current period as outlined in the table below.
| Financial Statement | Current Line-Item Presentation (As Applicable) | Prior Line-Item Presentation (As Applicable) |
| Statement of Assets and Liabilities | Total distributable earnings (loss) | Undistributed/Distributions in excess of/Accumulated net investment income (loss) Accumulated/Undistributed net realized gain (loss) Net unrealized appreciation (depreciation) |
| Statement of Changes in Net Assets | N/A - removed | Undistributed/Distributions in excess of/Accumulated net investment income (loss) end of period |
| Statement of Changes in Net Assets | Distributions to shareholders | Distributions to shareholders from net investment income Distributions to shareholders from net realized gain |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and in-kind transactions, aggregated $1,019,908,244 and $937,380,381, respectively.
Unaffiliated Exchanges In-Kind. During the period, the Fund received investments and cash valued at $393,959,653 in exchange for 30,892,923 shares of the Fund. The amount of in-kind exchanges is included in share transactions in the accompanying Statement of Changes in Net Assets.
Prior Fiscal Year Unaffiliated Exchanges In-Kind. During the prior period, the Fund received investments and cash valued at $1,068,331,023 in exchange for 93,987,183 shares of the Fund. The amount of in-kind exchanges is included in share transactions in the accompanying Statement of Changes in Net Assets.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee that is based on an annual rate of .45% of average net assets. Under the management contract, the investment adviser or an affiliate pays all other expenses of the Fund, excluding fees and expenses of the independent Trustees, and certain miscellaneous expenses such as proxy and shareholder meeting expenses.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $22,423 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with Fidelity Management & Research Company (FMR) or other affiliated entities of FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
| Borrower or Lender | Average Loan Balance | Weighted Average Interest Rate | Interest Expense |
| Borrower | $18,412,500 | 2.65% | $2,716 |
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $4,873 and is reflected in Commitment fees on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. For equity securities, lending agents are used, including National Financial Services (NFS), an affiliate of the Fund. Pursuant to a securities lending agreement, NFS will receive a fee, which is capped at 9.9% of daily lending revenue, for its services as lending agent. The Fund may lend securities to certain qualified borrowers, including NFS. 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. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. At period end, there were no security loans outstanding with NFS, as affiliated borrower. Total fees paid by the Fund to NFS, as lending agent, amounted to $3,827. 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 $6,873 from securities loaned to NFS, as affiliated borrower.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $40,985 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's expenses by $1,646.
9. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Securities Fund and Shareholders of Fidelity Blue Chip Growth K6 Fund:
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statement of assets and liabilities of Fidelity Blue Chip Growth K6 Fund (the "Fund"), a fund of Fidelity Securities Fund, including the schedule of investments, as of July 31, 2019, the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the two years in the period then ended and for the period from May 25, 2017 (commencement of operations) to July 31, 2017, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of July 31, 2019, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the two years in the period then ended and for the period from May 25, 2017 (commencement of operations) to July 31, 2017 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund's financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of July 31, 2019, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/ Deloitte & Touche LLP
Boston, Massachusetts
September 16, 2019
We have served as the auditor of one or more of the Fidelity investment companies since 1999.
Trustees and Officers
The Trustees, Members of the Advisory Board (if any), and officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Except for Jonathan Chiel, each of the Trustees oversees 298 funds. Mr. Chiel oversees 170 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the fund is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund’s Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-835-5092.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Board Structure and Oversight Function. James C. Curvey is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Ned C. Lautenbach serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and other equity funds. The asset allocation funds may invest in Fidelity® funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Jonathan Chiel (1957)
Year of Election or Appointment: 2016
Trustee
Mr. Chiel also serves as Trustee of other Fidelity® funds. Mr. Chiel is Executive Vice President and General Counsel for FMR LLC (diversified financial services company, 2012-present). Previously, Mr. Chiel served as general counsel (2004-2012) and senior vice president and deputy general counsel (2000-2004) for John Hancock Financial Services; a partner with Choate, Hall & Stewart (1996-2000) (law firm); and an Assistant United States Attorney for the United States Attorney’s Office of the District of Massachusetts (1986-95), including Chief of the Criminal Division (1993-1995). Mr. Chiel is a director on the boards of the Boston Bar Foundation and the Maimonides School.
James C. Curvey (1935)
Year of Election or Appointment: 2007
Trustee
Chairman of the Board of Trustees
Mr. Curvey also serves as Trustee of other Fidelity® funds. Mr. Curvey is Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey is an Overseer Emeritus for the Boston Symphony Orchestra, a Director of Artis-Naples, and a Trustee of Brewster Academy in Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-2018), Director of Fidelity Investments Money Management, Inc. (investment adviser firm, 2009-2014) and a Director of FMR and FMR Co., Inc. (investment adviser firms, 2007-2014).
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), as a member of the Independent Directors Council (IDC) Governing Council (2010-2015), and as a member of the Board of Directors for The Brookville Center for Children’s Services, Inc. (2009-2017). Mr. Dirks is a member of the Finance Committee (2016-present) and Board of Directors (2017-present) and is Treasurer (2018-present) of the Asolo Repertory Theatre.
Donald F. Donahue (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Donahue also serves as a Trustee of other Fidelity® funds. Mr. Donahue is President and Chief Executive Officer of Miranda Partners, LLC (risk consulting for the financial services industry, 2012-present). Previously, Mr. Donahue served as a Member of the Advisory Board of certain Fidelity® funds (2015-2018) and Chief Executive Officer (2006-2012), Chief Operating Officer (2003-2006), and Managing Director, Customer Marketing and Development (1999-2003) of The Depository Trust & Clearing Corporation (financial markets infrastructure). Mr. Donahue serves as a Member (2007-present) and Co-Chairman (2016-present) of the Board of Directors of United Way of New York, Member of the Board of Directors of NYC Leadership Academy (2012-present) and Member of the Board of Advisors of Ripple Labs, Inc. (financial services, 2015-present). He also served as Chairman (2010-2012) and Member of the Board of Directors (2012-2013) of Omgeo, LLC (financial services), Treasurer of United Way of New York (2012-2016), and Member of the Board of Directors of XBRL US (financial services non-profit, 2009-2012) and the International Securities Services Association (2009-2012).
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2014-2017) and a member (2010-2017) of the Board of Directors of Dave & Buster’s Entertainment, Inc. (restaurant and entertainment complexes), as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association, and as a member of the Board of Directors for The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), Earth Fare, Inc. (retail grocery, 2010-2014), and The Western Union Company (global money transfer, 2006-2011).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as Chair (2018-present) and Member (2013-present) of the Board of Governors, State University System of Florida and is a member of the Council on Foreign Relations (1994-present). He is also a member and has most recently served as Chairman of the Board of Directors of Artis-Naples (2012-present). Previously, Mr. Lautenbach served as a member and then Lead Director of the Board of Directors of Eaton Corporation (diversified industrial, 1997-2016). He was also a Partner and Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007). In addition, Mr. Lautenbach also had a 30-year career with IBM (technology company) during which time he served as Senior Vice President and a member of the Corporate Executive Committee (1968-1998).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-2018).
Cornelia M. Small (1944)
Year of Election or Appointment: 2005
Trustee
Ms. Small also serves as Trustee of other Fidelity® funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.
Garnett A. Smith (1947)
Year of Election or Appointment: 2018
Trustee
Mr. Smith also serves as Trustee of other Fidelity® funds. Prior to Mr. Smith's retirement, he served as Chairman and Chief Executive Officer of Inbrand Corp. (manufacturer of personal absorbent products, 1990-1997). He also served as President (1986-1990) of Inbrand Corp. Prior to his employment with Inbrand Corp., he was employed by a retail fabric chain and North Carolina National Bank. In addition, Mr. Smith served as a Member of the Advisory Board of certain Fidelity® funds (2012-2013) and as a board member of the Jackson Hole Land Trust (2009-2012).
David M. Thomas (1949)
Year of Election or Appointment: 2008
Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present) and as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), a Director of Fortune Brands, Inc. (consumer products, 2000-2011), and a member of the Board of Trustees of the University of Florida (2013-2018).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Advisory Board Members and Officers:
Correspondence intended for a Member of the Advisory Board (if any) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235. Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Vicki L. Fuller (1957)
Year of Election or Appointment: 2018
Member of the Advisory Board
Ms. Fuller also serves as Member of the Advisory Board of other Fidelity® funds. Ms. Fuller serves as a member of the Board of Directors, Audit Committee, and Nominating and Governance Committee of The Williams Companies, Inc. (natural gas infrastructure, 2018-present). Previously, Ms. Fuller served as the Chief Investment Officer of the New York State Common Retirement Fund (2012-2018) and held a variety of positions at AllianceBernstein L.P. (global asset management, 1985-2012), including Managing Director (2006-2012) and Senior Vice President and Senior Portfolio Manager (2001-2006).
Peter S. Lynch (1944)
Year of Election or Appointment: 2003
Member of the Advisory Board
Mr. Lynch also serves as Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of FMR (investment adviser firm) and FMR Co., Inc. (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).
Michael E. Wiley (1950)
Year of Election or Appointment: 2018
Member of the Advisory Board
Mr. Wiley also serves as Trustee or Member of the Advisory Board of other Fidelity® funds. Mr. Wiley serves as a Director of High Point Resources (exploration and production, 2005-present). Previously, Mr. Wiley served as a Director of Andeavor Corporation (independent oil refiner and marketer, 2005-2018), a Director of Andeavor Logistics LP (natural resources logistics, 2015-2018), a Director of Post Oak Bank (privately-held bank, 2004-2018), a Director of Asia Pacific Exploration Consolidated (international oil and gas exploration and production, 2008-2013), a member of the Board of Trustees of the University of Tulsa (2000-2006; 2007-2010), a Senior Energy Advisor of Katzenbach Partners, LLC (consulting, 2006-2007), an Advisory Director of Riverstone Holdings (private investment), a Director of Spinnaker Exploration Company (exploration and production, 2001-2005) and Chairman, President, and CEO of Baker Hughes, Inc. (oilfield services, 2000-2004).
Elizabeth Paige Baumann (1968)
Year of Election or Appointment: 2017
Anti-Money Laundering (AML) Officer
Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer (2012-present) and Senior Vice President (2014-present) of FMR LLC (diversified financial services company) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as AML Officer of the funds (2012-2016), and Vice President (2007-2014) and Deputy Anti-Money Laundering Officer (2007-2012) of FMR LLC.
Craig S. Brown (1977)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Brown also serves as Assistant Treasurer of other funds. Mr. Brown is an employee of Fidelity Investments (2013-present).
John J. Burke III (1964)
Year of Election or Appointment: 2018
Chief Financial Officer
Mr. Burke also serves as Chief Financial Officer of other funds. Mr. Burke serves as Head of Investment Operations for Fidelity Fund and Investment Operations (2018-present) and is an employee of Fidelity Investments (1998-present). Previously Mr. Burke served as head of Asset Management Investment Operations (2012-2018).
William C. Coffey (1969)
Year of Election or Appointment: 2018
Secretary and Chief Legal Officer (CLO)
Mr. Coffey also serves as Secretary and CLO of other funds. Mr. Coffey serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2018-present); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2018-present); and CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2018-present). He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Assistant Secretary of certain funds (2009-2018) and as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Timothy M. Cohen (1969)
Year of Election or Appointment: 2018
Vice President
Mr. Cohen also serves as Vice President of other funds. Mr. Cohen serves as Executive Vice President of Fidelity SelectCo, LLC (2019-present), Co-Head of Equity (2018-present), a Director of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present), and is an employee of Fidelity Investments. Previously, Mr. Cohen served as Head of Global Equity Research (2016-2018), Chief Investment Officer - Equity and a Director of Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2013-2015) and as a Director of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2017).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds. Mr. Davis serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present), and is an employee of Fidelity Investments (2008-present). Previously, Mr. Deberghes served as President and Treasurer of certain Fidelity® funds (2013-2018). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). Previously, Mr. Deberghes served in other fund officer roles.
Laura M. Del Prato (1964)
Year of Election or Appointment: 2018
Assistant Treasurer
Ms. Del Prato also serves as an officer of other funds. Ms. Del Prato is an employee of Fidelity Investments (2017-present). Prior to joining Fidelity Investments, Ms. Del Prato served as a Managing Director and Treasurer of the JPMorgan Mutual Funds (2014-2017). Prior to JPMorgan, Ms. Del Prato served as a partner at Cohen Fund Audit Services (accounting firm, 2012-2013) and KPMG LLP (accounting firm, 2004-2012).
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2005-present). Previously, Mr. Hogan served as Assistant Treasurer of certain Fidelity® funds (2016-2018).
Pamela R. Holding (1964)
Year of Election or Appointment: 2018
Vice President
Ms. Holding also serves as Vice President of other funds. Ms. Holding serves as Executive Vice President of Fidelity SelectCo, LLC (2019-present), Co-Head of Equity (2018-present) and is an employee of Fidelity Investments (2013-present). Previously, Ms. Holding served as Chief Investment Officer of Fidelity Institutional Asset Management (2013-2018).
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight, serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. Ms. Smith serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), is an employee of Fidelity Investments (2009-present), and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Assistant Treasurer (2013-2018) and Deputy Treasurer (2013-2016) of certain Fidelity® funds.
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
Jim Wegmann (1979)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Wegmann also serves as Assistant Treasurer of other funds. Mr. Wegmann is an employee of Fidelity Investments (2011-present).
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (February 1, 2019 to July 31, 2019).
Actual Expenses
The first line of the accompanying table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. 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.
| Annualized Expense Ratio-A | Beginning Account Value February 1, 2019 | Ending Account Value July 31, 2019 | Expenses Paid During Period-B February 1, 2019 to July 31, 2019 | |
| Actual | .45% | $1,000.00 | $1,123.10 | $2.37 |
| Hypothetical-C | $1,000.00 | $1,022.56 | $2.26 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
C 5% return per year before expenses
Distributions (Unaudited)
The Board of Trustees of Fidelity Blue Chip Growth K6 Fund voted to pay on September 16, 2019, to shareholders of record at the opening of business on September 13, 2019, a distribution of $0.004 per share derived from capital gains realized from sales of portfolio securities and a dividend of $0.019 per share from net investment income.
The fund designates 100% of the dividends distributed during the fiscal year as qualifying for the dividends–received deduction for corporate shareholders.
The fund designates 100% of the dividends distributed during the fiscal year as amounts which may be taken into account as a dividend for the purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code.
The fund will notify shareholders in January 2020 of amounts for use in preparing 2019 income tax returns.
BCFK6-ANN-0919
1.9884007.102
Fidelity® Blue Chip Value Fund Annual Report July 31, 2019 |
|
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of a fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a financial advisor, broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from a fund electronically, by contacting your financial intermediary. For Fidelity customers, visit Fidelity's web site or call Fidelity using the contact information listed below.
You may elect to receive all future reports in paper free of charge. If you wish to continue receiving paper copies of your shareholder reports, you may contact your financial intermediary or, if you are a Fidelity customer, visit Fidelity’s website, or call Fidelity at the applicable toll-free number listed below. Your election to receive reports in paper will apply to all funds held with the fund complex/your financial intermediary.
| Account Type | Website | Phone Number |
| Brokerage, Mutual Fund, or Annuity Contracts: | fidelity.com/mailpreferences | 1-800-343-3548 |
| Employer Provided Retirement Accounts: | netbenefits.fidelity.com/preferences (choose 'no' under Required Disclosures to continue to print) | 1-800-343-0860 |
| Advisor Sold Accounts Serviced Through Your Financial Intermediary: | Contact Your Financial Intermediary | Your Financial Intermediary's phone number |
| Advisor Sold Accounts Serviced by Fidelity: | institutional.fidelity.com | 1-877-208-0098 |
Contents
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2019 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT. Forms N-PORT are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-PORT 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.institutional.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.
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
| For the periods ended July 31, 2019 | Past 1 year | Past 5 years | Past 10 years |
| Fidelity® Blue Chip Value Fund | 0.99% | 6.89% | 9.86% |
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity® Blue Chip Value Fund on July 31, 2009.
The chart shows how the value of your investment would have changed, and also shows how the Russell 1000® Value Index performed over the same period.
| Period Ending Values | ||
| $25,619 | Fidelity® Blue Chip Value Fund | |
| $32,181 | Russell 1000® Value Index | |
Management's Discussion of Fund Performance
Market Recap: The U.S. equity bellwether S&P 500® index gained 7.99% for the 12 months ending July 31, 2019, beginning the new year on a high note after enduring a historically volatile final quarter of 2018. Upbeat company earnings/outlooks and signs the Federal Reserve may pause on rates boosted stocks to an all-time high on April 30. In May, however, volatility spiked and stocks returned -6.35% for the month amid the Fed’s decision to hold interest rates steady and signal that it had little appetite to adjust them any time soon, as well as retaliatory tariffs imposed on the U.S. by China. The downtrend was similar to late 2018, when many investors fled from risk assets on elevated concerns about future economic growth, global trade and tighter monetary policy. The bull market roared back in June, with the S&P 500® rising 7.05%, and recorded a series of all-time highs in a productive July (+1.44%). For the full 12 months, growth stocks outpaced value, while large-caps handily bested small-caps. By sector, information technology (+19%) led the way, boosted by continued strength in software & services (+26%), the market’s largest industry segment. Three defensive groups also stood out – real estate (+18%), utilities (+17%) and consumer staples (+15%) – followed by consumer discretionary (+10%) and communication services (+8%). In contrast, energy (-16%) was by far the weakest sector. Other notable laggards included materials (0%), financials (+3%), industrials (+4%) and health care (+4%).Comments from Portfolio Manager Sean Gavin: For the fiscal year, the fund gained 0.99%, notably trailing the 5.20% increase in the benchmark Russell 1000® Value Index. The fund's main relative performance challenge was subpar security selection, particularly among health care stocks. Conversely, a sizable overweighting in communication services and investment choices within the energy sector contributed most. The fund's biggest individual detractor was an out-of-benchmark stake in British American Tobacco, whose stock returned -39% in the fund before I sold it from the portfolio in January. Another position that weighed on the fund's relative result was PVH (-42%), a leading global apparel company that owns well-known brands like Tommy Hilfiger and Calvin Klein. The company struggled due to investors' apparent concern about the health of the retail industry and especially department stores – the main sales outlet for PVH's products. Another crucial detractor was the fund's out-of-benchmark holding in Bayer, a German pharmaceutical and life sciences company whose stock returned -44% in the fund before I fully liquidated the position in March. Not owning strong-performing benchmark component Procter & Gamble (+50%) also hurt the past 12 months. On the positive side, chocolate manufacturer Hershey (+58%) was the portfolio's leading contributor after reporting good financial results during the period. Another stock that aided performance was Disney (+32%), whose shares in the fund rose partly due to investors' apparent optimism about the media company's forthcoming video-streaming network. Lastly, it also helped to hold cable and media company Comcast (+23%), which, along with Disney, was one of the fund's largest holdings as of July 31.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Investment Summary (Unaudited)
Top Ten Stocks as of July 31, 2019
| % of fund's net assets | |
| Comcast Corp. Class A | 5.5 |
| Cigna Corp. | 5.3 |
| Berkshire Hathaway, Inc. Class B | 4.9 |
| UnitedHealth Group, Inc. | 4.2 |
| The Walt Disney Co. | 4.0 |
| Exxon Mobil Corp. | 3.7 |
| Roche Holding AG (participation certificate) | 3.5 |
| Wells Fargo & Co. | 3.3 |
| CBRE Group, Inc. | 3.3 |
| Celgene Corp. | 2.9 |
| 40.6 |
Top Five Market Sectors as of July 31, 2019
| % of fund's net assets | |
| Financials | 28.3 |
| Health Care | 23.3 |
| Communication Services | 11.3 |
| Energy | 9.0 |
| Consumer Staples | 7.2 |
Asset Allocation (% of fund's net assets)
| As of July 31, 2019* | ||
| Stocks | 96.8% | |
| Short-Term Investments and Net Other Assets (Liabilities) | 3.2% | |
* Foreign investments - 17.5%
Schedule of Investments July 31, 2019
Showing Percentage of Net Assets
| Common Stocks - 96.8% | |||
| Shares | Value | ||
| COMMUNICATION SERVICES - 11.3% | |||
| Entertainment - 4.0% | |||
| The Walt Disney Co. | 132,007 | $18,878,321 | |
| Media - 7.3% | |||
| Comcast Corp. Class A | 612,300 | 26,432,990 | |
| Fox Corp. Class A | 103,133 | 3,848,924 | |
| Interpublic Group of Companies, Inc. | 206,000 | 4,721,520 | |
| 35,003,434 | |||
| TOTAL COMMUNICATION SERVICES | 53,881,755 | ||
| CONSUMER DISCRETIONARY - 3.3% | |||
| Multiline Retail - 2.0% | |||
| Dollar General Corp. | 69,600 | 9,327,792 | |
| Textiles, Apparel & Luxury Goods - 1.3% | |||
| PVH Corp. | 72,200 | 6,420,024 | |
| TOTAL CONSUMER DISCRETIONARY | 15,747,816 | ||
| CONSUMER STAPLES - 7.2% | |||
| Beverages - 2.3% | |||
| C&C Group PLC | 2,411,612 | 10,892,190 | |
| Food Products - 4.9% | |||
| Danone SA | 110,500 | 9,583,992 | |
| The Hershey Co. | 81,000 | 12,290,940 | |
| The J.M. Smucker Co. | 15,100 | 1,678,969 | |
| 23,553,901 | |||
| TOTAL CONSUMER STAPLES | 34,446,091 | ||
| ENERGY - 9.0% | |||
| Energy Equipment & Services - 1.2% | |||
| Baker Hughes, a GE Co. Class A | 222,000 | 5,636,580 | |
| Oil, Gas & Consumable Fuels - 7.8% | |||
| Exxon Mobil Corp. | 240,700 | 17,898,452 | |
| GasLog Partners LP | 296,200 | 6,383,110 | |
| Golar LNG Partners LP | 485,900 | 5,748,197 | |
| Teekay LNG Partners LP | 512,900 | 7,416,534 | |
| 37,446,293 | |||
| TOTAL ENERGY | 43,082,873 | ||
| FINANCIALS - 28.3% | |||
| Banks - 8.2% | |||
| SunTrust Banks, Inc. | 164,200 | 10,935,720 | |
| U.S. Bancorp | 216,797 | 12,389,949 | |
| Wells Fargo & Co. | 325,798 | 15,771,881 | |
| 39,097,550 | |||
| Capital Markets - 2.9% | |||
| Goldman Sachs Group, Inc. | 62,000 | 13,648,060 | |
| Diversified Financial Services - 4.9% | |||
| Berkshire Hathaway, Inc. Class B (a) | 114,900 | 23,603,907 | |
| Insurance - 7.0% | |||
| Chubb Ltd. | 90,400 | 13,816,736 | |
| Prudential PLC | 305,998 | 6,295,675 | |
| The Travelers Companies, Inc. | 91,700 | 13,445,054 | |
| 33,557,465 | |||
| Mortgage Real Estate Investment Trusts - 5.3% | |||
| AGNC Investment Corp. | 605,300 | 10,374,842 | |
| Annaly Capital Management, Inc. | 943,100 | 9,006,605 | |
| MFA Financial, Inc. | 856,200 | 6,147,516 | |
| 25,528,963 | |||
| TOTAL FINANCIALS | 135,435,945 | ||
| HEALTH CARE - 23.3% | |||
| Biotechnology - 3.7% | |||
| Amgen, Inc. | 20,200 | 3,768,916 | |
| Celgene Corp. (a) | 153,400 | 14,091,324 | |
| 17,860,240 | |||
| Health Care Providers & Services - 14.9% | |||
| Anthem, Inc. | 39,600 | 11,666,556 | |
| Centene Corp. (a) | 133,600 | 6,959,224 | |
| Cigna Corp. | 148,200 | 25,182,144 | |
| UnitedHealth Group, Inc. | 80,700 | 20,095,107 | |
| Wellcare Health Plans, Inc. (a) | 25,900 | 7,439,775 | |
| 71,342,806 | |||
| Pharmaceuticals - 4.7% | |||
| Bristol-Myers Squibb Co. | 129,600 | 5,755,536 | |
| Roche Holding AG (participation certificate) | 61,320 | 16,413,230 | |
| 22,168,766 | |||
| TOTAL HEALTH CARE | 111,371,812 | ||
| INDUSTRIALS - 3.8% | |||
| Aerospace & Defense - 1.4% | |||
| United Technologies Corp. | 51,100 | 6,826,960 | |
| Air Freight & Logistics - 2.4% | |||
| C.H. Robinson Worldwide, Inc. | 137,400 | 11,504,502 | |
| TOTAL INDUSTRIALS | 18,331,462 | ||
| INFORMATION TECHNOLOGY - 4.4% | |||
| IT Services - 4.4% | |||
| Amdocs Ltd. | 103,000 | 6,590,970 | |
| Cognizant Technology Solutions Corp. Class A | 135,700 | 8,839,498 | |
| The Western Union Co. | 257,000 | 5,397,000 | |
| 20,827,468 | |||
| REAL ESTATE - 4.5% | |||
| Equity Real Estate Investment Trusts (REITs) - 1.2% | |||
| Simon Property Group, Inc. | 36,400 | 5,904,080 | |
| Real Estate Management & Development - 3.3% | |||
| CBRE Group, Inc. (a) | 291,900 | 15,473,619 | |
| TOTAL REAL ESTATE | 21,377,699 | ||
| UTILITIES - 1.7% | |||
| Electric Utilities - 1.7% | |||
| Exelon Corp. | 180,200 | 8,119,812 | |
| TOTAL COMMON STOCKS | |||
| (Cost $421,544,323) | 462,622,733 | ||
| Money Market Funds - 3.2% | |||
| Fidelity Cash Central Fund 2.43% (b) | |||
| (Cost $15,174,137) | 15,171,207 | 15,174,242 | |
| TOTAL INVESTMENT IN SECURITIES - 100.0% | |||
| (Cost $436,718,460) | 477,796,975 | ||
| NET OTHER ASSETS (LIABILITIES) - 0.0% | (90,934) | ||
| NET ASSETS - 100% | $477,706,041 |
Legend
(a) Non-income producing
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
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 | $480,046 |
| Fidelity Securities Lending Cash Central Fund | 5,761 |
| Total | $485,807 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable. Amount for Fidelity Securities Lending Cash Central Fund 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.
Investment Valuation
The following is a summary of the inputs used, as of July 31, 2019, 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 below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| Valuation Inputs at Reporting Date: | ||||
| Description | Total | Level 1 | Level 2 | Level 3 |
| Investments in Securities: | ||||
| Equities: | ||||
| Communication Services | $53,881,755 | $53,881,755 | $-- | $-- |
| Consumer Discretionary | 15,747,816 | 15,747,816 | -- | -- |
| Consumer Staples | 34,446,091 | 24,862,099 | 9,583,992 | -- |
| Energy | 43,082,873 | 43,082,873 | -- | -- |
| Financials | 135,435,945 | 129,140,270 | 6,295,675 | -- |
| Health Care | 111,371,812 | 94,958,582 | 16,413,230 | -- |
| Industrials | 18,331,462 | 18,331,462 | -- | -- |
| Information Technology | 20,827,468 | 20,827,468 | -- | -- |
| Real Estate | 21,377,699 | 21,377,699 | -- | -- |
| Utilities | 8,119,812 | 8,119,812 | -- | -- |
| Money Market Funds | 15,174,242 | 15,174,242 | -- | -- |
| Total Investments in Securities: | $477,796,975 | $445,504,078 | $32,292,897 | $-- |
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
| United States of America | 82.5% |
| Switzerland | 6.4% |
| Marshall Islands | 4.1% |
| Ireland | 2.3% |
| France | 2.0% |
| Bailiwick of Guernsey | 1.4% |
| United Kingdom | 1.3% |
| 100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
| July 31, 2019 | ||
| Assets | ||
| Investment in securities, at value — See accompanying schedule: Unaffiliated issuers (cost $421,544,323) | $462,622,733 | |
| Fidelity Central Funds (cost $15,174,137) | 15,174,242 | |
| Total Investment in Securities (cost $436,718,460) | $477,796,975 | |
| Receivable for fund shares sold | 259,048 | |
| Dividends receivable | 240,175 | |
| Distributions receivable from Fidelity Central Funds | 33,539 | |
| Prepaid expenses | 1,199 | |
| Other receivables | 203,247 | |
| Total assets | 478,534,183 | |
| Liabilities | ||
| Payable for fund shares redeemed | $510,537 | |
| Accrued management fee | 183,446 | |
| Audit fee | 46,329 | |
| Transfer agent fee payable | 69,882 | |
| Other affiliated payables | 15,573 | |
| Other payables and accrued expenses | 2,375 | |
| Total liabilities | 828,142 | |
| Net Assets | $477,706,041 | |
| Net Assets consist of: | ||
| Paid in capital | $452,690,214 | |
| Total distributable earnings (loss) | 25,015,827 | |
| Net Assets, for 24,235,719 shares outstanding | $477,706,041 | |
| Net Asset Value, offering price and redemption price per share ($477,706,041 ÷ 24,235,719 shares) | $19.71 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| Year ended July 31, 2019 | ||
| Investment Income | ||
| Dividends | $9,740,404 | |
| Income from Fidelity Central Funds (including $5,761 from security lending) | 485,807 | |
| Total income | 10,226,211 | |
| Expenses | ||
| Management fee | ||
| Basic fee | $2,376,652 | |
| Performance adjustment | (627,506) | |
| Transfer agent fees | 828,648 | |
| Accounting and security lending fees | 171,793 | |
| Custodian fees and expenses | 8,705 | |
| Independent trustees' fees and expenses | 2,362 | |
| Registration fees | 51,356 | |
| Audit | 59,887 | |
| Legal | 4,760 | |
| Miscellaneous | 2,472 | |
| Total expenses before reductions | 2,879,129 | |
| Expense reductions | (22,564) | |
| Total expenses after reductions | 2,856,565 | |
| Net investment income (loss) | 7,369,646 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | (18,059,598) | |
| Fidelity Central Funds | 2,087 | |
| Foreign currency transactions | 7,525 | |
| Futures contracts | 1,417,207 | |
| Total net realized gain (loss) | (16,632,779) | |
| Change in net unrealized appreciation (depreciation) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | 22,418,824 | |
| Fidelity Central Funds | 297 | |
| Assets and liabilities in foreign currencies | 97 | |
| Futures contracts | (239,033) | |
| Total change in net unrealized appreciation (depreciation) | 22,180,185 | |
| Net gain (loss) | 5,547,406 | |
| Net increase (decrease) in net assets resulting from operations | $12,917,052 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Year ended July 31, 2019 | Year ended July 31, 2018 | |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $7,369,646 | $5,320,621 |
| Net realized gain (loss) | (16,632,779) | 54,723,253 |
| Change in net unrealized appreciation (depreciation) | 22,180,185 | (34,732,263) |
| Net increase (decrease) in net assets resulting from operations | 12,917,052 | 25,311,611 |
| Distributions to shareholders | (7,544,165) | – |
| Distributions to shareholders from net investment income | – | (4,465,976) |
| Distributions to shareholders from net realized gain | – | (81,343) |
| Total distributions | (7,544,165) | (4,547,319) |
| Share transactions | ||
| Proceeds from sales of shares | 199,999,548 | 65,621,638 |
| Reinvestment of distributions | 6,832,544 | 4,381,389 |
| Cost of shares redeemed | (128,002,430) | (109,494,133) |
| Net increase (decrease) in net assets resulting from share transactions | 78,829,662 | (39,491,106) |
| Total increase (decrease) in net assets | 84,202,549 | (18,726,814) |
| Net Assets | ||
| Beginning of period | 393,503,492 | 412,230,306 |
| End of period | $477,706,041 | $393,503,492 |
| Other Information | ||
| Undistributed net investment income end of period | $1,761,720 | |
| Shares | ||
| Sold | 10,886,053 | 3,406,839 |
| Issued in reinvestment of distributions | 358,609 | 233,439 |
| Redeemed | (6,786,952) | (5,729,568) |
| Net increase (decrease) | 4,457,710 | (2,089,290) |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Blue Chip Value Fund
| Years ended July 31, | 2019 | 2018 | 2017 | 2016 | 2015 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $19.90 | $18.85 | $16.19 | $16.88 | $15.22 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .32 | .26 | .18 | .19 | .35B |
| Net realized and unrealized gain (loss) | (.14)C,D | 1.01 | 2.66 | (.59) | 1.54 |
| Total from investment operations | .18 | 1.27 | 2.84 | (.40) | 1.89 |
| Distributions from net investment income | (.29) | (.21) | (.18) | (.28) | (.23) |
| Distributions from net realized gain | (.09) | –E | – | (.01) | – |
| Total distributions | (.37)F | (.22)G | (.18) | (.29) | (.23) |
| Net asset value, end of period | $19.71 | $19.90 | $18.85 | $16.19 | $16.88 |
| Total ReturnH | .99%D | 6.79% | 17.68% | (2.31)% | 12.52% |
| Ratios to Average Net AssetsI,J | |||||
| Expenses before reductions | .65% | .70% | .79% | .88% | .82% |
| Expenses net of fee waivers, if any | .65% | .70% | .79% | .88% | .82% |
| Expenses net of all reductions | .65% | .70% | .78% | .88% | .82% |
| Net investment income (loss) | 1.67% | 1.34% | 1.04% | 1.23% | 2.15%B |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $477,706 | $393,503 | $412,230 | $457,177 | $410,968 |
| Portfolio turnover rateK | 44% | 45% | 32% | 54% | 138% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $.13 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.35%.
C The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund.
D Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.02 per share. Excluding these litigation proceeds, the total return would have been .91%
E Amount represents less than $.005 per share.
F Total distributions of $.37 per share is comprised of distributions from net investment income of $.285 and distributions from net realized gain of $.087 per share.
G Total distributions of $.22 per share is comprised of distributions from net investment income of $.213 and distributions from net realized gain of $.004 per share.
H Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
I 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.
J Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
K Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended July 31, 2019
1. Organization.
Fidelity Blue Chip Value Fund (the Fund) is a fund of Fidelity Securities Fund (the Trust) and is authorized to issue an unlimited number of shares. Share transactions on the Statement of Changes in Net Assets may contain exchanges between affiliated funds. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date ranged from less than .005% to .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investments Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of July 31, 2019 is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. 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 U.S. Federal income taxes is required. As of July 31, 2019, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to futures contracts, foreign currency transactions, partnerships, capital loss carryforwards and losses deferred due to wash sales.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
| Gross unrealized appreciation | $52,083,457 |
| Gross unrealized depreciation | (15,298,858) |
| Net unrealized appreciation (depreciation) | $36,784,599 |
| Tax Cost | $441,012,376 |
The tax-based components of distributable earnings as of period end were as follows:
| Undistributed ordinary income | $4,998,557 |
| Capital loss carryforward | $(16,326,478) |
| Net unrealized appreciation (depreciation) on securities and other investments | $36,343,747 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of fiscal period end and is subject to adjustment.
| Fiscal year of expiration | |
| No expiration | |
| Short-term | $(1,290,531) |
| Long-term | (15,035,947) |
| Total capital loss carryforward | $(16,326,478) |
The tax character of distributions paid was as follows:
| July 31, 2019 | July 31, 2018 | |
| Ordinary Income | $5,834,651 | $ 4,547,319 |
| Long-term Capital Gains | 1,709,514 | – |
| Total | $7,544,165 | $ 4,547,319 |
New Rule Issuance. During August 2018, the U.S. Securities and Exchange Commission issued Final Rule Release No. 33-10532, Disclosure Update and Simplification. This Final Rule includes amendments specific to registered investment companies that are intended to eliminate overlap in disclosure requirements between Regulation S-X and GAAP. In accordance with these amendments, certain line-items in the Fund's financial statements have been combined or removed for the current period as outlined in the table below.
| Financial Statement | Current Line-Item Presentation (As Applicable) | Prior Line-Item Presentation (As Applicable) |
| Statement of Assets and Liabilities | Total distributable earnings (loss) | Undistributed/Distributions in excess of/Accumulated net investment income (loss) Accumulated/Undistributed net realized gain (loss) Net unrealized appreciation (depreciation) |
| Statement of Changes in Net Assets | N/A - removed | Undistributed/Distributions in excess of/Accumulated net investment income (loss) end of period |
| Statement of Changes in Net Assets | Distributions to shareholders | Distributions to shareholders from net investment income Distributions to shareholders from net realized gain |
4. Derivative Instruments.
Risk Exposures and the Use of Derivative Instruments. The Fund's investment objective allows the Fund to enter into various types of derivative contracts, including futures contracts. Derivatives are investments whose value is primarily derived from underlying assets, indices or reference rates and may be transacted on an exchange or over-the-counter (OTC). Derivatives may involve a future commitment to buy or sell a specified asset based on specified terms, to exchange future cash flows at periodic intervals based on a notional principal amount, or for one party to make one or more payments upon the occurrence of specified events in exchange for periodic payments from the other party.
The Fund primarily used derivatives to increase returns and to manage exposure to certain risks as defined below. The success of any strategy involving derivatives depends on analysis of numerous economic factors, and if the strategies for investment do not work as intended, the Fund may not achieve its objectives.
The Fund's use of derivatives increased or decreased its exposure to the following risk:
| Equity Risk | Equity risk relates to the fluctuations in the value of financial instruments as a result of changes in market prices (other than those arising from interest rate risk or foreign exchange risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment. |
The Fund is also exposed to additional risks from investing in derivatives, such as liquidity risk and counterparty credit risk. Liquidity risk is the risk that the Fund will be unable to close out the derivative in the open market in a timely manner. Counterparty credit risk is the risk that the counterparty will not be able to fulfill its obligation to the Fund. Counterparty credit risk related to exchange-traded futures contracts may be mitigated by the protection provided by the exchange on which they trade.
Investing in derivatives may involve greater risks than investing in the underlying assets directly and, to varying degrees, may involve risk of loss in excess of any initial investment and collateral received and amounts recognized in the Statement of Assets and Liabilities. In addition, there may be the risk that the change in value of the derivative contract does not correspond to the change in value of the underlying instrument.
Futures Contracts. A futures contract is an agreement between two parties to buy or sell a specified underlying instrument for a fixed price at a specified future date. The Fund used futures contracts to manage its exposure to the stock market.
Upon entering into a futures contract, a fund is required to deposit either cash or securities (initial margin) with a clearing broker in an amount equal to a certain percentage of the face value of the contract. Futures contracts are marked-to-market daily and subsequent daily payments (variation margin) are made or received by a fund depending on the daily fluctuations in the value of the futures contracts and are recorded as unrealized appreciation or (depreciation). This receivable and/or payable, if any, is included in daily variation margin on futures contracts in the Statement of Assets and Liabilities. Realized gain or (loss) is recorded upon the expiration or closing of a futures contract. The net realized gain (loss) and change in net unrealized appreciation (depreciation) on futures contracts during the period is presented in the Statement of Operations.
Any open futures contracts at period end are presented in the Schedule of Investments under the caption "Futures Contracts". The notional amount at value reflects each contract's exposure to the underlying instrument or index at period end. For the period, the average monthly notional amount at value for futures contracts in the aggregate was $3,132,292.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $300,431,112 and $186,489,415, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .24% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of +/- .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the Fund's relative investment performance as compared to its benchmark index, the Russell 1000 Value Index, over the same 36 month performance period. For the reporting period, the total annual management fee rate, including the performance adjustment, was .40% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of the investment adviser, is the Fund's transfer, dividend disbursing and shareholder servicing agent. FIIOC receives account fees and asset-based fees that vary according to account size and type of account. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the transfer agent fees were equivalent to an annual rate of .19% of average net assets.
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Prior to April 1, 2019, FSC had a separate agreement with the Fund for administration of the security lending program, based on the number and duration of lending transactions. For the period, the total fees paid for accounting and administration of securities lending were equivalent to an annual rate of .04%.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $3,212 for the period.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
7. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $1,166 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
8. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. For equity securities, lending agents are used, including National Financial Services (NFS), an affiliate of the Fund. Pursuant to a securities lending agreement, NFS will receive a fee, which is capped at 9.9% of daily lending revenue, for its services as lending agent. The Fund may lend securities to certain qualified borrowers, including NFS. 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. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. At period end, there were no security loans outstanding. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. During the period, there were no securities loaned to NFS.
9. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $19,058 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $264.
In addition, during the period the investment adviser reimbursed and/or waived a portion of operating expenses in the amount of $3,242.
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.
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Fidelity Securities Fund and Shareholders of Fidelity Blue Chip Value Fund:
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Fidelity Blue Chip Value Fund (one of the funds constituting Fidelity Securities Fund, referred to hereafter as the “Fund”) as of July 31, 2019, the related statement of operations for the year ended July 31, 2019, the statement of changes in net assets for each of the two years in the period ended July 31, 2019, including the related notes, and the financial highlights for each of the five years in the period ended July 31, 2019 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of July 31, 2019, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended July 31, 2019 and the financial highlights for each of the five years in the period ended July 31, 2019 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States)(PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S.federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of July 31, 2019 by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Boston, Massachusetts
September 12, 2019
We have served as the auditor of one or more investment companies in the Fidelity group of funds since 1932.
Trustees and Officers
The Trustees, Members of the Advisory Board (if any), and officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Except for Jonathan Chiel, each of the Trustees oversees 298 funds. Mr. Chiel oversees 170 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the fund is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund’s Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Board Structure and Oversight Function. James C. Curvey is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Ned C. Lautenbach serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and other equity funds. The asset allocation funds may invest in Fidelity® funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Jonathan Chiel (1957)
Year of Election or Appointment: 2016
Trustee
Mr. Chiel also serves as Trustee of other Fidelity® funds. Mr. Chiel is Executive Vice President and General Counsel for FMR LLC (diversified financial services company, 2012-present). Previously, Mr. Chiel served as general counsel (2004-2012) and senior vice president and deputy general counsel (2000-2004) for John Hancock Financial Services; a partner with Choate, Hall & Stewart (1996-2000) (law firm); and an Assistant United States Attorney for the United States Attorney’s Office of the District of Massachusetts (1986-95), including Chief of the Criminal Division (1993-1995). Mr. Chiel is a director on the boards of the Boston Bar Foundation and the Maimonides School.
James C. Curvey (1935)
Year of Election or Appointment: 2007
Trustee
Chairman of the Board of Trustees
Mr. Curvey also serves as Trustee of other Fidelity® funds. Mr. Curvey is Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey is an Overseer Emeritus for the Boston Symphony Orchestra, a Director of Artis-Naples, and a Trustee of Brewster Academy in Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-2018), Director of Fidelity Investments Money Management, Inc. (investment adviser firm, 2009-2014) and a Director of FMR and FMR Co., Inc. (investment adviser firms, 2007-2014).
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), as a member of the Independent Directors Council (IDC) Governing Council (2010-2015), and as a member of the Board of Directors for The Brookville Center for Children’s Services, Inc. (2009-2017). Mr. Dirks is a member of the Finance Committee (2016-present) and Board of Directors (2017-present) and is Treasurer (2018-present) of the Asolo Repertory Theatre.
Donald F. Donahue (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Donahue also serves as a Trustee of other Fidelity® funds. Mr. Donahue is President and Chief Executive Officer of Miranda Partners, LLC (risk consulting for the financial services industry, 2012-present). Previously, Mr. Donahue served as a Member of the Advisory Board of certain Fidelity® funds (2015-2018) and Chief Executive Officer (2006-2012), Chief Operating Officer (2003-2006), and Managing Director, Customer Marketing and Development (1999-2003) of The Depository Trust & Clearing Corporation (financial markets infrastructure). Mr. Donahue serves as a Member (2007-present) and Co-Chairman (2016-present) of the Board of Directors of United Way of New York, Member of the Board of Directors of NYC Leadership Academy (2012-present) and Member of the Board of Advisors of Ripple Labs, Inc. (financial services, 2015-present). He also served as Chairman (2010-2012) and Member of the Board of Directors (2012-2013) of Omgeo, LLC (financial services), Treasurer of United Way of New York (2012-2016), and Member of the Board of Directors of XBRL US (financial services non-profit, 2009-2012) and the International Securities Services Association (2009-2012).
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2014-2017) and a member (2010-2017) of the Board of Directors of Dave & Buster’s Entertainment, Inc. (restaurant and entertainment complexes), as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association, and as a member of the Board of Directors for The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), Earth Fare, Inc. (retail grocery, 2010-2014), and The Western Union Company (global money transfer, 2006-2011).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as Chair (2018-present) and Member (2013-present) of the Board of Governors, State University System of Florida and is a member of the Council on Foreign Relations (1994-present). He is also a member and has most recently served as Chairman of the Board of Directors of Artis-Naples (2012-present). Previously, Mr. Lautenbach served as a member and then Lead Director of the Board of Directors of Eaton Corporation (diversified industrial, 1997-2016). He was also a Partner and Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007). In addition, Mr. Lautenbach also had a 30-year career with IBM (technology company) during which time he served as Senior Vice President and a member of the Corporate Executive Committee (1968-1998).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-2018).
Cornelia M. Small (1944)
Year of Election or Appointment: 2005
Trustee
Ms. Small also serves as Trustee of other Fidelity® funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.
Garnett A. Smith (1947)
Year of Election or Appointment: 2018
Trustee
Mr. Smith also serves as Trustee of other Fidelity® funds. Prior to Mr. Smith's retirement, he served as Chairman and Chief Executive Officer of Inbrand Corp. (manufacturer of personal absorbent products, 1990-1997). He also served as President (1986-1990) of Inbrand Corp. Prior to his employment with Inbrand Corp., he was employed by a retail fabric chain and North Carolina National Bank. In addition, Mr. Smith served as a Member of the Advisory Board of certain Fidelity® funds (2012-2013) and as a board member of the Jackson Hole Land Trust (2009-2012).
David M. Thomas (1949)
Year of Election or Appointment: 2008
Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present) and as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), a Director of Fortune Brands, Inc. (consumer products, 2000-2011), and a member of the Board of Trustees of the University of Florida (2013-2018).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Advisory Board Members and Officers:
Correspondence intended for a Member of the Advisory Board (if any) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235. Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Vicki L. Fuller (1957)
Year of Election or Appointment: 2018
Member of the Advisory Board
Ms. Fuller also serves as Member of the Advisory Board of other Fidelity® funds. Ms. Fuller serves as a member of the Board of Directors, Audit Committee, and Nominating and Governance Committee of The Williams Companies, Inc. (natural gas infrastructure, 2018-present). Previously, Ms. Fuller served as the Chief Investment Officer of the New York State Common Retirement Fund (2012-2018) and held a variety of positions at AllianceBernstein L.P. (global asset management, 1985-2012), including Managing Director (2006-2012) and Senior Vice President and Senior Portfolio Manager (2001-2006).
Peter S. Lynch (1944)
Year of Election or Appointment: 2003
Member of the Advisory Board
Mr. Lynch also serves as Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of FMR (investment adviser firm) and FMR Co., Inc. (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).
Michael E. Wiley (1950)
Year of Election or Appointment: 2018
Member of the Advisory Board
Mr. Wiley also serves as Trustee or Member of the Advisory Board of other Fidelity® funds. Mr. Wiley serves as a Director of High Point Resources (exploration and production, 2005-present). Previously, Mr. Wiley served as a Director of Andeavor Corporation (independent oil refiner and marketer, 2005-2018), a Director of Andeavor Logistics LP (natural resources logistics, 2015-2018), a Director of Post Oak Bank (privately-held bank, 2004-2018), a Director of Asia Pacific Exploration Consolidated (international oil and gas exploration and production, 2008-2013), a member of the Board of Trustees of the University of Tulsa (2000-2006; 2007-2010), a Senior Energy Advisor of Katzenbach Partners, LLC (consulting, 2006-2007), an Advisory Director of Riverstone Holdings (private investment), a Director of Spinnaker Exploration Company (exploration and production, 2001-2005) and Chairman, President, and CEO of Baker Hughes, Inc. (oilfield services, 2000-2004).
Elizabeth Paige Baumann (1968)
Year of Election or Appointment: 2017
Anti-Money Laundering (AML) Officer
Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer (2012-present) and Senior Vice President (2014-present) of FMR LLC (diversified financial services company) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as AML Officer of the funds (2012-2016), and Vice President (2007-2014) and Deputy Anti-Money Laundering Officer (2007-2012) of FMR LLC.
Craig S. Brown (1977)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Brown also serves as Assistant Treasurer of other funds. Mr. Brown is an employee of Fidelity Investments (2013-present).
John J. Burke III (1964)
Year of Election or Appointment: 2018
Chief Financial Officer
Mr. Burke also serves as Chief Financial Officer of other funds. Mr. Burke serves as Head of Investment Operations for Fidelity Fund and Investment Operations (2018-present) and is an employee of Fidelity Investments (1998-present). Previously Mr. Burke served as head of Asset Management Investment Operations (2012-2018).
William C. Coffey (1969)
Year of Election or Appointment: 2018
Secretary and Chief Legal Officer (CLO)
Mr. Coffey also serves as Secretary and CLO of other funds. Mr. Coffey serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2018-present); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2018-present); and CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2018-present). He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Assistant Secretary of certain funds (2009-2018) and as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Timothy M. Cohen (1969)
Year of Election or Appointment: 2018
Vice President
Mr. Cohen also serves as Vice President of other funds. Mr. Cohen serves as Executive Vice President of Fidelity SelectCo, LLC (2019-present), Co-Head of Equity (2018-present), a Director of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present), and is an employee of Fidelity Investments. Previously, Mr. Cohen served as Head of Global Equity Research (2016-2018), Chief Investment Officer - Equity and a Director of Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2013-2015) and as a Director of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2017).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds. Mr. Davis serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present), and is an employee of Fidelity Investments (2008-present). Previously, Mr. Deberghes served as President and Treasurer of certain Fidelity® funds (2013-2018). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). Previously, Mr. Deberghes served in other fund officer roles.
Laura M. Del Prato (1964)
Year of Election or Appointment: 2018
Assistant Treasurer
Ms. Del Prato also serves as an officer of other funds. Ms. Del Prato is an employee of Fidelity Investments (2017-present). Prior to joining Fidelity Investments, Ms. Del Prato served as a Managing Director and Treasurer of the JPMorgan Mutual Funds (2014-2017). Prior to JPMorgan, Ms. Del Prato served as a partner at Cohen Fund Audit Services (accounting firm, 2012-2013) and KPMG LLP (accounting firm, 2004-2012).
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2005-present). Previously, Mr. Hogan served as Assistant Treasurer of certain Fidelity® funds (2016-2018).
Pamela R. Holding (1964)
Year of Election or Appointment: 2018
Vice President
Ms. Holding also serves as Vice President of other funds. Ms. Holding serves as Executive Vice President of Fidelity SelectCo, LLC (2019-present), Co-Head of Equity (2018-present) and is an employee of Fidelity Investments (2013-present). Previously, Ms. Holding served as Chief Investment Officer of Fidelity Institutional Asset Management (2013-2018).
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight, serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. Ms. Smith serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), is an employee of Fidelity Investments (2009-present), and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Assistant Treasurer (2013-2018) and Deputy Treasurer (2013-2016) of certain Fidelity® funds.
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
Jim Wegmann (1979)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Wegmann also serves as Assistant Treasurer of other funds. Mr. Wegmann is an employee of Fidelity Investments (2011-present).
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (February 1, 2019 to July 31, 2019).
Actual Expenses
The first line of the accompanying table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. 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.
| Annualized Expense Ratio-A | Beginning Account Value February 1, 2019 | Ending Account Value July 31, 2019 | Expenses Paid During Period-B February 1, 2019 to July 31, 2019 | |
| Actual | .66% | $1,000.00 | $1,051.80 | $3.36 |
| Hypothetical-C | $1,000.00 | $1,021.52 | $3.31 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
C 5% return per year before expenses
Distributions (Unaudited)
The Board of Trustees of Fidelity Blue Chip Value Fund voted to pay on September 9, 2019, to shareholders of record at the opening of business on September 6, 2019, a distribution of $0.058 per share derived from capital gains realized from sales of portfolio securities and a dividend of $0.149 per share from net investment income.
The fund designates 100% and 69% of the dividends distributed in September and December, respectively during the fiscal year as qualifying for the dividends–received deduction for corporate shareholders.
The fund designates 100% of the dividends distributed during the fiscal year as amounts which may be taken into account as a dividend for the purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code.
The fund will notify shareholders in January 2020 of amounts for use in preparing 2019 income tax returns.
BCV-ANN-0919
1.788861.116
Fidelity® Dividend Growth Fund Annual Report July 31, 2019 |
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Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of a fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a financial advisor, broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from a fund electronically, by contacting your financial intermediary. For Fidelity customers, visit Fidelity's web site or call Fidelity using the contact information listed below.
You may elect to receive all future reports in paper free of charge. If you wish to continue receiving paper copies of your shareholder reports, you may contact your financial intermediary or, if you are a Fidelity customer, visit Fidelity’s website, or call Fidelity at the applicable toll-free number listed below. Your election to receive reports in paper will apply to all funds held with the fund complex/your financial intermediary.
| Account Type | Website | Phone Number |
| Brokerage, Mutual Fund, or Annuity Contracts: | fidelity.com/mailpreferences | 1-800-343-3548 |
| Employer Provided Retirement Accounts: | netbenefits.fidelity.com/preferences (choose 'no' under Required Disclosures to continue to print) | 1-800-343-0860 |
| Advisor Sold Accounts Serviced Through Your Financial Intermediary: | Contact Your Financial Intermediary | Your Financial Intermediary's phone number |
| Advisor Sold Accounts Serviced by Fidelity: | institutional.fidelity.com | 1-877-208-0098 |
Contents
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-800-544-8544 if you’re an individual investing directly with Fidelity, call 1-800-835-5092 if you’re a plan sponsor or participant with Fidelity as your recordkeeper or call 1-877-208-0098 on institutional accounts or if you’re an advisor or invest through one 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. © 2019 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT. Forms N-PORT are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-PORT 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.institutional.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.
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
| For the periods ended July 31, 2019 | Past 1 year | Past 5 years | Past 10 years |
| Fidelity® Dividend Growth Fund | 5.38% | 8.25% | 12.31% |
| Class K | 5.50% | 8.36% | 12.46% |
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity® Dividend Growth Fund, a class of the fund, on July 31, 2009.
The chart shows how the value of your investment would have changed, and also shows how the S&P 500® Index performed over the same period.
See above for additional information regarding the performance of Fidelity® Dividend Growth Fund.
| Period Ending Values | ||
| $31,923 | Fidelity® Dividend Growth Fund | |
| $37,171 | S&P 500® Index | |
Management's Discussion of Fund Performance
Market Recap: The U.S. equity bellwether S&P 500® index gained 7.99% for the 12 months ending July 31, 2019, beginning the new year on a high note after enduring a historically volatile final quarter of 2018. Upbeat company earnings/outlooks and signs the Federal Reserve may pause on rates boosted stocks to an all-time high on April 30. In May, however, volatility spiked and stocks returned -6.35% for the month amid the Fed’s decision to hold interest rates steady and signal that it had little appetite to adjust them any time soon, as well as retaliatory tariffs imposed on the U.S. by China. The downtrend was similar to late 2018, when many investors fled from risk assets on elevated concerns about future economic growth, global trade and tighter monetary policy. The bull market roared back in June, with the S&P 500® rising 7.05%, and recorded a series of all-time highs in a productive July (+1.44%). For the full 12 months, growth stocks outpaced value, while large-caps handily bested small-caps. By sector, information technology (+19%) led the way, boosted by continued strength in software & services (+26%), the market’s largest industry segment. Three defensive groups also stood out – real estate (+18%), utilities (+17%) and consumer staples (+15%) – followed by consumer discretionary (+10%) and communication services (+8%). In contrast, energy (-16%) was by far the weakest sector. Other notable laggards included materials (0%), financials (+3%), industrials (+4%) and health care (+4%).Comments from Portfolio Manager Gordon Scott: For the year, the fund’s Retail Class shares gained 5.38%, trailing the advance of the benchmark S&P 500®. Versus the index, security selection among consumer staples stocks had the largest negative impact, although underweighting the strong-performing information technology sector also notably weighed on the portfolio's relative result. A major challenge in staples was an overweight position in the stock of packaged foods company Kraft Heinz (-44%), the fund’s largest individual detractor, which announced disappointing fourth-quarter results in February. Berkshire Hathaway (+4%), which also owned a large stake in Kraft Heinz and was the fund’s biggest holding as of July 31, further detracted. Other holdings that held back performance included software and cloud-services giant Microsoft (+31%), as well as Visa (+31%) and MasterCard (+38%), two processors of credit- and debit-card transactions. These latter three stocks hurt because the fund didn’t own them in a period in which they outperformed. Conversely, favorable stock picking within the communication services, energy and industrials sectors added value this period, along with an underweighting in health care. Cable and media giant Comcast (+23%), a major holding for the fund, was the leading individual contributor, aided by easing uncertainty surrounding the company’s acquisition plans. The portfolio's timely positioning in General Electric (-20%), its second-largest position at period end, also lifted performance. Lastly, an out-of-benchmark stake in U.S. homebuilder NVR (+20%), another contributor, was a beneficiary of falling interest rates this period.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Investment Summary (Unaudited)
Top Ten Stocks as of July 31, 2019
| % of fund's net assets | |
| Berkshire Hathaway, Inc. Class B | 9.6 |
| General Electric Co. | 9.0 |
| Comcast Corp. Class A | 6.3 |
| Exxon Mobil Corp. | 3.9 |
| Bank of America Corp. | 3.7 |
| JPMorgan Chase & Co. | 3.5 |
| Knight-Swift Transportation Holdings, Inc. Class A | 2.4 |
| Wells Fargo & Co. | 2.3 |
| UnitedHealth Group, Inc. | 2.0 |
| Bristol-Myers Squibb Co. | 1.9 |
| 44.6 |
Top Five Market Sectors as of July 31, 2019
| % of fund's net assets | |
| Financials | 25.4 |
| Industrials | 24.2 |
| Communication Services | 12.9 |
| Health Care | 11.3 |
| Consumer Discretionary | 10.2 |
Asset Allocation (% of fund's net assets)
| As of July 31, 2019* | ||
| Stocks | 99.7% | |
| Short-Term Investments and Net Other Assets (Liabilities) | 0.3% | |
* Foreign investments - 3.1%
Schedule of Investments July 31, 2019
Showing Percentage of Net Assets
| Common Stocks - 99.7% | |||
| Shares | Value (000s) | ||
| COMMUNICATION SERVICES - 12.9% | |||
| Diversified Telecommunication Services - 1.3% | |||
| GCI Liberty, Inc. (a) | 515,238 | $30,775 | |
| Verizon Communications, Inc. | 1,112,900 | 61,510 | |
| 92,285 | |||
| Media - 11.6% | |||
| CBS Corp. Class B | 1,065,000 | 54,858 | |
| Comcast Corp. Class A | 10,560,692 | 455,905 | |
| Discovery Communications, Inc. Class A (a)(b) | 1,101,200 | 33,377 | |
| Interpublic Group of Companies, Inc. | 1,864,000 | 42,723 | |
| Liberty Broadband Corp. Class A (a) | 470,534 | 46,202 | |
| Liberty Media Corp. Liberty SiriusXM Series A (a) | 1,553,500 | 64,672 | |
| Nexstar Broadcasting Group, Inc. Class A | 144,000 | 14,655 | |
| Omnicom Group, Inc. | 619,800 | 49,720 | |
| Sinclair Broadcast Group, Inc. Class A | 1,497,800 | 75,264 | |
| 837,376 | |||
| TOTAL COMMUNICATION SERVICES | 929,661 | ||
| CONSUMER DISCRETIONARY - 10.2% | |||
| Auto Components - 1.0% | |||
| BorgWarner, Inc. | 1,022,500 | 38,651 | |
| Lear Corp. | 274,500 | 34,801 | |
| 73,452 | |||
| Automobiles - 1.3% | |||
| General Motors Co. | 2,293,800 | 92,532 | |
| Distributors - 1.2% | |||
| LKQ Corp. (a) | 3,229,400 | 86,968 | |
| Diversified Consumer Services - 0.3% | |||
| H&R Block, Inc. | 793,800 | 21,980 | |
| Household Durables - 2.8% | |||
| Lennar Corp. Class A | 612,000 | 29,113 | |
| Mohawk Industries, Inc. (a) | 287,200 | 35,811 | |
| NVR, Inc. (a) | 26,600 | 88,954 | |
| Whirlpool Corp. | 304,300 | 44,270 | |
| 198,148 | |||
| Internet & Direct Marketing Retail - 0.5% | |||
| The Booking Holdings, Inc. (a) | 20,900 | 39,430 | |
| Leisure Products - 0.5% | |||
| Brunswick Corp. | 657,500 | 32,323 | |
| Specialty Retail - 1.2% | |||
| AutoNation, Inc. (a) | 1,052,100 | 51,216 | |
| Best Buy Co., Inc. | 439,700 | 33,650 | |
| 84,866 | |||
| Textiles, Apparel & Luxury Goods - 1.4% | |||
| Capri Holdings Ltd. (a) | 281,500 | 10,019 | |
| Hanesbrands, Inc. | 1,118,100 | 17,990 | |
| PVH Corp. | 411,301 | 36,573 | |
| Tapestry, Inc. | 1,266,600 | 39,176 | |
| 103,758 | |||
| TOTAL CONSUMER DISCRETIONARY | 733,457 | ||
| CONSUMER STAPLES - 4.5% | |||
| Food & Staples Retailing - 0.6% | |||
| Walgreens Boots Alliance, Inc. | 823,700 | 44,883 | |
| Food Products - 1.4% | |||
| Ingredion, Inc. | 232,200 | 17,947 | |
| The Kraft Heinz Co. | 2,570,000 | 82,266 | |
| 100,213 | |||
| Household Products - 0.9% | |||
| Spectrum Brands Holdings, Inc. | 1,206,375 | 60,451 | |
| Tobacco - 1.6% | |||
| Altria Group, Inc. | 2,496,914 | 117,530 | |
| TOTAL CONSUMER STAPLES | 323,077 | ||
| ENERGY - 5.5% | |||
| Oil, Gas & Consumable Fuels - 5.5% | |||
| Exxon Mobil Corp. | 3,747,497 | 278,664 | |
| Phillips 66 Co. | 1,170,700 | 120,067 | |
| 398,731 | |||
| FINANCIALS - 25.4% | |||
| Banks - 13.3% | |||
| Bank of America Corp. | 8,657,217 | 265,603 | |
| JPMorgan Chase & Co. | 2,194,435 | 254,554 | |
| M&T Bank Corp. | 505,200 | 82,979 | |
| PNC Financial Services Group, Inc. | 698,500 | 99,816 | |
| U.S. Bancorp | 1,663,000 | 95,040 | |
| Wells Fargo & Co. | 3,357,093 | 162,517 | |
| 960,509 | |||
| Capital Markets - 0.3% | |||
| Lazard Ltd. Class A | 478,300 | 18,515 | |
| Consumer Finance - 0.5% | |||
| American Express Co. | 275,200 | 34,227 | |
| Diversified Financial Services - 9.6% | |||
| Berkshire Hathaway, Inc. Class B (a) | 3,384,900 | 695,362 | |
| Insurance - 1.7% | |||
| The Travelers Companies, Inc. | 828,000 | 121,401 | |
| TOTAL FINANCIALS | 1,830,014 | ||
| HEALTH CARE - 11.3% | |||
| Health Care Providers & Services - 8.3% | |||
| AmerisourceBergen Corp. | 575,500 | 50,155 | |
| Anthem, Inc. | 343,600 | 101,228 | |
| Cardinal Health, Inc. | 461,700 | 21,114 | |
| Cigna Corp. | 551,500 | 93,711 | |
| CVS Health Corp. | 993,400 | 55,501 | |
| DaVita HealthCare Partners, Inc. (a) | 520,300 | 31,140 | |
| HCA Holdings, Inc. | 307,900 | 41,108 | |
| McKesson Corp. | 322,600 | 44,825 | |
| Quest Diagnostics, Inc. | 121,900 | 12,444 | |
| UnitedHealth Group, Inc. | 587,700 | 146,343 | |
| 597,569 | |||
| Pharmaceuticals - 3.0% | |||
| Bayer AG | 1,243,500 | 80,540 | |
| Bristol-Myers Squibb Co. | 3,040,200 | 135,015 | |
| 215,555 | |||
| TOTAL HEALTH CARE | 813,124 | ||
| INDUSTRIALS - 24.2% | |||
| Air Freight & Logistics - 2.7% | |||
| FedEx Corp. | 520,700 | 88,795 | |
| United Parcel Service, Inc. Class B | 883,200 | 105,516 | |
| 194,311 | |||
| Airlines - 1.8% | |||
| Delta Air Lines, Inc. | 1,511,400 | 92,256 | |
| Southwest Airlines Co. | 687,600 | 35,432 | |
| 127,688 | |||
| Industrial Conglomerates - 9.0% | |||
| General Electric Co. | 62,174,600 | 649,725 | |
| Machinery - 4.1% | |||
| Allison Transmission Holdings, Inc. | 750,402 | 34,481 | |
| Cummins, Inc. | 478,500 | 78,474 | |
| Deere & Co. | 166,400 | 27,564 | |
| PACCAR, Inc. | 1,128,000 | 79,118 | |
| Snap-On, Inc. | 477,000 | 72,795 | |
| 292,432 | |||
| Professional Services - 0.1% | |||
| Robert Half International, Inc. | 120,600 | 7,285 | |
| Road & Rail - 4.2% | |||
| J.B. Hunt Transport Services, Inc. | 226,400 | 23,177 | |
| Knight-Swift Transportation Holdings, Inc. Class A (b) | 4,848,884 | 173,784 | |
| Norfolk Southern Corp. | 205,600 | 39,294 | |
| Union Pacific Corp. | 381,600 | 68,669 | |
| 304,924 | |||
| Trading Companies & Distributors - 2.3% | |||
| AerCap Holdings NV (a) | 679,100 | 37,031 | |
| Air Lease Corp. Class A | 879,700 | 36,763 | |
| HD Supply Holdings, Inc. (a) | 2,362,910 | 95,721 | |
| 169,515 | |||
| TOTAL INDUSTRIALS | 1,745,880 | ||
| INFORMATION TECHNOLOGY - 5.5% | |||
| IT Services - 1.7% | |||
| Amdocs Ltd. | 969,900 | 62,064 | |
| Cognizant Technology Solutions Corp. Class A | 923,700 | 60,170 | |
| 122,234 | |||
| Software - 1.6% | |||
| Micro Focus International PLC | 628,500 | 13,239 | |
| Oracle Corp. | 1,823,700 | 102,674 | |
| 115,913 | |||
| Technology Hardware, Storage & Peripherals - 2.2% | |||
| Apple, Inc. | 521,918 | 111,189 | |
| HP, Inc. | 2,227,200 | 46,860 | |
| 158,049 | |||
| TOTAL INFORMATION TECHNOLOGY | 396,196 | ||
| UTILITIES - 0.2% | |||
| Electric Utilities - 0.2% | |||
| PPL Corp. | 558,400 | 16,545 | |
| TOTAL COMMON STOCKS | |||
| (Cost $6,553,303) | 7,186,685 | ||
| Money Market Funds - 3.3% | |||
| Fidelity Cash Central Fund 2.43% (c) | 60,529,597 | 60,542 | |
| Fidelity Securities Lending Cash Central Fund 2.43% (c)(d) | 178,824,484 | 178,842 | |
| TOTAL MONEY MARKET FUNDS | |||
| (Cost $239,381) | 239,384 | ||
| TOTAL INVESTMENT IN SECURITIES - 103.0% | |||
| (Cost $6,792,684) | 7,426,069 | ||
| NET OTHER ASSETS (LIABILITIES) - (3.0)% | (217,994) | ||
| NET ASSETS - 100% | $7,208,075 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
(d) Investment made with cash collateral received from securities on loan.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
| Fund | Income earned |
| (Amounts in thousands) | |
| Fidelity Cash Central Fund | $5,876 |
| Fidelity Securities Lending Cash Central Fund | 62 |
| Total | $5,938 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable. Amount for Fidelity Securities Lending Cash Central Fund 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.
Investment Valuation
The following is a summary of the inputs used, as of July 31, 2019, 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 below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| Valuation Inputs at Reporting Date: | ||||
| Description | Total | Level 1 | Level 2 | Level 3 |
| (Amounts in thousands) | ||||
| Investments in Securities: | ||||
| Equities: | ||||
| Communication Services | $929,661 | $929,661 | $-- | $-- |
| Consumer Discretionary | 733,457 | 733,457 | -- | -- |
| Consumer Staples | 323,077 | 323,077 | -- | -- |
| Energy | 398,731 | 398,731 | -- | -- |
| Financials | 1,830,014 | 1,830,014 | -- | -- |
| Health Care | 813,124 | 732,584 | 80,540 | -- |
| Industrials | 1,745,880 | 1,745,880 | -- | -- |
| Information Technology | 396,196 | 382,957 | 13,239 | -- |
| Utilities | 16,545 | 16,545 | -- | -- |
| Money Market Funds | 239,384 | 239,384 | -- | -- |
| Total Investments in Securities: | $7,426,069 | $7,332,290 | $93,779 | $-- |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
| Amounts in thousands (except per-share amounts) | July 31, 2019 | |
| Assets | ||
| Investment in securities, at value (including securities loaned of $170,895) — See accompanying schedule: Unaffiliated issuers (cost $6,553,303) | $7,186,685 | |
| Fidelity Central Funds (cost $239,381) | 239,384 | |
| Total Investment in Securities (cost $6,792,684) | $7,426,069 | |
| Cash | 19 | |
| Receivable for investments sold | 7,331 | |
| Receivable for fund shares sold | 2,557 | |
| Dividends receivable | 4,488 | |
| Distributions receivable from Fidelity Central Funds | 448 | |
| Prepaid expenses | 17 | |
| Other receivables | 804 | |
| Total assets | 7,441,733 | |
| Liabilities | ||
| Payable for investments purchased | $47,374 | |
| Payable for fund shares redeemed | 4,023 | |
| Accrued management fee | 1,978 | |
| Other affiliated payables | 850 | |
| Other payables and accrued expenses | 583 | |
| Collateral on securities loaned | 178,850 | |
| Total liabilities | 233,658 | |
| Net Assets | $7,208,075 | |
| Net Assets consist of: | ||
| Paid in capital | $6,365,332 | |
| Total distributable earnings (loss) | 842,743 | |
| Net Assets | $7,208,075 | |
| Net Asset Value and Maximum Offering Price | ||
| Dividend Growth: | ||
| Net Asset Value, offering price and redemption price per share ($5,727,937 ÷ 193,601 shares) | $29.59 | |
| Class K: | ||
| Net Asset Value, offering price and redemption price per share ($1,480,138 ÷ 50,067 shares) | $29.56 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| Amounts in thousands | Year ended July 31, 2019 | |
| Investment Income | ||
| Dividends | $151,205 | |
| Non-Cash dividends | 16,447 | |
| Income from Fidelity Central Funds (including $62 from security lending) | 5,938 | |
| Total income | 173,590 | |
| Expenses | ||
| Management fee | ||
| Basic fee | $36,713 | |
| Performance adjustment | (14,352) | |
| Transfer agent fees | 9,083 | |
| Accounting and security lending fees | 1,159 | |
| Custodian fees and expenses | 53 | |
| Independent trustees' fees and expenses | 38 | |
| Registration fees | 133 | |
| Audit | 72 | |
| Legal | 22 | |
| Miscellaneous | 47 | |
| Total expenses before reductions | 32,968 | |
| Expense reductions | (797) | |
| Total expenses after reductions | 32,171 | |
| Net investment income (loss) | 141,419 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | 275,251 | |
| Fidelity Central Funds | (17) | |
| Foreign currency transactions | (125) | |
| Total net realized gain (loss) | 275,109 | |
| Change in net unrealized appreciation (depreciation) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | (78,106) | |
| Fidelity Central Funds | (1) | |
| Assets and liabilities in foreign currencies | (15) | |
| Total change in net unrealized appreciation (depreciation) | (78,122) | |
| Net gain (loss) | 196,987 | |
| Net increase (decrease) in net assets resulting from operations | $338,406 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Amounts in thousands | Year ended July 31, 2019 | Year ended July 31, 2018 |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $141,419 | $143,558 |
| Net realized gain (loss) | 275,109 | 1,791,487 |
| Change in net unrealized appreciation (depreciation) | (78,122) | (993,720) |
| Net increase (decrease) in net assets resulting from operations | 338,406 | 941,325 |
| Distributions to shareholders | (1,248,508) | – |
| Distributions to shareholders from net investment income | – | (127,264) |
| Distributions to shareholders from net realized gain | – | (1,053,472) |
| Total distributions | (1,248,508) | (1,180,736) |
| Share transactions - net increase (decrease) | 851,366 | 76,969 |
| Total increase (decrease) in net assets | (58,736) | (162,442) |
| Net Assets | ||
| Beginning of period | 7,266,811 | 7,429,253 |
| End of period | $7,208,075 | $7,266,811 |
| Other Information | ||
| Undistributed net investment income end of period | $69,283 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Dividend Growth Fund
| Years ended July 31, | 2019 | 2018 | 2017 | 2016 | 2015 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $33.79 | $35.06 | $31.51 | $34.46 | $37.27 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .59 | .65 | .53 | .48 | .49 |
| Net realized and unrealized gain (loss) | 1.01B | 3.72 | 3.53 | (.61)C | 2.71 |
| Total from investment operations | 1.60 | 4.37 | 4.06 | (.13) | 3.20 |
| Distributions from net investment income | (.60) | (.60) | (.51) | (.47) | (.51) |
| Distributions from net realized gain | (5.20) | (5.04) | – | (2.36) | (5.49) |
| Total distributions | (5.80) | (5.64) | (.51) | (2.82)D | (6.01)E |
| Net asset value, end of period | $29.59 | $33.79 | $35.06 | $31.51 | $34.46 |
| Total ReturnF | 5.38%B | 13.60% | 13.06% | .26%C | 9.54% |
| Ratios to Average Net AssetsG,H | |||||
| Expenses before reductions | .50% | .50% | .52% | .62% | .69% |
| Expenses net of fee waivers, if any | .50% | .50% | .52% | .61% | .68% |
| Expenses net of all reductions | .49% | .49% | .52% | .61% | .68% |
| Net investment income (loss) | 2.05% | 1.94% | 1.60% | 1.59% | 1.43% |
| Supplemental Data | |||||
| Net assets, end of period (in millions) | $5,728 | $6,055 | $5,952 | $5,849 | $6,474 |
| Portfolio turnover rateI | 101% | 115% | 43% | 30% | 64% |
A Calculated based on average shares outstanding during the period.
B Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.05 per share. Excluding these litigation proceeds, the total return would have been 5.19%.
C Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.01 per share. Excluding these litigation proceeds, the total return would have been .22%.
D Total distributions of $2.82 per share is comprised of distributions from net investment income of $.465 and distributions from net realized gain of $2.358 per share.
E Total distributions of $6.01 per share is comprised of distributions from net investment income of $.512 and distributions from net realized gain of $5.493 per share.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G 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.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Dividend Growth Fund Class K
| Years ended July 31, | 2019 | 2018 | 2017 | 2016 | 2015 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $33.76 | $35.04 | $31.50 | $34.45 | $37.27 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .63 | .69 | .56 | .52 | .53 |
| Net realized and unrealized gain (loss) | 1.01B | 3.71 | 3.53 | (.61)C | 2.70 |
| Total from investment operations | 1.64 | 4.40 | 4.09 | (.09) | 3.23 |
| Distributions from net investment income | (.63) | (.64) | (.55) | (.50) | (.56) |
| Distributions from net realized gain | (5.20) | (5.04) | – | (2.36) | (5.49) |
| Total distributions | (5.84)D | (5.68) | (.55) | (2.86) | (6.05) |
| Net asset value, end of period | $29.56 | $33.76 | $35.04 | $31.50 | $34.45 |
| Total ReturnE | 5.50%B | 13.70% | 13.16% | .39%C | 9.65% |
| Ratios to Average Net AssetsF,G | |||||
| Expenses before reductions | .40% | .40% | .41% | .50% | .57% |
| Expenses net of fee waivers, if any | .39% | .40% | .41% | .50% | .57% |
| Expenses net of all reductions | .38% | .39% | .41% | .49% | .57% |
| Net investment income (loss) | 2.16% | 2.05% | 1.71% | 1.71% | 1.54% |
| Supplemental Data | |||||
| Net assets, end of period (in millions) | $1,480 | $1,212 | $1,477 | $1,691 | $1,942 |
| Portfolio turnover rateH | 101% | 115% | 43% | 30% | 64% |
A Calculated based on average shares outstanding during the period.
B Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.05 per share. Excluding these litigation proceeds, the total return would have been 5.31%.
C Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.01 per share. Excluding these litigation proceeds, the total return would have been .35%.
D Total distributions of $5.84 per share is comprised of distributions from net investment income of $0.632 and distributions from net realized gain of $5.203 per share.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
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 Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended July 31, 2019
(Amounts in thousands except percentages)
1. Organization.
Fidelity Dividend Growth Fund (the Fund) is a fund of Fidelity Securities Fund (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Dividend Growth and Class K shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date ranged from less than .005% to .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investments Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of July 31, 2019 is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan) for the Fund, certain independent Trustees have elected to defer receipt of a portion of their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees of $504 are included in the accompanying Statement of Assets and Liabilities in other receivables and other payables and accrued expenses, respectively.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. As of July 31, 2019, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, partnerships, deferred trustees compensation and losses deferred due to wash sale.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
| Gross unrealized appreciation | $821,774 |
| Gross unrealized depreciation | (226,145) |
| Net unrealized appreciation (depreciation) | $595,629 |
| Tax Cost | $6,830,440 |
The tax-based components of distributable earnings as of period end were as follows:
| Undistributed ordinary income | $68,687 |
| Undistributed long-term capital gain | $178,941 |
| Net unrealized appreciation (depreciation) on securities and other investments | $595,619 |
The tax character of distributions paid was as follows:
| July 31, 2019 | July 31, 2018 | |
| Ordinary Income | $337,617 | $ 133,779 |
| Long-term Capital Gains | 910,892 | 1,046,957 |
| Total | $1,248,508 | $ 1,180,736 |
New Rule Issuance. During August 2018, the U.S. Securities and Exchange Commission issued Final Rule Release No. 33-10532, Disclosure Update and Simplification. This Final Rule includes amendments specific to registered investment companies that are intended to eliminate overlap in disclosure requirements between Regulation S-X and GAAP. In accordance with these amendments, certain line-items in the Fund's financial statements have been combined or removed for the current period as outlined in the table below.
| Financial Statement | Current Line-Item Presentation (As Applicable) | Prior Line-Item Presentation (As Applicable) |
| Statement of Assets and Liabilities | Total distributable earnings (loss) | Undistributed/Distributions in excess of/Accumulated net investment income (loss) Accumulated/Undistributed net realized gain (loss) Net unrealized appreciation (depreciation) |
| Statement of Changes in Net Assets | N/A - removed | Undistributed/Distributions in excess of/Accumulated net investment income (loss) end of period |
| Statement of Changes in Net Assets | Distributions to shareholders | Distributions to shareholders from net investment income Distributions to shareholders from net realized gain |
| Distributions to Shareholders Note to Financial Statements | Distributions to shareholders | Distributions to shareholders from net investment income Distributions to shareholders from net realized gain |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $6,708,362 and $6,747,720, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .24% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of +/- .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of Dividend Growth as compared to its benchmark index, the S&P 500 Index, over the same 36 month performance period. For the reporting period, the total annual management fee rate, including the performance adjustment, was .33% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of Dividend Growth, except for Class K. FIIOC receives an asset-based fee of Class K's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
| Amount | % of Class-Level Average Net Assets | |
| Dividend Growth | $8,580 | .15 |
| Class K | 503 | .05 |
| $9,083 |
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Prior to April 1, 2019, FSC had a separate agreement with the Fund for administration of the security lending program, based on the number and duration of lending transactions. For the period, the total fees paid for accounting and administration of securities lending were equivalent to an annual rate of .02%.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $175 for the period.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
Other. During the period, the investment adviser reimbursed the Fund for certain losses in the amount of $50.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $18 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. For equity securities, lending agents are used, including National Financial Services (NFS), an affiliate of the Fund. Pursuant to a securities lending agreement, NFS will receive a fee, which is capped at 9.9% of daily lending revenue, for its services as lending agent. The Fund may lend securities to certain qualified borrowers, including NFS. 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. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. At period end, there were no security loans outstanding with NFS, as affiliated borrower. Total fees paid by the Fund to NFS, as lending agent, amounted to $3. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds, and includes $2 from securities loaned to NFS, as affiliated borrower.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $743 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses. During the period, custodian credits reduced the Fund's expenses by $3. During the period, transfer agent credits reduced each class' expenses as noted in the table below.
| Expense reduction | |
| Dividend Growth | $1 |
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $50.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Year ended July 31, 2019 | Year ended July 31, 2018 | |
| Distributions to shareholders | ||
| Dividend Growth | $1,046,442 | $– |
| Class K | 202,066 | – |
| Total | $1,248,508 | $ - |
| From net investment income | ||
| Dividend Growth | $– | $102,569 |
| Class K | – | 24,695 |
| Total | $– | $127,264 |
| From net realized gain | ||
| Dividend Growth | $– | $860,821 |
| Class K | – | 192,651 |
| Total | $– | $1,053,472 |
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
| Shares | Shares | Dollars | Dollars | |
| Year ended July 31, 2019 | Year ended July 31, 2018 | Year ended July 31, 2019 | Year ended July 31, 2018 | |
| Dividend Growth | ||||
| Shares sold | 10,720 | 6,817 | $305,981 | $228,121 |
| Reinvestment of distributions | 34,200 | 28,012 | 997,153 | 919,157 |
| Shares redeemed | (30,538) | (25,386) | (872,370) | (851,332) |
| Net increase (decrease) | 14,382 | 9,443 | $430,764 | $295,946 |
| Class K | ||||
| Shares sold | 25,736 | 6,726 | $751,445 | $224,545 |
| Reinvestment of distributions | 6,925 | 6,626 | 202,066 | 217,347 |
| Shares redeemed | (18,490) | (19,611) | (532,909) | (660,869) |
| Net increase (decrease) | 14,171 | (6,259) | $420,602 | $(218,977) |
11. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Fidelity Securities Fund and Shareholders of Fidelity Dividend Growth Fund:
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Fidelity Dividend Growth Fund (one of the funds constituting Fidelity Securities Fund, referred to hereafter as the “Fund”) as of July 31, 2019, the related statement of operations for the year ended July 31, 2019, the statement of changes in net assets for each of the two years in the period ended July 31, 2019, including the related notes, and the financial highlights for each of the five years in the period ended July 31, 2019 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of July 31, 2019, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended July 31, 2019 and the financial highlights for each of the five years in the period ended July 31, 2019 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of July 31, 2019 by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Boston, Massachusetts
September 13, 2019
We have served as the auditor of one or more investment companies in the Fidelity group of funds since 1932.
Trustees and Officers
The Trustees, Members of the Advisory Board (if any), and officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Except for Jonathan Chiel, each of the Trustees oversees 298 funds. Mr. Chiel oversees 170 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the fund is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund's Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544 if you’re an individual investing directly with Fidelity, call 1-800-835-5092 if you’re a plan sponsor or participant with Fidelity as your recordkeeper or call 1-877-208-0098 on institutional accounts or if you’re an advisor or invest through one.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Board Structure and Oversight Function. James C. Curvey is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Ned C. Lautenbach serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and other equity funds. The asset allocation funds may invest in Fidelity® funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Jonathan Chiel (1957)
Year of Election or Appointment: 2016
Trustee
Mr. Chiel also serves as Trustee of other Fidelity® funds. Mr. Chiel is Executive Vice President and General Counsel for FMR LLC (diversified financial services company, 2012-present). Previously, Mr. Chiel served as general counsel (2004-2012) and senior vice president and deputy general counsel (2000-2004) for John Hancock Financial Services; a partner with Choate, Hall & Stewart (1996-2000) (law firm); and an Assistant United States Attorney for the United States Attorney’s Office of the District of Massachusetts (1986-95), including Chief of the Criminal Division (1993-1995). Mr. Chiel is a director on the boards of the Boston Bar Foundation and the Maimonides School.
James C. Curvey (1935)
Year of Election or Appointment: 2007
Trustee
Chairman of the Board of Trustees
Mr. Curvey also serves as Trustee of other Fidelity® funds. Mr. Curvey is Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey is an Overseer Emeritus for the Boston Symphony Orchestra, a Director of Artis-Naples, and a Trustee of Brewster Academy in Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-2018), Director of Fidelity Investments Money Management, Inc. (investment adviser firm, 2009-2014) and a Director of FMR and FMR Co., Inc. (investment adviser firms, 2007-2014).
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), as a member of the Independent Directors Council (IDC) Governing Council (2010-2015), and as a member of the Board of Directors for The Brookville Center for Children’s Services, Inc. (2009-2017). Mr. Dirks is a member of the Finance Committee (2016-present) and Board of Directors (2017-present) and is Treasurer (2018-present) of the Asolo Repertory Theatre.
Donald F. Donahue (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Donahue also serves as a Trustee of other Fidelity® funds. Mr. Donahue is President and Chief Executive Officer of Miranda Partners, LLC (risk consulting for the financial services industry, 2012-present). Previously, Mr. Donahue served as a Member of the Advisory Board of certain Fidelity® funds (2015-2018) and Chief Executive Officer (2006-2012), Chief Operating Officer (2003-2006), and Managing Director, Customer Marketing and Development (1999-2003) of The Depository Trust & Clearing Corporation (financial markets infrastructure). Mr. Donahue serves as a Member (2007-present) and Co-Chairman (2016-present) of the Board of Directors of United Way of New York, Member of the Board of Directors of NYC Leadership Academy (2012-present) and Member of the Board of Advisors of Ripple Labs, Inc. (financial services, 2015-present). He also served as Chairman (2010-2012) and Member of the Board of Directors (2012-2013) of Omgeo, LLC (financial services), Treasurer of United Way of New York (2012-2016), and Member of the Board of Directors of XBRL US (financial services non-profit, 2009-2012) and the International Securities Services Association (2009-2012).
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2014-2017) and a member (2010-2017) of the Board of Directors of Dave & Buster’s Entertainment, Inc. (restaurant and entertainment complexes), as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association, and as a member of the Board of Directors for The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), Earth Fare, Inc. (retail grocery, 2010-2014), and The Western Union Company (global money transfer, 2006-2011).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as Chair (2018-present) and Member (2013-present) of the Board of Governors, State University System of Florida and is a member of the Council on Foreign Relations (1994-present). He is also a member and has most recently served as Chairman of the Board of Directors of Artis-Naples (2012-present). Previously, Mr. Lautenbach served as a member and then Lead Director of the Board of Directors of Eaton Corporation (diversified industrial, 1997-2016). He was also a Partner and Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007). In addition, Mr. Lautenbach also had a 30-year career with IBM (technology company) during which time he served as Senior Vice President and a member of the Corporate Executive Committee (1968-1998).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-2018).
Cornelia M. Small (1944)
Year of Election or Appointment: 2005
Trustee
Ms. Small also serves as Trustee of other Fidelity® funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.
Garnett A. Smith (1947)
Year of Election or Appointment: 2018
Trustee
Mr. Smith also serves as Trustee of other Fidelity® funds. Prior to Mr. Smith's retirement, he served as Chairman and Chief Executive Officer of Inbrand Corp. (manufacturer of personal absorbent products, 1990-1997). He also served as President (1986-1990) of Inbrand Corp. Prior to his employment with Inbrand Corp., he was employed by a retail fabric chain and North Carolina National Bank. In addition, Mr. Smith served as a Member of the Advisory Board of certain Fidelity® funds (2012-2013) and as a board member of the Jackson Hole Land Trust (2009-2012).
David M. Thomas (1949)
Year of Election or Appointment: 2008
Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present) and as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), a Director of Fortune Brands, Inc. (consumer products, 2000-2011), and a member of the Board of Trustees of the University of Florida (2013-2018).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Advisory Board Members and Officers:
Correspondence intended for a Member of the Advisory Board (if any) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235. Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Vicki L. Fuller (1957)
Year of Election or Appointment: 2018
Member of the Advisory Board
Ms. Fuller also serves as Member of the Advisory Board of other Fidelity® funds. Ms. Fuller serves as a member of the Board of Directors, Audit Committee, and Nominating and Governance Committee of The Williams Companies, Inc. (natural gas infrastructure, 2018-present). Previously, Ms. Fuller served as the Chief Investment Officer of the New York State Common Retirement Fund (2012-2018) and held a variety of positions at AllianceBernstein L.P. (global asset management, 1985-2012), including Managing Director (2006-2012) and Senior Vice President and Senior Portfolio Manager (2001-2006).
Peter S. Lynch (1944)
Year of Election or Appointment: 2003
Member of the Advisory Board
Mr. Lynch also serves as Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of FMR (investment adviser firm) and FMR Co., Inc. (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).
Michael E. Wiley (1950)
Year of Election or Appointment: 2018
Member of the Advisory Board
Mr. Wiley also serves as Trustee or Member of the Advisory Board of other Fidelity® funds. Mr. Wiley serves as a Director of High Point Resources (exploration and production, 2005-present). Previously, Mr. Wiley served as a Director of Andeavor Corporation (independent oil refiner and marketer, 2005-2018), a Director of Andeavor Logistics LP (natural resources logistics, 2015-2018), a Director of Post Oak Bank (privately-held bank, 2004-2018), a Director of Asia Pacific Exploration Consolidated (international oil and gas exploration and production, 2008-2013), a member of the Board of Trustees of the University of Tulsa (2000-2006; 2007-2010), a Senior Energy Advisor of Katzenbach Partners, LLC (consulting, 2006-2007), an Advisory Director of Riverstone Holdings (private investment), a Director of Spinnaker Exploration Company (exploration and production, 2001-2005) and Chairman, President, and CEO of Baker Hughes, Inc. (oilfield services, 2000-2004).
Elizabeth Paige Baumann (1968)
Year of Election or Appointment: 2017
Anti-Money Laundering (AML) Officer
Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer (2012-present) and Senior Vice President (2014-present) of FMR LLC (diversified financial services company) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as AML Officer of the funds (2012-2016), and Vice President (2007-2014) and Deputy Anti-Money Laundering Officer (2007-2012) of FMR LLC.
Craig S. Brown (1977)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Brown also serves as Assistant Treasurer of other funds. Mr. Brown is an employee of Fidelity Investments (2013-present).
John J. Burke III (1964)
Year of Election or Appointment: 2018
Chief Financial Officer
Mr. Burke also serves as Chief Financial Officer of other funds. Mr. Burke serves as Head of Investment Operations for Fidelity Fund and Investment Operations (2018-present) and is an employee of Fidelity Investments (1998-present). Previously Mr. Burke served as head of Asset Management Investment Operations (2012-2018).
William C. Coffey (1969)
Year of Election or Appointment: 2018
Secretary and Chief Legal Officer (CLO)
Mr. Coffey also serves as Secretary and CLO of other funds. Mr. Coffey serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2018-present); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2018-present); and CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2018-present). He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Assistant Secretary of certain funds (2009-2018) and as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Timothy M. Cohen (1969)
Year of Election or Appointment: 2018
Vice President
Mr. Cohen also serves as Vice President of other funds. Mr. Cohen serves as Executive Vice President of Fidelity SelectCo, LLC (2019-present), Co-Head of Equity (2018-present), a Director of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present), and is an employee of Fidelity Investments. Previously, Mr. Cohen served as Head of Global Equity Research (2016-2018), Chief Investment Officer - Equity and a Director of Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2013-2015) and as a Director of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2017).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds. Mr. Davis serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present), and is an employee of Fidelity Investments (2008-present). Previously, Mr. Deberghes served as President and Treasurer of certain Fidelity® funds (2013-2018). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). Previously, Mr. Deberghes served in other fund officer roles.
Laura M. Del Prato (1964)
Year of Election or Appointment: 2018
Assistant Treasurer
Ms. Del Prato also serves as an officer of other funds. Ms. Del Prato is an employee of Fidelity Investments (2017-present). Prior to joining Fidelity Investments, Ms. Del Prato served as a Managing Director and Treasurer of the JPMorgan Mutual Funds (2014-2017). Prior to JPMorgan, Ms. Del Prato served as a partner at Cohen Fund Audit Services (accounting firm, 2012-2013) and KPMG LLP (accounting firm, 2004-2012).
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2005-present). Previously, Mr. Hogan served as Assistant Treasurer of certain Fidelity® funds (2016-2018).
Pamela R. Holding (1964)
Year of Election or Appointment: 2018
Vice President
Ms. Holding also serves as Vice President of other funds. Ms. Holding serves as Executive Vice President of Fidelity SelectCo, LLC (2019-present), Co-Head of Equity (2018-present) and is an employee of Fidelity Investments (2013-present). Previously, Ms. Holding served as Chief Investment Officer of Fidelity Institutional Asset Management (2013-2018).
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight, serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. Ms. Smith serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), is an employee of Fidelity Investments (2009-present), and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Assistant Treasurer (2013-2018) and Deputy Treasurer (2013-2016) of certain Fidelity® funds.
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
Jim Wegmann (1979)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Wegmann also serves as Assistant Treasurer of other funds. Mr. Wegmann is an employee of Fidelity Investments (2011-present).
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (February 1, 2019 to July 31, 2019).
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.
| Annualized Expense Ratio-A | Beginning Account Value February 1, 2019 | Ending Account Value July 31, 2019 | Expenses Paid During Period-B February 1, 2019 to July 31, 2019 | |
| Dividend Growth | .50% | |||
| Actual | $1,000.00 | $1,075.60 | $2.57 | |
| Hypothetical-C | $1,000.00 | $1,022.32 | $2.51 | |
| Class K | .39% | |||
| Actual | $1,000.00 | $1,075.70 | $2.01 | |
| Hypothetical-C | $1,000.00 | $1,022.86 | $1.96 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
C 5% return per year before expenses
Distributions (Unaudited)
The Board of Trustees of Fidelity Dividend Growth Fund voted to pay to shareholders of record at the opening of business on record date, the following distributions per share derived from capital gains realized from sales of portfolio securities, and dividends derived from net investment income:
| Pay Date | Record Date | Dividends | Capital Gains | |
| Fidelity Dividend Growth Fund | ||||
| Dividend Growth | 09/16/19 | 09/13/19 | $0.284 | $0.749 |
| Class K | 09/16/19 | 09/13/19 | $0.304 | $0.749 |
The fund hereby designates as a capital gain dividend with respect to the taxable year ended July 31,2019, $303,355,005, or, if subsequently determined to be different, the net capital gain of such year.
Dividend Growth designates 32% and 100% and Class K designates 32% and 100%; of the dividends distributed in September and December, respectively during the fiscal year as qualifying for the dividends–received deduction for corporate shareholders.
Dividend Growth designates 36% and 100% and Class K designates 35% and 100%; of the dividends distributed in September and December, respectively during the fiscal year as amounts which may be taken into account as a dividend for purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code.
The fund will notify shareholders in January 2020 of amounts for use in preparing 2019 income tax returns.
DGF-ANN-0919
1.536090.122
Fidelity® Growth & Income Portfolio Annual Report July 31, 2019 |
|
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of a fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a financial advisor, broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from a fund electronically, by contacting your financial intermediary. For Fidelity customers, visit Fidelity's web site or call Fidelity using the contact information listed below.
You may elect to receive all future reports in paper free of charge. If you wish to continue receiving paper copies of your shareholder reports, you may contact your financial intermediary or, if you are a Fidelity customer, visit Fidelity’s website, or call Fidelity at the applicable toll-free number listed below. Your election to receive reports in paper will apply to all funds held with the fund complex/your financial intermediary.
| Account Type | Website | Phone Number |
| Brokerage, Mutual Fund, or Annuity Contracts: | fidelity.com/mailpreferences | 1-800-343-3548 |
| Employer Provided Retirement Accounts: | netbenefits.fidelity.com/preferences (choose 'no' under Required Disclosures to continue to print) | 1-800-343-0860 |
| Advisor Sold Accounts Serviced Through Your Financial Intermediary: | Contact Your Financial Intermediary | Your Financial Intermediary's phone number |
| Advisor Sold Accounts Serviced by Fidelity: | institutional.fidelity.com | 1-877-208-0098 |
Contents
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-800-544-8544 if you’re an individual investing directly with Fidelity, call 1-800-835-5092 if you’re a plan sponsor or participant with Fidelity as your recordkeeper or call 1-877-208-0098 on institutional accounts or if you’re an advisor or invest through one 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. © 2019 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT. Forms N-PORT are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-PORT 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.institutional.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.
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
| For the periods ended July 31, 2019 | Past 1 year | Past 5 years | Past 10 years |
| Fidelity® Growth & Income Portfolio | 2.26% | 8.31% | 12.48% |
| Class K | 2.35% | 8.44% | 12.63% |
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity® Growth & Income Portfolio, a class of the fund, on July 31, 2009.
The chart shows how the value of your investment would have changed, and also shows how the S&P 500® Index performed over the same period.
See above for additional information regarding the performance of Fidelity® Growth & Income Portfolio.
| Period Ending Values | ||
| $32,421 | Fidelity® Growth & Income Portfolio | |
| $37,171 | S&P 500® Index | |
Management's Discussion of Fund Performance
Market Recap: The U.S. equity bellwether S&P 500® index gained 7.99% for the 12 months ending July 31, 2019, beginning the new year on a high note after enduring a historically volatile final quarter of 2018. Upbeat company earnings/outlooks and signs the Federal Reserve may pause on rates boosted stocks to an all-time high on April 30. In May, however, volatility spiked and stocks returned -6.35% for the month amid the Fed’s decision to hold interest rates steady and signal that it had little appetite to adjust them any time soon, as well as retaliatory tariffs imposed on the U.S. by China. The downtrend was similar to late 2018, when many investors fled from risk assets on elevated concerns about future economic growth, global trade and tighter monetary policy. The bull market roared back in June, with the S&P 500® rising 7.05%, and recorded a series of all-time highs in a productive July (+1.44%). For the full 12 months, growth stocks outpaced value, while large-caps handily bested small-caps. By sector, information technology (+19%) led the way, boosted by continued strength in software & services (+26%), the market’s largest industry segment. Three defensive groups also stood out – real estate (+18%), utilities (+17%) and consumer staples (+15%) – followed by consumer discretionary (+10%) and communication services (+8%). In contrast, energy (-16%) was by far the weakest sector. Other notable laggards included materials (0%), financials (+3%), industrials (+4%) and health care (+4%).Comments from Portfolio Manager Matthew Fruhan: For the fiscal year, the fund's share classes gained roughly 2%, significantly trailing the 7.99% advance of the benchmark S&P 500® index. The fund’s underperformance of the benchmark the past 12 months was due to a combination of sector allocation and security selection.The biggest relative detractors included weak picks in health care and financials, along with large overweight in energy. Conversely, I made good stock choices in the energy and information technology sectors, as well as in communication services. A non-benchmark investment in Bayer (-40%), a German health care and agricultural company, underperformed due to investors' concerns about legal liability cost. An overweight in financial services company State Street (-32%) also detracted, as did investments in the tobacco sector – namely, Altria Group (-15%), one of our largest holdings, and an out-of-benchmark stake in British American Tobacco (-31%). In contrast, media and communication service provider Comcast (+23%), another large holding, was our top contributor, as investors became more comfortable that the company's broadband-service offering could help the company manage through the loss of some legacy cable-subscription business. Another contributor was Qualcomm (+19%), which benefited from resolving a longstanding legal dispute with Apple.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Investment Summary (Unaudited)
Top Ten Stocks as of July 31, 2019
| % of fund's net assets | |
| General Electric Co. | 4.9 |
| Exxon Mobil Corp. | 4.7 |
| Microsoft Corp. | 4.5 |
| Comcast Corp. Class A | 3.9 |
| Altria Group, Inc. | 3.3 |
| Bank of America Corp. | 3.2 |
| Wells Fargo & Co. | 2.6 |
| JPMorgan Chase & Co. | 2.3 |
| Qualcomm, Inc. | 2.2 |
| Apple, Inc. | 1.9 |
| 33.5 |
Top Five Market Sectors as of July 31, 2019
| % of fund's net assets | |
| Financials | 18.2 |
| Health Care | 15.5 |
| Industrials | 15.1 |
| Information Technology | 14.2 |
| Energy | 10.2 |
Asset Allocation (% of fund's net assets)
| As of July 31, 2019 *,** | ||
| Stocks | 95.0% | |
| Convertible Securities | 0.5% | |
| Other Investments | 0.1% | |
| Short-Term Investments and Net Other Assets (Liabilities) | 4.4% | |
* Foreign investments - 11.0%
** Written options - (0.0%)
Percentages shown as 0.0% may reflect amounts less than 0.05%.
Schedule of Investments July 31, 2019
Showing Percentage of Net Assets
| Common Stocks - 95.0% | |||
| Shares | Value (000s) | ||
| COMMUNICATION SERVICES - 8.1% | |||
| Diversified Telecommunication Services - 1.5% | |||
| AT&T, Inc. | 258,415 | $8,799 | |
| Verizon Communications, Inc. | 1,599,074 | 88,381 | |
| 97,180 | |||
| Entertainment - 1.1% | |||
| Activision Blizzard, Inc. | 470,700 | 22,942 | |
| Vivendi SA | 1,615,300 | 45,025 | |
| 67,967 | |||
| Interactive Media & Services - 0.4% | |||
| Alphabet, Inc.: | |||
| Class A (a) | 11,407 | 13,896 | |
| Class C (a) | 11,336 | 13,792 | |
| 27,688 | |||
| Media - 5.1% | |||
| Comcast Corp. Class A | 5,794,100 | 250,131 | |
| Fox Corp. Class A | 586,400 | 21,884 | |
| Interpublic Group of Companies, Inc. | 1,207,300 | 27,671 | |
| Omnicom Group, Inc. | 180,000 | 14,440 | |
| Sinclair Broadcast Group, Inc. Class A | 311,300 | 15,643 | |
| 329,769 | |||
| TOTAL COMMUNICATION SERVICES | 522,604 | ||
| CONSUMER DISCRETIONARY - 1.6% | |||
| Auto Components - 0.1% | |||
| Gentex Corp. | 294,700 | 8,081 | |
| Household Durables - 0.3% | |||
| Whirlpool Corp. | 126,100 | 18,345 | |
| Leisure Products - 0.1% | |||
| Brunswick Corp. | 138,800 | 6,823 | |
| Specialty Retail - 1.0% | |||
| Lowe's Companies, Inc. | 449,479 | 45,577 | |
| TJX Companies, Inc. | 287,700 | 15,697 | |
| 61,274 | |||
| Textiles, Apparel & Luxury Goods - 0.1% | |||
| Puma AG | 9,693 | 679 | |
| PVH Corp. | 57,500 | 5,113 | |
| 5,792 | |||
| TOTAL CONSUMER DISCRETIONARY | 100,315 | ||
| CONSUMER STAPLES - 9.4% | |||
| Beverages - 1.2% | |||
| The Coca-Cola Co. | 1,462,003 | 76,945 | |
| Food & Staples Retailing - 1.9% | |||
| Walgreens Boots Alliance, Inc. | 362,400 | 19,747 | |
| Walmart, Inc. (b) | 956,200 | 105,545 | |
| 125,292 | |||
| Food Products - 1.0% | |||
| Nestle SA sponsored ADR | 296,800 | 31,485 | |
| The Hershey Co. (b) | 100,100 | 15,189 | |
| The Kraft Heinz Co. | 559,900 | 17,922 | |
| 64,596 | |||
| Household Products - 1.3% | |||
| Colgate-Palmolive Co. | 20,100 | 1,442 | |
| Procter & Gamble Co. (b) | 557,315 | 65,785 | |
| Spectrum Brands Holdings, Inc. | 303,700 | 15,218 | |
| 82,445 | |||
| Tobacco - 4.0% | |||
| Altria Group, Inc. | 4,445,900 | 209,269 | |
| British American Tobacco PLC sponsored ADR | 1,360,000 | 48,430 | |
| 257,699 | |||
| TOTAL CONSUMER STAPLES | 606,977 | ||
| ENERGY - 10.1% | |||
| Energy Equipment & Services - 0.4% | |||
| Baker Hughes, a GE Co. Class A | 1,127,600 | 28,630 | |
| Oil, Gas & Consumable Fuels - 9.7% | |||
| BP PLC sponsored ADR (c) | 1,576,255 | 62,640 | |
| Cenovus Energy, Inc. | 37,200 | 345 | |
| Cenovus Energy, Inc. (Canada) | 9,854,400 | 91,615 | |
| Equinor ASA sponsored ADR | 2,797,000 | 49,815 | |
| Exxon Mobil Corp. | 4,088,600 | 304,028 | |
| Galp Energia SGPS SA Class B | 1,093,300 | 17,021 | |
| Hess Corp. | 751,300 | 48,714 | |
| Kosmos Energy Ltd. | 5,111,485 | 30,720 | |
| The Williams Companies, Inc. | 557,865 | 13,746 | |
| Valero Energy Corp. | 37,800 | 3,222 | |
| 621,866 | |||
| TOTAL ENERGY | 650,496 | ||
| FINANCIALS - 18.2% | |||
| Banks - 12.7% | |||
| Bank of America Corp. | 6,694,956 | 205,401 | |
| Citigroup, Inc. (b) | 879,630 | 62,594 | |
| First Hawaiian, Inc. | 380,400 | 10,180 | |
| JPMorgan Chase & Co. | 1,254,192 | 145,486 | |
| M&T Bank Corp. | 63,200 | 10,381 | |
| PNC Financial Services Group, Inc. | 572,854 | 81,861 | |
| SunTrust Banks, Inc. | 1,066,366 | 71,020 | |
| U.S. Bancorp | 979,973 | 56,005 | |
| Wells Fargo & Co. | 3,521,641 | 170,483 | |
| 813,411 | |||
| Capital Markets - 4.1% | |||
| Apollo Global Management LLC Class A | 46,500 | 1,535 | |
| Brookfield Asset Management, Inc. | 48,210 | 2,362 | |
| Cboe Global Markets, Inc. | 45,000 | 4,919 | |
| Charles Schwab Corp. | 444,343 | 19,205 | |
| FS KKR Capital Corp. | 26,109 | 150 | |
| KKR & Co. LP | 855,743 | 22,891 | |
| Lazard Ltd. Class A | 72,300 | 2,799 | |
| Morgan Stanley | 473,397 | 21,095 | |
| Northern Trust Corp. | 963,264 | 94,400 | |
| Oaktree Capital Group LLC Class A | 323,582 | 16,393 | |
| S&P Global, Inc. | 26,400 | 6,467 | |
| State Street Corp. | 1,200,427 | 69,733 | |
| Virtu Financial, Inc. Class A | 103,117 | 2,236 | |
| 264,185 | |||
| Consumer Finance - 0.0% | |||
| Shriram Transport Finance Co. Ltd. | 170,100 | 2,384 | |
| Insurance - 1.1% | |||
| Chubb Ltd. | 176,800 | 27,022 | |
| Marsh & McLennan Companies, Inc. | 204,007 | 20,156 | |
| The Travelers Companies, Inc. | 141,100 | 20,688 | |
| 67,866 | |||
| Thrifts & Mortgage Finance - 0.3% | |||
| Radian Group, Inc. | 795,768 | 18,144 | |
| TOTAL FINANCIALS | 1,165,990 | ||
| HEALTH CARE - 15.1% | |||
| Biotechnology - 1.5% | |||
| AbbVie, Inc. | 255,100 | 16,995 | |
| Alexion Pharmaceuticals, Inc. (a) | 325,700 | 36,899 | |
| Amgen, Inc. | 143,200 | 26,718 | |
| Intercept Pharmaceuticals, Inc. (a) | 218,204 | 13,714 | |
| 94,326 | |||
| Health Care Equipment & Supplies - 0.1% | |||
| Becton, Dickinson & Co. | 9,000 | 2,275 | |
| Boston Scientific Corp. (a) | 188,800 | 8,016 | |
| 10,291 | |||
| Health Care Providers & Services - 6.7% | |||
| AmerisourceBergen Corp. | 529,700 | 46,163 | |
| Cardinal Health, Inc. | 1,022,800 | 46,773 | |
| Cigna Corp. | 369,100 | 62,717 | |
| CVS Health Corp. | 1,931,004 | 107,885 | |
| Humana, Inc. | 36,700 | 10,891 | |
| McKesson Corp. | 562,587 | 78,171 | |
| Patterson Companies, Inc. (c) | 685,070 | 13,564 | |
| UnitedHealth Group, Inc. | 248,300 | 61,829 | |
| 427,993 | |||
| Pharmaceuticals - 6.8% | |||
| Bayer AG | 1,233,686 | 79,905 | |
| Bristol-Myers Squibb Co. | 2,696,110 | 119,734 | |
| Corteva, Inc. | 223,966 | 6,607 | |
| GlaxoSmithKline PLC sponsored ADR | 2,637,112 | 108,860 | |
| Johnson & Johnson | 871,469 | 113,483 | |
| Novartis AG sponsored ADR | 7,344 | 673 | |
| Perrigo Co. PLC | 160,200 | 8,652 | |
| 437,914 | |||
| TOTAL HEALTH CARE | 970,524 | ||
| INDUSTRIALS - 15.0% | |||
| Aerospace & Defense - 1.7% | |||
| General Dynamics Corp. | 155,600 | 28,932 | |
| Huntington Ingalls Industries, Inc. | 71,700 | 16,369 | |
| Meggitt PLC | 4,441 | 32 | |
| United Technologies Corp. | 478,482 | 63,925 | |
| 109,258 | |||
| Air Freight & Logistics - 2.2% | |||
| C.H. Robinson Worldwide, Inc. | 143,000 | 11,973 | |
| Expeditors International of Washington, Inc. | 9,700 | 741 | |
| FedEx Corp. | 50,200 | 8,561 | |
| United Parcel Service, Inc. Class B (b) | 997,304 | 119,148 | |
| 140,423 | |||
| Commercial Services & Supplies - 0.4% | |||
| Healthcare Services Group, Inc. (c) | 435,900 | 10,422 | |
| Interface, Inc. | 650,200 | 9,012 | |
| Ritchie Bros. Auctioneers, Inc. | 19,100 | 690 | |
| Stericycle, Inc. (a) | 125,675 | 5,776 | |
| 25,900 | |||
| Electrical Equipment - 0.6% | |||
| Acuity Brands, Inc. | 123,000 | 16,509 | |
| Hubbell, Inc. Class B | 165,839 | 21,539 | |
| Rockwell Automation, Inc. | 26,000 | 4,180 | |
| 42,228 | |||
| Industrial Conglomerates - 4.9% | |||
| 3M Co. | 13,300 | 2,324 | |
| General Electric Co. | 29,897,727 | 312,431 | |
| 314,755 | |||
| Machinery - 0.9% | |||
| Deere & Co. | 34,500 | 5,715 | |
| Donaldson Co., Inc. | 211,600 | 10,569 | |
| Flowserve Corp. | 356,800 | 17,851 | |
| Wabtec Corp. (c) | 310,690 | 24,134 | |
| 58,269 | |||
| Professional Services - 0.5% | |||
| RELX PLC (London Stock Exchange) | 1,198,067 | 28,462 | |
| Robert Half International, Inc. | 22,100 | 1,335 | |
| 29,797 | |||
| Road & Rail - 3.1% | |||
| J.B. Hunt Transport Services, Inc. | 462,140 | 47,309 | |
| Knight-Swift Transportation Holdings, Inc. Class A | 1,457,700 | 52,244 | |
| Norfolk Southern Corp. | 159,199 | 30,426 | |
| Union Pacific Corp. (b) | 372,300 | 66,995 | |
| 196,974 | |||
| Trading Companies & Distributors - 0.7% | |||
| Fastenal Co. | 183,400 | 5,649 | |
| Watsco, Inc. (b) | 234,792 | 38,182 | |
| 43,831 | |||
| TOTAL INDUSTRIALS | 961,435 | ||
| INFORMATION TECHNOLOGY - 14.2% | |||
| Communications Equipment - 0.3% | |||
| Cisco Systems, Inc. | 406,552 | 22,523 | |
| IT Services - 2.2% | |||
| DXC Technology Co. | 146,900 | 8,193 | |
| IBM Corp. | 66,300 | 9,828 | |
| MasterCard, Inc. Class A | 9,300 | 2,532 | |
| Paychex, Inc. (b) | 148,452 | 12,329 | |
| Unisys Corp. (a) | 838,218 | 10,386 | |
| Visa, Inc. Class A (b) | 556,879 | 99,124 | |
| 142,392 | |||
| Semiconductors & Semiconductor Equipment - 3.2% | |||
| Analog Devices, Inc. | 79,500 | 9,338 | |
| Applied Materials, Inc. | 574,400 | 28,358 | |
| Lam Research Corp. | 61,500 | 12,830 | |
| Marvell Technology Group Ltd. | 173,800 | 4,564 | |
| NVIDIA Corp. | 41,300 | 6,968 | |
| Qualcomm, Inc. | 1,925,946 | 140,902 | |
| 202,960 | |||
| Software - 6.6% | |||
| Microsoft Corp. | 2,099,799 | 286,140 | |
| Oracle Corp. | 1,287,253 | 72,472 | |
| SAP SE sponsored ADR (c) | 515,600 | 63,434 | |
| 422,046 | |||
| Technology Hardware, Storage & Peripherals - 1.9% | |||
| Apple, Inc. | 569,994 | 121,432 | |
| TOTAL INFORMATION TECHNOLOGY | 911,353 | ||
| MATERIALS - 0.8% | |||
| Chemicals - 0.8% | |||
| International Flavors & Fragrances, Inc. (c) | 58,000 | 8,351 | |
| Nutrien Ltd. | 551,880 | 30,258 | |
| The Scotts Miracle-Gro Co. Class A (b) | 115,600 | 12,968 | |
| 51,577 | |||
| REAL ESTATE - 1.5% | |||
| Equity Real Estate Investment Trusts (REITs) - 1.5% | |||
| American Tower Corp. | 132,600 | 28,061 | |
| CoreSite Realty Corp. | 147,700 | 15,480 | |
| Equinix, Inc. | 59,400 | 29,825 | |
| Public Storage | 41,400 | 10,050 | |
| Simon Property Group, Inc. | 64,500 | 10,462 | |
| 93,878 | |||
| UTILITIES - 1.0% | |||
| Electric Utilities - 0.8% | |||
| Duke Energy Corp. | 158,400 | 13,736 | |
| Exelon Corp. | 155,100 | 6,989 | |
| PPL Corp. | 551,000 | 16,326 | |
| Southern Co. (b) | 308,400 | 17,332 | |
| 54,383 | |||
| Multi-Utilities - 0.2% | |||
| Sempra Energy | 85,300 | 11,552 | |
| TOTAL UTILITIES | 65,935 | ||
| TOTAL COMMON STOCKS | |||
| (Cost $5,335,408) | 6,101,084 | ||
| Convertible Preferred Stocks - 0.4% | |||
| HEALTH CARE - 0.3% | |||
| Health Care Equipment & Supplies - 0.3% | |||
| Becton, Dickinson & Co. Series A, 6.125% | 301,400 | 18,560 | |
| INDUSTRIALS - 0.1% | |||
| Trading Companies & Distributors - 0.1% | |||
| Avantor, Inc. Series A 6.25% | 60,400 | 3,718 | |
| TOTAL CONVERTIBLE PREFERRED STOCKS | |||
| (Cost $20,103) | 22,278 | ||
| Principal Amount (000s)(d) | Value (000s) | ||
| Convertible Bonds - 0.1% | |||
| HEALTH CARE - 0.1% | |||
| Biotechnology - 0.0% | |||
| Intercept Pharmaceuticals, Inc. 2% 5/15/26 | 2,100 | 1,842 | |
| Pharmaceuticals - 0.1% | |||
| Bayer Capital Corp. BV 5.625% 11/22/19 (e) | EUR | 6,700 | 5,557 |
| TOTAL CONVERTIBLE BONDS | |||
| (Cost $9,282) | 7,399 | ||
| Shares | Value (000s) | ||
| Other - 0.1% | |||
| ENERGY - 0.1% | |||
| Oil, Gas & Consumable Fuels - 0.1% | |||
| Utica Shale Drilling Program (non-operating revenue interest) (f)(g)(h) | |||
| (Cost $18,052) | 18,052,449 | 8,810 | |
| Money Market Funds - 5.0% | |||
| Fidelity Cash Central Fund 2.43% (i) | 287,952,983 | 288,011 | |
| Fidelity Securities Lending Cash Central Fund 2.43% (i)(j) | 36,119,056 | 36,123 | |
| TOTAL MONEY MARKET FUNDS | |||
| (Cost $324,128) | 324,134 | ||
| TOTAL INVESTMENT IN SECURITIES - 100.6% | |||
| (Cost $5,706,973) | 6,463,705 | ||
| NET OTHER ASSETS (LIABILITIES) - (0.6)% | (39,734) | ||
| NET ASSETS - 100% | $6,423,971 |
| Written Options | ||||||
| Counterparty | Number of Contracts | Notional Amount (000s) | Exercise Price | Expiration Date | Value (000s) | |
| Call Options | ||||||
| Citigroup, Inc. | Chicago Board Options Exchange | 555 | $3,949 | $70.00 | 8/16/19 | $(92) |
| Citigroup, Inc. | Chicago Board Options Exchange | 555 | 3,949 | 72.50 | 8/16/19 | (29) |
| Citigroup, Inc. | Chicago Board Options Exchange | 382 | 2,718 | 72.50 | 9/20/19 | (55) |
| Paychex, Inc. | Chicago Board Options Exchange | 1,471 | 12,217 | 90.00 | 9/20/19 | (29) |
| Procter & Gamble Co. | Chicago Board Options Exchange | 535 | 6,315 | 125.00 | 10/18/19 | (51) |
| Southern Co. | Chicago Board Options Exchange | 614 | 3,451 | 57.50 | 11/15/19 | (75) |
| The Hershey Co. | Chicago Board Options Exchange | 995 | 15,098 | 145.00 | 8/16/19 | (721) |
| The Scotts Miracle-Gro Co. Class A | Chicago Board Options Exchange | 141 | 1,582 | 100.00 | 9/20/19 | (180) |
| Union Pacific Corp. | Chicago Board Options Exchange | 306 | 5,506 | 185.00 | 9/20/19 | (80) |
| United Parcel Service, Inc. Class B | Chicago Board Options Exchange | 458 | 5,472 | 125.00 | 9/20/19 | (55) |
| Visa, Inc. Class A | Chicago Board Options Exchange | 570 | 10,146 | 175.00 | 9/20/19 | (375) |
| Visa, Inc. Class A | Chicago Board Options Exchange | 535 | 9,523 | 190.00 | 9/20/19 | (38) |
| Walmart, Inc. | Chicago Board Options Exchange | 483 | 5,331 | 110.00 | 8/16/19 | (125) |
| Walmart, Inc. | Chicago Board Options Exchange | 483 | 5,331 | 115.00 | 8/16/19 | (36) |
| Walmart, Inc. | Chicago Board Options Exchange | 458 | 5,055 | 115.00 | 10/18/19 | (90) |
| Watsco, Inc. | Chicago Board Options Exchange | 230 | 3,740 | 175.00 | 8/16/19 | (10) |
| TOTAL WRITTEN OPTIONS | $(2,041) |
Currency Abbreviations
EUR – European Monetary Unit
Legend
(a) Non-income producing
(b) Security or a portion of the security is pledged as collateral for call options written. At period end, the value of securities pledged amounted to $99,383,000.
(c) Security or a portion of the security is on loan at period end.
(d) Amount is stated in United States dollars unless otherwise noted.
(e) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $5,557,000 or 0.1% of net assets.
(f) Investment is owned by a wholly-owned subsidiary (Subsidiary) that is treated as a corporation for U.S. tax purposes.
(g) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $8,810,000 or 0.1% of net assets.
(h) Level 3 security
(i) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(j) Investment made with cash collateral received from securities on loan.
Additional information on each restricted holding is as follows:
| Security | Acquisition Date | Acquisition Cost (000s) |
| Utica Shale Drilling Program (non-operating revenue interest) | 10/5/16 - 9/1/17 | $18,052 |
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
| Fund | Income earned |
| (Amounts in thousands) | |
| Fidelity Cash Central Fund | $4,736 |
| Fidelity Securities Lending Cash Central Fund | 331 |
| Total | $5,067 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable. Amount for Fidelity Securities Lending Cash Central Fund 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.
Investment Valuation
The following is a summary of the inputs used, as of July 31, 2019, 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 below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| Valuation Inputs at Reporting Date: | ||||
| Description | Total | Level 1 | Level 2 | Level 3 |
| (Amounts in thousands) | ||||
| Investments in Securities: | ||||
| Equities: | ||||
| Communication Services | $522,604 | $522,604 | $-- | $-- |
| Consumer Discretionary | 100,315 | 100,315 | -- | -- |
| Consumer Staples | 606,977 | 606,977 | -- | -- |
| Energy | 650,496 | 633,475 | 17,021 | -- |
| Financials | 1,165,990 | 1,163,606 | 2,384 | -- |
| Health Care | 989,084 | 890,619 | 98,465 | -- |
| Industrials | 965,153 | 961,435 | 3,718 | -- |
| Information Technology | 911,353 | 911,353 | -- | -- |
| Materials | 51,577 | 51,577 | -- | -- |
| Real Estate | 93,878 | 93,878 | -- | -- |
| Utilities | 65,935 | 65,935 | -- | -- |
| Corporate Bonds | 7,399 | -- | 7,399 | -- |
| Other | 8,810 | -- | -- | 8,810 |
| Money Market Funds | 324,134 | 324,134 | -- | -- |
| Total Investments in Securities: | $6,463,705 | $6,325,908 | $128,987 | $8,810 |
| Derivative Instruments: | ||||
| Liabilities | ||||
| Written Options | $(2,041) | $(2,041) | $-- | $-- |
| Total Liabilities | $(2,041) | $(2,041) | $-- | $-- |
| Total Derivative Instruments: | $(2,041) | $(2,041) | $-- | $-- |
Value of Derivative Instruments
The following table is a summary of the Fund's value of derivative instruments by primary risk exposure as of July 31, 2019. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements.
| Primary Risk Exposure / Derivative Type | Value | |
| Asset | Liability | |
| (Amounts in thousands) | ||
| Equity Risk | ||
| Written Options(a) | $0 | $(2,041) |
| Total Equity Risk | 0 | (2,041) |
| Total Value of Derivatives | $0 | $(2,041) |
(a) Gross value is presented in the Statement of Assets and Liabilities in the written options, at value line-item.
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
| United States of America | 89.0% |
| United Kingdom | 3.9% |
| Germany | 2.2% |
| Canada | 1.9% |
| Others (Individually Less Than 1%) | 3.0% |
| 100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
| Amounts in thousands (except per-share amounts) | July 31, 2019 | |
| Assets | ||
| Investment in securities, at value (including securities loaned of $35,040) — See accompanying schedule: Unaffiliated issuers (cost $5,382,845) | $6,139,571 | |
| Fidelity Central Funds (cost $324,128) | 324,134 | |
| Total Investment in Securities (cost $5,706,973) | $6,463,705 | |
| Restricted cash | 951 | |
| Receivable for investments sold | 7,869 | |
| Receivable for fund shares sold | 857 | |
| Dividends receivable | 7,210 | |
| Interest receivable | 44 | |
| Distributions receivable from Fidelity Central Funds | 603 | |
| Prepaid expenses | 16 | |
| Other receivables | 1,423 | |
| Total assets | 6,482,678 | |
| Liabilities | ||
| Payable for investments purchased | $14,335 | |
| Payable for fund shares redeemed | 2,283 | |
| Accrued management fee | 2,349 | |
| Written options, at value (premium received $1,668) | 2,041 | |
| Other affiliated payables | 844 | |
| Other payables and accrued expenses | 730 | |
| Collateral on securities loaned | 36,125 | |
| Total liabilities | 58,707 | |
| Net Assets | $6,423,971 | |
| Net Assets consist of: | ||
| Paid in capital | $5,623,301 | |
| Total distributable earnings (loss) | 800,670 | |
| Net Assets | $6,423,971 | |
| Net Asset Value and Maximum Offering Price | ||
| Growth and Income: | ||
| Net Asset Value, offering price and redemption price per share ($5,926,671 ÷ 152,061 shares) | $38.98 | |
| Class K: | ||
| Net Asset Value, offering price and redemption price per share ($497,300 ÷ 12,770 shares) | $38.94 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| Amounts in thousands | Year ended July 31, 2019 | |
| Investment Income | ||
| Dividends | $184,142 | |
| Interest | 436 | |
| Income from Fidelity Central Funds (including $331 from security lending) | 5,067 | |
| Total income | 189,645 | |
| Expenses | ||
| Management fee | $28,509 | |
| Transfer agent fees | 9,175 | |
| Accounting and security lending fees | 1,153 | |
| Custodian fees and expenses | 110 | |
| Independent trustees' fees and expenses | 36 | |
| Registration fees | 94 | |
| Audit | 88 | |
| Legal | 17 | |
| Miscellaneous | 45 | |
| Total expenses before reductions | 39,227 | |
| Expense reductions | (221) | |
| Total expenses after reductions | 39,006 | |
| Net investment income (loss) | 150,639 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | 81,538 | |
| Fidelity Central Funds | (11) | |
| Foreign currency transactions | 17 | |
| Written options | 4,307 | |
| Total net realized gain (loss) | 85,851 | |
| Change in net unrealized appreciation (depreciation) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | (97,813) | |
| Fidelity Central Funds | 11 | |
| Assets and liabilities in foreign currencies | 2 | |
| Written options | (515) | |
| Total change in net unrealized appreciation (depreciation) | (98,315) | |
| Net gain (loss) | (12,464) | |
| Net increase (decrease) in net assets resulting from operations | $138,175 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Amounts in thousands | Year ended July 31, 2019 | Year ended July 31, 2018 |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $150,639 | $125,267 |
| Net realized gain (loss) | 85,851 | 961,043 |
| Change in net unrealized appreciation (depreciation) | (98,315) | (182,203) |
| Net increase (decrease) in net assets resulting from operations | 138,175 | 904,107 |
| Distributions to shareholders | (205,560) | – |
| Distributions to shareholders from net investment income | – | (140,988) |
| Total distributions | (205,560) | (140,988) |
| Share transactions - net increase (decrease) | (380,141) | (1,137,673) |
| Total increase (decrease) in net assets | (447,526) | (374,554) |
| Net Assets | ||
| Beginning of period | 6,871,497 | 7,246,051 |
| End of period | $6,423,971 | $6,871,497 |
| Other Information | ||
| Distributions in excess of net investment income end of period | $(8,807) |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Growth & Income Portfolio
| Years ended July 31, | 2019 | 2018 | 2017 | 2016 | 2015 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $39.34 | $35.31 | $30.48 | $30.85 | $29.02 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .87 | .65 | .61 | .59�� | .55 |
| Net realized and unrealized gain (loss) | (.05)B | 4.12 | 4.68 | (.37) | 1.82C |
| Total from investment operations | .82 | 4.77 | 5.29 | .22 | 2.37 |
| Distributions from net investment income | (.77) | (.74) | (.46) | (.58) | (.54) |
| Distributions from net realized gain | (.42) | – | – | (.01) | – |
| Total distributions | (1.18)D | (.74) | (.46) | (.59) | (.54) |
| Net asset value, end of period | $38.98 | $39.34 | $35.31 | $30.48 | $30.85 |
| Total ReturnE | 2.26%B | 13.66% | 17.48% | .88% | 8.23%C |
| Ratios to Average Net AssetsF,G | |||||
| Expenses before reductions | .61% | .61% | .63% | .64% | .64% |
| Expenses net of fee waivers, if any | .61% | .61% | .63% | .64% | .63% |
| Expenses net of all reductions | .61% | .61% | .63% | .64% | .63% |
| Net investment income (loss) | 2.31% | 1.76% | 1.84% | 2.05% | 1.83% |
| Supplemental Data | |||||
| Net assets, end of period (in millions) | $5,927 | $6,280 | $6,356 | $5,529 | $6,563 |
| Portfolio turnover rateH | 36% | 38% | 37% | 29% | 35% |
A Calculated based on average shares outstanding during the period.
B Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.05 per share. Excluding these litigation proceeds, the total return would have been 2.14%
C Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.06 per share. Excluding these litigation proceeds, the total return would have been 8.03%
D Total distributions of $1.18 per share is comprised of distributions from net investment income of $.765 and distributions from net realized gain of $.419 per share.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
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 Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Growth & Income Portfolio Class K
| Years ended July 31, | 2019 | 2018 | 2017 | 2016 | 2015 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $39.31 | $35.28 | $30.46 | $30.82 | $29.00 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .91 | .69 | .65 | .62 | .59 |
| Net realized and unrealized gain (loss) | (.06)B | 4.12 | 4.67 | (.35) | 1.81C |
| Total from investment operations | .85 | 4.81 | 5.32 | .27 | 2.40 |
| Distributions from net investment income | (.81) | (.78) | (.50) | (.62) | (.58) |
| Distributions from net realized gain | (.42) | – | – | (.01) | – |
| Total distributions | (1.22)D | (.78) | (.50) | (.63) | (.58) |
| Net asset value, end of period | $38.94 | $39.31 | $35.28 | $30.46 | $30.82 |
| Total ReturnE | 2.35%B | 13.79% | 17.60% | 1.04% | 8.34%C |
| Ratios to Average Net AssetsF,G | |||||
| Expenses before reductions | .51% | .51% | .52% | .52% | .52% |
| Expenses net of fee waivers, if any | .51% | .51% | .52% | .52% | .52% |
| Expenses net of all reductions | .50% | .50% | .52% | .52% | .52% |
| Net investment income (loss) | 2.41% | 1.86% | 1.95% | 2.17% | 1.95% |
| Supplemental Data | |||||
| Net assets, end of period (in millions) | $497 | $591 | $890 | $765 | $862 |
| Portfolio turnover rateH | 36% | 38% | 37% | 29% | 35% |
A Calculated based on average shares outstanding during the period.
B Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.05 per share. Excluding these litigation proceeds, the total return would have been 2.23%
C Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.06 per share. Excluding these litigation proceeds, the total return would have been 8.14%
D Total distributions of $1.22 per share is comprised of distributions from net investment income of $.805 and distributions from net realized gain of $.419 per share.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
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 Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended July 31, 2019
(Amounts in thousands except percentages)
1. Organization.
Fidelity Growth & Income Portfolio (the Fund) is a fund of Fidelity Securities Fund (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Growth & Income and Class K shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date ranged from less than .005% to .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investments Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. Corporate bonds are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Exchange-traded options are valued using the last sale price or, in the absence of a sale, the last offering price and are categorized as Level 1 in the hierarchy. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of July 31, 2019 is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain. Debt obligations may be placed on non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivables when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is reasonably assured.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan) for the Fund, certain independent Trustees have elected to defer receipt of a portion of their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees of $624 are included in the accompanying Statement of Assets and Liabilities in other receivables and other payables and accrued expenses, respectively.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. As of July 31, 2019, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, partnerships, certain conversion ratio adjustments, equity-debt classifications, deferred trustees compensation and losses deferred due to wash sales and excise tax regulations.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
| Gross unrealized appreciation | $1,211,853 |
| Gross unrealized depreciation | (463,482) |
| Net unrealized appreciation (depreciation) | $748,371 |
| Tax Cost | $5,713,293 |
The tax-based components of distributable earnings as of period end were as follows:
| Undistributed ordinary income | $9,026 |
| Undistributed long-term capital gain | $48,325 |
| Net unrealized appreciation (depreciation) on securities and other investments | $748,358 |
The Fund intends to elect to defer to its next fiscal year $4,414 of capital losses recognized during the period November 1, 2018 to July 31, 2019.
The tax character of distributions paid was as follows:
| July 31, 2019 | July 31, 2018 | |
| Ordinary Income | $141,490 | $ 140,988 |
| Long-term Capital Gains | 64,070 | – |
| Total | $205,560 | $ 140,988 |
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
Consolidated Subsidiary. The Fund invests in certain investments through a wholly-owned subsidiary ("Subsidiary"), which may be subject to federal and state taxes upon disposition.
As of period end, the Fund held an investment of $9,761 in this Subsidiary, representing .15% of the Fund's net assets. The financial statements have been consolidated and include accounts of the Fund and the Subsidiary. Accordingly, all inter-company transactions and balances have been eliminated.
Any cash held by the Subsidiary is restricted as to its use and is presented as Restricted cash in the Statement of Assets and Liabilities.
New Rule Issuance. During August 2018, the U.S. Securities and Exchange Commission issued Final Rule Release No. 33-10532, Disclosure Update and Simplification. This Final Rule includes amendments specific to registered investment companies that are intended to eliminate overlap in disclosure requirements between Regulation S-X and GAAP. In accordance with these amendments, certain line-items in the Fund's financial statements have been combined or removed for the current period as outlined in the table below.
| Financial Statement | Current Line-Item Presentation (As Applicable) | Prior Line-Item Presentation (As Applicable) |
| Statement of Assets and Liabilities | Total distributable earnings (loss) | Undistributed/Distributions in excess of/Accumulated net investment income (loss) Accumulated/Undistributed net realized gain (loss) Net unrealized appreciation (depreciation) |
| Statement of Changes in Net Assets | N/A - removed | Undistributed/Distributions in excess of/Accumulated net investment income (loss) end of period |
| Statement of Changes in Net Assets | Distributions to shareholders | Distributions to shareholders from net investment income Distributions to shareholders from net realized gain |
| Distributions to Shareholders Note to Financial Statements | Distributions to shareholders | Distributions to shareholders from net investment income Distributions to shareholders from net realized gain |
4. Derivative Instruments.
Risk Exposures and the Use of Derivative Instruments. The Fund's investment objective allows the Fund to enter into various types of derivative contracts, including options. Derivatives are investments whose value is primarily derived from underlying assets, indices or reference rates and may be transacted on an exchange or over-the-counter (OTC). Derivatives may involve a future commitment to buy or sell a specified asset based on specified terms, to exchange future cash flows at periodic intervals based on a notional principal amount, or for one party to make one or more payments upon the occurrence of specified events in exchange for periodic payments from the other party.
The Fund used derivatives to increase returns and to manage exposure to certain risks as defined below. The success of any strategy involving derivatives depends on analysis of numerous economic factors, and if the strategies for investment do not work as intended, the Fund may not achieve its objectives.
The Fund's use of derivatives increased or decreased its exposure to the following risk:
| Equity Risk | Equity risk relates to the fluctuations in the value of financial instruments as a result of changes in market prices (other than those arising from interest rate risk or foreign exchange risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment. |
The Fund is also exposed to additional risks from investing in derivatives, such as liquidity risk and counterparty credit risk. Liquidity risk is the risk that the Fund will be unable to close out the derivative in the open market in a timely manner. Counterparty credit risk is the risk that the counterparty will not be able to fulfill its obligation to the Fund. Derivative counterparty credit risk is managed through formal evaluation of the creditworthiness of all potential counterparties. On certain OTC derivatives such as options, the Fund attempts to reduce its exposure to counterparty credit risk by entering into an International Swaps and Derivatives Association, Inc. (ISDA) Master Agreement with each of its counterparties. The ISDA Master Agreement gives the Fund the right to terminate all transactions traded under such agreement upon the deterioration in the credit quality of the counterparty beyond specified levels. The ISDA Master Agreement gives each party the right, upon an event of default by the other party or a termination of the agreement, to close out all transactions traded under such agreement and to net amounts owed under each transaction to one net payable by one party to the other. To mitigate counterparty credit risk on bi-lateral OTC derivatives, the Fund receives collateral in the form of cash or securities once the Fund's net unrealized appreciation on outstanding derivative contracts under an ISDA Master Agreement exceeds certain applicable thresholds, subject to certain minimum transfer provisions. The collateral received is held in segregated accounts with the Fund's custodian bank in accordance with the collateral agreements entered into between the Fund, the counterparty and the Fund's custodian bank. The Fund could experience delays and costs in gaining access to the collateral even though it is held by the Fund's custodian bank. The Fund's maximum risk of loss from counterparty credit risk related to bi-lateral OTC derivatives is generally the aggregate unrealized appreciation and unpaid counterparty payments in excess of any collateral pledged by the counterparty to the Fund. The Fund may be required to pledge collateral for the benefit of the counterparties on bi-lateral OTC derivatives in an amount not less than each counterparty's unrealized appreciation on outstanding derivative contracts, subject to certain minimum transfer provisions, and any such pledged collateral is identified in the Schedule of Investments. Counterparty credit risk related to exchange-traded options may be mitigated by the protection provided by the exchange on which they trade.
Investing in derivatives may involve greater risks than investing in the underlying assets directly and, to varying degrees, may involve risk of loss in excess of any initial investment and collateral received and amounts recognized in the Statement of Assets and Liabilities. In addition, there may be the risk that the change in value of the derivative contract does not correspond to the change in value of the underlying instrument.
Options. Options give the purchaser the right, but not the obligation, to buy (call) or sell (put) an underlying security or financial instrument at an agreed exercise or strike price between or on certain dates. Options obligate the seller (writer) to buy (put) or sell (call) an underlying instrument at the exercise or strike price or cash settle an underlying derivative instrument if the holder exercises the option on or before the expiration date.
The Fund used exchange-traded and OTC written covered call options to manage its exposure to the market. When the Fund writes a covered call option, the Fund holds the underlying instrument which must be delivered to the holder upon the exercise of the option.
Upon entering into a written options contract, the Fund will receive a premium. Premiums received are reflected as a liability on the Statement of Assets and Liabilities. Options are valued daily and any unrealized appreciation (depreciation) is reflected on the Statement of Assets and Liabilities. When a written option is exercised, the premium is added to the proceeds from the sale of the underlying instrument in determining the gain or loss realized on that investment. When an option is closed the Fund will realize a gain or loss depending on whether the proceeds or amount paid for the closing sale transaction are greater or less than the premium received. When an option expires, gains and losses are realized to the extent of premiums received. The net realized gain (loss) on closed and expired written options and the change in net unrealized appreciation (depreciation) on written options are presented in the Statement of Operations.
Writing call options tends to decrease exposure to the underlying instrument and risk of loss is the change in value in excess of the premium received.
Any open options at period end are presented in the Schedule of Investments under the caption "Written Options" and are representative of volume of activity during the period.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $2,263,973 and $2,928,811, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .20% of the Fund's average net assets and an annualized group fee rate that averaged .24% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annual management fee rate was .44% of the Fund's average net assets.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of Growth & Income, except for Class K. FIIOC receives an asset-based fee of Class K's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
| Amount | % of Class-Level Average Net Assets | |
| Growth and Income | $8,898 | .15 |
| Class K | 277 | .05 |
| $9,175 |
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Prior to April 1, 2019, FSC had a separate agreement with the Fund for administration of the security lending program, based on the number and duration of lending transactions. For the period, the total fees paid for accounting and administration of securities lending were equivalent to an annual rate of .02%.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $59 for the period.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
Other. During the period, the investment adviser reimbursed the Fund for certain losses in the amount of $13.
7. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $18 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
8. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. For equity securities, lending agents are used, including National Financial Services (NFS), an affiliate of the Fund. Pursuant to a securities lending agreement, NFS will receive a fee, which is capped at 9.9% of daily lending revenue, for its services as lending agent. The Fund may lend securities to certain qualified borrowers, including NFS. 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. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Total fees paid by the Fund to NFS, as a lending agent, amounted to less than five hundred dollars. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. During the period, there were no securities loaned to NFS.
9. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $158 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses. During the period, custodian credits reduced the Fund's expenses by $6. During the period, transfer agent credits reduced each class' expenses as noted in the table below.
| Expense reduction | |
| Growth and Income | $8 |
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $49.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Year ended July 31, 2019 | Year ended July 31, 2018 | |
| Distributions to shareholders | ||
| Growth and Income | $184,494 | $– |
| Class K | 21,066 | – |
| Total | $205,560 | $– |
| From net investment income | ||
| Growth and Income | $– | $124,875 |
| Class K | – | 16,113 |
| Total | $– | $140,988 |
11. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
| Shares | Shares | Dollars | Dollars | |
| Year ended July 31, 2019 | Year ended July 31, 2018 | Year ended July 31, 2019 | Year ended July 31, 2018 | |
| Growth and Income | ||||
| Shares sold | 4,033 | 5,407 | $152,368 | $201,160 |
| Reinvestment of distributions | 4,678 | 3,205 | 174,463 | 118,260 |
| Shares redeemed | (16,278) | (28,976) | (613,720) | (1,077,783) |
| Net increase (decrease) | (7,567) | (20,364) | $(286,889) | $(758,363) |
| Class K | ||||
| Shares sold | 7,816 | 2,738 | $289,822 | $101,861 |
| Reinvestment of distributions | 570 | 438 | 21,066 | 16,113 |
| Shares redeemed | (10,656) | (13,364) | (404,140) | (497,284) |
| Net increase (decrease) | (2,270) | (10,188) | $(93,252) | $(379,310) |
12. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Fidelity Securities Fund and Shareholders of Fidelity Growth & Income Portfolio:
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Fidelity Growth & Income Portfolio (one of the funds constituting Fidelity Securities Fund, referred to hereafter as the “Fund”) as of July 31, 2019, the related statement of operations for the year ended July 31, 2019, the statement of changes in net assets for each of the two years in the period ended July 31, 2019, including the related notes, and the financial highlights for each of the five years in the period ended July 31, 2019 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of July 31, 2019, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended July 31, 2019 and the financial highlights for each of the five years in the period ended July 31, 2019 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of July 31, 2019 by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Boston, Massachusetts
September 12, 2019
We have served as the auditor of one or more investment companies in the Fidelity group of funds since 1932.
Trustees and Officers
The Trustees, Members of the Advisory Board (if any), and officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Except for Jonathan Chiel, each of the Trustees oversees 298 funds. Mr. Chiel oversees 170 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the fund is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund's Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544 if you’re an individual investing directly with Fidelity, call 1-800-835-5092 if you’re a plan sponsor or participant with Fidelity as your recordkeeper or call 1-877-208-0098 on institutional accounts or if you’re an advisor or invest through one.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Board Structure and Oversight Function. James C. Curvey is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Ned C. Lautenbach serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and other equity funds. The asset allocation funds may invest in Fidelity® funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Jonathan Chiel (1957)
Year of Election or Appointment: 2016
Trustee
Mr. Chiel also serves as Trustee of other Fidelity® funds. Mr. Chiel is Executive Vice President and General Counsel for FMR LLC (diversified financial services company, 2012-present). Previously, Mr. Chiel served as general counsel (2004-2012) and senior vice president and deputy general counsel (2000-2004) for John Hancock Financial Services; a partner with Choate, Hall & Stewart (1996-2000) (law firm); and an Assistant United States Attorney for the United States Attorney’s Office of the District of Massachusetts (1986-95), including Chief of the Criminal Division (1993-1995). Mr. Chiel is a director on the boards of the Boston Bar Foundation and the Maimonides School.
James C. Curvey (1935)
Year of Election or Appointment: 2007
Trustee
Chairman of the Board of Trustees
Mr. Curvey also serves as Trustee of other Fidelity® funds. Mr. Curvey is Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey is an Overseer Emeritus for the Boston Symphony Orchestra, a Director of Artis-Naples, and a Trustee of Brewster Academy in Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-2018), Director of Fidelity Investments Money Management, Inc. (investment adviser firm, 2009-2014) and a Director of FMR and FMR Co., Inc. (investment adviser firms, 2007-2014).
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), as a member of the Independent Directors Council (IDC) Governing Council (2010-2015), and as a member of the Board of Directors for The Brookville Center for Children’s Services, Inc. (2009-2017). Mr. Dirks is a member of the Finance Committee (2016-present) and Board of Directors (2017-present) and is Treasurer (2018-present) of the Asolo Repertory Theatre.
Donald F. Donahue (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Donahue also serves as a Trustee of other Fidelity® funds. Mr. Donahue is President and Chief Executive Officer of Miranda Partners, LLC (risk consulting for the financial services industry, 2012-present). Previously, Mr. Donahue served as a Member of the Advisory Board of certain Fidelity® funds (2015-2018) and Chief Executive Officer (2006-2012), Chief Operating Officer (2003-2006), and Managing Director, Customer Marketing and Development (1999-2003) of The Depository Trust & Clearing Corporation (financial markets infrastructure). Mr. Donahue serves as a Member (2007-present) and Co-Chairman (2016-present) of the Board of Directors of United Way of New York, Member of the Board of Directors of NYC Leadership Academy (2012-present) and Member of the Board of Advisors of Ripple Labs, Inc. (financial services, 2015-present). He also served as Chairman (2010-2012) and Member of the Board of Directors (2012-2013) of Omgeo, LLC (financial services), Treasurer of United Way of New York (2012-2016), and Member of the Board of Directors of XBRL US (financial services non-profit, 2009-2012) and the International Securities Services Association (2009-2012).
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2014-2017) and a member (2010-2017) of the Board of Directors of Dave & Buster’s Entertainment, Inc. (restaurant and entertainment complexes), as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association, and as a member of the Board of Directors for The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), Earth Fare, Inc. (retail grocery, 2010-2014), and The Western Union Company (global money transfer, 2006-2011).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as Chair (2018-present) and Member (2013-present) of the Board of Governors, State University System of Florida and is a member of the Council on Foreign Relations (1994-present). He is also a member and has most recently served as Chairman of the Board of Directors of Artis-Naples (2012-present). Previously, Mr. Lautenbach served as a member and then Lead Director of the Board of Directors of Eaton Corporation (diversified industrial, 1997-2016). He was also a Partner and Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007). In addition, Mr. Lautenbach also had a 30-year career with IBM (technology company) during which time he served as Senior Vice President and a member of the Corporate Executive Committee (1968-1998).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-2018).
Cornelia M. Small (1944)
Year of Election or Appointment: 2005
Trustee
Ms. Small also serves as Trustee of other Fidelity® funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.
Garnett A. Smith (1947)
Year of Election or Appointment: 2018
Trustee
Mr. Smith also serves as Trustee of other Fidelity® funds. Prior to Mr. Smith's retirement, he served as Chairman and Chief Executive Officer of Inbrand Corp. (manufacturer of personal absorbent products, 1990-1997). He also served as President (1986-1990) of Inbrand Corp. Prior to his employment with Inbrand Corp., he was employed by a retail fabric chain and North Carolina National Bank. In addition, Mr. Smith served as a Member of the Advisory Board of certain Fidelity® funds (2012-2013) and as a board member of the Jackson Hole Land Trust (2009-2012).
David M. Thomas (1949)
Year of Election or Appointment: 2008
Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present) and as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), a Director of Fortune Brands, Inc. (consumer products, 2000-2011), and a member of the Board of Trustees of the University of Florida (2013-2018).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Advisory Board Members and Officers:
Correspondence intended for a Member of the Advisory Board (if any) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235. Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Vicki L. Fuller (1957)
Year of Election or Appointment: 2018
Member of the Advisory Board
Ms. Fuller also serves as Member of the Advisory Board of other Fidelity® funds. Ms. Fuller serves as a member of the Board of Directors, Audit Committee, and Nominating and Governance Committee of The Williams Companies, Inc. (natural gas infrastructure, 2018-present). Previously, Ms. Fuller served as the Chief Investment Officer of the New York State Common Retirement Fund (2012-2018) and held a variety of positions at AllianceBernstein L.P. (global asset management, 1985-2012), including Managing Director (2006-2012) and Senior Vice President and Senior Portfolio Manager (2001-2006).
Peter S. Lynch (1944)
Year of Election or Appointment: 2003
Member of the Advisory Board
Mr. Lynch also serves as Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of FMR (investment adviser firm) and FMR Co., Inc. (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).
Michael E. Wiley (1950)
Year of Election or Appointment: 2018
Member of the Advisory Board
Mr. Wiley also serves as Trustee or Member of the Advisory Board of other Fidelity® funds. Mr. Wiley serves as a Director of High Point Resources (exploration and production, 2005-present). Previously, Mr. Wiley served as a Director of Andeavor Corporation (independent oil refiner and marketer, 2005-2018), a Director of Andeavor Logistics LP (natural resources logistics, 2015-2018), a Director of Post Oak Bank (privately-held bank, 2004-2018), a Director of Asia Pacific Exploration Consolidated (international oil and gas exploration and production, 2008-2013), a member of the Board of Trustees of the University of Tulsa (2000-2006; 2007-2010), a Senior Energy Advisor of Katzenbach Partners, LLC (consulting, 2006-2007), an Advisory Director of Riverstone Holdings (private investment), a Director of Spinnaker Exploration Company (exploration and production, 2001-2005) and Chairman, President, and CEO of Baker Hughes, Inc. (oilfield services, 2000-2004).
Elizabeth Paige Baumann (1968)
Year of Election or Appointment: 2017
Anti-Money Laundering (AML) Officer
Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer (2012-present) and Senior Vice President (2014-present) of FMR LLC (diversified financial services company) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as AML Officer of the funds (2012-2016), and Vice President (2007-2014) and Deputy Anti-Money Laundering Officer (2007-2012) of FMR LLC.
Craig S. Brown (1977)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Brown also serves as Assistant Treasurer of other funds. Mr. Brown is an employee of Fidelity Investments (2013-present).
John J. Burke III (1964)
Year of Election or Appointment: 2018
Chief Financial Officer
Mr. Burke also serves as Chief Financial Officer of other funds. Mr. Burke serves as Head of Investment Operations for Fidelity Fund and Investment Operations (2018-present) and is an employee of Fidelity Investments (1998-present). Previously Mr. Burke served as head of Asset Management Investment Operations (2012-2018).
William C. Coffey (1969)
Year of Election or Appointment: 2018
Secretary and Chief Legal Officer (CLO)
Mr. Coffey also serves as Secretary and CLO of other funds. Mr. Coffey serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2018-present); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2018-present); and CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2018-present). He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Assistant Secretary of certain funds (2009-2018) and as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Timothy M. Cohen (1969)
Year of Election or Appointment: 2018
Vice President
Mr. Cohen also serves as Vice President of other funds. Mr. Cohen serves as Executive Vice President of Fidelity SelectCo, LLC (2019-present), Co-Head of Equity (2018-present), a Director of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present), and is an employee of Fidelity Investments. Previously, Mr. Cohen served as Head of Global Equity Research (2016-2018), Chief Investment Officer - Equity and a Director of Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2013-2015) and as a Director of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2017).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds. Mr. Davis serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present), and is an employee of Fidelity Investments (2008-present). Previously, Mr. Deberghes served as President and Treasurer of certain Fidelity® funds (2013-2018). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). Previously, Mr. Deberghes served in other fund officer roles.
Laura M. Del Prato (1964)
Year of Election or Appointment: 2018
Assistant Treasurer
Ms. Del Prato also serves as an officer of other funds. Ms. Del Prato is an employee of Fidelity Investments (2017-present). Prior to joining Fidelity Investments, Ms. Del Prato served as a Managing Director and Treasurer of the JPMorgan Mutual Funds (2014-2017). Prior to JPMorgan, Ms. Del Prato served as a partner at Cohen Fund Audit Services (accounting firm, 2012-2013) and KPMG LLP (accounting firm, 2004-2012).
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2005-present). Previously, Mr. Hogan served as Assistant Treasurer of certain Fidelity® funds (2016-2018).
Pamela R. Holding (1964)
Year of Election or Appointment: 2018
Vice President
Ms. Holding also serves as Vice President of other funds. Ms. Holding serves as Executive Vice President of Fidelity SelectCo, LLC (2019-present), Co-Head of Equity (2018-present) and is an employee of Fidelity Investments (2013-present). Previously, Ms. Holding served as Chief Investment Officer of Fidelity Institutional Asset Management (2013-2018).
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight, serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. Ms. Smith serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), is an employee of Fidelity Investments (2009-present), and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Assistant Treasurer (2013-2018) and Deputy Treasurer (2013-2016) of certain Fidelity® funds.
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
Jim Wegmann (1979)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Wegmann also serves as Assistant Treasurer of other funds. Mr. Wegmann is an employee of Fidelity Investments (2011-present).
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (February 1, 2019 to July 31, 2019).
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.
| Annualized Expense Ratio-A | Beginning Account Value February 1, 2019 | Ending Account Value July 31, 2019 | Expenses Paid During Period-B February 1, 2019 to July 31, 2019 | |
| Growth and Income | .61% | |||
| Actual | $1,000.00 | $1,083.90 | $3.15 | |
| Hypothetical-C | $1,000.00 | $1,021.77 | $3.06 | |
| Class K | .51% | |||
| Actual | $1,000.00 | $1,084.20 | $2.64 | |
| Hypothetical-C | $1,000.00 | $1,022.27 | $2.56 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
C 5% return per year before expenses
Distributions (Unaudited)
The Board of Trustees of Fidelity Growth & Income Portfolio voted to pay to shareholders of record at the opening of business on record date, the following distributions per share derived from capital gains realized from sales of portfolio securities:
| Pay Date | Record Date | Capital Gains | |
| Fidelity Growth & Income Portfolio | |||
| Growth & Income | 09/09/2019 | 09/06/2019 | $0.297 |
| Class K | 09/09/2019 | 09/06/2019 | $0.297 |
The fund hereby designates as a capital gain dividend with respect to the taxable year ended July 31, 2019, $113,806,935, or, if subsequently determined to be different, the net capital gain of such year.
A total of 0.70% of the dividends distributed during the fiscal year was derived from interest on U.S. Government securities which is generally exempt from state income tax.
Growth & Income and Class K designate the below percentage of the dividends distributed during the fiscal year as qualifying for the dividends–received deduction for corporate shareholders:
| Ex Date | Percentage | |
| Fidelity Growth & Income Portfolio | ||
| Growth & Income | 09/07/2018 | 100% |
| Growth & Income | 10/05/2018 | 99% |
| Growth & Income | 12/07/2018 | 99% |
| Growth & Income | 04/05/2019 | 100% |
| Growth & Income | 07/05/2019 | 100% |
| Class K | 09/07/2018 | 100% |
| Class K | 10/05/2018 | 96% |
| Class K | 12/07/2018 | 94% |
| Class K | 04/05/2019 | 100% |
| Class K | 07/05/2019 | 100% |
Growth & Income, and Class K designate 100% of dividends distributed during the fiscal year as amounts which may be taken into account as a dividend for purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code.
The fund will notify shareholders in January 2020 of amounts for use in preparing 2019 income tax returns.
GAI-ANN-0919
1.536189.122
Fidelity® Leveraged Company Stock Fund Annual Report July 31, 2019 |
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Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of a fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a financial advisor, broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from a fund electronically, by contacting your financial intermediary. For Fidelity customers, visit Fidelity's web site or call Fidelity using the contact information listed below.
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Contents
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-800-544-8544 if you’re an individual investing directly with Fidelity, call 1-800-835-5092 if you’re a plan sponsor or participant with Fidelity as your recordkeeper or call 1-877-208-0098 on institutional accounts or if you’re an advisor or invest through one to request a free copy of the proxy voting guidelines.
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Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2019 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT. Forms N-PORT are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-PORT 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.institutional.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.
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
| For the periods ended July 31, 2019 | Past 1 year | Past 5 years | Past 10 years |
| Fidelity® Leveraged Company Stock Fund | 1.93% | 4.90% | 11.88% |
| Class K | 2.03% | 5.02% | 12.03% |
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity® Leveraged Company Stock Fund, a class of the fund, on July 31, 2009.
The chart shows how the value of your investment would have changed, and also shows how the S&P 500® Index performed over the same period.
| Period Ending Values | ||
| $30,725 | Fidelity® Leveraged Company Stock Fund | |
| $37,171 | S&P 500® Index | |
Management's Discussion of Fund Performance
Market Recap: The U.S. equity bellwether S&P 500® index gained 7.99% for the 12 months ending July 31, 2019, beginning the new year on a high note after enduring a historically volatile final quarter of 2018. Upbeat company earnings/outlooks and signs the Federal Reserve may pause on rates boosted stocks to an all-time high on April 30. In May, however, volatility spiked and stocks returned -6.35% for the month amid the Fed’s decision to hold interest rates steady and signal that it had little appetite to adjust them any time soon, as well as retaliatory tariffs imposed on the U.S. by China. The downtrend was similar to late 2018, when many investors fled from risk assets on elevated concerns about future economic growth, global trade and tighter monetary policy. The bull market roared back in June, with the S&P 500® rising 7.05%, and recorded a series of all-time highs in a productive July (+1.44%). For the full 12 months, growth stocks outpaced value, while large-caps handily bested small-caps. By sector, information technology (+19%) led the way, boosted by continued strength in software & services (+26%), the market’s largest industry segment. Three defensive groups also stood out – real estate (+18%), utilities (+17%) and consumer staples (+15%) – followed by consumer discretionary (+10%) and communication services (+8%). In contrast, energy (-16%) was by far the weakest sector. Other notable laggards included materials (0%), financials (+3%), industrials (+4%) and health care (+4%).Comments from Portfolio Manager Mark Notkin: For the fiscal year, the fund's share classes gained about 2%, lagging the benchmark S&P 500® and topping the -6.09% return of the Credit Suisse Leveraged Equity Index. We feel the latter index represents a better basis for comparison, given the fund’s mandate to primarily invest in the common stocks of leveraged companies. The fund's underperformance of the S&P 500 the past 12 months was mostly due to four gaming-related stocks: Penn National Gaming (-40%), Boyd Gaming (-29%), Melco Resorts & Entertainment (-37%) and Scientific Games (-55%), the latter two of which were not held at period end. The main reason for the downtrend is that many gaming companies operate casinos in China’s Macau region. China, more broadly, has seen a slowdown in its economy and stock market, which, in turn, has stifled customer visits. Trade tension with the U.S. has been another negative factor. The largest individual relative detractor was Chemours. Shares of the chemical maker returned -56%, tumbling in May after the firm reported a decline in earnings. Conversely, the transportation industry was an area of strength, led by Air Canada (+90%). We believe the company, our largest period-end holding, has some unique growth opportunities and faces minimal competition. The fund’s relative result also benefited from Brazil’s JBS (+172%), a large meatpacking company and major protein producer in the United States. Fundamentals for the meat industry remained strong the past 12 months. All of the stocks mentioned were non-benchmark holdings.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Note to shareholders: Effective October 1, 2019, the fund's primary benchmark will change from the S&P 500® index to the Russell MidCap® Index, and the fund's supplemental benchmark will change from the Credit Suisse Leveraged Equity Index to the Fidelity U.S. Leveraged Stock Index.Investment Summary (Unaudited)
Top Ten Stocks as of July 31, 2019
| % of fund's net assets | |
| Air Canada | 4.5 |
| Alibaba Group Holding Ltd. sponsored ADR | 3.4 |
| Eldorado Resorts, Inc. | 3.3 |
| Global Payments, Inc. | 3.0 |
| JBS SA | 2.9 |
| Adobe, Inc. | 2.7 |
| Boyd Gaming Corp. | 2.6 |
| Alphabet, Inc. Class A | 2.6 |
| IQVIA Holdings, Inc. | 2.6 |
| Microchip Technology, Inc. | 2.6 |
| 30.2 |
Top Five Market Sectors as of July 31, 2019
| % of fund's net assets | |
| Information Technology | 29.1 |
| Consumer Discretionary | 15.5 |
| Industrials | 14.0 |
| Communication Services | 11.8 |
| Health Care | 9.2 |
Asset Allocation (% of fund's net assets)
| As of July 31, 2019* | ||
| Stocks | 96.6% | |
| Short-Term Investments and Net Other Assets (Liabilities) | 3.4% | |
* Foreign investments - 15.4%
Schedule of Investments July 31, 2019
Showing Percentage of Net Assets
| Common Stocks - 96.6% | |||
| Shares | Value (000s) | ||
| COMMUNICATION SERVICES - 11.8% | |||
| Interactive Media & Services - 3.7% | |||
| Alphabet, Inc. Class A (a) | 48,500 | $59,083 | |
| Facebook, Inc. Class A (a) | 140,000 | 27,192 | |
| 86,275 | |||
| Media - 5.8% | |||
| Altice U.S.A., Inc. Class A (a) | 1,829,600 | 47,222 | |
| Comcast Corp. Class A | 878,300 | 37,916 | |
| Nexstar Broadcasting Group, Inc. Class A | 305,898 | 31,131 | |
| Sinclair Broadcast Group, Inc. Class A | 318,700 | 16,015 | |
| 132,284 | |||
| Wireless Telecommunication Services - 2.3% | |||
| T-Mobile U.S., Inc. (a) | 653,000 | 52,064 | |
| TOTAL COMMUNICATION SERVICES | 270,623 | ||
| CONSUMER DISCRETIONARY - 15.5% | |||
| Hotels, Restaurants & Leisure - 9.1% | |||
| Boyd Gaming Corp. | 2,264,500 | 59,987 | |
| Eldorado Resorts, Inc. (a)(b) | 1,659,380 | 74,871 | |
| Penn National Gaming, Inc. (a) | 1,067,700 | 20,842 | |
| Red Rock Resorts, Inc. | 715,947 | 14,920 | |
| Royal Caribbean Cruises Ltd. | 214,400 | 24,943 | |
| Studio City International Holdings Ltd. ADR | 695,700 | 13,991 | |
| 209,554 | |||
| Household Durables - 0.7% | |||
| Tempur Sealy International, Inc. (a) | 192,400 | 15,434 | |
| Internet & Direct Marketing Retail - 5.7% | |||
| Alibaba Group Holding Ltd. sponsored ADR (a) | 445,600 | 77,138 | |
| Amazon.com, Inc. (a) | 28,300 | 52,830 | |
| 129,968 | |||
| TOTAL CONSUMER DISCRETIONARY | 354,956 | ||
| CONSUMER STAPLES - 3.3% | |||
| Food Products - 3.3% | |||
| Darling International, Inc. (a) | 526,083 | 10,695 | |
| JBS SA | 10,119,700 | 66,027 | |
| 76,722 | |||
| ENERGY - 2.9% | |||
| Oil, Gas & Consumable Fuels - 2.9% | |||
| Cheniere Energy, Inc. (a) | 412,040 | 26,844 | |
| MEG Energy Corp. (a) | 2,098,400 | 8,824 | |
| Parsley Energy, Inc. Class A (a) | 677,000 | 11,231 | |
| Pioneer Natural Resources Co. | 145,200 | 20,043 | |
| 66,942 | |||
| FINANCIALS - 5.0% | |||
| Banks - 1.9% | |||
| Bank of America Corp. | 652,399 | 20,016 | |
| JPMorgan Chase & Co. | 199,700 | 23,165 | |
| 43,181 | |||
| Consumer Finance - 3.1% | |||
| American Express Co. | 328,100 | 40,806 | |
| OneMain Holdings, Inc. | 720,800 | 29,877 | |
| 70,683 | |||
| TOTAL FINANCIALS | 113,864 | ||
| HEALTH CARE - 9.2% | |||
| Biotechnology - 0.7% | |||
| Alexion Pharmaceuticals, Inc. (a) | 134,100 | 15,192 | |
| Health Care Providers & Services - 3.9% | |||
| Cigna Corp. | 113,300 | 19,252 | |
| Humana, Inc. | 67,900 | 20,149 | |
| Tenet Healthcare Corp. (a) | 691,500 | 16,299 | |
| UnitedHealth Group, Inc. | 133,500 | 33,243 | |
| 88,943 | |||
| Life Sciences Tools & Services - 3.6% | |||
| IQVIA Holdings, Inc. (a) | 370,100 | 58,909 | |
| Thermo Fisher Scientific, Inc. | 87,700 | 24,353 | |
| 83,262 | |||
| Pharmaceuticals - 1.0% | |||
| Jazz Pharmaceuticals PLC (a) | 166,400 | 23,193 | |
| TOTAL HEALTH CARE | 210,590 | ||
| INDUSTRIALS - 14.0% | |||
| Aerospace & Defense - 1.1% | |||
| TransDigm Group, Inc. (a) | 52,300 | 25,389 | |
| Airlines - 5.4% | |||
| Air Canada (a) | 3,009,700 | 103,553 | |
| Delta Air Lines, Inc. | 335,100 | 20,455 | |
| 124,008 | |||
| Commercial Services & Supplies - 0.0% | |||
| Novus Holdings Ltd. | 46,866 | 12 | |
| Machinery - 1.9% | |||
| Allison Transmission Holdings, Inc. | 510,200 | 23,444 | |
| Ingersoll-Rand PLC | 169,800 | 20,997 | |
| 44,441 | |||
| Marine - 0.0% | |||
| Genco Shipping & Trading Ltd. (a) | 831 | 8 | |
| Road & Rail - 1.2% | |||
| Hertz Global Holdings, Inc. (a) | 574,500 | 8,916 | |
| Lyft, Inc. | 316,764 | 18,317 | |
| 27,233 | |||
| Trading Companies & Distributors - 4.4% | |||
| Air Lease Corp. Class A | 459,820 | 19,216 | |
| HD Supply Holdings, Inc. (a) | 1,016,300 | 41,170 | |
| United Rentals, Inc. (a) | 310,300 | 39,268 | |
| 99,654 | |||
| TOTAL INDUSTRIALS | 320,745 | ||
| INFORMATION TECHNOLOGY - 29.1% | |||
| Electronic Equipment & Components - 2.6% | |||
| CDW Corp. | 205,900 | 24,329 | |
| Dell Technologies, Inc. (a) | 377,700 | 21,808 | |
| Zebra Technologies Corp. Class A (a) | 61,800 | 13,033 | |
| 59,170 | |||
| IT Services - 12.7% | |||
| EPAM Systems, Inc. (a) | 302,100 | 58,544 | |
| Fiserv, Inc. (a) | 264,609 | 27,898 | |
| Global Payments, Inc. | 413,500 | 69,435 | |
| MasterCard, Inc. Class A | 169,400 | 46,123 | |
| PayPal Holdings, Inc. (a) | 430,100 | 47,483 | |
| Visa, Inc. Class A | 232,000 | 41,296 | |
| 290,779 | |||
| Semiconductors & Semiconductor Equipment - 6.7% | |||
| Broadcom, Inc. | 41,000 | 11,890 | |
| Lam Research Corp. | 146,100 | 30,478 | |
| Marvell Technology Group Ltd. | 539,300 | 14,162 | |
| Microchip Technology, Inc. (b) | 622,000 | 58,729 | |
| ON Semiconductor Corp. (a) | 1,788,000 | 38,460 | |
| 153,719 | |||
| Software - 7.1% | |||
| Adobe, Inc. (a) | 206,800 | 61,804 | |
| Microsoft Corp. | 338,900 | 46,182 | |
| Salesforce.com, Inc. (a) | 112,500 | 17,381 | |
| SS&C Technologies Holdings, Inc. | 313,379 | 15,027 | |
| VMware, Inc. Class A | 125,500 | 21,898 | |
| 162,292 | |||
| TOTAL INFORMATION TECHNOLOGY | 665,960 | ||
| MATERIALS - 0.6% | |||
| Chemicals - 0.6% | |||
| The Chemours Co. LLC | 747,628 | 14,257 | |
| REAL ESTATE - 1.4% | |||
| Equity Real Estate Investment Trusts (REITs) - 1.4% | |||
| Crown Castle International Corp. | 244,300 | 32,555 | |
| UTILITIES - 3.8% | |||
| Electric Utilities - 2.3% | |||
| Vistra Energy Corp. | 2,415,265 | 51,832 | |
| Independent Power and Renewable Electricity Producers - 1.5% | |||
| NRG Energy, Inc. | 1,000,400 | 34,154 | |
| TOTAL UTILITIES | 85,986 | ||
| TOTAL COMMON STOCKS | |||
| (Cost $1,698,387) | 2,213,200 | ||
| Money Market Funds - 7.7% | |||
| Fidelity Cash Central Fund 2.43% (c) | 58,141,374 | 58,153 | |
| Fidelity Securities Lending Cash Central Fund 2.43% (c)(d) | 118,700,697 | 118,713 | |
| TOTAL MONEY MARKET FUNDS | |||
| (Cost $176,863) | 176,866 | ||
| TOTAL INVESTMENT IN SECURITIES - 104.3% | |||
| (Cost $1,875,250) | 2,390,066 | ||
| NET OTHER ASSETS (LIABILITIES) - (4.3)% | (98,219) | ||
| NET ASSETS - 100% | $2,291,847 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(d) Investment made with cash collateral received from securities on loan.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
| Fund | Income earned |
| (Amounts in thousands) | |
| Fidelity Cash Central Fund | $1,515 |
| Fidelity Securities Lending Cash Central Fund | 211 |
| Total | $1,726 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable. Amount for Fidelity Securities Lending Cash Central Fund 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.
Investment Valuation
The following is a summary of the inputs used, as of July 31, 2019, 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 below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| Valuation Inputs at Reporting Date: | ||||
| Description | Total | Level 1 | Level 2 | Level 3 |
| (Amounts in thousands) | ||||
| Investments in Securities: | ||||
| Equities: | ||||
| Communication Services | $270,623 | $270,623 | $-- | $-- |
| Consumer Discretionary | 354,956 | 354,956 | -- | -- |
| Consumer Staples | 76,722 | 76,722 | -- | -- |
| Energy | 66,942 | 66,942 | -- | -- |
| Financials | 113,864 | 113,864 | -- | -- |
| Health Care | 210,590 | 210,590 | -- | -- |
| Industrials | 320,745 | 302,416 | 18,329 | -- |
| Information Technology | 665,960 | 665,960 | -- | -- |
| Materials | 14,257 | 14,257 | -- | -- |
| Real Estate | 32,555 | 32,555 | -- | -- |
| Utilities | 85,986 | 85,986 | -- | -- |
| Money Market Funds | 176,866 | 176,866 | -- | -- |
| Total Investments in Securities: | $2,390,066 | $2,371,737 | $18,329 | $-- |
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
| United States of America | 84.6% |
| Canada | 4.9% |
| Cayman Islands | 3.4% |
| Brazil | 2.9% |
| Ireland | 1.9% |
| Liberia | 1.1% |
| Others (Individually Less Than 1%) | 1.2% |
| 100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
| Amounts in thousands (except per-share amounts) | July 31, 2019 | |
| Assets | ||
| Investment in securities, at value (including securities loaned of $112,765) — See accompanying schedule: Unaffiliated issuers (cost $1,698,387) | $2,213,200 | |
| Fidelity Central Funds (cost $176,863) | 176,866 | |
| Total Investment in Securities (cost $1,875,250) | $2,390,066 | |
| Receivable for investments sold | 26,417 | |
| Receivable for fund shares sold | 452 | |
| Dividends receivable | 509 | |
| Distributions receivable from Fidelity Central Funds | 191 | |
| Prepaid expenses | 5 | |
| Other receivables | 23 | |
| Total assets | 2,417,663 | |
| Liabilities | ||
| Payable for investments purchased | $128 | |
| Payable for investments purchased on a delayed delivery basis | 2,200 | |
| Payable for fund shares redeemed | 3,203 | |
| Accrued management fee | 1,131 | |
| Other affiliated payables | 323 | |
| Other payables and accrued expenses | 114 | |
| Collateral on securities loaned | 118,717 | |
| Total liabilities | 125,816 | |
| Net Assets | $2,291,847 | |
| Net Assets consist of: | ||
| Paid in capital | $1,824,063 | |
| Total distributable earnings (loss) | 467,784 | |
| Net Assets | $2,291,847 | |
| Net Asset Value and Maximum Offering Price | ||
| Leveraged Company Stock: | ||
| Net Asset Value, offering price and redemption price per share ($1,944,966 ÷ 64,972 shares) | $29.94 | |
| Class K: | ||
| Net Asset Value, offering price and redemption price per share ($346,881 ÷ 11,547 shares) | $30.04 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| Amounts in thousands | Year ended July 31, 2019 | |
| Investment Income | ||
| Dividends | $15,166 | |
| Interest | 10 | |
| Income from Fidelity Central Funds (including $211 from security lending) | 1,726 | |
| Total income | 16,902 | |
| Expenses | ||
| Management fee | $13,902 | |
| Transfer agent fees | 3,312 | |
| Accounting and security lending fees | 714 | |
| Custodian fees and expenses | 54 | |
| Independent trustees' fees and expenses | 14 | |
| Registration fees | 48 | |
| Audit | 62 | |
| Legal | 9 | |
| Miscellaneous | 17 | |
| Total expenses before reductions | 18,132 | |
| Expense reductions | (137) | |
| Total expenses after reductions | 17,995 | |
| Net investment income (loss) | (1,093) | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | 43,957 | |
| Fidelity Central Funds | (1) | |
| Foreign currency transactions | 73 | |
| Total net realized gain (loss) | 44,029 | |
| Change in net unrealized appreciation (depreciation) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | (35,293) | |
| Fidelity Central Funds | 2 | |
| Assets and liabilities in foreign currencies | (2) | |
| Total change in net unrealized appreciation (depreciation) | (35,293) | |
| Net gain (loss) | 8,736 | |
| Net increase (decrease) in net assets resulting from operations | $7,643 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Amounts in thousands | Year ended July 31, 2019 | Year ended July 31, 2018 |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $(1,093) | $2,569 |
| Net realized gain (loss) | 44,029 | 417,957 |
| Change in net unrealized appreciation (depreciation) | (35,293) | (99,616) |
| Net increase (decrease) in net assets resulting from operations | 7,643 | 320,910 |
| Distributions to shareholders | (382,089) | – |
| Distributions to shareholders from net investment income | – | (6,187) |
| Distributions to shareholders from net realized gain | – | (529,539) |
| Total distributions | (382,089) | (535,726) |
| Share transactions - net increase (decrease) | (136,527) | (115,492) |
| Total increase (decrease) in net assets | (510,973) | (330,308) |
| Net Assets | ||
| Beginning of period | 2,802,820 | 3,133,128 |
| End of period | $2,291,847 | $2,802,820 |
| Other Information | ||
| Distributions in excess of net investment income end of period | $(1,170) |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Leveraged Company Stock Fund
| Years ended July 31, | 2019 | 2018 | 2017 | 2016 | 2015 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $34.31 | $37.25 | $40.68 | $46.90 | $45.82 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | (.02) | .02 | .19 | .41 | .41 |
| Net realized and unrealized gain (loss) | .42 | 3.42B | 5.53 | (3.77) | 1.01 |
| Total from investment operations | .40 | 3.44 | 5.72 | (3.36) | 1.42 |
| Distributions from net investment income | – | (.07) | (.37) | (.40) | (.34) |
| Distributions from net realized gain | (4.77) | (6.32) | (8.78) | (2.46) | – |
| Total distributions | (4.77) | (6.38)C | (9.15) | (2.86) | (.34) |
| Redemption fees added to paid in capitalA | – | – | –D | –D | –D |
| Net asset value, end of period | $29.94 | $34.31 | $37.25 | $40.68 | $46.90 |
| Total ReturnE | 1.93% | 10.91B | 17.45% | (7.23)% | 3.12% |
| Ratios to Average Net AssetsF,G | |||||
| Expenses before reductions | .78% | .78% | .80% | .80% | .79% |
| Expenses net of fee waivers, if any | .78% | .78% | .79% | .80% | .78% |
| Expenses net of all reductions | .78% | .77% | .78% | .80% | .78% |
| Net investment income (loss) | (.06)% | .07% | .51% | 1.03% | .87% |
| Supplemental Data | |||||
| Net assets, end of period (in millions) | $1,945 | $2,372 | $2,644 | $2,861 | $3,755 |
| Portfolio turnover rateH | 53% | 67% | 100% | 9% | 4% |
A Calculated based on average shares outstanding during the period.
B Amount includes a reimbursement from the investment adviser for an operational error which amounted to $.06 per share. Excluding this reimbursement, the total return would have been 10.73%.
C Total distributions of $6.38 per share is comprised of distributions from net investment income of $.066 and distributions from net realized gain of $6.318 per share.
D Amount represents less than $.005 per share.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
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 Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Leveraged Company Stock Fund Class K
| Years ended July 31, | 2019 | 2018 | 2017 | 2016 | 2015 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $34.40 | $37.34 | $40.76 | $47.00 | $45.91 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .01 | .06 | .23 | .46 | .46 |
| Net realized and unrealized gain (loss) | .42 | 3.42B | 5.55 | (3.79) | 1.03 |
| Total from investment operations | .43 | 3.48 | 5.78 | (3.33) | 1.49 |
| Distributions from net investment income | – | (.11) | (.42) | (.45) | (.40) |
| Distributions from net realized gain | (4.79) | (6.32) | (8.78) | (2.46) | – |
| Total distributions | (4.79) | (6.42)C | (9.20) | (2.91) | (.40) |
| Redemption fees added to paid in capitalA | – | – | –D | –D | –D |
| Net asset value, end of period | $30.04 | $34.40 | $37.34 | $40.76 | $47.00 |
| Total ReturnE | 2.03% | 11.01%B | 17.60% | (7.14)% | 3.26% |
| Ratios to Average Net AssetsF,G | |||||
| Expenses before reductions | .67% | .67% | .68% | .68% | .67% |
| Expenses net of fee waivers, if any | .67% | .67% | .68% | .68% | .67% |
| Expenses net of all reductions | .67% | .66% | .67% | .68% | .67% |
| Net investment income (loss) | .05% | .18% | .63% | 1.15% | .99% |
| Supplemental Data | |||||
| Net assets, end of period (in millions) | $347 | $431 | $489 | $573 | $991 |
| Portfolio turnover rateH | 53% | 67% | 100% | 9% | 4% |
A Calculated based on average shares outstanding during the period.
B Amount includes a reimbursement from the investment adviser for an operational error which amounted to $.06 per share. Excluding this reimbursement, the total return would have been 10.83%.
C Total distributions of $6.42 per share is comprised of distributions from net investment income of $.106 and distributions from net realized gain of $6.318 per share.
D Amount represents less than $.005 per share.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
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 Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended July 31, 2019
(Amounts in thousands except percentages)
1. Organization.
Fidelity Leveraged Company Stock Fund (the Fund) is a fund of Fidelity Securities Fund (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Leveraged Company Stock and Class K shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date ranged from less than .005% to .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investments Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of July 31, 2019 is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. As of July 31, 2019, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, market discount, net operating losses and losses deferred due to wash sales and excise tax regulations.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
| Gross unrealized appreciation | $577,004 |
| Gross unrealized depreciation | (67,421) |
| Net unrealized appreciation (depreciation) | $509,583 |
| Tax Cost | $ 1,880,483 |
The tax-based components of distributable earnings as of period end were as follows:
| Net unrealized appreciation (depreciation) on securities and other investments | $509,580 |
The Fund intends to elect to defer to its next fiscal year $41,109 of capital losses recognized during the period November 1, 2018 to July 31, 2019. The Fund intends to elect to defer to its next fiscal year $688 of ordinary losses recognized during the period January 1, 2019 to July 31, 2019.
The tax character of distributions paid was as follows:
| July 31, 2019 | July 31, 2018 | |
| Ordinary Income | $5,895 | $ 17,016 |
| Long-term Capital Gains | 376,194 | 518,710 |
| Total | $382,089 | $535,726 |
Delayed Delivery Transactions and When-Issued Securities. During the period, the Fund transacted in securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. The securities purchased on a delayed delivery or when-issued basis are identified as such in the Fund's Schedule of Investments. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.
New Rule Issuance. During August 2018, the U.S. Securities and Exchange Commission issued Final Rule Release No. 33-10532, Disclosure Update and Simplification. This Final Rule includes amendments specific to registered investment companies that are intended to eliminate overlap in disclosure requirements between Regulation S-X and GAAP. In accordance with these amendments, certain line-items in the Fund's financial statements have been combined or removed for the current period as outlined in the table below.
| Financial Statement | Current Line-Item Presentation (As Applicable) | Prior Line-Item Presentation (As Applicable) |
| Statement of Assets and Liabilities | Total distributable earnings (loss) | Undistributed/Distributions in excess of/Accumulated net investment income (loss) Accumulated/Undistributed net realized gain (loss) Net unrealized appreciation (depreciation) |
| Statement of Changes in Net Assets | N/A - removed | Undistributed/Distributions in excess of/Accumulated net investment income (loss) end of period |
| Statement of Changes in Net Assets | Distributions to shareholders | Distributions to shareholders from net investment income Distributions to shareholders from net realized gain |
| Distributions to Shareholders Note to Financial Statements | Distributions to shareholders | Distributions to shareholders from net investment income Distributions to shareholders from net realized gain |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $1,225,375 and $1,790,112, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .35% of the Fund's average net assets and an annualized group fee rate that averaged .24% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annual management fee rate was .59% of the Fund's average net assets.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of Leveraged Company Stock, except for Class K. FIIOC receives an asset-based fee of Class K's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
| Amount | % of Class-Level Average Net Assets | |
| Leveraged Company Stock | $3,146 | .16 |
| Class K | 166 | .05 |
| $3,312 |
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Prior to April 1, 2019, FSC had a separate agreement with the Fund for administration of the security lending program, based on the number and duration of lending transactions. For the period, the total fees paid for accounting and administration of securities lending were equivalent to an annual rate of .03%.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $48 for the period.
Interfund Trades. The Fun may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $6 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. For equity securities, lending agents are used, including National Financial Services (NFS), an affiliate of the Fund. Pursuant to a securities lending agreement, NFS will receive a fee, which is capped at 9.9% of daily lending revenue, for its services as lending agent. The Fund may lend securities to certain qualified borrowers, including NFS. 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. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. At period end, there were no security loans outstanding with NFS, as affiliated borrower. 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 $4 from securities loaned to NFS, as affiliated borrower.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $116 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $4.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $17.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Year ended July 31, 2019 | Year ended July 31, 2018 | |
| Distributions to shareholders | ||
| Leveraged Company Stock | $323,491 | $- |
| Class K | 58,598 | - |
| Total | $382,089 | $ - |
| From net investment income | ||
| Leveraged Company Stock | $- | $4,788 |
| Class K | - | 1,399 |
| Total | $- | $6,187 |
| From net realized gain | ||
| Leveraged Company Stock | $- | $447,843 |
| Class K | - | 81,696 |
| Total | $- | $529,539 |
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
| Shares | Shares | Dollars | Dollars | |
| Year ended July 31, 2019 | Year ended July 31, 2018 | Year ended July 31, 2019 | Year ended July 31, 2018 | |
| Leveraged Company Stock | ||||
| Shares sold | 2,630 | 2,261 | $74,697 | $77,379 |
| Reinvestment of distributions | 10,500 | 13,261 | 306,391 | 427,578 |
| Shares redeemed | (17,289) | (17,365) | (490,093) | (594,962) |
| Net increase (decrease) | (4,159) | (1,843) | $(109,005) | $(90,005) |
| Class K | ||||
| Shares sold | 1,048 | 989 | $29,782 | $34,063 |
| Reinvestment of distributions | 2,004 | 2,572 | 58,598 | 83,096 |
| Shares redeemed | (4,033) | (4,138) | (115,902) | (142,646) |
| Net increase (decrease) | (981) | (577) | $(27,522) | $(25,487) |
11. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Fidelity Securities Fund and Shareholders of Fidelity Leveraged Company Stock Fund:
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Fidelity Leveraged Company Stock Fund (one of the funds constituting Fidelity Securities Fund, referred to hereafter as the “Fund”) as of July 31, 2019, the related statement of operations for the year ended July 31, 2019, the statement of changes in net assets for each of the two years in the period ended July 31, 2019, including the related notes, and the financial highlights for each of the five years in the period ended July 31, 2019 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of July 31, 2019, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended July 31, 2019 and the financial highlights for each of the five years in the period ended July 31, 2019 in conformity with accounting principles generally accepted in the United States of America
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of July 31, 2019 by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Boston, Massachusetts
September 17, 2019
We have served as the auditor of one or more investment companies in the Fidelity group of funds since 1932.
Trustees and Officers
The Trustees, Members of the Advisory Board (if any), and officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Except for Jonathan Chiel, each of the Trustees oversees 298 funds. Mr. Chiel oversees 170 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the fund is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund's Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544 if you’re an individual investing directly with Fidelity, call 1-800-835-5092 if you’re a plan sponsor or participant with Fidelity as your recordkeeper or call 1-877-208-0098 on institutional accounts or if you’re an advisor or invest through one.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Board Structure and Oversight Function. James C. Curvey is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Ned C. Lautenbach serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and other equity funds. The asset allocation funds may invest in Fidelity® funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Jonathan Chiel (1957)
Year of Election or Appointment: 2016
Trustee
Mr. Chiel also serves as Trustee of other Fidelity® funds. Mr. Chiel is Executive Vice President and General Counsel for FMR LLC (diversified financial services company, 2012-present). Previously, Mr. Chiel served as general counsel (2004-2012) and senior vice president and deputy general counsel (2000-2004) for John Hancock Financial Services; a partner with Choate, Hall & Stewart (1996-2000) (law firm); and an Assistant United States Attorney for the United States Attorney’s Office of the District of Massachusetts (1986-95), including Chief of the Criminal Division (1993-1995). Mr. Chiel is a director on the boards of the Boston Bar Foundation and the Maimonides School.
James C. Curvey (1935)
Year of Election or Appointment: 2007
Trustee
Chairman of the Board of Trustees
Mr. Curvey also serves as Trustee of other Fidelity® funds. Mr. Curvey is Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey is an Overseer Emeritus for the Boston Symphony Orchestra, a Director of Artis-Naples, and a Trustee of Brewster Academy in Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-2018), Director of Fidelity Investments Money Management, Inc. (investment adviser firm, 2009-2014) and a Director of FMR and FMR Co., Inc. (investment adviser firms, 2007-2014).
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), as a member of the Independent Directors Council (IDC) Governing Council (2010-2015), and as a member of the Board of Directors for The Brookville Center for Children’s Services, Inc. (2009-2017). Mr. Dirks is a member of the Finance Committee (2016-present) and Board of Directors (2017-present) and is Treasurer (2018-present) of the Asolo Repertory Theatre.
Donald F. Donahue (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Donahue also serves as a Trustee of other Fidelity® funds. Mr. Donahue is President and Chief Executive Officer of Miranda Partners, LLC (risk consulting for the financial services industry, 2012-present). Previously, Mr. Donahue served as a Member of the Advisory Board of certain Fidelity® funds (2015-2018) and Chief Executive Officer (2006-2012), Chief Operating Officer (2003-2006), and Managing Director, Customer Marketing and Development (1999-2003) of The Depository Trust & Clearing Corporation (financial markets infrastructure). Mr. Donahue serves as a Member (2007-present) and Co-Chairman (2016-present) of the Board of Directors of United Way of New York, Member of the Board of Directors of NYC Leadership Academy (2012-present) and Member of the Board of Advisors of Ripple Labs, Inc. (financial services, 2015-present). He also served as Chairman (2010-2012) and Member of the Board of Directors (2012-2013) of Omgeo, LLC (financial services), Treasurer of United Way of New York (2012-2016), and Member of the Board of Directors of XBRL US (financial services non-profit, 2009-2012) and the International Securities Services Association (2009-2012).
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2014-2017) and a member (2010-2017) of the Board of Directors of Dave & Buster’s Entertainment, Inc. (restaurant and entertainment complexes), as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association, and as a member of the Board of Directors for The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), Earth Fare, Inc. (retail grocery, 2010-2014), and The Western Union Company (global money transfer, 2006-2011).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as Chair (2018-present) and Member (2013-present) of the Board of Governors, State University System of Florida and is a member of the Council on Foreign Relations (1994-present). He is also a member and has most recently served as Chairman of the Board of Directors of Artis-Naples (2012-present). Previously, Mr. Lautenbach served as a member and then Lead Director of the Board of Directors of Eaton Corporation (diversified industrial, 1997-2016). He was also a Partner and Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007). In addition, Mr. Lautenbach also had a 30-year career with IBM (technology company) during which time he served as Senior Vice President and a member of the Corporate Executive Committee (1968-1998).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-2018).
Cornelia M. Small (1944)
Year of Election or Appointment: 2005
Trustee
Ms. Small also serves as Trustee of other Fidelity® funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.
Garnett A. Smith (1947)
Year of Election or Appointment: 2018
Trustee
Mr. Smith also serves as Trustee of other Fidelity® funds. Prior to Mr. Smith's retirement, he served as Chairman and Chief Executive Officer of Inbrand Corp. (manufacturer of personal absorbent products, 1990-1997). He also served as President (1986-1990) of Inbrand Corp. Prior to his employment with Inbrand Corp., he was employed by a retail fabric chain and North Carolina National Bank. In addition, Mr. Smith served as a Member of the Advisory Board of certain Fidelity® funds (2012-2013) and as a board member of the Jackson Hole Land Trust (2009-2012).
David M. Thomas (1949)
Year of Election or Appointment: 2008
Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present) and as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), a Director of Fortune Brands, Inc. (consumer products, 2000-2011), and a member of the Board of Trustees of the University of Florida (2013-2018).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Advisory Board Members and Officers:
Correspondence intended for a Member of the Advisory Board (if any) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235. Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Vicki L. Fuller (1957)
Year of Election or Appointment: 2018
Member of the Advisory Board
Ms. Fuller also serves as Member of the Advisory Board of other Fidelity® funds. Ms. Fuller serves as a member of the Board of Directors, Audit Committee, and Nominating and Governance Committee of The Williams Companies, Inc. (natural gas infrastructure, 2018-present). Previously, Ms. Fuller served as the Chief Investment Officer of the New York State Common Retirement Fund (2012-2018) and held a variety of positions at AllianceBernstein L.P. (global asset management, 1985-2012), including Managing Director (2006-2012) and Senior Vice President and Senior Portfolio Manager (2001-2006).
Peter S. Lynch (1944)
Year of Election or Appointment: 2003
Member of the Advisory Board
Mr. Lynch also serves as Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of FMR (investment adviser firm) and FMR Co., Inc. (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).
Michael E. Wiley (1950)
Year of Election or Appointment: 2018
Member of the Advisory Board
Mr. Wiley also serves as Trustee or Member of the Advisory Board of other Fidelity® funds. Mr. Wiley serves as a Director of High Point Resources (exploration and production, 2005-present). Previously, Mr. Wiley served as a Director of Andeavor Corporation (independent oil refiner and marketer, 2005-2018), a Director of Andeavor Logistics LP (natural resources logistics, 2015-2018), a Director of Post Oak Bank (privately-held bank, 2004-2018), a Director of Asia Pacific Exploration Consolidated (international oil and gas exploration and production, 2008-2013), a member of the Board of Trustees of the University of Tulsa (2000-2006; 2007-2010), a Senior Energy Advisor of Katzenbach Partners, LLC (consulting, 2006-2007), an Advisory Director of Riverstone Holdings (private investment), a Director of Spinnaker Exploration Company (exploration and production, 2001-2005) and Chairman, President, and CEO of Baker Hughes, Inc. (oilfield services, 2000-2004).
Elizabeth Paige Baumann (1968)
Year of Election or Appointment: 2017
Anti-Money Laundering (AML) Officer
Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer (2012-present) and Senior Vice President (2014-present) of FMR LLC (diversified financial services company) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as AML Officer of the funds (2012-2016), and Vice President (2007-2014) and Deputy Anti-Money Laundering Officer (2007-2012) of FMR LLC.
Craig S. Brown (1977)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Brown also serves as Assistant Treasurer of other funds. Mr. Brown is an employee of Fidelity Investments (2013-present).
John J. Burke III (1964)
Year of Election or Appointment: 2018
Chief Financial Officer
Mr. Burke also serves as Chief Financial Officer of other funds. Mr. Burke serves as Head of Investment Operations for Fidelity Fund and Investment Operations (2018-present) and is an employee of Fidelity Investments (1998-present). Previously Mr. Burke served as head of Asset Management Investment Operations (2012-2018).
William C. Coffey (1969)
Year of Election or Appointment: 2018
Secretary and Chief Legal Officer (CLO)
Mr. Coffey also serves as Secretary and CLO of other funds. Mr. Coffey serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2018-present); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2018-present); and CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2018-present). He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Assistant Secretary of certain funds (2009-2018) and as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Timothy M. Cohen (1969)
Year of Election or Appointment: 2018
Vice President
Mr. Cohen also serves as Vice President of other funds. Mr. Cohen serves as Executive Vice President of Fidelity SelectCo, LLC (2019-present), Co-Head of Equity (2018-present), a Director of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present), and is an employee of Fidelity Investments. Previously, Mr. Cohen served as Head of Global Equity Research (2016-2018), Chief Investment Officer - Equity and a Director of Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2013-2015) and as a Director of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2017).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds. Mr. Davis serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present), and is an employee of Fidelity Investments (2008-present). Previously, Mr. Deberghes served as President and Treasurer of certain Fidelity® funds (2013-2018). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). Previously, Mr. Deberghes served in other fund officer roles.
Laura M. Del Prato (1964)
Year of Election or Appointment: 2018
Assistant Treasurer
Ms. Del Prato also serves as an officer of other funds. Ms. Del Prato is an employee of Fidelity Investments (2017-present). Prior to joining Fidelity Investments, Ms. Del Prato served as a Managing Director and Treasurer of the JPMorgan Mutual Funds (2014-2017). Prior to JPMorgan, Ms. Del Prato served as a partner at Cohen Fund Audit Services (accounting firm, 2012-2013) and KPMG LLP (accounting firm, 2004-2012).
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2005-present). Previously, Mr. Hogan served as Assistant Treasurer of certain Fidelity® funds (2016-2018).
Pamela R. Holding (1964)
Year of Election or Appointment: 2018
Vice President
Ms. Holding also serves as Vice President of other funds. Ms. Holding serves as Executive Vice President of Fidelity SelectCo, LLC (2019-present), Co-Head of Equity (2018-present) and is an employee of Fidelity Investments (2013-present). Previously, Ms. Holding served as Chief Investment Officer of Fidelity Institutional Asset Management (2013-2018).
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight, serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. Ms. Smith serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), is an employee of Fidelity Investments (2009-present), and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Assistant Treasurer (2013-2018) and Deputy Treasurer (2013-2016) of certain Fidelity® funds.
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
Jim Wegmann (1979)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Wegmann also serves as Assistant Treasurer of other funds. Mr. Wegmann is an employee of Fidelity Investments (2011-present).
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (February 1, 2019 to July 31, 2019).
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.
| Annualized Expense Ratio-A | Beginning Account Value February 1, 2019 | Ending Account Value July 31, 2019 | Expenses Paid During Period-B February 1, 2019 to July 31, 2019 | |
| Leveraged Company Stock | .78% | |||
| Actual | $1,000.00 | $1,098.30 | $4.06 | |
| Hypothetical-C | $1,000.00 | $1,020.93 | $3.91 | |
| Class K | .67% | |||
| Actual | $1,000.00 | $1,098.80 | $3.49 | |
| Hypothetical-C | $1,000.00 | $1,021.47 | $3.36 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
C 5% return per year before expenses
Distributions (Unaudited)
The fund hereby designates as a capital gain dividend with respect to the taxable year ended July 31, 2019, $90,095,096, or, if subsequently determined to be different, the net capital gain of such year.
Leveraged Company Stock and Class K designate 100% of the dividend distributed in September during the fiscal year as qualifying for the dividends–received deduction for corporate shareholders.
Leveraged Company Stock and Class K designate 100% of the dividend distributed in September during the fiscal year as amounts which may be taken into account as a dividend for purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code.
The fund will notify shareholders in January 2020 of amounts for use in preparing 2019 income tax returns.
LSF-ANN-0919
1.762413.118
Fidelity® OTC Portfolio Annual Report July 31, 2019 |
|
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of a fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a financial advisor, broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from a fund electronically, by contacting your financial intermediary. For Fidelity customers, visit Fidelity's web site or call Fidelity using the contact information listed below.
You may elect to receive all future reports in paper free of charge. If you wish to continue receiving paper copies of your shareholder reports, you may contact your financial intermediary or, if you are a Fidelity customer, visit Fidelity’s website, or call Fidelity at the applicable toll-free number listed below. Your election to receive reports in paper will apply to all funds held with the fund complex/your financial intermediary.
| Account Type | Website | Phone Number |
| Brokerage, Mutual Fund, or Annuity Contracts: | fidelity.com/mailpreferences | 1-800-343-3548 |
| Employer Provided Retirement Accounts: | netbenefits.fidelity.com/preferences (choose 'no' under Required Disclosures to continue to print) | 1-800-343-0860 |
| Advisor Sold Accounts Serviced Through Your Financial Intermediary: | Contact Your Financial Intermediary | Your Financial Intermediary's phone number |
| Advisor Sold Accounts Serviced by Fidelity: | institutional.fidelity.com | 1-877-208-0098 |
Contents
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-800-544-8544 if you’re an individual investing directly with Fidelity, call 1-800-835-5092 if you’re a plan sponsor or participant with Fidelity as your recordkeeper or call 1-877-208-0098 on institutional accounts or if you’re an advisor or invest through one 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. © 2019 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT. Forms N-PORT are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-PORT 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.institutional.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.
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
| For the periods ended July 31, 2019 | Past 1 year | Past 5 years | Past 10 years |
| Fidelity® OTC Portfolio | 6.43% | 16.33% | 17.81% |
| Class K | 6.50% | 16.46% | 17.95% |
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity® OTC Portfolio, a class of the fund, on July 31, 2009.
The chart shows how the value of your investment would have changed, and also shows how the Nasdaq Composite Index® performed over the same period.
| Period Ending Values | ||
| $51,491 | Fidelity® OTC Portfolio | |
| $46,271 | Nasdaq Composite Index® | |
Management's Discussion of Fund Performance
Market Recap: The U.S. equity bellwether S&P 500® index gained 7.99% for the 12 months ending July 31, 2019, beginning the new year on a high note after enduring a historically volatile final quarter of 2018. Upbeat company earnings/outlooks and signs the Federal Reserve may pause on rates boosted stocks to an all-time high on April 30. In May, however, volatility spiked and stocks returned -6.35% for the month amid the Fed’s decision to hold interest rates steady and signal that it had little appetite to adjust them any time soon, as well as retaliatory tariffs imposed on the U.S. by China. The downtrend was similar to late 2018, when many investors fled from risk assets on elevated concerns about future economic growth, global trade and tighter monetary policy. The bull market roared back in June, with the S&P 500® rising 7.05%, and recorded a series of all-time highs in a productive July (+1.44%). For the full 12 months, growth stocks outpaced value, while large-caps handily bested small-caps. By sector, information technology (+19%) led the way, boosted by continued strength in software & services (+26%), the market’s largest industry segment. Three defensive groups also stood out – real estate (+18%), utilities (+17%) and consumer staples (+15%) – followed by consumer discretionary (+10%) and communication services (+8%). In contrast, energy (-16%) was by far the weakest sector.Comments from Portfolio Manager Christopher Lin: For the year, the fund’s Retail Class shares gained 6.43%, trailing the 7.74% advance of the benchmark Nasdaq Composite Index®. Versus the benchmark, security selection in the communication services sector weighed on performance most. Within this group, an overweighting in shares of Activision Blizzard (-32%) detracted more than any individual fund position. Amid intense industry competition, I considerably reduced the fund's Activision stake by period end, but maintained an overweighting. An outsized stake in shares of chip designer Nvidia (-31%) also hurt the fund's relative result. I reduced the fund's Nvidia position by period end, but it remained a core fund holding. Elsewhere, not owning cable and entertainment giant Comcast and significantly underweighting network equipment maker Cisco Systems and coffee-chain Starbucks hurt the portfolio’s relative return. Conversely, stock choices in consumer discretionary and an underweighting in health care contributed on a relative basis, as did a non-benchmark stake in e-commerce platform Shopify and an overweighting in shares of e-commerce marketplace MercadoLibre (+82%).The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Note to Shareholders: On January 1, 2019, Christopher Lin assumed sole management responsibilities for the fund, after having served as lead manager alongside co-manager Sonu Kalra since October 1, 2018.Investment Summary (Unaudited)
Top Ten Stocks as of July 31, 2019
| % of fund's net assets | |
| Microsoft Corp. | 9.4 |
| Apple, Inc. | 9.0 |
| Alphabet, Inc. Class A | 7.3 |
| Amazon.com, Inc. | 5.9 |
| Facebook, Inc. Class A | 5.5 |
| Alphabet, Inc. Class C | 2.5 |
| Adobe, Inc. | 1.8 |
| NVIDIA Corp. | 1.7 |
| Costco Wholesale Corp. | 1.4 |
| Qualcomm, Inc. | 1.4 |
| 45.9 |
Top Five Market Sectors as of July 31, 2019
| % of fund's net assets | |
| Information Technology | 42.2 |
| Communication Services | 21.7 |
| Consumer Discretionary | 16.2 |
| Health Care | 7.7 |
| Consumer Staples | 5.4 |
Asset Allocation (% of fund's net assets)
| As of July 31, 2019* | ||
| Stocks | 98.2% | |
| Convertible Securities | 1.6% | |
| Short-Term Investments and Net Other Assets (Liabilities) | 0.2% | |
* Foreign investments - 10.6%
Schedule of Investments July 31, 2019
Showing Percentage of Net Assets
| Common Stocks - 98.1% | |||
| Shares | Value (000s) | ||
| COMMUNICATION SERVICES - 21.7% | |||
| Entertainment - 2.7% | |||
| Activision Blizzard, Inc. | 3,794,609 | $184,949 | |
| Electronic Arts, Inc. (a) | 2,600 | 241 | |
| NetEase, Inc. ADR | 331,640 | 76,549 | |
| Netflix, Inc. (a) | 463,660 | 149,758 | |
| Nintendo Co. Ltd. ADR | 848,000 | 39,169 | |
| Take-Two Interactive Software, Inc. (a) | 328,270 | 40,220 | |
| Ubisoft Entertainment SA (a) | 122,000 | 10,035 | |
| Zynga, Inc. (a) | 7,674,900 | 48,966 | |
| 549,887 | |||
| Interactive Media & Services - 17.9% | |||
| 58.com, Inc. ADR (a) | 11,300 | 637 | |
| Alphabet, Inc.: | |||
| Class A (a) | 1,186,027 | 1,444,818 | |
| Class C (a) | 414,369 | 504,154 | |
| ANGI Homeservices, Inc. Class A (a) | 3,249,631 | 45,007 | |
| CarGurus, Inc. Class A (a) | 1,511,449 | 56,332 | |
| Eventbrite, Inc. (b) | 25,200 | 446 | |
| Facebook, Inc. Class A (a) | 5,670,414 | 1,101,365 | |
| IAC/InterActiveCorp (a) | 289,325 | 69,163 | |
| Match Group, Inc. (b) | 301,900 | 22,730 | |
| Pinterest, Inc. | 46,430 | 1,279 | |
| Tencent Holdings Ltd. sponsored ADR | 4,206,900 | 195,621 | |
| Twitter, Inc. (a) | 2,880,100 | 121,857 | |
| 3,563,409 | |||
| Media - 1.1% | |||
| Charter Communications, Inc. Class A (a) | 548,900 | 211,535 | |
| Turn, Inc. (Escrow) (a)(c)(d) | 1,199,041 | 797 | |
| 212,332 | |||
| Wireless Telecommunication Services - 0.0% | |||
| Boingo Wireless, Inc. (a) | 186,800 | 2,806 | |
| TOTAL COMMUNICATION SERVICES | 4,328,434 | ||
| CONSUMER DISCRETIONARY - 15.9% | |||
| Automobiles - 0.0% | |||
| Tesla, Inc. (a)(b) | 921 | 223 | |
| Diversified Consumer Services - 0.0% | |||
| Adtalem Global Education, Inc. (a) | 114,500 | 5,424 | |
| Weight Watchers International, Inc. (a) | 193,100 | 4,181 | |
| 9,605 | |||
| Hotels, Restaurants & Leisure - 1.7% | |||
| Domino's Pizza, Inc. | 46,600 | 11,395 | |
| Eldorado Resorts, Inc. (a) | 491,049 | 22,156 | |
| Hilton Grand Vacations, Inc. (a) | 489,400 | 16,003 | |
| Hilton Worldwide Holdings, Inc. | 7,300 | 705 | |
| Marriott International, Inc. Class A | 543,100 | 75,523 | |
| Marriott Vacations Worldwide Corp. | 26,700 | 2,730 | |
| Planet Fitness, Inc. (a) | 1,671,700 | 131,496 | |
| Restaurant Brands International, Inc. | 67,300 | 4,956 | |
| Royal Caribbean Cruises Ltd. | 338,900 | 39,428 | |
| Starbucks Corp. | 102,900 | 9,744 | |
| Texas Roadhouse, Inc. Class A | 127,300 | 7,031 | |
| Yum! Brands, Inc. | 184,200 | 20,726 | |
| 341,893 | |||
| Internet & Direct Marketing Retail - 9.9% | |||
| Amazon.com, Inc. (a) | 623,808 | 1,164,512 | |
| Ctrip.com International Ltd. ADR (a) | 1,521,200 | 59,296 | |
| eBay, Inc. | 3,570,900 | 147,085 | |
| Meituan Dianping Class B | 11,076,800 | 89,569 | |
| MercadoLibre, Inc. (a) | 294,300 | 182,884 | |
| The Booking Holdings, Inc. (a) | 108,660 | 204,999 | |
| Yahoo!, Inc. (a) | 1,710,500 | 120,505 | |
| 1,968,850 | |||
| Leisure Products - 0.1% | |||
| Mattel, Inc. (a)(b) | 887,900 | 12,963 | |
| Multiline Retail - 0.9% | |||
| Avenue Supermarts Ltd. (a)(e) | 101,832 | 2,185 | |
| Dollar General Corp. | 80,700 | 10,815 | |
| Dollar Tree, Inc. (a) | 1,595,700 | 162,362 | |
| 175,362 | |||
| Specialty Retail - 2.1% | |||
| Best Buy Co., Inc. | 716,400 | 54,826 | |
| Burlington Stores, Inc. (a) | 278,400 | 50,321 | |
| Five Below, Inc. (a) | 385,500 | 45,281 | |
| Lowe's Companies, Inc. | 445,000 | 45,123 | |
| National Vision Holdings, Inc. (a) | 574,095 | 18,136 | |
| Ross Stores, Inc. | 1,116,600 | 118,393 | |
| Tiffany & Co., Inc. | 360,600 | 33,868 | |
| Ulta Beauty, Inc. (a) | 152,910 | 53,404 | |
| 419,352 | |||
| Textiles, Apparel & Luxury Goods - 1.2% | |||
| G-III Apparel Group Ltd. (a) | 189,900 | 5,443 | |
| Kontoor Brands, Inc. | 6,557 | 192 | |
| lululemon athletica, Inc. (a) | 1,024,074 | 195,690 | |
| LVMH Moet Hennessy Louis Vuitton SE | 5,727 | 2,366 | |
| PVH Corp. | 240,700 | 21,403 | |
| VF Corp. | 45,900 | 4,011 | |
| 229,105 | |||
| TOTAL CONSUMER DISCRETIONARY | 3,157,353 | ||
| CONSUMER STAPLES - 5.2% | |||
| Beverages - 2.2% | |||
| Diageo PLC | 2,321,746 | 96,817 | |
| Fever-Tree Drinks PLC | 2,341,907 | 66,529 | |
| Keurig Dr. Pepper, Inc. | 2,160,500 | 60,796 | |
| Kweichow Moutai Co. Ltd. (A Shares) | 497,475 | 69,781 | |
| Luckin Coffee, Inc. ADR (b) | 191,700 | 4,656 | |
| Monster Beverage Corp. (a) | 1,028,540 | 66,310 | |
| PepsiCo, Inc. | 633,400 | 80,955 | |
| 445,844 | |||
| Food & Staples Retailing - 2.3% | |||
| BJ's Wholesale Club Holdings, Inc. (a) | 2,403,665 | 56,630 | |
| Costco Wholesale Corp. | 1,027,083 | 283,095 | |
| Performance Food Group Co. (a) | 1,067,600 | 46,814 | |
| U.S. Foods Holding Corp. (a) | 1,064,200 | 37,641 | |
| Walmart, Inc. | 259,800 | 28,677 | |
| 452,857 | |||
| Food Products - 0.4% | |||
| Darling International, Inc. (a) | 414,800 | 8,433 | |
| Mondelez International, Inc. | 827,152 | 44,244 | |
| The Kraft Heinz Co. | 588,700 | 18,844 | |
| 71,521 | |||
| Personal Products - 0.3% | |||
| Coty, Inc. Class A | 6,343,727 | 69,210 | |
| TOTAL CONSUMER STAPLES | 1,039,432 | ||
| ENERGY - 0.3% | |||
| Oil, Gas & Consumable Fuels - 0.3% | |||
| Cenovus Energy, Inc. (Canada) | 185,000 | 1,720 | |
| Centennial Resource Development, Inc. Class A (a) | 995,300 | 5,922 | |
| Delek U.S. Holdings, Inc. | 74,600 | 3,214 | |
| EOG Resources, Inc. | 15,300 | 1,314 | |
| Reliance Industries Ltd. | 3,217,673 | 54,172 | |
| 66,342 | |||
| FINANCIALS - 2.6% | |||
| Banks - 0.5% | |||
| Bank of America Corp. | 287,400 | 8,817 | |
| Huntington Bancshares, Inc. | 5,201,400 | 74,120 | |
| PacWest Bancorp | 534,900 | 20,663 | |
| 103,600 | |||
| Capital Markets - 1.8% | |||
| Cboe Global Markets, Inc. | 672,900 | 73,555 | |
| CME Group, Inc. | 551,300 | 107,184 | |
| E*TRADE Financial Corp. | 508,420 | 24,806 | |
| Northern Trust Corp. | 645,400 | 63,249 | |
| TD Ameritrade Holding Corp. | 1,504,400 | 76,875 | |
| Virtu Financial, Inc. Class A | 375,800 | 8,147 | |
| 353,816 | |||
| Consumer Finance - 0.3% | |||
| Capital One Financial Corp. | 640,100 | 59,158 | |
| TOTAL FINANCIALS | 516,574 | ||
| HEALTH CARE - 7.3% | |||
| Biotechnology - 4.8% | |||
| Acceleron Pharma, Inc. (a) | 312,800 | 13,657 | |
| Agios Pharmaceuticals, Inc. (a) | 482,335 | 23,205 | |
| Alexion Pharmaceuticals, Inc. (a) | 1,406,489 | 159,341 | |
| Allakos, Inc. (a) | 58,200 | 2,024 | |
| Alnylam Pharmaceuticals, Inc. (a) | 270,200 | 20,965 | |
| Amgen, Inc. | 1,097,234 | 204,722 | |
| AnaptysBio, Inc. (a) | 98,700 | 5,301 | |
| Audentes Therapeutics, Inc. (a) | 48,300 | 1,880 | |
| bluebird bio, Inc. (a) | 379,726 | 49,831 | |
| Blueprint Medicines Corp. (a) | 148,000 | 14,822 | |
| Cellectis SA sponsored ADR (a) | 392,100 | 5,705 | |
| Chimerix, Inc. (a) | 51,300 | 185 | |
| Crinetics Pharmaceuticals, Inc. (a) | 92,700 | 1,880 | |
| DBV Technologies SA sponsored ADR (a)(b) | 1,038,200 | 9,832 | |
| Deciphera Pharmaceuticals, Inc. (a) | 49,500 | 1,094 | |
| FibroGen, Inc. (a) | 190,200 | 8,989 | |
| GenSight Biologics SA (a)(b)(e) | 237,548 | 384 | |
| Heron Therapeutics, Inc. (a) | 1,803,115 | 31,446 | |
| Intercept Pharmaceuticals, Inc. (a) | 406,919 | 25,575 | |
| Ionis Pharmaceuticals, Inc. (a) | 417,902 | 27,523 | |
| Neurocrine Biosciences, Inc. (a) | 743,400 | 71,656 | |
| Regeneron Pharmaceuticals, Inc. (a) | 30,800 | 9,387 | |
| Sage Therapeutics, Inc. (a) | 230,975 | 37,035 | |
| Sarepta Therapeutics, Inc. (a) | 281,900 | 41,961 | |
| Scholar Rock Holding Corp. (a) | 128,000 | 1,573 | |
| The Medicines Company (a) | 231,600 | 8,301 | |
| Trevena, Inc. (a)(b) | 499,321 | 474 | |
| uniQure B.V. (a) | 531,200 | 31,155 | |
| Vertex Pharmaceuticals, Inc. (a) | 589,800 | 98,272 | |
| Xencor, Inc. (a) | 1,237,605 | 54,479 | |
| 962,654 | |||
| Health Care Equipment & Supplies - 1.0% | |||
| Boston Scientific Corp. (a) | 1,329,900 | 56,468 | |
| DexCom, Inc. (a) | 118,100 | 18,526 | |
| Hoya Corp. ADR | 390,600 | 29,920 | |
| Insulet Corp. (a) | 24,300 | 2,987 | |
| Intuitive Surgical, Inc. (a) | 141,346 | 73,431 | |
| ViewRay, Inc. (a)(b) | 1,050,700 | 9,414 | |
| 190,746 | |||
| Health Care Providers & Services - 0.7% | |||
| Elanco Animal Health, Inc. | 99,300 | 3,273 | |
| G1 Therapeutics, Inc. (a) | 314,372 | 7,800 | |
| Humana, Inc. | 258,017 | 76,567 | |
| Neuronetics, Inc. (a) | 43,200 | 515 | |
| UnitedHealth Group, Inc. | 187,800 | 46,764 | |
| 134,919 | |||
| Health Care Technology - 0.0% | |||
| Castlight Health, Inc. Class B (a) | 51,600 | 83 | |
| Life Sciences Tools & Services - 0.2% | |||
| Thermo Fisher Scientific, Inc. | 108,100 | 30,017 | |
| Pharmaceuticals - 0.6% | |||
| AstraZeneca PLC: | |||
| (United Kingdom) | 119,500 | 10,324 | |
| sponsored ADR | 1,241,800 | 53,907 | |
| Collegium Pharmaceutical, Inc. (a) | 636,600 | 6,984 | |
| Jazz Pharmaceuticals PLC (a) | 145,500 | 20,280 | |
| Nektar Therapeutics (a) | 619,700 | 17,637 | |
| TherapeuticsMD, Inc. (a)(b) | 382,900 | 823 | |
| Zogenix, Inc. (a) | 274,600 | 13,227 | |
| 123,182 | |||
| TOTAL HEALTH CARE | 1,441,601 | ||
| INDUSTRIALS - 2.5% | |||
| Aerospace & Defense - 0.2% | |||
| Space Exploration Technologies Corp.: | |||
| Class A (a)(c)(d) | 203,488 | 43,546 | |
| Class C (a)(c)(d) | 7,092 | 1,518 | |
| 45,064 | |||
| Airlines - 0.5% | |||
| Spirit Airlines, Inc. (a) | 1,070,200 | 45,409 | |
| United Continental Holdings, Inc. (a) | 421,600 | 38,749 | |
| Wheels Up Partners Holdings LLC Series B (a)(c)(d)(f) | 1,760,377 | 6,126 | |
| 90,284 | |||
| Commercial Services & Supplies - 0.6% | |||
| Copart, Inc. (a) | 1,254,700 | 97,277 | |
| Evoqua Water Technologies Corp. (a) | 261,500 | 3,719 | |
| Tomra Systems ASA | 354,100 | 10,467 | |
| 111,463 | |||
| Machinery - 0.0% | |||
| Deere & Co. | 51,900 | 8,597 | |
| Professional Services - 0.0% | |||
| CoStar Group, Inc. (a) | 4,800 | 2,954 | |
| Recruit Holdings Co. Ltd. | 70,900 | 2,401 | |
| 5,355 | |||
| Road & Rail - 1.1% | |||
| CSX Corp. | 798,300 | 56,200 | |
| J.B. Hunt Transport Services, Inc. | 111,391 | 11,403 | |
| Lyft, Inc. | 1,237,519 | 71,561 | |
| Uber Technologies, Inc. | 2,383,388 | 90,392 | |
| 229,556 | |||
| Trading Companies & Distributors - 0.1% | |||
| HD Supply Holdings, Inc. (a) | 274,200 | 11,108 | |
| TOTAL INDUSTRIALS | 501,427 | ||
| INFORMATION TECHNOLOGY - 41.6% | |||
| Communications Equipment - 1.6% | |||
| Acacia Communications, Inc. (a) | 149,000 | 10,008 | |
| Arista Networks, Inc. (a) | 175,300 | 47,936 | |
| Cisco Systems, Inc. | 4,325,100 | 239,611 | |
| Tencent Music Entertainment Group ADR (a)(b) | 2,104,500 | 30,031 | |
| 327,586 | |||
| IT Services - 3.9% | |||
| Akamai Technologies, Inc. (a) | 637,300 | 56,165 | |
| Fastly, Inc. Class A (b) | 40,500 | 879 | |
| Fidelity National Information Services, Inc. | 160,800 | 21,427 | |
| Fiserv, Inc. (a) | 194,000 | 20,453 | |
| FleetCor Technologies, Inc. (a) | 18,000 | 5,115 | |
| GoDaddy, Inc. (a) | 1,237,900 | 90,837 | |
| MasterCard, Inc. Class A | 478,400 | 130,254 | |
| Netcompany Group A/S (a)(e) | 72,500 | 2,848 | |
| PayPal Holdings, Inc. (a) | 1,718,600 | 189,733 | |
| Shopify, Inc. Class A (a) | 380,626 | 120,956 | |
| Visa, Inc. Class A | 412,800 | 73,478 | |
| Wix.com Ltd. (a) | 420,200 | 62,408 | |
| 774,553 | |||
| Semiconductors & Semiconductor Equipment - 11.2% | |||
| Analog Devices, Inc. | 890,400 | 104,586 | |
| Applied Materials, Inc. | 3,121,700 | 154,118 | |
| ASML Holding NV | 519,665 | 115,787 | |
| Broadcom, Inc. | 620,266 | 179,871 | |
| Intel Corp. | 1,167,300 | 59,007 | |
| KLA-Tencor Corp. | 93,700 | 12,773 | |
| Lam Research Corp. | 849,600 | 177,235 | |
| Marvell Technology Group Ltd. | 10,279,136 | 269,930 | |
| Microchip Technology, Inc. (b) | 140,700 | 13,285 | |
| Micron Technology, Inc. (a) | 2,550,344 | 114,485 | |
| NVIDIA Corp. | 2,010,601 | 339,229 | |
| NXP Semiconductors NV | 1,675,200 | 173,199 | |
| Qorvo, Inc. (a) | 379,800 | 27,836 | |
| Qualcomm, Inc. | 3,706,976 | 271,202 | |
| Skyworks Solutions, Inc. | 1,247,600 | 106,395 | |
| Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR | 2,457,300 | 104,755 | |
| 2,223,693 | |||
| Software - 15.3% | |||
| 2U, Inc. (a) | 260,841 | 3,339 | |
| Adobe, Inc. (a) | 1,219,400 | 364,430 | |
| Atom Tickets LLC (a)(c)(d)(f) | 516,103 | 991 | |
| Autodesk, Inc. (a) | 856,820 | 133,810 | |
| Black Knight, Inc. (a) | 1,406,800 | 89,079 | |
| Carbon Black, Inc. (a) | 30,000 | 558 | |
| Cardlytics, Inc. (a) | 272,632 | 7,743 | |
| Dataminr, Inc. Series E (a)(c)(d) | 950,001 | 19,209 | |
| Dropbox, Inc. Class A (a) | 215,316 | 5,073 | |
| Everbridge, Inc. (a) | 230,971 | 23,628 | |
| HIVE Blockchain Technologies Ltd. (a)(b) | 2,809,100 | 702 | |
| HIVE Blockchain Technologies Ltd. warrants 11/14/19 (a) | 2,163,600 | 16 | |
| HubSpot, Inc. (a) | 125,580 | 22,444 | |
| Intuit, Inc. | 480,100 | 133,137 | |
| Microsoft Corp. | 13,668,799 | 1,862,648 | |
| Nutanix, Inc. Class A (a) | 273,997 | 6,220 | |
| Parametric Technology Corp. (a) | 53,500 | 3,626 | |
| Paylocity Holding Corp. (a) | 181,900 | 18,570 | |
| Pivotal Software, Inc. (a) | 2,623,245 | 24,868 | |
| Pluralsight, Inc. (a) | 205,100 | 6,295 | |
| Proofpoint, Inc. (a) | 121,300 | 15,308 | |
| Salesforce.com, Inc. (a) | 1,500,848 | 231,881 | |
| ServiceNow, Inc. (a) | 13,300 | 3,689 | |
| Talend SA ADR (a) | 1,194,500 | 39,192 | |
| Tanium, Inc. Class B (a)(c)(d) | 392,200 | 4,185 | |
| Workday, Inc. Class A (a) | 136,900 | 27,377 | |
| 3,048,018 | |||
| Technology Hardware, Storage & Peripherals - 9.6% | |||
| Apple, Inc. | 8,435,360 | 1,797,069 | |
| Samsung Electronics Co. Ltd. | 1,825,780 | 68,864 | |
| Western Digital Corp. | 927,600 | 49,988 | |
| 1,915,921 | |||
| TOTAL INFORMATION TECHNOLOGY | 8,289,771 | ||
| MATERIALS - 0.1% | |||
| Chemicals - 0.1% | |||
| FMC Corp. | 50,880 | 4,397 | |
| LG Chemical Ltd. | 43,715 | 12,313 | |
| 16,710 | |||
| Metals & Mining - 0.0% | |||
| Livent Corp. | 47,588 | 306 | |
| TOTAL MATERIALS | 17,016 | ||
| REAL ESTATE - 0.9% | |||
| Equity Real Estate Investment Trusts (REITs) - 0.9% | |||
| American Tower Corp. | 360,500 | 76,289 | |
| Ant International Co. Ltd. Class C (a)(c)(d) | 6,818,398 | 53,934 | |
| Crown Castle International Corp. | 152,400 | 20,309 | |
| Equinix, Inc. | 42,800 | 21,490 | |
| 172,022 | |||
| TOTAL COMMON STOCKS | |||
| (Cost $12,513,562) | 19,529,972 | ||
| Preferred Stocks - 1.7% | |||
| Convertible Preferred Stocks - 1.6% | |||
| COMMUNICATION SERVICES - 0.0% | |||
| Wireless Telecommunication Services - 0.0% | |||
| Altiostar Networks, Inc. Series A1 (a)(c)(d) | 2,113,909 | 5,200 | |
| CONSUMER DISCRETIONARY - 0.3% | |||
| Internet & Direct Marketing Retail - 0.3% | |||
| One Kings Lane, Inc. Series E (Escrow) (a)(c)(d) | 648,635 | 259 | |
| Reddit, Inc.: | |||
| Series B (a)(c)(d) | 1,337,584 | 29,007 | |
| Series C (a)(c)(d) | 300,673 | 6,520 | |
| Series D (c)(d) | 929,200 | 20,151 | |
| The Honest Co., Inc. Series D (a)(c)(d) | 75,268 | 3,444 | |
| 59,381 | |||
| CONSUMER STAPLES - 0.2% | |||
| Food & Staples Retailing - 0.2% | |||
| Roofoods Ltd. Series F (a)(c)(d) | 93,930 | 39,253 | |
| FINANCIALS - 0.0% | |||
| Insurance - 0.0% | |||
| Clover Health Series D (a)(c)(d) | 620,983 | 5,823 | |
| HEALTH CARE - 0.3% | |||
| Biotechnology - 0.2% | |||
| 23andMe, Inc.: | |||
| Series E (a)(c)(d) | 1,817,170 | 23,950 | |
| Series F (a)(c)(d) | 683,367 | 9,007 | |
| 32,957 | |||
| Health Care Providers & Services - 0.1% | |||
| Mulberry Health, Inc. Series A8 (a)(c)(d) | 4,342,250 | 32,046 | |
| TOTAL HEALTH CARE | 65,003 | ||
| INDUSTRIALS - 0.1% | |||
| Aerospace & Defense - 0.1% | |||
| Space Exploration Technologies Corp.: | |||
| Series G (a)(c)(d) | 62,037 | 13,276 | |
| Series H (a)(c)(d) | 65,670 | 14,053 | |
| 27,329 | |||
| Professional Services - 0.0% | |||
| YourPeople, Inc. Series C (a)(c)(d) | 335,546 | 1,282 | |
| TOTAL INDUSTRIALS | 28,611 | ||
| INFORMATION TECHNOLOGY - 0.6% | |||
| Internet Software & Services - 0.0% | |||
| Starry, Inc. Series B (a)(c)(d) | 1,811,120 | 2,590 | |
| IT Services - 0.0% | |||
| AppNexus, Inc.: | |||
| Series E (Escrow) (a)(c)(d) | 1,416,796 | 1,367 | |
| Series F (Escrow) (a)(c)(d) | 90,913 | 112 | |
| 1,479 | |||
| Software - 0.6% | |||
| Cloudflare, Inc. Series D, 8.00% (a)(c)(d) | 395,787 | 7,833 | |
| Dataminr, Inc. Series D (a)(c)(d) | 2,219,446 | 44,877 | |
| Delphix Corp. Series D (a)(c)(d) | 427,177 | 3,862 | |
| Jello Labs, Inc. Series C (a)(c)(d) | 302,678 | 0 | |
| Jet.Com, Inc. Series B1 (Escrow) (a)(c)(d) | 4,896,249 | 222 | |
| Taboola.Com Ltd. Series E (a)(c)(d) | 1,918,392 | 47,538 | |
| 104,332 | |||
| TOTAL INFORMATION TECHNOLOGY | 108,401 | ||
| REAL ESTATE - 0.1% | |||
| Real Estate Management & Development - 0.1% | |||
| WeWork Companies, Inc.: | |||
| Series E (a)(c)(d) | 269,091 | 14,531 | |
| Series F (a)(c)(d) | 14,513 | 784 | |
| 15,315 | |||
| TOTAL CONVERTIBLE PREFERRED STOCKS | 326,987 | ||
| Nonconvertible Preferred Stocks - 0.1% | |||
| HEALTH CARE - 0.1% | |||
| Pharmaceuticals - 0.1% | |||
| Castle Creek Pharmaceutical Holdings, Inc. Series A4 (c)(d) | 30,303 | 12,748 | |
| TOTAL PREFERRED STOCKS | |||
| (Cost $256,452) | 339,735 | ||
| Money Market Funds - 0.6% | |||
| Fidelity Cash Central Fund 2.43% (g) | 39,259,591 | 39,267 | |
| Fidelity Securities Lending Cash Central Fund 2.43% (g)(h) | 81,195,296 | 81,203 | |
| TOTAL MONEY MARKET FUNDS | |||
| (Cost $120,470) | 120,470 | ||
| TOTAL INVESTMENT IN SECURITIES - 100.4% | |||
| (Cost $12,890,484) | 19,990,177 | ||
| NET OTHER ASSETS (LIABILITIES) - (0.4)% | (72,393) | ||
| NET ASSETS - 100% | $19,917,784 |
Values shown as $0 in the Schedule of Investments may reflect amounts less than $500.
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $470,041,000 or 2.4% of net assets.
(d) Level 3 security
(e) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $5,417,000 or 0.0% of net assets.
(f) Investment is owned by a wholly-owned subsidiary (Subsidiary) that is treated as a corporation for U.S. tax purposes.
(g) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(h) Investment made with cash collateral received from securities on loan.
Additional information on each restricted holding is as follows:
| Security | Acquisition Date | Acquisition Cost (000s) |
| 23andMe, Inc. Series E | 6/18/15 | $19,675 |
| 23andMe, Inc. Series F | 8/31/17 | $9,488 |
| Altiostar Networks, Inc. Series A1 | 1/10/17 | $9,724 |
| Ant International Co. Ltd. Class C | 5/16/18 | $38,251 |
| AppNexus, Inc. Series E (Escrow) | 8/1/14 - 9/17/14 | $2,554 |
| AppNexus, Inc. Series F (Escrow) | 8/23/16 | $213 |
| Atom Tickets LLC | 8/15/17 | $3,000 |
| Castle Creek Pharmaceutical Holdings, Inc. Series A4 | 9/29/16 | $10,011 |
| Cloudflare, Inc. Series D, 8.00% | 11/5/14 | $2,424 |
| Clover Health Series D | 6/7/17 | $5,823 |
| Dataminr, Inc. Series D | 2/18/15 - 3/6/15 | $28,298 |
| Dataminr, Inc. Series E | 7/28/17 - 5/21/18 | $14,368 |
| Delphix Corp. Series D | 7/10/15 | $3,845 |
| Jello Labs, Inc. Series C | 12/22/16 | $4,899 |
| Jet.Com, Inc. Series B1 (Escrow) | 3/19/18 | $0 |
| Mulberry Health, Inc. Series A8 | 1/20/16 | $29,331 |
| One Kings Lane, Inc. Series E (Escrow) | 1/29/14 | $401 |
| Reddit, Inc. Series B | 7/26/17 | $18,989 |
| Reddit, Inc. Series C | 7/24/17 | $4,743 |
| Reddit, Inc. Series D | 2/4/19 | $20,151 |
| Roofoods Ltd. Series F | 9/12/17 | $33,211 |
| Space Exploration Technologies Corp. Class A | 10/16/15 - 9/11/17 | $21,156 |
| Space Exploration Technologies Corp. Class C | 9/11/17 | $957 |
| Space Exploration Technologies Corp. Series G | 1/20/15 | $4,805 |
| Space Exploration Technologies Corp. Series H | 8/4/17 | $8,865 |
| Starry, Inc. Series B | 12/1/16 | $980 |
| Taboola.Com Ltd. Series E | 12/22/14 | $20,000 |
| Tanium, Inc. Class B | 4/21/17 | $1,947 |
| The Honest Co., Inc. Series D | 8/3/15 | $3,444 |
| Turn, Inc. (Escrow) | 4/11/17 | $719 |
| WeWork Companies, Inc. Series E | 6/23/15 | $8,850 |
| WeWork Companies, Inc. Series F | 12/1/16 | $728 |
| Wheels Up Partners Holdings LLC Series B | 9/18/15 | $5,000 |
| YourPeople, Inc. Series C | 5/1/15 | $5,000 |
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
| Fund | Income earned |
| (Amounts in thousands) | |
| Fidelity Cash Central Fund | $1,257 |
| Fidelity Securities Lending Cash Central Fund | 2,974 |
| Total | $4,231 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable. Amount for Fidelity Securities Lending Cash Central Fund 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.
Investment Valuation
The following is a summary of the inputs used, as of July 31, 2019, 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 below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| Valuation Inputs at Reporting Date: | ||||
| Description | Total | Level 1 | Level 2 | Level 3 |
| (Amounts in thousands) | ||||
| Investments in Securities: | ||||
| Equities: | ||||
| Communication Services | $4,333,634 | $4,316,323 | $11,314 | $5,997 |
| Consumer Discretionary | 3,216,734 | 3,063,233 | 94,120 | 59,381 |
| Consumer Staples | 1,078,685 | 872,834 | 166,598 | 39,253 |
| Energy | 66,342 | 12,170 | 54,172 | -- |
| Financials | 522,397 | 516,574 | -- | 5,823 |
| Health Care | 1,519,352 | 1,431,277 | 10,324 | 77,751 |
| Industrials | 530,038 | 285,883 | 164,354 | 79,801 |
| Information Technology | 8,398,172 | 8,196,522 | 68,864 | 132,786 |
| Materials | 17,016 | 4,703 | 12,313 | -- |
| Real Estate | 187,337 | 118,088 | -- | 69,249 |
| Money Market Funds | 120,470 | 120,470 | -- | -- |
| Total Investments in Securities: | $19,990,177 | $18,938,077 | $582,059 | $470,041 |
The following is a reconciliation of Investments in Securities and Derivative Instruments for which Level 3 inputs were used in determining value:
| (Amounts in thousands) | |
| Investments in Securities: | |
| Equities - Information Technology | |
| Beginning Balance | $ 359,526 |
| Net Realized Gain (Loss) on Investment Securities | (11,371) |
| Net Unrealized Gain (Loss) on Investment Securities | (89,335) |
| Cost of Purchases | 14,201 |
| Proceeds of Sales | (140,235) |
| Amortization/Accretion | -- |
| Transfers into Level 3 | -- |
| Transfers out of Level 3 | -- |
| Ending Balance | $ 132,786 |
| The change in unrealized gain (loss) for the period attributable to Level 3 securities held at July 31, 2019 | $(40,671) |
| Equities - Other Investments in Securities | |
| Beginning Balance | $ 290,448 |
| Net Realized Gain (Loss) on Investment Securities | 634 |
| Net Unrealized Gain (Loss) on Investment Securities | 39,627 |
| Cost of Purchases | 30,168 |
| Proceeds of Sales | (23,622) |
| Amortization/Accretion | -- |
| Transfers into Level 3 | -- |
| Transfers out of Level 3 | -- |
| Ending Balance | 337,255 |
| The change in unrealized gain (loss) for the period attributable to Level 3 securities held at July 31, 2019 | $ 48,718 |
The information used in the above reconciliations represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliations are included in Net Gain (Loss) on the Fund's Statement of Operations.
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
| United States of America | 89.4% |
| Cayman Islands | 2.7% |
| Netherlands | 1.7% |
| Bermuda | 1.3% |
| United Kingdom | 1.3% |
| Others (Individually Less Than 1%) | 3.6% |
| 100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
| Amounts in thousands (except per-share amounts) | July 31, 2019 | |
| Assets | ||
| Investment in securities, at value (including securities loaned of $78,416) — See accompanying schedule: Unaffiliated issuers (cost $12,770,014) | $19,869,707 | |
| Fidelity Central Funds (cost $120,470) | 120,470 | |
| Total Investment in Securities (cost $12,890,484) | $19,990,177 | |
| Cash | 617 | |
| Receivable for investments sold | 77,175 | |
| Receivable for fund shares sold | 12,476 | |
| Dividends receivable | 942 | |
| Distributions receivable from Fidelity Central Funds | 114 | |
| Prepaid expenses | 48 | |
| Other receivables | 995 | |
| Total assets | 20,082,544 | |
| Liabilities | ||
| Payable for investments purchased | $56,323 | |
| Payable for fund shares redeemed | 13,000 | |
| Accrued management fee | 11,441 | |
| Other affiliated payables | 1,922 | |
| Other payables and accrued expenses | 879 | |
| Collateral on securities loaned | 81,195 | |
| Total liabilities | 164,760 | |
| Net Assets | $19,917,784 | |
| Net Assets consist of: | ||
| Paid in capital | $11,623,039 | |
| Total distributable earnings (loss) | 8,294,745 | |
| Net Assets | $19,917,784 | |
| Net Asset Value and Maximum Offering Price | ||
| OTC: | ||
| Net Asset Value, offering price and redemption price per share ($13,165,728 ÷ 1,057,509 shares) | $12.45 | |
| Class K: | ||
| Net Asset Value, offering price and redemption price per share ($6,752,056 ÷ 534,126 shares) | $12.64 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| Amounts in thousands | Year ended July 31, 2019 | |
| Investment Income | ||
| Dividends | $147,030 | |
| Income from Fidelity Central Funds (including $2,974 from security lending) | 4,231 | |
| Total income | 151,261 | |
| Expenses | ||
| Management fee | ||
| Basic fee | $114,100 | |
| Performance adjustment | 26,986 | |
| Transfer agent fees | 21,306 | |
| Accounting and security lending fees | 1,718 | |
| Custodian fees and expenses | 372 | |
| Independent trustees' fees and expenses | 108 | |
| Registration fees | 275 | |
| Audit | 91 | |
| Legal | 48 | |
| Interest | 78 | |
| Miscellaneous | 131 | |
| Total expenses before reductions | 165,213 | |
| Expense reductions | (405) | |
| Total expenses after reductions | 164,808 | |
| Net investment income (loss) | (13,547) | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | 2,129,421 | |
| Fidelity Central Funds | 3 | |
| Foreign currency transactions | 86 | |
| Total net realized gain (loss) | 2,129,510 | |
| Change in net unrealized appreciation (depreciation) on: | ||
| Investment securities: | ||
| Unaffiliated issuers (net of decrease in deferred foreign taxes of $834) | (1,100,198) | |
| Assets and liabilities in foreign currencies | (15) | |
| Total change in net unrealized appreciation (depreciation) | (1,100,213) | |
| Net gain (loss) | 1,029,297 | |
| Net increase (decrease) in net assets resulting from operations | $1,015,750 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Amounts in thousands | Year ended July 31, 2019 | Year ended July 31, 2018 |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $(13,547) | $(25,774) |
| Net realized gain (loss) | 2,129,510 | 990,764 |
| Change in net unrealized appreciation (depreciation) | (1,100,213) | 2,950,958 |
| Net increase (decrease) in net assets resulting from operations | 1,015,750 | 3,915,948 |
| Distributions to shareholders | (1,313,763) | – |
| Distributions to shareholders from net realized gain | – | (808,260) |
| Total distributions | (1,313,763) | (808,260) |
| Share transactions - net increase (decrease) | (412,601) | 1,722,903 |
| Total increase (decrease) in net assets | (710,614) | 4,830,591 |
| Net Assets | ||
| Beginning of period | 20,628,398 | 15,797,807 |
| End of period | $19,917,784 | $20,628,398 |
| Other Information | ||
| Accumulated net investment loss end of period | $(19,053) |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity OTC Portfolio
| Years ended July 31, | 2019 | 2018A | 2017A | 2016A | 2015A |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $12.50 | $10.57 | $8.53 | $8.70 | $8.12 |
| Income from Investment Operations | |||||
| Net investment income (loss)B | (.01) | (.02) | (.02) | (.01) | (.01) |
| Net realized and unrealized gain (loss) | .75 | 2.48 | 2.33 | .29 | 1.62 |
| Total from investment operations | .74 | 2.46 | 2.31 | .28 | 1.61 |
| Distributions from net realized gain | (.79) | (.53) | (.27) | (.45) | (1.03) |
| Total distributions | (.79) | (.53) | (.27) | (.45) | (1.03) |
| Net asset value, end of period | $12.45 | $12.50 | $10.57 | $8.53 | $8.70 |
| Total ReturnC | 6.43% | 24.34% | 27.97% | 3.68% | 21.34% |
| Ratios to Average Net AssetsD,E | |||||
| Expenses before reductions | .88% | .88% | .81% | .91% | .83% |
| Expenses net of fee waivers, if any | .88% | .88% | .81% | .91% | .83% |
| Expenses net of all reductions | .88% | .88% | .81% | .90% | .83% |
| Net investment income (loss) | (.10)% | (.17)% | (.16)% | (.07)% | (.13)% |
| Supplemental Data | |||||
| Net assets, end of period (in millions) | $13,166 | $13,340 | $12,136 | $9,845 | $9,710 |
| Portfolio turnover rateF,G | 34% | 38% | 71% | 56% | 66% |
A Per share amounts have been adjusted to reflect the impact of the 10 for 1 share split that occurred on May 11, 2018.
B Calculated based on average shares outstanding during the period.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D 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.
E 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.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Fidelity OTC Portfolio Class K
| Years ended July 31, | 2019 | 2018A | 2017 A | 2016A | 2015A |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $12.67 | $10.70 | $8.62 | $8.79 | $8.20 |
| Income from Investment Operations | |||||
| Net investment income (loss)B | –C | (.01) | (.01) | –C | –C |
| Net realized and unrealized gain (loss) | .76 | 2.52 | 2.36 | .29 | 1.63 |
| Total from investment operations | .76 | 2.51 | 2.35 | .29 | 1.63 |
| Distributions from net realized gain | (.79) | (.54) | (.27) | (.46) | (1.04) |
| Total distributions | (.79) | (.54) | (.27) | (.46) | (1.04) |
| Net asset value, end of period | $12.64 | $12.67 | $10.70 | $8.62 | $8.79 |
| Total ReturnD | 6.50% | 24.48% | 28.12% | 3.80% | 21.49% |
| Ratios to Average Net AssetsE,F | |||||
| Expenses before reductions | .79% | .78% | .70% | .79% | .72% |
| Expenses net of fee waivers, if any | .79% | .78% | .70% | .79% | .72% |
| Expenses net of all reductions | .78% | .77% | .70% | .79% | .71% |
| Net investment income (loss) | (.01)% | (.07)% | (.05)% | .05% | (.02)% |
| Supplemental Data | |||||
| Net assets, end of period (in millions) | $6,752 | $7,288 | $3,662 | $3,508 | $3,836 |
| Portfolio turnover rateG,H | 34% | 38% | 71% | 56% | 66% |
A Per share amounts have been adjusted to reflect the impact of the 10 for 1 share split that occurred on May 11, 2018.
B Calculated based on average shares outstanding during the period.
C Amount represents less than $.005 per share.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
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 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.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended July 31, 2019
(Amounts in thousands except percentages)
1. Organization.
Fidelity OTC Portfolio (the Fund) is a non-diversified fund of Fidelity Securities Fund (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers OTC and Class K shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date ranged from less than .005% to .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investments Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy. Equity securities, including restricted securities, for which observable inputs are not available are valued using alternate valuation approaches, including the market approach and the income approach and are categorized as Level 3 in the hierarchy. The market approach generally consists of using comparable market transactions while the income approach generally consists of using the net present value of estimated future cash flows, adjusted as appropriate for liquidity, credit, market and/or other risk factors.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
The following provides information on Level 3 securities held by the Fund that were valued at period end based on unobservable inputs. These amounts exclude valuations provided by a broker.
| Asset Type | Fair Value | Valuation Technique(s) | Unobservable Input | Amount or Range/Weighted Average | Impact to Valuation from an Increase in Input(a) |
| Equities | $ 470,041 | Market comparable | Enterprise value/Sales multiple (EV/S) | 1.2 - 15.9 / 6.5 | Increase |
| Transaction price | $411.85 | Increase | |||
| Discount rate | 6.0% - 75.0% / 29.1% | Decrease | |||
| Premium rate | 6.9% - 75.7% / 30.8% | Increase | |||
| Conversion ratio | 3.0 | Increase | |||
| Discount for lack of marketability | 10.0% - 25.0% / 15.4% | Decrease | |||
| Liquidity preference | $14.90 - $45.76 / $37.39 | Increase | |||
| Proxy premium | 0.2% | Increase | |||
| Recovery value | Recovery value | 0.0% - 1.2% / 0.8% | Increase | ||
| Market approach | Transaction price | $1.43 - $417.90 / $172.48 | Increase |
(a) Represents the directional change in the fair value of the Level 3 investments that could have resulted from an increase in the corresponding input as of period end. A decrease to the unobservable input would have had the opposite effect. Significant changes in these inputs may have resulted in a significantly higher or lower fair value measurement at period end.
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 July 31, 2019, as well as a roll forward of Level 3 investments, is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan) for the Fund, certain independent Trustees have elected to defer receipt of a portion of their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees of $515 are included in the accompanying Statement of Assets and Liabilities in other receivables and other payables and accrued expenses, respectively.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. As of July 31, 2019, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests. The Fund is subject to a tax imposed on capital gains by certain countries in which it invests. An estimated deferred tax liability for net unrealized appreciation on the applicable securities is included in Other payables and accrued expenses on the Statement of Assets & Liabilities.
Distributions are declared and recorded on the ex-dividend date. Income and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, certain foreign taxes, passive foreign investment companies (PFIC), redemptions in kind, partnerships, net operating losses, deferred trustees compensation, losses deferred due to wash sales and excise tax regulations.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
| Gross unrealized appreciation | $7,607,640 |
| Gross unrealized depreciation | (551,017) |
| Net unrealized appreciation (depreciation) | $7,056,623 |
| Tax Cost | $12,933,554 |
The tax-based components of distributable earnings as of period end were as follows:
| Undistributed long-term capital gain | $1,298,694 |
| Net unrealized appreciation (depreciation) on securities and other investments | $7,056,578 |
The Fund intends to elect to defer to its next fiscal year $59,839 of capital losses recognized during the period November 1, 2018 to July 31, 2019.
The tax character of distributions paid was as follows:
| July 31, 2019 | July 31, 2018 | |
| Ordinary Income | $– | $ 115,477 |
| Long-term Capital Gains | 1,313,763 | 692,783 |
| Total | $1,313,763 | $808,260 |
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
Consolidated Subsidiary. The Fund invests in certain investments through a wholly-owned subsidiary ("Subsidiary"), which may be subject to federal and state taxes upon disposition.
As of period end, the Fund held an investment of $7,117 in these Subsidiaries, representing .04% of the Fund's net assets. The financial statements have been consolidated and include accounts of the Fund and each Subsidiary. Accordingly, all inter-company transactions and balances have been eliminated.
New Rule Issuance. During August 2018, the U.S. Securities and Exchange Commission issued Final Rule Release No. 33-10532, Disclosure Update and Simplification. This Final Rule includes amendments specific to registered investment companies that are intended to eliminate overlap in disclosure requirements between Regulation S-X and GAAP. In accordance with these amendments, certain line-items in the Fund's financial statements have been combined or removed for the current period as outlined in the table below.
| Financial Statement | Current Line-Item Presentation (As Applicable) | Prior Line-Item Presentation (As Applicable) |
| Statement of Assets and Liabilities | Total distributable earnings (loss) | Undistributed/Distributions in excess of/Accumulated net investment income (loss) Accumulated/Undistributed net realized gain (loss) Net unrealized appreciation (depreciation) |
| Statement of Changes in Net Assets | N/A - removed | Undistributed/Distributions in excess of/Accumulated net investment income (loss) end of period |
| Statement of Changes in Net Assets | Distributions to shareholders | Distributions to shareholders from net investment income Distributions to shareholders from net realized gain |
| Distributions to Shareholders Note to Financial Statements | Distributions to shareholders | Distributions to shareholders from net investment income Distributions to shareholders from net realized gain |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and in-kind transactions, aggregated $6,586,861 and $7,933,207, respectively.
Unaffiliated Redemptions In-Kind. During the period, 41,188 shares of the Fund were redeemed in-kind for investments and cash with a value of $420,938. The net realized gain of $216,334 on investments delivered through in-kind redemptions is included in the accompanying Statement of Operations. The amount of the in-kind redemptions is included in share transactions in the accompanying Statement of Changes in Net Assets as well as the Notes to Financial Statements. The Fund recognized no gain or loss for federal income tax purposes.
Prior Fiscal Year Unaffiliated Redemptions In-Kind.
During the prior period, 6,067* shares of the Fund were redeemed in-kind for investments and cash with a value of $65,932. The Fund had a net realized gain of $35,542 on investments delivered through in-kind redemptions. The amount of the in-kind redemptions is included in share transactions in the accompanying Statement of Changes in Net Assets as well as the Notes to Financial Statements. The Fund recognized no gain or loss for federal income tax purposes.
* Share activity prior to May 11, 2018 has been adjusted to reflect the impact of the 10 for 1 share split that occurred on that date.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .35% of the Fund's average net assets and an annualized group fee rate that averaged .24% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of +/- .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of OTC as compared to its benchmark index, the Nasdaq Composite Index, over the same 36 month performance period. For the reporting period, the total annual management fee rate, including the performance adjustment, was .73% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the OTC, except for Class K. FIIOC receives an asset-based fee of Class K's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
| Amount | % of Class-Level Average Net Assets | |
| OTC | $18,214 | .14 |
| Class K | 3,092 | .05 |
| $21,306 |
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Prior to April 1, 2019, FSC had a separate agreement with the Fund for administration of the security lending program, based on the number and duration of lending transactions. For the period, the total fees paid for accounting and administration of securities lending were equivalent to an annual rate of .01%.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $173 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with Fidelity Management & Research Company (FMR) or other affiliated entities of FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
| Borrower or Lender | Average Loan Balance | Weighted Average Interest Rate | Interest Expense |
| Borrower | $27,306 | 2.64% | $78 |
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
Other. During the period, the investment adviser reimbursed the Fund for certain losses in the amount of $23.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $52 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. For equity securities, lending agents are used, including National Financial Services (NFS), an affiliate of the Fund. Pursuant to a securities lending agreement, NFS will receive a fee, which is capped at 9.9% of daily lending revenue, for its services as lending agent. The Fund may lend securities to certain qualified borrowers, including NFS. 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. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. The value of securities loaned to NFS, as affiliated borrower, at period end was $4,579. Total fees paid by the Fund to NFS, as lending agent, amounted to $4. 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 $101 from securities loaned to NFS, as affiliated borrower.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $256 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses. During the period, custodian credits reduced the Fund's expenses by $5. During the period, transfer agent credits reduced each class' expenses as noted in the table below.
| Expense reduction | |
| OTC | $4 |
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $140.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Year ended July 31, 2019 | Year ended July 31, 2018 | |
| Distributions to shareholders | ||
| OTC | $854,603 | $ - |
| Class K | 459,160 | - |
| Total | $1,313,763 | $ - |
| From net realized gain | ||
| OTC | $- | $625,108 |
| Class K | - | 183,152 |
| Total | $- | $808,260 |
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
| Shares | Shares | Dollars | Dollars | |
| Year ended July 31, 2019 | Year ended July 31, 2018(a) | Year ended July 31, 2019 | Year ended July 31, 2018 | |
| OTC | ||||
| Shares sold | 182,454 | 331,678 | $2,166,729 | $3,791,174 |
| Reinvestment of distributions | 69,503 | 57,393 | 812,954 | 601,211 |
| Shares redeemed | (261,680) | (470,239) | (2,992,015) | (5,259,220) |
| Net increase (decrease) | (9,723) | (81,168) | $(12,332) | $(866,835) |
| Class K | ||||
| Shares sold | 66,477 | 342,672 | $791,678 | $3,868,013 |
| Reinvestment of distributions | 38,747 | 17,273 | 459,160 | 183,152 |
| Shares redeemed | (146,402)(b) | (126,942)(c) | (1,651,108)(b) | (1,461,427)(c) |
| Net increase (decrease) | (41,178) | 233,003 | $(400,270) | $2,589,738 |
(a) Share activity prior to May 11, 2018 has been adjusted to reflect the impact of the 10 for 1 share split that occurred on that date.
(b) Amount includes in-kind redemptions (see the Unaffiliated Redemption In-Kind note for additional details).
(c) Amount includes in-kind redemptions (see the Prior Fiscal Year Unaffiliated Redemption In-Kind note for additional details).
11. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Securities Fund and Shareholders of Fidelity OTC Portfolio:
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statement of assets and liabilities of Fidelity OTC Fund (the "Fund"), a fund of Fidelity Securities Fund, including the schedule of investments, as of July 31, 2019, the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of July 31, 2019, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund's financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion.
/s/ Deloitte & Touche LLP
Boston, Massachusetts
September 13, 2019
We have served as the auditor of one or more of the Fidelity investment companies since 1999.
Trustees and Officers
The Trustees, Members of the Advisory Board (if any), and officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Except for Jonathan Chiel, each of the Trustees oversees 298 funds. Mr. Chiel oversees 170 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the fund is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund's Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544 if you’re an individual investing directly with Fidelity, call 1-800-835-5092 if you’re a plan sponsor or participant with Fidelity as your recordkeeper or call 1-877-208-0098 on institutional accounts or if you’re an advisor or invest through one.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Board Structure and Oversight Function. James C. Curvey is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Ned C. Lautenbach serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and other equity funds. The asset allocation funds may invest in Fidelity® funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Jonathan Chiel (1957)
Year of Election or Appointment: 2016
Trustee
Mr. Chiel also serves as Trustee of other Fidelity® funds. Mr. Chiel is Executive Vice President and General Counsel for FMR LLC (diversified financial services company, 2012-present). Previously, Mr. Chiel served as general counsel (2004-2012) and senior vice president and deputy general counsel (2000-2004) for John Hancock Financial Services; a partner with Choate, Hall & Stewart (1996-2000) (law firm); and an Assistant United States Attorney for the United States Attorney’s Office of the District of Massachusetts (1986-95), including Chief of the Criminal Division (1993-1995). Mr. Chiel is a director on the boards of the Boston Bar Foundation and the Maimonides School.
James C. Curvey (1935)
Year of Election or Appointment: 2007
Trustee
Chairman of the Board of Trustees
Mr. Curvey also serves as Trustee of other Fidelity® funds. Mr. Curvey is Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey is an Overseer Emeritus for the Boston Symphony Orchestra, a Director of Artis-Naples, and a Trustee of Brewster Academy in Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-2018), Director of Fidelity Investments Money Management, Inc. (investment adviser firm, 2009-2014) and a Director of FMR and FMR Co., Inc. (investment adviser firms, 2007-2014).
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), as a member of the Independent Directors Council (IDC) Governing Council (2010-2015), and as a member of the Board of Directors for The Brookville Center for Children’s Services, Inc. (2009-2017). Mr. Dirks is a member of the Finance Committee (2016-present) and Board of Directors (2017-present) and is Treasurer (2018-present) of the Asolo Repertory Theatre.
Donald F. Donahue (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Donahue also serves as a Trustee of other Fidelity® funds. Mr. Donahue is President and Chief Executive Officer of Miranda Partners, LLC (risk consulting for the financial services industry, 2012-present). Previously, Mr. Donahue served as a Member of the Advisory Board of certain Fidelity® funds (2015-2018) and Chief Executive Officer (2006-2012), Chief Operating Officer (2003-2006), and Managing Director, Customer Marketing and Development (1999-2003) of The Depository Trust & Clearing Corporation (financial markets infrastructure). Mr. Donahue serves as a Member (2007-present) and Co-Chairman (2016-present) of the Board of Directors of United Way of New York, Member of the Board of Directors of NYC Leadership Academy (2012-present) and Member of the Board of Advisors of Ripple Labs, Inc. (financial services, 2015-present). He also served as Chairman (2010-2012) and Member of the Board of Directors (2012-2013) of Omgeo, LLC (financial services), Treasurer of United Way of New York (2012-2016), and Member of the Board of Directors of XBRL US (financial services non-profit, 2009-2012) and the International Securities Services Association (2009-2012).
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2014-2017) and a member (2010-2017) of the Board of Directors of Dave & Buster’s Entertainment, Inc. (restaurant and entertainment complexes), as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association, and as a member of the Board of Directors for The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), Earth Fare, Inc. (retail grocery, 2010-2014), and The Western Union Company (global money transfer, 2006-2011).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as Chair (2018-present) and Member (2013-present) of the Board of Governors, State University System of Florida and is a member of the Council on Foreign Relations (1994-present). He is also a member and has most recently served as Chairman of the Board of Directors of Artis-Naples (2012-present). Previously, Mr. Lautenbach served as a member and then Lead Director of the Board of Directors of Eaton Corporation (diversified industrial, 1997-2016). He was also a Partner and Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007). In addition, Mr. Lautenbach also had a 30-year career with IBM (technology company) during which time he served as Senior Vice President and a member of the Corporate Executive Committee (1968-1998).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-2018).
Cornelia M. Small (1944)
Year of Election or Appointment: 2005
Trustee
Ms. Small also serves as Trustee of other Fidelity® funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.
Garnett A. Smith (1947)
Year of Election or Appointment: 2018
Trustee
Mr. Smith also serves as Trustee of other Fidelity® funds. Prior to Mr. Smith's retirement, he served as Chairman and Chief Executive Officer of Inbrand Corp. (manufacturer of personal absorbent products, 1990-1997). He also served as President (1986-1990) of Inbrand Corp. Prior to his employment with Inbrand Corp., he was employed by a retail fabric chain and North Carolina National Bank. In addition, Mr. Smith served as a Member of the Advisory Board of certain Fidelity® funds (2012-2013) and as a board member of the Jackson Hole Land Trust (2009-2012).
David M. Thomas (1949)
Year of Election or Appointment: 2008
Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present) and as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), a Director of Fortune Brands, Inc. (consumer products, 2000-2011), and a member of the Board of Trustees of the University of Florida (2013-2018).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Advisory Board Members and Officers:
Correspondence intended for a Member of the Advisory Board (if any) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235. Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Vicki L. Fuller (1957)
Year of Election or Appointment: 2018
Member of the Advisory Board
Ms. Fuller also serves as Member of the Advisory Board of other Fidelity® funds. Ms. Fuller serves as a member of the Board of Directors, Audit Committee, and Nominating and Governance Committee of The Williams Companies, Inc. (natural gas infrastructure, 2018-present). Previously, Ms. Fuller served as the Chief Investment Officer of the New York State Common Retirement Fund (2012-2018) and held a variety of positions at AllianceBernstein L.P. (global asset management, 1985-2012), including Managing Director (2006-2012) and Senior Vice President and Senior Portfolio Manager (2001-2006).
Peter S. Lynch (1944)
Year of Election or Appointment: 2003
Member of the Advisory Board
Mr. Lynch also serves as Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of FMR (investment adviser firm) and FMR Co., Inc. (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).
Michael E. Wiley (1950)
Year of Election or Appointment: 2018
Member of the Advisory Board
Mr. Wiley also serves as Trustee or Member of the Advisory Board of other Fidelity® funds. Mr. Wiley serves as a Director of High Point Resources (exploration and production, 2005-present). Previously, Mr. Wiley served as a Director of Andeavor Corporation (independent oil refiner and marketer, 2005-2018), a Director of Andeavor Logistics LP (natural resources logistics, 2015-2018), a Director of Post Oak Bank (privately-held bank, 2004-2018), a Director of Asia Pacific Exploration Consolidated (international oil and gas exploration and production, 2008-2013), a member of the Board of Trustees of the University of Tulsa (2000-2006; 2007-2010), a Senior Energy Advisor of Katzenbach Partners, LLC (consulting, 2006-2007), an Advisory Director of Riverstone Holdings (private investment), a Director of Spinnaker Exploration Company (exploration and production, 2001-2005) and Chairman, President, and CEO of Baker Hughes, Inc. (oilfield services, 2000-2004).
Elizabeth Paige Baumann (1968)
Year of Election or Appointment: 2017
Anti-Money Laundering (AML) Officer
Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer (2012-present) and Senior Vice President (2014-present) of FMR LLC (diversified financial services company) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as AML Officer of the funds (2012-2016), and Vice President (2007-2014) and Deputy Anti-Money Laundering Officer (2007-2012) of FMR LLC.
Craig S. Brown (1977)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Brown also serves as Assistant Treasurer of other funds. Mr. Brown is an employee of Fidelity Investments (2013-present).
John J. Burke III (1964)
Year of Election or Appointment: 2018
Chief Financial Officer
Mr. Burke also serves as Chief Financial Officer of other funds. Mr. Burke serves as Head of Investment Operations for Fidelity Fund and Investment Operations (2018-present) and is an employee of Fidelity Investments (1998-present). Previously Mr. Burke served as head of Asset Management Investment Operations (2012-2018).
William C. Coffey (1969)
Year of Election or Appointment: 2018
Secretary and Chief Legal Officer (CLO)
Mr. Coffey also serves as Secretary and CLO of other funds. Mr. Coffey serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2018-present); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2018-present); and CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2018-present). He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Assistant Secretary of certain funds (2009-2018) and as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Timothy M. Cohen (1969)
Year of Election or Appointment: 2018
Vice President
Mr. Cohen also serves as Vice President of other funds. Mr. Cohen serves as Executive Vice President of Fidelity SelectCo, LLC (2019-present), Co-Head of Equity (2018-present), a Director of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present), and is an employee of Fidelity Investments. Previously, Mr. Cohen served as Head of Global Equity Research (2016-2018), Chief Investment Officer - Equity and a Director of Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2013-2015) and as a Director of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2017).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds. Mr. Davis serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present), and is an employee of Fidelity Investments (2008-present). Previously, Mr. Deberghes served as President and Treasurer of certain Fidelity® funds (2013-2018). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). Previously, Mr. Deberghes served in other fund officer roles.
Laura M. Del Prato (1964)
Year of Election or Appointment: 2018
Assistant Treasurer
Ms. Del Prato also serves as an officer of other funds. Ms. Del Prato is an employee of Fidelity Investments (2017-present). Prior to joining Fidelity Investments, Ms. Del Prato served as a Managing Director and Treasurer of the JPMorgan Mutual Funds (2014-2017). Prior to JPMorgan, Ms. Del Prato served as a partner at Cohen Fund Audit Services (accounting firm, 2012-2013) and KPMG LLP (accounting firm, 2004-2012).
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2005-present). Previously, Mr. Hogan served as Assistant Treasurer of certain Fidelity® funds (2016-2018).
Pamela R. Holding (1964)
Year of Election or Appointment: 2018
Vice President
Ms. Holding also serves as Vice President of other funds. Ms. Holding serves as Executive Vice President of Fidelity SelectCo, LLC (2019-present), Co-Head of Equity (2018-present) and is an employee of Fidelity Investments (2013-present). Previously, Ms. Holding served as Chief Investment Officer of Fidelity Institutional Asset Management (2013-2018).
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight, serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. Ms. Smith serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), is an employee of Fidelity Investments (2009-present), and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Assistant Treasurer (2013-2018) and Deputy Treasurer (2013-2016) of certain Fidelity® funds.
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
Jim Wegmann (1979)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Wegmann also serves as Assistant Treasurer of other funds. Mr. Wegmann is an employee of Fidelity Investments (2011-present).
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (February 1, 2019 to July 31, 2019).
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.
| Annualized Expense Ratio-A | Beginning Account Value February 1, 2019 | Ending Account Value July 31, 2019 | Expenses Paid During Period-B February 1, 2019 to July 31, 2019 | |
| OTC | .90% | |||
| Actual | $1,000.00 | $1,140.10 | $4.78 | |
| Hypothetical-C | $1,000.00 | $1,020.33 | $4.51 | |
| Class K | .80% | |||
| Actual | $1,000.00 | $1,140.80 | $4.25 | |
| Hypothetical-C | $1,000.00 | $1,020.83 | $4.01 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
C 5% return per year before expenses
Distributions (Unaudited)
The Board of Trustees of Fidelity OTC Portfolio voted to pay to shareholders of record at the opening of business on record date, the following distributions per share derived from capital gains realized from sales of portfolio securities:
| Pay Date | Record Date | Capital Gains | |
| Fidelity OTC Portfolio | |||
| OTC | 09/16/2019 | 09/13/2019 | $0.837 |
| Class K | 09/16/2019 | 09/13/2019 | $0.837 |
The fund hereby designates as a capital gain dividend with respect to the taxable year ended July 31, 2019, $1,944,328,946, or, if subsequently determined to be different, the net capital gain of such year.
The fund will notify shareholders in January 2020 of amounts for use in preparing 2019 income tax returns.
OTC-ANN-0919
1.536191.122
Fidelity® OTC K6 Portfolio Annual Report July 31, 2019 |
|
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of a fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a financial advisor, broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from a fund electronically, by contacting your financial intermediary. For Fidelity customers, visit Fidelity's web site or call Fidelity using the contact information listed below.
You may elect to receive all future reports in paper free of charge. If you wish to continue receiving paper copies of your shareholder reports, you may contact your financial intermediary or, if you are a Fidelity customer, visit Fidelity’s website, or call Fidelity at the applicable toll-free number listed below. Your election to receive reports in paper will apply to all funds held with the fund complex/your financial intermediary.
| Account Type | Website | Phone Number |
| Brokerage, Mutual Fund, or Annuity Contracts: | fidelity.com/mailpreferences | 1-800-343-3548 |
| Employer Provided Retirement Accounts: | netbenefits.fidelity.com/preferences (choose 'no' under Required Disclosures to continue to print) | 1-800-343-0860 |
| Advisor Sold Accounts Serviced Through Your Financial Intermediary: | Contact Your Financial Intermediary | Your Financial Intermediary's phone number |
| Advisor Sold Accounts Serviced by Fidelity: | institutional.fidelity.com | 1-877-208-0098 |
Contents
Board Approval of Investment Advisory Contracts and Management Fees |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-800-835-5092 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2019 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT. Forms N-PORT are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-PORT 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.institutional.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.
Investment Summary (Unaudited)
Top Ten Stocks as of July 31, 2019
| % of fund's net assets | |
| Microsoft Corp. | 10.1 |
| Apple, Inc. | 9.3 |
| Alphabet, Inc. Class A | 7.8 |
| Amazon.com, Inc. | 6.4 |
| Facebook, Inc. Class A | 5.9 |
| Alphabet, Inc. Class C | 2.8 |
| NVIDIA Corp. | 2.3 |
| Adobe, Inc. | 2.0 |
| Costco Wholesale Corp. | 1.5 |
| Qualcomm, Inc. | 1.5 |
| 49.6 |
Top Five Market Sectors as of July 31, 2019
| % of fund's net assets | |
| Information Technology | 42.4 |
| Communication Services | 23.0 |
| Consumer Discretionary | 16.1 |
| Health Care | 6.6 |
| Consumer Staples | 5.1 |
Asset Allocation (% of fund's net assets)
| As of July 31, 2019* | ||
| Stocks | 99.3% | |
| Net Other Assets (Liabilities) | 0.7% | |
* Foreign investments - 7.7%
Schedule of Investments July 31, 2019
Showing Percentage of Net Assets
| Common Stocks - 99.3% | |||
| Shares | Value | ||
| COMMUNICATION SERVICES - 23.0% | |||
| Entertainment - 3.0% | |||
| Activision Blizzard, Inc. | 216 | $10,528 | |
| NetEase, Inc. ADR | 19 | 4,386 | |
| Netflix, Inc. (a) | 28 | 9,044 | |
| Nintendo Co. Ltd. ADR | 48 | 2,217 | |
| Take-Two Interactive Software, Inc. (a) | 18 | 2,205 | |
| Ubisoft Entertainment SA (a) | 7 | 576 | |
| Zynga, Inc. (a) | 434 | 2,769 | |
| 31,725 | |||
| Interactive Media & Services - 18.9% | |||
| 58.com, Inc. ADR (a) | 1 | 56 | |
| Alphabet, Inc.: | |||
| Class A (a) | 67 | 81,619 | |
| Class C (a) | 24 | 29,200 | |
| ANGI Homeservices, Inc. Class A (a) | 147 | 2,036 | |
| Eventbrite, Inc. | 1 | 18 | |
| Facebook, Inc. Class A (a) | 322 | 62,542 | |
| IAC/InterActiveCorp (a) | 16 | 3,825 | |
| Match Group, Inc. | 17 | 1,280 | |
| Tencent Holdings Ltd. sponsored ADR | 231 | 10,742 | |
| Twitter, Inc. (a) | 163 | 6,897 | |
| 198,215 | |||
| Media - 1.1% | |||
| Charter Communications, Inc. Class A (a) | 30 | 11,561 | |
| TOTAL COMMUNICATION SERVICES | 241,501 | ||
| CONSUMER DISCRETIONARY - 16.1% | |||
| Diversified Consumer Services - 0.0% | |||
| Adtalem Global Education, Inc. (a) | 6 | 284 | |
| Weight Watchers International, Inc. (a) | 11 | 238 | |
| 522 | |||
| Hotels, Restaurants & Leisure - 1.8% | |||
| Domino's Pizza, Inc. | 3 | 734 | |
| Eldorado Resorts, Inc. (a) | 42 | 1,895 | |
| Marriott International, Inc. Class A | 31 | 4,311 | |
| Marriott Vacations Worldwide Corp. | 2 | 204 | |
| Planet Fitness, Inc. (a) | 95 | 7,473 | |
| Restaurant Brands International, Inc. | 4 | 295 | |
| Royal Caribbean Cruises Ltd. | 19 | 2,210 | |
| Texas Roadhouse, Inc. Class A | 7 | 387 | |
| Yum! Brands, Inc. | 10 | 1,125 | |
| 18,634 | |||
| Internet & Direct Marketing Retail - 10.7% | |||
| Amazon.com, Inc. (a) | 36 | 67,204 | |
| Ctrip.com International Ltd. ADR (a) | 83 | 3,235 | |
| eBay, Inc. | 203 | 8,362 | |
| Meituan Dianping Class B | 626 | 5,062 | |
| MercadoLibre, Inc. (a) | 17 | 10,564 | |
| The Booking Holdings, Inc. (a) | 6 | 11,320 | |
| Yahoo!, Inc. (a) | 97 | 6,834 | |
| 112,581 | |||
| Leisure Products - 0.1% | |||
| Mattel, Inc. (a) | 48 | 701 | |
| Multiline Retail - 0.9% | |||
| Dollar General Corp. | 5 | 670 | |
| Dollar Tree, Inc. (a) | 91 | 9,259 | |
| 9,929 | |||
| Specialty Retail - 2.4% | |||
| Best Buy Co., Inc. | 40 | 3,061 | |
| Burlington Stores, Inc. (a) | 16 | 2,892 | |
| Five Below, Inc. (a) | 22 | 2,584 | |
| Lowe's Companies, Inc. | 36 | 3,650 | |
| National Vision Holdings, Inc. (a) | 32 | 1,011 | |
| Ross Stores, Inc. | 63 | 6,680 | |
| Tiffany & Co., Inc. | 20 | 1,878 | |
| Ulta Beauty, Inc. (a) | 9 | 3,143 | |
| 24,899 | |||
| Textiles, Apparel & Luxury Goods - 0.2% | |||
| G-III Apparel Group Ltd. (a) | 11 | 315 | |
| PVH Corp. | 14 | 1,245 | |
| VF Corp. | 3 | 262 | |
| 1,822 | |||
| TOTAL CONSUMER DISCRETIONARY | 169,088 | ||
| CONSUMER STAPLES - 5.1% | |||
| Beverages - 2.0% | |||
| Diageo PLC | 131 | 5,463 | |
| Fever-Tree Drinks PLC | 132 | 3,750 | |
| Keurig Dr. Pepper, Inc. | 122 | 3,433 | |
| Luckin Coffee, Inc. ADR | 11 | 267 | |
| Monster Beverage Corp. (a) | 58 | 3,739 | |
| PepsiCo, Inc. | 36 | 4,601 | |
| 21,253 | |||
| Food & Staples Retailing - 2.3% | |||
| BJ's Wholesale Club Holdings, Inc. (a) | 100 | 2,356 | |
| Costco Wholesale Corp. | 58 | 15,987 | |
| Performance Food Group Co. (a) | 60 | 2,631 | |
| U.S. Foods Holding Corp. (a) | 60 | 2,122 | |
| Walmart, Inc. | 15 | 1,656 | |
| 24,752 | |||
| Food Products - 0.4% | |||
| Darling International, Inc. (a) | 23 | 468 | |
| Mondelez International, Inc. | 47 | 2,514 | |
| The Kraft Heinz Co. | 33 | 1,056 | |
| 4,038 | |||
| Personal Products - 0.4% | |||
| Coty, Inc. Class A | 357 | 3,895 | |
| TOTAL CONSUMER STAPLES | 53,938 | ||
| ENERGY - 0.1% | |||
| Oil, Gas & Consumable Fuels - 0.1% | |||
| Centennial Resource Development, Inc. Class A (a) | 56 | 333 | |
| Delek U.S. Holdings, Inc. | 4 | 172 | |
| EOG Resources, Inc. | 1 | 86 | |
| 591 | |||
| FINANCIALS - 3.0% | |||
| Banks - 0.6% | |||
| Bank of America Corp. | 35 | 1,074 | |
| Huntington Bancshares, Inc. | 282 | 4,019 | |
| PacWest Bancorp | 30 | 1,159 | |
| 6,252 | |||
| Capital Markets - 2.0% | |||
| Cboe Global Markets, Inc. | 38 | 4,154 | |
| CME Group, Inc. | 31 | 6,027 | |
| E*TRADE Financial Corp. | 29 | 1,415 | |
| Northern Trust Corp. | 43 | 4,214 | |
| TD Ameritrade Holding Corp. | 85 | 4,344 | |
| Virtu Financial, Inc. Class A | 21 | 455 | |
| 20,609 | |||
| Consumer Finance - 0.4% | |||
| Capital One Financial Corp. | 48 | 4,436 | |
| TOTAL FINANCIALS | 31,297 | ||
| HEALTH CARE - 6.6% | |||
| Biotechnology - 4.0% | |||
| Acceleron Pharma, Inc. (a) | 18 | 786 | |
| Alexion Pharmaceuticals, Inc. (a) | 80 | 9,063 | |
| Allakos, Inc. (a) | 3 | 104 | |
| Amgen, Inc. | 62 | 11,568 | |
| Audentes Therapeutics, Inc. (a) | 3 | 117 | |
| Blueprint Medicines Corp. (a) | 8 | 801 | |
| Cellectis SA sponsored ADR (a) | 22 | 320 | |
| Chimerix, Inc. (a) | 3 | 11 | |
| DBV Technologies SA sponsored ADR (a) | 59 | 559 | |
| Deciphera Pharmaceuticals, Inc. (a) | 3 | 66 | |
| FibroGen, Inc. (a) | 11 | 520 | |
| GenSight Biologics SA (a)(b) | 13 | 21 | |
| Heron Therapeutics, Inc. (a) | 102 | 1,779 | |
| Neurocrine Biosciences, Inc. (a) | 42 | 4,048 | |
| Regeneron Pharmaceuticals, Inc. (a) | 2 | 610 | |
| Sarepta Therapeutics, Inc. (a) | 16 | 2,382 | |
| The Medicines Company (a) | 13 | 466 | |
| Trevena, Inc. (a) | 28 | 27 | |
| uniQure B.V. (a) | 30 | 1,760 | |
| Vertex Pharmaceuticals, Inc. (a) | 33 | 5,498 | |
| Xencor, Inc. (a) | 39 | 1,717 | |
| 42,223 | |||
| Health Care Equipment & Supplies - 0.9% | |||
| Boston Scientific Corp. (a) | 75 | 3,185 | |
| DexCom, Inc. (a) | 7 | 1,098 | |
| Hoya Corp. ADR | 7 | 536 | |
| Intuitive Surgical, Inc. (a) | 8 | 4,156 | |
| ViewRay, Inc. (a) | 59 | 529 | |
| 9,504 | |||
| Health Care Providers & Services - 0.8% | |||
| Elanco Animal Health, Inc. | 6 | 198 | |
| Humana, Inc. | 15 | 4,451 | |
| Neuronetics, Inc. (a) | 2 | 24 | |
| UnitedHealth Group, Inc. | 17 | 4,233 | |
| 8,906 | |||
| Life Sciences Tools & Services - 0.2% | |||
| Thermo Fisher Scientific, Inc. | 6 | 1,666 | |
| Pharmaceuticals - 0.7% | |||
| AstraZeneca PLC: | |||
| (United Kingdom) | 7 | 605 | |
| sponsored ADR | 70 | 3,039 | |
| Collegium Pharmaceutical, Inc. (a) | 36 | 395 | |
| Jazz Pharmaceuticals PLC (a) | 8 | 1,115 | |
| Nektar Therapeutics (a) | 35 | 996 | |
| TherapeuticsMD, Inc. (a) | 22 | 47 | |
| Zogenix, Inc. (a) | 16 | 771 | |
| 6,968 | |||
| TOTAL HEALTH CARE | 69,267 | ||
| INDUSTRIALS - 2.3% | |||
| Airlines - 0.4% | |||
| Spirit Airlines, Inc. (a) | 40 | 1,697 | |
| United Continental Holdings, Inc. (a) | 24 | 2,206 | |
| 3,903 | |||
| Commercial Services & Supplies - 0.6% | |||
| Copart, Inc. (a) | 71 | 5,505 | |
| Evoqua Water Technologies Corp. (a) | 15 | 213 | |
| Tomra Systems ASA | 20 | 591 | |
| 6,309 | |||
| Machinery - 0.0% | |||
| Deere & Co. | 3 | 497 | |
| Professional Services - 0.0% | |||
| Recruit Holdings Co. Ltd. | 4 | 135 | |
| Road & Rail - 1.2% | |||
| CSX Corp. | 45 | 3,168 | |
| J.B. Hunt Transport Services, Inc. | 6 | 614 | |
| Lyft, Inc. | 64 | 3,896 | |
| Uber Technologies, Inc. | 120 | 5,057 | |
| 12,735 | |||
| Trading Companies & Distributors - 0.1% | |||
| HD Supply Holdings, Inc. (a) | 15 | 608 | |
| TOTAL INDUSTRIALS | 24,187 | ||
| INFORMATION TECHNOLOGY - 42.4% | |||
| Communications Equipment - 1.7% | |||
| Acacia Communications, Inc. (a) | 8 | 537 | |
| Arista Networks, Inc. (a) | 10 | 2,735 | |
| Cisco Systems, Inc. | 236 | 13,074 | |
| Tencent Music Entertainment Group ADR (a) | 103 | 1,470 | |
| 17,816 | |||
| IT Services - 3.6% | |||
| Akamai Technologies, Inc. (a) | 36 | 3,173 | |
| Fastly, Inc. Class A | 2 | 43 | |
| Fidelity National Information Services, Inc. | 10 | 1,333 | |
| FleetCor Technologies, Inc. (a) | 1 | 284 | |
| GoDaddy, Inc. (a) | 70 | 5,137 | |
| MasterCard, Inc. Class A | 27 | 7,351 | |
| Netcompany Group A/S (a)(b) | 4 | 157 | |
| PayPal Holdings, Inc. (a) | 112 | 12,365 | |
| Visa, Inc. Class A | 23 | 4,094 | |
| Wix.com Ltd. (a) | 24 | 3,564 | |
| 37,501 | |||
| Semiconductors & Semiconductor Equipment - 10.9% | |||
| Analog Devices, Inc. | 50 | 5,873 | |
| Applied Materials, Inc. | 177 | 8,738 | |
| ASML Holding NV | 29 | 6,461 | |
| Broadcom, Inc. | 35 | 10,150 | |
| Intel Corp. | 66 | 3,336 | |
| KLA-Tencor Corp. | 5 | 682 | |
| Lam Research Corp. | 48 | 10,013 | |
| Microchip Technology, Inc. | 8 | 755 | |
| Micron Technology, Inc. (a) | 144 | 6,464 | |
| NVIDIA Corp. | 143 | 24,127 | |
| NXP Semiconductors NV | 95 | 9,822 | |
| Qorvo, Inc. (a) | 21 | 1,539 | |
| Qualcomm, Inc. | 211 | 15,437 | |
| Skyworks Solutions, Inc. | 67 | 5,714 | |
| Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR | 139 | 5,926 | |
| 115,037 | |||
| Software - 16.3% | |||
| 2U, Inc. (a) | 15 | 192 | |
| Adobe, Inc. (a) | 69 | 20,621 | |
| Autodesk, Inc. (a) | 49 | 7,652 | |
| Black Knight, Inc. (a) | 79 | 5,002 | |
| Carbon Black, Inc. (a) | 2 | 37 | |
| Cardlytics, Inc. (a) | 15 | 426 | |
| Dropbox, Inc. Class A (a) | 12 | 283 | |
| Everbridge, Inc. (a) | 13 | 1,330 | |
| HIVE Blockchain Technologies Ltd. (a) | 159 | 40 | |
| HubSpot, Inc. (a) | 7 | 1,251 | |
| Intuit, Inc. | 27 | 7,487 | |
| Microsoft Corp. | 779 | 106,156 | |
| Parametric Technology Corp. (a) | 3 | 203 | |
| Paylocity Holding Corp. (a) | 10 | 1,021 | |
| Pivotal Software, Inc. (a) | 148 | 1,403 | |
| Pluralsight, Inc. (a) | 12 | 368 | |
| Proofpoint, Inc. (a) | 7 | 883 | |
| Salesforce.com, Inc. (a) | 85 | 13,133 | |
| ServiceNow, Inc. (a) | 1 | 277 | |
| Talend SA ADR (a) | 67 | 2,198 | |
| Workday, Inc. Class A (a) | 8 | 1,600 | |
| 171,563 | |||
| Technology Hardware, Storage & Peripherals - 9.9% | |||
| Apple, Inc. | 459 | 97,785 | |
| Samsung Electronics Co. Ltd. | 103 | 3,885 | |
| Western Digital Corp. | 41 | 2,209 | |
| 103,879 | |||
| TOTAL INFORMATION TECHNOLOGY | 445,796 | ||
| MATERIALS - 0.1% | |||
| Chemicals - 0.1% | |||
| FMC Corp. | 3 | 259 | |
| LG Chemical Ltd. | 2 | 563 | |
| 822 | |||
| Metals & Mining - 0.0% | |||
| Livent Corp. | 3 | 19 | |
| TOTAL MATERIALS | 841 | ||
| REAL ESTATE - 0.6% | |||
| Equity Real Estate Investment Trusts (REITs) - 0.6% | |||
| American Tower Corp. | 20 | 4,232 | |
| Crown Castle International Corp. | 9 | 1,199 | |
| Equinix, Inc. | 2 | 1,004 | |
| 6,435 | |||
| TOTAL COMMON STOCKS | |||
| (Cost $995,029) | 1,042,941 | ||
| TOTAL INVESTMENT IN SECURITIES - 99.3% | |||
| (Cost $995,029) | 1,042,941 | ||
| NET OTHER ASSETS (LIABILITIES) - 0.7% | 7,419 | ||
| NET ASSETS - 100% | $1,050,360 |
Legend
(a) Non-income producing
(b) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $178 or 0.0% of net assets.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
| Fund | Income earned |
| Fidelity Cash Central Fund | $264 |
| Total | $264 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable.
Investment Valuation
The following is a summary of the inputs used, as of July 31, 2019, 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 below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| Valuation Inputs at Reporting Date: | ||||
| Description | Total | Level 1 | Level 2 | Level 3 |
| Investments in Securities: | ||||
| Equities: | ||||
| Communication Services | $241,501 | $240,925 | $576 | $-- |
| Consumer Discretionary | 169,088 | 164,026 | 5,062 | -- |
| Consumer Staples | 53,938 | 48,475 | 5,463 | -- |
| Energy | 591 | 591 | -- | -- |
| Financials | 31,297 | 31,297 | -- | -- |
| Health Care | 69,267 | 68,662 | 605 | -- |
| Industrials | 24,187 | 24,052 | 135 | -- |
| Information Technology | 445,796 | 441,911 | 3,885 | -- |
| Materials | 841 | 278 | 563 | -- |
| Real Estate | 6,435 | 6,435 | -- | -- |
| Total Investments in Securities: | $1,042,941 | $1,026,652 | $16,289 | $-- |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
| July 31, 2019 | ||
| Assets | ||
| Investment in securities, at value — See accompanying schedule: Unaffiliated issuers (cost $995,029) | $1,042,941 | |
| Cash | 6,354 | |
| Receivable for investments sold | 1,448 | |
| Dividends receivable | 57 | |
| Total assets | 1,050,800 | |
| Liabilities | ||
| Accrued management fee | $440 | |
| Total liabilities | 440 | |
| Net Assets | $1,050,360 | |
| Net Assets consist of: | ||
| Paid in capital | $1,000,000 | |
| Total distributable earnings (loss) | 50,360 | |
| Net Assets, for 100,000 shares outstanding | $1,050,360 | |
| Net Asset Value, offering price and redemption price per share ($1,050,360 ÷ 100,000 shares) | $10.50 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| For the period June 13, 2019 (commencement of operations) to July 31, 2019 | ||
| Investment Income | ||
| Dividends | $536 | |
| Income from Fidelity Central Funds | 264 | |
| Total income | 800 | |
| Expenses | ||
| Management fee | $693 | |
| Total expenses | 693 | |
| Net investment income (loss) | 107 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | 2,306 | |
| Foreign currency transactions | 36 | |
| Total net realized gain (loss) | 2,342 | |
| Change in net unrealized appreciation (depreciation) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | 47,912 | |
| Assets and liabilities in foreign currencies | (1) | |
| Total change in net unrealized appreciation (depreciation) | 47,911 | |
| Net gain (loss) | 50,253 | |
| Net increase (decrease) in net assets resulting from operations | $50,360 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| For the period June 13, 2019 (commencement of operations) to July 31, 2019 | |
| Increase (Decrease) in Net Assets | |
| Operations | |
| Net investment income (loss) | $107 |
| Net realized gain (loss) | 2,342 |
| Change in net unrealized appreciation (depreciation) | 47,911 |
| Net increase (decrease) in net assets resulting from operations | 50,360 |
| Share transactions | |
| Proceeds from sales of shares | 1,000,000 |
| Net increase (decrease) in net assets resulting from share transactions | 1,000,000 |
| Total increase (decrease) in net assets | 1,050,360 |
| Net Assets | |
| Beginning of period | – |
| End of period | $1,050,360 |
| Other Information | |
| Shares | |
| Sold | 100,000 |
| Net increase (decrease) | 100,000 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity OTC K6 Portfolio
| Year ended July 31, | 2019 A |
| Selected Per–Share Data | |
| Net asset value, beginning of period | $10.00 |
| Income from Investment Operations | |
| Net investment income (loss)B | –C |
| Net realized and unrealized gain (loss) | .50 |
| Total from investment operations | .50 |
| Net asset value, end of period | $10.50 |
| Total ReturnD | 5.00% |
| Ratios to Average Net AssetsE,F | |
| Expenses before reductions | .50%G |
| Expenses net of fee waivers, if any | .50%G |
| Expenses net of all reductions | .50%G |
| Net investment income (loss) | .08%G |
| Supplemental Data | |
| Net assets, end of period (000 omitted) | $1,050 |
| Portfolio turnover rateH | 5%I |
A For the period June 13, 2019 (commencement of operations) to July 31, 2019.
B Calculated based on average shares outstanding during the period.
C Amount represents less than $.005 per share.
D Total returns for periods of less than one year are not annualized.
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 Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
G Annualized
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
I Amount not annualized.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended July 31, 2019
1. Organization.
Fidelity OTC K6 Portfolio (the Fund) is a fund of Fidelity Securities Fund (the Trust) and is authorized to issue an unlimited number of shares. Share transactions on the Statement of Changes in Net Assets may contain exchanges between affiliated funds. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. Shares generally are available only to employer-sponsored retirement plans that are recordkept by Fidelity, or to certain employer-sponsored retirement plans that are not recordkept by Fidelity.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date ranged from less than .005% to .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investments Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of July 31, 2019 is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. 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 U.S. Federal income taxes is required. As of July 31, 2019, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions and losses deferred due to wash sales.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
| Gross unrealized appreciation | $58,076 |
| Gross unrealized depreciation | (10,237) |
| Net unrealized appreciation (depreciation) | $47,839 |
| Tax Cost | $995,102 |
The tax-based components of distributable earnings as of period end were as follows:
| Undistributed ordinary income | $2,522 |
| Net unrealized appreciation (depreciation) on securities and other investments | $47,838 |
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $1,043,809 and $51,087, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee that is based on an annual rate of .50% of average net assets. Under the management contract, the investment adviser or an affiliate pays all other expenses of the Fund, excluding fees and expenses of the independent Trustees, and certain miscellaneous expenses such as proxy and shareholder meeting expenses.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $3 for the period.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
6. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
At the end of the period, the investment adviser or its affiliates were the owners of record of 100% of the total outstanding shares of the Fund.
Affiliated Exchanges In-Kind. Effective after the close of business on July 31, 2019, the Fund received investments and cash valued at $170,107,551 in exchange for 16,726,406 shares of the Fund.
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Securities Fund and Shareholders of Fidelity OTC K6 Portfolio:
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statement of assets and liabilities of Fidelity OTC K6 Fund (the "Fund"), a fund of Fidelity Securities Fund, including the schedule of investments, as of July 31, 2019, the related statement of operations, the statement of changes in net assets and the financial highlights for the period from June 13, 2019 (commencement of operations) to July 31, 2019, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of July 31, 2019, and the results of its operations, the changes in its net assets and the financial highlights for the period from June 13, 2019 (commencement of operations) to July 31, 2019, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund's financial statements and financial highlights based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audit included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of July 31, 2019, by correspondence with the custodians and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audit provides a reasonable basis for our opinion.
/s/ Deloitte & Touche LLP
Boston, Massachusetts
September 16, 2019
We have served as the auditor of one or more of the Fidelity investment companies since 1999.
Trustees and Officers
The Trustees, Members of the Advisory Board (if any), and officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Except for Jonathan Chiel, each of the Trustees oversees 298 funds. Mr. Chiel oversees 170 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the fund is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund’s Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-835-5092 .
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Board Structure and Oversight Function. James C. Curvey is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Ned C. Lautenbach serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and other equity funds. The asset allocation funds may invest in Fidelity® funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Jonathan Chiel (1957)
Year of Election or Appointment: 2016
Trustee
Mr. Chiel also serves as Trustee of other Fidelity® funds. Mr. Chiel is Executive Vice President and General Counsel for FMR LLC (diversified financial services company, 2012-present). Previously, Mr. Chiel served as general counsel (2004-2012) and senior vice president and deputy general counsel (2000-2004) for John Hancock Financial Services; a partner with Choate, Hall & Stewart (1996-2000) (law firm); and an Assistant United States Attorney for the United States Attorney’s Office of the District of Massachusetts (1986-95), including Chief of the Criminal Division (1993-1995). Mr. Chiel is a director on the boards of the Boston Bar Foundation and the Maimonides School.
James C. Curvey (1935)
Year of Election or Appointment: 2007
Trustee
Chairman of the Board of Trustees
Mr. Curvey also serves as Trustee of other Fidelity® funds. Mr. Curvey is Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey is an Overseer Emeritus for the Boston Symphony Orchestra, a Director of Artis-Naples, and a Trustee of Brewster Academy in Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-2018), Director of Fidelity Investments Money Management, Inc. (investment adviser firm, 2009-2014) and a Director of FMR and FMR Co., Inc. (investment adviser firms, 2007-2014).
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), as a member of the Independent Directors Council (IDC) Governing Council (2010-2015), and as a member of the Board of Directors for The Brookville Center for Children’s Services, Inc. (2009-2017). Mr. Dirks is a member of the Finance Committee (2016-present) and Board of Directors (2017-present) and is Treasurer (2018-present) of the Asolo Repertory Theatre.
Donald F. Donahue (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Donahue also serves as a Trustee of other Fidelity® funds. Mr. Donahue is President and Chief Executive Officer of Miranda Partners, LLC (risk consulting for the financial services industry, 2012-present). Previously, Mr. Donahue served as a Member of the Advisory Board of certain Fidelity® funds (2015-2018) and Chief Executive Officer (2006-2012), Chief Operating Officer (2003-2006), and Managing Director, Customer Marketing and Development (1999-2003) of The Depository Trust & Clearing Corporation (financial markets infrastructure). Mr. Donahue serves as a Member (2007-present) and Co-Chairman (2016-present) of the Board of Directors of United Way of New York, Member of the Board of Directors of NYC Leadership Academy (2012-present) and Member of the Board of Advisors of Ripple Labs, Inc. (financial services, 2015-present). He also served as Chairman (2010-2012) and Member of the Board of Directors (2012-2013) of Omgeo, LLC (financial services), Treasurer of United Way of New York (2012-2016), and Member of the Board of Directors of XBRL US (financial services non-profit, 2009-2012) and the International Securities Services Association (2009-2012).
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2014-2017) and a member (2010-2017) of the Board of Directors of Dave & Buster’s Entertainment, Inc. (restaurant and entertainment complexes), as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association, and as a member of the Board of Directors for The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), Earth Fare, Inc. (retail grocery, 2010-2014), and The Western Union Company (global money transfer, 2006-2011).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as Chair (2018-present) and Member (2013-present) of the Board of Governors, State University System of Florida and is a member of the Council on Foreign Relations (1994-present). He is also a member and has most recently served as Chairman of the Board of Directors of Artis-Naples (2012-present). Previously, Mr. Lautenbach served as a member and then Lead Director of the Board of Directors of Eaton Corporation (diversified industrial, 1997-2016). He was also a Partner and Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007). In addition, Mr. Lautenbach also had a 30-year career with IBM (technology company) during which time he served as Senior Vice President and a member of the Corporate Executive Committee (1968-1998).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-2018).
Cornelia M. Small (1944)
Year of Election or Appointment: 2005
Trustee
Ms. Small also serves as Trustee of other Fidelity® funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.
Garnett A. Smith (1947)
Year of Election or Appointment: 2018
Trustee
Mr. Smith also serves as Trustee of other Fidelity® funds. Prior to Mr. Smith's retirement, he served as Chairman and Chief Executive Officer of Inbrand Corp. (manufacturer of personal absorbent products, 1990-1997). He also served as President (1986-1990) of Inbrand Corp. Prior to his employment with Inbrand Corp., he was employed by a retail fabric chain and North Carolina National Bank. In addition, Mr. Smith served as a Member of the Advisory Board of certain Fidelity® funds (2012-2013) and as a board member of the Jackson Hole Land Trust (2009-2012).
David M. Thomas (1949)
Year of Election or Appointment: 2008
Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present) and as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), a Director of Fortune Brands, Inc. (consumer products, 2000-2011), and a member of the Board of Trustees of the University of Florida (2013-2018).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Advisory Board Members and Officers:
Correspondence intended for a Member of the Advisory Board (if any) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235. Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Vicki L. Fuller (1957)
Year of Election or Appointment: 2018
Member of the Advisory Board
Ms. Fuller also serves as Member of the Advisory Board of other Fidelity® funds. Ms. Fuller serves as a member of the Board of Directors, Audit Committee, and Nominating and Governance Committee of The Williams Companies, Inc. (natural gas infrastructure, 2018-present). Previously, Ms. Fuller served as the Chief Investment Officer of the New York State Common Retirement Fund (2012-2018) and held a variety of positions at AllianceBernstein L.P. (global asset management, 1985-2012), including Managing Director (2006-2012) and Senior Vice President and Senior Portfolio Manager (2001-2006).
Peter S. Lynch (1944)
Year of Election or Appointment: 2003
Member of the Advisory Board
Mr. Lynch also serves as Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of FMR (investment adviser firm) and FMR Co., Inc. (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).
Michael E. Wiley (1950)
Year of Election or Appointment: 2018
Member of the Advisory Board
Mr. Wiley also serves as Trustee or Member of the Advisory Board of other Fidelity® funds. Mr. Wiley serves as a Director of High Point Resources (exploration and production, 2005-present). Previously, Mr. Wiley served as a Director of Andeavor Corporation (independent oil refiner and marketer, 2005-2018), a Director of Andeavor Logistics LP (natural resources logistics, 2015-2018), a Director of Post Oak Bank (privately-held bank, 2004-2018), a Director of Asia Pacific Exploration Consolidated (international oil and gas exploration and production, 2008-2013), a member of the Board of Trustees of the University of Tulsa (2000-2006; 2007-2010), a Senior Energy Advisor of Katzenbach Partners, LLC (consulting, 2006-2007), an Advisory Director of Riverstone Holdings (private investment), a Director of Spinnaker Exploration Company (exploration and production, 2001-2005) and Chairman, President, and CEO of Baker Hughes, Inc. (oilfield services, 2000-2004).
Elizabeth Paige Baumann (1968)
Year of Election or Appointment: 2017
Anti-Money Laundering (AML) Officer
Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer (2012-present) and Senior Vice President (2014-present) of FMR LLC (diversified financial services company) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as AML Officer of the funds (2012-2016), and Vice President (2007-2014) and Deputy Anti-Money Laundering Officer (2007-2012) of FMR LLC.
Craig S. Brown (1977)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Brown also serves as Assistant Treasurer of other funds. Mr. Brown is an employee of Fidelity Investments (2013-present).
John J. Burke III (1964)
Year of Election or Appointment: 2018
Chief Financial Officer
Mr. Burke also serves as Chief Financial Officer of other funds. Mr. Burke serves as Head of Investment Operations for Fidelity Fund and Investment Operations (2018-present) and is an employee of Fidelity Investments (1998-present). Previously Mr. Burke served as head of Asset Management Investment Operations (2012-2018).
William C. Coffey (1969)
Year of Election or Appointment: 2018
Secretary and Chief Legal Officer (CLO)
Mr. Coffey also serves as Secretary and CLO of other funds. Mr. Coffey serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2018-present); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2018-present); and CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2018-present). He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Assistant Secretary of certain funds (2009-2018) and as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Timothy M. Cohen (1969)
Year of Election or Appointment: 2018
Vice President
Mr. Cohen also serves as Vice President of other funds. Mr. Cohen serves as Executive Vice President of Fidelity SelectCo, LLC (2019-present), Co-Head of Equity (2018-present), a Director of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present), and is an employee of Fidelity Investments. Previously, Mr. Cohen served as Head of Global Equity Research (2016-2018), Chief Investment Officer - Equity and a Director of Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2013-2015) and as a Director of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2017).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds. Mr. Davis serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present), and is an employee of Fidelity Investments (2008-present). Previously, Mr. Deberghes served as President and Treasurer of certain Fidelity® funds (2013-2018). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). Previously, Mr. Deberghes served in other fund officer roles.
Laura M. Del Prato (1964)
Year of Election or Appointment: 2018
Assistant Treasurer
Ms. Del Prato also serves as an officer of other funds. Ms. Del Prato is an employee of Fidelity Investments (2017-present). Prior to joining Fidelity Investments, Ms. Del Prato served as a Managing Director and Treasurer of the JPMorgan Mutual Funds (2014-2017). Prior to JPMorgan, Ms. Del Prato served as a partner at Cohen Fund Audit Services (accounting firm, 2012-2013) and KPMG LLP (accounting firm, 2004-2012).
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2005-present). Previously, Mr. Hogan served as Assistant Treasurer of certain Fidelity® funds (2016-2018).
Pamela R. Holding (1964)
Year of Election or Appointment: 2018
Vice President
Ms. Holding also serves as Vice President of other funds. Ms. Holding serves as Executive Vice President of Fidelity SelectCo, LLC (2019-present), Co-Head of Equity (2018-present) and is an employee of Fidelity Investments (2013-present). Previously, Ms. Holding served as Chief Investment Officer of Fidelity Institutional Asset Management (2013-2018).
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight, serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. Ms. Smith serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), is an employee of Fidelity Investments (2009-present), and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Assistant Treasurer (2013-2018) and Deputy Treasurer (2013-2016) of certain Fidelity® funds.
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
Jim Wegmann (1979)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Wegmann also serves as Assistant Treasurer of other funds. Mr. Wegmann is an employee of Fidelity Investments (2011-present).
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The actual expense Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (June 13, 2019 to July 31, 2019). The hypothetical expense Example is based on an investment of $1,000 invested for the one-half year period (January 31, 2019 to July 31, 2019).
Actual Expenses
The first line of the accompanying table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. 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.
| Annualized Expense Ratio-A | Beginning Account Value | Ending Account Value July 31, 2019 | Expenses Paid During Period | |
| Actual | .50% | $1,000.00 | $1,050.00 | $.69-B |
| Hypothetical-C | $1,000.00 | $1,022.32 | $2.51-D |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Actual expenses are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 49/365 (to reflect the period June 13, 2019 to July 31, 2019).
C 5% return per year before expenses
D Hypothetical expenses are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
Distributions (Unaudited)
The Board of Trustees of Fidelity OTC K6 Portfolio voted to pay on September 16, 2019, to shareholders of record at the opening of business on September 13, 2019, a distribution of $0.002 per share derived from capital gains realized from sales of portfolio.
The fund will notify shareholders in January 2020 of amounts for use in preparing 2019 income tax returns.
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity OTC K6 Portfolio
On March 6, 2019, the Board of Trustees, including the Independent Trustees (together, the Board), voted to approve the management contract with Fidelity Management & Research Company (FMR) and the sub-advisory agreements with affiliates of FMR (together, the Advisory Contracts) for the fund. FMR and the sub-advisers are collectively referred to herein as the Investment Advisers. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, considered a broad range of information.
Nature, Extent, and Quality of Services Provided. The Board considered Fidelity's staffing as it relates to the fund, including the backgrounds of investment personnel of Fidelity, and also considered the fund's investment objective, strategies, and related investment philosophy. The Board considered the structure of the investment personnel compensation program and whether this structure provides appropriate incentives to act in the best interests of the fund.Resources Dedicated to Investment Management and Support Services. The Board and the Fund Oversight and Research Committees reviewed the general qualifications and capabilities of Fidelity's investment staff, including its size, education, experience, and resources, as well as Fidelity's approach to recruiting, training, managing, and compensating investment personnel. The Board noted that Fidelity has continued to increase the resources devoted to non-U.S. offices, including expansion of Fidelity's global investment organization. The Board also noted that Fidelity's analysts have extensive resources, tools and capabilities that allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and guarantors. Further, the Board considered that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered Fidelity's trading, risk management, compliance, and technology and operations capabilities and resources, which are integral parts of the investment management process.Shareholder and Administrative Services. The Board considered the nature, extent, quality, and cost of advisory, administrative, and shareholder services to be performed by the Investment Advisers and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for the fund. The Board also considered the nature and extent of the supervision of third party service providers, principally custodians, subcustodians, and pricing vendors.The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value and convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through telephone representatives and over the Internet, investor education materials and asset allocation tools, and the expanded availability of Fidelity Investor Centers.Investment Performance. The fund is a new fund and therefore had no historical performance for the Board to review at the time it approved the fund's Advisory Contracts. The Board considered the Investment Advisers' strength in fundamental, research-driven security selection, which the Board is familiar with through its supervision of other Fidelity funds.Based on its review, the Board concluded that the nature, extent, and quality of services to be provided to the fund under the Advisory Contracts should benefit the shareholders of the fund.Competitiveness of Management Fee and Total Expense Ratio ..In reviewing the Advisory Contracts, the Board considered the fund's proposed management fee rate out of which FMR will pay all operating expenses, with certain limited exceptions, and the projected total expense ratio of the fund. The Board noted that the fund's proposed management fee rate is lower than the median fee rate of funds with similar Lipper investment objective categories and comparable investment mandates, regardless of whether their management fee structures are comparable. The Board also considered that the projected total expense ratio of the fund is below the median of those funds and classes used by the Board for management fee comparisons that have a similar sales load structure.Based on its review, the Board concluded that the fund's management fee and projected total expense ratio were reasonable in light of the services that the fund and its shareholders will receive and the other factors considered.Costs of the Services and Profitability. The fund is a new fund and therefore no revenue, cost, or profitability data was available for the Board to review in respect of the fund at the time it approved the Advisory Contracts. In connection with its future renewal of the fund's Advisory Contracts, the Board will consider the revenues earned and the expenses incurred by Fidelity in conducting the business of developing, marketing, distributing, managing, administering and servicing the fund and servicing the fund's shareholders.Economies of Scale. The Board will consider economies of scale when there is operating experience to permit assessment thereof. It noted that, notwithstanding the entrepreneurial risk associated with a new fund, the management fee was at a level normally associated, by comparison with competitors, with very high fund net assets, and Fidelity asserted to the Board that the level of the fee anticipated economies of scale at lower asset levels even before, if ever, economies of scale are achieved. The Board also noted that the fund and its shareholders would have access to the very considerable number and variety of services available through Fidelity and its affiliates.
OTC-K6-ANN-0919
1.9893897.100
Fidelity® Real Estate Income Fund Annual Report July 31, 2019 Includes Fidelity and Fidelity Advisor share classes |
|
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of a fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a financial advisor, broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from a fund electronically, by contacting your financial intermediary. For Fidelity customers, visit Fidelity's web site or call Fidelity using the contact information listed below.
You may elect to receive all future reports in paper free of charge. If you wish to continue receiving paper copies of your shareholder reports, you may contact your financial intermediary or, if you are a Fidelity customer, visit Fidelity’s website, or call Fidelity at the applicable toll-free number listed below. Your election to receive reports in paper will apply to all funds held with the fund complex/your financial intermediary.
| Account Type | Website | Phone Number |
| Brokerage, Mutual Fund, or Annuity Contracts: | fidelity.com/mailpreferences | 1-800-343-3548 |
| Employer Provided Retirement Accounts: | netbenefits.fidelity.com/preferences (choose 'no' under Required Disclosures to continue to print) | 1-800-343-0860 |
| Advisor Sold Accounts Serviced Through Your Financial Intermediary: | Contact Your Financial Intermediary | Your Financial Intermediary's phone number |
| Advisor Sold Accounts Serviced by Fidelity: | institutional.fidelity.com | 1-877-208-0098 |
Contents
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-800-544-8544 if you’re an individual investing directly with Fidelity, call 1-800-835-5092 if you’re a plan sponsor or participant with Fidelity as your recordkeeper or call 1-877-208-0098 on institutional accounts or if you’re an advisor or invest through one 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. © 2019 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT. Forms N-PORT are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-PORT 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.institutional.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.
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
| For the periods ended July 31, 2019 | Past 1 year | Past 5 years | Past 10 years |
| Class A (incl. 4.00% sales charge) | 5.75% | 5.74% | 9.85% |
| Class M (incl. 4.00% sales charge) | 5.72% | 5.71% | 9.82% |
| Class C (incl. contingent deferred sales charge) | 8.34% | 5.81% | 9.53% |
| Fidelity® Real Estate Income Fund | 10.47% | 6.87% | 10.54% |
| Class I | 10.43% | 6.89% | 10.57% |
| Class Z | 10.55% | 6.91% | 10.58% |
Class A shares bear a 0.25% 12b-1 fee. The initial offering of Class A shares took place on April 14, 2010. Returns prior to April 14, 2010, are those of Fidelity® Real Estate Income Fund, the original class of the fund, which has no 12b-1 fee. Had Class A's 12b-1 fee been reflected, returns prior to April 14, 2010, would have been lower.
Class M shares bear a 0.25% 12b-1 fee. The initial offering of Class M shares took place on April 14, 2010. Returns prior to April 14, 2010, are those of Fidelity® Real Estate Income Fund, the original class of the fund, which has no 12b-1 fee. Had Class M's 12b-1 fee been reflected, returns prior to April 14, 2010, would have been lower.
Class C shares bear a 1.00% 12b-1 fee. The initial offering of Class C shares took place on April 14, 2010. Returns prior to April 14, 2010, are those of Fidelity® Real Estate Income Fund, the original class of the fund, which has no 12b-1 fee. Had Class C's 12b-1 fee been reflected, returns prior to April 14, 2010, would have been lower.
Class C shares' contingent deferred sales charges included in the past one year, past five years and past ten years total return figures are 1%, 0% and 0%, respectively.
The initial offering of Class I shares took place on April 14, 2010. Returns prior to April 14, 2010 are those of Fidelity® Real Estate Income Fund, the original class of the fund.
The initial offering of Class Z shares took place on October 2, 2018. Returns between April 14, 2010 and October 2, 2018, are those of Class I. Returns prior to April 14, 2010 are those of Fidelity® Real Estate Income Fund, the original class of the fund.
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity® Real Estate Income Fund, a class of the fund, on July 31, 2009.
The chart shows how the value of your investment would have changed, and also shows how the S&P 500® Index performed over the same period.
See previous page for additional information regarding the performance of Fidelity® Real Estate Income Fund.
| Period Ending Values | ||
| $27,230 | Fidelity® Real Estate Income Fund | |
| $37,171 | S&P 500® Index | |
Management's Discussion of Fund Performance
Market Recap: Investors in real estate securities experienced significant market volatility for the 12-month period ending July 31, 2019. In the fourth quarter of 2018, and especially in December, real estate investment trust (REIT) common stocks fell sharply before regaining their lost ground and more in January 2019. REIT stocks continued their strong performance in the period's second half, as falling interest rates generally made these higher-dividend securities more attractive to yield-seeking investors. For the full period, REIT common stocks, as measured by the FTSE® NAREIT® All REITs Index, gained 13.55%. Health care, industrial and residential REITs were particularly strong performers, while retail-property owning REITs continued to struggle given retailers' ongoing business challenges. Meanwhile, real estate preferred stocks, as measured by the MSCI REIT Preferred Index, gained 7.04%. Real estate bonds, captured by the ICE BofAML® US Real Estate Index – a market-capitalization-weighted measure of investment grade corporate debt in the domestic real estate sector – gained 10.72%, benefiting from the steep drop in rates. Throughout the period, the fundamental backdrop for commercial real estate securities remained moderately favorable, with stable occupancy rates and gently rising cash flows at the individual property level, even if a modest increase in supply in certain markets and regions slowed the pace of cash-flow growth.Comments from Co-Portfolio Manager Mark Snyderman: For the fiscal year, the fund's share classes (excluding sales charges, if applicable), gained roughly 9% to 11%, with all but one outpacing the 10.00% advance of the Fidelity Real Estate Income Composite Index℠. The Composite index is a 40/40/20 blend of the MSCI REIT Preferred Index, the ICE BofAML® U.S. Real Estate Index and FTSE® NAREIT® All REITs Index. We were happy with the fund's result in absolute terms the past 12 months, as we met our objective of generating an annualized return in at least mid-to-upper-single digits. We did particularly well with our real estate common stock holdings (+18%). The fund's REIT preferred stock investments gained about 9%. On the fixed-income side, our securities generated a high return in absolute terms. Given our philosophy of limiting interest rate exposure, however, we were not surprised to see them lag in an environment of sharply falling interest rates and rallying bond values. For the 12 months, our commercial mortgage-backed securities (CMBS) portfolio gained about 9%, while our high-yield real estate bond portfolio rose 8% and our investment-grade bond portfolio increased about 10%.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Investment Summary (Unaudited)
Top Five Stocks as of July 31, 2019
| % of fund's net assets | |
| Equity Lifestyle Properties, Inc. | 2.6 |
| Apartment Investment & Management Co. Class A | 2.5 |
| American Tower Corp. | 2.4 |
| Ventas, Inc. | 2.3 |
| Acadia Realty Trust (SBI) | 1.7 |
| 11.5 |
Top 5 Bonds as of July 31, 2019
| % of fund's net assets | |
| Kennedy-Wilson, Inc. 5.875% 4/1/24 | 0.9 |
| Senior Housing Properties Trust 4.75% 5/1/24 | 0.8 |
| Howard Hughes Corp. 5.375% 3/15/25 | 0.7 |
| Western Asset Mortgage Capital Corp. 6.75% 10/1/22 | 0.7 |
| Redwood Trust, Inc. 5.625% 7/15/24 | 0.7 |
| 3.8 |
Top Five REIT Sectors as of July 31, 2019
| % of fund's net assets | |
| REITs - Mortgage | 16.6 |
| REITs - Diversified | 8.5 |
| REITs - Health Care | 7.1 |
| REITs - Apartments | 6.7 |
| REITs - Management/Investment | 4.8 |
Asset Allocation (% of fund's net assets)
| As of July 31, 2019 * | ||
| Stocks | 48.2% | |
| Bonds | 32.5% | |
| Convertible Securities | 6.3% | |
| Other Investments | 5.3% | |
| Short-Term Investments and Net Other Assets (Liabilities) | 7.7% | |
* Foreign investments - 2.2%
Schedule of Investments July 31, 2019
Showing Percentage of Net Assets
| Common Stocks - 30.7% | |||
| Shares | Value | ||
| CONSUMER DISCRETIONARY - 0.2% | |||
| Hotels, Restaurants & Leisure - 0.2% | |||
| Wyndham Destinations, Inc. | 299,200 | $14,080,352 | |
| FINANCIALS - 5.6% | |||
| Capital Markets - 0.5% | |||
| Brookfield Asset Management, Inc. Class A | 673,600 | 33,006,298 | |
| Insurance - 0.2% | |||
| FNF Group | 222,500 | 9,540,800 | |
| Mortgage Real Estate Investment Trusts - 4.9% | |||
| Anworth Mortgage Asset Corp. | 371,436 | 1,430,029 | |
| Chimera Investment Corp. | 1,264,200 | 24,373,776 | |
| Dynex Capital, Inc. (a) | 2,018,924 | 32,908,461 | |
| Ellington Financial LLC (a) | 1,706,084 | 29,822,348 | |
| Ellington Residential Mortgage REIT | 483,900 | 5,497,104 | |
| Great Ajax Corp. (a) | 1,577,762 | 21,946,669 | |
| Hunt Companies Finance Trust, Inc. | 547,901 | 1,846,426 | |
| MFA Financial, Inc. | 13,036,211 | 93,599,995 | |
| New Residential Investment Corp. | 4,292,200 | 67,344,618 | |
| Redwood Trust, Inc. | 1,189,152 | 20,120,452 | |
| Two Harbors Investment Corp. | 220,770 | 2,971,564 | |
| 301,861,442 | |||
| TOTAL FINANCIALS | 344,408,540 | ||
| INDUSTRIALS - 0.3% | |||
| Construction & Engineering - 0.3% | |||
| Williams Scotsman Corp. (b) | 1,104,200 | 17,578,864 | |
| REAL ESTATE - 24.6% | |||
| Equity Real Estate Investment Trusts (REITs) - 24.0% | |||
| Acadia Realty Trust (SBI) | 3,629,304 | 101,874,563 | |
| American Tower Corp. | 709,100 | 150,059,742 | |
| Apartment Investment & Management Co. Class A | 3,126,473 | 154,885,472 | |
| AvalonBay Communities, Inc. | 191,700 | 40,025,043 | |
| Boardwalk (REIT) (c) | 296,100 | 9,420,548 | |
| Brixmor Property Group, Inc. | 441,300 | 8,375,874 | |
| Cedar Realty Trust, Inc. | 299,963 | 833,897 | |
| Colony Capital, Inc. | 7,562,448 | 42,727,831 | |
| CoreSite Realty Corp. | 90,500 | 9,485,305 | |
| Crown Castle International Corp. | 642,710 | 85,647,535 | |
| DDR Corp. | 2,164,474 | 30,843,755 | |
| Equinix, Inc. | 120,800 | 60,653,680 | |
| Equity Lifestyle Properties, Inc. | 1,280,498 | 159,101,862 | |
| Equity Residential (SBI) | 570,703 | 45,022,760 | |
| Healthcare Realty Trust, Inc. | 316,300 | 10,115,274 | |
| Healthcare Trust of America, Inc. | 1,239,360 | 33,375,965 | |
| iStar Financial, Inc. (c) | 2,040,400 | 26,933,280 | |
| Lexington Corporate Properties Trust | 4,311,674 | 42,556,222 | |
| Mid-America Apartment Communities, Inc. | 795,406 | 93,730,643 | |
| Monmouth Real Estate Investment Corp. Class A | 1,465,169 | 20,204,681 | |
| NexPoint Residential Trust, Inc. | 61,900 | 2,671,604 | |
| Omega Healthcare Investors, Inc. | 294,023 | 10,673,035 | |
| Outfront Media, Inc. | 354,263 | 9,628,868 | |
| Sabra Health Care REIT, Inc. | 2,865,875 | 59,151,660 | |
| Safety Income and Growth, Inc. (c) | 290,220 | 9,539,531 | |
| Senior Housing Properties Trust (SBI) | 3,276,589 | 26,868,030 | |
| Store Capital Corp. | 772,100 | 26,413,541 | |
| Terreno Realty Corp. | 342,628 | 16,740,804 | |
| UMH Properties, Inc. | 956,930 | 12,583,630 | |
| Ventas, Inc. | 2,126,386 | 143,084,514 | |
| VEREIT, Inc. | 1,347,634 | 12,290,422 | |
| Washington REIT (SBI) | 193,200 | 5,206,740 | |
| Weyerhaeuser Co. | 539,100 | 13,698,531 | |
| 1,474,424,842 | |||
| Real Estate Management & Development - 0.6% | |||
| Colony NorthStar Credit Real Estate, Inc. | 1,544,628 | 25,022,974 | |
| Retail Value, Inc. | 278,955 | 10,499,866 | |
| 35,522,840 | |||
| TOTAL REAL ESTATE | 1,509,947,682 | ||
| TOTAL COMMON STOCKS | |||
| (Cost $1,499,513,641) | 1,886,015,438 | ||
| Preferred Stocks - 18.9% | |||
| Convertible Preferred Stocks - 1.4% | |||
| FINANCIALS - 0.4% | |||
| Mortgage Real Estate Investment Trusts - 0.4% | |||
| Great Ajax Corp. 7.25%(a) | 362,000 | 9,285,423 | |
| ZAIS Financial Corp. 7.00% | 408,637 | 11,191,015 | |
| 20,476,438 | |||
| REAL ESTATE - 1.0% | |||
| Equity Real Estate Investment Trusts (REITs) - 0.9% | |||
| Alexandria Real Estate Equities, Inc. Series D, 7.00% | 136,759 | 5,304,882 | |
| Braemar Hotels & Resorts, Inc. 5.50% | 99,191 | 1,854,872 | |
| iStar Financial, Inc. Series J, 4.50% | 213,773 | 11,444,002 | |
| Lexington Corporate Properties Trust Series C, 6.50% | 468,142 | 25,836,757 | |
| QTS Realty Trust, Inc. 6.50% | 42,000 | 4,739,280 | |
| RLJ Lodging Trust Series A, 1.95% | 31,935 | 849,471 | |
| Wheeler REIT, Inc. 8.75% | 516,748 | 8,226,783 | |
| 58,256,047 | |||
| Real Estate Management & Development - 0.1% | |||
| Landmark Infrastructure Partners LP 7.012% | 191,800 | 4,790,803 | |
| TOTAL REAL ESTATE | 63,046,850 | ||
| TOTAL CONVERTIBLE PREFERRED STOCKS | 83,523,288 | ||
| Nonconvertible Preferred Stocks - 17.5% | |||
| CONSUMER DISCRETIONARY - 0.1% | |||
| Textiles, Apparel & Luxury Goods - 0.1% | |||
| American Finance Trust, Inc. 7.50% | 158,629 | 4,045,040 | |
| ENERGY - 0.4% | |||
| Oil, Gas & Consumable Fuels - 0.4% | |||
| DCP Midstream Partners LP: | |||
| 7.95% | 87,237 | 2,181,797 | |
| Series B, 7.875% | 181,064 | 4,499,440 | |
| Enbridge, Inc. Series 1 4.00% | 200,600 | 4,092,240 | |
| Energy Transfer Partners LP 7.60% | 477,076 | 11,850,568 | |
| Global Partners LP 9.75% | 163,332 | 4,295,632 | |
| 26,919,677 | |||
| FINANCIALS - 8.7% | |||
| Mortgage Real Estate Investment Trusts - 8.5% | |||
| AG Mortgage Investment Trust, Inc.: | |||
| 8.00% | 618,287 | 16,520,629 | |
| 8.25% | 38,935 | 1,012,310 | |
| AGNC Investment Corp.: | |||
| 6.875% | 763,900 | 19,517,645 | |
| Series B, 7.75% | 427,100 | 10,891,050 | |
| Series C, 7.00% | 361,900 | 9,355,115 | |
| Annaly Capital Management, Inc.: | |||
| 6.75% (b) | 90,000 | 2,309,400 | |
| Series D, 7.50% | 606,176 | 15,578,723 | |
| Series F, 6.95% | 1,250,552 | 32,176,703 | |
| Series G, 6.50% | 720,300 | 17,899,455 | |
| Anworth Mortgage Asset Corp. Series A, 8.625% | 238,275 | 6,184,023 | |
| Arbor Realty Trust, Inc.: | |||
| Series A, 8.25% | 189,089 | 4,982,495 | |
| Series B, 7.75% | 240,000 | 6,194,448 | |
| Series C, 8.50% | 100,000 | 2,642,110 | |
| Arlington Asset Investment Corp.: | |||
| 6.625% | 218,046 | 5,329,044 | |
| 8.25% | 148,800 | 3,458,112 | |
| Armour Residential REIT, Inc. Series B, 7.875% | 153,654 | 3,855,179 | |
| Capstead Mortgage Corp. Series E, 7.50% | 331,184 | 8,418,697 | |
| Cherry Hill Mortgage Investment Corp.: | |||
| 8.25% | 220,832 | 5,664,341 | |
| Series A, 8.20% | 246,500 | 6,347,375 | |
| Chimera Investment Corp.: | |||
| 8.00% | 753,384 | 19,550,315 | |
| Series A, 8.00% | 204,800 | 5,406,720 | |
| Series B, 8.00% | 1,259,804 | 33,183,237 | |
| Series C, 7.75% | 1,354,023 | 34,459,885 | |
| Dynex Capital, Inc.: | |||
| Series A, 8.50% | 362,932 | 9,278,320 | |
| Series B, 7.625% | 252,120 | 6,300,479 | |
| Exantas Capital Corp. 8.625% | 239,383 | 6,234,180 | |
| Invesco Mortgage Capital, Inc.: | |||
| 7.50% | 1,413,514 | 36,765,499 | |
| Series A, 7.75% | 123,342 | 3,211,826 | |
| Series B, 7.75% | 856,479 | 23,073,544 | |
| MFA Financial, Inc.: | |||
| 8.00% | 538,930 | 14,044,516 | |
| Series B, 7.50% | 616,232 | 15,535,209 | |
| New Residential Investment Corp. Series A 7.50% (b) | 413,400 | 10,959,234 | |
| New York Mortgage Trust, Inc.: | |||
| Series B, 7.75% | 284,267 | 7,078,248 | |
| Series C, 7.875% | 320,725 | 7,966,809 | |
| Series D, 8.00% | 321,518 | 7,938,279 | |
| PennyMac Mortgage Investment Trust: | |||
| 8.125% | 418,929 | 11,206,351 | |
| Series B, 8.00% | 680,786 | 18,054,445 | |
| Two Harbors Investment Corp.: | |||
| 7.50% | 496,667 | 12,660,539 | |
| 7.75% | 118,428 | 3,006,887 | |
| Series A, 8.125% | 450,000 | 12,141,000 | |
| Series B, 7.625% | 867,199 | 22,685,926 | |
| Series C, 7.25% | 772,494 | 19,490,024 | |
| Wells Fargo Real Estate Investment Corp. Series A, 6.375% | 137,600 | 3,506,048 | |
| ZAIS Financial Corp. Series C 6.20% | 40,000 | 1,020,400 | |
| 523,094,774 | |||
| Real Estate Management & Development - 0.2% | |||
| Brookfield Properties Corp. Series EE, 5.10% | 686,700 | 11,691,278 | |
| TOTAL FINANCIALS | 534,786,052 | ||
| REAL ESTATE - 8.3% | |||
| Equity Real Estate Investment Trusts (REITs) - 8.2% | |||
| American Homes 4 Rent: | |||
| 6.25% | 100,030 | 2,731,319 | |
| Series D, 6.50% | 280,000 | 7,708,400 | |
| Series E, 6.35% | 252,900 | 7,005,330 | |
| Series F, 5.875% | 250,809 | 6,779,367 | |
| Series G, 5.875% | 202,000 | 5,401,480 | |
| Armada Hoffler Properties, Inc. 6.75% (b) | 156,000 | 4,149,600 | |
| Ashford Hospitality Trust, Inc.: | |||
| Series D, 8.45% | 166,470 | 3,818,822 | |
| Series F, 7.375% | 500,100 | 9,806,961 | |
| Series G, 7.375% | 147,018 | 2,840,388 | |
| Series H, 7.50% | 193,740 | 3,870,751 | |
| Series I, 7.50% | 272,461 | 5,528,234 | |
| Bluerock Residential Growth (REIT), Inc.: | |||
| Series A, 8.25% | 486,775 | 12,977,422 | |
| Series C, 7.625% | 255,869 | 6,666,027 | |
| Series D, 7.125% | 170,000 | 4,317,983 | |
| Braemar Hotels & Resorts, Inc. Series D, 8.25% | 175,000 | 4,489,625 | |
| Brookfield Property REIT, Inc. 6.375% | 4,174 | 105,185 | |
| Cedar Realty Trust, Inc.: | |||
| Series B, 7.25% | 183,922 | 4,625,638 | |
| Series C, 6.50% | 294,900 | 6,592,490 | |
| City Office REIT, Inc. Series A, 6.625% | 180,500 | 4,783,250 | |
| Colony Capital, Inc.: | |||
| Series B, 8.25% | 248,172 | 6,358,167 | |
| Series E, 8.75% | 555,602 | 14,306,752 | |
| Series G, 7.50% | 307,968 | 7,296,255 | |
| Series H, 7.125% | 732,865 | 17,112,764 | |
| Series I, 7.15% | 834,142 | 19,702,434 | |
| Series J, 7.15% | 960,643 | 22,594,323 | |
| DDR Corp.: | |||
| Series J, 6.50% | 340,721 | 8,681,571 | |
| Series K, 6.25% | 228,888 | 5,971,688 | |
| Digital Realty Trust, Inc.: | |||
| Series C, 6.625% | 84,000 | 2,236,920 | |
| Series G, 5.875% | 40,444 | 1,031,322 | |
| Farmland Partners, Inc. Series B, 6.00% | 630,200 | 15,093,353 | |
| Gladstone Commercial Corp. Series D, 7.00% | 538,800 | 13,734,389 | |
| Gladstone Land Corp. Series A, 6.375% | 64,000 | 1,644,800 | |
| Global Medical REIT, Inc. Series A, 7.50% | 152,548 | 3,945,059 | |
| Global Net Lease, Inc. Series A, 7.25% | 537,620 | 13,730,815 | |
| Government Properties Income Trust 5.875% | 202,500 | 5,289,300 | |
| Hersha Hospitality Trust: | |||
| Series C, 6.875% | 50,000 | 1,269,000 | |
| Series D, 6.50% | 200,000 | 4,964,000 | |
| Investors Real Estate Trust Series C, 6.625% | 320,900 | 8,256,757 | |
| iStar Financial, Inc.: | |||
| Series D, 8.00% | 210,570 | 5,523,041 | |
| Series G, 7.65% | 274,548 | 6,996,307 | |
| Series I, 7.50% | 161,269 | 4,192,994 | |
| Jernigan Capital, Inc. Series B, 7.00% | 142,637 | 3,715,694 | |
| Monmouth Real Estate Investment Corp. Series C, 6.125% | 260,200 | 6,476,690 | |
| National Retail Properties, Inc. Series E, 5.70% | 301,404 | 7,655,662 | |
| National Storage Affiliates Trust Series A, 6.00% | 92,600 | 2,430,750 | |
| Pebblebrook Hotel Trust: | |||
| 6.30% | 240,000 | 6,019,200 | |
| 6.375% | 355,347 | 8,929,870 | |
| Series C, 6.50% | 204,321 | 5,285,784 | |
| Series D, 6.375% | 350,000 | 9,376,500 | |
| Pennsylvania (REIT): | |||
| Series B, 7.375% | 100,510 | 2,206,195 | |
| Series C, 7.20% | 51,000 | 1,111,800 | |
| Series D, 6.875% | 151,800 | 3,237,894 | |
| Plymouth Industrial REIT, Inc. Series A, 7.50% | 173,575 | 4,450,446 | |
| Prologis, Inc. Series Q, 8.54% | 94,446 | 6,589,497 | |
| Public Storage Series F, 5.15% | 173,400 | 4,487,592 | |
| QTS Realty Trust, Inc. Series A, 7.125% | 30,000 | 791,559 | |
| RAIT Financial Trust 7.625% | 224,590 | 3,483,391 | |
| Rexford Industrial Realty, Inc.: | |||
| Series A, 5.875% | 135,000 | 3,483,000 | |
| Series B, 5.875% | 79,500 | 2,043,150 | |
| Saul Centers, Inc.: | |||
| Series C, 6.875% | 183,479 | 4,853,020 | |
| Series D, 6.125% | 83,700 | 2,137,698 | |
| Seritage Growth Properties Series A, 7.00% | 93,036 | 2,346,052 | |
| Sotherly Hotels, Inc.: | |||
| Series B, 8.00% | 68,000 | 1,717,000 | |
| Series C, 7.875% | 108,200 | 2,726,640 | |
| Spirit Realty Capital, Inc. Series A, 6.00% | 95,200 | 2,439,976 | |
| Stag Industrial, Inc. Series C, 6.875% | 83,000 | 2,258,430 | |
| Summit Hotel Properties, Inc.: | |||
| Series D, 6.45% | 210,000 | 5,485,200 | |
| Series E, 6.25% | 281,640 | 7,342,355 | |
| Sunstone Hotel Investors, Inc.: | |||
| Series E, 6.95% | 42,000 | 1,137,360 | |
| Series F, 6.45% | 84,000 | 2,226,000 | |
| Taubman Centers, Inc. Series K, 6.25% | 157,322 | 4,106,104 | |
| UMH Properties, Inc.: | |||
| Series B, 8.00% | 319,604 | 8,455,124 | |
| Series C, 6.75% | 435,840 | 11,227,238 | |
| Series D, 6.375% | 93,800 | 2,345,000 | |
| Urstadt Biddle Properties, Inc.: | |||
| Series G, 6.75% | 160,000 | 4,111,984 | |
| Series H, 6.25% | 284,500 | 7,744,090 | |
| VEREIT, Inc. Series F, 6.70% | 1,776,606 | 45,605,476 | |
| Washington Prime Group, Inc.: | |||
| Series H, 7.50% | 198,527 | 4,069,645 | |
| Series I, 6.875% | 298,115 | 5,604,145 | |
| 503,843,494 | |||
| Real Estate Management & Development - 0.1% | |||
| Brookfield Property Partners LP 6.50% | 34,500 | 884,925 | |
| Landmark Infrastructure Partners LP Series B, 7.90% | 117,700 | 2,956,047 | |
| 3,840,972 | |||
| TOTAL REAL ESTATE | 507,684,466 | ||
| UTILITIES - 0.0% | |||
| Multi-Utilities - 0.0% | |||
| Brookfield Infrastructure Partners LP Series 5, 5.35% | 184,900 | 3,537,449 | |
| TOTAL NONCONVERTIBLE PREFERRED STOCKS | 1,076,972,684 | ||
| TOTAL PREFERRED STOCKS | |||
| (Cost $1,122,633,401) | 1,160,495,972 | ||
| Principal Amount | Value | ||
| Corporate Bonds - 20.6% | |||
| Convertible Bonds - 4.9% | |||
| FINANCIALS - 4.9% | |||
| Diversified Financial Services - 0.3% | |||
| Granite Point Mortgage Trust, Inc.: | |||
| 5.625% 12/1/22 (d) | 6,770,000 | 6,947,880 | |
| 6.375% 10/1/23 | 10,213,000 | 10,494,094 | |
| 17,441,974 | |||
| Mortgage Real Estate Investment Trusts - 4.6% | |||
| Apollo Commercial Real Estate Finance, Inc. 5.375% 10/15/23 | 1,700,000 | 1,715,128 | |
| Arbor Realty Trust, Inc. 5.25% 7/1/21 (d) | 2,890,000 | 2,994,847 | |
| Blackstone Mortgage Trust, Inc. 4.75% 3/15/23 | 3,900,000 | 4,052,403 | |
| Colony Financial, Inc.: | |||
| 3.875% 1/15/21 | 19,280,000 | 18,942,541 | |
| 5% 4/15/23 | 26,083,000 | 25,234,783 | |
| Exantas Capital Corp. 8% 1/15/20 | 13,890,000 | 14,394,207 | |
| KKR Real Estate Finance Trust, Inc. 6.125% 5/15/23 | 8,100,000 | 8,394,826 | |
| MFA Financial, Inc. 6.25% 6/15/24 | 22,200,000 | 22,606,623 | |
| New York Mortgage Trust, Inc. 6.25% 1/15/22 | 2,500,000 | 2,525,000 | |
| PennyMac Corp. 5.375% 5/1/20 | 35,606,000 | 35,876,297 | |
| Redwood Trust, Inc.: | |||
| 4.75% 8/15/23 | 11,827,000 | 11,789,112�� | |
| 5.625% 7/15/24 | 41,578,000 | 41,993,780 | |
| RWT Holdings, Inc. 5.625% 11/15/19 | 35,156,000 | 35,332,644 | |
| Starwood Property Trust, Inc. 4.375% 4/1/23 | 11,080,000 | 11,269,280 | |
| Two Harbors Investment Corp. 6.25% 1/15/22 | 4,380,000 | 4,451,039 | |
| Western Asset Mortgage Capital Corp. 6.75% 10/1/22 | 42,535,000 | 42,435,847 | |
| 284,008,357 | |||
| TOTAL FINANCIALS | 301,450,331 | ||
| Nonconvertible Bonds - 15.7% | |||
| COMMUNICATION SERVICES - 0.0% | |||
| Media - 0.0% | |||
| CBS Outdoor Americas Capital LLC/CBS Outdoor Americas Capital Corp. 5.625% 2/15/24 | 1,300,000 | 1,335,750 | |
| CONSUMER DISCRETIONARY - 4.9% | |||
| Hotels, Restaurants & Leisure - 0.4% | |||
| ESH Hospitality, Inc. 5.25% 5/1/25 (d) | 11,040,000 | 11,357,400 | |
| FelCor Lodging LP 6% 6/1/25 | 1,845,000 | 1,932,638 | |
| Marriott Ownership Resorts, Inc. 6.5% 9/15/26 | 4,000,000 | 4,291,200 | |
| Times Square Hotel Trust 8.528% 8/1/26 (d) | 5,901,361 | 6,891,252 | |
| 24,472,490 | |||
| Household Durables - 4.5% | |||
| Ashton Woods U.S.A. LLC/Ashton Woods Finance Co.: | |||
| 6.75% 8/1/25 (d) | 26,757,000 | 26,021,183 | |
| 9.875% 4/1/27 (d) | 21,460,000 | 22,747,600 | |
| Beazer Homes U.S.A., Inc.: | |||
| 5.875% 10/15/27 | 10,165,000 | 9,300,975 | |
| 6.75% 3/15/25 | 5,850,000 | 5,791,500 | |
| Brookfield Residential Properties, Inc./Brookfield Residential U.S. Corp. 6.125% 7/1/22 (d) | 5,495,000 | 5,550,609 | |
| Brookfield Residential Properties, Inc.: | |||
| 6.375% 5/15/25 (d) | 5,580,000 | 5,649,750 | |
| 6.5% 12/15/20 (d) | 12,085,000 | 12,085,000 | |
| Century Communities, Inc.: | |||
| 5.875% 7/15/25 | 6,050,000 | 6,080,250 | |
| 6.75% 6/1/27 (d) | 13,380,000 | 13,814,850 | |
| KB Home: | |||
| 6.875% 6/15/27 | 3,000,000 | 3,281,250 | |
| 8% 3/15/20 | 8,465,000 | 8,697,788 | |
| LGI Homes, Inc. 6.875% 7/15/26 (d) | 20,925,000 | 21,291,188 | |
| M/I Homes, Inc.: | |||
| 5.625% 8/1/25 | 10,965,000 | 11,129,475 | |
| 6.75% 1/15/21 | 3,803,000 | 3,831,523 | |
| Mason Finance Sub, Inc. 6.875% 8/15/23 (d) | 12,000,000 | 12,570,000 | |
| Meritage Homes Corp.: | |||
| 5.125% 6/6/27 | 5,035,000 | 5,223,813 | |
| 6% 6/1/25 | 4,000,000 | 4,350,000 | |
| 7% 4/1/22 | 7,525,000 | 8,221,063 | |
| 7.15% 4/15/20 | 7,060,000 | 7,236,500 | |
| New Home Co. LLC 7.25% 4/1/22 | 16,325,000 | 15,590,375 | |
| Taylor Morrison Communities, Inc./Monarch Communities, Inc. 5.875% 4/15/23 (d) | 4,100,000 | 4,305,000 | |
| TRI Pointe Homes, Inc.: | |||
| 5.25% 6/1/27 | 13,190,000 | 12,992,150 | |
| 5.875% 6/15/24 | 14,335,000 | 14,944,238 | |
| William Lyon Homes, Inc.: | |||
| 5.875% 1/31/25 | 10,135,000 | 10,135,000 | |
| 6% 9/1/23 | 7,000,000 | 7,052,500 | |
| 6.625% 7/15/27 (d) | 8,670,000 | 8,626,650 | |
| 7% 8/15/22 | 8,180,000 | 8,192,270 | |
| 274,712,500 | |||
| TOTAL CONSUMER DISCRETIONARY | 299,184,990 | ||
| CONSUMER STAPLES - 0.2% | |||
| Food & Staples Retailing - 0.2% | |||
| Ahold Lease U.S.A., Inc. 7.82% 1/2/20 | 2,222 | 2,265 | |
| C&S Group Enterprises LLC 5.375% 7/15/22 (d) | 9,705,000 | 9,705,000 | |
| Cumberland Farms, Inc. 6.75% 5/1/25 (d) | 2,075,000 | 2,199,500 | |
| 11,906,765 | |||
| ENERGY - 0.1% | |||
| Oil, Gas & Consumable Fuels - 0.1% | |||
| Global Partners LP/GLP Finance Corp.: | |||
| 7% 6/15/23 | 4,000,000 | 4,100,000 | |
| 7% 8/1/27 (d) | 4,000,000 | 4,010,000 | |
| 8,110,000 | |||
| FINANCIALS - 1.0% | |||
| Banks - 0.1% | |||
| HAT Holdings I LLC/HAT Holdings II LLC 5.25% 7/15/24 (d) | 4,305,000 | 4,487,963 | |
| Capital Markets - 0.0% | |||
| CyrusOne LP/CyrusOne Finance Corp. 5% 3/15/24 | 3,610,000 | 3,711,261 | |
| Diversified Financial Services - 0.8% | |||
| Brixmor Operating Partnership LP: | |||
| 3.65% 6/15/24 | 6,000,000 | 6,158,984 | |
| 3.85% 2/1/25 | 8,384,000 | 8,663,268 | |
| Five Point Operation Co. LP 7.875% 11/15/25 (d) | 22,262,000 | 22,262,445 | |
| Icahn Enterprises LP/Icahn Enterprises Finance Corp.: | |||
| 5.875% 2/1/22 | 3,680,000 | 3,716,800 | |
| 6.25% 2/1/22 | 1,695,000 | 1,741,816 | |
| 6.25% 5/15/26 (d) | 5,000,000 | 5,144,200 | |
| 47,687,513 | |||
| Mortgage Real Estate Investment Trusts - 0.1% | |||
| Starwood Property Trust, Inc. 4.75% 3/15/25 | 4,235,000 | 4,297,678 | |
| TOTAL FINANCIALS | 60,184,415 | ||
| HEALTH CARE - 0.2% | |||
| Health Care Providers & Services - 0.2% | |||
| Sabra Health Care LP/Sabra Capital Corp.: | |||
| 4.8% 6/1/24 | 7,560,000 | 7,793,604 | |
| 5.375% 6/1/23 | 5,675,000 | 5,759,104 | |
| 13,552,708 | |||
| INDUSTRIALS - 0.2% | |||
| Building Products - 0.2% | |||
| Shea Homes Ltd. Partnership/Corp. 6.125% 4/1/25 (d) | 10,610,000 | 11,007,875 | |
| REAL ESTATE - 9.1% | |||
| Equity Real Estate Investment Trusts (REITs) - 5.4% | |||
| American Homes 4 Rent 4.9% 2/15/29 | 1,000,000 | 1,099,142 | |
| ARC Properties Operating Partnership LP 4.6% 2/6/24 | 10,480,000 | 11,169,638 | |
| Care Capital Properties LP 5.125% 8/15/26 | 20,493,000 | 21,455,080 | |
| CBL & Associates LP: | |||
| 4.6% 10/15/24 | 26,758,000 | 18,195,440 | |
| 5.25% 12/1/23 | 11,500,000 | 8,395,000 | |
| 5.95% 12/15/26 | 10,434,000 | 7,379,968 | |
| CTR Partnership LP/CareTrust Capital Corp. 5.25% 6/1/25 | 7,577,000 | 7,842,195 | |
| DDR Corp.: | |||
| 3.625% 2/1/25 | 5,551,000 | 5,650,060 | |
| 4.625% 7/15/22 | 658,000 | 683,441 | |
| Equinix, Inc. 5.375% 5/15/27 | 6,620,000 | 7,106,239 | |
| HCP, Inc.: | |||
| 4% 6/1/25 | 1,000,000 | 1,054,900 | |
| 4.25% 11/15/23 | 801,000 | 850,507 | |
| Healthcare Realty Trust, Inc. 3.75% 4/15/23 | 966,000 | 991,306 | |
| Healthcare Trust of America Holdings LP 3.75% 7/1/27 | 8,395,000 | 8,693,627 | |
| Hospitality Properties Trust 5% 8/15/22 | 3,177,000 | 3,312,421 | |
| iStar Financial, Inc.: | |||
| 4.625% 9/15/20 | 6,755,000 | 6,822,550 | |
| 5.25% 9/15/22 | 5,220,000 | 5,304,407 | |
| 6% 4/1/22 | 8,375,000 | 8,584,375 | |
| Lexington Corporate Properties Trust 4.4% 6/15/24 | 2,180,000 | 2,235,259 | |
| MPT Operating Partnership LP/MPT Finance Corp.: | |||
| 4.625% 8/1/29 | 500,000 | 505,938 | |
| 5% 10/15/27 | 9,555,000 | 9,889,425 | |
| 5.25% 8/1/26 | 7,700,000 | 7,988,750 | |
| 6.375% 3/1/24 | 4,000,000 | 4,200,000 | |
| Omega Healthcare Investors, Inc.: | |||
| 4.375% 8/1/23 | 3,303,000 | 3,432,719 | |
| 4.5% 4/1/27 | 2,462,000 | 2,575,241 | |
| 4.75% 1/15/28 | 12,204,000 | 12,955,429 | |
| 4.95% 4/1/24 | 2,898,000 | 3,071,031 | |
| Regency Centers LP 3.6% 2/1/27 | 2,558,000 | 2,660,320 | |
| SBA Communications Corp. 4% 10/1/22 | 5,535,000 | 5,601,420 | |
| Select Income REIT: | |||
| 4.15% 2/1/22 | 11,170,000 | 11,333,264 | |
| 4.25% 5/15/24 | 5,030,000 | 5,085,602 | |
| 4.5% 2/1/25 | 21,294,000 | 21,803,180 | |
| Senior Housing Properties Trust: | |||
| 4.75% 5/1/24 | 44,895,000 | 45,919,683 | |
| 4.75% 2/15/28 | 6,000,000 | 5,886,782 | |
| 6.75% 4/15/20 | 13,624,000 | 13,723,103 | |
| 6.75% 12/15/21 | 8,000,000 | 8,516,662 | |
| VEREIT Operating Partnership LP 4.875% 6/1/26 | 10,945,000 | 11,989,535 | |
| WP Carey, Inc.: | |||
| 4% 2/1/25 | 6,985,000 | 7,223,536 | |
| 4.25% 10/1/26 | 7,242,000 | 7,601,364 | |
| 4.6% 4/1/24 | 11,323,000 | 12,065,728 | |
| 330,854,267 | |||
| Real Estate Management & Development - 3.7% | |||
| Forestar Group, Inc. 8% 4/15/24 (d) | 25,416,000 | 27,068,040 | |
| Greystar Real Estate Partners 5.75% 12/1/25 (d) | 15,655,000 | 16,007,238 | |
| Howard Hughes Corp. 5.375% 3/15/25 (d) | 42,482,000 | 43,544,050 | |
| Kennedy-Wilson, Inc. 5.875% 4/1/24 | 51,515,000 | 52,597,845 | |
| Mack-Cali Realty LP: | |||
| 3.15% 5/15/23 | 10,000 | 9,403 | |
| 4.5% 4/18/22 | 523,000 | 517,268 | |
| Mattamy Group Corp.: | |||
| 6.5% 10/1/25 (d) | 24,110,000 | 25,255,225 | |
| 6.875% 12/15/23 (d) | 7,990,000 | 8,289,625 | |
| Mid-America Apartments LP: | |||
| 3.75% 6/15/24 | 1,663,000 | 1,731,007 | |
| 4.3% 10/15/23 | 2,203,000 | 2,340,006 | |
| Taylor Morrison Communities, Inc./Monarch Communities, Inc.: | |||
| 5.625% 3/1/24 (d) | 9,935,000 | 10,357,238 | |
| 5.75% 1/15/28 (d)(e) | 1,000,000 | 1,035,000 | |
| 5.875% 6/15/27 (d) | 10,000,000 | 10,450,000 | |
| Washington Prime Group LP 5.95% 8/15/24 | 27,489,000 | 25,702,215 | |
| 224,904,160 | |||
| TOTAL REAL ESTATE | 555,758,427 | ||
| TOTAL NONCONVERTIBLE BONDS | 961,040,930 | ||
| TOTAL CORPORATE BONDS | |||
| (Cost $1,237,196,500) | 1,262,491,261 | ||
| Asset-Backed Securities - 2.1% | |||
| American Homes 4 Rent: | |||
| Series 2014-SFR2 Class E, 6.231% 10/17/36 (d) | 3,000,000 | 3,367,515 | |
| Series 2014-SFR3 Class E, 6.418% 12/17/36 (d) | 9,025,000 | 10,178,591 | |
| Series 2015-SFR1: | |||
| Class E, 5.639% 4/17/52 (d) | 1,999,310 | 2,184,156 | |
| Class F, 5.885% 4/17/52 (d) | 2,000,000 | 2,165,553 | |
| Series 2015-SFR2: | |||
| Class E, 6.07% 10/17/52 (d) | 8,259,000 | 9,273,667 | |
| Class XS, 0% 10/17/52 (d)(f)(g)(h) | 4,698,611 | 47 | |
| Capital Trust RE CDO Ltd. Series 2005-1A Class D, 1 month U.S. LIBOR + 1.500% 3.7715% 3/20/50 (d)(f)(h)(i) | 2,250,000 | 225 | |
| Conseco Finance Securitizations Corp. Series 2002-2 Class M2, 9.163% 3/1/33 | 423,369 | 385,451 | |
| Deutsche Financial Capital Securitization LLC Series 1997-I Class M, 7.275% 9/15/27 | 1,046,476 | 1,057,791 | |
| GPMT Ltd. Series 2019-FL2 Class D, 1 month U.S. LIBOR + 2.950% 5.275% 2/22/36 (d)(f)(i) | 2,142,000 | 2,162,756 | |
| Green Tree Financial Corp.: | |||
| Series 1996-4 Class M1, 7.75% 6/15/27 (f) | 757,950 | 763,476 | |
| Series 1997-3 Class M1, 7.53% 3/15/28 | 5,215,046 | 5,215,770 | |
| Home Partners of America Credit Trust Series 2017-1 Class F, 1 month U.S. LIBOR + 3.539% 5.8531% 7/17/34 (d)(f)(i) | 6,318,500 | 6,327,338 | |
| Home Partners of America Trust: | |||
| Series 2016-2 Class F, 1 month U.S. LIBOR + 4.700% 7.0141% 10/17/33 (d)(f)(i) | 3,393,000 | 3,394,949 | |
| Series 2018-1 Class F, 1 month U.S. LIBOR + 2.350% 4.6641% 7/17/37 (d)(f)(i) | 3,896,000 | 3,895,977 | |
| Invitation Homes Trust Series 2018-SFR2 Class F, 1 month U.S. LIBOR + 2.250% 4.575% 6/17/37 (d)(f)(i) | 3,000,000 | 2,998,406 | |
| Lehman ABS Manufactured Housing Contract Trust Series 2001-B Class M2, 7.17% 4/15/40 | 731,284 | 531,575 | |
| Merit Securities Corp. Series 13 Class M1, 7.458% 12/28/33 (f) | 1,554,793 | 1,619,763 | |
| Progress Residential Trust: | |||
| Series 2015-SFR3 Class F, 6.643% 11/12/32 (d) | 2,940,000 | 2,963,079 | |
| Series 2017-SFR1 Class F, 5.35% 8/17/34 (d) | 3,073,000 | 3,164,435 | |
| Series 2017-SFR2 Class F, 1 month U.S. LIBOR + 2.750% 4.836% 12/17/34 (d) | 2,568,000 | 2,608,838 | |
| Series 2018-SFR2 Class F, 4.953% 8/17/35 (d) | 3,402,000 | 3,484,484 | |
| Series 2018-SFR3 Class F, 5.368% 10/17/35 (d) | 3,412,000 | 3,545,476 | |
| Series 2019-SFR1 Class F, 5.061% 8/17/35 (d) | 3,000,000 | 3,090,477 | |
| Series 2019-SFR2 Class F, 4.837% 5/17/36 (d) | 3,902,000 | 3,986,439 | |
| Starwood Waypoint Homes Trust Series 2017-1: | |||
| Class E, 1 month U.S. LIBOR + 2.600% 4.925% 1/17/35 (d)(f)(i) | 5,906,000 | 5,905,974 | |
| Class F, 1 month U.S. LIBOR + 3.400% 5.725% 1/17/35 (d)(f)(i) | 12,671,000 | 12,679,032 | |
| Taberna Preferred Funding III Ltd. Series 2005-3A Class D, 3 month U.S. LIBOR + 2.650% 5.2151% 2/5/36 (d)(f)(h)(i) | 4,589,987 | 344 | |
| Tricon American Homes: | |||
| Series 2016-SFR1 Class F, 5.769% 11/17/33 (d) | 2,544,000 | 2,623,036 | |
| Series 2017-SFR1 Class F, 5.151% 9/17/34 (d) | 8,442,000 | 8,664,784 | |
| Series 2017-SFR2 Class F, 5.104% 1/17/36 (d) | 3,785,000 | 3,916,981 | |
| Series 2018-SFR1 Class F, 4.96% 5/17/37 (d) | 4,000,000 | 4,136,562 | |
| VB-S1 Issuer LLC: | |||
| Series 2016-1A Class F, 6.901% 6/15/46 (d) | 7,797,000 | 8,075,101 | |
| Series 2018-1A Class F, 5.25% 2/15/48 (d) | 1,354,000 | 1,338,849 | |
| Wrightwood Capital Real Estate CDO Ltd. Series 2005-1A Class F, 3 month U.S. LIBOR + 1.950% 4.4719% 11/21/40 (d)(f)(h)(i) | 250,000 | 247,700 | |
| TOTAL ASSET-BACKED SECURITIES | |||
| (Cost $126,590,860) | 125,954,597 | ||
| Collateralized Mortgage Obligations - 0.1% | |||
| Private Sponsor - 0.1% | |||
| FREMF Mortgage Trust: | |||
| Series 2010-K6 Class B, 5.3604% 12/25/46 (d)(f) | 4,500,000 | 4,541,485 | |
| Series 2010-K7 Class B, 5.5007% 4/25/20 (d)(f) | 3,200,000 | 3,249,621 | |
| RESI Finance LP/RESI Finance DE Corp. floater Series 2003-B Class B9, 1 month U.S. LIBOR + 11.950% 14.3294% 6/10/35 (d)(f)(h)(i) | 39,861 | 16,736 | |
| TOTAL PRIVATE SPONSOR | 7,807,842 | ||
| U.S. Government Agency - 0.0% | |||
| Fannie Mae REMIC Trust: | |||
| Series 2002-W1 subordinate REMIC pass thru certificates, Class 3B3, 4.225% 2/25/42 (d)(f) | 43,940 | 15,443 | |
| Series 2003-W10 subordinate REMIC pass thru certificates, Class 2B3, 4.1446% 6/25/43 (d)(f) | 77,544 | 32,208 | |
| TOTAL U.S. GOVERNMENT AGENCY | 47,651 | ||
| TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS | |||
| (Cost $7,789,401) | 7,855,493 | ||
| Commercial Mortgage Securities - 14.6% | |||
| Americold LLC Trust Series 2010-ARTA Class D, 7.443% 1/14/29 (d) | 2,000,000 | 2,092,009 | |
| BANK: | |||
| Series 2017-BNK4 Class D, 3.357% 5/15/50 (d) | 3,349,000 | 3,022,245 | |
| Series 2018-BN12 Class D, 3% 5/15/61 (d) | 1,701,000 | 1,499,405 | |
| Barclays Commercial Mortgage Securities LLC Series 2015-STP: | |||
| Class E, 4.2844% 9/10/28 (d)(f) | 8,413,000 | 8,297,468 | |
| Class F, 4.2844% 9/10/28 (d)(f) | 4,074,000 | 3,898,396 | |
| Braemar Hotels & Resorts Trust floater Series 2018-PRME Class E, 1 month U.S. LIBOR + 2.400% 4.725% 6/15/35 (d)(f)(i) | 1,500,000 | 1,506,570 | |
| BX Trust floater: | |||
| Series 2018-IND: | |||
| Class G, 1 month U.S. LIBOR + 2.050% 4.375% 11/15/35 (d)(f)(i) | 3,807,236 | 3,827,518 | |
| Class H, 1 month U.S. LIBOR + 3.000% 5.325% 11/15/35 (d)(f)(i) | 7,282,313 | 7,321,116 | |
| Series 2019-IMC Class G, 1 month U.S. LIBOR + 3.600% 5.925% 4/15/34 (d)(f)(i) | 5,181,000 | 5,219,955 | |
| CALI Mortgage Trust Series 2019-101C Class F, 4.3244% 3/10/39 (d)(f) | 4,099,000 | 4,187,515 | |
| CAMB Commercial Mortgage Trust floater Series 2019-LIFE Class G, 1 month U.S. LIBOR + 3.250% 5.575% 12/15/37 (d)(f)(i) | 7,428,000 | 7,520,964 | |
| CCRESG Commercial Mortgage Trust Series 2016-HEAT: | |||
| Class E, 5.4883% 4/10/29 (d)(f) | 4,536,000 | 4,586,511 | |
| Class F, 5.4883% 4/10/29 (d)(f) | 9,710,000 | 9,589,791 | |
| CD Mortgage Trust Series 2017-CD3 Class D, 3.25% 2/10/50 (d) | 3,391,000 | 3,072,910 | |
| CGMS Commercial Mortgage Trust Series 2017-MDRB: | |||
| Class D, 1 month U.S. LIBOR + 3.250% 5.575% 7/15/30 (d)(f)(i) | 6,200,000 | 6,188,788 | |
| Class E, 1 month U.S. LIBOR + 3.872% 6.1965% 7/15/30 (d)(f)(i) | 6,741,000 | 6,690,950 | |
| CHC Commercial Mortgage Trust floater Series 2019-CHC Class F, 1 month U.S. LIBOR + 2.608% 5.0082% 6/15/34 (d)(f)(i) | 1,000,000 | 993,303 | |
| Citigroup Commercial Mortgage Trust: | |||
| Series 2013-GC15 Class D, 5.2151% 9/10/46 (d)(f) | 5,254,000 | 5,515,096 | |
| Series 2015-SHP2 Class E, 1 month U.S. LIBOR + 4.350% 6.675% 7/15/27 (d)(f)(i) | 2,933,000 | 2,931,342 | |
| Series 2016-C3 Class D, 3% 11/15/49 (d) | 7,089,000 | 5,881,978 | |
| COMM Mortgage Trust: | |||
| floater Series 2018-HCLV: | |||
| Class F, 1 month U.S. LIBOR + 3.050% 5.375% 9/15/33 (d)(f)(i) | 4,265,000 | 4,269,950 | |
| Class G, 1 month U.S. LIBOR + 5.056% 7.3813% 9/15/33 (d)(f)(i) | 4,265,000 | 4,103,747 | |
| sequential payer Series 2013-LC6 Class E, 3.5% 1/10/46 (d) | 7,300,000 | 6,221,460 | |
| Series 2012-CR1: | |||
| Class C, 5.3203% 5/15/45 (f) | 1,000,000 | 1,044,695 | |
| Class D, 5.3203% 5/15/45 (d)(f) | 5,550,000 | 5,641,769 | |
| Class G, 2.462% 5/15/45 (d) | 6,346,000 | 5,114,464 | |
| Series 2012-LC4: | |||
| Class C, 5.5379% 12/10/44 (f) | 2,000,000 | 2,083,831 | |
| Class D, 5.5379% 12/10/44 (d)(f) | 7,837,000 | 6,841,014 | |
| Series 2013-CR10 Class D, 4.7893% 8/10/46 (d)(f) | 4,544,000 | 4,603,989 | |
| Series 2013-CR12 Class D, 5.0801% 10/10/46 (d)(f) | 4,500,000 | 3,896,359 | |
| Series 2013-LC6 Class D, 4.2621% 1/10/46 (d)(f) | 8,301,000 | 8,483,451 | |
| Series 2014-CR17 Class E, 4.8502% 5/10/47 (d)(f) | 3,098,000 | 2,954,449 | |
| Series 2014-UBS2 Class D, 5.0023% 3/10/47 (d)(f) | 3,713,000 | 3,488,059 | |
| Series 2016-CD1 Class D, 2.7677% 8/10/49 (d)(f) | 9,452,000 | 8,372,385 | |
| Series 2017-CD4 Class D, 3.3% 5/10/50 (d) | 2,800,000 | 2,537,720 | |
| COMM Trust Series 2017-COR2 Class D, 3% 9/10/50 (d) | 2,800,000 | 2,574,062 | |
| Commercial Mortgage Trust pass-thru certificates Series 2012-CR2: | |||
| Class D, 4.831% 8/15/45 (d)(f) | 4,500,000 | 4,578,612 | |
| Class E, 4.831% 8/15/45 (d)(f) | 8,000,000 | 7,827,407 | |
| Class F, 4.25% 8/15/45 (d) | 2,000,000 | 1,774,702 | |
| Core Industrial Trust: | |||
| Series 2015-TEXW Class F, 3.8487% 2/10/34 (d)(f) | 13,083,000 | 13,335,531 | |
| Series 2015-WEST Class F, 4.2268% 2/10/37 (d)(f) | 12,745,000 | 13,526,383 | |
| Credit Suisse Mortgage Trust floater: | |||
| Series 2019-ICE4 Class F, 1 month U.S. LIBOR + 2.650% 4.975% 5/15/36 (d)(f)(i) | 10,383,000 | 10,454,435 | |
| Series 2019-SKLZ Class D, 1 month U.S. LIBOR + 3.600% 5.925% 1/15/34 (d)(f)(i) | 7,876,000 | 7,949,856 | |
| CSAIL Commercial Mortgage Trust: | |||
| Series 2017-C8 Class D, 4.4701% 6/15/50 (d) | 4,346,000 | 4,165,040 | |
| Series 2017-CX10 Class UESD, 4.2366% 10/15/32 (d)(f) | 7,210,000 | 7,266,874 | |
| Series 2017-CX9 Class D, 4.1553% 9/15/50 (d)(f) | 2,568,000 | 2,449,607 | |
| DBCCRE Mortgage Trust Series 2014-ARCP: | |||
| Class D, 4.9345% 1/10/34 (d)(f) | 1,000,000 | 1,031,080 | |
| Class E, 4.9345% 1/10/34 (d)(f) | 10,853,000 | 10,926,172 | |
| DBUBS Mortgage Trust: | |||
| Series 2011-LC1A: | |||
| Class E, 5.6984% 11/10/46 (d)(f) | 14,031,000 | 14,527,676 | |
| Class G, 4.652% 11/10/46 (d) | 12,360,000 | 11,697,330 | |
| Series 2011-LC3A Class D, 5.3338% 8/10/44(d)(f) | 3,945,000 | 4,083,206 | |
| Freddie Mac: | |||
| pass-thru certificates: | |||
| Series K011 Class X3, 2.5734% 12/25/43 (f)(g) | 12,206,096 | 414,341 | |
| Series K012 Class X3, 2.2522% 1/25/41 (f)(g) | 20,724,834 | 646,066 | |
| Series K013 Class X3, 2.8144% 1/25/43 (f)(g) | 14,360,000 | 570,157 | |
| Series KAIV Class X2, 3.6147% 6/25/41 (f)(g) | 7,430,000 | 461,662 | |
| GPMT Ltd. floater Series 2018-FL1 Class D, 1 month U.S. LIBOR + 2.950% 5.2479% 11/21/35 (d)(f)(i) | 2,500,000 | 2,518,750 | |
| GS Mortgage Securities Trust: | |||
| floater Series 2018-RIVR Class G, 1 month U.S. LIBOR + 2.600% 4.925% 7/15/35 (d)(f)(i) | 3,808,000 | 3,797,261 | |
| Series 2010-C2 Class D, 5.1804% 12/10/43 (d)(f) | 3,000,000 | 3,085,250 | |
| Series 2011-GC5: | |||
| Class C, 5.3902% 8/10/44 (d)(f) | 9,000,000 | 9,330,880 | |
| Class D, 5.3902% 8/10/44 (d)(f) | 9,559,000 | 9,405,784 | |
| Class E, 5.3902% 8/10/44 (d)(f) | 8,230,000 | 7,460,196 | |
| Class F, 4.5% 8/10/44 (d) | 7,986,000 | 5,537,056 | |
| Series 2012-GC6: | |||
| Class C, 5.6514% 1/10/45 (d)(f) | 3,600,000 | 3,795,937 | |
| Class D, 5.6514% 1/10/45 (d)(f) | 6,665,000 | 6,821,982 | |
| Class E, 5% 1/10/45 (d)(f) | 7,516,000 | 6,918,004 | |
| Series 2012-GCJ7: | |||
| Class C, 5.686% 5/10/45 (f) | 6,500,000 | 6,833,960 | |
| Class D, 5.686% 5/10/45 (d)(f) | 10,192,000 | 10,140,147 | |
| Class E, 5% 5/10/45 (d) | 3,837,320 | 2,843,384 | |
| Series 2012-GCJ9: | |||
| Class D, 4.744% 11/10/45 (d)(f) | 5,565,000 | 5,670,536 | |
| Class E, 4.744% 11/10/45 (d)(f) | 1,930,000 | 1,827,933 | |
| Series 2013-GC14 Class D, 4.7486% 8/10/46 (d)(f) | 1,680,000 | 1,712,201 | |
| Series 2013-GC16: | |||
| Class D, 5.3106% 11/10/46 (d)(f) | 3,750,000 | 4,031,752 | |
| Class F, 3.5% 11/10/46 (d) | 7,303,000 | 5,779,111 | |
| Series 2016-GS3 Class D, 2.62% 10/10/49 (d) | 3,398,000 | 2,985,316 | |
| Series 2016-REMZ Class MZB, 7.727% 2/10/21 (d) | 29,826,000 | 30,004,324 | |
| Series 2016-RENT: | |||
| Class E, 4.0667% 2/10/29 (d)(f) | 4,340,000 | 4,359,186 | |
| Class F, 4.0667% 2/10/29 (d)(f) | 20,197,000 | 20,150,904 | |
| Hilton U.S.A. Trust: | |||
| Series 2016-HHV Class F, 4.1935% 11/5/38 (d)(f) | 8,440,000 | 8,440,113 | |
| Series 2016-SFP Class F, 6.1552% 11/5/35 (d) | 10,207,000 | 10,322,253 | |
| IMT Trust Series 2017-APTS: | |||
| Class EFX, 3.4966% 6/15/34 (d)(f) | 9,317,000 | 9,202,313 | |
| Class FFL, 1 month U.S. LIBOR + 2.850% 5.175% 6/15/34 (d)(f)(i) | 3,909,000 | 3,918,807 | |
| Independence Plaza Trust Series 2018-INDP Class E, 4.996% 7/10/35 (d) | 2,896,000 | 3,043,453 | |
| Invitation Homes Trust floater: | |||
| Series 2018-SFR3 Class F, 1 month U.S. LIBOR + 2.250% 4.5641% 7/17/37 (d)(f)(i) | 8,405,000 | 8,400,477 | |
| Series 2018-SFR4 Class F, 1 month U.S. LIBOR + 2.200% 4.5141% 1/17/38 (d)(f)(i) | 3,410,000 | 3,400,204 | |
| JP Morgan Chase Commercial Mortgage Securities Trust floater Series 2018-LAQ Class E, 1 month U.S. LIBOR + 3.000% 5.325% 6/15/35 (d)(f)(i) | 1,649,007 | 1,663,453 | |
| JPMBB Commercial Mortgage Securities Trust: | |||
| Series 2014-C23 Class UH5, 4.7094% 9/15/47 (d) | 8,738,000 | 7,345,373 | |
| Series 2014-C26 Class D, 3.9083% 1/15/48 (d)(f) | 3,398,000 | 3,276,232 | |
| JPMCC Commercial Mortgage Securities Trust Series 2016-JP4 Class D, 3.4406% 12/15/49 (d)(f) | 10,241,000 | 9,185,930 | |
| JPMDB Commercial Mortgage Securities Trust: | |||
| Series 2016-C4 Class D, 3.092% 12/15/49 (d)(f) | 7,388,000 | 6,647,394 | |
| Series 2018-C8 Class D, 3.245% 6/15/51 (d)(f) | 1,698,000 | 1,532,137 | |
| JPMorgan Chase Commercial Mortgage Securities Corp. Series 2012-CBX: | |||
| Class C, 5.1317% 6/15/45 (f) | 4,530,000 | 4,703,392 | |
| Class E, 5.1317% 6/15/45 (d)(f) | 5,892,000 | 5,667,534 | |
| Class F, 4% 6/15/45 (d) | 8,192,000 | 6,898,116 | |
| Class G 4% 6/15/45 (d) | 4,044,000 | 2,441,096 | |
| JPMorgan Chase Commercial Mortgage Securities Trust: | |||
| Series 2011-C3: | |||
| Class E, 5.6637% 2/15/46 (d)(f) | 13,930,000 | 13,346,982 | |
| Class G, 4.409% 2/15/46 (d)(f) | 4,671,000 | 4,037,947 | |
| Class H, 4.409% 2/15/46 (d)(f) | 7,077,000 | 5,864,267 | |
| Series 2011-C4 Class F, 3.873% 7/15/46 (d) | 1,400,000 | 1,401,666 | |
| Series 2013-LC11: | |||
| Class D, 4.168% 4/15/46 (f) | 7,809,000 | 6,965,365 | |
| Class E, 3.25% 4/15/46 (d)(f) | 472,000 | 353,898 | |
| Class F, 3.25% 4/15/46 (d)(f) | 2,518,000 | 1,043,787 | |
| Series 2014-DSTY Class E, 3.8046% 6/10/27 (d)(f) | 8,161,000 | 2,642,604 | |
| Series 2015-UES Class F, 3.621% 9/5/32 (d)(f) | 6,896,000 | 6,862,199 | |
| Series 2018-AON Class F, 4.6132% 7/5/31 (d)(f) | 5,096,000 | 5,030,069 | |
| Kref Ltd. floater Series 2018-FL1 Class D, 1 month U.S. LIBOR + 2.550% 4.8641% 6/15/36 (d)(f)(i) | 2,560,000 | 2,561,354 | |
| LSTAR Commercial Mortgage Trust Series 2014-2: | |||
| Class D, 5.9703% 1/20/41 (d)(f) | 679,991 | 679,151 | |
| Class E, 5.9703% 1/20/41 (d)(f) | 4,800,000 | 4,675,936 | |
| Merrill Lynch Mortgage Trust Series 2006-C1 Class AJ, 5.5946% 5/12/39 (f) | 1,945,751 | 1,959,286 | |
| Morgan Stanley BAML Trust: | |||
| Series 2012-C5 Class E, 4.6844% 8/15/45 (d)(f) | 3,889,000 | 4,005,103 | |
| Series 2012-C6 Class D, 4.6084% 11/15/45 (d)(f) | 2,000,000 | 2,068,898 | |
| Series 2013-C12 Class D, 4.7657% 10/15/46 (d)(f) | 7,164,000 | 7,338,234 | |
| Series 2013-C13: | |||
| Class D, 4.9079% 11/15/46 (d)(f) | 5,277,000 | 5,503,027 | |
| Class E, 4.9079% 11/15/46 (d)(f) | 3,379,000 | 3,127,396 | |
| Series 2013-C7: | |||
| Class D, 4.2393% 2/15/46 (d)(f) | 5,650,000 | 5,482,627 | |
| Class E, 4.2393% 2/15/46 (d)(f) | 1,000,000 | 865,934 | |
| Series 2013-C9: | |||
| Class C, 4.0362% 5/15/46 (f) | 3,339,000 | 3,404,915 | |
| Class D, 4.1242% 5/15/46 (d)(f) | 5,137,000 | 5,169,205 | |
| Series 2016-C30 Class D, 3% 9/15/49 (d) | 5,408,000 | 4,544,616 | |
| Series 2016-C31 Class D, 3% 11/15/49 (d)(f) | 1,500,000 | 1,227,898 | |
| Series 2016-C32 Class D, 3.396% 12/15/49 (d) | 5,929,000 | 5,086,994 | |
| Morgan Stanley Capital I Trust: | |||
| floater Series 2019-AGLN: | |||
| Class F, 1 month U.S. LIBOR + 2.600% 4.925% 3/15/34 (d)(f)(i) | 4,000,000 | 4,015,006 | |
| Class G, 1 month U.S. LIBOR + 3.150% 5.475% 3/15/34 (d)(f)(i) | 6,013,000 | 6,043,069 | |
| Series 1998-CF1 Class G, 7.0549% 7/15/32 (d)(f) | 351,347 | 308,073 | |
| Series 2011-C2: | |||
| Class D, 5.4847% 6/15/44 (d)(f) | 5,387,000 | 5,475,592 | |
| Class E, 5.4847% 6/15/44 (d)(f) | 12,150,000 | 11,989,447 | |
| Class F, 5.4847% 6/15/44 (d)(f) | 4,440,000 | 4,065,846 | |
| Class XB, 0.5352% 6/15/44 (d)(f)(g) | 55,442,318 | 319,387 | |
| Series 2011-C3: | |||
| Class D, 5.1107% 7/15/49 (d)(f) | 7,400,000 | 7,472,416 | |
| Class E, 5.1107% 7/15/49 (d)(f) | 3,495,000 | 3,452,185 | |
| Class F, 5.1107% 7/15/49 (d)(f) | 5,688,050 | 5,453,643 | |
| Class G, 5.1107% 7/15/49 (d)(f) | 5,106,500 | 4,600,725 | |
| Series 2012-C4 Class D, 5.4196% 3/15/45 (d)(f) | 6,310,000 | 6,223,152 | |
| Series 2015-MS1 Class D, 4.0308% 5/15/48 (d)(f) | 10,956,000 | 10,384,665 | |
| Series 2015-UBS8 Class D, 3.18% 12/15/48 (d) | 5,013,000 | 4,452,134 | |
| Series 2016-BNK2 Class C, 3% 11/15/49 (d) | 3,000,000 | 2,704,411 | |
| Motel 6 Trust floater: | |||
| Series 2017-M6MZ, Class M, 1 month U.S. LIBOR + 6.927% 9.2515% 8/15/19 (d)(f)(i) | 6,886,078 | 6,943,927 | |
| Series 2017-MTL6, Class F, 1 month U.S. LIBOR + 4.250% 6.575% 8/15/34 (d)(f)(i) | 11,799,448 | 11,880,660 | |
| MSCCG Trust floater Series 2018-SELF Class E, 1 month U.S. LIBOR + 2.150% 4.475% 10/15/37 (d)(f)(i) | 5,118,000 | 5,137,193 | |
| MSCG Trust Series 2016-SNR: | |||
| Class D, 6.55% 11/15/34 (d) | 10,955,650 | 11,209,438 | |
| Class E, 6.8087% 11/15/34 (d) | 9,659,400 | 9,489,840 | |
| MSJP Commercial Securities Mortgage Trust Series 2015-HAUL Class E, 4.851% 9/5/47 (d)(f) | 1,500,000 | 1,538,369 | |
| Natixis Commercial Mortgage Securities Trust floater Series 2018-FL1: | |||
| Class WAN1, 1 month U.S. LIBOR + 2.750% 5.145% 6/15/35 (d)(f)(i) | 1,743,000 | 1,747,263 | |
| Class WAN2, 1 month U.S. LIBOR + 3.750% 6.145% 6/15/35 (d)(f)(i) | 651,000 | 647,690 | |
| Providence Place Group Ltd. Partnership Series 2000-C1 Class A2, 7.75% 7/20/28 (d) | 4,042,488 | 4,948,399 | |
| ReadyCap Commercial Mortgage Trust floater Series 2019-FL3 Class D, 1 month U.S. LIBOR + 2.900% 5.166% 3/25/34 (d)(f)(i) | 3,439,000 | 3,376,816 | |
| TIAA Seasoned Commercial Mortgage Trust sequential payer Series 2007-C4 Class AJ, 5.483% 8/15/39 (f) | 80,703 | 80,918 | |
| UBS Commercial Mortgage Trust Series 2012-C1: | |||
| Class D, 5.5432% 5/10/45 (d)(f) | 3,235,000 | 3,267,340 | |
| Class E, 5% 5/10/45 (d)(f) | 6,339,000 | 5,855,530 | |
| Class F, 5% 5/10/45 (d)(f) | 2,221,350 | 1,749,938 | |
| UBS-BAMLL Trust Series 12-WRM Class D, 4.238% 6/10/30 (d)(f) | 2,143,000 | 2,086,461 | |
| UBS-Citigroup Commercial Mortgage Trust Series 2011-C1 Class B, 6.0505% 1/10/45 (d)(f) | 3,000,000 | 3,217,320 | |
| Wells Fargo Commercial Mortgage Trust: | |||
| Series 2012-LC5: | |||
| Class D, 4.7606% 10/15/45 (d)(f) | 12,964,000 | 13,376,601 | |
| Class E, 4.7606% 10/15/45 (d)(f) | 8,441,000 | 8,405,151 | |
| Class F, 4.7606% 10/15/45 (d)(f) | 2,000,000 | 1,853,244 | |
| Series 2016-BNK1 Class D, 3% 8/15/49 (d) | 6,979,000 | 5,844,072 | |
| Series 2016-C35 Class D, 3.142% 7/15/48 (d) | 18,542,000 | 15,566,122 | |
| Series 2016-NXS6 Class D, 3.059% 11/15/49 (d) | 5,094,000 | 4,476,749 | |
| Series 2017-C38 Class D, 3% 7/15/50 (d)(f) | 4,373,000 | 3,762,886 | |
| WF-RBS Commercial Mortgage Trust: | |||
| sequential payer Series 2011-C4I Class G, 5% 6/15/44 | 4,000,000 | 2,777,640 | |
| Series 2011-C3: | |||
| Class C, 5.335% 3/15/44 (d) | 4,900,000 | 5,056,226 | |
| Class D, 5.683% 3/15/44 (d)(f) | 1,000,000 | 852,223 | |
| Class E, 5% 3/15/44 (d) | 3,000,000 | 1,509,487 | |
| Series 2011-C5: | |||
| Class E, 5.6691% 11/15/44 (d)(f) | 3,807,000 | 3,897,897 | |
| Class F, 5.25% 11/15/44 (d)(f) | 3,000,000 | 2,795,188 | |
| Class G, 5.25% 11/15/44 (d)(f) | 2,000,000 | 1,773,899 | |
| Series 2012-C7: | |||
| Class D, 4.8147% 6/15/45 (d)(f) | 2,380,000 | 2,303,250 | |
| Class F, 4.5% 6/15/45 (d) | 2,000,000 | 1,292,232 | |
| Series 2012-C8 Class E, 4.89% 8/15/45 (d)(f) | 2,922,500 | 2,967,266 | |
| Series 2013-C11: | |||
| Class D, 4.2616% 3/15/45 (d)(f) | 5,830,000 | 5,837,812 | |
| Class E, 4.2616% 3/15/45 (d)(f) | 4,780,000 | 4,563,172 | |
| Series 2013-C13 Class D, 4.132% 5/15/45 (d)(f) | 4,000,000 | 4,045,392 | |
| Series 2013-C16 Class D, 5.0262% 9/15/46 (d)(f) | 3,728,000 | 3,648,005 | |
| Series 2013-UBS1 Class D, 4.74% 3/15/46 (d)(f) | 4,589,000 | 4,642,202 | |
| WP Glimcher Mall Trust Series 2015-WPG: | |||
| Class PR1, 3.516% 6/5/35 (d)(f) | 6,725,000 | 5,701,154 | |
| Class PR2, 3.516% 6/5/35 (d)(f) | 2,541,000 | 2,057,680 | |
| TOTAL COMMERCIAL MORTGAGE SECURITIES | |||
| (Cost $852,525,208) | 899,251,263 | ||
| Bank Loan Obligations - 5.3% | |||
| COMMUNICATION SERVICES - 0.2% | |||
| Wireless Telecommunication Services - 0.2% | |||
| SBA Senior Finance II, LLC Tranche B, term loan 3 month U.S. LIBOR + 2.000% 4.24% 4/11/25 (f)(i) | 13,532,580 | 13,489,412 | |
| CONSUMER DISCRETIONARY - 0.8% | |||
| Hotels, Restaurants & Leisure - 0.7% | |||
| Caesars Resort Collection LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.750% 4.9844% 12/22/24 (f)(i) | 8,018,783 | 7,949,902 | |
| ESH Hospitality, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.000% 4.2344% 8/30/23 (f)(i) | 10,375,066 | 10,381,498 | |
| LTF Merger Sub, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.750% 5.2718% 6/10/22 (f)(i) | 6,214,230 | 6,207,333 | |
| Marriott Ownership Resorts, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.250% 4.4844% 8/31/25 (f)(i) | 4,034,725 | 4,043,117 | |
| Playa Resorts Holding BV Tranche B, term loan 3 month U.S. LIBOR + 2.750% 4.98% 4/27/24 (f)(i) | 11,394,087 | 10,944,021 | |
| Wyndham Destinations, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.250% 4.4844% 5/31/25 (f)(i) | 6,278,580 | 6,247,187 | |
| 45,773,058 | |||
| Multiline Retail - 0.1% | |||
| JC Penney Corp., Inc. Tranche B, term loan 3 month U.S. LIBOR + 4.250% 6.7706% 6/23/23 (f)(i) | 6,100,522 | 5,274,877 | |
| TOTAL CONSUMER DISCRETIONARY | 51,047,935 | ||
| CONSUMER STAPLES - 0.5% | |||
| Food & Staples Retailing - 0.5% | |||
| Albertson's LLC Tranche B, term loan: | |||
| 3 month U.S. LIBOR + 3.000% 5.2344% 6/22/23 (f)(i) | 16,976,029 | 16,998,946 | |
| 3 month U.S. LIBOR + 3.000% 5.3113% 12/21/22 (f)(i) | 11,383,449 | 11,402,801 | |
| 28,401,747 | |||
| ENERGY - 0.6% | |||
| Energy Equipment & Services - 0.1% | |||
| Kestrel Acquisition LLC Tranche B, term loan 3 month U.S. LIBOR + 4.250% 6.49% 6/1/25 (f)(i) | 5,943,722 | 5,817,418 | |
| Oil, Gas & Consumable Fuels - 0.5% | |||
| Moxie Patriot LLC Tranche B, term loan 3 month U.S. LIBOR + 5.750% 8.0799% 12/19/20 (f)(i) | 21,740,599 | 20,526,822 | |
| TPF II Power LLC Tranche B, term loan 3 month U.S. LIBOR + 3.750% 5.9844% 10/2/23 (f)(i) | 8,036,875 | 8,054,476 | |
| 28,581,298 | |||
| TOTAL ENERGY | 34,398,716 | ||
| FINANCIALS - 0.5% | |||
| Capital Markets - 0.0% | |||
| Blackstone CQP Holdco LP Tranche B, term loan 3 month U.S. LIBOR + 3.500% 5.8866% 9/30/24 (f)(i) | 2,135,000 | 2,143,006 | |
| Diversified Financial Services - 0.2% | |||
| Veritas-B Junior Mezz C LLC 10.48% 2/6/21 (f)(h) | 9,171,000 | 9,429,622 | |
| Mortgage Real Estate Investment Trusts - 0.1% | |||
| Apollo Commercial Real Estate Finance, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.750% 5.075% 5/7/26 (f)(i) | 3,460,000 | 3,447,025 | |
| Blackstone Mortgage Trust, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.500% 4.7411% 4/16/26 (f)(i) | 5,170,000 | 5,189,388 | |
| 8,636,413 | |||
| Real Estate Management & Development - 0.1% | |||
| MGM Growth Properties Operating Partner LP Tranche B, term loan 3 month U.S. LIBOR + 2.000% 4.2344% 3/23/25 (f)(i) | 2,546,838 | 2,546,303 | |
| Thrifts & Mortgage Finance - 0.1% | |||
| Ocwen Loan Servicing LLC Tranche B, term loan 3 month U.S. LIBOR + 5.000% 7.2344% 12/5/20 (f)(i) | 7,949,395 | 7,916,246 | |
| TOTAL FINANCIALS | 30,671,590 | ||
| INDUSTRIALS - 0.1% | |||
| Commercial Services & Supplies - 0.1% | |||
| Lineage Logistics Holdings, LLC. Tranche B, term loan 3 month U.S. LIBOR + 3.000% 5.2344% 2/27/25 (f)(i) | 6,398,459 | 6,374,465 | |
| INFORMATION TECHNOLOGY - 0.1% | |||
| Electronic Equipment & Components - 0.1% | |||
| Compass Power Generation LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.500% 5.7344% 12/20/24 (f)(i) | 3,259,513 | 3,270,921 | |
| REAL ESTATE - 1.5% | |||
| Equity Real Estate Investment Trusts (REITs) - 0.6% | |||
| Invitation Homes Operating Par Tranche B, term loan 3 month U.S. LIBOR + 1.700% 3.9691% 2/6/22 (f)(h)(i) | 20,000,000 | 19,500,000 | |
| iStar Financial, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.750% 5.0883% 6/28/23 (f)(i) | 17,057,363 | 17,100,007 | |
| 36,600,007 | |||
| Real Estate Management & Development - 0.9% | |||
| Capital Automotive LP Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.500% 4.74% 3/24/24 (f)(i) | 6,257,980 | 6,243,461 | |
| DTZ U.S. Borrower LLC Tranche B, term loan 3 month U.S. LIBOR + 3.250% 5.4844% 8/21/25 (f)(i) | 31,592,937 | 31,691,823 | |
| Realogy Group LLC Tranche B, term loan 3 month U.S. LIBOR + 2.250% 4.5215% 2/8/25 (f)(i) | 3,959,799 | 3,763,789 | |
| VICI Properties, LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.000% 4.2715% 12/22/24 (f)(i) | 13,235,000 | 13,199,795 | |
| 54,898,868 | |||
| TOTAL REAL ESTATE | 91,498,875 | ||
| UTILITIES - 1.0% | |||
| Electric Utilities - 0.6% | |||
| Green Energy Partners/Stonewall LLC: | |||
| Tranche B 1LN, term loan 3 month U.S. LIBOR + 5.500% 7.8299% 11/13/21 (f)(i) | 10,987,040 | 10,671,163 | |
| Tranche B 2LN, term loan 3 month U.S. LIBOR + 5.500% 7.8299% 11/13/21 (f)(i) | 1,940,127 | 1,884,348 | |
| Lightstone Holdco LLC: | |||
| Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.750% 5.9844% 1/30/24 (f)(i) | 16,797,750 | 16,531,841 | |
| Tranche C 1LN, term loan 3 month U.S. LIBOR + 3.750% 5.9844% 1/30/24 (f)(i) | 947,420 | 932,422 | |
| Lonestar II Generation Holding: | |||
| Tranche B 1LN, term loan 3 month U.S. LIBOR + 5.000% 7.2344% 4/10/26 (f)(i) | 5,357,143 | 5,343,750 | |
| Tranche C 1LN, term loan 3 month U.S. LIBOR + 5.000% 7.2344% 4/10/26 (f)(i) | 642,857 | 641,250 | |
| Southeast Powergen LLC Tranche B, term loan 3 month U.S. LIBOR + 3.500% 5.74% 12/2/21 (f)(i) | 1,288,564 | 1,230,578 | |
| 37,235,352 | |||
| Independent Power and Renewable Electricity Producers - 0.4% | |||
| APLP Holdings LP Tranche B, term loan 3 month U.S. LIBOR + 2.750% 4.9844% 4/13/23 (f)(i) | 7,085,834 | 7,076,977 | |
| MRP Generation Holdings LLC Tranche B, term loan 3 month U.S. LIBOR + 7.000% 9.3299% 10/18/22 (f)(i) | 14,336,137 | 14,156,935 | |
| Oregon Clean Energy LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.750% 5.9844% 3/1/26 (f)(i) | 5,985,000 | 5,987,514 | |
| 27,221,426 | |||
| TOTAL UTILITIES | 64,456,778 | ||
| TOTAL BANK LOAN OBLIGATIONS | |||
| (Cost $325,110,260) | 323,610,439 | ||
| Preferred Securities - 0.0% | |||
| FINANCIALS - 0.0% | |||
| Diversified Financial Services - 0.0% | |||
| Crest Dartmouth Street 2003-1 Ltd. Series 2003-1A Class PS, 6/28/38 (d)(h) | 1,220,000 | 122 | |
| Thrifts & Mortgage Finance - 0.0% | |||
| Crest Clarendon Street 2002-1 Ltd. Series 2002-1A Class PS, 12/28/35 (d)(h) | 500,000 | 11,630 | |
| TOTAL PREFERRED SECURITIES | |||
| (Cost $1,297,768) | 11,752 | ||
| Shares | Value | ||
| Money Market Funds - 7.5% | |||
| Fidelity Cash Central Fund 2.43% (j) | 442,960,538 | 443,049,130 | |
| Fidelity Securities Lending Cash Central Fund 2.43% (j)(k) | 18,152,162 | 18,153,977 | |
| TOTAL MONEY MARKET FUNDS | |||
| (Cost $461,146,389) | 461,203,107 | ||
| TOTAL INVESTMENT IN SECURITIES - 99.8% | |||
| (Cost $5,633,803,428) | 6,126,889,322 | ||
| NET OTHER ASSETS (LIABILITIES) - 0.2% | 14,555,427 | ||
| NET ASSETS - 100% | $6,141,444,749 |
Legend
(a) Affiliated company
(b) Non-income producing
(c) Security or a portion of the security is on loan at period end.
(d) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $1,353,229,659 or 22.0% of net assets.
(e) Security or a portion of the security purchased on a delayed delivery or when-issued basis.
(f) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end.
(g) Security represents right to receive monthly interest payments on an underlying pool of mortgages or assets. Principal shown is the outstanding par amount of the pool as of the end of the period.
(h) Level 3 security
(i) Coupon is indexed to a floating interest rate which may be multiplied by a specified factor and/or subject to caps or floors.
(j) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(k) Investment made with cash collateral received from securities on loan.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
| Fund | Income earned |
| Fidelity Cash Central Fund | $9,022,970 |
| Fidelity Securities Lending Cash Central Fund | 126,726 |
| Total | $9,149,696 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable. Amount for Fidelity Securities Lending Cash Central Fund 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.
Other Affiliated Issuers
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows:
| Affiliate | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Realized Gain (loss) | Change in Unrealized appreciation (depreciation) | Value, end of period |
| Acadia Realty Trust (SBI) | $118,210,943 | $-- | $20,606,614 | $4,491,535 | $(1,889,970) | $6,160,204 | $-- |
| Dynex Capital, Inc. | 8,749,159 | 28,376,699 | 194,248 | 500,909 | (47,104) | (181,125) | 32,908,461 |
| Ellington Financial LLC | 26,952,776 | 2,450,608 | 1,213,916 | 3,166,368 | (515,168) | 2,148,048 | 29,822,348 |
| Great Ajax Corp. | 21,094,678 | -- | -- | 1,088,655 | -- | 734,661 | 21,946,669 |
| Great Ajax Corp. 7.25% | 6,982,400 | 1,999,890 | -- | 619,422 | -- | 303,133 | 9,285,423 |
| Total | $181,989,956 | $32,827,197 | $22,014,778 | $9,866,889 | $(2,452,242) | $9,164,921 | $93,962,901 |
Investment Valuation
The following is a summary of the inputs used, as of July 31, 2019, 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 below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| Valuation Inputs at Reporting Date: | ||||
| Description | Total | Level 1 | Level 2 | Level 3 |
| Investments in Securities: | ||||
| Equities: | ||||
| Consumer Discretionary | $18,125,392 | $18,125,392 | $-- | $-- |
| Energy | 26,919,677 | 26,919,677 | -- | -- |
| Financials | 899,671,030 | 879,194,592 | 20,476,438 | -- |
| Industrials | 17,578,864 | 17,578,864 | -- | -- |
| Real Estate | 2,080,678,998 | 2,017,632,148 | 63,046,850 | -- |
| Utilities | 3,537,449 | 3,537,449 | -- | -- |
| Corporate Bonds | 1,262,491,261 | -- | 1,262,491,261 | -- |
| Asset-Backed Securities | 125,954,597 | -- | 125,706,281 | 248,316 |
| Collateralized Mortgage Obligations | 7,855,493 | -- | 7,838,757 | 16,736 |
| Commercial Mortgage Securities | 899,251,263 | -- | 899,251,263 | -- |
| Bank Loan Obligations | 323,610,439 | -- | 294,680,817 | 28,929,622 |
| Preferred Securities | 11,752 | -- | -- | 11,752 |
| Money Market Funds | 461,203,107 | 461,203,107 | -- | -- |
| Total Investments in Securities: | $6,126,889,322 | $3,424,191,229 | $2,673,491,667 | $29,206,426 |
Other Information
The composition of credit quality ratings as a percentage of Total Net Assets is as follows (Unaudited):
| AAA,AA,A | 1.1% |
| BBB | 6.1% |
| BB | 12.8% |
| B | 10.2% |
| CCC,CC,C | 0.9% |
| Not Rated | 11.6% |
| Equities | 49.6% |
| Short-Term Investments and Net Other Assets | 7.7% |
| 100.0% |
We have used ratings from Moody's Investors Service, Inc. Where Moody's® ratings are not available, we have used S&P® ratings. All ratings are as of the date indicated and do not reflect subsequent changes.
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
| July 31, 2019 | ||
| Assets | ||
| Investment in securities, at value (including securities loaned of $17,584,632) — See accompanying schedule: Unaffiliated issuers (cost $5,069,899,551) | $5,571,723,314 | |
| Fidelity Central Funds (cost $461,146,389) | 461,203,107 | |
| Other affiliated issuers (cost $102,757,488) | 93,962,901 | |
| Total Investment in Securities (cost $5,633,803,428) | $6,126,889,322 | |
| Cash | 42,247 | |
| Receivable for investments sold | 19,299,270 | |
| Receivable for fund shares sold | 10,715,853 | |
| Dividends receivable | 3,061,186 | |
| Interest receivable | 25,745,193 | |
| Distributions receivable from Fidelity Central Funds | 928,848 | |
| Prepaid expenses | 15,801 | |
| Other receivables | 5,722 | |
| Total assets | 6,186,703,442 | |
| Liabilities | ||
| Payable for investments purchased | ||
| Regular delivery | $13,971,143 | |
| Delayed delivery | 1,000,000 | |
| Payable for fund shares redeemed | 8,060,530 | |
| Accrued management fee | 2,760,570 | |
| Distribution and service plan fees payable | 253,470 | |
| Other affiliated payables | 954,324 | |
| Other payables and accrued expenses | 108,215 | |
| Collateral on securities loaned | 18,150,441 | |
| Total liabilities | 45,258,693 | |
| Net Assets | $6,141,444,749 | |
| Net Assets consist of: | ||
| Paid in capital | $5,547,025,725 | |
| Total distributable earnings (loss) | 594,419,024 | |
| Net Assets | $6,141,444,749 | |
| Net Asset Value and Maximum Offering Price | ||
| Class A: | ||
| Net Asset Value and redemption price per share ($325,295,939 ÷ 26,174,023 shares)(a) | $12.43 | |
| Maximum offering price per share (100/96.00 of $12.43) | $12.95 | |
| Class M: | ||
| Net Asset Value and redemption price per share ($60,540,432 ÷ 4,869,306 shares)(a) | $12.43 | |
| Maximum offering price per share (100/96.00 of $12.43) | $12.95 | |
| Class C: | ||
| Net Asset Value and offering price per share ($210,156,456 ÷ 17,108,462 shares)(a) | $12.28 | |
| Real Estate Income: | ||
| Net Asset Value, offering price and redemption price per share ($2,691,819,817 ÷ 215,371,946 shares) | $12.50 | |
| Class I: | ||
| Net Asset Value, offering price and redemption price per share ($2,386,307,615 ÷ 191,632,413 shares) | $12.45 | |
| Class Z: | ||
| Net Asset Value, offering price and redemption price per share ($467,324,490 ÷ 37,530,917 shares) | $12.45 |
(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.
Statement of Operations
| Year ended July 31, 2019 | ||
| Investment Income | ||
| Dividends (including $9,866,889 earned from other affiliated issuers) | $142,600,518 | |
| Interest | 144,494,660 | |
| Income from Fidelity Central Funds (including $126,726 from security lending) | 9,149,696 | |
| Total income | 296,244,874 | |
| Expenses | ||
| Management fee | $30,094,760 | |
| Transfer agent fees | 9,674,794 | |
| Distribution and service plan fees | 3,030,821 | |
| Accounting and security lending fees | 1,392,523 | |
| Custodian fees and expenses | 61,499 | |
| Independent trustees' fees and expenses | 30,175 | |
| Registration fees | 251,086 | |
| Audit | 104,713 | |
| Legal | 15,955 | |
| Miscellaneous | 35,040 | |
| Total expenses before reductions | 44,691,366 | |
| Expense reductions | (101,109) | |
| Total expenses after reductions | 44,590,257 | |
| Net investment income (loss) | 251,654,617 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | 77,703,016 | |
| Fidelity Central Funds | 336 | |
| Other affiliated issuers | (2,452,242) | |
| Foreign currency transactions | 1,497 | |
| Total net realized gain (loss) | 75,252,607 | |
| Change in net unrealized appreciation (depreciation) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | 230,081,124 | |
| Fidelity Central Funds | 1,049 | |
| Other affiliated issuers | 9,164,921 | |
| Assets and liabilities in foreign currencies | (143) | |
| Total change in net unrealized appreciation (depreciation) | 239,246,951 | |
| Net gain (loss) | 314,499,558 | |
| Net increase (decrease) in net assets resulting from operations | $566,154,175 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Year ended July 31, 2019 | Year ended July 31, 2018 | |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $251,654,617 | $218,764,196 |
| Net realized gain (loss) | 75,252,607 | 114,217,439 |
| Change in net unrealized appreciation (depreciation) | 239,246,951 | (223,088,895) |
| Net increase (decrease) in net assets resulting from operations | 566,154,175 | 109,892,740 |
| Distributions to shareholders | (340,039,890) | – |
| Distributions to shareholders from net investment income | – | (209,651,623) |
| Distributions to shareholders from net realized gain | – | (58,110,159) |
| Total distributions | (340,039,890) | (267,761,782) |
| Share transactions - net increase (decrease) | 661,318,743 | 122,424,204 |
| Redemption fees | – | 106,734 |
| Total increase (decrease) in net assets | 887,433,028 | (35,338,104) |
| Net Assets | ||
| Beginning of period | 5,254,011,721 | 5,289,349,825 |
| End of period | $6,141,444,749 | $5,254,011,721 |
| Other Information | ||
| Undistributed net investment income end of period | $38,805,646 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Real Estate Income Fund Class A
| Years ended July 31, | 2019 | 2018 | 2017 | 2016 | 2015 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $11.99 | $12.32 | $12.25 | $11.66 | $11.86 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .51 | .47 | .49 | .49 | .52 |
| Net realized and unrealized gain (loss) | .65 | (.22) | .14 | .73 | .02 |
| Total from investment operations | 1.16 | .25 | .63 | 1.22 | .54 |
| Distributions from net investment income | (.51) | (.45) | (.48) | (.48) | (.52) |
| Distributions from net realized gain | (.21) | (.13) | (.08) | (.14) | (.21) |
| Total distributions | (.72) | (.58) | (.56) | (.63)B | (.74)C |
| Redemption fees added to paid in capitalA | – | –D | –D | –D | –D |
| Net asset value, end of period | $12.43 | $11.99 | $12.32 | $12.25 | $11.66 |
| Total ReturnE,F | 10.15% | 2.13% | 5.37% | 11.01% | 4.65% |
| Ratios to Average Net AssetsG,H | |||||
| Expenses before reductions | 1.01% | 1.02% | 1.03% | 1.03% | 1.04% |
| Expenses net of fee waivers, if any | 1.01% | 1.02% | 1.03% | 1.03% | 1.03% |
| Expenses net of all reductions | 1.01% | 1.01% | 1.02% | 1.03% | 1.03% |
| Net investment income (loss) | 4.29% | 3.98% | 4.08% | 4.29% | 4.40% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $325,296 | $297,722 | $355,400 | $548,649 | $495,462 |
| Portfolio turnover rateI | 17% | 27% | 22% | 26% | 19% |
A Calculated based on average shares outstanding during the period.
B Total distributions of $.63 per share is comprised of distributions from net investment income of $.483 and distributions from net realized gain of $.142 per share.
C Total distributions of $.74 per share is comprised of distributions from net investment income of $.523 and distributions from net realized gain of $.212 per share.
D Amount represents less than $.005 per share.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the sales charges.
G 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.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Real Estate Income Fund Class M
| Years ended July 31, | 2019 | 2018 | 2017 | 2016 | 2015 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $11.99 | $12.32 | $12.26 | $11.66 | $11.86 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .51 | .47 | .49 | .49 | .51 |
| Net realized and unrealized gain (loss) | .65 | (.22) | .13 | .73 | .02 |
| Total from investment operations | 1.16 | .25 | .62 | 1.22 | .53 |
| Distributions from net investment income | (.51) | (.45) | (.48) | (.48) | (.52) |
| Distributions from net realized gain | (.21) | (.13) | (.08) | (.14) | (.21) |
| Total distributions | (.72) | (.58) | (.56) | (.62) | (.73) |
| Redemption fees added to paid in capitalA | – | –B | –B | –B | –B |
| Net asset value, end of period | $12.43 | $11.99 | $12.32 | $12.26 | $11.66 |
| Total ReturnC,D | 10.12% | 2.10% | 5.26% | 11.06% | 4.62% |
| Ratios to Average Net AssetsE,F | |||||
| Expenses before reductions | 1.04% | 1.04% | 1.06% | 1.07% | 1.06% |
| Expenses net of fee waivers, if any | 1.04% | 1.04% | 1.06% | 1.07% | 1.06% |
| Expenses net of all reductions | 1.04% | 1.04% | 1.05% | 1.06% | 1.06% |
| Net investment income (loss) | 4.26% | 3.95% | 4.05% | 4.26% | 4.37% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $60,540 | $55,175 | $64,158 | $59,788 | $55,424 |
| Portfolio turnover rateG | 17% | 27% | 22% | 26% | 19% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
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 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 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.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Real Estate Income Fund Class C
| Years ended July 31, | 2019 | 2018 | 2017 | 2016 | 2015 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $11.85 | $12.20 | $12.14 | $11.55 | $11.77 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .42 | .38 | .40 | .40 | .43 |
| Net realized and unrealized gain (loss) | .64 | (.22) | .13 | .73 | .01 |
| Total from investment operations | 1.06 | .16 | .53 | 1.13 | .44 |
| Distributions from net investment income | (.42) | (.37) | (.39) | (.40) | (.45) |
| Distributions from net realized gain | (.21) | (.13) | (.08) | (.14) | (.21) |
| Total distributions | (.63) | (.51)B | (.47) | (.54) | (.66) |
| Redemption fees added to paid in capitalA | – | –C | –C | –C | –C |
| Net asset value, end of period | $12.28 | $11.85 | $12.20 | $12.14 | $11.55 |
| Total ReturnD,E | 9.34% | 1.31% | 4.54% | 10.29% | 3.82% |
| Ratios to Average Net AssetsF,G | |||||
| Expenses before reductions | 1.76% | 1.76% | 1.78% | 1.79% | 1.79% |
| Expenses net of fee waivers, if any | 1.76% | 1.76% | 1.78% | 1.78% | 1.78% |
| Expenses net of all reductions | 1.76% | 1.76% | 1.78% | 1.78% | 1.78% |
| Net investment income (loss) | 3.54% | 3.23% | 3.32% | 3.54% | 3.65% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $210,156 | $227,458 | $287,598 | $289,430 | $291,387 |
| Portfolio turnover rateH | 17% | 27% | 22% | 26% | 19% |
A Calculated based on average shares outstanding during the period.
B Total distributions of $.51 per share is comprised of distributions from net investment income of $.373 and distributions from net realized gain of $.132 per share.
C Amount represents less than $.005 per share.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the contingent deferred sales charge.
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 Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Real Estate Income Fund
| Years ended July 31, | 2019 | 2018 | 2017 | 2016 | 2015 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $12.05 | $12.38 | $12.31 | $11.71 | $11.91 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .54 | .51 | .52 | .52 | .54 |
| Net realized and unrealized gain (loss) | .66 | (.22) | .14 | .73 | .02 |
| Total from investment operations | 1.20 | .29 | .66 | 1.25 | .56 |
| Distributions from net investment income | (.54) | (.48) | (.51) | (.51) | (.55) |
| Distributions from net realized gain | (.21) | (.13) | (.08) | (.14) | (.21) |
| Total distributions | (.75) | (.62)B | (.59) | (.65) | (.76) |
| Redemption fees added to paid in capitalA | – | –C | –C | –C | –C |
| Net asset value, end of period | $12.50 | $12.05 | $12.38 | $12.31 | $11.71 |
| Total ReturnD | 10.47% | 2.40% | 5.60% | 11.29% | 4.84% |
| Ratios to Average Net AssetsE,F | |||||
| Expenses before reductions | .75% | .75% | .78% | .82% | .83% |
| Expenses net of fee waivers, if any | .75% | .75% | .78% | .81% | .82% |
| Expenses net of all reductions | .75% | .75% | .77% | .81% | .82% |
| Net investment income (loss) | 4.55% | 4.24% | 4.33% | 4.51% | 4.61% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $2,691,820 | $2,531,397 | $2,630,901 | $2,719,387 | $2,561,268 |
| Portfolio turnover rateG | 17% | 27% | 22% | 26% | 19% |
A Calculated based on average shares outstanding during the period.
B Total distributions of $.62 per share is comprised of distributions from net investment income of $.484 and distributions from net realized gain of $.132 per share.
C Amount represents less than $.005 per share.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
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 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.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Real Estate Income Fund Class I
| Years ended July 31, | 2019 | 2018 | 2017 | 2016 | 2015 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $12.01 | $12.34 | $12.27 | $11.68 | $11.88 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .54 | .51 | .52 | .52 | .55 |
| Net realized and unrealized gain (loss) | .65 | (.22) | .14 | .73 | .02 |
| Total from investment operations | 1.19 | .29 | .66 | 1.25 | .57 |
| Distributions from net investment income | (.54) | (.49) | (.51) | (.52) | (.55) |
| Distributions from net realized gain | (.21) | (.13) | (.08) | (.14) | (.21) |
| Total distributions | (.75) | (.62) | (.59) | (.66) | (.77)B |
| Redemption fees added to paid in capitalA | – | –C | –C | –C | –C |
| Net asset value, end of period | $12.45 | $12.01 | $12.34 | $12.27 | $11.68 |
| Total ReturnD | 10.43% | 2.41% | 5.66% | 11.30% | 4.92% |
| Ratios to Average Net AssetsE,F | |||||
| Expenses before reductions | .75% | .75% | .76% | .77% | .77% |
| Expenses net of fee waivers, if any | .74% | .75% | .76% | .77% | .77% |
| Expenses net of all reductions | .74% | .75% | .76% | .76% | .77% |
| Net investment income (loss) | 4.55% | 4.25% | 4.34% | 4.56% | 4.66% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $2,386,308 | $2,142,260 | $1,951,293 | $1,239,950 | $913,475 |
| Portfolio turnover rateG | 17% | 27% | 22% | 26% | 19% |
A Calculated based on average shares outstanding during the period.
B Total distributions of $.77 per share is comprised of distributions from net investment income of $.554 and distributions from net realized gain of $.212 per share.
C Amount represents less than $.005 per share.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
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 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.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Real Estate Income Fund Class Z
| Year ended July 31, | 2019 A |
| Selected Per–Share Data | |
| Net asset value, beginning of period | $11.74 |
| Income from Investment Operations | |
| Net investment income (loss)B | .47 |
| Net realized and unrealized gain (loss) | .67 |
| Total from investment operations | 1.14 |
| Distributions from net investment income | (.42) |
| Distributions from net realized gain | (.02) |
| Total distributions | (.43)C |
| Net asset value, end of period | $12.45 |
| Total ReturnD,E | 10.00% |
| Ratios to Average Net AssetsF,G | |
| Expenses before reductions | .62%H |
| Expenses net of fee waivers, if any | .62%H |
| Expenses net of all reductions | .62%H |
| Net investment income (loss) | 4.71%H |
| Supplemental Data | |
| Net assets, end of period (000 omitted) | $467,324 |
| Portfolio turnover rateI | 17% |
A For the period October 2, 2018 (commencement of sale of shares) to July 31, 2019.
B Calculated based on average shares outstanding during the period.
C Total distributions of $.43 per share is comprised of distributions from net investment income of $.416 and distributions from net realized gain of $.017 per share.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
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 Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended July 31, 2019
1. Organization.
Fidelity Real Estate Income Fund (the Fund) is a fund of Fidelity Securities Fund (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund commenced sale of Class Z shares on October 2, 2018. The Fund offers Class A, Class M, Class C, Real Estate Income, Class I and Class Z shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Effective March 1, 2019, Class C shares will automatically convert to Class A shares after a holding period of ten years from the initial date of purchase, with certain exceptions.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date ranged from less than .005% to .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investments Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. Corporate bonds, bank loan obligations and preferred securities are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. Asset backed securities, collateralized mortgage obligations and commercial mortgage securities are valued by pricing vendors who utilize matrix pricing which considers prepayment speed assumptions, attributes of the collateral, yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of July 31, 2019 is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. For certain lower credit quality securitized assets that have contractual cash flows (for example, asset backed securities, collateralized mortgage obligations and commercial mortgage-backed securities), changes in estimated cash flows are periodically evaluated and the estimated yield is adjusted on a prospective basis, resulting in increases or decreases to Interest Income in the accompanying Statement of Operations. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain. Debt obligations may be placed on non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivables when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is reasonably assured.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. As of July 31, 2019, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), market discount, equity-debt classifications, certain conversion ratio adjustments, partnerships and losses deferred due to wash sales.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
| Gross unrealized appreciation | $640,564,070 |
| Gross unrealized depreciation | (155,039,324) |
| Net unrealized appreciation (depreciation) | $485,524,746 |
| Tax Cost | $5,641,364,576 |
The tax-based components of distributable earnings as of period end were as follows:
| Undistributed ordinary income | $58,099,738 |
| Undistributed long-term capital gain | $51,032,292 |
| Net unrealized appreciation (depreciation) on securities and other investments | $485,524,690 |
The tax character of distributions paid was as follows:
| July 31, 2019 | July 31, 2018 | |
| Ordinary Income | $250,774,684 | $ 218,315,072 |
| Long-term Capital Gains | 89,265,206 | 49,446,710 |
| Total | $340,039,890 | $ 267,761,782 |
Delayed Delivery Transactions and When-Issued Securities. During the period, the Fund transacted in securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. The securities purchased on a delayed delivery or when-issued basis are identified as such in the Fund's Schedule of Investments. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
Loans and Other Direct Debt Instruments. The Fund invests in direct debt instruments which are interests in amounts owed to lenders by corporate or other borrowers. These instruments may be in the form of loans, trade claims or other receivables and may include standby financing commitments such as revolving credit facilities that obligate the Fund to supply additional cash to the borrower on demand. Loans may be acquired through assignment or participation. The Fund did not have any unfunded loan commitments, which are contractual obligations for future funding, at period end.
New Rule Issuance. During August 2018, the U.S. Securities and Exchange Commission issued Final Rule Release No. 33-10532, Disclosure Update and Simplification. This Final Rule includes amendments specific to registered investment companies that are intended to eliminate overlap in disclosure requirements between Regulation S-X and GAAP. In accordance with these amendments, certain line-items in the Fund's financial statements have been combined or removed for the current period as outlined in the table below.
| Financial Statement | Current Line-Item Presentation (As Applicable) | Prior Line-Item Presentation (As Applicable) |
| Statement of Assets and Liabilities | Total distributable earnings (loss) | Undistributed/Distributions in excess of/Accumulated net investment income (loss) Accumulated/Undistributed net realized gain (loss) Net unrealized appreciation (depreciation) |
| Statement of Changes in Net Assets | N/A - removed | Undistributed/Distributions in excess of/Accumulated net investment income (loss) end of period |
| Statement of Changes in Net Assets | Distributions to shareholders | Distributions to shareholders from net investment income Distributions to shareholders from net realized gain |
| Distributions to Shareholders Note to Financial Statements | Distributions to shareholders | Distributions to shareholders from net investment income Distributions to shareholders from net realized gain |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and U.S. government securities, aggregated $1,356,610,975 and $864,099,457, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .24% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annual management fee rate was .54% 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 the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution Fee | Service Fee | Total Fees | Retained by FDC | |
| Class A | -% | .25% | $739,818 | $27,171 |
| Class M | -% | .25% | 139,955 | 229 |
| Class C | .75% | .25% | 2,151,048 | 176,559 |
| $3,030,821 | $203,959 |
Sales Load. FDC may receive a front-end sales charge of up to 4.00% for selling Class A shares and Class M 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 M and Class C redemptions. The deferred sales charges are 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class M shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained by FDC | |
| Class A | $30,899 |
| Class M | 8,533 |
| Class C(a) | 13,752 |
| $53,184 |
(a) When Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund, except for Class Z. FIIOC receives an asset-based fee of Class Z's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
| Amount | % of Class-Level Average Net Assets | |
| Class A | $564,328 | .19 |
| Class M | 120,727 | .22 |
| Class C | 403,479 | .19 |
| Real Estate Income | 4,702,917 | .18 |
| Class I | 3,800,752 | .17 |
| Class Z | 82,591 | .05(a) |
| $9,674,794 |
(a) Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Prior to April 1, 2019, FSC had a separate agreement with the Fund for administration of the security lending program, based on the number and duration of lending transactions. For the period, the total fees paid for accounting and administration of securities lending were equivalent to an annual rate of .02%.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $24,830 for the period.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $14,763 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. For equity securities, lending agents are used, including National Financial Services (NFS), an affiliate of the Fund. Pursuant to a securities lending agreement, NFS will receive a fee, which is capped at 9.9% of daily lending revenue, for its services as lending agent. The Fund may lend securities to certain qualified borrowers, including NFS. 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. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. At period end, there were no security loans outstanding with NFS, as affiliated borrower. 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 $15,567 from securities loaned to NFS, as affiliated borrower.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $28,575 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $14,804.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $41,668 and a portion of class-level operating expenses as follows:
| Amount | |
| Class A | $836 |
| Class M | 161 |
| Class C | 622 |
| Real Estate Income | 7,540 |
| Class I | 6,325 |
| Class Z | 578 |
| $16,062 |
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Year ended July 31, 2019(a) | Year ended July 31, 2018 | |
| Distributions to shareholders | ||
| Class A | $17,756,264 | $– |
| Class M | 3,318,773 | – |
| Class C | 11,711,511 | – |
| Real Estate Income | 164,869,904 | – |
| Class I | 135,048,536 | – |
| Class Z | 7,334,902 | – |
| Total | $340,039,890 | $ - |
| From net investment income | ||
| Class A | $– | $12,349,133 |
| Class M | – | 2,255,950 |
| Class C | – | 8,342,624 |
| Real Estate Income | – | 103,116,422 |
| Class I | – | 83,587,494 |
| Total | $– | $209,651,623 |
| From net realized gain | ||
| Class A | $– | $3,718,313 |
| Class M | – | 680,353 |
| Class C | – | 3,070,508 |
| Real Estate Income | – | 28,258,214 |
| Class I | – | 22,382,771 |
| Total | $– | $58,110,159 |
(a) Distributions for Class Z are for the period October 2, 2018 (commencement of sale of shares) to July 31, 2019.
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
| Shares | Shares | Dollars | Dollars | |
| Year ended July 31, 2019(a) | Year ended July 31, 2018 | Year ended July 31, 2019(a) | Year ended July 31, 2018 | |
| Class A | ||||
| Shares sold | 7,652,744 | 6,036,517 | $91,491,023 | $71,765,863 |
| Reinvestment of distributions | 1,474,957 | 1,301,260 | 17,330,478 | 15,605,254 |
| Shares redeemed | (7,793,544) | (11,347,678) | (92,014,816) | (134,310,067) |
| Net increase (decrease) | 1,334,157 | (4,009,901) | $16,806,685 | $(46,938,950) |
| Class M | ||||
| Shares sold | 1,028,225 | 733,876 | $12,240,983 | $8,765,829 |
| Reinvestment of distributions | 277,847 | 238,619 | 3,265,577 | 2,863,295 |
| Shares redeemed | (1,038,297) | (1,576,898) | (12,307,088) | (18,688,302) |
| Net increase (decrease) | 267,775 | (604,403) | $3,199,472 | $(7,059,178) |
| Class C | ||||
| Shares sold | 2,842,876 | 2,391,083 | $33,441,407 | $28,308,215 |
| Reinvestment of distributions | 940,228 | 897,945 | 10,920,406 | 10,683,017 |
| Shares redeemed | (5,865,438) | (7,673,573) | (68,911,422) | (89,721,727) |
| Net increase (decrease) | (2,082,334) | (4,384,545) | $(24,549,609) | $(50,730,495) |
| Real Estate Income | ||||
| Shares sold | 73,051,353 | 43,494,857 | $873,951,868 | $518,900,815 |
| Reinvestment of distributions | 12,299,627 | 9,523,043 | 145,249,096 | 114,640,546 |
| Shares redeemed | (80,067,017) | (55,394,813) | (959,494,113) | (656,921,503) |
| Net increase (decrease) | 5,283,963 | (2,376,913) | $59,706,851 | $(23,380,142) |
| Class I | ||||
| Shares sold | 77,184,509 | 81,604,369 | $918,900,015 | $971,878,458 |
| Reinvestment of distributions | 9,707,377 | 7,132,431 | 114,247,360 | 85,529,395 |
| Shares redeemed | (73,658,363) | (68,424,382) | (875,126,254) | (806,874,884) |
| Net increase (decrease) | 13,233,523 | 20,312,418 | $158,021,121 | $250,532,969 |
| Class Z | ||||
| Shares sold | 39,008,440 | – | $465,579,262 | $– |
| Reinvestment of distributions | 397,454 | – | 4,775,264 | – |
| Shares redeemed | (1,874,977) | – | (22,220,303) | – |
| Net increase (decrease) | 37,530,917 | – | $448,134,223 | $– |
(a) Share transactions for Class Z are for the period October 2, 2018 (commencement of sale of shares) to July 31, 2019.
11. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Securities Fund and Shareholders of Fidelity Real Estate Income Fund:
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statement of assets and liabilities of Real Estate Income Fund (the "Fund"), a fund of Fidelity Securities Fund, including the schedule of investments, as of July 31, 2019, the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of July 31, 2019, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund's financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of July 31, 2019, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/ Deloitte & Touche LLP
Boston, Massachusetts
September 13, 2019
We have served as the auditor of one or more of the Fidelity investment companies since 1999.
Trustees and Officers
The Trustees, Members of the Advisory Board (if any), and officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Except for Jonathan Chiel, each of the Trustees oversees 298 funds. Mr. Chiel oversees 170 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the fund is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund's Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544 if you’re an individual investing directly with Fidelity, call 1-800-835-5092 if you’re a plan sponsor or participant with Fidelity as your recordkeeper or call 1-877-208-0098 on institutional accounts or if you’re an advisor or invest through one.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Board Structure and Oversight Function. James C. Curvey is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Ned C. Lautenbach serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and other equity funds. The asset allocation funds may invest in Fidelity® funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Jonathan Chiel (1957)
Year of Election or Appointment: 2016
Trustee
Mr. Chiel also serves as Trustee of other Fidelity® funds. Mr. Chiel is Executive Vice President and General Counsel for FMR LLC (diversified financial services company, 2012-present). Previously, Mr. Chiel served as general counsel (2004-2012) and senior vice president and deputy general counsel (2000-2004) for John Hancock Financial Services; a partner with Choate, Hall & Stewart (1996-2000) (law firm); and an Assistant United States Attorney for the United States Attorney’s Office of the District of Massachusetts (1986-95), including Chief of the Criminal Division (1993-1995). Mr. Chiel is a director on the boards of the Boston Bar Foundation and the Maimonides School.
James C. Curvey (1935)
Year of Election or Appointment: 2007
Trustee
Chairman of the Board of Trustees
Mr. Curvey also serves as Trustee of other Fidelity® funds. Mr. Curvey is Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey is an Overseer Emeritus for the Boston Symphony Orchestra, a Director of Artis-Naples, and a Trustee of Brewster Academy in Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-2018), Director of Fidelity Investments Money Management, Inc. (investment adviser firm, 2009-2014) and a Director of FMR and FMR Co., Inc. (investment adviser firms, 2007-2014).
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), as a member of the Independent Directors Council (IDC) Governing Council (2010-2015), and as a member of the Board of Directors for The Brookville Center for Children’s Services, Inc. (2009-2017). Mr. Dirks is a member of the Finance Committee (2016-present) and Board of Directors (2017-present) and is Treasurer (2018-present) of the Asolo Repertory Theatre.
Donald F. Donahue (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Donahue also serves as a Trustee of other Fidelity® funds. Mr. Donahue is President and Chief Executive Officer of Miranda Partners, LLC (risk consulting for the financial services industry, 2012-present). Previously, Mr. Donahue served as a Member of the Advisory Board of certain Fidelity® funds (2015-2018) and Chief Executive Officer (2006-2012), Chief Operating Officer (2003-2006), and Managing Director, Customer Marketing and Development (1999-2003) of The Depository Trust & Clearing Corporation (financial markets infrastructure). Mr. Donahue serves as a Member (2007-present) and Co-Chairman (2016-present) of the Board of Directors of United Way of New York, Member of the Board of Directors of NYC Leadership Academy (2012-present) and Member of the Board of Advisors of Ripple Labs, Inc. (financial services, 2015-present). He also served as Chairman (2010-2012) and Member of the Board of Directors (2012-2013) of Omgeo, LLC (financial services), Treasurer of United Way of New York (2012-2016), and Member of the Board of Directors of XBRL US (financial services non-profit, 2009-2012) and the International Securities Services Association (2009-2012).
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2014-2017) and a member (2010-2017) of the Board of Directors of Dave & Buster’s Entertainment, Inc. (restaurant and entertainment complexes), as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association, and as a member of the Board of Directors for The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), Earth Fare, Inc. (retail grocery, 2010-2014), and The Western Union Company (global money transfer, 2006-2011).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as Chair (2018-present) and Member (2013-present) of the Board of Governors, State University System of Florida and is a member of the Council on Foreign Relations (1994-present). He is also a member and has most recently served as Chairman of the Board of Directors of Artis-Naples (2012-present). Previously, Mr. Lautenbach served as a member and then Lead Director of the Board of Directors of Eaton Corporation (diversified industrial, 1997-2016). He was also a Partner and Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007). In addition, Mr. Lautenbach also had a 30-year career with IBM (technology company) during which time he served as Senior Vice President and a member of the Corporate Executive Committee (1968-1998).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-2018).
Cornelia M. Small (1944)
Year of Election or Appointment: 2005
Trustee
Ms. Small also serves as Trustee of other Fidelity® funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.
Garnett A. Smith (1947)
Year of Election or Appointment: 2018
Trustee
Mr. Smith also serves as Trustee of other Fidelity® funds. Prior to Mr. Smith's retirement, he served as Chairman and Chief Executive Officer of Inbrand Corp. (manufacturer of personal absorbent products, 1990-1997). He also served as President (1986-1990) of Inbrand Corp. Prior to his employment with Inbrand Corp., he was employed by a retail fabric chain and North Carolina National Bank. In addition, Mr. Smith served as a Member of the Advisory Board of certain Fidelity® funds (2012-2013) and as a board member of the Jackson Hole Land Trust (2009-2012).
David M. Thomas (1949)
Year of Election or Appointment: 2008
Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present) and as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), a Director of Fortune Brands, Inc. (consumer products, 2000-2011), and a member of the Board of Trustees of the University of Florida (2013-2018).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Advisory Board Members and Officers:
Correspondence intended for a Member of the Advisory Board (if any) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235. Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Vicki L. Fuller (1957)
Year of Election or Appointment: 2018
Member of the Advisory Board
Ms. Fuller also serves as Member of the Advisory Board of other Fidelity® funds. Ms. Fuller serves as a member of the Board of Directors, Audit Committee, and Nominating and Governance Committee of The Williams Companies, Inc. (natural gas infrastructure, 2018-present). Previously, Ms. Fuller served as the Chief Investment Officer of the New York State Common Retirement Fund (2012-2018) and held a variety of positions at AllianceBernstein L.P. (global asset management, 1985-2012), including Managing Director (2006-2012) and Senior Vice President and Senior Portfolio Manager (2001-2006).
Peter S. Lynch (1944)
Year of Election or Appointment: 2003
Member of the Advisory Board
Mr. Lynch also serves as Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of FMR (investment adviser firm) and FMR Co., Inc. (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).
Michael E. Wiley (1950)
Year of Election or Appointment: 2018
Member of the Advisory Board
Mr. Wiley also serves as Trustee or Member of the Advisory Board of other Fidelity® funds. Mr. Wiley serves as a Director of High Point Resources (exploration and production, 2005-present). Previously, Mr. Wiley served as a Director of Andeavor Corporation (independent oil refiner and marketer, 2005-2018), a Director of Andeavor Logistics LP (natural resources logistics, 2015-2018), a Director of Post Oak Bank (privately-held bank, 2004-2018), a Director of Asia Pacific Exploration Consolidated (international oil and gas exploration and production, 2008-2013), a member of the Board of Trustees of the University of Tulsa (2000-2006; 2007-2010), a Senior Energy Advisor of Katzenbach Partners, LLC (consulting, 2006-2007), an Advisory Director of Riverstone Holdings (private investment), a Director of Spinnaker Exploration Company (exploration and production, 2001-2005) and Chairman, President, and CEO of Baker Hughes, Inc. (oilfield services, 2000-2004).
Elizabeth Paige Baumann (1968)
Year of Election or Appointment: 2017
Anti-Money Laundering (AML) Officer
Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer (2012-present) and Senior Vice President (2014-present) of FMR LLC (diversified financial services company) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as AML Officer of the funds (2012-2016), and Vice President (2007-2014) and Deputy Anti-Money Laundering Officer (2007-2012) of FMR LLC.
Craig S. Brown (1977)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Brown also serves as Assistant Treasurer of other funds. Mr. Brown is an employee of Fidelity Investments (2013-present).
John J. Burke III (1964)
Year of Election or Appointment: 2018
Chief Financial Officer
Mr. Burke also serves as Chief Financial Officer of other funds. Mr. Burke serves as Head of Investment Operations for Fidelity Fund and Investment Operations (2018-present) and is an employee of Fidelity Investments (1998-present). Previously Mr. Burke served as head of Asset Management Investment Operations (2012-2018).
William C. Coffey (1969)
Year of Election or Appointment: 2018
Secretary and Chief Legal Officer (CLO)
Mr. Coffey also serves as Secretary and CLO of other funds. Mr. Coffey serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2018-present); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2018-present); and CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2018-present). He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Assistant Secretary of certain funds (2009-2018) and as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Timothy M. Cohen (1969)
Year of Election or Appointment: 2018
Vice President
Mr. Cohen also serves as Vice President of other funds. Mr. Cohen serves as Executive Vice President of Fidelity SelectCo, LLC (2019-present), Co-Head of Equity (2018-present), a Director of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present), and is an employee of Fidelity Investments. Previously, Mr. Cohen served as Head of Global Equity Research (2016-2018), Chief Investment Officer - Equity and a Director of Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2013-2015) and as a Director of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2017).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds. Mr. Davis serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present), and is an employee of Fidelity Investments (2008-present). Previously, Mr. Deberghes served as President and Treasurer of certain Fidelity® funds (2013-2018). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). Previously, Mr. Deberghes served in other fund officer roles.
Laura M. Del Prato (1964)
Year of Election or Appointment: 2018
Assistant Treasurer
Ms. Del Prato also serves as an officer of other funds. Ms. Del Prato is an employee of Fidelity Investments (2017-present). Prior to joining Fidelity Investments, Ms. Del Prato served as a Managing Director and Treasurer of the JPMorgan Mutual Funds (2014-2017). Prior to JPMorgan, Ms. Del Prato served as a partner at Cohen Fund Audit Services (accounting firm, 2012-2013) and KPMG LLP (accounting firm, 2004-2012).
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2005-present). Previously, Mr. Hogan served as Assistant Treasurer of certain Fidelity® funds (2016-2018).
Pamela R. Holding (1964)
Year of Election or Appointment: 2018
Vice President
Ms. Holding also serves as Vice President of other funds. Ms. Holding serves as Executive Vice President of Fidelity SelectCo, LLC (2019-present), Co-Head of Equity (2018-present) and is an employee of Fidelity Investments (2013-present). Previously, Ms. Holding served as Chief Investment Officer of Fidelity Institutional Asset Management (2013-2018).
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight, serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. Ms. Smith serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), is an employee of Fidelity Investments (2009-present), and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Assistant Treasurer (2013-2018) and Deputy Treasurer (2013-2016) of certain Fidelity® funds.
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
Jim Wegmann (1979)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Wegmann also serves as Assistant Treasurer of other funds. Mr. Wegmann is an employee of Fidelity Investments (2011-present).
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 (February 1, 2019 to July 31, 2019).
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.
| Annualized Expense Ratio-A | Beginning Account Value February 1, 2019 | Ending Account Value July 31, 2019 | Expenses Paid During Period-B February 1, 2019 to July 31, 2019 | |
| Class A | 1.01% | |||
| Actual | $1,000.00 | $1,068.90 | $5.18 | |
| Hypothetical-C | $1,000.00 | $1,019.79 | $5.06 | |
| Class M | 1.03% | |||
| Actual | $1,000.00 | $1,068.70 | $5.28 | |
| Hypothetical-C | $1,000.00 | $1,019.69 | $5.16 | |
| Class C | 1.76% | |||
| Actual | $1,000.00 | $1,064.60 | $9.01 | |
| Hypothetical-C | $1,000.00 | $1,016.07 | $8.80 | |
| Real Estate Income | .74% | |||
| Actual | $1,000.00 | $1,070.40 | $3.80 | |
| Hypothetical-C | $1,000.00 | $1,021.12 | $3.71 | |
| Class I | .74% | |||
| Actual | $1,000.00 | $1,070.70 | $3.80 | |
| Hypothetical-C | $1,000.00 | $1,021.12 | $3.71 | |
| Class Z | .61% | |||
| Actual | $1,000.00 | $1,071.20 | $3.13 | |
| Hypothetical-C | $1,000.00 | $1,021.77 | $3.06 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
C 5% return per year before expenses
Distributions (Unaudited)
The Board of Trustees of Fidelity Real Estate Income Fund voted to pay to shareholders of record at the opening of business on record date, the following distributions per share derived from capital gains realized from sales of portfolio securities, and dividends derived from net investment income:
| Pay Date | Record Date | Dividends | Capital Gains | |
| Fidelity Real Estate Income Fund | ||||
| Class A | 09/09/19 | 09/06/19 | $0.142 | $0.106 |
| Class M | 09/09/19 | 09/06/19 | $0.141 | $0.106 |
| Class C | 09/09/19 | 09/06/19 | $0.118 | $0.106 |
| Fidelity Real Estate Income | 09/09/19 | 09/06/19 | $0.150 | $0.106 |
| Class I | 09/09/19 | 09/06/19 | $0.150 | $0.106 |
| Class Z | 09/09/19 | 09/06/19 | $0.154 | $0.106 |
The fund hereby designates as a capital gain dividend with respect to the taxable year ended July 31, 2019, $61,680,841, or, if subsequently determined to be different, the net capital gain of such year.
A total of 0.80% of the dividends distributed during the fiscal year was derived from interest on U.S. Government securities which is generally exempt from state income tax.
The fund designates $79,138,427 of distributions paid during the period January 1, 2019 to July 31, 2019 as qualifying to be taxed as interest-related dividends for nonresident alien shareholders.
Class A, Class M, Class C, Fidelity Real Estate Income, Class I, and Class Z designate 51% of the dividends distributed during the fiscal year as a section 199A dividend.
The fund will notify shareholders in January 2020 of amounts for use in preparing 2019 income tax returns.
REI-ANN-0919
1.788862.116
Fidelity® Small Cap Growth Fund Annual Report July 31, 2019 Includes Fidelity and Fidelity Advisor share classes |
|
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of a fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a financial advisor, broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from a fund electronically, by contacting your financial intermediary. For Fidelity customers, visit Fidelity's web site or call Fidelity using the contact information listed below.
You may elect to receive all future reports in paper free of charge. If you wish to continue receiving paper copies of your shareholder reports, you may contact your financial intermediary or, if you are a Fidelity customer, visit Fidelity’s website, or call Fidelity at the applicable toll-free number listed below. Your election to receive reports in paper will apply to all funds held with the fund complex/your financial intermediary.
| Account Type | Website | Phone Number |
| Brokerage, Mutual Fund, or Annuity Contracts: | fidelity.com/mailpreferences | 1-800-343-3548 |
| Employer Provided Retirement Accounts: | netbenefits.fidelity.com/preferences (choose 'no' under Required Disclosures to continue to print) | 1-800-343-0860 |
| Advisor Sold Accounts Serviced Through Your Financial Intermediary: | Contact Your Financial Intermediary | Your Financial Intermediary's phone number |
| Advisor Sold Accounts Serviced by Fidelity: | institutional.fidelity.com | 1-877-208-0098 |
Contents
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-800-544-8544 if you’re an individual investing directly with Fidelity, call 1-800-835-5092 if you’re a plan sponsor or participant with Fidelity as your recordkeeper or call 1-877-208-0098 on institutional accounts or if you’re an advisor or invest through one 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. © 2019 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT. Forms N-PORT are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-PORT 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.institutional.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.
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
| For the periods ended July 31, 2019 | Past 1 year | Past 5 years | Past 10 years |
| Class A (incl. 5.75% sales charge) | (0.21)% | 13.38% | 15.01% |
| Class M (incl. 3.50% sales charge) | 1.90% | 13.61% | 14.98% |
| Class C (incl. contingent deferred sales charge) | 4.13% | 13.85% | 14.81% |
| Fidelity® Small Cap Growth Fund | 6.17% | 15.06% | 16.03% |
| Class I | 6.18% | 15.06% | 16.03% |
| Class Z | 6.29% | 15.13% | 16.07% |
Class C shares' contingent deferred sales charges included in the past one year, past five years and past ten years total return figures are 1%, 0% and 0%, respectively.
The initial offering of Class Z shares took place on February 1, 2017. Returns prior to February 1, 2017, are those of Class I.
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity® Small Cap Growth Fund, a class of the fund, on July 31, 2009.
The chart shows how the value of your investment would have changed, and also shows how the Russell 2000® Growth Index performed over the same period.
| Period Ending Values | ||
| $44,232 | Fidelity® Small Cap Growth Fund | |
| $36,005 | Russell 2000® Growth Index | |
Management's Discussion of Fund Performance
Market Recap: The U.S. equity bellwether S&P 500® index gained 7.99% for the 12 months ending July 31, 2019, beginning the new year on a high note after enduring a historically volatile final quarter of 2018. Upbeat company earnings/outlooks and signs the Federal Reserve may pause on rates boosted stocks to an all-time high on April 30. In May, however, volatility spiked and stocks returned -6.35% for the month amid the Fed’s decision to hold interest rates steady and signal that it had little appetite to adjust them any time soon, as well as retaliatory tariffs imposed on the U.S. by China. The downtrend was similar to late 2018, when many investors fled from risk assets on elevated concerns about future economic growth, global trade and tighter monetary policy. The bull market roared back in June, with the S&P 500® rising 7.05%, and recorded a series of all-time highs in a productive July (+1.44%). For the full 12 months, growth stocks outpaced value, while large-caps handily bested small-caps. By sector, information technology (+19%) led the way, boosted by continued strength in software & services (+26%), the market’s largest industry segment. Three defensive groups also stood out – real estate (+18%), utilities (+17%) and consumer staples (+15%) – followed by consumer discretionary (+10%) and communication services (+8%). In contrast, energy (-16%) was by far the weakest sector. Other notable laggards included materials (0%), financials (+3%), industrials (+4%) and health care (+4%).Comments from Portfolio Manager Patrick Venanzi: For the fiscal year, the fund's shares classes gained roughly 5% to 6% (excluding sales charges, if applicable), notably outpacing the -1.22% result of the Russell 2000® Growth Index. Security selection overwhelmingly drove the fund’s outperformance of the benchmark the past 12 months, with sector positioning also contributing, but to a much lesser degree. Investment choices within among health care stocks helped by far the most. Leading the way was the fund’s non-index stake in Insulet (+48%), a maker of wearable insulin infusion pumps for diabetics. The stock benefited from rapid adoption of its tubeless Omnipod patch pumps, which are lower-profile and more convenient than traditional insulin pumps. Masimo (+60%) – another out-of-benchmark name and a manufacturer of non-invasive patient-monitoring technologies – as well as an overweight position in Array Biopharma (219%), a cancer drug developer (no longer held at period end), were also major relative contributors stemming from the health care sector. Conversely, the portfolio’s non-index position in longtime fund holding 2U (-83%) was the biggest relative detractor this period. The firm offers cloud-based online campuses and learning platforms for nonprofit colleges and universities. Despite strong quarterly financial results and efforts to step up its multiyear program launch targets, the stock fell along with other software companies in December, while two of their more mature programs saw enrollment decline a bit. Lastly, an overweighting in weight-loss management company Weight Watchers, which was sold prior to July 31, also weighed on the fund’s relative result.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Investment Summary (Unaudited)
Top Ten Stocks as of July 31, 2019
| % of fund's net assets | |
| Verra Mobility Corp. | 2.1 |
| Insulet Corp. | 1.7 |
| CarGurus, Inc. Class A | 1.6 |
| Grand Canyon Education, Inc. | 1.6 |
| Integer Holdings Corp. | 1.5 |
| Compass, Inc. Series E | 1.3 |
| Generac Holdings, Inc. | 1.3 |
| Churchill Downs, Inc. | 1.2 |
| Cardlytics, Inc. | 1.2 |
| First Cash Financial Services, Inc. | 1.2 |
| 14.7 |
Top Five Market Sectors as of July 31, 2019
| % of fund's net assets | |
| Health Care | 25.6 |
| Information Technology | 20.5 |
| Industrials | 14.8 |
| Consumer Discretionary | 14.6 |
| Financials | 7.9 |
Asset Allocation (% of fund's net assets)
| As of July 31, 2019* | ||
| Stocks | 96.4% | |
| Convertible Securities | 1.4% | |
| Short-Term Investments and Net Other Assets (Liabilities) | 2.2% | |
* Foreign investments - 10.8%
Schedule of Investments July 31, 2019
Showing Percentage of Net Assets
| Common Stocks - 96.4% | |||
| Shares | Value | ||
| COMMUNICATION SERVICES - 5.4% | |||
| Diversified Telecommunication Services - 0.6% | |||
| Bandwidth, Inc. (a) | 81,039 | $6,037,406 | |
| Iridium Communications, Inc. (a) | 664,531 | 16,905,669 | |
| 22,943,075 | |||
| Entertainment - 1.0% | |||
| Gaia, Inc. Class A (a)(b) | 1,188,217 | 6,867,894 | |
| World Wrestling Entertainment, Inc. Class A (b) | 465,123 | 33,851,652 | |
| 40,719,546 | |||
| Interactive Media & Services - 1.8% | |||
| CarGurus, Inc. Class A (a) | 1,832,186 | 68,285,572 | |
| Eventbrite, Inc. | 409,631 | 7,246,372 | |
| 75,531,944 | |||
| Media - 1.6% | |||
| Gray Television, Inc. (a) | 1,162,692 | 20,637,783 | |
| Nexstar Broadcasting Group, Inc. Class A | 242,878 | 24,717,694 | |
| Tegna, Inc. | 732,048 | 11,119,809 | |
| The New York Times Co. Class A | 314,623 | 11,225,749 | |
| 67,701,035 | |||
| Wireless Telecommunication Services - 0.4% | |||
| Boingo Wireless, Inc. (a) | 960,934 | 14,433,229 | |
| TOTAL COMMUNICATION SERVICES | 221,328,829 | ||
| CONSUMER DISCRETIONARY - 14.6% | |||
| Diversified Consumer Services - 5.4% | |||
| Afya Ltd. | 406,693 | 11,761,562 | |
| Arco Platform Ltd. Class A | 882,327 | 38,945,914 | |
| Bright Horizons Family Solutions, Inc. (a) | 166,426 | 25,308,402 | |
| Grand Canyon Education, Inc. (a) | 591,582 | 64,346,374 | |
| Laureate Education, Inc. Class A (a) | 1,833,441 | 30,050,098 | |
| ServiceMaster Global Holdings, Inc. (a) | 639,624 | 34,047,186 | |
| Strategic Education, Inc. | 109,283 | 19,451,281 | |
| 223,910,817 | |||
| Hotels, Restaurants & Leisure - 2.7% | |||
| Churchill Downs, Inc. | 432,043 | 51,693,945 | |
| Eldorado Resorts, Inc. (a)(b) | 342,432 | 15,450,532 | |
| Planet Fitness, Inc. (a) | 417,456 | 32,837,089 | |
| SeaWorld Entertainment, Inc. (a) | 382,442 | 11,691,252 | |
| 111,672,818 | |||
| Household Durables - 2.0% | |||
| Helen of Troy Ltd. (a) | 324,373 | 48,098,028 | |
| Skyline Champion Corp. (a) | 1,123,039 | 32,006,612 | |
| 80,104,640 | |||
| Internet & Direct Marketing Retail - 1.0% | |||
| Etsy, Inc. (a) | 593,216 | 39,757,336 | |
| The RealReal, Inc. | 8,483 | 208,258 | |
| 39,965,594 | |||
| Leisure Products - 0.4% | |||
| OneSpaWorld Holdings Ltd. (a)(b) | 964,895 | 15,110,256 | |
| Multiline Retail - 0.3% | |||
| Ollie's Bargain Outlet Holdings, Inc. (a) | 166,528 | 14,103,256 | |
| Specialty Retail - 1.9% | |||
| Aaron's, Inc. Class A | 260,000 | 16,393,000 | |
| Five Below, Inc. (a) | 261,631 | 30,731,177 | |
| The Children's Place Retail Stores, Inc. | 320,889 | 31,341,229 | |
| 78,465,406 | |||
| Textiles, Apparel & Luxury Goods - 0.9% | |||
| Deckers Outdoor Corp. (a) | 163,851 | 25,606,634 | |
| Revolve Group, Inc. (b) | 324,457 | 11,184,033 | |
| 36,790,667 | |||
| TOTAL CONSUMER DISCRETIONARY | 600,123,454 | ||
| CONSUMER STAPLES - 4.5% | |||
| Beverages - 0.1% | |||
| Luckin Coffee, Inc. ADR (b) | 208,487 | 5,064,149 | |
| Food & Staples Retailing - 2.4% | |||
| BJ's Wholesale Club Holdings, Inc. (a) | 1,508,093 | 35,530,671 | |
| Grocery Outlet Holding Corp. | 604,002 | 23,519,838 | |
| Performance Food Group Co. (a) | 906,576 | 39,753,358 | |
| 98,803,867 | |||
| Food Products - 1.6% | |||
| Darling International, Inc. (a) | 532,543 | 10,826,599 | |
| Freshpet, Inc. (a) | 243,300 | 10,984,995 | |
| Nomad Foods Ltd. (a) | 971,923 | 21,644,725 | |
| Post Holdings, Inc. (a) | 201,739 | 21,630,456 | |
| 65,086,775 | |||
| Household Products - 0.4% | |||
| Central Garden & Pet Co. (a) | 272,922 | 8,291,370 | |
| Central Garden & Pet Co. Class A (non-vtg.) (a) | 328,309 | 9,044,913 | |
| 17,336,283 | |||
| TOTAL CONSUMER STAPLES | 186,291,074 | ||
| ENERGY - 0.5% | |||
| Oil, Gas & Consumable Fuels - 0.5% | |||
| Kosmos Energy Ltd. | 1,572,240 | 9,449,162 | |
| PDC Energy, Inc. (a) | 289,007 | 8,303,171 | |
| Renewable Energy Group, Inc. (a) | 345,969 | 4,701,719 | |
| 22,454,052 | |||
| FINANCIALS - 7.9% | |||
| Banks - 1.2% | |||
| First Citizens Bancshares, Inc. | 73,161 | 34,167,650 | |
| Popular, Inc. | 268,823 | 15,473,452 | |
| 49,641,102 | |||
| Capital Markets - 2.6% | |||
| Apollo Global Management LLC Class A | 453,666 | 14,970,978 | |
| Hamilton Lane, Inc. Class A | 233,337 | 13,696,882 | |
| LPL Financial | 432,427 | 36,267,652 | |
| Morningstar, Inc. | 264,566 | 40,208,741 | |
| 105,144,253 | |||
| Consumer Finance - 1.2% | |||
| First Cash Financial Services, Inc. | 483,225 | 48,631,764 | |
| Diversified Financial Services - 0.3% | |||
| Cannae Holdings, Inc. (a) | 443,121 | 12,828,353 | |
| Insurance - 1.6% | |||
| eHealth, Inc. (a) | 165,237 | 17,143,339 | |
| Enstar Group Ltd. (a) | 83,338 | 14,763,327 | |
| Primerica, Inc. | 289,163 | 35,477,408 | |
| 67,384,074 | |||
| Thrifts & Mortgage Finance - 1.0% | |||
| Essent Group Ltd. | 594,966 | 27,463,631 | |
| LendingTree, Inc. (a)(b) | 41,931 | 13,524,425 | |
| 40,988,056 | |||
| TOTAL FINANCIALS | 324,617,602 | ||
| HEALTH CARE - 25.5% | |||
| Biotechnology - 9.9% | |||
| Abeona Therapeutics, Inc. (a) | 684,091 | 1,771,796 | |
| Acceleron Pharma, Inc. (a) | 452,883 | 19,772,872 | |
| Acorda Therapeutics, Inc. (a) | 330,318 | 2,289,104 | |
| Alder Biopharmaceuticals, Inc. (a)(b) | 1,023,415 | 10,356,960 | |
| Allakos, Inc. (a)(b) | 324,796 | 11,293,157 | |
| AnaptysBio, Inc. (a) | 258,661 | 13,892,682 | |
| Arena Pharmaceuticals, Inc. (a) | 265,190 | 16,622,109 | |
| Argenx SE ADR (a) | 224,236 | 31,496,189 | |
| Ascendis Pharma A/S sponsored ADR (a) | 322,267 | 37,305,628 | |
| Atara Biotherapeutics, Inc. (a) | 38,243 | 545,728 | |
| Audentes Therapeutics, Inc. (a) | 341,611 | 13,295,500 | |
| Blueprint Medicines Corp. (a) | 386,074 | 38,665,311 | |
| Crinetics Pharmaceuticals, Inc. (a) | 231,766 | 4,700,214 | |
| FibroGen, Inc. (a) | 566,883 | 26,790,891 | |
| Five Prime Therapeutics, Inc. (a) | 256,357 | 1,309,984 | |
| Global Blood Therapeutics, Inc. (a) | 482,517 | 26,441,932 | |
| Gritstone Oncology, Inc. | 584,066 | 6,132,693 | |
| Heron Therapeutics, Inc. (a) | 581,482 | 10,141,046 | |
| Iovance Biotherapeutics, Inc. (a)(b) | 578,994 | 14,237,462 | |
| Kezar Life Sciences, Inc. (a) | 272,493 | 1,534,136 | |
| Kura Oncology, Inc. (a) | 458,631 | 8,769,025 | |
| Mirati Therapeutics, Inc. (a)(b) | 164,709 | 17,426,212 | |
| Morphosys AG (a) | 111,972 | 13,548,063 | |
| Neurocrine Biosciences, Inc. (a) | 181,540 | 17,498,641 | |
| Sarepta Therapeutics, Inc. (a) | 217,059 | 32,309,232 | |
| Savara, Inc. (a) | 313,917 | 797,349 | |
| The Medicines Company (a)(b) | 328,298 | 11,766,200 | |
| TransMedics Group, Inc. (b) | 759,957 | 18,033,780 | |
| 408,743,896 | |||
| Health Care Equipment & Supplies - 8.2% | |||
| Axonics Modulation Technologies, Inc. (a)(b) | 551,419 | 20,237,077 | |
| Cerus Corp. (a) | 547,265 | 3,201,500 | |
| CONMED Corp. | 245,679 | 21,460,061 | |
| Haemonetics Corp. (a) | 198,506 | 24,233,612 | |
| Hill-Rom Holdings, Inc. | 311,470 | 33,215,161 | |
| Insulet Corp. (a) | 581,516 | 71,491,577 | |
| Integer Holdings Corp. (a) | 707,715 | 61,946,294 | |
| Integra LifeSciences Holdings Corp. (a) | 222,419 | 14,099,140 | |
| Masimo Corp. (a) | 307,996 | 48,617,169 | |
| Novocure Ltd. (a) | 323,591 | 26,929,243 | |
| Quanterix Corp. (a) | 379,439 | 11,755,020 | |
| Vapotherm, Inc. | 55,901 | 899,447 | |
| 338,085,301 | |||
| Health Care Providers & Services - 3.0% | |||
| Chemed Corp. | 77,000 | 31,215,030 | |
| G1 Therapeutics, Inc. (a) | 511,362 | 12,686,891 | |
| LHC Group, Inc. (a) | 270,135 | 34,193,688 | |
| Molina Healthcare, Inc. (a) | 334,506 | 44,415,707 | |
| 122,511,316 | |||
| Health Care Technology - 1.5% | |||
| Health Catalyst, Inc. | 58,051 | 2,568,757 | |
| HMS Holdings Corp. (a) | 908,962 | 31,722,774 | |
| Inovalon Holdings, Inc. Class A (a) | 1,837,690 | 27,565,350 | |
| 61,856,881 | |||
| Life Sciences Tools & Services - 1.4% | |||
| Bruker Corp. | 341,500 | 16,340,775 | |
| ICON PLC (a) | 260,684 | 40,711,020 | |
| 57,051,795 | |||
| Pharmaceuticals - 1.5% | |||
| GW Pharmaceuticals PLC ADR (a) | 40 | 6,492 | |
| Horizon Pharma PLC (a) | 937,554 | 23,335,719 | |
| Morphic Holding, Inc. (b) | 319,353 | 7,210,991 | |
| SCYNEXIS, Inc. warrants 6/21/21 (a) | 168,750 | 7,685 | |
| Theravance Biopharma, Inc. (a) | 393,893 | 8,212,669 | |
| Turning Point Therapeutics, Inc. | 130,052 | 5,181,272 | |
| Xeris Pharmaceuticals, Inc. (a) | 382,146 | 4,471,108 | |
| Zogenix, Inc. (a) | 255,092 | 12,287,782 | |
| 60,713,718 | |||
| TOTAL HEALTH CARE | 1,048,962,907 | ||
| INDUSTRIALS - 14.8% | |||
| Aerospace & Defense - 2.1% | |||
| HEICO Corp. Class A | 304,920 | 32,135,519 | |
| Moog, Inc. Class A | 339,555 | 27,660,150 | |
| Teledyne Technologies, Inc. (a) | 89,245 | 25,995,284 | |
| 85,790,953 | |||
| Airlines - 0.6% | |||
| SkyWest, Inc. | 436,712 | 26,512,786 | |
| Building Products - 0.6% | |||
| Armstrong World Industries, Inc. | 270,663 | 26,446,482 | |
| Commercial Services & Supplies - 0.4% | |||
| Copart, Inc. (a) | 211,773 | 16,418,761 | |
| Construction & Engineering - 2.5% | |||
| Argan, Inc. | 298,915 | 12,300,352 | |
| Dycom Industries, Inc. (a) | 529,577 | 29,211,467 | |
| Jacobs Engineering Group, Inc. | 245,217 | 20,232,855 | |
| MasTec, Inc. (a) | 772,378 | 39,638,439 | |
| 101,383,113 | |||
| Electrical Equipment - 1.3% | |||
| Generac Holdings, Inc. (a) | 764,518 | 55,274,651 | |
| Industrial Conglomerates - 0.8% | |||
| ITT, Inc. | 500,657 | 31,251,010 | |
| Machinery - 3.1% | |||
| AGCO Corp. | 298,944 | 23,018,688 | |
| Allison Transmission Holdings, Inc. | 577,058 | 26,515,815 | |
| Luxfer Holdings PLC sponsored | 781,839 | 15,496,049 | |
| Toro Co. | 216,013 | 15,730,067 | |
| Woodward, Inc. | 426,650 | 47,801,866 | |
| 128,562,485 | |||
| Marine - 0.3% | |||
| SITC International Holdings Co. Ltd. | 10,567,000 | 11,647,388 | |
| Professional Services - 2.5% | |||
| Asgn, Inc. (a) | 236,033 | 14,881,881 | |
| Exponent, Inc. | 486,541 | 33,474,021 | |
| FTI Consulting, Inc. (a) | 397,270 | 41,494,852 | |
| Insperity, Inc. | 139,736 | 14,860,924 | |
| 104,711,678 | |||
| Road & Rail - 0.6% | |||
| Genesee & Wyoming, Inc. Class A (a) | 209,332 | 22,986,747 | |
| TOTAL INDUSTRIALS | 610,986,054 | ||
| INFORMATION TECHNOLOGY - 19.2% | |||
| Communications Equipment - 0.3% | |||
| ViaSat, Inc. (a) | 151,400 | 12,352,726 | |
| Electronic Equipment & Components - 1.3% | |||
| Fabrinet (a) | 389,493 | 20,907,984 | |
| SYNNEX Corp. | 143,439 | 14,134,479 | |
| Zebra Technologies Corp. Class A (a) | 95,651 | 20,171,839 | |
| 55,214,302 | |||
| IT Services - 7.0% | |||
| Booz Allen Hamilton Holding Corp. Class A | 399,308 | 27,452,425 | |
| Elastic NV | 292,813 | 28,938,709 | |
| EPAM Systems, Inc. (a) | 104,909 | 20,330,315 | |
| Euronet Worldwide, Inc. (a) | 146,384 | 22,822,729 | |
| Interxion Holding N.V. (a) | 191,398 | 14,412,269 | |
| KBR, Inc. | 515,578 | 13,600,948 | |
| MongoDB, Inc. Class A (a) | 210,521 | 30,150,818 | |
| Okta, Inc. (a) | 216,665 | 28,346,282 | |
| Verra Mobility Corp. (a)(b) | 6,155,993 | 85,260,497 | |
| WEX, Inc. (a) | 77,591 | 16,920,269 | |
| 288,235,261 | |||
| Semiconductors & Semiconductor Equipment - 1.5% | |||
| Advanced Energy Industries, Inc. (a) | 616,278 | 35,990,635 | |
| Entegris, Inc. | 547,589 | 23,825,597 | |
| 59,816,232 | |||
| Software - 9.1% | |||
| 2U, Inc. (a)(b) | 1,212,566 | 15,520,845 | |
| Alteryx, Inc. Class A (a) | 255,992 | 30,089,300 | |
| Black Knight, Inc. (a) | 419,384 | 26,555,395 | |
| Cardlytics, Inc. (a)(b)(c) | 1,783,370 | 50,647,708 | |
| DocuSign, Inc. (a) | 288,182 | 14,904,773 | |
| Everbridge, Inc. (a) | 263,597 | 26,965,973 | |
| Five9, Inc. (a) | 291,643 | 14,398,415 | |
| HubSpot, Inc. (a) | 218,261 | 39,007,606 | |
| Lightspeed POS, Inc. (a) | 683,700 | 20,534,830 | |
| LivePerson, Inc. (a) | 329,791 | 10,945,763 | |
| Medallia, Inc. | 6,300 | 251,055 | |
| Nuance Communications, Inc. (a) | 645,399 | 10,739,439 | |
| Pluralsight, Inc. (a) | 929,878 | 28,537,956 | |
| PROS Holdings, Inc. (a) | 399,808 | 28,930,107 | |
| RingCentral, Inc. (a) | 175,918 | 24,976,838 | |
| ShotSpotter, Inc. (a)(b) | 168,539 | 6,335,381 | |
| SurveyMonkey | 661,840 | 11,231,425 | |
| Workiva, Inc. (a) | 265,074 | 15,239,104 | |
| 375,811,913 | |||
| TOTAL INFORMATION TECHNOLOGY | 791,430,434 | ||
| MATERIALS - 1.7% | |||
| Chemicals - 1.0% | |||
| Olin Corp. | 1,116,413 | 22,406,409 | |
| Orion Engineered Carbons SA | 1,070,789 | 20,858,970 | |
| 43,265,379 | |||
| Containers & Packaging - 0.7% | |||
| Aptargroup, Inc. | 144,409 | 17,476,377 | |
| Avery Dennison Corp. | 88,567 | 10,173,691 | |
| 27,650,068 | |||
| Paper & Forest Products - 0.0% | |||
| Quintis Ltd. (a)(b)(d) | 10,830,535 | 74 | |
| TOTAL MATERIALS | 70,915,521 | ||
| REAL ESTATE - 2.3% | |||
| Equity Real Estate Investment Trusts (REITs) - 2.3% | |||
| Americold Realty Trust | 945,824 | 31,713,479 | |
| Essential Properties Realty Trust, Inc. | 834,000 | 17,614,080 | |
| Store Capital Corp. | 565,796 | 19,355,881 | |
| Terreno Realty Corp. | 503,092 | 24,581,075 | |
| 93,264,515 | |||
| TOTAL COMMON STOCKS | |||
| (Cost $3,158,724,985) | 3,970,374,442 | ||
| Convertible Preferred Stocks - 1.4% | |||
| HEALTH CARE - 0.1% | |||
| Biotechnology - 0.1% | |||
| REVOLUTION Medicines, Inc. Series C (d)(e) | 1,919,534 | 3,954,240 | |
| INFORMATION TECHNOLOGY - 1.3% | |||
| Software - 1.3% | |||
| Compass, Inc. Series E (a)(d)(e) | 353,803 | 55,905,792 | |
| TOTAL CONVERTIBLE PREFERRED STOCKS | |||
| (Cost $27,828,230) | 59,860,032 | ||
| Money Market Funds - 6.2% | |||
| Fidelity Cash Central Fund 2.43% (f) | 110,622,493 | 110,644,618 | |
| Fidelity Securities Lending Cash Central Fund 2.43% (f)(g) | 144,657,409 | 144,671,875 | |
| TOTAL MONEY MARKET FUNDS | |||
| (Cost $255,316,493) | 255,316,493 | ||
| TOTAL INVESTMENT IN SECURITIES - 104.0% | |||
| (Cost $3,441,869,708) | 4,285,550,967 | ||
| NET OTHER ASSETS (LIABILITIES) - (4.0)% | (166,616,258) | ||
| NET ASSETS - 100% | $4,118,934,709 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Affiliated company
(d) Level 3 security
(e) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $59,860,032 or 1.5% of net assets.
(f) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(g) Investment made with cash collateral received from securities on loan.
Additional information on each restricted holding is as follows:
| Security | Acquisition Date | Acquisition Cost |
| Compass, Inc. Series E | 11/3/17 | $23,873,990 |
| REVOLUTION Medicines, Inc. Series C | 6/3/19 | $3,954,240 |
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
| Fund | Income earned |
| Fidelity Cash Central Fund | $1,171,789 |
| Fidelity Securities Lending Cash Central Fund | 1,464,661 |
| Total | $2,636,450 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable. Amount for Fidelity Securities Lending Cash Central Fund 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.
Other Affiliated Issuers
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows:
| Affiliate | Value, beginning of period | Purchases | Sales Proceeds(a) | Dividend Income | Realized Gain (loss) | Change in Unrealized appreciation (depreciation) | Value, end of period |
| Cardlytics, Inc. | $31,989,182 | $7,269,971 | $7,758,098 | $-- | $2,562,044 | $16,584,609 | $50,647,708 |
| Total | $31,989,182 | $7,269,971 | $7,758,098 | $-- | $2,562,044 | $16,584,609 | $50,647,708 |
(a) Includes the value of securities delivered through in-kind transactions, if applicable.
Investment Valuation
The following is a summary of the inputs used, as of July 31, 2019, 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 below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| Valuation Inputs at Reporting Date: | ||||
| Description | Total | Level 1 | Level 2 | Level 3 |
| Investments in Securities: | ||||
| Equities: | ||||
| Communication Services | $221,328,829 | $221,328,829 | $-- | $-- |
| Consumer Discretionary | 600,123,454 | 600,123,454 | -- | -- |
| Consumer Staples | 186,291,074 | 186,291,074 | -- | -- |
| Energy | 22,454,052 | 22,454,052 | -- | -- |
| Financials | 324,617,602 | 324,617,602 | -- | -- |
| Health Care | 1,052,917,147 | 1,048,955,222 | 7,685 | 3,954,240 |
| Industrials | 610,986,054 | 599,338,666 | 11,647,388 | -- |
| Information Technology | 847,336,226 | 791,430,434 | -- | 55,905,792 |
| Materials | 70,915,521 | 70,915,447 | -- | 74 |
| Real Estate | 93,264,515 | 93,264,515 | -- | -- |
| Money Market Funds | 255,316,493 | 255,316,493 | -- | -- |
| Total Investments in Securities: | $4,285,550,967 | $4,214,035,788 | $11,655,073 | $59,860,106 |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value:
| Investments in Securities: | |
| Equities - Information Technology | |
| Beginning Balance | $23,873,990 |
| Net Realized Gain (Loss) on Investment Securities | -- |
| Net Unrealized Gain (Loss) on Investment Securities | 32,031,802 |
| Cost of Purchases | -- |
| Proceeds of Sales | -- |
| Amortization/Accretion | -- |
| Transfers into Level 3 | -- |
| Transfers out of Level 3 | -- |
| Ending Balance | $55,905,792 |
| The change in unrealized gain (loss) for the period attributable to Level 3 securities held at July 31, 2019 | $32,031,802 |
| Equities - Other Investments in Securities | |
| Beginning Balance | $1,361,915 |
| Net Realized Gain (Loss) on Investment Securities | 336,700 |
| Net Unrealized Gain (Loss) on Investment Securities | (176,938) |
| Cost of Purchases | 3,954,240 |
| Proceeds of Sales | (1,521,603) |
| Amortization/Accretion | -- |
| Transfers into Level 3 | -- |
| Transfers out of Level 3 | -- |
| Ending Balance | $3,954,314 |
| The change in unrealized gain (loss) for the period attributable to Level 3 securities held at July 31, 2019 | $302,366 |
The information used in the above reconciliations represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period, and proceeds of sales includes securities delivered through affiliated in-kind transactions. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations.
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
| United States of America | 89.2% |
| Bermuda | 2.2% |
| Netherlands | 1.8% |
| Ireland | 1.6% |
| Cayman Islands | 1.0% |
| Others (Individually Less Than 1%) | 4.2% |
| 100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
| July 31, 2019 | ||
| Assets | ||
| Investment in securities, at value (including securities loaned of $128,777,644) — See accompanying schedule: Unaffiliated issuers (cost $3,159,728,581) | $3,979,586,766 | |
| Fidelity Central Funds (cost $255,316,493) | 255,316,493 | |
| Other affiliated issuers (cost $26,824,634) | 50,647,708 | |
| Total Investment in Securities (cost $3,441,869,708) | $4,285,550,967 | |
| Cash | 190,908 | |
| Receivable for investments sold | 27,683,555 | |
| Receivable for fund shares sold | 2,561,225 | |
| Dividends receivable | 235,852 | |
| Distributions receivable from Fidelity Central Funds | 204,612 | |
| Prepaid expenses | 9,891 | |
| Other receivables | 37,867 | |
| Total assets | 4,316,474,877 | |
| Liabilities | ||
| Payable for investments purchased | $45,538,543 | |
| Payable for fund shares redeemed | 3,484,183 | |
| Accrued management fee | 2,963,247 | |
| Distribution and service plan fees payable | 172,840 | |
| Other affiliated payables | 658,163 | |
| Other payables and accrued expenses | 61,160 | |
| Collateral on securities loaned | 144,662,032 | |
| Total liabilities | 197,540,168 | |
| Net Assets | $4,118,934,709 | |
| Net Assets consist of: | ||
| Paid in capital | $3,121,153,773 | |
| Total distributable earnings (loss) | 997,780,936 | |
| Net Assets | $4,118,934,709 | |
| Net Asset Value and Maximum Offering Price | ||
| Class A: | ||
| Net Asset Value and redemption price per share ($285,554,015 ÷ 10,972,122 shares)(a) | $26.03 | |
| Maximum offering price per share (100/94.25 of $26.03) | $27.62 | |
| Class M: | ||
| Net Asset Value and redemption price per share ($75,030,097 ÷ 2,990,955 shares)(a) | $25.09 | |
| Maximum offering price per share (100/96.50 of $25.09) | $26.00 | |
| Class C: | ||
| Net Asset Value and offering price per share ($96,448,855 ÷ 4,213,068 shares)(a) | $22.89 | |
| Small Cap Growth: | ||
| Net Asset Value, offering price and redemption price per share ($2,888,038,292 ÷ 105,910,312 shares) | $27.27 | |
| Class I: | ||
| Net Asset Value, offering price and redemption price per share ($590,311,118 ÷ 21,586,348 shares) | $27.35 | |
| Class Z: | ||
| Net Asset Value, offering price and redemption price per share ($183,552,332 ÷ 6,696,201 shares) | $27.41 |
(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.
Statement of Operations
| Year ended July 31, 2019 | ||
| Investment Income | ||
| Dividends | $16,936,543 | |
| Income from Fidelity Central Funds (including $1,464,661 from security lending) | 2,636,450 | |
| Total income | 19,572,993 | |
| Expenses | ||
| Management fee | ||
| Basic fee | $28,334,108 | |
| Performance adjustment | 6,454,127 | |
| Transfer agent fees | 7,093,164 | |
| Distribution and service plan fees | 2,232,971 | |
| Accounting and security lending fees | 1,070,646 | |
| Custodian fees and expenses | 54,631 | |
| Independent trustees' fees and expenses | 23,180 | |
| Registration fees | 154,977 | |
| Audit | 79,407 | |
| Legal | 12,468 | |
| Interest | 10,317 | |
| Miscellaneous | 28,887 | |
| Total expenses before reductions | 45,548,883 | |
| Expense reductions | (252,136) | |
| Total expenses after reductions | 45,296,747 | |
| Net investment income (loss) | (25,723,754) | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | 315,880,554 | |
| Fidelity Central Funds | 7,235 | |
| Other affiliated issuers | 2,562,044 | |
| Foreign currency transactions | 17,486 | |
| Total net realized gain (loss) | 318,467,319 | |
| Change in net unrealized appreciation (depreciation) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | (100,720,572) | |
| Affiliated issuers | 16,584,609 | |
| Assets and liabilities in foreign currencies | (36) | |
| Total change in net unrealized appreciation (depreciation) | (84,135,999) | |
| Net gain (loss) | 234,331,320 | |
| Net increase (decrease) in net assets resulting from operations | $208,607,566 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Year ended July 31, 2019 | Year ended July 31, 2018 | |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $(25,723,754) | $(20,419,513) |
| Net realized gain (loss) | 318,467,319 | 566,206,488 |
| Change in net unrealized appreciation (depreciation) | (84,135,999) | 432,963,295 |
| Net increase (decrease) in net assets resulting from operations | 208,607,566 | 978,750,270 |
| Distributions to shareholders | (497,059,513) | – |
| Distributions to shareholders from net realized gain | – | (236,662,615) |
| Total distributions | (497,059,513) | (236,662,615) |
| Share transactions - net increase (decrease) | (211,501,516) | 745,727,718 |
| Redemption fees | – | 224,642 |
| Total increase (decrease) in net assets | (499,953,463) | 1,488,040,015 |
| Net Assets | ||
| Beginning of period | 4,618,888,172 | 3,130,848,157 |
| End of period | $4,118,934,709 | $4,618,888,172 |
| Other Information | ||
| Accumulated net investment loss end of period | $(3,938,472) |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Small Cap Growth Fund Class A
| Years ended July 31, | 2019 | 2018 | 2017 | 2016 | 2015 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $27.45 | $22.99 | $19.17 | $20.55 | $17.99 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | (.21) | (.18) | (.14) | (.10) | (.13) |
| Net realized and unrealized gain (loss) | 1.79 | 6.32 | 4.12 | (.51) | 4.23 |
| Total from investment operations | 1.58 | 6.14 | 3.98 | (.61) | 4.10 |
| Distributions from net realized gain | (3.00) | (1.68) | (.16) | (.78) | (1.54) |
| Total distributions | (3.00) | (1.68) | (.16) | (.78) | (1.54) |
| Redemption fees added to paid in capital | – | –A,B | –A,B | .01A | –A,B |
| Net asset value, end of period | $26.03 | $27.45 | $22.99 | $19.17 | $20.55 |
| Total ReturnC,D | 5.88% | 28.47% | 20.90% | (2.85)% | 24.46% |
| Ratios to Average Net AssetsE,F | |||||
| Expenses before reductions | 1.33% | 1.31% | 1.35% | 1.37% | 1.21% |
| Expenses net of fee waivers, if any | 1.33% | 1.31% | 1.35% | 1.37% | 1.21% |
| Expenses net of all reductions | 1.32% | 1.30% | 1.34% | 1.36% | 1.20% |
| Net investment income (loss) | (.85)% | (.74)% | (.66)% | (.58)% | (.67)% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $285,554 | $315,894 | $218,905 | $176,988 | $123,370 |
| Portfolio turnover rateG | 91%H | 106%H | 140%H | 143% | 156% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
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 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 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.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Fidelity Small Cap Growth Fund Class M
| Years ended July 31, | 2019 | 2018 | 2017 | 2016 | 2015 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $26.59 | $22.35 | $18.69 | $20.08 | $17.66 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | (.26) | (.24) | (.19) | (.15) | (.17) |
| Net realized and unrealized gain (loss) | 1.72 | 6.13 | 4.01 | (.50) | 4.13 |
| Total from investment operations | 1.46 | 5.89 | 3.82 | (.65) | 3.96 |
| Distributions from net realized gain | (2.96) | (1.65) | (.16) | (.75) | (1.54) |
| Total distributions | (2.96) | (1.65) | (.16) | (.75) | (1.54) |
| Redemption fees added to paid in capital | – | –A,B | –A,B | .01A | –A,B |
| Net asset value, end of period | $25.09 | $26.59 | $22.35 | $18.69 | $20.08 |
| Total ReturnC,D | 5.60% | 28.15% | 20.57% | (3.14)% | 24.10% |
| Ratios to Average Net AssetsE,F | |||||
| Expenses before reductions | 1.60% | 1.58% | 1.62% | 1.66% | 1.49% |
| Expenses net of fee waivers, if any | 1.60% | 1.58% | 1.62% | 1.66% | 1.48% |
| Expenses net of all reductions | 1.59% | 1.57% | 1.61% | 1.64% | 1.47% |
| Net investment income (loss) | (1.12)% | (1.01)% | (.94)% | (.87)% | (.95)% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $75,030 | $82,567 | $64,034 | $53,447 | $52,667 |
| Portfolio turnover rateG | 91%H | 106%H | 140%H | 143% | 156% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
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 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 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.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Fidelity Small Cap Growth Fund Class C
| Years ended July 31, | 2019 | 2018 | 2017 | 2016 | 2015 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $24.56 | $20.83 | $17.52 | $18.90 | $16.78 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | (.35) | (.34) | (.27) | (.22) | (.25) |
| Net realized and unrealized gain (loss) | 1.58 | 5.69 | 3.74 | (.48) | 3.91 |
| Total from investment operations | 1.23 | 5.35 | 3.47 | (.70) | 3.66 |
| Distributions from net realized gain | (2.90) | (1.62) | (.16) | (.69) | (1.54) |
| Total distributions | (2.90) | (1.62) | (.16) | (.69) | (1.54) |
| Redemption fees added to paid in capital | – | –A,B | –A,B | .01A | –A,B |
| Net asset value, end of period | $22.89 | $24.56 | $20.83 | $17.52 | $18.90 |
| Total ReturnC,D | 5.06% | 27.51% | 19.95% | (3.64)% | 23.53% |
| Ratios to Average Net AssetsE,F | |||||
| Expenses before reductions | 2.09% | 2.07% | 2.11% | 2.16% | 2.00% |
| Expenses net of fee waivers, if any | 2.09% | 2.07% | 2.11% | 2.16% | 2.00% |
| Expenses net of all reductions | 2.08% | 2.06% | 2.10% | 2.14% | 1.99% |
| Net investment income (loss) | (1.61)% | (1.50)% | (1.43)% | (1.37)% | (1.46)% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $96,449 | $139,375 | $102,669 | $73,731 | $55,671 |
| Portfolio turnover rateG | 91%H | 106%H | 140%H | 143% | 156% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
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 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 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.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Fidelity Small Cap Growth Fund
| Years ended July 31, | 2019 | 2018 | 2017 | 2016 | 2015 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $28.59 | $23.84 | $19.82 | $21.20 | $18.45 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | (.15) | (.12) | (.09) | (.06) | (.07) |
| Net realized and unrealized gain (loss) | 1.87 | 6.57 | 4.27 | (.52) | 4.36 |
| Total from investment operations | 1.72 | 6.45 | 4.18 | (.58) | 4.29 |
| Distributions from net realized gain | (3.04) | (1.70) | (.16) | (.81) | (1.54) |
| Total distributions | (3.04) | (1.70) | (.16) | (.81) | (1.54) |
| Redemption fees added to paid in capital | – | –A,B | –A,B | .01A | –A,B |
| Net asset value, end of period | $27.27 | $28.59 | $23.84 | $19.82 | $21.20 |
| Total ReturnC | 6.17% | 28.81% | 21.22% | (2.63)% | 24.91% |
| Ratios to Average Net AssetsD,E | |||||
| Expenses before reductions | 1.05% | 1.02% | 1.08% | 1.12% | .91% |
| Expenses net of fee waivers, if any | 1.05% | 1.02% | 1.08% | 1.12% | .91% |
| Expenses net of all reductions | 1.04% | 1.01% | 1.07% | 1.11% | .90% |
| Net investment income (loss) | (.57)% | (.45)% | (.40)% | (.33)% | (.37)% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $2,888,038 | $3,269,548 | $2,336,762 | $1,580,264 | $1,345,684 |
| Portfolio turnover rateF | 91%G | 106%G | 140%G | 143% | 156% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D 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.
E 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.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Fidelity Small Cap Growth Fund Class I
| Years ended July 31, | 2019 | 2018 | 2017 | 2016 | 2015 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $28.66 | $23.90 | $19.86 | $21.24 | $18.49 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | (.15) | (.12) | (.08) | (.05) | (.07) |
| Net realized and unrealized gain (loss) | 1.88 | 6.58 | 4.28 | (.53) | 4.36 |
| Total from investment operations | 1.73 | 6.46 | 4.20 | (.58) | 4.29 |
| Distributions from net realized gain | (3.04) | (1.70) | (.16) | (.81) | (1.54) |
| Total distributions | (3.04) | (1.70) | (.16) | (.81) | (1.54) |
| Redemption fees added to paid in capital | – | –A,B | –A,B | .01A | –A,B |
| Net asset value, end of period | $27.35 | $28.66 | $23.90 | $19.86 | $21.24 |
| Total ReturnC | 6.18% | 28.78% | 21.28% | (2.62)% | 24.85% |
| Ratios to Average Net AssetsD,E | |||||
| Expenses before reductions | 1.06% | 1.03% | 1.06% | 1.09% | .93% |
| Expenses net of fee waivers, if any | 1.06% | 1.03% | 1.06% | 1.09% | .93% |
| Expenses net of all reductions | 1.06% | 1.02% | 1.05% | 1.07% | .91% |
| Net investment income (loss) | (.58)% | (.46)% | (.38)% | (.30)% | (.39)% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $590,311 | $678,576 | $390,032 | $163,696 | $97,897 |
| Portfolio turnover rateF | 91%G | 106%G | 140%G | 143% | 156% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D 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.
E 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.
F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Fidelity Small Cap Growth Fund Class Z
| Years ended July 31, | 2019 | 2018 | 2017 A |
| Selected Per–Share Data | |||
| Net asset value, beginning of period | $28.71 | $23.91 | $21.39 |
| Income from Investment Operations | |||
| Net investment income (loss)B | (.11) | (.09) | (.05) |
| Net realized and unrealized gain (loss) | 1.87 | 6.61 | 2.57 |
| Total from investment operations | 1.76 | 6.52 | 2.52 |
| Distributions from net realized gain | (3.06) | (1.72) | – |
| Total distributions | (3.06) | (1.72) | – |
| Redemption fees added to paid in capital | – | –B,C | –B,C |
| Net asset value, end of period | $27.41 | $28.71 | $23.91 |
| Total ReturnD,E | 6.29% | 29.02% | 11.78% |
| Ratios to Average Net AssetsF,G | |||
| Expenses before reductions | .92% | .89% | .90%H |
| Expenses net of fee waivers, if any | .92% | .89% | .90%H |
| Expenses net of all reductions | .92% | .88% | .89%H |
| Net investment income (loss) | (.44)% | (.32)% | (.44)%H |
| Supplemental Data | |||
| Net assets, end of period (000 omitted) | $183,552 | $132,928 | $18,447 |
| Portfolio turnover rateI | 91%J | 106%J | 140%J |
A For the period February 1, 2017 (commencement of sale of shares) to July 31, 2017.
B Calculated based on average shares outstanding during the period.
C Amount represents less than $.005 per share.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
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 Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
J Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended July 31, 2019
1. Organization.
Fidelity Small Cap Growth Fund (the Fund) is a fund of Fidelity Securities Fund (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class M, Class C, Fidelity Small Cap Growth, Class I and Class Z shares, each of which has equal rights as to assets and voting privileges. Effective the close of business on February 2, 2018, the Fund was closed to new accounts with certain exceptions. Each class has exclusive voting rights with respect to matters that affect that class.
Effective March 1, 2019, Class C shares will automatically convert to Class A shares after a holding period of ten years from the initial date of purchase, with certain exceptions.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date ranged from less than .005% to .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investments Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy. Equity securities, including restricted securities, for which observable inputs are not available are valued using alternate valuation approaches, including the market approach and the income approach and are categorized as Level 3 in the hierarchy. The market approach generally consists of using comparable market transactions while the income approach generally consists of using the net present value of estimated future cash flows, adjusted as appropriate for liquidity, credit, market and/or other risk factors.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
The following provides information on Level 3 securities held by the Fund that were valued at period end based on unobservable inputs. These amounts exclude valuations provided by a broker.
| Asset Type | Fair Value | Valuation Technique(s) | Unobservable Input | Amount or Range / Weighted Average | Impact to Valuation from an Increase in Input(a) |
| Equities | $59,860,106 | Market comparable | Transaction price | $2.06 | Increase |
| Recovery value | Recovery value | 0.0% | Increase | ||
| Market approach | Transaction price | $154.27 | Increase | ||
| Conversion ratio | 1.0 | Increase |
(a) Represents the directional change in the fair value of the Level 3 investments that could have resulted from an increase in the corresponding input as of period end. A decrease to the unobservable input would have had the opposite effect. Significant changes in these inputs may have resulted in a significantly higher or lower fair value measurement at period end.
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 July 31, 2019, as well as a roll forward of Level 3 investments, is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. As of July 31, 2019, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), redemptions in kind, partnerships, net operating losses and losses deferred due to wash sales and excise tax regulations.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
| Gross unrealized appreciation | $994,776,638 |
| Gross unrealized depreciation | (158,094,346) |
| Net unrealized appreciation (depreciation) | $836,682,292 |
| Tax Cost | $3,448,868,675 |
The tax-based components of distributable earnings as of period end were as follows:
| Undistributed long-term capital gain | $178,062,762 |
| Net unrealized appreciation (depreciation) on securities and other investments | $836,682,158 |
The Fund intends to elect to defer to its next fiscal year $16,963,983 of ordinary losses recognized during the period January 1, 2019 to July 31, 2019.
The tax character of distributions paid was as follows:
| July 31, 2019 | July 31, 2018 | |
| Ordinary Income | $178,839,342 | $ 18,559,818 |
| Long-term Capital Gains | 318,220,171 | 218,102,797 |
| Total | $497,059,513 | $ 236,662,615 |
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
New Rule Issuance. During August 2018, the U.S. Securities and Exchange Commission issued Final Rule Release No. 33-10532, Disclosure Update and Simplification. This Final Rule includes amendments specific to registered investment companies that are intended to eliminate overlap in disclosure requirements between Regulation S-X and GAAP. In accordance with these amendments, certain line-items in the Fund's financial statements have been combined or removed for the current period as outlined in the table below.
| Financial Statement | Current Line-Item Presentation (As Applicable) | Prior Line-Item Presentation (As Applicable) |
| Statement of Assets and Liabilities | Total distributable earnings (loss) | Undistributed/Distributions in excess of/Accumulated net investment income (loss) Accumulated/Undistributed net realized gain (loss) Net unrealized appreciation (depreciation) |
| Statement of Changes in Net Assets | N/A - removed | Undistributed/Distributions in excess of/Accumulated net investment income (loss) end of period |
| Statement of Changes in Net Assets | Distributions to shareholders | Distributions to shareholders from net investment income Distributions to shareholders from net realized gain |
| Distributions to Shareholders Note to Financial Statements | Distributions to shareholders | Distributions to shareholders from net investment income Distributions to shareholders from net realized gain |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and in-kind transactions, aggregated $3,741,786,627 and $4,262,118,484, respectively.
Unaffiliated Redemptions In-Kind. During the period, 7,436,140 shares of the Fund were redeemed in-kind for investments and cash with a value of $206,237,608. The net realized gain of $60,346,637 on investments delivered through in-kind redemptions is included in the accompanying Statement of Operations. The amount of the in-kind redemptions is included in share transactions in the accompanying Statement of Changes in Net Assets as well as the Notes to Financial Statements. The Fund recognized no gain or loss for federal income tax purposes.
Prior Fiscal Year Unaffiliated Redemptions In-Kind. During the prior period, 3,806,167 shares of the Fund were redeemed in-kind for investments and cash with a value of $99,242,171. The Fund had a net realized gain of $30,767,545 on investments delivered through in-kind redemptions. The amount of the in-kind redemptions is included in share transactions in the accompanying Statement of Changes in Net Assets as well as the Notes to Financial Statements. The Fund recognized no gain or loss for federal income tax purposes.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the Fund's average net assets and an annualized group fee rate that averaged .24% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of +/- .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of Small Cap Growth as compared to its benchmark index, the Russell 2000 Growth Index, over the same 36 month performance period. For the reporting period, the total annual management fee rate, including the performance adjustment, was .84% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution Fee | Service Fee | Total Fees | Retained by FDC | |
| Class A | -% | .25% | $718,227 | $15,491 |
| Class M | .25% | .25% | 375,316 | 1,666 |
| Class C | .75% | .25% | 1,139,428 | 81,181 |
| $2,232,971 | $98,338 |
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 M 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 M and Class C redemptions. The deferred sales charges are 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class M shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained by FDC | |
| Class A | $18,581 |
| Class M | 5,270 |
| Class C(a) | 6,026 |
| $29,877 |
(a) When Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund, except for Class Z. FIIOC receives an asset-based fee of Class Z's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
| Amount | % of Class-Level Average Net Assets | |
| Class A | $578,695 | .20 |
| Class M | 164,861 | .22 |
| Class C | 238,763 | .21 |
| Small Cap Growth | 4,920,020 | .17 |
| Class I | 1,122,443 | .19 |
| Class Z | 68,382 | .05 |
| $7,093,164 |
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Prior to April 1, 2019, FSC had a separate agreement with the Fund for administration of the security lending program, based on the number and duration of lending transactions. For the period, the total fees paid for accounting and administration of securities lending were equivalent to an annual rate of .03%.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $184,599 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with Fidelity Management & Research Company (FMR) or other affiliated entities of FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
| Borrower or Lender | Average Loan Balance | Weighted Average Interest Rate | Interest Expense |
| Borrower | $22,528,286 | 2.36% | $10,317 |
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $11,116 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. For equity securities, lending agents are used, including National Financial Services (NFS), an affiliate of the Fund. Pursuant to a securities lending agreement, NFS will receive a fee, which is capped at 9.9% of daily lending revenue, for its services as lending agent. The Fund may lend securities to certain qualified borrowers, including NFS. 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. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. The value of securities loaned to NFS, as affiliated borrower, at period end was $8,438,031. Total fees paid by the Fund to NFS, as lending agent, amounted to $14,531. 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 $153,701 from securities loaned to NFS, as affiliated borrower.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $219,787 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses. During the period, custodian credits reduced the Fund's expenses by $3,401. During the period, transfer agent credits reduced each class' expenses as noted in the table below.
| Expense reduction | |
| Small Cap Growth | $45 |
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $28,903.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Year ended July 31, 2019 | Year ended July 31, 2018 | |
| Distributions to shareholders | ||
| Class A | $34,685,218 | $– |
| Class M | 9,164,126 | – |
| Class C | 16,135,660 | – |
| Small Cap Growth | 350,367,749 | – |
| Class I | 71,811,488 | – |
| Class Z | 14,895,272 | – |
| Total | $497,059,513 | $– |
| From net realized gain | ||
| Class A | $– | $16,634,776 |
| Class M | – | 4,795,381 |
| Class C | – | 8,085,052 |
| Small Cap Growth | – | 173,515,943 |
| Class I | – | 31,458,120 |
| Class Z | – | 2,173,343 |
| Total | $– | $236,662,615 |
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
| Shares | Shares | Dollars | Dollars | |
| Year ended July 31, 2019 | Year ended July 31, 2018 | Year ended July 31, 2019 | Year ended July 31, 2018 | |
| Class A | ||||
| Shares sold | 2,133,430 | 3,599,713 | $51,723,419 | $88,330,995 |
| Reinvestment of distributions | 1,321,086 | 737,094 | 34,480,523 | 16,518,361 |
| Shares redeemed | (3,991,085) | (2,350,141) | (95,100,431) | (58,390,054) |
| Net increase (decrease) | (536,569) | 1,986,666 | $(8,896,489) | $46,459,302 |
| Class M | ||||
| Shares sold | 317,719 | 577,387 | $7,433,229 | $13,785,910 |
| Reinvestment of distributions | 361,926 | 219,933 | 9,120,199 | 4,778,389 |
| Shares redeemed | (794,185) | (556,511) | (18,054,920) | (13,344,376) |
| Net increase (decrease) | (114,540) | 240,809 | $(1,501,492) | $5,219,923 |
| Class C | ||||
| Shares sold | 309,686 | 1,485,229 | $6,516,456 | $32,475,020 |
| Reinvestment of distributions | 689,073 | 394,045 | 15,944,303 | 7,927,935 |
| Shares redeemed | (2,460,326) | (1,132,670) | (52,214,985) | (25,169,389) |
| Net increase (decrease) | (1,461,567) | 746,604 | $(29,754,226) | $15,233,566 |
| Small Cap Growth | ||||
| Shares sold | 17,891,444 | 40,826,489 | $464,089,780 | $1,050,416,894 |
| Reinvestment of distributions | 12,256,590 | 7,124,344 | 334,955,420 | 166,042,374 |
| Shares redeemed | (38,604,543)(a) | (31,622,132)(b) | (977,681,337)(a) | (815,066,882)(b) |
| Net increase (decrease) | (8,456,509) | 16,328,701 | $(178,636,137) | $401,392,386 |
| Class I | ||||
| Shares sold | 4,729,284 | 14,717,864 | $123,093,185 | $373,830,212 |
| Reinvestment of distributions | 2,543,850 | 1,279,506 | 69,666,847 | 29,928,913 |
| Shares redeemed | (9,361,050) | (8,645,418) | (237,801,656) | (225,106,522) |
| Net increase (decrease) | (2,087,916) | 7,351,952 | $(45,041,624) | $178,652,603 |
| Class Z | ||||
| Shares sold | 3,951,932 | 4,877,377 | $99,696,861 | $125,972,662 |
| Reinvestment of distributions | 395,743 | 72,161 | 10,820,866 | 1,697,869 |
| Shares redeemed | (2,281,679) | (1,090,733) | (58,189,275) | (28,900,593) |
| Net increase (decrease) | 2,065,996 | 3,858,805 | $52,328,452 | $98,769,938 |
(a) Amount includes in-kind redemptions (see the Unaffiliated Redemptions In-Kind note for additional details).
(b) Amount includes in-kind redemptions (see the Prior Fiscal Year Unaffiliated Redemptions In-Kind note for additional details).
11. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Fidelity Securities Fund and Shareholders of Fidelity Small Cap Growth Fund:
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Fidelity Small Cap Growth Fund (one of the funds constituting Fidelity Securities Fund, referred to hereafter as the “Fund”) as of July 31, 2019, the related statement of operations for the year ended July 31, 2019, the statement of changes in net assets for each of the two years in the period ended July 31, 2019, including the related notes, and the financial highlights for each of the periods indicated therein (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of July 31, 2019, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended July 31, 2019 and the financial highlights for each of the periods indicated therein in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States)(PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of July 31, 2019 by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Boston, Massachusetts
September 13, 2019
We have served as the auditor of one or more investment companies in the Fidelity group of funds since 1932.
Trustees and Officers
The Trustees, Members of the Advisory Board (if any), and officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Except for Jonathan Chiel, each of the Trustees oversees 298 funds. Mr. Chiel oversees 170 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the fund is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund's Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544 if you’re an individual investing directly with Fidelity, call 1-800-835-5092 if you’re a plan sponsor or participant with Fidelity as your recordkeeper or call 1-877-208-0098 on institutional accounts or if you’re an advisor or invest through one.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Board Structure and Oversight Function. James C. Curvey is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Ned C. Lautenbach serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and other equity funds. The asset allocation funds may invest in Fidelity® funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Jonathan Chiel (1957)
Year of Election or Appointment: 2016
Trustee
Mr. Chiel also serves as Trustee of other Fidelity® funds. Mr. Chiel is Executive Vice President and General Counsel for FMR LLC (diversified financial services company, 2012-present). Previously, Mr. Chiel served as general counsel (2004-2012) and senior vice president and deputy general counsel (2000-2004) for John Hancock Financial Services; a partner with Choate, Hall & Stewart (1996-2000) (law firm); and an Assistant United States Attorney for the United States Attorney’s Office of the District of Massachusetts (1986-95), including Chief of the Criminal Division (1993-1995). Mr. Chiel is a director on the boards of the Boston Bar Foundation and the Maimonides School.
James C. Curvey (1935)
Year of Election or Appointment: 2007
Trustee
Chairman of the Board of Trustees
Mr. Curvey also serves as Trustee of other Fidelity® funds. Mr. Curvey is Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey is an Overseer Emeritus for the Boston Symphony Orchestra, a Director of Artis-Naples, and a Trustee of Brewster Academy in Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-2018), Director of Fidelity Investments Money Management, Inc. (investment adviser firm, 2009-2014) and a Director of FMR and FMR Co., Inc. (investment adviser firms, 2007-2014).
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), as a member of the Independent Directors Council (IDC) Governing Council (2010-2015), and as a member of the Board of Directors for The Brookville Center for Children’s Services, Inc. (2009-2017). Mr. Dirks is a member of the Finance Committee (2016-present) and Board of Directors (2017-present) and is Treasurer (2018-present) of the Asolo Repertory Theatre.
Donald F. Donahue (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Donahue also serves as a Trustee of other Fidelity® funds. Mr. Donahue is President and Chief Executive Officer of Miranda Partners, LLC (risk consulting for the financial services industry, 2012-present). Previously, Mr. Donahue served as a Member of the Advisory Board of certain Fidelity® funds (2015-2018) and Chief Executive Officer (2006-2012), Chief Operating Officer (2003-2006), and Managing Director, Customer Marketing and Development (1999-2003) of The Depository Trust & Clearing Corporation (financial markets infrastructure). Mr. Donahue serves as a Member (2007-present) and Co-Chairman (2016-present) of the Board of Directors of United Way of New York, Member of the Board of Directors of NYC Leadership Academy (2012-present) and Member of the Board of Advisors of Ripple Labs, Inc. (financial services, 2015-present). He also served as Chairman (2010-2012) and Member of the Board of Directors (2012-2013) of Omgeo, LLC (financial services), Treasurer of United Way of New York (2012-2016), and Member of the Board of Directors of XBRL US (financial services non-profit, 2009-2012) and the International Securities Services Association (2009-2012).
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2014-2017) and a member (2010-2017) of the Board of Directors of Dave & Buster’s Entertainment, Inc. (restaurant and entertainment complexes), as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association, and as a member of the Board of Directors for The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), Earth Fare, Inc. (retail grocery, 2010-2014), and The Western Union Company (global money transfer, 2006-2011).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as Chair (2018-present) and Member (2013-present) of the Board of Governors, State University System of Florida and is a member of the Council on Foreign Relations (1994-present). He is also a member and has most recently served as Chairman of the Board of Directors of Artis-Naples (2012-present). Previously, Mr. Lautenbach served as a member and then Lead Director of the Board of Directors of Eaton Corporation (diversified industrial, 1997-2016). He was also a Partner and Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007). In addition, Mr. Lautenbach also had a 30-year career with IBM (technology company) during which time he served as Senior Vice President and a member of the Corporate Executive Committee (1968-1998).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-2018).
Cornelia M. Small (1944)
Year of Election or Appointment: 2005
Trustee
Ms. Small also serves as Trustee of other Fidelity® funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.
Garnett A. Smith (1947)
Year of Election or Appointment: 2018
Trustee
Mr. Smith also serves as Trustee of other Fidelity® funds. Prior to Mr. Smith's retirement, he served as Chairman and Chief Executive Officer of Inbrand Corp. (manufacturer of personal absorbent products, 1990-1997). He also served as President (1986-1990) of Inbrand Corp. Prior to his employment with Inbrand Corp., he was employed by a retail fabric chain and North Carolina National Bank. In addition, Mr. Smith served as a Member of the Advisory Board of certain Fidelity® funds (2012-2013) and as a board member of the Jackson Hole Land Trust (2009-2012).
David M. Thomas (1949)
Year of Election or Appointment: 2008
Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present) and as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), a Director of Fortune Brands, Inc. (consumer products, 2000-2011), and a member of the Board of Trustees of the University of Florida (2013-2018).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Advisory Board Members and Officers:
Correspondence intended for a Member of the Advisory Board (if any) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235. Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Vicki L. Fuller (1957)
Year of Election or Appointment: 2018
Member of the Advisory Board
Ms. Fuller also serves as Member of the Advisory Board of other Fidelity® funds. Ms. Fuller serves as a member of the Board of Directors, Audit Committee, and Nominating and Governance Committee of The Williams Companies, Inc. (natural gas infrastructure, 2018-present). Previously, Ms. Fuller served as the Chief Investment Officer of the New York State Common Retirement Fund (2012-2018) and held a variety of positions at AllianceBernstein L.P. (global asset management, 1985-2012), including Managing Director (2006-2012) and Senior Vice President and Senior Portfolio Manager (2001-2006).
Peter S. Lynch (1944)
Year of Election or Appointment: 2003
Member of the Advisory Board
Mr. Lynch also serves as Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of FMR (investment adviser firm) and FMR Co., Inc. (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).
Michael E. Wiley (1950)
Year of Election or Appointment: 2018
Member of the Advisory Board [Include if document contains trusts for which the individual serves as Advisory Board Member and trusts for which he/she does not serve as Advisory Board Member:of Name(s) of Trust(s)]
Mr. Wiley also serves as Trustee or Member of the Advisory Board of other Fidelity® funds. Mr. Wiley serves as a Director of High Point Resources (exploration and production, 2005-present). Previously, Mr. Wiley served as a Director of Andeavor Corporation (independent oil refiner and marketer, 2005-2018), a Director of Andeavor Logistics LP (natural resources logistics, 2015-2018), a Director of Post Oak Bank (privately-held bank, 2004-2018), a Director of Asia Pacific Exploration Consolidated (international oil and gas exploration and production, 2008-2013), a member of the Board of Trustees of the University of Tulsa (2000-2006; 2007-2010), a Senior Energy Advisor of Katzenbach Partners, LLC (consulting, 2006-2007), an Advisory Director of Riverstone Holdings (private investment), a Director of Spinnaker Exploration Company (exploration and production, 2001-2005) and Chairman, President, and CEO of Baker Hughes, Inc. (oilfield services, 2000-2004).
Elizabeth Paige Baumann (1968)
Year of Election or Appointment: 2017
Anti-Money Laundering (AML) Officer
Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer (2012-present) and Senior Vice President (2014-present) of FMR LLC (diversified financial services company) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as AML Officer of the funds (2012-2016), and Vice President (2007-2014) and Deputy Anti-Money Laundering Officer (2007-2012) of FMR LLC.
Craig S. Brown (1977)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Brown also serves as Assistant Treasurer of other funds. Mr. Brown is an employee of Fidelity Investments (2013-present).
John J. Burke III (1964)
Year of Election or Appointment: 2018
Chief Financial Officer
Mr. Burke also serves as Chief Financial Officer of other funds. Mr. Burke serves as Head of Investment Operations for Fidelity Fund and Investment Operations (2018-present) and is an employee of Fidelity Investments (1998-present). Previously Mr. Burke served as head of Asset Management Investment Operations (2012-2018).
William C. Coffey (1969)
Year of Election or Appointment: 2018
Secretary and Chief Legal Officer (CLO)
Mr. Coffey also serves as Secretary and CLO of other funds. Mr. Coffey serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2018-present); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2018-present); and CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2018-present). He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Assistant Secretary of certain funds (2009-2018) and as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Timothy M. Cohen (1969)
Year of Election or Appointment: 2018
Vice President
Mr. Cohen also serves as Vice President of other funds. Mr. Cohen serves as Executive Vice President of Fidelity SelectCo, LLC (2019-present), Co-Head of Equity (2018-present), a Director of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present), and is an employee of Fidelity Investments. Previously, Mr. Cohen served as Head of Global Equity Research (2016-2018), Chief Investment Officer - Equity and a Director of Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2013-2015) and as a Director of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2017).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds. Mr. Davis serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present), and is an employee of Fidelity Investments (2008-present). Previously, Mr. Deberghes served as President and Treasurer of certain Fidelity® funds (2013-2018). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). Previously, Mr. Deberghes served in other fund officer roles.
Laura M. Del Prato (1964)
Year of Election or Appointment: 2018
Assistant Treasurer
Ms. Del Prato also serves as an officer of other funds. Ms. Del Prato is an employee of Fidelity Investments (2017-present). Prior to joining Fidelity Investments, Ms. Del Prato served as a Managing Director and Treasurer of the JPMorgan Mutual Funds (2014-2017). Prior to JPMorgan, Ms. Del Prato served as a partner at Cohen Fund Audit Services (accounting firm, 2012-2013) and KPMG LLP (accounting firm, 2004-2012).
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2005-present). Previously, Mr. Hogan served as Assistant Treasurer of certain Fidelity® funds (2016-2018).
Pamela R. Holding (1964)
Year of Election or Appointment: 2018
Vice President
Ms. Holding also serves as Vice President of other funds. Ms. Holding serves as Executive Vice President of Fidelity SelectCo, LLC (2019-present), Co-Head of Equity (2018-present) and is an employee of Fidelity Investments (2013-present). Previously, Ms. Holding served as Chief Investment Officer of Fidelity Institutional Asset Management (2013-2018).
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight, serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. Ms. Smith serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), is an employee of Fidelity Investments (2009-present), and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Assistant Treasurer (2013-2018) and Deputy Treasurer (2013-2016) of certain Fidelity® funds.
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
Jim Wegmann (1979)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Wegmann also serves as Assistant Treasurer of other funds. Mr. Wegmann is an employee of Fidelity Investments (2011-present).
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 (February 1, 2019 to July 31, 2019).
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.
| Annualized Expense Ratio-A | Beginning Account Value February 1, 2019 | Ending Account Value July 31, 2019 | Expenses Paid During Period-B February 1, 2019 to July 31, 2019 | |
| Class A | 1.34% | |||
| Actual | $1,000.00 | $1,143.70 | $7.12 | |
| Hypothetical-C | $1,000.00 | $1,018.15 | $6.71 | |
| Class M | 1.60% | |||
| Actual | $1,000.00 | $1,142.00 | $8.50 | |
| Hypothetical-C | $1,000.00 | $1,016.86 | $8.00 | |
| Class C | 2.10% | |||
| Actual | $1,000.00 | $1,138.80 | $11.14 | |
| Hypothetical-C | $1,000.00 | $1,014.38 | $10.49 | |
| Small Cap Growth | 1.06% | |||
| Actual | $1,000.00 | $1,144.80 | $5.64 | |
| Hypothetical-C | $1,000.00 | $1,019.54 | $5.31 | |
| Class I | 1.07% | |||
| Actual | $1,000.00 | $1,144.80 | $5.69 | |
| Hypothetical-C | $1,000.00 | $1,019.49 | $5.36 | |
| Class Z | .93% | |||
| Actual | $1,000.00 | $1,145.40 | $4.95 | |
| Hypothetical-C | $1,000.00 | $1,020.18 | $4.66 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
C 5% return per year before expenses
Distributions (Unaudited)
The Board of Trustees of Fidelity Small Cap Growth Fund voted to pay to shareholders of record at the opening of business on record date, the following distributions per share derived from capital gains realized from sales of portfolio securities:
| Pay Date | Record Date | Capital Gains | |
| Fidelity Small Cap Growth Fund | |||
| Class A | 09/16/19 | 09/13/19 | $1.191 |
| Class M | 09/16/19 | 09/13/19 | $1.191 |
| Class C | 09/16/19 | 09/13/19 | $1.191 |
| Small Cap Growth | 09/16/19 | 09/13/19 | $1.191 |
| Class I | 09/16/19 | 09/13/19 | $1.191 |
| Class Z | 09/16/19 | 09/13/19 | $1.191 |
The fund hereby designates as a capital gain dividend with respect to the taxable year ended July 31, 2019, $258,971,710, or, if subsequently determined to be different, the net capital gain of such year.
Class A designates 4%; Class M designates 4%; Class C designates 4%; Small Cap Growth designates 4%; Class I designates 4%; and Class Z designates 4%; of the dividends distributed in September during the fiscal year as qualifying for the dividends–received deduction for corporate shareholders.
Class A designates 5%; Class M designates 6%; Class C designates 6%; Small Cap Growth designates 5%; Class I designates 5%; and Class Z designates 5%; of the dividends distributed in September during the fiscal year as amounts which may be taken into account as a dividend for purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code.
The fund will notify shareholders in January 2020 of amounts for use in preparing 2019 income tax returns.
SCP-ANN-0919
1.803695.114
Fidelity® Small Cap Growth K6 Fund Annual Report July 31, 2019 |
|
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of a fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a financial advisor, broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from a fund electronically, by contacting your financial intermediary. For Fidelity customers, visit Fidelity's web site or call Fidelity using the contact information listed below.
You may elect to receive all future reports in paper free of charge. If you wish to continue receiving paper copies of your shareholder reports, you may contact your financial intermediary or, if you are a Fidelity customer, visit Fidelity’s website, or call Fidelity at the applicable toll-free number listed below. Your election to receive reports in paper will apply to all funds held with the fund complex/your financial intermediary.
| Account Type | Website | Phone Number |
| Brokerage, Mutual Fund, or Annuity Contracts: | fidelity.com/mailpreferences | 1-800-343-3548 |
| Employer Provided Retirement Accounts: | netbenefits.fidelity.com/preferences (choose 'no' under Required Disclosures to continue to print) | 1-800-343-0860 |
| Advisor Sold Accounts Serviced Through Your Financial Intermediary: | Contact Your Financial Intermediary | Your Financial Intermediary's phone number |
| Advisor Sold Accounts Serviced by Fidelity: | institutional.fidelity.com | 1-877-208-0098 |
Contents
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-800-835-5092 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2019 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT. Forms N-PORT are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-PORT 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.institutional.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.
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
| For the periods ended July 31, 2019 | Past 1 year | Life of fundA |
| Fidelity® Small Cap Growth K6 Fund | 6.14% | 17.56% |
A From May 25, 2017
$10,000 Over Life of Fund
Let's say hypothetically that $10,000 was invested in Fidelity® Small Cap Growth K6 Fund on May 25, 2017, when the fund started.
The chart shows how the value of your investment would have changed, and also shows how the Russell 2000® Growth Index performed over the same period.
| Period Ending Values | ||
| $14,237 | Fidelity® Small Cap Growth K6 Fund | |
| $12,572 | Russell 2000® Growth Index | |
Management's Discussion of Fund Performance
Market Recap: The U.S. equity bellwether S&P 500® index gained 7.99% for the 12 months ending July 31, 2019, beginning the new year on a high note after enduring a historically volatile final quarter of 2018. Upbeat company earnings/outlooks and signs the Federal Reserve may pause on rates boosted stocks to an all-time high on April 30. In May, however, volatility spiked and stocks returned -6.35% for the month amid the Fed’s decision to hold interest rates steady and signal that it had little appetite to adjust them any time soon, as well as retaliatory tariffs imposed on the U.S. by China. The downtrend was similar to late 2018, when many investors fled from risk assets on elevated concerns about future economic growth, global trade and tighter monetary policy. The bull market roared back in June, with the S&P 500® rising 7.05%, and recorded a series of all-time highs in a productive July (+1.44%). For the full 12 months, growth stocks outpaced value, while large-caps handily bested small-caps. By sector, information technology (+19%) led the way, boosted by continued strength in software & services (+26%), the market’s largest industry segment. Three defensive groups also stood out – real estate (+18%), utilities (+17%) and consumer staples (+15%) – followed by consumer discretionary (+10%) and communication services (+8%). In contrast, energy (-16%) was by far the weakest sector. Other notable laggards included materials (0%), financials (+3%), industrials (+4%) and health care (+4%).Comments from Portfolio Manager Patrick Venanzi: For the fiscal year, the fund returned 6.14%, notably outpacing the -1.22% result of the Russell 2000® Growth Index. Security selection overwhelmingly drove the fund’s outperformance of the benchmark the past 12 months, with sector positioning also contributing, but to a much lesser degree. Investment choices within the health care sector helped by far the most. Leading the way in terms of individual contributors was the fund’s out-of-benchmark stake in Masimo (+59%), a manufacturer of non-invasive patient-monitoring technologies. Shares of the company outperformed amid accelerating revenue growth, in part due to a recent partnership with Philips, a former competitor. Insulet (+48%), a non-index maker of wearable insulin infusion pumps for diabetics, as well as Array Biopharma (+219%), a cancer drug developer (no longer held at period end) also were major relative contributors stemming from the health care sector. Conversely, the portfolio’s out-of-index position in longtime fund holding 2U (-83%) was the biggest relative detractor this period. The firm offers cloud-based online campuses and learning platforms for nonprofit colleges and universities. Despite strong quarterly financial results and efforts to step up its multiyear program launch targets, the stock fell along with other software companies in December, while two of their more mature programs saw enrollment decline a bit. Lastly, an overweighting in weight-loss management company Weight Watchers, which we parted ways with prior to July 31, also weighed on the fund’s relative result.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Note to Shareholders: Following a three-month leave of absence, Pat Venanzi returned to Fidelity on August 30, 2018, and resumed his day-to-day responsibilities as Portfolio Manager. In his stead, Jennifer Fo Cardillo and Slava Kruzement-Prykhodko served as interim managers of the fund.Investment Summary (Unaudited)
Top Ten Stocks as of July 31, 2019
| % of fund's net assets | |
| Verra Mobility Corp. | 2.2 |
| CarGurus, Inc. Class A | 1.7 |
| Insulet Corp. | 1.7 |
| Grand Canyon Education, Inc. | 1.6 |
| Integer Holdings Corp. | 1.5 |
| Generac Holdings, Inc. | 1.4 |
| Churchill Downs, Inc. | 1.3 |
| Cardlytics, Inc. | 1.2 |
| First Cash Financial Services, Inc. | 1.2 |
| Masimo Corp. | 1.2 |
| 15.0 |
Top Five Market Sectors as of July 31, 2019
| % of fund's net assets | |
| Health Care | 25.7 |
| Information Technology | 20.4 |
| Industrials | 15.1 |
| Consumer Discretionary | 14.7 |
| Financials | 8.1 |
Asset Allocation (% of fund's net assets)
| As of July 31, 2019* | ||
| Stocks | 97.6% | |
| Convertible Securities | 0.9% | |
| Short-Term Investments and Net Other Assets (Liabilities) | 1.5% | |
* Foreign investments - 10.9%
Schedule of Investments July 31, 2019
Showing Percentage of Net Assets
| Common Stocks - 97.6% | |||
| Shares | Value | ||
| COMMUNICATION SERVICES - 5.4% | |||
| Diversified Telecommunication Services - 0.6% | |||
| Bandwidth, Inc. (a) | 16,261 | $1,211,445 | |
| Iridium Communications, Inc. (a) | 139,869 | 3,558,267 | |
| 4,769,712 | |||
| Entertainment - 1.0% | |||
| Gaia, Inc. Class A (a)(b) | 229,731 | 1,327,845 | |
| World Wrestling Entertainment, Inc. Class A | 94,215 | 6,856,968 | |
| 8,184,813 | |||
| Interactive Media & Services - 1.9% | |||
| CarGurus, Inc. Class A (a) | 376,057 | 14,015,644 | |
| Eventbrite, Inc. | 83,786 | 1,482,174 | |
| 15,497,818 | |||
| Media - 1.6% | |||
| Gray Television, Inc. (a) | 240,158 | 4,262,805 | |
| Nexstar Broadcasting Group, Inc. Class A | 49,169 | 5,003,929 | |
| Tegna, Inc. | 145,952 | 2,217,011 | |
| The New York Times Co. Class A | 65,577 | 2,339,787 | |
| 13,823,532 | |||
| Wireless Telecommunication Services - 0.3% | |||
| Boingo Wireless, Inc. (a) | 183,266 | 2,752,655 | |
| TOTAL COMMUNICATION SERVICES | 45,028,530 | ||
| CONSUMER DISCRETIONARY - 14.7% | |||
| Diversified Consumer Services - 5.5% | |||
| Afya Ltd. | 82,723 | 2,392,349 | |
| Arco Platform Ltd. Class A | 170,384 | 7,520,750 | |
| Bright Horizons Family Solutions, Inc. (a) | 34,385 | 5,228,927 | |
| Grand Canyon Education, Inc. (a) | 124,748 | 13,568,840 | |
| Laureate Education, Inc. Class A (a) | 378,659 | 6,206,221 | |
| ServiceMaster Global Holdings, Inc. (a) | 132,331 | 7,043,979 | |
| Strategic Education, Inc. | 22,617 | 4,025,600 | |
| 45,986,666 | |||
| Hotels, Restaurants & Leisure - 2.7% | |||
| Churchill Downs, Inc. | 90,957 | 10,883,005 | |
| Eldorado Resorts, Inc. (a) | 61,668 | 2,782,460 | |
| Planet Fitness, Inc. (a) | 86,244 | 6,783,953 | |
| SeaWorld Entertainment, Inc. (a) | 77,058 | 2,355,663 | |
| 22,805,081 | |||
| Household Durables - 2.0% | |||
| Helen of Troy Ltd. (a) | 65,727 | 9,746,000 | |
| Skyline Champion Corp. (a) | 232,633 | 6,630,041 | |
| 16,376,041 | |||
| Internet & Direct Marketing Retail - 1.0% | |||
| Etsy, Inc. (a) | 123,198 | 8,256,730 | |
| The RealReal, Inc. | 1,717 | 42,152 | |
| 8,298,882 | |||
| Leisure Products - 0.4% | |||
| OneSpaWorld Holdings Ltd. (a)(b) | 189,873 | 2,973,411 | |
| Multiline Retail - 0.3% | |||
| Ollie's Bargain Outlet Holdings, Inc. (a) | 34,391 | 2,912,574 | |
| Specialty Retail - 1.9% | |||
| Aaron's, Inc. Class A | 52,500 | 3,310,125 | |
| Five Below, Inc. (a) | 54,069 | 6,350,945 | |
| The Children's Place Retail Stores, Inc. (b) | 64,714 | 6,320,616 | |
| 15,981,686 | |||
| Textiles, Apparel & Luxury Goods - 0.9% | |||
| Deckers Outdoor Corp. (a) | 33,049 | 5,164,898 | |
| Revolve Group, Inc. (b) | 66,743 | 2,300,631 | |
| 7,465,529 | |||
| TOTAL CONSUMER DISCRETIONARY | 122,799,870 | ||
| CONSUMER STAPLES - 4.5% | |||
| Beverages - 0.1% | |||
| Luckin Coffee, Inc. ADR (b) | 41,913 | 1,018,067 | |
| Food & Staples Retailing - 2.3% | |||
| BJ's Wholesale Club Holdings, Inc. (a) | 276,202 | 6,507,319 | |
| Grocery Outlet Holding Corp. | 124,098 | 4,832,376 | |
| Performance Food Group Co. (a) | 183,653 | 8,053,184 | |
| 19,392,879 | |||
| Food Products - 1.6% | |||
| Darling International, Inc. (a) | 109,957 | 2,235,426 | |
| Freshpet, Inc. (a) | 50,200 | 2,266,530 | |
| Nomad Foods Ltd. (a) | 200,677 | 4,469,077 | |
| Post Holdings, Inc. (a) | 41,666 | 4,467,429 | |
| 13,438,462 | |||
| Household Products - 0.5% | |||
| Central Garden & Pet Co. (a) | 57,097 | 1,734,607 | |
| Central Garden & Pet Co. Class A (non-vtg.) (a) | 69,101 | 1,903,733 | |
| 3,638,340 | |||
| TOTAL CONSUMER STAPLES | 37,487,748 | ||
| ENERGY - 0.5% | |||
| Oil, Gas & Consumable Fuels - 0.5% | |||
| Kosmos Energy Ltd. | 299,660 | 1,800,957 | |
| PDC Energy, Inc. (a) | 57,593 | 1,654,647 | |
| Renewable Energy Group, Inc. (a) | 67,372 | 915,585 | |
| 4,371,189 | |||
| FINANCIALS - 8.1% | |||
| Banks - 1.2% | |||
| First Citizens Bancshares, Inc. | 15,100 | 7,052,002 | |
| Popular, Inc. | 54,177 | 3,118,428 | |
| 10,170,430 | |||
| Capital Markets - 2.7% | |||
| Apollo Global Management LLC Class A | 93,658 | 3,090,714 | |
| Hamilton Lane, Inc. Class A | 49,163 | 2,885,868 | |
| LPL Financial | 89,462 | 7,503,178 | |
| Morningstar, Inc. | 55,658 | 8,458,903 | |
| 21,938,663 | |||
| Consumer Finance - 1.2% | |||
| First Cash Financial Services, Inc. | 101,675 | 10,232,572 | |
| Diversified Financial Services - 0.3% | |||
| Cannae Holdings, Inc. (a) | 90,979 | 2,633,842 | |
| Insurance - 1.7% | |||
| eHealth, Inc. (a) | 33,242 | 3,448,858 | |
| Enstar Group Ltd. (a) | 15,817 | 2,801,982 | |
| Primerica, Inc. | 59,737 | 7,329,133 | |
| 13,579,973 | |||
| Thrifts & Mortgage Finance - 1.0% | |||
| Essent Group Ltd. | 122,834 | 5,670,017 | |
| LendingTree, Inc. (a) | 8,469 | 2,731,591 | |
| 8,401,608 | |||
| TOTAL FINANCIALS | 66,957,088 | ||
| HEALTH CARE - 25.6% | |||
| Biotechnology - 9.9% | |||
| Abeona Therapeutics, Inc. (a) | 141,309 | 365,990 | |
| Acceleron Pharma, Inc. (a) | 95,317 | 4,161,540 | |
| Acorda Therapeutics, Inc. (a) | 57,759 | 400,270 | |
| Alder Biopharmaceuticals, Inc. (a)(b) | 211,350 | 2,138,862 | |
| Allakos, Inc. (a) | 67,304 | 2,340,160 | |
| AnaptysBio, Inc. (a) | 35,705 | 1,917,716 | |
| Arena Pharmaceuticals, Inc. (a) | 55,867 | 3,501,744 | |
| Argenx SE ADR (a) | 41,692 | 5,856,058 | |
| Ascendis Pharma A/S sponsored ADR (a) | 66,580 | 7,707,301 | |
| Atara Biotherapeutics, Inc. (a) | 3,533 | 50,416 | |
| Audentes Therapeutics, Inc. (a) | 68,136 | 2,651,853 | |
| Blueprint Medicines Corp. (a) | 79,782 | 7,990,167 | |
| Crinetics Pharmaceuticals, Inc. (a)(b) | 41,569 | 843,019 | |
| FibroGen, Inc. (a) | 119,303 | 5,638,260 | |
| Five Prime Therapeutics, Inc. (a) | 41,743 | 213,307 | |
| Global Blood Therapeutics, Inc. (a) | 99,609 | 5,458,573 | |
| Gritstone Oncology, Inc. (b) | 111,930 | 1,175,265 | |
| Heron Therapeutics, Inc. (a) | 115,855 | 2,020,511 | |
| Iovance Biotherapeutics, Inc. (a) | 117,006 | 2,877,178 | |
| Kezar Life Sciences, Inc. (a) | 47,349 | 266,575 | |
| Kura Oncology, Inc. (a) | 92,701 | 1,772,443 | |
| Mirati Therapeutics, Inc. (a) | 34,691 | 3,670,308 | |
| Morphosys AG (a) | 23,585 | 2,853,669 | |
| Neurocrine Biosciences, Inc. (a) | 36,360 | 3,504,740 | |
| Sarepta Therapeutics, Inc. (a) | 44,841 | 6,674,583 | |
| Savara, Inc. (a) | 59,402 | 150,881 | |
| The Medicines Company (a) | 69,155 | 2,478,515 | |
| TransMedics Group, Inc. (b) | 153,409 | 3,640,396 | |
| 82,320,300 | |||
| Health Care Equipment & Supplies - 8.2% | |||
| Axonics Modulation Technologies, Inc. (a)(b) | 113,891 | 4,179,800 | |
| Cerus Corp. (a) | 98,747 | 577,670 | |
| CONMED Corp. | 50,721 | 4,430,479 | |
| Haemonetics Corp. (a) | 41,794 | 5,102,212 | |
| Hill-Rom Holdings, Inc. | 64,330 | 6,860,151 | |
| Insulet Corp. (a) | 112,554 | 13,837,389 | |
| Integer Holdings Corp. (a) | 146,185 | 12,795,573 | |
| Integra LifeSciences Holdings Corp. (a) | 44,307 | 2,808,621 | |
| Masimo Corp. (a) | 63,704 | 10,055,676 | |
| Novocure Ltd. (a) | 66,847 | 5,563,007 | |
| Quanterix Corp. (a) | 78,502 | 2,431,992 | |
| Vapotherm, Inc. | 11,590 | 186,483 | |
| 68,829,053 | |||
| Health Care Providers & Services - 3.0% | |||
| Chemed Corp. | 15,900 | 6,445,701 | |
| G1 Therapeutics, Inc. (a) | 93,789 | 2,326,905 | |
| LHC Group, Inc. (a) | 55,765 | 7,058,734 | |
| Molina Healthcare, Inc. (a) | 69,094 | 9,174,301 | |
| 25,005,641 | |||
| Health Care Technology - 1.5% | |||
| Health Catalyst, Inc. | 11,999 | 530,956 | |
| HMS Holdings Corp. (a) | 183,638 | 6,408,966 | |
| Inovalon Holdings, Inc. Class A (a) | 379,510 | 5,692,650 | |
| 12,632,572 | |||
| Life Sciences Tools & Services - 1.4% | |||
| Bruker Corp. | 69,200 | 3,311,220 | |
| ICON PLC (a) | 53,850 | 8,409,755 | |
| 11,720,975 | |||
| Pharmaceuticals - 1.6% | |||
| GW Pharmaceuticals PLC ADR (a)(b) | 7,360 | 1,194,528 | |
| Horizon Pharma PLC (a) | 197,397 | 4,913,211 | |
| Morphic Holding, Inc. (b) | 68,013 | 1,535,734 | |
| Theravance Biopharma, Inc. (a) | 43,409 | 905,078 | |
| Turning Point Therapeutics, Inc. | 26,258 | 1,046,119 | |
| Xeris Pharmaceuticals, Inc. (a) | 69,126 | 808,774 | |
| Zogenix, Inc. (a) | 53,708 | 2,587,114 | |
| 12,990,558 | |||
| TOTAL HEALTH CARE | 213,499,099 | ||
| INDUSTRIALS - 15.1% | |||
| Aerospace & Defense - 2.1% | |||
| HEICO Corp. Class A | 62,993 | 6,638,832 | |
| Moog, Inc. Class A | 71,445 | 5,819,910 | |
| Teledyne Technologies, Inc. (a) | 18,094 | 5,270,420 | |
| 17,729,162 | |||
| Airlines - 0.6% | |||
| SkyWest, Inc. | 90,220 | 5,477,256 | |
| Building Products - 0.6% | |||
| Armstrong World Industries, Inc. | 55,937 | 5,465,604 | |
| Commercial Services & Supplies - 0.4% | |||
| Copart, Inc. (a) | 42,790 | 3,317,509 | |
| Construction & Engineering - 2.5% | |||
| Argan, Inc. | 61,683 | 2,538,255 | |
| Dycom Industries, Inc. (a) | 106,863 | 5,894,563 | |
| Jacobs Engineering Group, Inc. | 49,583 | 4,091,093 | |
| MasTec, Inc. (a) | 158,652 | 8,142,021 | |
| 20,665,932 | |||
| Electrical Equipment - 1.4% | |||
| Generac Holdings, Inc. (a) | 160,927 | 11,635,022 | |
| Industrial Conglomerates - 0.8% | |||
| ITT, Inc. | 103,350 | 6,451,107 | |
| Machinery - 3.2% | |||
| AGCO Corp. | 62,917 | 4,844,609 | |
| Allison Transmission Holdings, Inc. | 119,148 | 5,474,851 | |
| Luxfer Holdings PLC sponsored | 161,486 | 3,200,653 | |
| Toro Co. | 44,587 | 3,246,825 | |
| Woodward, Inc. | 89,550 | 10,033,182 | |
| 26,800,120 | |||
| Marine - 0.3% | |||
| SITC International Holdings Co. Ltd. | 2,182,000 | 2,405,091 | |
| Professional Services - 2.6% | |||
| Asgn, Inc. (a) | 50,218 | 3,166,245 | |
| Exponent, Inc. | 100,457 | 6,911,442 | |
| FTI Consulting, Inc. (a) | 77,986 | 8,145,638 | |
| Insperity, Inc. | 29,364 | 3,122,861 | |
| 21,346,186 | |||
| Road & Rail - 0.6% | |||
| Genesee & Wyoming, Inc. Class A (a) | 44,068 | 4,839,107 | |
| TOTAL INDUSTRIALS | 126,132,096 | ||
| INFORMATION TECHNOLOGY - 19.6% | |||
| Communications Equipment - 0.3% | |||
| ViaSat, Inc. (a) | 31,300 | 2,553,767 | |
| Electronic Equipment & Components - 1.4% | |||
| Fabrinet (a) | 82,207 | 4,412,872 | |
| SYNNEX Corp. | 28,828 | 2,840,711 | |
| Zebra Technologies Corp. Class A (a) | 19,348 | 4,080,300 | |
| 11,333,883 | |||
| IT Services - 7.1% | |||
| Booz Allen Hamilton Holding Corp. Class A | 82,492 | 5,671,325 | |
| Elastic NV (b) | 60,381 | 5,967,454 | |
| EPAM Systems, Inc. (a) | 21,616 | 4,188,965 | |
| Euronet Worldwide, Inc. (a) | 29,616 | 4,617,431 | |
| Interxion Holding N.V. (a) | 38,102 | 2,869,081 | |
| KBR, Inc. | 103,922 | 2,741,462 | |
| MongoDB, Inc. Class A (a)(b) | 43,679 | 6,255,706 | |
| Okta, Inc. (a) | 44,740 | 5,853,334 | |
| Verra Mobility Corp. (a)(b) | 1,295,815 | 17,947,037 | |
| WEX, Inc. (a) | 15,994 | 3,487,812 | |
| 59,599,607 | |||
| Semiconductors & Semiconductor Equipment - 1.5% | |||
| Advanced Energy Industries, Inc. (a) | 127,322 | 7,435,605 | |
| Entegris, Inc. | 113,136 | 4,922,547 | |
| 12,358,152 | |||
| Software - 9.3% | |||
| 2U, Inc. (a)(b) | 250,068 | 3,200,870 | |
| Alteryx, Inc. Class A (a) | 52,808 | 6,207,052 | |
| Black Knight, Inc. (a) | 86,616 | 5,484,525 | |
| Cardlytics, Inc. (a)(b) | 368,449 | 10,463,952 | |
| DocuSign, Inc. (a) | 59,218 | 3,062,755 | |
| Everbridge, Inc. (a) | 54,403 | 5,565,427 | |
| Five9, Inc. (a) | 60,311 | 2,977,554 | |
| HubSpot, Inc. (a) | 44,646 | 7,979,133 | |
| Lightspeed POS, Inc. (a) | 138,300 | 4,153,820 | |
| LivePerson, Inc. (a) | 76,744 | 2,547,133 | |
| Medallia, Inc. | 1,300 | 51,805 | |
| Nuance Communications, Inc. (a) | 129,780 | 2,159,539 | |
| Pluralsight, Inc. (a) | 198,836 | 6,102,277 | |
| PROS Holdings, Inc. (a) | 82,079 | 5,939,236 | |
| RingCentral, Inc. (a) | 36,382 | 5,165,516 | |
| ShotSpotter, Inc. (a)(b) | 33,881 | 1,273,587 | |
| SurveyMonkey | 133,177 | 2,260,014 | |
| Workiva, Inc. (a) | 55,826 | 3,209,437 | |
| 77,803,632 | |||
| TOTAL INFORMATION TECHNOLOGY | 163,649,041 | ||
| MATERIALS - 1.8% | |||
| Chemicals - 1.1% | |||
| Olin Corp. | 222,487 | 4,465,314 | |
| Orion Engineered Carbons SA | 213,459 | 4,158,181 | |
| 8,623,495 | |||
| Containers & Packaging - 0.7% | |||
| Aptargroup, Inc. | 30,391 | 3,677,919 | |
| Avery Dennison Corp. | 18,712 | 2,149,447 | |
| 5,827,366 | |||
| Paper & Forest Products - 0.0% | |||
| Quintis Ltd. (a)(c) | 928,453 | 6 | |
| TOTAL MATERIALS | 14,450,867 | ||
| REAL ESTATE - 2.3% | |||
| Equity Real Estate Investment Trusts (REITs) - 2.3% | |||
| Americold Realty Trust | 195,876 | 6,567,722 | |
| Essential Properties Realty Trust, Inc. | 173,000 | 3,653,760 | |
| Store Capital Corp. | 116,829 | 3,996,720 | |
| Terreno Realty Corp. | 103,921 | 5,077,580 | |
| 19,295,782 | |||
| TOTAL COMMON STOCKS | |||
| (Cost $687,072,381) | 813,671,310 | ||
| Convertible Preferred Stocks - 0.9% | |||
| HEALTH CARE - 0.1% | |||
| Biotechnology - 0.1% | |||
| REVOLUTION Medicines, Inc. Series C (c)(d) | 381,611 | 786,119 | |
| INFORMATION TECHNOLOGY - 0.8% | |||
| Software - 0.8% | |||
| Compass, Inc.: | |||
| Series E (a)(c)(d) | 16,661 | 2,632,670 | |
| Series F (c)(d) | 27,147 | 4,187,941 | |
| 6,820,611 | |||
| TOTAL CONVERTIBLE PREFERRED STOCKS | |||
| (Cost $5,129,193) | 7,606,730 | ||
| Money Market Funds - 8.0% | |||
| Fidelity Cash Central Fund 2.43% (e) | 15,934,269 | 15,937,456 | |
| Fidelity Securities Lending Cash Central Fund 2.43% (e)(f) | 50,301,240 | 50,306,270 | |
| TOTAL MONEY MARKET FUNDS | |||
| (Cost $66,243,532) | 66,243,726 | ||
| TOTAL INVESTMENT IN SECURITIES - 106.5% | |||
| (Cost $758,445,106) | 887,521,766 | ||
| NET OTHER ASSETS (LIABILITIES) - (6.5)% | (53,777,568) | ||
| NET ASSETS - 100% | $833,744,198 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Level 3 security
(d) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $7,606,730 or 0.9% of net assets.
(e) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(f) Investment made with cash collateral received from securities on loan.
Additional information on each restricted holding is as follows:
| Security | Acquisition Date | Acquisition Cost |
| Compass, Inc. Series E | 11/3/17 | $1,124,254 |
| Compass, Inc. Series F | 10/22/18 | $3,218,820 |
| REVOLUTION Medicines, Inc. Series C | 6/3/19 | $786,119 |
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 | $497,502 |
| Fidelity Securities Lending Cash Central Fund | 256,551 |
| Total | $754,053 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable. Amount for Fidelity Securities Lending Cash Central Fund 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.
Investment Valuation
The following is a summary of the inputs used, as of July 31, 2019, 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 below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| Valuation Inputs at Reporting Date: | ||||
| Description | Total | Level 1 | Level 2 | Level 3 |
| Investments in Securities: | ||||
| Equities: | ||||
| Communication Services | $45,028,530 | $45,028,530 | $-- | $-- |
| Consumer Discretionary | 122,799,870 | 122,799,870 | -- | -- |
| Consumer Staples | 37,487,748 | 37,487,748 | -- | -- |
| Energy | 4,371,189 | 4,371,189 | -- | -- |
| Financials | 66,957,088 | 66,957,088 | -- | -- |
| Health Care | 214,285,218 | 213,499,099 | -- | 786,119 |
| Industrials | 126,132,096 | 123,727,005 | 2,405,091 | -- |
| Information Technology | 170,469,652 | 163,649,041 | -- | 6,820,611 |
| Materials | 14,450,867 | 14,450,861 | -- | 6 |
| Real Estate | 19,295,782 | 19,295,782 | -- | -- |
| Money Market Funds | 66,243,726 | 66,243,726 | -- | -- |
| Total Investments in Securities: | $887,521,766 | $877,509,939 | $2,405,091 | $7,606,736 |
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
| United States of America | 89.1% |
| Bermuda | 2.3% |
| Netherlands | 1.7% |
| Ireland | 1.6% |
| Others (Individually Less Than 1%) | 5.3% |
| 100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
| July 31, 2019 | ||
| Assets | ||
| Investment in securities, at value (including securities loaned of $45,851,102) — See accompanying schedule: Unaffiliated issuers (cost $692,201,574) | $821,278,040 | |
| Fidelity Central Funds (cost $66,243,532) | 66,243,726 | |
| Total Investment in Securities (cost $758,445,106) | $887,521,766 | |
| Receivable for investments sold | 5,707,554 | |
| Receivable for fund shares sold | 473,857 | |
| Dividends receivable | 48,607 | |
| Distributions receivable from Fidelity Central Funds | 44,131 | |
| Other receivables | 7,219 | |
| Total assets | 893,803,134 | |
| Liabilities | ||
| Payable for investments purchased | $8,923,019 | |
| Payable for fund shares redeemed | 409,902 | |
| Accrued management fee | 422,397 | |
| Collateral on securities loaned | 50,303,618 | |
| Total liabilities | 60,058,936 | |
| Net Assets | $833,744,198 | |
| Net Assets consist of: | ||
| Paid in capital | $738,755,063 | |
| Total distributable earnings (loss) | 94,989,135 | |
| Net Assets, for 59,739,792 shares outstanding | $833,744,198 | |
| Net Asset Value, offering price and redemption price per share ($833,744,198 ÷ 59,739,792 shares) | $13.96 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| Year ended July 31, 2019 | ||
| Investment Income | ||
| Dividends | $2,898,849 | |
| Income from Fidelity Central Funds (including $256,551 from security lending) | 754,053 | |
| Total income | 3,652,902 | |
| Expenses | ||
| Management fee | $4,342,983 | |
| Independent trustees' fees and expenses | 3,742 | |
| Commitment fees | 1,872 | |
| Total expenses before reductions | 4,348,597 | |
| Expense reductions | (41,582) | |
| Total expenses after reductions | 4,307,015 | |
| Net investment income (loss) | (654,113) | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | (31,684,156) | |
| Fidelity Central Funds | 245 | |
| Foreign currency transactions | 2,637 | |
| Total net realized gain (loss) | (31,681,274) | |
| Change in net unrealized appreciation (depreciation) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | 69,312,941 | |
| Fidelity Central Funds | 194 | |
| Total change in net unrealized appreciation (depreciation) | 69,313,135 | |
| Net gain (loss) | 37,631,861 | |
| Net increase (decrease) in net assets resulting from operations | $36,977,748 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Year ended July 31, 2019 | Year ended July 31, 2018 | |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $(654,113) | $(176,063) |
| Net realized gain (loss) | (31,681,274) | 10,326,106 |
| Change in net unrealized appreciation (depreciation) | 69,313,135 | 59,820,458 |
| Net increase (decrease) in net assets resulting from operations | 36,977,748 | 69,970,501 |
| Distributions to shareholders | (11,807,695) | – |
| Distributions to shareholders from net investment income | – | (36,508) |
| Distributions to shareholders from net realized gain | – | (164,284) |
| Total distributions | (11,807,695) | (200,792) |
| Share transactions | ||
| Proceeds from sales of shares | 454,662,840 | 498,597,078 |
| Reinvestment of distributions | 11,807,695 | 200,792 |
| Cost of shares redeemed | (220,713,670) | (80,571,061) |
| Net increase (decrease) in net assets resulting from share transactions | 245,756,865 | 418,226,809 |
| Total increase (decrease) in net assets | 270,926,918 | 487,996,518 |
| Net Assets | ||
| Beginning of period | 562,817,280 | 74,820,762 |
| End of period | $833,744,198 | $562,817,280 |
| Other Information | ||
| Shares | ||
| Sold | 34,152,569 | 41,337,823 |
| Issued in reinvestment of distributions | 829,775 | 17,629 |
| Redeemed | (17,235,891) | (6,543,326) |
| Net increase (decrease) | 17,746,453 | 34,812,126 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Small Cap Growth K6 Fund
| Years ended July 31, | 2019 | 2018 | 2017 A |
| Selected Per–Share Data | |||
| Net asset value, beginning of period | $13.40 | $10.42 | $10.00 |
| Income from Investment Operations | |||
| Net investment income (loss)B | (.01) | (.01) | (.01) |
| Net realized and unrealized gain (loss) | .84 | 3.00 | .43 |
| Total from investment operations | .83 | 2.99 | .42 |
| Distributions from net investment income | – | –C | – |
| Distributions from net realized gain | (.27) | (.01) | – |
| Total distributions | (.27) | (.01) | – |
| Net asset value, end of period | $13.96 | $13.40 | $10.42 |
| Total ReturnD,E | 6.14% | 28.72% | 4.20% |
| Ratios to Average Net AssetsF,G | |||
| Expenses before reductions | .60% | .60% | .60%H |
| Expenses net of fee waivers, if any | .60% | .60% | .60%H |
| Expenses net of all reductions | .59% | .59% | .60%H |
| Net investment income (loss) | (.09)% | (.06)% | (.45)%H |
| Supplemental Data | |||
| Net assets, end of period (000 omitted) | $833,744 | $562,817 | $74,821 |
| Portfolio turnover rateI | 108%J | 114%J | 79%J,K |
A For the period May 25, 2017 (commencement of operations) to July 31, 2017.
B Calculated based on average shares outstanding during the period.
C Amount represents less than $.005 per share.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
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 Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
H Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
J Portfolio turnover rate excludes securities received or delivered in-kind.
K Amount not annualized.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended July 31, 2019
1. Organization.
Fidelity Small Cap Growth K6 Fund (the Fund) is a fund of Fidelity Securities Fund (the Trust) and is authorized to issue an unlimited number of shares. Share transactions on the Statement of Changes in Net Assets may contain exchanges between affiliated funds. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. Shares generally are available only to employer-sponsored retirement plans that are recordkept by Fidelity, or to certain employer-sponsored retirement plans that are not recordkept by Fidelity. Effective the close of business on February 2, 2018, the Fund was closed to new accounts with certain exceptions.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date ranged from less than .005% to .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investments Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of July 31, 2019 is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. 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 U.S. Federal income taxes is required. As of July 31, 2019, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to 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.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
| Gross unrealized appreciation | $160,982,651 |
| Gross unrealized depreciation | (34,379,354) |
| Net unrealized appreciation (depreciation) | $126,603,297 |
| Tax Cost | $760,918,469 |
The tax-based components of distributable earnings as of period end were as follows:
| Capital loss carryforward | $(30,874,193) |
| Net unrealized appreciation (depreciation) on securities and other investments | $126,603,297 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of fiscal period end and is subject to adjustment.
| Fiscal year of expiration | |
| No expiration | |
| Short-term | $(30,874,193) |
| Total capital loss carryforward | $(30,874,193) |
The Fund intends to elect to defer to its next fiscal year $739,968 of ordinary losses recognized during the period January 1, 2019 to July 31, 2019.
The tax character of distributions paid was as follows:
| July 31, 2019 | July 31, 2018 | |
| Ordinary Income | $11,763,636 | $ 182,538 |
| Long-term Capital Gains | 44,059 | 18,254 |
| Total | $11,807,695 | $ 200,792 |
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
New Rule Issuance. During August 2018, the U.S. Securities and Exchange Commission issued Final Rule Release No. 33-10532, Disclosure Update and Simplification. This Final Rule includes amendments specific to registered investment companies that are intended to eliminate overlap in disclosure requirements between Regulation S-X and GAAP. In accordance with these amendments, certain line-items in the Fund's financial statements have been combined or removed for the current period as outlined in the table below.
| Financial Statement | Current Line-Item Presentation (As Applicable) | Prior Line-Item Presentation (As Applicable) |
| Statement of Assets and Liabilities | Total distributable earnings (loss) | Undistributed/Distributions in excess of/Accumulated net investment income (loss) Accumulated/Undistributed net realized gain (loss) Net unrealized appreciation (depreciation) |
| Statement of Changes in Net Assets | N/A - removed | Undistributed/Distributions in excess of/Accumulated net investment income (loss) end of period |
| Statement of Changes in Net Assets | Distributions to shareholders | Distributions to shareholders from net investment income Distributions to shareholders from net realized gain |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and in-kind transactions, aggregated $786,181,560 and $755,743,845, respectively.
Unaffiliated Exchanges In-Kind. During the period, the Fund received investments and cash valued at $206,237,608 in exchange for 14,866,494 shares of the Fund. The amount of in-kind exchanges is included in share transactions in the accompanying Statement of Changes in Net Assets.
Prior Fiscal Year Unaffiliated Exchanges In-Kind. During the prior period, the Fund received investments and cash valued at $99,242,172 in exchange for 8,140,978 shares of the Fund. The amount of in-kind exchanges is included in share transactions in the accompanying Statement of Changes in Net Assets.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee that is based on an annual rate of .60% of average net assets. Under the management contract, the investment adviser or an affiliate pays all other expenses of the Fund, excluding fees and expenses of the independent Trustees, and certain miscellaneous expenses such as proxy and shareholder meeting expenses.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $34,426 for the period.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $1,872 and is reflected in Commitment fees on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. For equity securities, lending agents are used, including National Financial Services (NFS), an affiliate of the Fund. Pursuant to a securities lending agreement, NFS will receive a fee, which is capped at 9.9% of daily lending revenue, for its services as lending agent. The Fund may lend securities to certain qualified borrowers, including NFS. 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. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. The value of securities loaned to NFS, as affiliated borrower, at period end was $2,512,234. Total fees paid by the Fund to NFS, as lending agent, amounted to $489. 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 $56,680 from securities loaned to NFS, as affiliated borrower.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $39,903 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's expenses by $1,679.
9. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Fidelity Securities Fund and Shareholders of Fidelity Small Cap Growth K6 Fund:
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Fidelity Small Cap Growth K6 Fund (one of the funds constituting Fidelity Securities Fund, referred to hereafter as the “Fund”) as of July 31, 2019, the related statement of operations for the year ended July 31, 2019, the statement of changes in net assets for each of the two years in the period ended July 31, 2019, including the related notes, and the financial highlights for each of the two years in the period ended July 31, 2019 and for the period May 25,2017 (commencement of operations) through July 31, 2017 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of July 31, 2019, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended July 31,2019 and the financial highlights for each of the two years in the period ended July 31, 2019 and for the period May 25, 2017 (commencement of operations) through July 31, 2017 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of July 31, 2019 by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Boston, Massachusetts
September 13, 2019
We have served as the auditor of one or more investment companies in the Fidelity group of funds since 1932.
Trustees and Officers
The Trustees, Members of the Advisory Board (if any), and officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Except for Jonathan Chiel, each of the Trustees oversees 298 funds. Mr. Chiel oversees 170 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the fund is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund’s Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-835-5092.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Board Structure and Oversight Function. James C. Curvey is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Ned C. Lautenbach serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and other equity funds. The asset allocation funds may invest in Fidelity® funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Jonathan Chiel (1957)
Year of Election or Appointment: 2016
Trustee
Mr. Chiel also serves as Trustee of other Fidelity® funds. Mr. Chiel is Executive Vice President and General Counsel for FMR LLC (diversified financial services company, 2012-present). Previously, Mr. Chiel served as general counsel (2004-2012) and senior vice president and deputy general counsel (2000-2004) for John Hancock Financial Services; a partner with Choate, Hall & Stewart (1996-2000) (law firm); and an Assistant United States Attorney for the United States Attorney’s Office of the District of Massachusetts (1986-95), including Chief of the Criminal Division (1993-1995). Mr. Chiel is a director on the boards of the Boston Bar Foundation and the Maimonides School.
James C. Curvey (1935)
Year of Election or Appointment: 2007
Trustee
Chairman of the Board of Trustees
Mr. Curvey also serves as Trustee of other Fidelity® funds. Mr. Curvey is Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey is an Overseer Emeritus for the Boston Symphony Orchestra, a Director of Artis-Naples, and a Trustee of Brewster Academy in Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-2018), Director of Fidelity Investments Money Management, Inc. (investment adviser firm, 2009-2014) and a Director of FMR and FMR Co., Inc. (investment adviser firms, 2007-2014).
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), as a member of the Independent Directors Council (IDC) Governing Council (2010-2015), and as a member of the Board of Directors for The Brookville Center for Children’s Services, Inc. (2009-2017). Mr. Dirks is a member of the Finance Committee (2016-present) and Board of Directors (2017-present) and is Treasurer (2018-present) of the Asolo Repertory Theatre.
Donald F. Donahue (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Donahue also serves as a Trustee of other Fidelity® funds. Mr. Donahue is President and Chief Executive Officer of Miranda Partners, LLC (risk consulting for the financial services industry, 2012-present). Previously, Mr. Donahue served as a Member of the Advisory Board of certain Fidelity® funds (2015-2018) and Chief Executive Officer (2006-2012), Chief Operating Officer (2003-2006), and Managing Director, Customer Marketing and Development (1999-2003) of The Depository Trust & Clearing Corporation (financial markets infrastructure). Mr. Donahue serves as a Member (2007-present) and Co-Chairman (2016-present) of the Board of Directors of United Way of New York, Member of the Board of Directors of NYC Leadership Academy (2012-present) and Member of the Board of Advisors of Ripple Labs, Inc. (financial services, 2015-present). He also served as Chairman (2010-2012) and Member of the Board of Directors (2012-2013) of Omgeo, LLC (financial services), Treasurer of United Way of New York (2012-2016), and Member of the Board of Directors of XBRL US (financial services non-profit, 2009-2012) and the International Securities Services Association (2009-2012).
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2014-2017) and a member (2010-2017) of the Board of Directors of Dave & Buster’s Entertainment, Inc. (restaurant and entertainment complexes), as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association, and as a member of the Board of Directors for The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), Earth Fare, Inc. (retail grocery, 2010-2014), and The Western Union Company (global money transfer, 2006-2011).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as Chair (2018-present) and Member (2013-present) of the Board of Governors, State University System of Florida and is a member of the Council on Foreign Relations (1994-present). He is also a member and has most recently served as Chairman of the Board of Directors of Artis-Naples (2012-present). Previously, Mr. Lautenbach served as a member and then Lead Director of the Board of Directors of Eaton Corporation (diversified industrial, 1997-2016). He was also a Partner and Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007). In addition, Mr. Lautenbach also had a 30-year career with IBM (technology company) during which time he served as Senior Vice President and a member of the Corporate Executive Committee (1968-1998).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-2018).
Cornelia M. Small (1944)
Year of Election or Appointment: 2005
Trustee
Ms. Small also serves as Trustee of other Fidelity® funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.
Garnett A. Smith (1947)
Year of Election or Appointment: 2018
Trustee
Mr. Smith also serves as Trustee of other Fidelity® funds. Prior to Mr. Smith's retirement, he served as Chairman and Chief Executive Officer of Inbrand Corp. (manufacturer of personal absorbent products, 1990-1997). He also served as President (1986-1990) of Inbrand Corp. Prior to his employment with Inbrand Corp., he was employed by a retail fabric chain and North Carolina National Bank. In addition, Mr. Smith served as a Member of the Advisory Board of certain Fidelity® funds (2012-2013) and as a board member of the Jackson Hole Land Trust (2009-2012).
David M. Thomas (1949)
Year of Election or Appointment: 2008
Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present) and as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), a Director of Fortune Brands, Inc. (consumer products, 2000-2011), and a member of the Board of Trustees of the University of Florida (2013-2018).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Advisory Board Members and Officers:
Correspondence intended for a Member of the Advisory Board (if any) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235. Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Vicki L. Fuller (1957)
Year of Election or Appointment: 2018
Member of the Advisory Board
Ms. Fuller also serves as Member of the Advisory Board of other Fidelity® funds. Ms. Fuller serves as a member of the Board of Directors, Audit Committee, and Nominating and Governance Committee of The Williams Companies, Inc. (natural gas infrastructure, 2018-present). Previously, Ms. Fuller served as the Chief Investment Officer of the New York State Common Retirement Fund (2012-2018) and held a variety of positions at AllianceBernstein L.P. (global asset management, 1985-2012), including Managing Director (2006-2012) and Senior Vice President and Senior Portfolio Manager (2001-2006).
Peter S. Lynch (1944)
Year of Election or Appointment: 2003
Member of the Advisory Board
Mr. Lynch also serves as Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of FMR (investment adviser firm) and FMR Co., Inc. (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).
Michael E. Wiley (1950)
Year of Election or Appointment: 2018
Member of the Advisory Board
Mr. Wiley also serves as Trustee or Member of the Advisory Board of other Fidelity® funds. Mr. Wiley serves as a Director of High Point Resources (exploration and production, 2005-present). Previously, Mr. Wiley served as a Director of Andeavor Corporation (independent oil refiner and marketer, 2005-2018), a Director of Andeavor Logistics LP (natural resources logistics, 2015-2018), a Director of Post Oak Bank (privately-held bank, 2004-2018), a Director of Asia Pacific Exploration Consolidated (international oil and gas exploration and production, 2008-2013), a member of the Board of Trustees of the University of Tulsa (2000-2006; 2007-2010), a Senior Energy Advisor of Katzenbach Partners, LLC (consulting, 2006-2007), an Advisory Director of Riverstone Holdings (private investment), a Director of Spinnaker Exploration Company (exploration and production, 2001-2005) and Chairman, President, and CEO of Baker Hughes, Inc. (oilfield services, 2000-2004).
Elizabeth Paige Baumann (1968)
Year of Election or Appointment: 2017
Anti-Money Laundering (AML) Officer
Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer (2012-present) and Senior Vice President (2014-present) of FMR LLC (diversified financial services company) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as AML Officer of the funds (2012-2016), and Vice President (2007-2014) and Deputy Anti-Money Laundering Officer (2007-2012) of FMR LLC.
Craig S. Brown (1977)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Brown also serves as Assistant Treasurer of other funds. Mr. Brown is an employee of Fidelity Investments (2013-present).
John J. Burke III (1964)
Year of Election or Appointment: 2018
Chief Financial Officer
Mr. Burke also serves as Chief Financial Officer of other funds. Mr. Burke serves as Head of Investment Operations for Fidelity Fund and Investment Operations (2018-present) and is an employee of Fidelity Investments (1998-present). Previously Mr. Burke served as head of Asset Management Investment Operations (2012-2018).
William C. Coffey (1969)
Year of Election or Appointment: 2018
Secretary and Chief Legal Officer (CLO)
Mr. Coffey also serves as Secretary and CLO of other funds. Mr. Coffey serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2018-present); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2018-present); and CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2018-present). He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Assistant Secretary of certain funds (2009-2018) and as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Timothy M. Cohen (1969)
Year of Election or Appointment: 2018
Vice President
Mr. Cohen also serves as Vice President of other funds. Mr. Cohen serves as Executive Vice President of Fidelity SelectCo, LLC (2019-present), Co-Head of Equity (2018-present), a Director of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present), and is an employee of Fidelity Investments. Previously, Mr. Cohen served as Head of Global Equity Research (2016-2018), Chief Investment Officer - Equity and a Director of Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2013-2015) and as a Director of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2017).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds. Mr. Davis serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present), and is an employee of Fidelity Investments (2008-present). Previously, Mr. Deberghes served as President and Treasurer of certain Fidelity® funds (2013-2018). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). Previously, Mr. Deberghes served in other fund officer roles.
Laura M. Del Prato (1964)
Year of Election or Appointment: 2018
Assistant Treasurer
Ms. Del Prato also serves as an officer of other funds. Ms. Del Prato is an employee of Fidelity Investments (2017-present). Prior to joining Fidelity Investments, Ms. Del Prato served as a Managing Director and Treasurer of the JPMorgan Mutual Funds (2014-2017). Prior to JPMorgan, Ms. Del Prato served as a partner at Cohen Fund Audit Services (accounting firm, 2012-2013) and KPMG LLP (accounting firm, 2004-2012).
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2005-present). Previously, Mr. Hogan served as Assistant Treasurer of certain Fidelity® funds (2016-2018).
Pamela R. Holding (1964)
Year of Election or Appointment: 2018
Vice President
Ms. Holding also serves as Vice President of other funds. Ms. Holding serves as Executive Vice President of Fidelity SelectCo, LLC (2019-present), Co-Head of Equity (2018-present) and is an employee of Fidelity Investments (2013-present). Previously, Ms. Holding served as Chief Investment Officer of Fidelity Institutional Asset Management (2013-2018).
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight, serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. Ms. Smith serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), is an employee of Fidelity Investments (2009-present), and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Assistant Treasurer (2013-2018) and Deputy Treasurer (2013-2016) of certain Fidelity® funds.
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
Jim Wegmann (1979)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Wegmann also serves as Assistant Treasurer of other funds. Mr. Wegmann is an employee of Fidelity Investments (2011-present).
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (February 1, 2019 to July 31, 2019).
Actual Expenses
The first line of the accompanying table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. 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.
| Annualized Expense Ratio-A | Beginning Account Value February 1, 2019 | Ending Account Value July 31, 2019 | Expenses Paid During Period-B February 1, 2019 to July 31, 2019 | |
| Actual | .60% | $1,000.00 | $1,146.10 | $3.19 |
| Hypothetical-C | $1,000.00 | $1,021.82 | $3.01 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
C 5% return per year before expenses
Distributions (Unaudited)
The fund designates 7% of the dividend distributed during the fiscal year as qualifying for the dividends–received deduction for corporate shareholders.
The fund designates 8% of the dividend distributed during the fiscal year as amounts which may be taken into account as a dividend for the purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code.
The fund will notify shareholders in January 2020 of amounts for use in preparing 2019 income tax returns.
SCPK6-ANN-0919
1.9884011.102
Fidelity® Small Cap Value Fund Annual Report July 31, 2019 Includes Fidelity and Fidelity Advisor share classes |
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Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of a fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a financial advisor, broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from a fund electronically, by contacting your financial intermediary. For Fidelity customers, visit Fidelity's web site or call Fidelity using the contact information listed below.
You may elect to receive all future reports in paper free of charge. If you wish to continue receiving paper copies of your shareholder reports, you may contact your financial intermediary or, if you are a Fidelity customer, visit Fidelity’s website, or call Fidelity at the applicable toll-free number listed below. Your election to receive reports in paper will apply to all funds held with the fund complex/your financial intermediary.
| Account Type | Website | Phone Number |
| Brokerage, Mutual Fund, or Annuity Contracts: | fidelity.com/mailpreferences | 1-800-343-3548 |
| Employer Provided Retirement Accounts: | netbenefits.fidelity.com/preferences (choose 'no' under Required Disclosures to continue to print) | 1-800-343-0860 |
| Advisor Sold Accounts Serviced Through Your Financial Intermediary: | Contact Your Financial Intermediary | Your Financial Intermediary's phone number |
| Advisor Sold Accounts Serviced by Fidelity: | institutional.fidelity.com | 1-877-208-0098 |
Contents
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-800-544-8544 if you’re an individual investing directly with Fidelity, call 1-800-835-5092 if you’re a plan sponsor or participant with Fidelity as your recordkeeper or call 1-877-208-0098 on institutional accounts or if you’re an advisor or invest through one 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. © 2019 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT. Forms N-PORT are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-PORT 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.institutional.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.
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
| For the periods ended July 31, 2019 | Past 1 year | Past 5 years | Past 10 years |
| Class A (incl. 5.75% sales charge) | (10.32)% | 5.77% | 11.12% |
| Class M (incl. 3.50% sales charge) | (8.40)% | 6.01% | 11.12% |
| Class C (incl. contingent deferred sales charge) | (6.33)% | 6.21% | 10.93% |
| Fidelity® Small Cap Value Fund | (4.58)% | 7.30% | 12.08% |
| Class I | (4.63)% | 7.31% | 12.09% |
| Class Z | (4.48)% | 7.34% | 12.10% |
Class C shares' contingent deferred sales charges included in the past one year, past five years and past ten years total return figures are 1%, 0% and 0%, respectively.
The initial offering of Class Z shares took place on October 2, 2018. Returns prior to October 2, 2018, are those of Class I.
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity® Small Cap Value Fund, a class of the fund, on July 31, 2009. The chart shows how the value of your investment would have changed, and also shows how the Russell 2000® Value Index performed over the same period.
| Period Ending Values | ||
| $31,274 | Fidelity® Small Cap Value Fund | |
| $28,891 | Russell 2000® Value Index | |
Management's Discussion of Fund Performance
Market Recap: The U.S. equity bellwether S&P 500® index gained 7.99% for the 12 months ending July 31, 2019, beginning the new year on a high note after enduring a historically volatile final quarter of 2018. Upbeat company earnings/outlooks and signs the Federal Reserve may pause on rates boosted stocks to an all-time high on April 30. In May, however, volatility spiked and stocks returned -6.35% for the month amid the Fed’s decision to hold interest rates steady and signal that it had little appetite to adjust them any time soon, as well as retaliatory tariffs imposed on the U.S. by China. The downtrend was similar to late 2018, when many investors fled from risk assets on elevated concerns about future economic growth, global trade and tighter monetary policy. The bull market roared back in June, with the S&P 500® rising 7.05%, and recorded a series of all-time highs in a productive July (+1.44%). For the full 12 months, growth stocks outpaced value, while large-caps handily bested small-caps. By sector, information technology (+19%) led the way, boosted by continued strength in software & services (+26%), the market’s largest industry segment. Three defensive groups also stood out – real estate (+18%), utilities (+17%) and consumer staples (+15%) – followed by consumer discretionary (+10%) and communication services (+8%). In contrast, energy (-16%) was by far the weakest sector. Other notable laggards included materials (0%), financials (+3%), industrials (+4%) and health care (+4%).Comments from Lead Portfolio Manager Clint Lawrence: For the year, the fund's share classes returned between roughly -4% and -6% (excluding sales charges, if applicable), outperforming the -7.71% result of the benchmark Russell 2000® Value Index. Strong security selection among real estate, consumer staples, consumer discretionary and industrials stocks aided the fund's relative result the most, as did favorable investment choices and an underweight in the lagging health care sector. Conversely, picks in utilities and energy detracted, while an underweight in the former, outperforming category, further weighed on performance the past 12 months. The fund's leading individual contributor was an out-of-index stake in Computer Services (+53%), which provides back-office transactions for bank customers. Within real estate, holdings in triple-net real estate investment trust (REIT) Store Capital (+29%) – also a non-benchmark position – as well as CareTrust REIT (+41%), an owner of health care properties, were both key contributors this period. The portfolio's overweighting in Puerto Rico-based electronic payment processor Evertec (+33%) also added value. In contrast, an outsized position in TTM Technologies (-40%), a maker of printed circuit boards, was the fund's biggest individual detractor as concern about slowing iPhone® sales weighed on this supplier to Apple. Lastly, several energy holdings were hurt by a sharp drop in oil and gas prices during the period. These included energy-services companies Shawcor (-34%) – an out-of-index holding – and Oil States International (-57%), as well as exploration and production company Roan Resources, which returned -48% for the fund until we sold it in January.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Investment Summary (Unaudited)
Top Ten Stocks as of July 31, 2019
| % of fund's net assets | |
| Taylor Morrison Home Corp. | 2.5 |
| Computer Services, Inc. | 2.3 |
| Corporate Office Properties Trust (SBI) | 2.2 |
| Portland General Electric Co. | 2.2 |
| Potlatch Corp. | 2.1 |
| WSFS Financial Corp. | 2.1 |
| Enstar Group Ltd. | 2.1 |
| Viper Energy Partners LP | 2.0 |
| SYNNEX Corp. | 2.0 |
| Gray Television, Inc. | 2.0 |
| 21.5 |
Top Five Market Sectors as of July 31, 2019
| % of fund's net assets | |
| Financials | 33.3 |
| Industrials | 13.9 |
| Real Estate | 9.2 |
| Information Technology | 8.8 |
| Consumer Discretionary | 7.9 |
Asset Allocation (% of fund's net assets)
| As of July 31, 2019* | ||
| Stocks | 96.4% | |
| Bonds | 0.2% | |
| Short-Term Investments and Net Other Assets (Liabilities) | 3.4% | |
* Foreign investments - 17.0%
Schedule of Investments July 31, 2019
Showing Percentage of Net Assets
| Common Stocks - 96.4% | |||
| Shares | Value | ||
| COMMUNICATION SERVICES - 3.4% | |||
| Diversified Telecommunication Services - 1.4% | |||
| Iridium Communications, Inc. (a) | 1,182,100 | $30,072,624 | |
| Media - 2.0% | |||
| Gray Television, Inc. (a) | 2,340,200 | 41,538,550 | |
| TOTAL COMMUNICATION SERVICES | 71,611,174 | ||
| CONSUMER DISCRETIONARY - 7.9% | |||
| Auto Components - 1.2% | |||
| Standard Motor Products, Inc. | 560,500 | 25,788,605 | |
| Hotels, Restaurants & Leisure - 1.7% | |||
| Wyndham Destinations, Inc. | 734,200 | 34,551,452 | |
| Household Durables - 2.5% | |||
| Taylor Morrison Home Corp. (a) | 2,287,300 | 51,509,996 | |
| Leisure Products - 0.1% | |||
| Brunswick Corp. | 52,100 | 2,561,236 | |
| Specialty Retail - 1.6% | |||
| Aaron's, Inc. Class A | 454,000 | 28,624,700 | |
| Urban Outfitters, Inc. (a) | 168,600 | 4,014,366 | |
| 32,639,066 | |||
| Textiles, Apparel & Luxury Goods - 0.8% | |||
| G-III Apparel Group Ltd. (a) | 611,100 | 17,514,126 | |
| TOTAL CONSUMER DISCRETIONARY | 164,564,481 | ||
| CONSUMER STAPLES - 3.6% | |||
| Food & Staples Retailing - 1.5% | |||
| BJ's Wholesale Club Holdings, Inc. (a) | 1,372,400 | 32,333,744 | |
| Food Products - 1.6% | |||
| Nomad Foods Ltd. (a) | 1,469,700 | 32,730,219 | |
| Tobacco - 0.5% | |||
| Universal Corp. | 163,600 | 9,734,200 | |
| TOTAL CONSUMER STAPLES | 74,798,163 | ||
| ENERGY - 5.3% | |||
| Energy Equipment & Services - 2.7% | |||
| Oil States International, Inc. (a) | 955,500 | 14,256,060 | |
| Patterson-UTI Energy, Inc. | 738,100 | 8,584,103 | |
| ShawCor Ltd. Class A | 2,495,400 | 32,672,005 | |
| 55,512,168 | |||
| Oil, Gas & Consumable Fuels - 2.6% | |||
| Berry Petroleum Corp. | 1,240,403 | 12,155,949 | |
| Viper Energy Partners LP | 1,337,700 | 43,154,202 | |
| 55,310,151 | |||
| TOTAL ENERGY | 110,822,319 | ||
| FINANCIALS - 33.3% | |||
| Banks - 16.2% | |||
| Associated Banc-Corp. | 1,624,800 | 35,209,416 | |
| BOK Financial Corp. | 211,600 | 17,706,688 | |
| Camden National Corp. | 59,293 | 2,650,990 | |
| Cullen/Frost Bankers, Inc. | 49,900 | 4,737,506 | |
| First Citizens Bancshares, Inc. | 78,324 | 36,578,874 | |
| Heartland Financial U.S.A., Inc. | 302,400 | 14,542,416 | |
| Hilltop Holdings, Inc. | 1,523,000 | 34,541,640 | |
| PacWest Bancorp | 567,600 | 21,926,388 | |
| Popular, Inc. | 705,300 | 40,597,068 | |
| Trico Bancshares | 980,051 | 36,996,925 | |
| Umpqua Holdings Corp. | 1,740,700 | 30,392,622 | |
| United Community Bank, Inc. | 1,334,973 | 38,313,725 | |
| Wintrust Financial Corp. | 342,100 | 24,473,834 | |
| 338,668,092 | |||
| Capital Markets - 4.9% | |||
| Donnelley Financial Solutions, Inc. (a) | 1,517,571 | 20,684,493 | |
| Lazard Ltd. Class A | 891,300 | 34,502,223 | |
| LPL Financial | 324,200 | 27,190,654 | |
| Morningstar, Inc. | 126,537 | 19,231,093 | |
| 101,608,463 | |||
| Consumer Finance - 1.1% | |||
| Encore Capital Group, Inc. (a)(b) | 640,900 | 23,059,582 | |
| Diversified Financial Services - 2.2% | |||
| BrightSphere Investment Group, Inc. | 2,610,901 | 27,936,641 | |
| ECN Capital Corp. | 5,037,151 | 18,052,526 | |
| 45,989,167 | |||
| Insurance - 6.8% | |||
| Axis Capital Holdings Ltd. | 289,600 | 18,438,832 | |
| Enstar Group Ltd. (a) | 245,200 | 43,437,180 | |
| First American Financial Corp. | 578,075 | 33,424,297 | |
| Old Republic International Corp. | 722,600 | 16,482,506 | |
| Primerica, Inc. | 242,700 | 29,776,863 | |
| 141,559,678 | |||
| Thrifts & Mortgage Finance - 2.1% | |||
| WSFS Financial Corp. | 1,035,365 | 43,868,415 | |
| TOTAL FINANCIALS | 694,753,397 | ||
| HEALTH CARE - 2.2% | |||
| Health Care Technology - 1.0% | |||
| Cegedim SA (a) | 701,397 | 21,585,212 | |
| Pharmaceuticals - 1.2% | |||
| Perrigo Co. PLC | 439,400 | 23,731,994 | |
| TOTAL HEALTH CARE | 45,317,206 | ||
| INDUSTRIALS - 13.7% | |||
| Aerospace & Defense - 1.8% | |||
| Moog, Inc. Class A | 452,500 | 36,860,650 | |
| Building Products - 0.5% | |||
| GMS, Inc. (a) | 484,900 | 10,915,099 | |
| Commercial Services & Supplies - 1.5% | |||
| Knoll, Inc. | 1,256,200 | 30,462,850 | |
| Construction & Engineering - 1.2% | |||
| Argan, Inc. | 68,495 | 2,818,569 | |
| MasTec, Inc. (a) | 427,600 | 21,944,432 | |
| 24,763,001 | |||
| Electrical Equipment - 1.9% | |||
| Regal Beloit Corp. | 505,168 | 40,221,476 | |
| Machinery - 3.5% | |||
| AGCO Corp. | 364,600 | 28,074,200 | |
| Apergy Corp. (a) | 614,300 | 19,983,179 | |
| Luxfer Holdings PLC sponsored | 1,240,400 | 24,584,728 | |
| SPX Flow, Inc. (a) | 37,457 | 1,519,256 | |
| 74,161,363 | |||
| Professional Services - 1.6% | |||
| CBIZ, Inc. (a) | 1,424,600 | 33,292,902 | |
| Road & Rail - 0.2% | |||
| Schneider National, Inc. Class B | 222,415 | 4,292,610 | |
| Trading Companies & Distributors - 1.5% | |||
| Applied Industrial Technologies, Inc. | 106,577 | 6,484,145 | |
| Titan Machinery, Inc. (a)(c) | 1,198,908 | 24,865,352 | |
| 31,349,497 | |||
| TOTAL INDUSTRIALS | 286,319,448 | ||
| INFORMATION TECHNOLOGY - 8.8% | |||
| Electronic Equipment & Components - 4.0% | |||
| SYNNEX Corp. | 432,460 | 42,614,608 | |
| Tech Data Corp. (a) | 209,700 | 21,250,998 | |
| TTM Technologies, Inc. (a) | 1,950,500 | 20,402,230 | |
| 84,267,836 | |||
| IT Services - 4.3% | |||
| Computer Services, Inc. | 1,211,088 | 48,479,853 | |
| Presidio, Inc. | 2,394,427 | 33,521,978 | |
| Unisys Corp. (a) | 646,000 | 8,003,940 | |
| 90,005,771 | |||
| Software - 0.5% | |||
| j2 Global, Inc. | 107,200 | 9,550,448 | |
| TOTAL INFORMATION TECHNOLOGY | 183,824,055 | ||
| MATERIALS - 3.2% | |||
| Chemicals - 2.6% | |||
| Intrepid Potash, Inc. (a) | 2,175,209 | 8,135,282 | |
| Olin Corp. | 1,457,500 | 29,252,025 | |
| Orion Engineered Carbons SA | 868,400 | 16,916,432 | |
| 54,303,739 | |||
| Containers & Packaging - 0.6% | |||
| Ardagh Group SA | 754,740 | 12,551,326 | |
| Silgan Holdings, Inc. | 6,249 | 187,845 | |
| 12,739,171 | |||
| TOTAL MATERIALS | 67,042,910 | ||
| REAL ESTATE - 9.2% | |||
| Equity Real Estate Investment Trusts (REITs) - 7.7% | |||
| CareTrust (REIT), Inc. | 680,900 | 15,817,307 | |
| Clipper Realty, Inc. | 762,051 | 8,801,689 | |
| Corporate Office Properties Trust (SBI) | 1,630,800 | 45,531,936 | |
| Outfront Media, Inc. | 923,600 | 25,103,448 | |
| Potlatch Corp. | 1,211,200 | 44,596,384 | |
| Store Capital Corp. | 599,100 | 20,495,211 | |
| 160,345,975 | |||
| Real Estate Management & Development - 1.5% | |||
| Cushman & Wakefield PLC | 1,548,200 | 30,716,288 | |
| TOTAL REAL ESTATE | 191,062,263 | ||
| UTILITIES - 5.8% | |||
| Electric Utilities - 3.8% | |||
| IDACORP, Inc. | 334,400 | 34,128,864 | |
| Portland General Electric Co. | 822,000 | 45,086,700 | |
| 79,215,564 | |||
| Gas Utilities - 2.0% | |||
| ONE Gas, Inc. | 247,900 | 22,603,522 | |
| Spire, Inc. | 222,400 | 18,327,984 | |
| 40,931,506 | |||
| TOTAL UTILITIES | 120,147,070 | ||
| TOTAL COMMON STOCKS | |||
| (Cost $1,867,231,917) | 2,010,262,486 | ||
| Principal Amount | Value | ||
| Nonconvertible Bonds - 0.2% | |||
| INDUSTRIALS - 0.2% | |||
| Machinery - 0.2% | |||
| Mueller Industries, Inc. 6% 3/1/27 (Cost $5,057,000) | 5,057,000 | 5,050,679 | |
| Shares | Value | ||
| Money Market Funds - 4.5% | |||
| Fidelity Cash Central Fund 2.43% (d) | 86,114,394 | 86,131,617 | |
| Fidelity Securities Lending Cash Central Fund 2.43% (d)(e) | 7,313,823 | 7,314,554 | |
| TOTAL MONEY MARKET FUNDS | |||
| (Cost $93,446,171) | 93,446,171 | ||
| TOTAL INVESTMENT IN SECURITIES - 101.1% | |||
| (Cost $1,965,735,088) | 2,108,759,336 | ||
| NET OTHER ASSETS (LIABILITIES) - (1.1)% | (23,235,614) | ||
| NET ASSETS - 100% | $2,085,523,722 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Affiliated company
(d) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(e) Investment made with cash collateral received from securities on loan.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
| Fund | Income earned |
| Fidelity Cash Central Fund | $1,263,169 |
| Fidelity Securities Lending Cash Central Fund | 52,314 |
| Total | $1,315,483 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable. Amount for Fidelity Securities Lending Cash Central Fund 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.
Other Affiliated Issuers
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows:
| Affiliate | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Realized Gain (loss) | Change in Unrealized appreciation (depreciation) | Value, end of period |
| Beneficial Bancorp, Inc. | $70,619,250 | $-- | $37,722,614 | $306,131 | $359,815 | $(705,232) | $-- |
| Donnelley Financial Solutions, Inc. | 13,536,619 | 22,037,213 | 4,684,951 | -- | (1,928,894) | (8,275,494) | -- |
| Hackett Group, Inc. | 4,463,471 | 31,022,046 | 29,635,688 | 292,910 | (5,581,338) | (268,491) | -- |
| Standard Motor Products, Inc. | 61,899,800 | 2,703,509 | 36,767,108 | 850,946 | (64,517) | (1,983,082) | -- |
| Titan Machinery, Inc. | -- | 22,313,685 | -- | -- | -- | 2,551,667 | 24,865,352 |
| Total | $150,519,140 | $78,076,453 | $108,810,361 | $1,449,987 | $(7,214,934) | $(8,680,632) | $24,865,352 |
Investment Valuation
The following is a summary of the inputs used, as of July 31, 2019, 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 below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| Valuation Inputs at Reporting Date: | ||||
| Description | Total | Level 1 | Level 2 | Level 3 |
| Investments in Securities: | ||||
| Equities: | ||||
| Communication Services | $71,611,174 | $71,611,174 | $-- | $-- |
| Consumer Discretionary | 164,564,481 | 164,564,481 | -- | -- |
| Consumer Staples | 74,798,163 | 74,798,163 | -- | -- |
| Energy | 110,822,319 | 110,822,319 | -- | -- |
| Financials | 694,753,397 | 694,753,397 | -- | -- |
| Health Care | 45,317,206 | 45,317,206 | -- | -- |
| Industrials | 286,319,448 | 286,319,448 | -- | -- |
| Information Technology | 183,824,055 | 183,824,055 | -- | -- |
| Materials | 67,042,910 | 67,042,910 | -- | -- |
| Real Estate | 191,062,263 | 191,062,263 | -- | -- |
| Utilities | 120,147,070 | 120,147,070 | -- | -- |
| Corporate Bonds | 5,050,679 | -- | 5,050,679 | -- |
| Money Market Funds | 93,446,171 | 93,446,171 | -- | -- |
| Total Investments in Securities: | $2,108,759,336 | $2,103,708,657 | $5,050,679 | $-- |
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
| United States of America | 83.0% |
| Bermuda | 4.7% |
| United Kingdom | 2.7% |
| Canada | 2.5% |
| Puerto Rico | 1.9% |
| British Virgin Islands | 1.6% |
| Luxembourg | 1.4% |
| Ireland | 1.2% |
| France | 1.0% |
| 100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
| July 31, 2019 | ||
| Assets | ||
| Investment in securities, at value (including securities loaned of $7,113,246) — See accompanying schedule: Unaffiliated issuers (cost $1,849,975,232) | $1,990,447,813 | |
| Fidelity Central Funds (cost $93,446,171) | 93,446,171 | |
| Other affiliated issuers (cost $22,313,685) | 24,865,352 | |
| Total Investment in Securities (cost $1,965,735,088) | $2,108,759,336 | |
| Receivable for investments sold | 20,831,280 | |
| Receivable for fund shares sold | 1,460,546 | |
| Dividends receivable | 279,386 | |
| Interest receivable | 201,425 | |
| Distributions receivable from Fidelity Central Funds | 95,333 | |
| Prepaid expenses | 4,864 | |
| Other receivables | 81,315 | |
| Total assets | 2,131,713,485 | |
| Liabilities | ||
| Payable for investments purchased | $34,054,380 | |
| Payable for fund shares redeemed | 3,335,924 | |
| Accrued management fee | 979,551 | |
| Distribution and service plan fees payable | 67,929 | |
| Other affiliated payables | 372,765 | |
| Other payables and accrued expenses | 64,314 | |
| Collateral on securities loaned | 7,314,900 | |
| Total liabilities | 46,189,763 | |
| Net Assets | $2,085,523,722 | |
| Net Assets consist of: | ||
| Paid in capital | $1,904,619,759 | |
| Total distributable earnings (loss) | 180,903,963 | |
| Net Assets | $2,085,523,722 | |
| Net Asset Value and Maximum Offering Price | ||
| Class A: | ||
| Net Asset Value and redemption price per share ($129,115,365 ÷ 8,797,220 shares)(a) | $14.68 | |
| Maximum offering price per share (100/94.25 of $14.68) | $15.58 | |
| Class M: | ||
| Net Asset Value and redemption price per share ($53,612,196 ÷ 3,770,687 shares)(a) | $14.22 | |
| Maximum offering price per share (100/96.50 of $14.22) | $14.74 | |
| Class C: | ||
| Net Asset Value and offering price per share ($22,186,759 ÷ 1,717,916 shares)(a) | $12.91 | |
| Small Cap Value: | ||
| Net Asset Value, offering price and redemption price per share ($1,611,032,492 ÷ 107,109,081 shares) | $15.04 | |
| Class I: | ||
| Net Asset Value, offering price and redemption price per share ($243,570,582 ÷ 16,190,143 shares) | $15.04 | |
| Class Z: | ||
| Net Asset Value, offering price and redemption price per share ($26,006,328 ÷ 1,728,357 shares) | $15.05 |
(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.
Statement of Operations
| Year ended July 31, 2019 | ||
| Investment Income | ||
| Dividends (including $1,449,987 earned from other affiliated issuers) | $34,089,479 | |
| Special dividends | 4,379,250 | |
| Interest | 614,960 | |
| Income from Fidelity Central Funds (including $52,314 from security lending) | 1,315,483 | |
| Total income | 40,399,172 | |
| Expenses | ||
| Management fee | ||
| Basic fee | $15,382,200 | |
| Performance adjustment | (5,699,531) | |
| Transfer agent fees | 4,099,195 | |
| Distribution and service plan fees | 954,262 | |
| Accounting and security lending fees | 674,119 | |
| Custodian fees and expenses | 54,081 | |
| Independent trustees' fees and expenses | 13,272 | |
| Registration fees | 123,473 | |
| Audit | 62,701 | |
| Legal | 6,871 | |
| Interest | 12,289 | |
| Miscellaneous | 17,818 | |
| Total expenses before reductions | 15,700,750 | |
| Expense reductions | (335,202) | |
| Total expenses after reductions | 15,365,548 | |
| Net investment income (loss) | 25,033,624 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | 188,258,356 | |
| Fidelity Central Funds | (572) | |
| Other affiliated issuers | (7,214,934) | |
| Foreign currency transactions | (3,822) | |
| Total net realized gain (loss) | 181,039,028 | |
| Change in net unrealized appreciation (depreciation) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | (328,903,875) | |
| Fidelity Central Funds | 112 | |
| Other affiliated issuers | (8,680,632) | |
| Total change in net unrealized appreciation (depreciation) | (337,584,395) | |
| Net gain (loss) | (156,545,367) | |
| Net increase (decrease) in net assets resulting from operations | $(131,511,743) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Year ended July 31, 2019 | Year ended July 31, 2018 | |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $25,033,624 | $23,855,932 |
| Net realized gain (loss) | 181,039,028 | 580,477,489 |
| Change in net unrealized appreciation (depreciation) | (337,584,395) | (255,980,673) |
| Net increase (decrease) in net assets resulting from operations | (131,511,743) | 348,352,748 |
| Distributions to shareholders | (631,100,390) | – |
| Distributions to shareholders from net investment income | – | (37,440,500) |
| Distributions to shareholders from net realized gain | – | (91,159,109) |
| Total distributions | (631,100,390) | (128,599,609) |
| Share transactions - net increase (decrease) | 59,792,211 | (851,457,506) |
| Redemption fees | – | 89,036 |
| Total increase (decrease) in net assets | (702,819,922) | (631,615,331) |
| Net Assets | ||
| Beginning of period | 2,788,343,644 | 3,419,958,975 |
| End of period | $2,085,523,722 | $2,788,343,644 |
| Other Information | ||
| Undistributed net investment income end of period | $4,125,965 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Small Cap Value Fund Class A
| Years ended July 31, | 2019 | 2018 | 2017 | 2016 | 2015 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $20.33 | $19.05 | $17.92 | $19.14 | $19.29 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .14B | .10C | .20D | .07 | .10E |
| Net realized and unrealized gain (loss) | (.98) | 1.87 | 2.23 | .56 | 2.01 |
| Total from investment operations | (.84) | 1.97 | 2.43 | .63 | 2.11 |
| Distributions from net investment income | (.10) | (.17) | (.10) | (.11) | (.02) |
| Distributions from net realized gain | (4.71) | (.52) | (1.20) | (1.75) | (2.25) |
| Total distributions | (4.81) | (.69) | (1.30) | (1.85)F | (2.26)G |
| Redemption fees added to paid in capital | – | –A,H | –A,H | –A,H | –A,H |
| Net asset value, end of period | $14.68 | $20.33 | $19.05 | $17.92 | $19.14 |
| Total ReturnI,J | (4.85)% | 10.65% | 14.61% | 4.07% | 11.86% |
| Ratios to Average Net AssetsK,L | |||||
| Expenses before reductions | .92% | 1.18% | 1.24% | 1.41% | 1.42% |
| Expenses net of fee waivers, if any | .92% | 1.17% | 1.24% | 1.41% | 1.39% |
| Expenses net of all reductions | .91% | 1.17% | 1.24% | 1.41% | 1.39% |
| Net investment income (loss) | .91%B | .49%C | 1.10%D | .43% | .52%E |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $129,115 | $162,572 | $184,306 | $218,364 | $235,844 |
| Portfolio turnover rateM | 79% | 55% | 26% | 33% | 34% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .71%.
C Net investment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .29%.
D Net investment income per share reflects a large, non-recurring dividend which amounted to $.09 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .61%.
E Net investment income per share reflects a large, non-recurring dividend which amounted to $.05 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .26%.
F Total distributions of $1.85 per share is comprised of distributions from net investment income of $.105 and distributions from net realized gain of $1.747 per share.
G Total distributions of $2.26 per share is comprised of distributions from net investment income of $.016 and distributions from net realized gain of $2.248 per share.
H Amount represents less than $.005 per share.
I Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
J Total returns do not include the effect of the sales charges.
K 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.
L 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.
M Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Small Cap Value Fund Class M
| Years ended July 31, | 2019 | 2018 | 2017 | 2016 | 2015 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $19.84 | $18.61 | $17.54 | $18.78 | $18.98 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .10B | .05C | .15D | .03 | .05E |
| Net realized and unrealized gain (loss) | (.96) | 1.82 | 2.18 | .54 | 1.98 |
| Total from investment operations | (.86) | 1.87 | 2.33 | .57 | 2.03 |
| Distributions from net investment income | (.05) | (.13) | (.07) | (.06) | – |
| Distributions from net realized gain | (4.71) | (.52) | (1.20) | (1.75) | (2.23) |
| Total distributions | (4.76) | (.64)F | (1.26)G | (1.81) | (2.23) |
| Redemption fees added to paid in capital | – | –A,H | –A,H | –A,H | –A,H |
| Net asset value, end of period | $14.22 | $19.84 | $18.61 | $17.54 | $18.78 |
| Total ReturnI,J | (5.08)% | 10.39% | 14.35% | 3.76% | 11.58% |
| Ratios to Average Net AssetsK,L | |||||
| Expenses before reductions | 1.17% | 1.42% | 1.49% | 1.66% | 1.67% |
| Expenses net of fee waivers, if any | 1.17% | 1.42% | 1.49% | 1.66% | 1.64% |
| Expenses net of all reductions | 1.16% | 1.41% | 1.49% | 1.65% | 1.63% |
| Net investment income (loss) | .66%B | .25%C | .86%D | .19% | .27%E |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $53,612 | $69,380 | $78,852 | $82,337 | $91,716 |
| Portfolio turnover rateM | 79% | 55% | 26% | 33% | 34% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .46%.
C Net investment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .04%.
D Net investment income per share reflects a large, non-recurring dividend which amounted to $.09 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .36%.
E Net investment income per share reflects a large, non-recurring dividend which amounted to $.05 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .01%.
F Total distributions of $.64 per share is comprised of distributions from net investment income of $.125 and distributions from net realized gain of $.519 per share.
G Total distributions of $1.26 per share is comprised of distributions from net investment income of $.067 and distributions from net realized gain of $1.195 per share.
H Amount represents less than $.005 per share.
I Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
J Total returns do not include the effect of the sales charges.
K 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.
L 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.
M Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Small Cap Value Fund Class C
| Years ended July 31, | 2019 | 2018 | 2017 | 2016 | 2015 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $18.50 | $17.39 | $16.52 | $17.82 | $18.19 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .02B | (.05)C | .06D | (.05) | (.04)E |
| Net realized and unrealized gain (loss) | (.89) | 1.71 | 2.04 | .50 | 1.90 |
| Total from investment operations | (.87) | 1.66 | 2.10 | .45 | 1.86 |
| Distributions from net investment income | (.02) | (.03) | (.04) | – | – |
| Distributions from net realized gain | (4.71) | (.52) | (1.20) | (1.75) | (2.23) |
| Total distributions | (4.72)F | (.55) | (1.23)G | (1.75) | (2.23) |
| Redemption fees added to paid in capital | – | –A,H | –A,H | –A,H | –A,H |
| Net asset value, end of period | $12.91 | $18.50 | $17.39 | $16.52 | $17.82 |
| Total ReturnI,J | (5.63)% | 9.84% | 13.79% | 3.20% | 11.05% |
| Ratios to Average Net AssetsK,L | |||||
| Expenses before reductions | 1.68% | 1.93% | 2.00% | 2.18% | 2.19% |
| Expenses net of fee waivers, if any | 1.68% | 1.93% | 2.00% | 2.17% | 2.16% |
| Expenses net of all reductions | 1.67% | 1.92% | 2.00% | 2.17% | 2.15% |
| Net investment income (loss) | .15%B | (.26)%C | .35%D | (.33)% | (.25)%E |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $22,187 | $44,396 | $52,227 | $57,231 | $64,928 |
| Portfolio turnover rateM | 79% | 55% | 26% | 33% | 34% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.05) %.
C Net investment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.47) %.
D Net investment income per share reflects a large, non-recurring dividend which amounted to $.08 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.15) %.
E Net investment income per share reflects a large, non-recurring dividend which amounted to $.05 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.51) %.
F Total distributions of $4.72 per share is comprised of distributions from net investment income of $.016 and distributions from net realized gain of $4.707 per share.
G Total distributions of $1.23 per share is comprised of distributions from net investment income of $.036 and distributions from net realized gain of $1.195 per share.
H Amount represents less than $.005 per share.
I Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
J Total returns do not include the effect of the contingent deferred sales charge.
K 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.
L 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.
M Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Small Cap Value Fund
| Years ended July 31, | 2019 | 2018 | 2017 | 2016 | 2015 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $20.71 | $19.41 | $18.22 | $19.45 | $19.57 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .18B | .15C | .25D | .12 | .15E |
| Net realized and unrealized gain (loss) | (1.00) | 1.89 | 2.28 | .55 | 2.05 |
| Total from investment operations | (.82) | 2.04 | 2.53 | .67 | 2.20 |
| Distributions from net investment income | (.15) | (.22) | (.15) | (.15) | (.07) |
| Distributions from net realized gain | (4.71) | (.52) | (1.20) | (1.75) | (2.25) |
| Total distributions | (4.85)F | (.74) | (1.34)G | (1.90) | (2.32) |
| Redemption fees added to paid in capital | – | –A,H | –A,H | –A,H | –A,H |
| Net asset value, end of period | $15.04 | $20.71 | $19.41 | $18.22 | $19.45 |
| Total ReturnI | (4.58)% | 10.88% | 14.99% | 4.23% | 12.18% |
| Ratios to Average Net AssetsJ,K | |||||
| Expenses before reductions | .66% | .91% | .99% | 1.18% | 1.15% |
| Expenses net of fee waivers, if any | .66% | .91% | .99% | 1.18% | 1.12% |
| Expenses net of all reductions | .64% | .91% | .99% | 1.17% | 1.12% |
| Net investment income (loss) | 1.17%B | .76%C | 1.36%D | .67% | .78%E |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $1,611,032 | $2,052,664 | $2,637,843 | $2,460,714 | $2,036,157 |
| Portfolio turnover rateL | 79% | 55% | 26% | 33% | 34% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .98%.
C Net investment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .55%.
D Net investment income per share reflects a large, non-recurring dividend which amounted to $.09 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .86%.
E Net investment income per share reflects a large, non-recurring dividend which amounted to $.05 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .53%.
F Total distributions of $4.85 per share is comprised of distributions from net investment income of $.145 and distributions from net realized gain of $4.707 per share.
G Total distributions of $1.34 per share is comprised of distributions from net investment income of $.145 and distributions from net realized gain of $1.195 per share.
H Amount represents less than $.005 per share.
I Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
J 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.
K Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
L Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Small Cap Value Fund Class I
| Years ended July 31, | 2019 | 2018 | 2017 | 2016 | 2015 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $20.72 | $19.41 | $18.23 | $19.45 | $19.57 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .18B | .15C | .25D | .12 | .15E |
| Net realized and unrealized gain (loss) | (1.01) | 1.90 | 2.28 | .56 | 2.05 |
| Total from investment operations | (.83) | 2.05 | 2.53 | .68 | 2.20 |
| Distributions from net investment income | (.15) | (.22) | (.15) | (.16) | (.07) |
| Distributions from net realized gain | (4.71) | (.52) | (1.20) | (1.75) | (2.25) |
| Total distributions | (4.85)F | (.74) | (1.35) | (1.90)G | (2.32) |
| Redemption fees added to paid in capital | – | –A,H | –A,H | –A,H | –A,H |
| Net asset value, end of period | $15.04 | $20.72 | $19.41 | $18.23 | $19.45 |
| Total ReturnI | (4.63)% | 10.93% | 14.96% | 4.31% | 12.17% |
| Ratios to Average Net AssetsJ,K | |||||
| Expenses before reductions | .66% | .91% | .98% | 1.14% | 1.15% |
| Expenses net of fee waivers, if any | .66% | .91% | .97% | 1.14% | 1.12% |
| Expenses net of all reductions | .65% | .90% | .97% | 1.14% | 1.12% |
| Net investment income (loss) | 1.17%B | .76%C | 1.37%D | .70% | .79%E |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $243,571 | $459,332 | $466,730 | $389,928 | $376,817 |
| Portfolio turnover rateL | 79% | 55% | 26% | 33% | 34% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .97%.
C Net investment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .55%.
D Net investment income per share reflects a large, non-recurring dividend which amounted to $.09 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .88%.
E Net investment income per share reflects a large, non-recurring dividend which amounted to $.05 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .53%.
F Total distributions of $4.85 per share is comprised of distributions from net investment income of $.146 and distributions from net realized gain of $4.707 per share.
G Total distributions of $1.90 per share is comprised of distributions from net investment income of $.157 and distributions from net realized gain of $1.747 per share.
H Amount represents less than $.005 per share.
I Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
J 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.
K Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
L Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Fidelity Small Cap Value Fund Class Z
| Years ended July 31, | 2019 A |
| Selected Per–Share Data | |
| Net asset value, beginning of period | $16.90 |
| Income from Investment Operations | |
| Net investment income (loss)B | (.08)C |
| Net realized and unrealized gain (loss) | (.66)D |
| Total from investment operations | (.74) |
| Distributions from net investment income | (.09) |
| Distributions from net realized gain | (1.02) |
| Total distributions | (1.11) |
| Redemption fees added to paid in capital | – |
| Net asset value, end of period | $15.05 |
| Total ReturnE,F | (3.75)% |
| Ratios to Average Net AssetsG,H | |
| Expenses before reductions | .52%I |
| Expenses net of fee waivers, if any | .52%I |
| Expenses net of all reductions | .51%I |
| Net investment income (loss) | (.63)%C,I |
| Supplemental Data | |
| Net assets, end of period (000 omitted) | $26,006 |
| Portfolio turnover rateJ | 79% |
A For the period October 2, 2018 (commencement of sale of shares) to July 31, 2019.
B Calculated based on average shares outstanding during the period.
C Net investment income per share reflects a large, non-recurring dividend which amounted to $.02 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.82) %.
D The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G 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.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended July 31, 2019
1. Organization.
Fidelity Small Cap Value Fund (the Fund) is a fund of Fidelity Securities Fund (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund commenced sale of Class Z shares on October 2, 2018. The Fund offers Class A, Class M, Class C, Small Cap Value, Class I and Class Z shares, each of which has equal rights as to assets and voting privileges. Effective after the close of business on January 31, 2019, all classes of the Fund reopened to new investors. Each class has exclusive voting rights with respect to matters that affect that class. Effective March 1, 2019, Class C shares will automatically convert to Class A shares after a holding period of ten years from the initial date of purchase, with certain exceptions.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date ranged from less than .005% to .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investments Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. Corporate bonds are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of July 31, 2019 is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. Large, non-recurring dividends recognized by the Fund are presented separately on the Statement of Operations as "Special Dividends" and the impact of these dividends is presented in the Financial Highlights. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. As of July 31, 2019, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, partnerships and losses deferred due to wash sales.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
| Gross unrealized appreciation | $268,272,447 |
| Gross unrealized depreciation | (128,408,570) |
| Net unrealized appreciation (depreciation) | $139,863,877 |
| Tax Cost | $1,968,895,459 |
The tax-based components of distributable earnings as of period end were as follows:
| Undistributed ordinary income | $5,042,902 |
| Undistributed long-term capital gain | $35,997,185 |
| Net unrealized appreciation (depreciation) on securities and other investments | $139,863,877 |
The tax character of distributions paid was as follows:
| July 31, 2019 | July 31, 2018 | |
| Ordinary Income | $18,692,764 | $ 39,181,764 |
| Long-term Capital Gains | 612,407,626 | 89,417,845 |
| Total | $631,100,390 | $ 128,599,609 |
New Rule Issuance. During August 2018, the U.S. Securities and Exchange Commission issued Final Rule Release No. 33-10532, Disclosure Update and Simplification. This Final Rule includes amendments specific to registered investment companies that are intended to eliminate overlap in disclosure requirements between Regulation S-X and GAAP. In accordance with these amendments, certain line-items in the Fund's financial statements have been combined or removed for the current period as outlined in the table below.
| Financial Statement | Current Line-Item Presentation (As Applicable) | Prior Line-Item Presentation (As Applicable) |
| Statement of Assets and Liabilities | Total distributable earnings (loss) | Undistributed/Distributions in excess of/Accumulated net investment income (loss) Accumulated/Undistributed net realized gain (loss) Net unrealized appreciation (depreciation) |
| Statement of Changes in Net Assets | N/A - removed | Undistributed/Distributions in excess of/Accumulated net investment income (loss) end of period |
| Statement of Changes in Net Assets | Distributions to shareholders | Distributions to shareholders from net investment income Distributions to shareholders from net realized gain |
| Distributions to Shareholders Note to Financial Statements | Distributions to shareholders | Distributions to shareholders from net investment income Distributions to shareholders from net realized gain |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $1,737,255,948 and $2,262,630,454, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the Fund's average net assets and an annualized group fee rate that averaged .24% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of +/- .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of Small Cap Value as compared to its benchmark index, the Russell 2000 Value Index, over the same 36 month performance period. For the reporting period, the total annual management fee rate, including the performance adjustment, was .43% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
| Distribution Fee | Service Fee | Total Fees | Retained by FDC | |
| Class A | -% | .25% | $339,425 | $1,713 |
| Class M | .25% | .25% | 294,785 | 590 |
| Class C | .75% | .25% | 320,052 | 14,037 |
| $954,262 | $16,340 |
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 M 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 M and Class C redemptions. The deferred sales charges are 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class M shares.
For the period, sales charge amounts retained by FDC were as follows:
| Retained by FDC | |
| Class A | $13,941 |
| Class M | 2,057 |
| Class C(a) | 2,325 |
| $18,323 |
(a) When Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund, except for Class Z. FIIOC receives an asset-based fee of Class Z's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
| Amount | % of Class-Level Average Net Assets | |
| Class A | $271,913 | .20 |
| Class M | 115,320 | .20 |
| Class C | 66,744 | .21 |
| Small Cap Value | 3,070,411 | .18 |
| Class I | 568,729 | .19 |
| Class Z | 6,078 | .05(a) |
| $4,099,195 |
(a) Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Prior to April 1, 2019, FSC had a separate agreement with the Fund for administration of the security lending program, based on the number and duration of lending transactions. For the period, the total fees paid for accounting and administration of securities lending were equivalent to an annual rate of .03%.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $111,901 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with Fidelity Management & Research Company (FMR) or other affiliated entities of FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
| Borrower or Lender | Average Loan Balance | Weighted Average Interest Rate | Interest Expense |
| Borrower | $25,370,625 | 2.18% | $12,289 |
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $6,210 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. For equity securities, lending agents are used, including National Financial Services (NFS), an affiliate of the Fund. Pursuant to a securities lending agreement, NFS will receive a fee, which is capped at 9.9% of daily lending revenue, for its services as lending agent. The Fund may lend securities to certain qualified borrowers, including NFS. 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. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. At period end, there were no security loans outstanding with NFS, as affiliated borrower. Total fees paid by the Fund to NFS, as lending agent, amounted to $45. 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 $330 from securities loaned to NFS, as affiliated borrower.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $302,507 for the period. During the period, transfer agent credits reduced each class' expenses as noted in the table below.
| Expense reduction | |
| Small Cap Value | $44 |
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $16,588 and a portion of class-level operating expenses as follows:
| Amount | |
| Class A | $929 |
| Class M | 429 |
| Class C | 245 |
| Small Cap Value | 12,266 |
| Class I | 2,063 |
| Class Z | 131 |
| $16,063 |
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Year ended July 31, 2019(a) | Year ended July 31, 2018 | |
| Distributions to shareholders | ||
| Class A | $38,710,047 | $– |
| Class M | 17,014,124 | – |
| Class C | 11,414,739 | – |
| Small Cap Value | 469,819,892 | – |
| Class I | 93,391,322 | – |
| Class Z | 750,266 | – |
| Total | $631,100,390 | $ - |
| From net investment income | ||
| Class A | $– | $1,524,304 |
| Class M | – | 515,970 |
| Class C | – | 97,347 |
| Small Cap Value | – | 30,080,300 |
| Class I | – | 5,222,579 |
| Total | $– | $37,440,500 |
| From net realized gain | ||
| Class A | $– | $4,758,907 |
| Class M | – | 2,138,544 |
| Class C | – | 1,473,571 |
| Small Cap Value | – | 70,617,875 |
| Class I | – | 12,170,212 |
| Total | $– | $91,159,109 |
(a) Distributions for Class Z are for the period October 2, 2018 (commencement of sale of shares) to July 31, 2019.
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
| Shares | Shares | Dollars | Dollars | |
| Year ended July 31, 2019(a) | Year ended July 31, 2018 | Year ended July 31, 2019(a) | Year ended July 31, 2018 | |
| Class A | ||||
| Shares sold | 1,638,428 | 787,560 | $24,084,415 | $15,530,971 |
| Reinvestment of distributions | 2,371,085 | 330,015 | 37,759,513 | 6,184,396 |
| Shares redeemed | (3,209,827) | (2,794,205) | (47,744,776) | (54,717,368) |
| Net increase (decrease) | 799,686 | (1,676,630) | $14,099,152 | $(33,002,001) |
| Class M | ||||
| Shares sold | 389,836 | 258,708 | $5,611,447 | $4,991,221 |
| Reinvestment of distributions | 1,095,649 | 144,050 | 16,926,149 | 2,638,888 |
| Shares redeemed | (1,212,074) | (1,141,985) | (17,550,968) | (22,088,950) |
| Net increase (decrease) | 273,411 | (739,227) | $4,986,628 | $(14,458,841) |
| Class C | ||||
| Shares sold | 221,718 | 65,629 | $2,936,109 | $1,177,591 |
| Reinvestment of distributions | 777,498 | 85,987 | 11,029,853 | 1,473,685 |
| Shares redeemed | (1,681,515) | (754,141) | (21,680,140) | (13,467,588) |
| Net increase (decrease) | (682,299) | (602,525) | $(7,714,178) | $(10,816,312) |
| Small Cap Value | ||||
| Shares sold | 12,928,047 | 33,774,572 | $198,016,884 | $673,371,571 |
| Reinvestment of distributions | 27,312,687 | 4,774,555 | 443,826,642 | 90,647,491 |
| Shares redeemed | (32,223,973) | (75,386,466) | (519,137,502) | (1,518,420,951) |
| Net increase (decrease) | 8,016,761 | (36,837,339) | $122,706,024 | $(754,401,889) |
| Class I | ||||
| Shares sold | 3,573,241 | 4,588,604 | $55,460,309 | $91,876,636 |
| Reinvestment of distributions | 4,767,058 | 785,425 | 77,894,990 | 14,952,991 |
| Shares redeemed | (14,318,939) | (7,249,457) | (233,477,236) | (145,608,090) |
| Net increase (decrease) | (5,978,640) | (1,875,428) | $(100,121,937) | $(38,778,463) |
| Class Z | ||||
| Shares sold | 1,964,572 | – | $29,307,629 | $– |
| Reinvestment of distributions | 54,128 | – | 741,553 | – |
| Shares redeemed | (290,343) | – | (4,212,660) | – |
| Net increase (decrease) | 1,728,357 | – | $25,836,522 | $– |
(a) Share transactions for Class Z are for the period October 2, 2018 (commencement of sale of shares) to July 31, 2019
11. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Fidelity Securities Fund and Shareholders of Fidelity Small Cap Value Fund:
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Fidelity Small Cap Value Fund (one of the funds constituting Fidelity Securities Fund, referred to hereafter as the “Fund”) as of July 31, 2019, the related statement of operations for the year ended July 31, 2019, the statement of changes in net assets for each of the two years in the period ended July 31, 2019, including the related notes, and the financial highlights for each of the periods indicated therein (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of July 31, 2019, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended July 31, 2019 and the financial highlights for each of the periods indicated therein in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of July 31, 2019 by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Boston, Massachusetts
September 13, 2019
We have served as the auditor of one or more investment companies in the Fidelity group of funds since 1932.
Trustees and Officers
The Trustees, Members of the Advisory Board (if any), and officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Except for Jonathan Chiel, each of the Trustees oversees 298 funds. Mr. Chiel oversees 170 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the fund is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund's Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544 if you’re an individual investing directly with Fidelity, call 1-800-835-5092 if you’re a plan sponsor or participant with Fidelity as your recordkeeper or call 1-877-208-0098 on institutional accounts or if you’re an advisor or invest through one.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Board Structure and Oversight Function. James C. Curvey is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Ned C. Lautenbach serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and other equity funds. The asset allocation funds may invest in Fidelity® funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Jonathan Chiel (1957)
Year of Election or Appointment: 2016
Trustee
Mr. Chiel also serves as Trustee of other Fidelity® funds. Mr. Chiel is Executive Vice President and General Counsel for FMR LLC (diversified financial services company, 2012-present). Previously, Mr. Chiel served as general counsel (2004-2012) and senior vice president and deputy general counsel (2000-2004) for John Hancock Financial Services; a partner with Choate, Hall & Stewart (1996-2000) (law firm); and an Assistant United States Attorney for the United States Attorney’s Office of the District of Massachusetts (1986-95), including Chief of the Criminal Division (1993-1995). Mr. Chiel is a director on the boards of the Boston Bar Foundation and the Maimonides School.
James C. Curvey (1935)
Year of Election or Appointment: 2007
Trustee
Chairman of the Board of Trustees
Mr. Curvey also serves as Trustee of other Fidelity® funds. Mr. Curvey is Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey is an Overseer Emeritus for the Boston Symphony Orchestra, a Director of Artis-Naples, and a Trustee of Brewster Academy in Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-2018), Director of Fidelity Investments Money Management, Inc. (investment adviser firm, 2009-2014) and a Director of FMR and FMR Co., Inc. (investment adviser firms, 2007-2014).
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), as a member of the Independent Directors Council (IDC) Governing Council (2010-2015), and as a member of the Board of Directors for The Brookville Center for Children’s Services, Inc. (2009-2017). Mr. Dirks is a member of the Finance Committee (2016-present) and Board of Directors (2017-present) and is Treasurer (2018-present) of the Asolo Repertory Theatre.
Donald F. Donahue (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Donahue also serves as a Trustee of other Fidelity® funds. Mr. Donahue is President and Chief Executive Officer of Miranda Partners, LLC (risk consulting for the financial services industry, 2012-present). Previously, Mr. Donahue served as a Member of the Advisory Board of certain Fidelity® funds (2015-2018) and Chief Executive Officer (2006-2012), Chief Operating Officer (2003-2006), and Managing Director, Customer Marketing and Development (1999-2003) of The Depository Trust & Clearing Corporation (financial markets infrastructure). Mr. Donahue serves as a Member (2007-present) and Co-Chairman (2016-present) of the Board of Directors of United Way of New York, Member of the Board of Directors of NYC Leadership Academy (2012-present) and Member of the Board of Advisors of Ripple Labs, Inc. (financial services, 2015-present). He also served as Chairman (2010-2012) and Member of the Board of Directors (2012-2013) of Omgeo, LLC (financial services), Treasurer of United Way of New York (2012-2016), and Member of the Board of Directors of XBRL US (financial services non-profit, 2009-2012) and the International Securities Services Association (2009-2012).
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2014-2017) and a member (2010-2017) of the Board of Directors of Dave & Buster’s Entertainment, Inc. (restaurant and entertainment complexes), as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association, and as a member of the Board of Directors for The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), Earth Fare, Inc. (retail grocery, 2010-2014), and The Western Union Company (global money transfer, 2006-2011).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as Chair (2018-present) and Member (2013-present) of the Board of Governors, State University System of Florida and is a member of the Council on Foreign Relations (1994-present). He is also a member and has most recently served as Chairman of the Board of Directors of Artis-Naples (2012-present). Previously, Mr. Lautenbach served as a member and then Lead Director of the Board of Directors of Eaton Corporation (diversified industrial, 1997-2016). He was also a Partner and Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007). In addition, Mr. Lautenbach also had a 30-year career with IBM (technology company) during which time he served as Senior Vice President and a member of the Corporate Executive Committee (1968-1998).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-2018).
Cornelia M. Small (1944)
Year of Election or Appointment: 2005
Trustee
Ms. Small also serves as Trustee of other Fidelity® funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.
Garnett A. Smith (1947)
Year of Election or Appointment: 2018
Trustee
Mr. Smith also serves as Trustee of other Fidelity® funds. Prior to Mr. Smith's retirement, he served as Chairman and Chief Executive Officer of Inbrand Corp. (manufacturer of personal absorbent products, 1990-1997). He also served as President (1986-1990) of Inbrand Corp. Prior to his employment with Inbrand Corp., he was employed by a retail fabric chain and North Carolina National Bank. In addition, Mr. Smith served as a Member of the Advisory Board of certain Fidelity® funds (2012-2013) and as a board member of the Jackson Hole Land Trust (2009-2012).
David M. Thomas (1949)
Year of Election or Appointment: 2008
Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present) and as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), a Director of Fortune Brands, Inc. (consumer products, 2000-2011), and a member of the Board of Trustees of the University of Florida (2013-2018).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Advisory Board Members and Officers:
Correspondence intended for a Member of the Advisory Board (if any) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235. Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Vicki L. Fuller (1957)
Year of Election or Appointment: 2018
Member of the Advisory Board
Ms. Fuller also serves as Member of the Advisory Board of other Fidelity® funds. Ms. Fuller serves as a member of the Board of Directors, Audit Committee, and Nominating and Governance Committee of The Williams Companies, Inc. (natural gas infrastructure, 2018-present). Previously, Ms. Fuller served as the Chief Investment Officer of the New York State Common Retirement Fund (2012-2018) and held a variety of positions at AllianceBernstein L.P. (global asset management, 1985-2012), including Managing Director (2006-2012) and Senior Vice President and Senior Portfolio Manager (2001-2006).
Peter S. Lynch (1944)
Year of Election or Appointment: 2003
Member of the Advisory Board
Mr. Lynch also serves as Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of FMR (investment adviser firm) and FMR Co., Inc. (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).
Michael E. Wiley (1950)
Year of Election or Appointment: 2018
Member of the Advisory Board
Mr. Wiley also serves as Trustee or Member of the Advisory Board of other Fidelity® funds. Mr. Wiley serves as a Director of High Point Resources (exploration and production, 2005-present). Previously, Mr. Wiley served as a Director of Andeavor Corporation (independent oil refiner and marketer, 2005-2018), a Director of Andeavor Logistics LP (natural resources logistics, 2015-2018), a Director of Post Oak Bank (privately-held bank, 2004-2018), a Director of Asia Pacific Exploration Consolidated (international oil and gas exploration and production, 2008-2013), a member of the Board of Trustees of the University of Tulsa (2000-2006; 2007-2010), a Senior Energy Advisor of Katzenbach Partners, LLC (consulting, 2006-2007), an Advisory Director of Riverstone Holdings (private investment), a Director of Spinnaker Exploration Company (exploration and production, 2001-2005) and Chairman, President, and CEO of Baker Hughes, Inc. (oilfield services, 2000-2004).
Elizabeth Paige Baumann (1968)
Year of Election or Appointment: 2017
Anti-Money Laundering (AML) Officer
Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer (2012-present) and Senior Vice President (2014-present) of FMR LLC (diversified financial services company) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as AML Officer of the funds (2012-2016), and Vice President (2007-2014) and Deputy Anti-Money Laundering Officer (2007-2012) of FMR LLC.
Craig S. Brown (1977)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Brown also serves as Assistant Treasurer of other funds. Mr. Brown is an employee of Fidelity Investments (2013-present).
John J. Burke III (1964)
Year of Election or Appointment: 2018
Chief Financial Officer
Mr. Burke also serves as Chief Financial Officer of other funds. Mr. Burke serves as Head of Investment Operations for Fidelity Fund and Investment Operations (2018-present) and is an employee of Fidelity Investments (1998-present). Previously Mr. Burke served as head of Asset Management Investment Operations (2012-2018).
William C. Coffey (1969)
Year of Election or Appointment: 2018
Secretary and Chief Legal Officer (CLO)
Mr. Coffey also serves as Secretary and CLO of other funds. Mr. Coffey serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2018-present); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2018-present); and CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2018-present). He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Assistant Secretary of certain funds (2009-2018) and as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Timothy M. Cohen (1969)
Year of Election or Appointment: 2018
Vice President
Mr. Cohen also serves as Vice President of other funds. Mr. Cohen serves as Executive Vice President of Fidelity SelectCo, LLC (2019-present), Co-Head of Equity (2018-present), a Director of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present), and is an employee of Fidelity Investments. Previously, Mr. Cohen served as Head of Global Equity Research (2016-2018), Chief Investment Officer - Equity and a Director of Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2013-2015) and as a Director of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2017).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds. Mr. Davis serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present), and is an employee of Fidelity Investments (2008-present). Previously, Mr. Deberghes served as President and Treasurer of certain Fidelity® funds (2013-2018). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). Previously, Mr. Deberghes served in other fund officer roles.
Laura M. Del Prato (1964)
Year of Election or Appointment: 2018
Assistant Treasurer
Ms. Del Prato also serves as an officer of other funds. Ms. Del Prato is an employee of Fidelity Investments (2017-present). Prior to joining Fidelity Investments, Ms. Del Prato served as a Managing Director and Treasurer of the JPMorgan Mutual Funds (2014-2017). Prior to JPMorgan, Ms. Del Prato served as a partner at Cohen Fund Audit Services (accounting firm, 2012-2013) and KPMG LLP (accounting firm, 2004-2012).
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2005-present). Previously, Mr. Hogan served as Assistant Treasurer of certain Fidelity® funds (2016-2018).
Pamela R. Holding (1964)
Year of Election or Appointment: 2018
Vice President
Ms. Holding also serves as Vice President of other funds. Ms. Holding serves as Executive Vice President of Fidelity SelectCo, LLC (2019-present), Co-Head of Equity (2018-present) and is an employee of Fidelity Investments (2013-present). Previously, Ms. Holding served as Chief Investment Officer of Fidelity Institutional Asset Management (2013-2018).
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight, serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. Ms. Smith serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), is an employee of Fidelity Investments (2009-present), and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Assistant Treasurer (2013-2018) and Deputy Treasurer (2013-2016) of certain Fidelity® funds.
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
Jim Wegmann (1979)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Wegmann also serves as Assistant Treasurer of other funds. Mr. Wegmann is an employee of Fidelity Investments (2011-present).
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 (February 1, 2019 to July 31, 2019).
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.
| Annualized Expense Ratio-A | Beginning Account Value February 1, 2019 | Ending Account Value July 31, 2019 | Expenses Paid During Period-B February 1, 2019 to July 31, 2019 | |
| Class A | .93% | |||
| Actual | $1,000.00 | $1,051.60 | $4.73 | |
| Hypothetical-C | $1,000.00 | $1,020.18 | $4.66 | |
| Class M | 1.17% | |||
| Actual | $1,000.00 | $1,050.20 | $5.95 | |
| Hypothetical-C | $1,000.00 | $1,018.99 | $5.86 | |
| Class C | 1.69% | |||
| Actual | $1,000.00 | $1,047.00 | $8.58 | |
| Hypothetical-C | $1,000.00 | $1,016.41 | $8.45 | |
| Small Cap Value | .66% | |||
| Actual | $1,000.00 | $1,052.50 | $3.36 | |
| Hypothetical-C | $1,000.00 | $1,021.52 | $3.31 | |
| Class I | .66% | |||
| Actual | $1,000.00 | $1,051.70 | $3.36 | |
| Hypothetical-C | $1,000.00 | $1,021.52 | $3.31 | |
| Class Z | .52% | |||
| Actual | $1,000.00 | $1,053.20 | $2.65 | |
| Hypothetical-C | $1,000.00 | $1,022.22 | $2.61 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
C 5% return per year before expenses
Distributions (Unaudited)
The Board of Trustees of Fidelity Small Cap Value Fund voted to pay to shareholders of record at the opening of business on record date, the following distributions per share derived from capital gains realized from sales of portfolio securities, and dividends derived from net investment income:
| Pay Date | Record Date | Dividends | Capital Gains | |
| Fidelity Small Cap Value Fund | ||||
| Class A | 09/09/19 | 09/06/19 | $0.018 | $0.263 |
| Class M | 09/09/19 | 09/06/19 | $0.000 | $0.263 |
| Class C | 09/09/19 | 09/06/19 | $0.000 | $0.263 |
| Small Cap Value | 09/09/19 | 09/06/19 | $0.040 | $0.263 |
| Class I | 09/09/19 | 09/06/19 | $0.039 | $0.263 |
| Class Z | 09/09/19 | 09/06/19 | $0.055 | $0.263 |
The fund hereby designates as a capital gain dividend with respect to the taxable year ended July 31 2019, $190,880,506, or, if subsequently determined to be different, the net capital gain of such year.
Class A, Class M, Class C, Small Cap Value, Class I and Class Z designate 100% of the dividends distributed in September and December during the fiscal year as qualifying for the dividends–received deduction for corporate shareholders.
Class A, Class M, Class C, Small Cap Value, Class I and Class Z designate 100% of the dividends distributed during the fiscal year as amounts which may be taken into account as a dividend for purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code.
The fund will notify shareholders in January 2020 of amounts for use in preparing 2019 income tax returns.
SCV-ANN-0919
1.803706.114
Fidelity® Series Small Cap Opportunities Fund Annual Report July 31, 2019 |
|
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of a fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a financial advisor, broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from a fund electronically, by contacting your financial intermediary. For Fidelity customers, visit Fidelity's web site or call Fidelity using the contact information listed below.
You may elect to receive all future reports in paper free of charge. If you wish to continue receiving paper copies of your shareholder reports, you may contact your financial intermediary or, if you are a Fidelity customer, visit Fidelity’s website, or call Fidelity at the applicable toll-free number listed below. Your election to receive reports in paper will apply to all funds held with the fund complex/your financial intermediary.
| Account Type | Website | Phone Number |
| Brokerage, Mutual Fund, or Annuity Contracts: | fidelity.com/mailpreferences | 1-800-343-3548 |
| Employer Provided Retirement Accounts: | netbenefits.fidelity.com/preferences (choose 'no' under Required Disclosures to continue to print) | 1-800-343-0860 |
| Advisor Sold Accounts Serviced Through Your Financial Intermediary: | Contact Your Financial Intermediary | Your Financial Intermediary's phone number |
| Advisor Sold Accounts Serviced by Fidelity: | institutional.fidelity.com | 1-877-208-0098 |
Contents
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2019 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT. Forms N-PORT are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-PORT 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.institutional.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.
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
| For the periods ended July 31, 2019 | Past 1 year | Past 5 years | Past 10 years |
| Fidelity® Series Small Cap Opportunities Fund | 1.98% | 8.88% | 13.04% |
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity® Series Small Cap Opportunities Fund on July 31, 2009.
The chart shows how the value of your investment would have changed, and also shows how the Russell 2000® Index performed over the same period.
| Period Ending Values | ||
| $34,056 | Fidelity® Series Small Cap Opportunities Fund | |
| $32,396 | Russell 2000® Index | |
Management's Discussion of Fund Performance
Market Recap: The U.S. equity bellwether S&P 500® index gained 7.99% for the 12 months ending July 31, 2019, beginning the new year on a high note after enduring a historically volatile final quarter of 2018. Upbeat company earnings/outlooks and signs the Federal Reserve may pause on rates boosted stocks to an all-time high on April 30. In May, however, volatility spiked and stocks returned -6.35% for the month amid the Fed’s decision to hold interest rates steady and signal that it had little appetite to adjust them any time soon, as well as retaliatory tariffs imposed on the U.S. by China. The downtrend was similar to late 2018, when many investors fled from risk assets on elevated concerns about future economic growth, global trade and tighter monetary policy. The bull market roared back in June, with the S&P 500® rising 7.05%, and recorded a series of all-time highs in a productive July (+1.44%). For the full 12 months, growth stocks outpaced value, while large-caps handily bested small-caps. By sector, information technology (+19%) led the way, boosted by continued strength in software & services (+26%), the market’s largest industry segment. Three defensive groups also stood out – real estate (+18%), utilities (+17%) and consumer staples (+15%) – followed by consumer discretionary (+10%) and communication services (+8%). In contrast, energy (-16%) was by far the weakest sector. Other notable laggards included materials (0%), financials (+3%), industrials (+4%) and health care (+4%).Comments from Lead Portfolio Manager Morgen Peck: For the fiscal year, the fund gained 1.98%, handily outpacing the -4.42% result of the benchmark Russell 2000® Index. With a number of notable market pullbacks over the past 12 months, it was a volatile period for small-cap equities, which substantially underperformed large-caps (as measured by the broad-based S&P 500®), by more than 12 percentage points. Versus the Russell benchmark, strong stock selection drove the fund's outperformance this period. More specifically, security selection was especially strong within the health care, real estate and consumer discretionary sectors. On an individual stock basis, the portfolio's overweight stake in the shares of refrigerated warehouse and storage company AmeriCold Realty Trust (+59%) lifted the fund's relative result the most, as dividend-paying stocks proved attractive to investors seeking some stability amid an increasingly volatile investment environment. The fund also benefited from holding shares of software firm Everbridge (+126%), which provides critical event management and enterprise safety applications. This period the firm was bolstered by a foundation of solid products and consistent revenue through its software-as-a-service business model. The fund's non-index exposure to cloud-based communications firm RingCentral (+92%) also added value. Conversely, stock picking in the financials sector – banks in particular – along with utilities, detracted modestly. However, in energy, the fund's biggest relative detractor was Colorado-based independent oil & gas producer PDC Energy (-55%), which struggled as energy prices remained low this period. Similarly, the portfolio's out-of-benchmark position in WPX Energy also hampered relative performance.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Note to shareholders: Jennifer Fo Cardillo served as interim Co-Manager while Patrick Venanzi was on a leave of absence from June through August 2018. She came off the fund on August 31, 2018.Investment Summary (Unaudited)
Top Ten Stocks as of July 31, 2019
| % of fund's net assets | |
| Integer Holdings Corp. | 1.0 |
| ICON PLC | 1.0 |
| EMCOR Group, Inc. | 0.9 |
| PS Business Parks, Inc. | 0.9 |
| First Cash Financial Services, Inc. | 0.9 |
| Delek U.S. Holdings, Inc. | 0.9 |
| Hill-Rom Holdings, Inc. | 0.8 |
| Simpson Manufacturing Co. Ltd. | 0.8 |
| Masimo Corp. | 0.8 |
| Kaman Corp. | 0.7 |
| 8.7 |
Top Five Market Sectors as of July 31, 2019
| % of fund's net assets | |
| Financials | 18.0 |
| Health Care | 16.2 |
| Industrials | 14.8 |
| Information Technology | 13.8 |
| Consumer Discretionary | 11.2 |
Asset Allocation (% of fund's net assets)
| As of July 31, 2019* | ||
| Stocks and Equity Futures | 98.7% | |
| Short-Term Investments and Net Other Assets (Liabilities) | 1.3% | |
* Foreign investments - 9.6%
Schedule of Investments July 31, 2019
Showing Percentage of Net Assets
| Common Stocks - 98.5% | |||
| Shares | Value | ||
| COMMUNICATION SERVICES - 2.4% | |||
| Diversified Telecommunication Services - 0.7% | |||
| Iridium Communications, Inc. (a) | 819,500 | $20,848,080 | |
| Vonage Holdings Corp. (a) | 1,496,700 | 18,559,080 | |
| 39,407,160 | |||
| Entertainment - 0.4% | |||
| Cinemark Holdings, Inc. | 453,400 | 18,099,728 | |
| World Wrestling Entertainment, Inc. Class A | 100,000 | 7,278,000 | |
| 25,377,728 | |||
| Interactive Media & Services - 0.3% | |||
| CarGurus, Inc. Class A (a) | 422,800 | 15,757,756 | |
| Media - 1.0% | |||
| Gray Television, Inc. (a) | 866,277 | 15,376,417 | |
| Nexstar Broadcasting Group, Inc. Class A | 107,100 | 10,899,567 | |
| Tegna, Inc. | 1,170,680 | 17,782,629 | |
| The New York Times Co. Class A | 344,800 | 12,302,464 | |
| 56,361,077 | |||
| TOTAL COMMUNICATION SERVICES | 136,903,721 | ||
| CONSUMER DISCRETIONARY - 11.2% | |||
| Auto Components - 1.1% | |||
| Fox Factory Holding Corp. (a) | 283,000 | 22,662,640 | |
| Standard Motor Products, Inc. | 466,334 | 21,456,027 | |
| Stoneridge, Inc. (a) | 596,200 | 19,418,234 | |
| 63,536,901 | |||
| Diversified Consumer Services - 0.6% | |||
| Laureate Education, Inc. Class A (a) | 1,914,000 | 31,370,460 | |
| Hotels, Restaurants & Leisure - 1.7% | |||
| Churchill Downs, Inc. | 287,600 | 34,411,340 | |
| Denny's Corp. (a) | 780,100 | 17,622,459 | |
| Planet Fitness, Inc. (a) | 193,900 | 15,252,174 | |
| Wendy's Co. | 641,500 | 11,668,885 | |
| YETI Holdings, Inc. (b) | 518,200 | 18,012,632 | |
| 96,967,490 | |||
| Household Durables - 2.2% | |||
| Helen of Troy Ltd. (a) | 249,179 | 36,948,262 | |
| M.D.C. Holdings, Inc. | 573,500 | 20,726,290 | |
| Skyline Champion Corp. (a) | 514,900 | 14,674,650 | |
| Taylor Morrison Home Corp. (a) | 1,266,600 | 28,523,832 | |
| TopBuild Corp. (a) | 300,889 | 24,411,125 | |
| 125,284,159 | |||
| Leisure Products - 1.1% | |||
| Acushnet Holdings Corp. | 857,800 | 21,925,368 | |
| Brunswick Corp. | 283,700 | 13,946,692 | |
| Clarus Corp. | 883,795 | 12,700,134 | |
| Johnson Outdoors, Inc. Class A | 204,093 | 13,876,283 | |
| 62,448,477 | |||
| Multiline Retail - 0.2% | |||
| Ollie's Bargain Outlet Holdings, Inc. (a) | 135,000 | 11,433,150 | |
| Specialty Retail - 1.8% | |||
| Monro, Inc. | 340,581 | 28,680,326 | |
| Murphy U.S.A., Inc. (a) | 361,300 | 31,924,468 | |
| The Children's Place Retail Stores, Inc. | 229,200 | 22,385,964 | |
| Williams-Sonoma, Inc. (b) | 288,100 | 19,210,508 | |
| 102,201,266 | |||
| Textiles, Apparel & Luxury Goods - 2.5% | |||
| Carter's, Inc. | 177,700 | 16,529,654 | |
| Columbia Sportswear Co. | 140,900 | 14,932,582 | |
| Deckers Outdoor Corp. (a) | 199,300 | 31,146,604 | |
| Oxford Industries, Inc. | 267,500 | 19,578,325 | |
| Steven Madden Ltd. | 994,547 | 34,321,817 | |
| Wolverine World Wide, Inc. | 854,552 | 23,201,087 | |
| 139,710,069 | |||
| TOTAL CONSUMER DISCRETIONARY | 632,951,972 | ||
| CONSUMER STAPLES - 2.8% | |||
| Food & Staples Retailing - 1.2% | |||
| BJ's Wholesale Club Holdings, Inc. (a) | 885,700 | 20,867,092 | |
| Casey's General Stores, Inc. | 99,700 | 16,142,427 | |
| Performance Food Group Co. (a) | 689,025 | 30,213,746 | |
| 67,223,265 | |||
| Food Products - 1.0% | |||
| Lancaster Colony Corp. | 140,000 | 21,814,800 | |
| Nomad Foods Ltd. (a) | 782,900 | 17,435,183 | |
| Post Holdings, Inc. (a) | 143,700 | 15,407,514 | |
| 54,657,497 | |||
| Household Products - 0.3% | |||
| Central Garden & Pet Co. (a)(b) | 524,100 | 15,922,158 | |
| Personal Products - 0.3% | |||
| Inter Parfums, Inc. | 278,800 | 19,315,264 | |
| TOTAL CONSUMER STAPLES | 157,118,184 | ||
| ENERGY - 3.7% | |||
| Energy Equipment & Services - 1.0% | |||
| Liberty Oilfield Services, Inc. Class A (b) | 1,560,723 | 22,084,230 | |
| Nabors Industries Ltd. | 6,082,201 | 18,003,315 | |
| Oil States International, Inc. (a) | 563,698 | 8,410,374 | |
| Total Energy Services, Inc. | 1,480,777 | 7,808,916 | |
| 56,306,835 | |||
| Oil, Gas & Consumable Fuels - 2.7% | |||
| Delek U.S. Holdings, Inc. | 1,114,000 | 47,991,120 | |
| Diamondback Energy, Inc. | 134,593 | 13,920,954 | |
| Northern Oil & Gas, Inc. (a) | 9,715,900 | 15,739,758 | |
| PDC Energy, Inc. (a) | 1,051,777 | 30,217,553 | |
| Viper Energy Partners LP | 630,774 | 20,348,769 | |
| WPX Energy, Inc. (a) | 2,212,010 | 23,093,384 | |
| 151,311,538 | |||
| TOTAL ENERGY | 207,618,373 | ||
| FINANCIALS - 18.0% | |||
| Banks - 10.3% | |||
| Associated Banc-Corp. | 1,800,712 | 39,021,429 | |
| BancFirst Corp. | 520,345 | 30,356,927 | |
| Banner Corp. | 685,726 | 40,636,123 | |
| City Holding Co. | 474,780 | 36,771,711 | |
| Cullen/Frost Bankers, Inc. | 403,900 | 38,346,266 | |
| First Bancorp, Puerto Rico | 3,635,885 | 39,122,123 | |
| First Citizens Bancshares, Inc. | 63,600 | 29,702,472 | |
| First Hawaiian, Inc. | 1,479,900 | 39,602,124 | |
| First Interstate Bancsystem, Inc. | 1,072,588 | 42,935,698 | |
| First Merchants Corp. | 818,970 | 32,275,608 | |
| Heartland Financial U.S.A., Inc. | 770,715 | 37,063,684 | |
| Independent Bank Corp., Massachusetts | 417,366 | 32,454,380 | |
| Trico Bancshares | 864,330 | 32,628,458 | |
| Trustmark Corp. | 1,141,903 | 40,583,233 | |
| WesBanco, Inc. | 1,139,893 | 41,697,286 | |
| Wintrust Financial Corp. | 415,300 | 29,710,562 | |
| 582,908,084 | |||
| Capital Markets - 1.7% | |||
| Hamilton Lane, Inc. Class A | 546,297 | 32,067,634 | |
| Houlihan Lokey | 547,300 | 25,175,800 | |
| Morningstar, Inc. | 263,538 | 40,052,505 | |
| 97,295,939 | |||
| Consumer Finance - 0.9% | |||
| First Cash Financial Services, Inc. | 497,700 | 50,088,528 | |
| Insurance - 2.9% | |||
| Amerisafe, Inc. | 445,200 | 28,964,712 | |
| Employers Holdings, Inc. | 738,930 | 32,439,027 | |
| First American Financial Corp. | 605,700 | 35,021,574 | |
| Primerica, Inc. | 308,700 | 37,874,403 | |
| White Mountains Insurance Group Ltd. | 29,492 | 31,733,392 | |
| 166,033,108 | |||
| Mortgage Real Estate Investment Trusts - 0.5% | |||
| Redwood Trust, Inc. | 1,806,800 | 30,571,056 | |
| Thrifts & Mortgage Finance - 1.7% | |||
| Essent Group Ltd. | 771,200 | 35,598,592 | |
| NMI Holdings, Inc. (a) | 997,100 | 24,807,848 | |
| WSFS Financial Corp. | 827,605 | 35,065,624 | |
| 95,472,064 | |||
| TOTAL FINANCIALS | 1,022,368,779 | ||
| HEALTH CARE - 16.2% | |||
| Biotechnology - 7.0% | |||
| Abeona Therapeutics, Inc. (a) | 75,649 | 195,931 | |
| ACADIA Pharmaceuticals, Inc. (a) | 1,061,976 | 26,103,370 | |
| Acorda Therapeutics, Inc. (a) | 860,971 | 5,966,529 | |
| Agios Pharmaceuticals, Inc. (a) | 280,045 | 13,472,965 | |
| Allakos, Inc. (a)(b) | 343,188 | 11,932,647 | |
| AnaptysBio, Inc. (a) | 221,900 | 11,918,249 | |
| Argenx SE ADR (a) | 185,300 | 26,027,238 | |
| Ascendis Pharma A/S sponsored ADR (a) | 201,748 | 23,354,348 | |
| Atara Biotherapeutics, Inc. (a) | 76,029 | 1,084,934 | |
| Audentes Therapeutics, Inc. (a) | 318,580 | 12,399,134 | |
| bluebird bio, Inc. (a) | 116,656 | 15,308,767 | |
| Blueprint Medicines Corp. (a) | 249,332 | 24,970,600 | |
| Cellectis SA sponsored ADR (a) | 289,155 | 4,207,205 | |
| Crinetics Pharmaceuticals, Inc. (a) | 588,805 | 11,940,965 | |
| FibroGen, Inc. (a) | 725,100 | 34,268,226 | |
| Heron Therapeutics, Inc. (a) | 737,500 | 12,862,000 | |
| Insmed, Inc. (a) | 785,082 | 17,232,550 | |
| Intercept Pharmaceuticals, Inc. (a) | 217,698 | 13,682,319 | |
| Ionis Pharmaceuticals, Inc. (a) | 149,072 | 9,817,882 | |
| Kezar Life Sciences, Inc. (a) | 857,944 | 4,830,225 | |
| Kura Oncology, Inc. (a) | 554,100 | 10,594,392 | |
| La Jolla Pharmaceutical Co. (a) | 668,700 | 5,590,332 | |
| Mirati Therapeutics, Inc. (a)(b) | 150,900 | 15,965,220 | |
| Neurocrine Biosciences, Inc. (a) | 244,782 | 23,594,537 | |
| Principia Biopharma, Inc. | 421,600 | 15,658,224 | |
| Protagonist Therapeutics, Inc. (a) | 898,006 | 9,896,026 | |
| Sage Therapeutics, Inc. (a) | 105,675 | 16,943,930 | |
| Sarepta Therapeutics, Inc. (a) | 105,800 | 15,748,330 | |
| Scholar Rock Holding Corp. (a) | 22,000 | 270,380 | |
| Zymeworks, Inc. (a) | 77,900 | 1,780,015 | |
| 397,617,470 | |||
| Health Care Equipment & Supplies - 4.1% | |||
| CONMED Corp. | 164,700 | 14,386,545 | |
| Haemonetics Corp. (a) | 348,400 | 42,532,672 | |
| Hill-Rom Holdings, Inc. | 442,900 | 47,230,856 | |
| Integer Holdings Corp. (a) | 672,200 | 58,837,661 | |
| Masimo Corp. (a) | 280,000 | 44,198,000 | |
| STERIS PLC | 168,100 | 25,023,366 | |
| 232,209,100 | |||
| Health Care Providers & Services - 1.8% | |||
| Chemed Corp. | 27,721 | 11,237,816 | |
| G1 Therapeutics, Inc. (a) | 557,700 | 13,836,537 | |
| LHC Group, Inc. (a) | 327,400 | 41,442,292 | |
| Molina Healthcare, Inc. (a) | 264,200 | 35,080,476 | |
| 101,597,121 | |||
| Health Care Technology - 0.6% | |||
| Health Catalyst, Inc. | 82,464 | 3,649,032 | |
| Inovalon Holdings, Inc. Class A (a) | 2,017,755 | 30,266,325 | |
| 33,915,357 | |||
| Life Sciences Tools & Services - 1.1% | |||
| Bruker Corp. | 145,000 | 6,938,250 | |
| ICON PLC (a) | 347,000 | 54,190,990 | |
| 61,129,240 | |||
| Pharmaceuticals - 1.6% | |||
| Morphic Holding, Inc. | 279,700 | 6,315,626 | |
| MyoKardia, Inc. (a) | 344,739 | 18,764,144 | |
| Nektar Therapeutics (a) | 317,700 | 9,041,742 | |
| Theravance Biopharma, Inc. (a) | 663,172 | 13,827,136 | |
| Turning Point Therapeutics, Inc. | 39,400 | 1,569,696 | |
| Xeris Pharmaceuticals, Inc. (a) | 1,207,700 | 14,130,090 | |
| Zogenix, Inc. (a) | 597,900 | 28,800,843 | |
| 92,449,277 | |||
| TOTAL HEALTH CARE | 918,917,565 | ||
| INDUSTRIALS - 14.8% | |||
| Aerospace & Defense - 1.3% | |||
| Moog, Inc. Class A | 534,260 | 43,520,820 | |
| Teledyne Technologies, Inc. (a) | 97,240 | 28,324,067 | |
| 71,844,887 | |||
| Air Freight & Logistics - 0.6% | |||
| Air Transport Services Group, Inc. (a) | 1,313,230 | 30,611,391 | |
| Building Products - 1.9% | |||
| Allegion PLC | 243,090 | 25,169,539 | |
| Armstrong World Industries, Inc. | 362,000 | 35,371,020 | |
| Simpson Manufacturing Co. Ltd. | 744,280 | 45,966,733 | |
| 106,507,292 | |||
| Commercial Services & Supplies - 1.3% | |||
| Interface, Inc. | 1,499,920 | 20,788,891 | |
| Tetra Tech, Inc. | 492,800 | 39,029,760 | |
| Tomra Systems ASA | 533,668 | 15,774,804 | |
| 75,593,455 | |||
| Construction & Engineering - 2.9% | |||
| Comfort Systems U.S.A., Inc. | 801,860 | 33,678,120 | |
| EMCOR Group, Inc. | 612,420 | 51,682,124 | |
| Fluor Corp. | 864,700 | 28,111,397 | |
| Jacobs Engineering Group, Inc. | 256,680 | 21,178,667 | |
| Valmont Industries, Inc. | 214,340 | 29,493,184 | |
| 164,143,492 | |||
| Electrical Equipment - 0.6% | |||
| Generac Holdings, Inc. (a) | 458,229 | 33,129,957 | |
| TPI Composites, Inc. (a)(b) | 105,161 | 2,688,967 | |
| 35,818,924 | |||
| Industrial Conglomerates - 0.7% | |||
| ITT, Inc. | 653,760 | 40,807,699 | |
| Machinery - 2.7% | |||
| AGCO Corp. | 250,140 | 19,260,780 | |
| Allison Transmission Holdings, Inc. | 471,400 | 21,660,830 | |
| ESCO Technologies, Inc. | 421,800 | 35,245,608 | |
| Oshkosh Corp. | 207,300 | 17,324,061 | |
| SPX Flow, Inc. (a) | 837,309 | 33,961,253 | |
| Standex International Corp. | 390,403 | 27,472,659 | |
| 154,925,191 | |||
| Professional Services - 0.7% | |||
| CBIZ, Inc. (a) | 1,790,743 | 41,849,664 | |
| Road & Rail - 0.4% | |||
| Landstar System, Inc. | 177,050 | 19,700,354 | |
| Trading Companies & Distributors - 1.7% | |||
| Kaman Corp. | 690,330 | 43,766,922 | |
| MRC Global, Inc. (a) | 1,725,620 | 26,988,697 | |
| Univar, Inc. (a) | 1,211,879 | 26,806,763 | |
| 97,562,382 | |||
| TOTAL INDUSTRIALS | 839,364,731 | ||
| INFORMATION TECHNOLOGY - 13.8% | |||
| Communications Equipment - 0.4% | |||
| InterDigital, Inc. | 343,367 | 22,123,136 | |
| Electronic Equipment & Components - 1.6% | |||
| ePlus, Inc. (a) | 361,732 | 27,455,459 | |
| Fabrinet (a) | 445,974 | 23,939,884 | |
| Insight Enterprises, Inc. (a) | 449,200 | 24,714,984 | |
| TTM Technologies, Inc. (a) | 1,536,685 | 16,073,725 | |
| 92,184,052 | |||
| IT Services - 5.0% | |||
| Amdocs Ltd. | 211,700 | 13,546,683 | |
| CACI International, Inc. Class A (a) | 134,471 | 28,931,436 | |
| Endava PLC ADR (a) | 502,206 | 18,581,622 | |
| EPAM Systems, Inc. (a) | 95,948 | 18,593,763 | |
| ExlService Holdings, Inc. (a) | 477,384 | 32,839,245 | |
| ManTech International Corp. Class A | 302,144 | 20,781,464 | |
| Maximus, Inc. | 464,201 | 34,123,416 | |
| Perspecta, Inc. | 1,003,400 | 23,409,322 | |
| Presidio, Inc. | 1,400,100 | 19,601,400 | |
| Science Applications International Corp. | 477,299 | 40,747,016 | |
| WNS Holdings Ltd. sponsored ADR (a) | 468,503 | 29,525,059 | |
| 280,680,426 | |||
| Semiconductors & Semiconductor Equipment - 2.7% | |||
| Advanced Energy Industries, Inc. (a) | 404,099 | 23,599,382 | |
| Brooks Automation, Inc. | 692,400 | 26,865,120 | |
| Cabot Microelectronics Corp. | 278,000 | 33,818,700 | |
| Entegris, Inc. | 581,113 | 25,284,227 | |
| Nanometrics, Inc. (a) | 424,105 | 13,308,415 | |
| Semtech Corp. (a) | 625,200 | 33,054,324 | |
| 155,930,168 | |||
| Software - 4.1% | |||
| Altair Engineering, Inc. Class A (a)(b) | 506,800 | 21,087,948 | |
| Everbridge, Inc. (a) | 399,600 | 40,879,080 | |
| Five9, Inc. (a) | 690,900 | 34,109,733 | |
| j2 Global, Inc. | 87,100 | 7,759,739 | |
| LivePerson, Inc. (a) | 916,678 | 30,424,543 | |
| Q2 Holdings, Inc. (a) | 322,300 | 25,742,101 | |
| RingCentral, Inc. (a) | 144,951 | 20,580,143 | |
| ShotSpotter, Inc. (a)(b) | 291,500 | 10,957,485 | |
| SPS Commerce, Inc. (a) | 182,738 | 20,435,591 | |
| Workiva, Inc. (a) | 353,700 | 20,334,213 | |
| 232,310,576 | |||
| TOTAL INFORMATION TECHNOLOGY | 783,228,358 | ||
| MATERIALS - 4.4% | |||
| Chemicals - 1.9% | |||
| Chase Corp. | 191,894 | 19,876,381 | |
| Ingevity Corp. (a) | 286,604 | 28,241,958 | |
| Innospec, Inc. | 328,800 | 30,703,344 | |
| Olin Corp. | 673,400 | 13,515,138 | |
| Tronox Holdings PLC | 1,216,000 | 13,448,960 | |
| 105,785,781 | |||
| Construction Materials - 0.7% | |||
| Eagle Materials, Inc. | 204,100 | 16,895,398 | |
| nVent Electric PLC | 899,200 | 22,291,168 | |
| 39,186,566 | |||
| Containers & Packaging - 0.4% | |||
| Owens-Illinois, Inc. | 676,400 | 11,478,508 | |
| Sonoco Products Co. | 170,400 | 10,229,112 | |
| 21,707,620 | |||
| Metals & Mining - 1.0% | |||
| Alcoa Corp. (a) | 338,100 | 7,603,869 | |
| Atkore International Group, Inc. (a) | 592,887 | 16,179,886 | |
| B2Gold Corp. (a) | 4,774,200 | 15,229,112 | |
| Steel Dynamics, Inc. | 522,718 | 16,470,844 | |
| 55,483,711 | |||
| Paper & Forest Products - 0.4% | |||
| Louisiana-Pacific Corp. | 955,200 | 24,968,928 | |
| TOTAL MATERIALS | 247,132,606 | ||
| REAL ESTATE - 7.6% | |||
| Equity Real Estate Investment Trusts (REITs) - 6.9% | |||
| American Assets Trust, Inc. | 930,900 | 43,193,760 | |
| Americold Realty Trust | 1,097,000 | 36,782,410 | |
| CubeSmart | 1,154,900 | 39,208,855 | |
| Equity Lifestyle Properties, Inc. | 349,579 | 43,435,191 | |
| Essential Properties Realty Trust, Inc. | 1,510,200 | 31,895,424 | |
| Four Corners Property Trust, Inc. | 1,239,154 | 33,382,809 | |
| PS Business Parks, Inc. | 294,200 | 51,485,000 | |
| Rexford Industrial Realty, Inc. | 981,100 | 40,617,540 | |
| Store Capital Corp. | 906,703 | 31,018,310 | |
| Terreno Realty Corp. | 894,300 | 43,695,498 | |
| 394,714,797 | |||
| Real Estate Management & Development - 0.7% | |||
| Cushman & Wakefield PLC | 1,919,200 | 38,076,928 | |
| TOTAL REAL ESTATE | 432,791,725 | ||
| UTILITIES - 3.6% | |||
| Electric Utilities - 2.3% | |||
| Allete, Inc. | 363,800 | 31,632,410 | |
| El Paso Electric Co. | 205,480 | 13,615,105 | |
| Hawaiian Electric Industries, Inc. | 401,100 | 17,969,280 | |
| IDACORP, Inc. | 160,600 | 16,390,836 | |
| PNM Resources, Inc. | 589,962 | 29,303,413 | |
| Vistra Energy Corp. | 988,400 | 21,211,064 | |
| 130,122,108 | |||
| Gas Utilities - 1.3% | |||
| New Jersey Resources Corp. | 400,500 | 19,972,935 | |
| Southwest Gas Holdings, Inc. | 309,237 | 27,494,262 | |
| Spire, Inc. | 333,208 | 27,459,671 | |
| 74,926,868 | |||
| TOTAL UTILITIES | 205,048,976 | ||
| TOTAL COMMON STOCKS | |||
| (Cost $4,627,097,807) | 5,583,444,990 | ||
| Principal Amount | Value | ||
| U.S. Treasury Obligations - 0.1% | |||
| U.S. Treasury Bills, yield at date of purchase 2.31% to 2.34% 8/22/19 to 8/29/19 (c) | |||
| (Cost $5,891,582) | 5,900,000 | 5,892,748 | |
| Shares | Value | ||
| Money Market Funds - 4.7% | |||
| Fidelity Cash Central Fund 2.43% (d) | 176,301,753 | $176,337,013 | |
| Fidelity Securities Lending Cash Central Fund 2.43% (d)(e) | 86,289,232 | 86,297,861 | |
| TOTAL MONEY MARKET FUNDS | |||
| (Cost $262,633,254) | 262,634,874 | ||
| TOTAL INVESTMENT IN SECURITIES - 103.3% | |||
| (Cost $4,895,622,643) | 5,851,972,612 | ||
| NET OTHER ASSETS (LIABILITIES) - (3.3)% | (184,515,051) | ||
| NET ASSETS - 100% | $5,667,457,561 |
| Futures Contracts | |||||
| Number of contracts | Expiration Date | Notional Amount | Value | Unrealized Appreciation/(Depreciation) | |
| Purchased | |||||
| Equity Index Contracts | |||||
| CME E-mini Russell 2000 Index Contracts (United States) | 165 | Sept. 2019 | $13,007,775 | $362,983 | $362,983 |
The notional amount of futures purchased as a percentage of Net Assets is 0.2%
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Security or a portion of the security was pledged to cover margin requirements for futures contracts. At period end, the value of securities pledged amounted to $4,004,970.
(d) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(e) Investment made with cash collateral received from securities on loan.
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 | $3,208,250 |
| Fidelity Securities Lending Cash Central Fund | 914,300 |
| Total | $4,122,550 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable. Amount for Fidelity Securities Lending Cash Central Fund 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.
Other Affiliated Issuers
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows:
| Affiliate | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Realized Gain (loss) | Change in Unrealized appreciation (depreciation) | Value, end of period |
| Kezar Life Sciences, Inc. | $17,029,271 | $1,029,831 | $7,339,234 | $-- | $1,664,460 | $(7,554,103) | $-- |
| Total | $17,029,271 | $1,029,831 | $7,339,234 | $-- | $1,664,460 | $(7,554,103) | $-- |
Investment Valuation
The following is a summary of the inputs used, as of July 31, 2019, 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 below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| Valuation Inputs at Reporting Date: | ||||
| Description | Total | Level 1 | Level 2 | Level 3 |
| Investments in Securities: | ||||
| Equities: | ||||
| Communication Services | $136,903,721 | $136,903,721 | $-- | $-- |
| Consumer Discretionary | 632,951,972 | 632,951,972 | -- | -- |
| Consumer Staples | 157,118,184 | 157,118,184 | -- | -- |
| Energy | 207,618,373 | 207,618,373 | -- | -- |
| Financials | 1,022,368,779 | 1,022,368,779 | -- | -- |
| Health Care | 918,917,565 | 918,917,565 | -- | -- |
| Industrials | 839,364,731 | 839,364,731 | -- | -- |
| Information Technology | 783,228,358 | 783,228,358 | -- | -- |
| Materials | 247,132,606 | 247,132,606 | -- | -- |
| Real Estate | 432,791,725 | 432,791,725 | -- | -- |
| Utilities | 205,048,976 | 205,048,976 | -- | -- |
| U.S. Government and Government Agency Obligations | 5,892,748 | -- | 5,892,748 | -- |
| Money Market Funds | 262,634,874 | 262,634,874 | -- | -- |
| Total Investments in Securities: | $5,851,972,612 | $5,846,079,864 | $5,892,748 | $-- |
| Derivative Instruments: | ||||
| Assets | ||||
| Futures Contracts | $362,983 | $362,983 | $-- | $-- |
| Total Assets | $362,983 | $362,983 | $-- | $-- |
| Total Derivative Instruments: | $362,983 | $362,983 | $-- | $-- |
Value of Derivative Instruments
The following table is a summary of the Fund's value of derivative instruments by primary risk exposure as of July 31, 2019. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements.
| Primary Risk Exposure / Derivative Type | Value | |
| Asset | Liability | |
| Equity Risk | ||
| Futures Contracts(a) | $362,983 | $0 |
| Total Equity Risk | 362,983 | 0 |
| Total Value of Derivatives | $362,983 | $0 |
(a) Reflects gross cumulative appreciation (depreciation) on futures contracts as presented in the Schedule of Investments. In the Statement of Assets and Liabilities, the period end daily variation margin is included in receivable or payable for daily variation margin on futures contracts, and the net cumulative appreciation (depreciation) is included in distributable earnings.
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
| July 31, 2019 | ||
| Assets | ||
| Investment in securities, at value (including securities loaned of $84,948,572) — See accompanying schedule: Unaffiliated issuers (cost $4,632,989,389) | $5,589,337,738 | |
| Fidelity Central Funds (cost $262,633,254) | 262,634,874 | |
| Total Investment in Securities (cost $4,895,622,643) | $5,851,972,612 | |
| Receivable for investments sold | 107,223,277 | |
| Receivable for fund shares sold | 64,989 | |
| Dividends receivable | 1,165,906 | |
| Distributions receivable from Fidelity Central Funds | 464,019 | |
| Other receivables | 30,013 | |
| Total assets | 5,960,920,816 | |
| Liabilities | ||
| Payable to custodian bank | $1,545,072 | |
| Payable for investments purchased | 10,839,046 | |
| Payable for fund shares redeemed | 194,625,643 | |
| Payable for daily variation margin on futures contracts | 117,010 | |
| Other payables and accrued expenses | 45,541 | |
| Collateral on securities loaned | 86,290,943 | |
| Total liabilities | 293,463,255 | |
| Net Assets | $5,667,457,561 | |
| Net Assets consist of: | ||
| Paid in capital | $4,434,218,505 | |
| Total distributable earnings (loss) | 1,233,239,056 | |
| Net Assets | $5,667,457,561 | |
| Net Asset Value and Maximum Offering Price | ||
| Net Asset Value, offering price and redemption price per share ($5,667,457,561 ÷ 403,651,822 shares) | $14.04 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| Year ended July 31, 2019 | ||
| Investment Income | ||
| Dividends | $60,279,393 | |
| Interest | 76,129 | |
| Income from Fidelity Central Funds (including $914,300 from security lending) | 4,122,550 | |
| Total income | 64,478,072 | |
| Expenses | ||
| Custodian fees and expenses | $94,950 | |
| Independent trustees' fees and expenses | 31,748 | |
| Commitment fees | 15,316 | |
| Total expenses before reductions | 142,014 | |
| Expense reductions | (83,430) | |
| Total expenses after reductions | 58,584 | |
| Net investment income (loss) | 64,419,488 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | 404,709,944 | |
| Fidelity Central Funds | (4,605) | |
| Other affiliated issuers | 1,664,460 | |
| Foreign currency transactions | (34,107) | |
| Futures contracts | 1,291,205 | |
| Total net realized gain (loss) | 407,626,897 | |
| Change in net unrealized appreciation (depreciation) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | (356,103,334) | |
| Fidelity Central Funds | 1,418 | |
| Other affiliated issuers | (7,554,103) | |
| Assets and liabilities in foreign currencies | (30,306) | |
| Futures contracts | 362,983 | |
| Total change in net unrealized appreciation (depreciation) | (363,323,342) | |
| Net gain (loss) | 44,303,555 | |
| Net increase (decrease) in net assets resulting from operations | $108,723,043 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Year ended July 31, 2019 | Year ended July 31, 2018 | |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $64,419,488 | $63,762,201 |
| Net realized gain (loss) | 407,626,897 | 604,793,879 |
| Change in net unrealized appreciation (depreciation) | (363,323,342) | 384,663,967 |
| Net increase (decrease) in net assets resulting from operations | 108,723,043 | 1,053,220,047 |
| Distributions to shareholders | (659,882,676) | – |
| Distributions to shareholders from net investment income | – | (45,798,335) |
| Distributions to shareholders from net realized gain | – | (554,772,271) |
| Total distributions | (659,882,676) | (600,570,606) |
| Share transactions - net increase (decrease) | 221,286,725 | 86,531,896 |
| Total increase (decrease) in net assets | (329,872,908) | 539,181,337 |
| Net Assets | ||
| Beginning of period | 5,997,330,469 | 5,458,149,132 |
| End of period | $5,667,457,561 | $5,997,330,469 |
| Other Information | ||
| Undistributed net investment income end of period | $27,232,215 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Series Small Cap Opportunities Fund
| Years ended July 31, | 2019 | 2018 | 2017 | 2016 | 2015 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $15.46 | $14.42 | $12.94 | $13.83 | $12.96 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .15 | .16 | .06 | .06 | .05 |
| Net realized and unrealized gain (loss) | .12 | 2.44 | 1.52 | (.22) | 1.53 |
| Total from investment operations | .27 | 2.60 | 1.58 | (.16) | 1.58 |
| Distributions from net investment income | (.14) | (.12) | (.07) | (.05) | (.04) |
| Distributions from net realized gain | (1.55) | (1.45) | (.03) | (.68) | (.66) |
| Total distributions | (1.69) | (1.56)B | (.10) | (.73)C | (.71) |
| Net asset value, end of period | $14.04 | $15.46 | $14.42 | $12.94 | $13.83 |
| Total ReturnD | 1.98% | 19.84% | 12.22% | (.94)% | 12.66% |
| Ratios to Average Net AssetsE,F | |||||
| Expenses before reductions | - %G | - %G | .66% | .85% | .77% |
| Expenses net of fee waivers, if any | - %G | - %G | .66% | .85% | .76% |
| Expenses net of all reductions | - %G | - %G | .65% | .84% | .76% |
| Net investment income (loss) | 1.13% | 1.10% | .42% | .46% | .41% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $5,667,458 | $5,997,330 | $2,509,347 | $2,433,489 | $2,647,013 |
| Portfolio turnover rateH | 59% | 68% | 58% | 58% | 59% |
A Calculated based on average shares outstanding during the period.
B Total distributions of $1.56 per share is comprised of distributions from net investment income of $.117 and distributions from net realized gain of $1.447 per share.
C Total distributions of $.71 per share is comprised of distributions from net investment income of $.042 and distributions from net realized gain of $.664 per share.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
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 Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
G Amount represents less than .005%.
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended July 31, 2019
1. Organization.
Fidelity Series Small Cap Opportunities Fund (the Fund) is a fund of Fidelity Securities Fund (the Trust) and is authorized to issue an unlimited number of shares. Shares of the Fund are only available for purchase by mutual funds for which Fidelity Management & Research Company (FMR) or an affiliate serves as an investment manager and FMR investment professionals. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. Effective August 28, 2017, the Fund no longer offered Class F, and all outstanding shares of Class F were exchanged for shares of Series Small Cap Opportunities.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date ranged from less than .005% to .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investments Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. U.S. government and government agency obligations are valued by pricing vendors who utilize matrix pricing which considers prepayment speed assumptions, attributes of the collateral, yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded and are categorized as Level 1 in the hierarchy. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of July 31, 2019 is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. As of July 31, 2019, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to futures contracts, foreign currency transactions, market discount and losses deferred due to wash sales and excise tax regulations.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
| Gross unrealized appreciation | $1,185,253,134 |
| Gross unrealized depreciation | (237,128,456) |
| Net unrealized appreciation (depreciation) | $948,124,678 |
| Tax Cost | $4,903,847,934 |
The tax-based components of distributable earnings as of period end were as follows:
| Undistributed ordinary income | $33,526,334 |
| Undistributed long-term capital gain | $304,309,115 |
| Net unrealized appreciation (depreciation) on securities and other investments | $948,104,298 |
The Fund intends to elect to defer to its next fiscal year $52,700,691 of capital losses recognized during the period November 1, 2018 to July 31, 2019.
The tax character of distributions paid was as follows:
| July 31, 2019 | July 31, 2018 | |
| Ordinary Income | $190,031,648 | $ 45,798,335 |
| Long-term Capital Gains | 469,851,028 | 554,772,271 |
| Total | $659,882,676 | $ 600,570,606 |
New Rule Issuance. During August 2018, the U.S. Securities and Exchange Commission issued Final Rule Release No. 33-10532, Disclosure Update and Simplification. This Final Rule includes amendments specific to registered investment companies that are intended to eliminate overlap in disclosure requirements between Regulation S-X and GAAP. In accordance with these amendments, certain line-items in the Fund's financial statements have been combined or removed for the current period as outlined in the table below.
| Financial Statement | Current Line-Item Presentation (As Applicable) | Prior Line-Item Presentation (As Applicable) |
| Statement of Assets and Liabilities | Total distributable earnings (loss) | Undistributed/Distributions in excess of/Accumulated net investment income (loss) Accumulated/Undistributed net realized gain (loss) Net unrealized appreciation (depreciation) |
| Statement of Changes in Net Assets | N/A - removed | Undistributed/Distributions in excess of/Accumulated net investment income (loss) end of period |
| Statement of Changes in Net Assets | Distributions to shareholders | Distributions to shareholders from net investment income Distributions to shareholders from net realized gain |
| Distributions to Shareholders Note to Financial Statements | Distributions to shareholders | Distributions to shareholders from net investment income Distributions to shareholders from net realized gain |
4. Derivative Instruments.
Risk Exposures and the Use of Derivative Instruments. The Fund's investment objective allows the Fund to enter into various types of derivative contracts, including futures contracts. Derivatives are investments whose value is primarily derived from underlying assets, indices or reference rates and may be transacted on an exchange or over-the-counter (OTC). Derivatives may involve a future commitment to buy or sell a specified asset based on specified terms, to exchange future cash flows at periodic intervals based on a notional principal amount, or for one party to make one or more payments upon the occurrence of specified events in exchange for periodic payments from the other party.
The Fund used derivatives to increase returns and to manage exposure to certain risks as defined below. The success of any strategy involving derivatives depends on analysis of numerous economic factors, and if the strategies for investment do not work as intended, the Fund may not achieve its objectives.
The Fund's use of derivatives increased or decreased its exposure to the following risk:
| Equity Risk | Equity risk relates to the fluctuations in the value of financial instruments as a result of changes in market prices (other than those arising from interest rate risk or foreign exchange risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment. |
The Fund is also exposed to additional risks from investing in derivatives, such as liquidity risk and counterparty credit risk. Liquidity risk is the risk that the Fund will be unable to close out the derivative in the open market in a timely manner. Counterparty credit risk is the risk that the counterparty will not be able to fulfill its obligation to the Fund. Counterparty credit risk related to exchange-traded futures contracts may be mitigated by the protection provided by the exchange on which they trade.
Investing in derivatives may involve greater risks than investing in the underlying assets directly and, to varying degrees, may involve risk of loss in excess of any initial investment and collateral received and amounts recognized in the Statement of Assets and Liabilities. In addition, there may be the risk that the change in value of the derivative contract does not correspond to the change in value of the underlying instrument.
Futures Contracts. A futures contract is an agreement between two parties to buy or sell a specified underlying instrument for a fixed price at a specified future date. The Fund used futures contracts to manage its exposure to the stock market.
Upon entering into a futures contract, a fund is required to deposit either cash or securities (initial margin) with a clearing broker in an amount equal to a certain percentage of the face value of the contract. Futures contracts are marked-to-market daily and subsequent daily payments (variation margin) are made or received by a fund depending on the daily fluctuations in the value of the futures contracts and are recorded as unrealized appreciation or (depreciation). This receivable and/or payable, if any, is included in daily variation margin on futures contracts in the Statement of Assets and Liabilities. Realized gain or (loss) is recorded upon the expiration or closing of a futures contract. The net realized gain (loss) and change in net unrealized appreciation (depreciation) on futures contracts during the period is presented in the Statement of Operations.
Any open futures contracts at period end are presented in the Schedule of Investments under the caption "Futures Contracts". The notional amount at value reflects each contract's exposure to the underlying instrument or index at period end and is representative of volume of activity during the period. Securities deposited to meet initial margin requirements are identified in the Schedule of Investments.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $3,289,658,202 and $3,693,613,109, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund does not pay a management fee. Under the management contract, the investment adviser or an affiliate pays all ordinary operating expenses of the Fund, except custody fees, fees and expenses of the independent Trustees, and certain miscellaneous expenses such as proxy and shareholder meeting expenses.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $188,659 for the period.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
Other. During the period, the investment adviser reimbursed the Fund for certain losses in the amount of $6,639.
7. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $15,316 and is reflected in Commitment fees on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
8. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. For equity securities, lending agents are used, including National Financial Services (NFS), an affiliate of the Fund. Pursuant to a securities lending agreement, NFS will receive a fee, which is capped at 9.9% of daily lending revenue, for its services as lending agent. The Fund may lend securities to certain qualified borrowers, including NFS. 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. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. The value of securities loaned to NFS, as affiliated borrower, at period end was $10,616,745. Total fees paid by the Fund to NFS, as lending agent, amounted to $9,328. 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 $54,684 from securities loaned to NFS, as affiliated borrower.
9. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $83,430 for the period.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Year ended July 31, 2019 | Year ended July 31, 2018 | |
| Distributions to shareholders | ||
| Series Small Cap Opportunities | $659,882,676 | $– |
| From net investment income | ||
| Series Small Cap Opportunities | $– | $45,798,335 |
| From net realized gain | ||
| Series Small Cap Opportunities | $– | $554,772,271 |
11. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Shares | Dollars | Dollars | |
| Year ended July 31, 2019 | Year ended July 31, 2018 | Year ended July 31, 2019 | Year ended July 31, 2018 | |
| Series Small Cap Opportunities | ||||
| Shares sold | 37,656,564 | 239,100,798 | $506,733,820 | $3,373,951,145 |
| Reinvestment of distributions | 47,034,659 | 44,122,337 | 659,882,676 | 600,570,606 |
| Shares redeemed | (68,970,531) | (69,346,858) | (945,329,771) | (1,011,412,547) |
| Net increase (decrease) | 15,720,692 | 213,876,277 | $221,286,725 | $2,963,109,204 |
| Class F | ||||
| Shares sold | – | 1,009,181 | $– | $14,321,228 |
| Shares redeemed | – | (204,251,733) | – | (2,890,898,536) |
| Net increase (decrease) | – | (203,242,552) | $– | $(2,876,577,308) |
12. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
At the end of the period, mutual funds managed by the investment adviser or its affiliates were the owners of record of all of the outstanding shares of the Fund.
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Securities Fund and Shareholders of Fidelity Series Small Cap Opportunities Fund:
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statement of assets and liabilities of Fidelity Series Small Cap Opportunities Fund (the "Fund"), a fund of Fidelity Securities Fund, including the schedule of investments, as of July 31, 2019, the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of July 31, 2019, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund's financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of July 31, 2019, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/ Deloitte & Touche LLP
Boston, Massachusetts
September 17, 2019
We have served as the auditor of one or more of the Fidelity investment companies since 1999.
Trustees and Officers
The Trustees, Members of the Advisory Board (if any), and officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Except for Jonathan Chiel, each of the Trustees oversees 298 funds. Mr. Chiel oversees 170 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the fund is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund’s Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-877-208-0098.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Board Structure and Oversight Function. James C. Curvey is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Ned C. Lautenbach serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and other equity funds. The asset allocation funds may invest in Fidelity® funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Jonathan Chiel (1957)
Year of Election or Appointment: 2016
Trustee
Mr. Chiel also serves as Trustee of other Fidelity® funds. Mr. Chiel is Executive Vice President and General Counsel for FMR LLC (diversified financial services company, 2012-present). Previously, Mr. Chiel served as general counsel (2004-2012) and senior vice president and deputy general counsel (2000-2004) for John Hancock Financial Services; a partner with Choate, Hall & Stewart (1996-2000) (law firm); and an Assistant United States Attorney for the United States Attorney’s Office of the District of Massachusetts (1986-95), including Chief of the Criminal Division (1993-1995). Mr. Chiel is a director on the boards of the Boston Bar Foundation and the Maimonides School.
James C. Curvey (1935)
Year of Election or Appointment: 2007
Trustee
Chairman of the Board of Trustees
Mr. Curvey also serves as Trustee of other Fidelity® funds. Mr. Curvey is Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey is an Overseer Emeritus for the Boston Symphony Orchestra, a Director of Artis-Naples, and a Trustee of Brewster Academy in Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-2018), Director of Fidelity Investments Money Management, Inc. (investment adviser firm, 2009-2014) and a Director of FMR and FMR Co., Inc. (investment adviser firms, 2007-2014).
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), as a member of the Independent Directors Council (IDC) Governing Council (2010-2015), and as a member of the Board of Directors for The Brookville Center for Children’s Services, Inc. (2009-2017). Mr. Dirks is a member of the Finance Committee (2016-present) and Board of Directors (2017-present) and is Treasurer (2018-present) of the Asolo Repertory Theatre.
Donald F. Donahue (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Donahue also serves as a Trustee of other Fidelity® funds. Mr. Donahue is President and Chief Executive Officer of Miranda Partners, LLC (risk consulting for the financial services industry, 2012-present). Previously, Mr. Donahue served as a Member of the Advisory Board of certain Fidelity® funds (2015-2018) and Chief Executive Officer (2006-2012), Chief Operating Officer (2003-2006), and Managing Director, Customer Marketing and Development (1999-2003) of The Depository Trust & Clearing Corporation (financial markets infrastructure). Mr. Donahue serves as a Member (2007-present) and Co-Chairman (2016-present) of the Board of Directors of United Way of New York, Member of the Board of Directors of NYC Leadership Academy (2012-present) and Member of the Board of Advisors of Ripple Labs, Inc. (financial services, 2015-present). He also served as Chairman (2010-2012) and Member of the Board of Directors (2012-2013) of Omgeo, LLC (financial services), Treasurer of United Way of New York (2012-2016), and Member of the Board of Directors of XBRL US (financial services non-profit, 2009-2012) and the International Securities Services Association (2009-2012).
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2014-2017) and a member (2010-2017) of the Board of Directors of Dave & Buster’s Entertainment, Inc. (restaurant and entertainment complexes), as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association, and as a member of the Board of Directors for The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), Earth Fare, Inc. (retail grocery, 2010-2014), and The Western Union Company (global money transfer, 2006-2011).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as Chair (2018-present) and Member (2013-present) of the Board of Governors, State University System of Florida and is a member of the Council on Foreign Relations (1994-present). He is also a member and has most recently served as Chairman of the Board of Directors of Artis-Naples (2012-present). Previously, Mr. Lautenbach served as a member and then Lead Director of the Board of Directors of Eaton Corporation (diversified industrial, 1997-2016). He was also a Partner and Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007). In addition, Mr. Lautenbach also had a 30-year career with IBM (technology company) during which time he served as Senior Vice President and a member of the Corporate Executive Committee (1968-1998).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-2018).
Cornelia M. Small (1944)
Year of Election or Appointment: 2005
Trustee
Ms. Small also serves as Trustee of other Fidelity® funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.
Garnett A. Smith (1947)
Year of Election or Appointment: 2018
Trustee
Mr. Smith also serves as Trustee of other Fidelity® funds. Prior to Mr. Smith's retirement, he served as Chairman and Chief Executive Officer of Inbrand Corp. (manufacturer of personal absorbent products, 1990-1997). He also served as President (1986-1990) of Inbrand Corp. Prior to his employment with Inbrand Corp., he was employed by a retail fabric chain and North Carolina National Bank. In addition, Mr. Smith served as a Member of the Advisory Board of certain Fidelity® funds (2012-2013) and as a board member of the Jackson Hole Land Trust (2009-2012).
David M. Thomas (1949)
Year of Election or Appointment: 2008
Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present) and as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), a Director of Fortune Brands, Inc. (consumer products, 2000-2011), and a member of the Board of Trustees of the University of Florida (2013-2018).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Advisory Board Members and Officers:
Correspondence intended for a Member of the Advisory Board (if any) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235. Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Vicki L. Fuller (1957)
Year of Election or Appointment: 2018
Member of the Advisory Board
Ms. Fuller also serves as Member of the Advisory Board of other Fidelity® funds. Ms. Fuller serves as a member of the Board of Directors, Audit Committee, and Nominating and Governance Committee of The Williams Companies, Inc. (natural gas infrastructure, 2018-present). Previously, Ms. Fuller served as the Chief Investment Officer of the New York State Common Retirement Fund (2012-2018) and held a variety of positions at AllianceBernstein L.P. (global asset management, 1985-2012), including Managing Director (2006-2012) and Senior Vice President and Senior Portfolio Manager (2001-2006).
Peter S. Lynch (1944)
Year of Election or Appointment: 2003
Member of the Advisory Board
Mr. Lynch also serves as Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of FMR (investment adviser firm) and FMR Co., Inc. (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).
Michael E. Wiley (1950)
Year of Election or Appointment: 2018
Member of the Advisory Board
Mr. Wiley also serves as Trustee or Member of the Advisory Board of other Fidelity® funds. Mr. Wiley serves as a Director of High Point Resources (exploration and production, 2005-present). Previously, Mr. Wiley served as a Director of Andeavor Corporation (independent oil refiner and marketer, 2005-2018), a Director of Andeavor Logistics LP (natural resources logistics, 2015-2018), a Director of Post Oak Bank (privately-held bank, 2004-2018), a Director of Asia Pacific Exploration Consolidated (international oil and gas exploration and production, 2008-2013), a member of the Board of Trustees of the University of Tulsa (2000-2006; 2007-2010), a Senior Energy Advisor of Katzenbach Partners, LLC (consulting, 2006-2007), an Advisory Director of Riverstone Holdings (private investment), a Director of Spinnaker Exploration Company (exploration and production, 2001-2005) and Chairman, President, and CEO of Baker Hughes, Inc. (oilfield services, 2000-2004).
Elizabeth Paige Baumann (1968)
Year of Election or Appointment: 2017
Anti-Money Laundering (AML) Officer
Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer (2012-present) and Senior Vice President (2014-present) of FMR LLC (diversified financial services company) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as AML Officer of the funds (2012-2016), and Vice President (2007-2014) and Deputy Anti-Money Laundering Officer (2007-2012) of FMR LLC.
Craig S. Brown (1977)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Brown also serves as Assistant Treasurer of other funds. Mr. Brown is an employee of Fidelity Investments (2013-present).
John J. Burke III (1964)
Year of Election or Appointment: 2018
Chief Financial Officer
Mr. Burke also serves as Chief Financial Officer of other funds. Mr. Burke serves as Head of Investment Operations for Fidelity Fund and Investment Operations (2018-present) and is an employee of Fidelity Investments (1998-present). Previously Mr. Burke served as head of Asset Management Investment Operations (2012-2018).
William C. Coffey (1969)
Year of Election or Appointment: 2018
Secretary and Chief Legal Officer (CLO)
Mr. Coffey also serves as Secretary and CLO of other funds. Mr. Coffey serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2018-present); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2018-present); and CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2018-present). He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Assistant Secretary of certain funds (2009-2018) and as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Timothy M. Cohen (1969)
Year of Election or Appointment: 2018
Vice President
Mr. Cohen also serves as Vice President of other funds. Mr. Cohen serves as Executive Vice President of Fidelity SelectCo, LLC (2019-present), Co-Head of Equity (2018-present), a Director of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present), and is an employee of Fidelity Investments. Previously, Mr. Cohen served as Head of Global Equity Research (2016-2018), Chief Investment Officer - Equity and a Director of Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2013-2015) and as a Director of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2017).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds. Mr. Davis serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present), and is an employee of Fidelity Investments (2008-present). Previously, Mr. Deberghes served as President and Treasurer of certain Fidelity® funds (2013-2018). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). Previously, Mr. Deberghes served in other fund officer roles.
Laura M. Del Prato (1964)
Year of Election or Appointment: 2018
Assistant Treasurer
Ms. Del Prato also serves as an officer of other funds. Ms. Del Prato is an employee of Fidelity Investments (2017-present). Prior to joining Fidelity Investments, Ms. Del Prato served as a Managing Director and Treasurer of the JPMorgan Mutual Funds (2014-2017). Prior to JPMorgan, Ms. Del Prato served as a partner at Cohen Fund Audit Services (accounting firm, 2012-2013) and KPMG LLP (accounting firm, 2004-2012).
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2005-present). Previously, Mr. Hogan served as Assistant Treasurer of certain Fidelity® funds (2016-2018).
Pamela R. Holding (1964)
Year of Election or Appointment: 2018
Vice President
Ms. Holding also serves as Vice President of other funds. Ms. Holding serves as Executive Vice President of Fidelity SelectCo, LLC (2019-present), Co-Head of Equity (2018-present) and is an employee of Fidelity Investments (2013-present). Previously, Ms. Holding served as Chief Investment Officer of Fidelity Institutional Asset Management (2013-2018).
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight, serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. Ms. Smith serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), is an employee of Fidelity Investments (2009-present), and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Assistant Treasurer (2013-2018) and Deputy Treasurer (2013-2016) of certain Fidelity® funds.
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
Jim Wegmann (1979)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Wegmann also serves as Assistant Treasurer of other funds. Mr. Wegmann is an employee of Fidelity Investments (2011-present).
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs and (2) ongoing costs, including 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 (February 1, 2019 to July 31, 2019).
Actual Expenses
The first line of the accompanying table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. 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.
| Annualized Expense Ratio-A | Beginning Account Value February 1, 2019 | Ending Account Value July 31, 2019 | Expenses Paid During Period-B February 1, 2019 to July 31, 2019 | |
| Series Small Cap Opportunities | -%-C | |||
| Actual | $1,000.00 | $1,100.30 | $--D | |
| Hypothetical-E | $1,000.00 | $1,024.79 | $--D |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
C Amount represents less than .005%.
D Amount represents less than $.005.
E 5% return per year before expenses
Distributions (Unaudited)
The Board of Trustees of Fidelity Series Small Cap Opportunities Fund voted to pay on September 16, 2019, to shareholders of record at the opening of business on September 13, 2019, a distribution of $0.771 per share derived from capital gains realized from sales of portfolio securities and a dividend of $0.085 per share from net investment income.
The fund hereby designates as a capital gain dividend with respect to the taxable year ended July 31, 2019 $433,678,075, or, if subsequently determined to be different, the net capital gain of such year.
The fund designates 14% and 37% of the dividends distributed in September and December, respectively during the fiscal year as qualifying for the dividends–received deduction for corporate shareholders.
The fund designates 16% and 37% of the dividends distributed in September and December, respectively during the fiscal year as amounts which may be taken into account as a dividend for the purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code.
The fund will notify shareholders in January 2020 of amounts for use in preparing 2019 income tax returns.
SMO-ANN-0919
1.839807.112
Fidelity® Series Real Estate Income Fund Annual Report July 31, 2019 |
|
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of a fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a financial advisor, broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from a fund electronically, by contacting your financial intermediary. For Fidelity customers, visit Fidelity's web site or call Fidelity using the contact information listed below.
You may elect to receive all future reports in paper free of charge. If you wish to continue receiving paper copies of your shareholder reports, you may contact your financial intermediary or, if you are a Fidelity customer, visit Fidelity’s website, or call Fidelity at the applicable toll-free number listed below. Your election to receive reports in paper will apply to all funds held with the fund complex/your financial intermediary.
| Account Type | Website | Phone Number |
| Brokerage, Mutual Fund, or Annuity Contracts: | fidelity.com/mailpreferences | 1-800-343-3548 |
| Employer Provided Retirement Accounts: | netbenefits.fidelity.com/preferences (choose 'no' under Required Disclosures to continue to print) | 1-800-343-0860 |
| Advisor Sold Accounts Serviced Through Your Financial Intermediary: | Contact Your Financial Intermediary | Your Financial Intermediary's phone number |
| Advisor Sold Accounts Serviced by Fidelity: | institutional.fidelity.com | 1-877-208-0098 |
Contents
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2019 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT. Forms N-PORT are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-PORT 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.institutional.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.
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
| For the periods ended July 31, 2019 | Past 1 year | Past 5 years | Life of fundA |
| Fidelity® Series Real Estate Income Fund | 9.91% | 6.60% | 8.52% |
A From October 20, 2011
$10,000 Over Life of Fund
Let's say hypothetically that $10,000 was invested in Fidelity® Series Real Estate Income Fund on October 20, 2011, when the fund started.
The chart shows how the value of your investment would have changed, and also shows how the S&P 500® Index performed over the same period.
| Period Ending Values | ||
| $18,896 | Fidelity® Series Real Estate Income Fund | |
| $28,858 | S&P 500® Index | |
Management's Discussion of Fund Performance
Market Recap: Investors in real estate securities experienced significant market volatility for the 12-month period ending July 31, 2019. In the fourth quarter of 2018, and especially in December, real estate investment trust (REIT) common stocks fell sharply before regaining their lost ground and more in January 2019. REIT stocks continued their strong performance in the period's second half, as falling interest rates generally made these higher-dividend securities more attractive to yield-seeking investors. For the full period, REIT common stocks, as measured by the FTSE® NAREIT® All REITs Index, gained 13.55%. Health care, industrial and residential REITs were particularly strong performers, while retail-property owning REITs continued to struggle given retailers' ongoing business challenges. Meanwhile, real estate preferred stocks, as measured by the MSCI REIT Preferred Index, gained 7.04%. Real estate bonds, captured by the ICE BofAML® US Real Estate Index – a market-capitalization-weighted measure of investment grade corporate debt in the domestic real estate sector – gained 10.72%, benefiting from the steep drop in rates. Throughout the period, the fundamental backdrop for commercial real estate securities remained moderately favorable, with stable occupancy rates and gently rising cash flows at the individual property level, even if a modest increase in supply in certain markets and regions slowed the pace of cash-flow growth.Comments from Co-Portfolio Manager Mark Snyderman: For the fiscal year, the fund gained 9.91%, roughly in line with the 9.67% advance of the Fidelity Series Real Estate Income Composite Index℠. The Composite index is a 40/50/10 blend of the MSCI REIT Preferred Index, the ICE BofAML® U.S. Real Estate Index and FTSE® NAREIT® All REITs Index. We were happy with the fund's result in absolute terms the past 12 months, as we met our objective of generating an annualized return in mid-to-upper-single digits. We did particularly well with our real estate common stock holdings (+18%). The fund's REIT preferred stock investments gained 9%. On the fixed-income side, our securities generated a high return in absolute terms. Given our philosophy of limiting interest rate exposure, however, we were not surprised to see them lag in an environment of sharply falling interest rates and rallying bond values. For the 12 months, our commercial mortgage-backed securities (CMBS) portfolio gained 9%, while our high-yield real estate bond portfolio rose about 8% and our investment-grade bond portfolio advanced about 9%.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Note to Shareholders: On March 1, 2019, William Maclay assumed co-management responsibilities for the fund, joining Co-Manager Mark Snyderman.Investment Summary (Unaudited)
Top Five Stocks as of July 31, 2019
| % of fund's net assets | |
| Equity Lifestyle Properties, Inc. | 1.3 |
| American Tower Corp. | 1.3 |
| Apartment Investment & Management Co. Class A | 1.2 |
| Ventas, Inc. | 1.2 |
| Invesco Mortgage Capital, Inc. 7.50% | 1.0 |
| 6.0 |
Top 5 Bonds as of July 31, 2019
| % of fund's net assets | |
| Senior Housing Properties Trust 4.75% 5/1/24 | 1.3 |
| RWT Holdings, Inc. 5.625% 11/15/19 | 1.1 |
| Kennedy-Wilson, Inc. 5.875% 4/1/24 | 1.0 |
| Howard Hughes Corp. 5.375% 3/15/25 | 0.8 |
| PennyMac Corp. 5.375% 5/1/20 | 0.7 |
| 4.9 |
Top Five REIT Sectors as of July 31, 2019
| % of fund's net assets | |
| REITs - Mortgage | 19.2 |
| REITs - Diversified | 7.6 |
| REITs - Health Care | 6.7 |
| REITs - Apartments | 4.5 |
| REITs - Management/Investment | 2.9 |
Asset Allocation (% of fund's net assets)
| As of July 31, 2019* | ||
| Common Stocks | 14.6% | |
| Preferred Stocks | 22.3% | |
| Bonds | 44.4% | |
| Convertible Securities | 8.5% | |
| Other Investments | 5.3% | |
| Short-Term Investments and Net Other Assets (Liabilities) | 4.9% | |
* Foreign investments - 1.9%
Schedule of Investments July 31, 2019
Showing Percentage of Net Assets
| Common Stocks - 14.6% | |||
| Shares | Value | ||
| CONSUMER DISCRETIONARY - 0.1% | |||
| Hotels, Restaurants & Leisure - 0.1% | |||
| Wyndham Destinations, Inc. | 22,700 | $1,068,262 | |
| FINANCIALS - 2.6% | |||
| Insurance - 0.1% | |||
| FNF Group | 16,600 | 711,808 | |
| Mortgage Real Estate Investment Trusts - 2.5% | |||
| Anworth Mortgage Asset Corp. | 35,512 | 136,721 | |
| Chimera Investment Corp. | 108,200 | 2,086,096 | |
| Dynex Capital, Inc. | 132,615 | 2,161,625 | |
| Ellington Financial LLC | 135,600 | 2,370,288 | |
| Ellington Residential Mortgage REIT | 39,900 | 453,264 | |
| Great Ajax Corp. | 199,926 | 2,780,971 | |
| Hunt Companies Finance Trust, Inc. | 17,008 | 57,317 | |
| MFA Financial, Inc. | 1,051,900 | 7,552,642 | |
| New Residential Investment Corp. | 307,200 | 4,819,968 | |
| Redwood Trust, Inc. | 105,500 | 1,785,060 | |
| Two Harbors Investment Corp. | 12,300 | 165,558 | |
| 24,369,510 | |||
| TOTAL FINANCIALS | 25,081,318 | ||
| REAL ESTATE - 11.9% | |||
| Equity Real Estate Investment Trusts (REITs) - 11.7% | |||
| Acadia Realty Trust (SBI) | 277,886 | 7,800,260 | |
| American Tower Corp. | 57,600 | 12,189,312 | |
| Apartment Investment & Management Co. Class A | 240,202 | 11,899,607 | |
| AvalonBay Communities, Inc. | 14,800 | 3,090,092 | |
| Brixmor Property Group, Inc. | 11,500 | 218,270 | |
| Cedar Realty Trust, Inc. | 32,200 | 89,516 | |
| Colony Capital, Inc. | 588,299 | 3,323,889 | |
| CoreSite Realty Corp. | 6,300 | 660,303 | |
| Crown Castle International Corp. | 49,800 | 6,636,348 | |
| DDR Corp. | 161,300 | 2,298,525 | |
| Equinix, Inc. | 9,600 | 4,820,160 | |
| Equity Lifestyle Properties, Inc. | 99,200 | 12,325,583 | |
| Equity Residential (SBI) | 43,600 | 3,439,604 | |
| Healthcare Realty Trust, Inc. | 32,400 | 1,036,152 | |
| Healthcare Trust of America, Inc. | 98,950 | 2,664,724 | |
| iStar Financial, Inc. (a) | 153,300 | 2,023,560 | |
| Lexington Corporate Properties Trust | 334,422 | 3,300,745 | |
| Mid-America Apartment Communities, Inc. | 61,714 | 7,272,378 | |
| Monmouth Real Estate Investment Corp. Class A | 97,000 | 1,337,630 | |
| NexPoint Residential Trust, Inc. | 4,800 | 207,168 | |
| Omega Healthcare Investors, Inc. | 23,800 | 863,940 | |
| Outfront Media, Inc. | 28,765 | 781,833 | |
| Sabra Health Care REIT, Inc. | 222,100 | 4,584,144 | |
| Safety Income and Growth, Inc. | 24,200 | 795,454 | |
| Senior Housing Properties Trust (SBI) | 257,600 | 2,112,320 | |
| Store Capital Corp. | 57,600 | 1,970,496 | |
| Terreno Realty Corp. | 27,280 | 1,332,901 | |
| UMH Properties, Inc. | 67,400 | 886,310 | |
| Ventas, Inc. | 170,528 | 11,474,829 | |
| VEREIT, Inc. | 105,300 | 960,336 | |
| Washington REIT (SBI) | 13,100 | 353,045 | |
| Weyerhaeuser Co. | 36,300 | 922,383 | |
| 113,671,817 | |||
| Real Estate Management & Development - 0.2% | |||
| Colony NorthStar Credit Real Estate, Inc. | 112,500 | 1,822,500 | |
| Retail Value, Inc. | 18,694 | 703,642 | |
| 2,526,142 | |||
| TOTAL REAL ESTATE | 116,197,959 | ||
| TOTAL COMMON STOCKS | |||
| (Cost $108,152,966) | 142,347,539 | ||
| Preferred Stocks - 24.7% | |||
| Convertible Preferred Stocks - 2.4% | |||
| FINANCIALS - 1.0% | |||
| Mortgage Real Estate Investment Trusts - 1.0% | |||
| Great Ajax Corp. 7.25% | 306,500 | 7,861,829 | |
| ZAIS Financial Corp. 7.00% | 68,900 | 1,886,909 | |
| 9,748,738 | |||
| REAL ESTATE - 1.4% | |||
| Equity Real Estate Investment Trusts (REITs) - 1.3% | |||
| Alexandria Real Estate Equities, Inc. Series D, 7.00% | 8,241 | 319,668 | |
| Braemar Hotels & Resorts, Inc. 5.50% | 17,783 | 332,542 | |
| iStar Financial, Inc. Series J, 4.50% | 44,700 | 2,392,944 | |
| Lexington Corporate Properties Trust Series C, 6.50% | 70,019 | 3,864,349 | |
| QTS Realty Trust, Inc. 6.50% | 8,000 | 902,720 | |
| RLJ Lodging Trust Series A, 1.95% | 38,600 | 1,026,760 | |
| Wheeler REIT, Inc. 8.75% | 208,000 | 3,311,422 | |
| 12,150,405 | |||
| Real Estate Management & Development - 0.1% | |||
| Landmark Infrastructure Partners LP 7.012% | 55,500 | 1,386,286 | |
| TOTAL REAL ESTATE | 13,536,691 | ||
| TOTAL CONVERTIBLE PREFERRED STOCKS | 23,285,429 | ||
| Nonconvertible Preferred Stocks - 22.3% | |||
| CONSUMER DISCRETIONARY - 0.0% | |||
| Textiles, Apparel & Luxury Goods - 0.0% | |||
| American Finance Trust, Inc. 7.50% | 7,700 | 196,350 | |
| ENERGY - 0.3% | |||
| Oil, Gas & Consumable Fuels - 0.3% | |||
| DCP Midstream Partners LP: | |||
| 7.95% | 7,609 | 190,301 | |
| Series B, 7.875% | 9,559 | 237,541 | |
| Enbridge, Inc. Series 1 4.00% | 46,500 | 948,600 | |
| Energy Transfer Partners LP 7.60% | 49,100 | 1,219,644 | |
| 2,596,086 | |||
| FINANCIALS - 11.2% | |||
| Mortgage Real Estate Investment Trusts - 11.2% | |||
| AG Mortgage Investment Trust, Inc.: | |||
| 8.00% | 137,584 | 3,676,244 | |
| 8.25% | 1,300 | 33,800 | |
| AGNC Investment Corp.: | |||
| 6.875% | 102,000 | 2,606,100 | |
| Series B, 7.75% | 29,100 | 742,050 | |
| Series C, 7.00% | 61,500 | 1,589,775 | |
| Annaly Capital Management, Inc.: | |||
| 6.75% (b) | 90,000 | 2,309,400 | |
| Series D, 7.50% | 81,400 | 2,091,980 | |
| Series F, 6.95% | 206,600 | 5,315,818 | |
| Series G, 6.50% | 118,900 | 2,954,665 | |
| Anworth Mortgage Asset Corp. Series A, 8.625% | 108,738 | 2,822,110 | |
| Arbor Realty Trust, Inc.: | |||
| Series A, 8.25% | 41,922 | 1,104,645 | |
| Series B, 7.75% | 40,000 | 1,032,408 | |
| Series C, 8.50% | 15,000 | 396,317 | |
| Arlington Asset Investment Corp.: | |||
| 6.625% | 31,528 | 770,544 | |
| 8.25% | 20,500 | 476,420 | |
| Armour Residential REIT, Inc. Series B, 7.875% | 25,701 | 644,838 | |
| Capstead Mortgage Corp. Series E, 7.50% | 51,316 | 1,304,453 | |
| Cherry Hill Mortgage Investment Corp.: | |||
| 8.25% | 33,800 | 866,970 | |
| Series A, 8.20% | 61,500 | 1,583,625 | |
| Chimera Investment Corp.: | |||
| 8.00% | 103,500 | 2,685,825 | |
| Series A, 8.00% | 36,200 | 955,680 | |
| Series B, 8.00% | 328,858 | 8,662,120 | |
| Series C, 7.75% | 180,098 | 4,583,494 | |
| Dynex Capital, Inc.: | |||
| Series A, 8.50% | 96,313 | 2,462,232 | |
| Series B, 7.625% | 47,335 | 1,182,902 | |
| Exantas Capital Corp. 8.625% | 13,518 | 352,045 | |
| Invesco Mortgage Capital, Inc.: | |||
| 7.50% | 381,256 | 9,916,469 | |
| Series A, 7.75% | 30,151 | 785,132 | |
| Series B, 7.75% | 226,916 | 6,113,117 | |
| MFA Financial, Inc.: | |||
| 8.00% | 108,747 | 2,833,947 | |
| Series B, 7.50% | 188,749 | 4,758,362 | |
| New Residential Investment Corp. Series A 7.50% (b) | 63,400 | 1,680,734 | |
| New York Mortgage Trust, Inc.: | |||
| Series B, 7.75% | 78,802 | 1,962,170 | |
| Series C, 7.875% | 117,633 | 2,922,004 | |
| Series D, 8.00% | 74,400 | 1,836,936 | |
| PennyMac Mortgage Investment Trust: | |||
| 8.125% | 71,400 | 1,909,950 | |
| Series B, 8.00% | 115,387 | 3,060,063 | |
| Two Harbors Investment Corp.: | |||
| 7.50% | 113,333 | 2,888,972 | |
| 7.75% | 10,314 | 261,872 | |
| Series A, 8.125% | 104,500 | 2,819,410 | |
| Series B, 7.625% | 220,055 | 5,756,639 | |
| Series C, 7.25% | 128,445 | 3,240,667 | |
| Wells Fargo Real Estate Investment Corp. Series A, 6.375% | 23,000 | 586,040 | |
| ZAIS Financial Corp. Series C 6.20% | 80,000 | 2,040,800 | |
| 108,579,744 | |||
| REAL ESTATE - 10.7% | |||
| Equity Real Estate Investment Trusts (REITs) - 10.7% | |||
| American Homes 4 Rent: | |||
| 6.25% | 17,800 | 486,029 | |
| Series D, 6.50% | 40,000 | 1,101,200 | |
| Series E, 6.35% | 47,200 | 1,307,440 | |
| Series F, 5.875% | 44,883 | 1,213,187 | |
| Series G, 5.875% | 34,800 | 930,552 | |
| Armada Hoffler Properties, Inc. 6.75% (b) | 24,000 | 638,400 | |
| Ashford Hospitality Trust, Inc.: | |||
| Series D, 8.45% | 38,561 | 884,589 | |
| Series F, 7.375% | 90,100 | 1,766,861 | |
| Series G, 7.375% | 25,579 | 494,186 | |
| Series H, 7.50% | 33,400 | 667,302 | |
| Series I, 7.50% | 55,811 | 1,132,405 | |
| Bluerock Residential Growth (REIT), Inc.: | |||
| Series A, 8.25% | 102,400 | 2,729,984 | |
| Series C, 7.625% | 41,300 | 1,075,968 | |
| Series D, 7.125% | 30,000 | 761,997 | |
| Braemar Hotels & Resorts, Inc. Series D, 8.25% | 33,200 | 851,746 | |
| Brookfield Property REIT, Inc. 6.375% | 767 | 19,328 | |
| Cedar Realty Trust, Inc.: | |||
| Series B, 7.25% | 38,806 | 975,971 | |
| Series C, 6.50% | 50,200 | 1,122,221 | |
| City Office REIT, Inc. Series A, 6.625% | 25,500 | 675,750 | |
| Colony Capital, Inc.: | |||
| Series B, 8.25% | 42,790 | 1,096,280 | |
| Series E, 8.75% | 95,816 | 2,467,262 | |
| Series G, 7.50% | 73,826 | 1,749,056 | |
| Series H, 7.125% | 178,912 | 4,177,685 | |
| Series I, 7.15% | 196,135 | 4,632,709 | |
| Series J, 7.15% | 263,637 | 6,200,742 | |
| DDR Corp.: | |||
| Series J, 6.50% | 70,181 | 1,788,212 | |
| Series K, 6.25% | 25,489 | 665,008 | |
| Digital Realty Trust, Inc.: | |||
| Series C, 6.625% | 16,000 | 426,080 | |
| Series G, 5.875% | 28,270 | 720,885 | |
| Farmland Partners, Inc. Series B, 6.00% | 110,000 | 2,634,511 | |
| Gladstone Commercial Corp. Series D, 7.00% | 101,200 | 2,579,659 | |
| Gladstone Land Corp. Series A, 6.375% | 11,000 | 282,700 | |
| Global Medical REIT, Inc. Series A, 7.50% | 25,761 | 666,208 | |
| Global Net Lease, Inc. Series A, 7.25% | 123,600 | 3,156,744 | |
| Government Properties Income Trust 5.875% | 37,500 | 979,500 | |
| Hersha Hospitality Trust Series D, 6.50% | 40,000 | 992,800 | |
| Investors Real Estate Trust Series C, 6.625% | 54,100 | 1,391,993 | |
| iStar Financial, Inc.: | |||
| Series D, 8.00% | 62,442 | 1,637,791 | |
| Series G, 7.65% | 97,500 | 2,484,593 | |
| Series I, 7.50% | 26,900 | 699,400 | |
| Jernigan Capital, Inc. Series B, 7.00% | 49,292 | 1,284,057 | |
| Kimco Realty Corp. Series M, 5.25% | 22,400 | 561,098 | |
| Monmouth Real Estate Investment Corp. Series C, 6.125% | 79,780 | 1,985,820 | |
| National Retail Properties, Inc. Series E, 5.70% | 46,124 | 1,171,550 | |
| National Storage Affiliates Trust Series A, 6.00% | 11,300 | 296,625 | |
| Pebblebrook Hotel Trust: | |||
| 6.30% | 40,000 | 1,003,200 | |
| 6.375% | 47,339 | 1,189,629 | |
| Series C, 6.50% | 71,130 | 1,840,133 | |
| Series D, 6.375% | 50,000 | 1,339,500 | |
| Pennsylvania (REIT): | |||
| Series B, 7.375% | 55,408 | 1,216,206 | |
| Series C, 7.20% | 9,000 | 196,200 | |
| Series D, 6.875% | 25,700 | 548,181 | |
| Plymouth Industrial REIT, Inc. Series A, 7.50% | 28,400 | 728,173 | |
| Prologis, Inc. Series Q, 8.54% | 15,800 | 1,102,366 | |
| PS Business Parks, Inc. Series U, 5.75% | 102,483 | 2,643,549 | |
| Public Storage Series F, 5.15% | 28,000 | 724,640 | |
| QTS Realty Trust, Inc. Series A, 7.125% | 32,500 | 857,522 | |
| RAIT Financial Trust 7.625% | 46,080 | 714,701 | |
| Rexford Industrial Realty, Inc.: | |||
| Series A, 5.875% | 25,000 | 645,000 | |
| Series B, 5.875% | 49,100 | 1,261,870 | |
| Saul Centers, Inc.: | |||
| Series C, 6.875% | 40,477 | 1,070,617 | |
| Series D, 6.125% | 15,033 | 383,943 | |
| Sotherly Hotels, Inc.: | |||
| Series B, 8.00% | 12,000 | 303,000 | |
| Series C, 7.875% | 18,100 | 456,120 | |
| Spirit Realty Capital, Inc. Series A, 6.00% | 15,500 | 397,265 | |
| Stag Industrial, Inc. Series C, 6.875% | 17,000 | 462,570 | |
| Summit Hotel Properties, Inc.: | |||
| Series D, 6.45% | 40,000 | 1,044,800 | |
| Series E, 6.25% | 45,237 | 1,179,329 | |
| Sunstone Hotel Investors, Inc.: | |||
| Series E, 6.95% | 8,000 | 216,640 | |
| Series F, 6.45% | 16,000 | 424,000 | |
| Taubman Centers, Inc. Series K, 6.25% | 19,561 | 510,542 | |
| UMH Properties, Inc.: | |||
| Series B, 8.00% | 150,700 | 3,986,769 | |
| Series C, 6.75% | 73,820 | 1,901,603 | |
| Series D, 6.375% | 19,700 | 492,500 | |
| Urstadt Biddle Properties, Inc.: | |||
| Series G, 6.75% | 33,500 | 860,947 | |
| Series H, 6.25% | 48,000 | 1,306,560 | |
| VEREIT, Inc. Series F, 6.70% | 230,722 | 5,922,634 | |
| Washington Prime Group, Inc.: | |||
| Series H, 7.50% | 53,575 | 1,098,245 | |
| Series I, 6.875% | 10,483 | 197,066 | |
| 103,790,104 | |||
| Real Estate Management & Development - 0.0% | |||
| Brookfield Property Partners LP 6.50% | 5,500 | 141,075 | |
| Landmark Infrastructure Partners LP Series B, 7.90% | 20,800 | 522,394 | |
| 663,469 | |||
| TOTAL REAL ESTATE | 104,453,573 | ||
| UTILITIES - 0.1% | |||
| Multi-Utilities - 0.1% | |||
| Brookfield Infrastructure Partners LP Series 5, 5.35% | 33,700 | 644,738 | |
| TOTAL NONCONVERTIBLE PREFERRED STOCKS | 216,470,491 | ||
| TOTAL PREFERRED STOCKS | |||
| (Cost $231,965,718) | 239,755,920 | ||
| Principal Amount | Value | ||
| Corporate Bonds - 25.6% | |||
| Convertible Bonds - 6.1% | |||
| FINANCIALS - 5.8% | |||
| Diversified Financial Services - 0.4% | |||
| Granite Point Mortgage Trust, Inc.: | |||
| 5.625% 12/1/22 (c) | 2,620,000 | 2,688,840 | |
| 6.375% 10/1/23 | 1,787,000 | 1,836,184 | |
| 4,525,024 | |||
| Mortgage Real Estate Investment Trusts - 5.4% | |||
| Apollo Commercial Real Estate Finance, Inc. 5.375% 10/15/23 | 300,000 | 302,670 | |
| Arbor Realty Trust, Inc. 5.25% 7/1/21 (c) | 520,000 | 538,865 | |
| Blackstone Mortgage Trust, Inc. 4.75% 3/15/23 | 1,600,000 | 1,662,524 | |
| Colony Financial, Inc.: | |||
| 3.875% 1/15/21 | 5,220,000 | 5,128,634 | |
| 5% 4/15/23 | 3,395,000 | 3,284,595 | |
| Exantas Capital Corp. 8% 1/15/20 | 1,810,000 | 1,875,703 | |
| KKR Real Estate Finance Trust, Inc. 6.125% 5/15/23 | 1,400,000 | 1,450,958 | |
| MFA Financial, Inc. 6.25% 6/15/24 | 2,660,000 | 2,708,722 | |
| PennyMac Corp. 5.375% 5/1/20 | 6,884,000 | 6,936,259 | |
| Redwood Trust, Inc.: | |||
| 4.75% 8/15/23 | 1,673,000 | 1,667,641 | |
| 5.625% 7/15/24 | 6,803,000 | 6,871,030 | |
| RWT Holdings, Inc. 5.625% 11/15/19 | 10,724,000 | 10,777,883 | |
| Starwood Property Trust, Inc. 4.375% 4/1/23 | 2,680,000 | 2,725,783 | |
| Two Harbors Investment Corp. 6.25% 1/15/22 | 780,000 | 792,651 | |
| Western Asset Mortgage Capital Corp. 6.75% 10/1/22 | 5,835,000 | 5,821,398 | |
| 52,545,316 | |||
| TOTAL FINANCIALS | 57,070,340 | ||
| REAL ESTATE - 0.3% | |||
| Equity Real Estate Investment Trusts (REITs) - 0.3% | |||
| American Realty Capital Properties, Inc. 3.75% 12/15/20 | 2,660,000 | 2,699,522 | |
| TOTAL CONVERTIBLE BONDS | 59,769,862 | ||
| Nonconvertible Bonds - 19.5% | |||
| COMMUNICATION SERVICES - 0.0% | |||
| Media - 0.0% | |||
| CBS Outdoor Americas Capital LLC/CBS Outdoor Americas Capital Corp. 5.625% 2/15/24 | 240,000 | 246,600 | |
| CONSUMER DISCRETIONARY - 5.6% | |||
| Hotels, Restaurants & Leisure - 0.8% | |||
| ESH Hospitality, Inc. 5.25% 5/1/25 (c) | 3,460,000 | 3,559,475 | |
| FelCor Lodging LP 6% 6/1/25 | 1,260,000 | 1,319,850 | |
| Hilton Grand Vacations Borrower LLC/Hilton Grand Vacations Borrower, Inc. 6.125% 12/1/24 | 460,000 | 493,350 | |
| Times Square Hotel Trust 8.528% 8/1/26 (c) | 1,834,554 | 2,142,281 | |
| 7,514,956 | |||
| Household Durables - 4.8% | |||
| Ashton Woods U.S.A. LLC/Ashton Woods Finance Co.: | |||
| 6.75% 8/1/25 (c) | 4,055,000 | 3,943,488 | |
| 9.875% 4/1/27 (c) | 3,540,000 | 3,752,400 | |
| Beazer Homes U.S.A., Inc.: | |||
| 5.875% 10/15/27 | 1,720,000 | 1,573,800 | |
| 6.75% 3/15/25 | 1,535,000 | 1,519,650 | |
| Brookfield Residential Properties, Inc./Brookfield Residential U.S. Corp. 6.125% 7/1/22 (c) | 1,060,000 | 1,070,727 | |
| Brookfield Residential Properties, Inc.: | |||
| 6.375% 5/15/25 (c) | 2,000,000 | 2,025,000 | |
| 6.5% 12/15/20 (c) | 2,425,000 | 2,425,000 | |
| Century Communities, Inc.: | |||
| 5.875% 7/15/25 | 1,450,000 | 1,457,250 | |
| 6.75% 6/1/27 (c) | 1,620,000 | 1,672,650 | |
| KB Home 8% 3/15/20 | 2,395,000 | 2,460,863 | |
| LGI Homes, Inc. 6.875% 7/15/26 (c) | 3,324,000 | 3,382,170 | |
| M/I Homes, Inc.: | |||
| 5.625% 8/1/25 | 1,395,000 | 1,415,925 | |
| 6.75% 1/15/21 | 735,000 | 740,513 | |
| Meritage Homes Corp.: | |||
| 5.125% 6/6/27 | 885,000 | 918,188 | |
| 6% 6/1/25 | 3,085,000 | 3,354,938 | |
| 7% 4/1/22 | 2,005,000 | 2,190,463 | |
| 7.15% 4/15/20 | 1,940,000 | 1,988,500 | |
| New Home Co. LLC 7.25% 4/1/22 | 2,515,000 | 2,401,825 | |
| Taylor Morrison Communities, Inc./Monarch Communities, Inc. 5.875% 4/15/23 (c) | 760,000 | 798,000 | |
| TRI Pointe Homes, Inc.: | |||
| 5.25% 6/1/27 | 2,230,000 | 2,196,550 | |
| 5.875% 6/15/24 | 1,090,000 | 1,136,325 | |
| William Lyon Homes, Inc.: | |||
| 5.875% 1/31/25 | 1,915,000 | 1,915,000 | |
| 6.625% 7/15/27 (c) | 1,330,000 | 1,323,350 | |
| 7% 8/15/22 | 1,245,000 | 1,246,868 | |
| 46,909,443 | |||
| TOTAL CONSUMER DISCRETIONARY | 54,424,399 | ||
| CONSUMER STAPLES - 0.3% | |||
| Food & Staples Retailing - 0.3% | |||
| C&S Group Enterprises LLC 5.375% 7/15/22 (c) | 2,280,000 | 2,280,000 | |
| Cumberland Farms, Inc. 6.75% 5/1/25 (c) | 365,000 | 386,900 | |
| 2,666,900 | |||
| ENERGY - 0.2% | |||
| Oil, Gas & Consumable Fuels - 0.2% | |||
| Global Partners LP/GLP Finance Corp. 7% 8/1/27 (c) | 2,000,000 | 2,005,000 | |
| FINANCIALS - 0.9% | |||
| Banks - 0.1% | |||
| HAT Holdings I LLC/HAT Holdings II LLC 5.25% 7/15/24 (c) | 660,000 | 688,050 | |
| Capital Markets - 0.1% | |||
| CyrusOne LP/CyrusOne Finance Corp. 5% 3/15/24 | 615,000 | 632,251 | |
| Diversified Financial Services - 0.6% | |||
| Brixmor Operating Partnership LP 3.85% 2/1/25 | 1,659,000 | 1,714,261 | |
| Five Point Operation Co. LP 7.875% 11/15/25 (c) | 3,485,000 | 3,485,070 | |
| Icahn Enterprises LP/Icahn Enterprises Finance Corp.: | |||
| 5.875% 2/1/22 | 820,000 | 828,200 | |
| 6.25% 2/1/22 | 280,000 | 287,734 | |
| 6,315,265 | |||
| Mortgage Real Estate Investment Trusts - 0.1% | |||
| Starwood Property Trust, Inc. 4.75% 3/15/25 | 700,000 | 710,360 | |
| TOTAL FINANCIALS | 8,345,926 | ||
| HEALTH CARE - 0.5% | |||
| Health Care Providers & Services - 0.5% | |||
| Sabra Health Care LP/Sabra Capital Corp.: | |||
| 4.8% 6/1/24 | 1,182,000 | 1,218,524 | |
| 5.375% 6/1/23 | 4,040,000 | 4,099,873 | |
| 5,318,397 | |||
| INDUSTRIALS - 0.2% | |||
| Building Products - 0.2% | |||
| Shea Homes Ltd. Partnership/Corp. 6.125% 4/1/25 (c) | 1,390,000 | 1,442,125 | |
| REAL ESTATE - 11.8% | |||
| Equity Real Estate Investment Trusts (REITs) - 7.8% | |||
| American Homes 4 Rent: | |||
| 4.25% 2/15/28 | 2,000,000 | 2,092,847 | |
| 4.9% 2/15/29 | 500,000 | 549,571 | |
| ARC Properties Operating Partnership LP 4.6% 2/6/24 | 1,640,000 | 1,747,920 | |
| Care Capital Properties LP 5.125% 8/15/26 | 6,386,000 | 6,685,802 | |
| CBL & Associates LP: | |||
| 4.6% 10/15/24 | 5,401,000 | 3,672,680 | |
| 5.25% 12/1/23 | 3,500,000 | 2,555,000 | |
| 5.95% 12/15/26 | 2,434,000 | 1,721,568 | |
| CTR Partnership LP/CareTrust Capital Corp. 5.25% 6/1/25 | 1,343,000 | 1,390,005 | |
| DDR Corp.: | |||
| 3.625% 2/1/25 | 128,000 | 130,284 | |
| 4.625% 7/15/22 | 117,000 | 121,524 | |
| Equinix, Inc. 5.375% 5/15/27 | 1,175,000 | 1,261,304 | |
| HCP, Inc.: | |||
| 4% 6/1/25 | 2,000,000 | 2,109,800 | |
| 4.25% 11/15/23 | 556,000 | 590,365 | |
| Healthcare Realty Trust, Inc. 3.75% 4/15/23 | 967,000 | 992,332 | |
| Hospitality Properties Trust 5% 8/15/22 | 823,000 | 858,081 | |
| iStar Financial, Inc.: | |||
| 4.625% 9/15/20 | 1,140,000 | 1,151,400 | |
| 5.25% 9/15/22 | 715,000 | 726,562 | |
| 6% 4/1/22 | 1,490,000 | 1,527,250 | |
| Lexington Corporate Properties Trust: | |||
| 4.25% 6/15/23 | 2,500,000 | 2,543,087 | |
| 4.4% 6/15/24 | 385,000 | 394,759 | |
| MPT Operating Partnership LP/MPT Finance Corp.: | |||
| 4.625% 8/1/29 | 1,500,000 | 1,517,813 | |
| 5% 10/15/27 | 4,130,000 | 4,274,550 | |
| 5.25% 8/1/26 | 1,380,000 | 1,431,750 | |
| 6.375% 3/1/24 | 790,000 | 829,500 | |
| Omega Healthcare Investors, Inc.: | |||
| 4.375% 8/1/23 | 579,000 | 601,739 | |
| 4.5% 4/1/27 | 455,000 | 475,928 | |
| 4.75% 1/15/28 | 1,479,000 | 1,570,066 | |
| 4.95% 4/1/24 | 627,000 | 664,436 | |
| Regency Centers LP 3.6% 2/1/27 | 442,000 | 459,680 | |
| SBA Communications Corp. 4% 10/1/22 | 425,000 | 430,100 | |
| Select Income REIT: | |||
| 4.15% 2/1/22 | 1,992,000 | 2,021,116 | |
| 4.25% 5/15/24 | 890,000 | 899,838 | |
| 4.5% 2/1/25 | 3,457,000 | 3,539,663 | |
| Senior Housing Properties Trust: | |||
| 4.75% 5/1/24 | 11,978,000 | 12,251,386 | |
| 4.75% 2/15/28 | 4,000,000 | 3,924,521 | |
| 6.75% 4/15/20 | 576,000 | 580,190 | |
| 6.75% 12/15/21 | 2,000,000 | 2,129,166 | |
| VEREIT Operating Partnership LP 4.875% 6/1/26 | 2,055,000 | 2,251,119 | |
| WP Carey, Inc.: | |||
| 4% 2/1/25 | 344,000 | 355,748 | |
| 4.25% 10/1/26 | 905,000 | 949,908 | |
| 4.6% 4/1/24 | 1,968,000 | 2,097,090 | |
| 76,077,448 | |||
| Real Estate Management & Development - 4.0% | |||
| Forestar Group, Inc. 8% 4/15/24 (c) | 2,500,000 | 2,662,500 | |
| Greystar Real Estate Partners 5.75% 12/1/25 (c) | 2,255,000 | 2,305,738 | |
| Howard Hughes Corp. 5.375% 3/15/25 (c) | 7,465,000 | 7,651,625 | |
| Kennedy-Wilson, Inc. 5.875% 4/1/24 | 9,905,000 | 10,113,203 | |
| Mack-Cali Realty LP: | |||
| 3.15% 5/15/23 | 5,000 | 4,701 | |
| 4.5% 4/18/22 | 85,000 | 84,068 | |
| Mattamy Group Corp.: | |||
| 6.5% 10/1/25 (c) | 3,455,000 | 3,619,113 | |
| 6.875% 12/15/23 (c) | 2,420,000 | 2,510,750 | |
| Mid-America Apartments LP: | |||
| 3.75% 6/15/24 | 337,000 | 350,781 | |
| 4.3% 10/15/23 | 740,000 | 786,021 | |
| Taylor Morrison Communities, Inc./Monarch Communities, Inc.: | |||
| 5.625% 3/1/24 (c) | 1,345,000 | 1,402,163 | |
| 5.75% 1/15/28 (c)(d) | 1,500,000 | 1,552,500 | |
| 5.875% 6/15/27 (c) | 1,000,000 | 1,045,000 | |
| Washington Prime Group LP 5.95% 8/15/24 | 5,008,000 | 4,682,480 | |
| 38,770,643 | |||
| TOTAL REAL ESTATE | 114,848,091 | ||
| TOTAL NONCONVERTIBLE BONDS | 189,297,438 | ||
| TOTAL CORPORATE BONDS | |||
| (Cost $244,599,486) | 249,067,300 | ||
| Asset-Backed Securities - 2.9% | |||
| American Homes 4 Rent: | |||
| Series 2014-SFR3 Class E, 6.418% 12/17/36 (c) | 1,740,000 | 1,962,410 | |
| Series 2015-SFR1 Class E, 5.639% 4/17/52 (c) | 1,354,586 | 1,479,824 | |
| Series 2015-SFR2: | |||
| Class E, 6.07% 10/17/52 (c) | 1,624,000 | 1,823,518 | |
| Class XS, 0% 10/17/52 (c)(e)(f)(g) | 928,762 | 9 | |
| Conseco Finance Securitizations Corp.: | |||
| Series 2002-1 Class M2, 9.546% 12/1/33 | 1,216,000 | 1,288,313 | |
| Series 2002-2 Class M2, 9.163% 3/1/33 | 1,715,493 | 1,561,848 | |
| Deutsche Financial Capital Securitization LLC Series 1997-I Class M, 7.275% 9/15/27 | 179,223 | 181,161 | |
| GPMT Ltd. Series 2019-FL2 Class D, 1 month U.S. LIBOR + 2.950% 5.275% 2/22/36 (c)(e)(h) | 358,000 | 361,469 | |
| Home Partners of America Credit Trust Series 2017-1 Class F, 1 month U.S. LIBOR + 3.539% 5.8531% 7/17/34 (c)(e)(h) | 1,099,000 | 1,100,537 | |
| Home Partners of America Trust: | |||
| Series 2016-2 Class F, 1 month U.S. LIBOR + 4.700% 7.0141% 10/17/33 (c)(e)(h) | 607,000 | 607,349 | |
| Series 2018-1 Class F, 1 month U.S. LIBOR + 2.350% 4.6641% 7/17/37 (c)(e)(h) | 604,000 | 603,996 | |
| Invitation Homes Trust Series 2018-SFR2 Class F, 1 month U.S. LIBOR + 2.250% 4.575% 6/17/37 (c)(e)(h) | 1,000,000 | 999,469 | |
| Lehman ABS Manufactured Housing Contract Trust Series 2001-B Class M2, 7.17% 4/15/40 | 2,460,041 | 1,788,217 | |
| Progress Residential Trust: | |||
| Series 2015-SFR3 Class F, 6.643% 11/12/32 (c) | 588,000 | 592,616 | |
| Series 2017-SFR1 Class F, 5.35% 8/17/34 (c) | 526,000 | 541,651 | |
| Series 2017-SFR2 Class F, 1 month U.S. LIBOR + 2.750% 4.836% 12/17/34 (c) | 783,000 | 795,452 | |
| Series 2018-SFR2 Class F, 4.953% 8/17/35 (c) | 598,000 | 612,499 | |
| Series 2018-SFR3 Class F, 5.368% 10/17/35 (c) | 588,000 | 611,002 | |
| Residential Asset Securities Corp. Series 2003-KS10 Class MI3, 5.5627% 12/25/33 (e) | 192,827 | 126,803 | |
| Starwood Waypoint Homes Trust Series 2017-1: | |||
| Class E, 1 month U.S. LIBOR + 2.600% 4.925% 1/17/35 (c)(e)(h) | 994,000 | 993,996 | |
| Class F, 1 month U.S. LIBOR + 3.400% 5.725% 1/17/35 (c)(e)(h) | 2,132,000 | 2,133,351 | |
| Tricon American Homes: | |||
| Series 2016-SFR1 Class F, 5.769% 11/17/33 (c) | 1,310,000 | 1,350,699 | |
| Series 2017-SFR1 Class F, 5.151% 9/17/34 (c) | 1,432,000 | 1,469,790 | |
| Series 2017-SFR2 Class F, 5.104% 1/17/36 (c) | 628,000 | 649,898 | |
| Series 2018-SFR1 Class F, 4.96% 5/17/37 (c) | 1,386,000 | 1,433,319 | |
| VB-S1 Issuer LLC: | |||
| Series 2016-1A Class F, 6.901% 6/15/46 (c) | 1,453,000 | 1,504,825 | |
| Series 2018-1A Class F, 5.25% 2/15/48 (c) | 2,044,000 | 2,021,128 | |
| TOTAL ASSET-BACKED SECURITIES | |||
| (Cost $27,834,481) | 28,595,149 | ||
| Collateralized Mortgage Obligations - 0.4% | |||
| Private Sponsor - 0.4% | |||
| FREMF Mortgage Trust: (Cost $3,390,987) | |||
| Series 2010-K6 Class B, 5.3604% 12/25/46 (c)(e) | 811,000 | 818,477 | |
| Series 2010-K7 Class B, 5.5007% 4/25/20 (c)(e) | 2,605,000 | 2,645,394 | |
| TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS | |||
| (Cost $3,390,987) | 3,463,871 | ||
| Commercial Mortgage Securities - 21.6% | |||
| BANK: | |||
| Series 2017-BNK4 Class D, 3.357% 5/15/50 (c) | 588,000 | 530,630 | |
| Series 2018-BN12 Class D, 3% 5/15/61 (c) | 299,000 | 263,564 | |
| Barclays Commercial Mortgage Securities LLC Series 2015-STP: | |||
| Class E, 4.2844% 9/10/28 (c)(e) | 1,626,000 | 1,603,671 | |
| Class F, 4.2844% 9/10/28 (c)(e) | 800,000 | 765,517 | |
| BX Commercial Mortgage Trust floater Series 2018-BIOA Class F, 1 month U.S. LIBOR + 2.471% 4.7961% 3/15/37 (c)(e)(h) | 2,000,000 | 2,010,001 | |
| BX Trust floater: | |||
| Series 2018-IND: | |||
| Class G, 1 month U.S. LIBOR + 2.050% 4.375% 11/15/35 (c)(e)(h) | 1,381,422 | 1,388,782 | |
| Class H, 1 month U.S. LIBOR + 3.000% 5.325% 11/15/35 (c)(e)(h) | 1,262,040 | 1,268,765 | |
| Series 2019-IMC Class G, 1 month U.S. LIBOR + 3.600% 5.925% 4/15/34 (c)(e)(h) | 819,000 | 825,158 | |
| CALI Mortgage Trust Series 2019-101C Class F, 4.3244% 3/10/39 (c)(e) | 651,000 | 665,058 | |
| CAMB Commercial Mortgage Trust floater Series 2019-LIFE Class G, 1 month U.S. LIBOR + 3.250% 5.575% 12/15/37 (c)(e)(h) | 1,021,000 | 1,033,778 | |
| CCRESG Commercial Mortgage Trust Series 2016-HEAT: | |||
| Class E, 5.4883% 4/10/29 (c)(e) | 806,000 | 814,975 | |
| Class F, 5.4883% 4/10/29 (c)(e) | 1,890,000 | 1,866,602 | |
| CD Mortgage Trust Series 2017-CD3 Class D, 3.25% 2/10/50 (c) | 2,188,000 | 1,982,757 | |
| CGBAM Commercial Mortgage Trust Series 2015-SMRT Class E, 3.7859% 4/10/28 (c)(e) | 561,000 | 563,597 | |
| CGMS Commercial Mortgage Trust Series 2017-MDRB Class E, 1 month U.S. LIBOR + 3.872% 6.1965% 7/15/30 (c)(e)(h) | 1,154,000 | 1,145,432 | |
| CHC Commercial Mortgage Trust floater Series 2019-CHC Class F, 1 month U.S. LIBOR + 2.608% 5.0082% 6/15/34 (c)(e)(h) | 1,000,000 | 993,303 | |
| Citigroup Commercial Mortgage Trust: | |||
| Series 2013-GC15 Class D, 5.2151% 9/10/46 (c)(e) | 2,496,000 | 2,620,038 | |
| Series 2015-SHP2 Class E, 1 month U.S. LIBOR + 4.350% 6.675% 7/15/27 (c)(e)(h) | 567,000 | 566,679 | |
| Series 2016-C3 Class D, 3% 11/15/49 (c) | 2,911,000 | 2,415,353 | |
| COMM Mortgage Trust: | |||
| floater Series 2018-HCLV: | |||
| Class F, 1 month U.S. LIBOR + 3.050% 5.375% 9/15/33 (c)(e)(h) | 735,000 | 735,853 | |
| Class G, 1 month U.S. LIBOR + 5.056% 7.3813% 9/15/33 (c)(e)(h) | 735,000 | 707,211 | |
| sequential payer Series 2013-LC6 Class E, 3.5% 1/10/46 (c) | 2,000,000 | 1,704,510 | |
| Series 2012-CR1: | |||
| Class C, 5.3203% 5/15/45 (e) | 3,000,000 | 3,134,085 | |
| Class D, 5.3203% 5/15/45 (c)(e) | 1,917,000 | 1,948,697 | |
| Class G, 2.462% 5/15/45 (c) | 1,133,000 | 913,124 | |
| Series 2012-LC4: | |||
| Class C, 5.5379% 12/10/44 (e) | 780,000 | 812,694 | |
| Class D, 5.5379% 12/10/44 (c)(e) | 2,371,000 | 2,069,675 | |
| Series 2013-CR10 Class D, 4.7893% 8/10/46 (c)(e) | 1,756,000 | 1,779,182 | |
| Series 2013-CR12 Class D, 5.0801% 10/10/46 (c)(e) | 2,900,000 | 2,510,987 | |
| Series 2013-LC6 Class D, 4.2621% 1/10/46 (c)(e) | 2,732,000 | 2,792,048 | |
| Series 2014-UBS2 Class D, 5.0023% 3/10/47 (c)(e) | 537,000 | 504,468 | |
| Series 2016-CD1 Class D, 2.7677% 8/10/49 (c)(e) | 2,104,000 | 1,863,679 | |
| Series 2017-CD4 Class D, 3.3% 5/10/50 (c) | 1,161,000 | 1,052,248 | |
| COMM Mortgage Trust pass-thru certificates Series 2005-LP5 Class F, 4.5166% 5/10/43 (c)(e) | 1,050,137 | 1,041,852 | |
| Commercial Mortgage Trust pass-thru certificates Series 2012-CR2: | |||
| Class D, 4.831% 8/15/45 (c)(e) | 836,000 | 850,604 | |
| Class F, 4.25% 8/15/45 (c) | 783,000 | 694,796 | |
| Core Industrial Trust: | |||
| Series 2015-TEXW Class F, 3.8487% 2/10/34 (c)(e) | 2,429,000 | 2,475,885 | |
| Series 2015-WEST Class F, 4.2268% 2/10/37 (c)(e) | 2,496,000 | 2,649,027 | |
| Credit Suisse Mortgage Trust floater: | |||
| Series 2019-ICE4 Class F, 1 month U.S. LIBOR + 2.650% 4.975% 5/15/36 (c)(e)(h) | 1,617,000 | 1,628,125 | |
| Series 2019-SKLZ Class D, 1 month U.S. LIBOR + 3.600% 5.925% 1/15/34 (c)(e)(h) | 1,342,000 | 1,354,584 | |
| CSAIL Commercial Mortgage Trust: | |||
| Series 2017-C8 Class D, 4.4701% 6/15/50 (c) | 1,717,000 | 1,645,507 | |
| Series 2017-CX10 Class UESD, 4.2366% 10/15/32 (c)(e) | 1,206,000 | 1,215,513 | |
| Series 2017-CX9 Class D, 4.1553% 9/15/50 (c)(e) | 432,000 | 412,083 | |
| DBCCRE Mortgage Trust Series 2014-ARCP: | |||
| Class D, 4.9345% 1/10/34 (c)(e) | 1,000,000 | 1,031,080 | |
| Class E, 4.9345% 1/10/34 (c)(e) | 2,047,000 | 2,060,801 | |
| DBUBS Mortgage Trust: | |||
| Series 2011-LC1A: | |||
| Class E, 5.6984% 11/10/46 (c)(e) | 2,745,000 | 2,842,169 | |
| Class G, 4.652% 11/10/46 (c) | 2,640,000 | 2,498,459 | |
| Series 2011-LC3A Class D, 5.3338% 8/10/44 (c)(e) | 728,000 | 753,504 | |
| Freddie Mac pass-thru certificates: | |||
| Series K011 Class X3, 2.5734% 12/25/43 (e)(f) | 4,947,000 | 167,928 | |
| Series K012 Class X3, 2.2522% 1/25/41 (e)(f) | 2,799,977 | 87,285 | |
| Series K013 Class X3, 2.8144% 1/25/43 (e)(f) | 4,806,000 | 190,820 | |
| GPMT Ltd. floater Series 2018-FL1 Class D, 1 month U.S. LIBOR + 2.950% 5.2479% 11/21/35 (c)(e)(h) | 1,500,000 | 1,511,250 | |
| GS Mortgage Securities Trust: | |||
| floater Series 2018-RIVR Class G, 1 month U.S. LIBOR + 2.600% 4.925% 7/15/35 (c)(e)(h) | 669,000 | 667,113 | |
| Series 2010-C2 Class D, 5.1804% 12/10/43 (c)(e) | 2,000,000 | 2,056,833 | |
| Series 2011-GC5: | |||
| Class D, 5.3902% 8/10/44 (c)(e) | 2,516,000 | 2,475,672 | |
| Class E, 5.3902% 8/10/44 (c)(e) | 756,000 | 685,287 | |
| Class F, 4.5% 8/10/44 (c) | 588,000 | 407,687 | |
| Series 2012-GC6: | |||
| Class C, 5.6514% 1/10/45 (c)(e) | 2,400,000 | 2,530,625 | |
| Class D, 5.6514% 1/10/45 (c)(e) | 1,816,000 | 1,858,773 | |
| Class E, 5% 1/10/45 (c)(e) | 2,805,000 | 2,581,826 | |
| Series 2012-GCJ7: | |||
| Class C, 5.686% 5/10/45 (e) | 3,500,000 | 3,679,825 | |
| Class D, 5.686% 5/10/45 (c)(e) | 3,425,000 | 3,407,575 | |
| Class E, 5% 5/10/45 (c) | 975,966 | 723,173 | |
| Series 2012-GCJ9: | |||
| Class D, 4.744% 11/10/45 (c)(e) | 1,507,000 | 1,535,579 | |
| Class E, 4.744% 11/10/45 (c)(e) | 333,000 | 315,389 | |
| Series 2013-GC14 Class D, 4.7486% 8/10/46 (c)(e) | 320,000 | 326,134 | |
| Series 2013-GC16: | |||
| Class D, 5.3106% 11/10/46 (c)(e) | 3,250,000 | 3,494,185 | |
| Class F, 3.5% 11/10/46 (c) | 1,428,000 | 1,130,025 | |
| Series 2016-GS2 Class D, 2.753% 5/10/49 (c) | 1,964,000 | 1,741,571 | |
| Series 2016-GS3 Class D, 2.62% 10/10/49 (c) | 602,000 | 528,888 | |
| Series 2016-REMZ Class MZB, 7.727% 2/10/21 (c) | 5,523,000 | 5,556,021 | |
| Series 2016-RENT: | |||
| Class E, 4.0667% 2/10/29 (c)(e) | 2,614,000 | 2,625,556 | |
| Class F, 4.0667% 2/10/29 (c)(e) | 3,803,000 | 3,794,320 | |
| Hilton U.S.A. Trust: | |||
| Series 2016-HHV Class F, 4.1935% 11/5/38 (c)(e) | 1,460,000 | 1,460,020 | |
| Series 2016-SFP Class F, 6.1552% 11/5/35 (c) | 4,443,000 | 4,493,169 | |
| IMT Trust Series 2017-APTS: | |||
| Class EFX, 3.4966% 6/15/34 (c)(e) | 1,589,000 | 1,569,440 | |
| Class FFL, 1 month U.S. LIBOR + 2.850% 5.175% 6/15/34 (c)(e)(h) | 664,000 | 665,666 | |
| Independence Plaza Trust Series 2018-INDP Class E, 4.996% 7/10/35 (c) | 504,000 | 529,662 | |
| Invitation Homes Trust floater: | |||
| Series 2018-SFR3 Class F, 1 month U.S. LIBOR + 2.250% 4.5641% 7/17/37 (c)(e)(h) | 1,491,000 | 1,490,198 | |
| Series 2018-SFR4 Class F, 1 month U.S. LIBOR + 2.200% 4.5141% 1/17/38 (c)(e)(h) | 590,000 | 588,305 | |
| JPMBB Commercial Mortgage Securities Trust: | |||
| Series 2014-C23 Class UH5, 4.7094% 9/15/47 (c) | 1,526,000 | 1,282,792 | |
| Series 2014-C26 Class D, 3.9083% 1/15/48 (c)(e) | 602,000 | 580,427 | |
| JPMCC Commercial Mortgage Securities Trust Series 2016-JP4 Class D, 3.4406% 12/15/49 (c)(e) | 1,809,000 | 1,622,629 | |
| JPMDB Commercial Mortgage Securities Trust: | |||
| Series 2016-C4 Class D, 3.092% 12/15/49 (c)(e) | 1,308,000 | 1,176,880 | |
| Series 2018-C8 Class D, 3.245% 6/15/51 (c)(e) | 302,000 | 272,500 | |
| JPMorgan Chase Commercial Mortgage Securities Corp. Series 2012-CBX: | |||
| Class C, 5.1317% 6/15/45 (e) | 1,240,000 | 1,287,463 | |
| Class E, 5.1317% 6/15/45 (c)(e) | 1,078,000 | 1,036,932 | |
| Class G 4% 6/15/45 (c) | 805,000 | 485,925 | |
| JPMorgan Chase Commercial Mortgage Securities Trust: | |||
| Series 2011-C3: | |||
| Class E, 5.6637% 2/15/46 (c)(e) | 3,311,000 | 3,172,423 | |
| Class G, 4.409% 2/15/46 (c)(e) | 1,680,000 | 1,452,312 | |
| Class H, 4.409% 2/15/46 (c)(e) | 1,320,000 | 1,093,801 | |
| Series 2011-C4 Class E, 5.5352% 7/15/46 (c)(e) | 1,390,000 | 1,448,560 | |
| Series 2013-LC11: | |||
| Class D, 4.168% 4/15/46 (e) | 1,229,000 | 1,096,227 | |
| Class F, 3.25% 4/15/46 (c)(e) | 482,000 | 199,804 | |
| Series 2014-DSTY Class E, 3.8046% 6/10/27 (c)(e) | 924,000 | 299,199 | |
| Series 2015-UES Class F, 3.621% 9/5/32 (c)(e) | 1,843,000 | 1,833,967 | |
| Series 2018-AON Class F, 4.6132% 7/5/31 (c)(e) | 904,000 | 892,304 | |
| Kref Ltd. floater Series 2018-FL1 Class D, 1 month U.S. LIBOR + 2.550% 4.8641% 6/15/36 (c)(e)(h) | 440,000 | 440,233 | |
| Merrill Lynch Mortgage Trust Series 2006-C1 Class AJ, 5.5946% 5/12/39 (e) | 364,291 | 366,825 | |
| Morgan Stanley BAML Trust: | |||
| Series 2012-C5 Class E, 4.6844% 8/15/45 (c)(e) | 670,000 | 690,002 | |
| Series 2012-C6 Class D, 4.6084% 11/15/45 (c)(e) | 2,000,000 | 2,068,898 | |
| Series 2013-C12 Class D, 4.7657% 10/15/46 (c)(e) | 1,500,000 | 1,536,481 | |
| Series 2013-C13: | |||
| Class D, 4.9079% 11/15/46 (c)(e) | 2,935,000 | 3,060,713 | |
| Class E, 4.9079% 11/15/46 (c)(e) | 621,000 | 574,760 | |
| Series 2013-C7: | |||
| Class D, 4.2393% 2/15/46 (c)(e) | 998,000 | 968,436 | |
| Class E, 4.2393% 2/15/46 (c)(e) | 1,490,000 | 1,290,242 | |
| Series 2013-C9 Class C, 4.0362% 5/15/46 (e) | 588,000 | 599,608 | |
| Series 2016-C30 Class D, 3% 9/15/49 (c) | 963,000 | 809,258 | |
| Series 2016-C31 Class D, 3% 11/15/49 (c)(e) | 1,500,000 | 1,227,898 | |
| Series 2016-C32 Class D, 3.396% 12/15/49 (c) | 1,071,000 | 918,902 | |
| Morgan Stanley Capital I Trust: | |||
| floater Series 2019-AGLN Class G, 1 month U.S. LIBOR + 3.150% 5.475% 3/15/34 (c)(e)(h) | 987,000 | 991,936 | |
| Series 1998-CF1 Class G, 7.0549% 7/15/32 (c)(e) | 239,479 | 209,983 | |
| Series 2011-C2: | |||
| Class D, 5.4847% 6/15/44 (c)(e) | 2,382,000 | 2,421,173 | |
| Class E, 5.4847% 6/15/44 (c)(e) | 2,396,000 | 2,364,339 | |
| Class F, 5.4847% 6/15/44 (c)(e) | 1,467,000 | 1,343,377 | |
| Class XB, 0.5352% 6/15/44 (c)(e)(f) | 44,940,773 | 258,890 | |
| Series 2011-C3: | |||
| Class E, 5.1107% 7/15/49 (c)(e) | 613,000 | 605,490 | |
| Class F, 5.1107% 7/15/49 (c)(e) | 572,000 | 548,428 | |
| Class G, 5.1107% 7/15/49 (c)(e) | 922,600 | 831,221 | |
| Series 2012-C4 Class D, 5.4196% 3/15/45 (c)(e) | 1,640,000 | 1,617,428 | |
| Series 2015-MS1 Class D, 4.0308% 5/15/48 (c)(e) | 1,922,000 | 1,821,771 | |
| Series 2015-UBS8 Class D, 3.18% 12/15/48 (c) | 987,000 | 876,572 | |
| Series 2016-BNK2 Class C, 3% 11/15/49 (c) | 2,312,000 | 2,084,200 | |
| Motel 6 Trust floater: | |||
| Series 2017-M6MZ, Class M, 1 month U.S. LIBOR + 6.927% 9.2515% 8/15/19 (c)(e)(h) | 1,174,056 | 1,183,920 | |
| Series 2017-MTL6, Class F, 1 month U.S. LIBOR + 4.250% 6.575% 8/15/34 (c)(e)(h) | 2,002,284 | 2,016,065 | |
| MSCCG Trust floater Series 2018-SELF Class E, 1 month U.S. LIBOR + 2.150% 4.475% 10/15/37 (c)(e)(h) | 882,000 | 885,308 | |
| MSCG Trust Series 2016-SNR: | |||
| Class D, 6.55% 11/15/34 (c) | 3,685,600 | 3,770,977 | |
| Class E, 6.8087% 11/15/34 (c) | 1,746,750 | 1,716,088 | |
| MSJP Commercial Securities Mortgage Trust Series 2015-HAUL Class E, 4.851% 9/5/47 (c)(e) | 1,000,000 | 1,025,579 | |
| Natixis Commercial Mortgage Securities Trust floater Series 2018-FL1: | |||
| Class WAN1, 1 month U.S. LIBOR + 2.750% 5.145% 6/15/35 (c)(e)(h) | 315,000 | 315,770 | |
| Class WAN2, 1 month U.S. LIBOR + 3.750% 6.145% 6/15/35 (c)(e)(h) | 113,725 | 113,147 | |
| Providence Place Group Ltd. Partnership Series 2000-C1 Class A2, 7.75% 7/20/28 (c) | 1,110,337 | 1,359,160 | |
| ReadyCap Commercial Mortgage Trust floater Series 2019-FL3 Class D, 1 month U.S. LIBOR + 2.900% 5.166% 3/25/34 (c)(e)(h) | 561,000 | 550,856 | |
| UBS Commercial Mortgage Trust Series 2012-C1: | |||
| Class D, 5.5432% 5/10/45 (c)(e) | 645,000 | 651,448 | |
| Class E, 5% 5/10/45 (c)(e) | 1,165,000 | 1,076,147 | |
| Class F, 5% 5/10/45 (c)(e) | 399,000 | 314,325 | |
| UBS-BAMLL Trust Series 12-WRM Class D, 4.238% 6/10/30 (c)(e) | 1,817,000 | 1,769,062 | |
| Wells Fargo Commercial Mortgage Trust: | |||
| Series 2012-LC5: | |||
| Class D, 4.7606% 10/15/45 (c)(e) | 492,000 | 507,659 | |
| Class E, 4.7606% 10/15/45 (c)(e) | 1,445,000 | 1,438,863 | |
| Class F, 4.7606% 10/15/45 (c)(e) | 774,000 | 717,205 | |
| Series 2016-BNK1 Class D, 3% 8/15/49 (c) | 1,260,000 | 1,055,098 | |
| Series 2016-C35 Class D, 3.142% 7/15/48 (c) | 3,317,000 | 2,784,642 | |
| Series 2016-NXS6 Class D, 3.059% 11/15/49 (c) | 906,000 | 796,218 | |
| Series 2017-C38 Class D, 3% 7/15/50 (c)(e) | 757,000 | 651,385 | |
| WF-RBS Commercial Mortgage Trust: | |||
| Series 2011-C3: | |||
| Class C, 5.335% 3/15/44 (c) | 2,100,000 | 2,166,954 | |
| Class D, 5.683% 3/15/44 (c)(e) | 1,000,000 | 852,223 | |
| Series 2011-C5: | |||
| Class C, 5.6691% 11/15/44 (c)(e) | 1,250,000 | 1,314,679 | |
| Class E, 5.6691% 11/15/44 (c)(e) | 693,000 | 709,546 | |
| Class F, 5.25% 11/15/44 (c)(e) | 2,000,000 | 1,863,459 | |
| Class G, 5.25% 11/15/44 (c)(e) | 1,000,000 | 886,949 | |
| Series 2012-C7 Class D, 4.8147% 6/15/45 (c)(e) | 620,000 | 600,006 | |
| Series 2012-C8 Class E, 4.89% 8/15/45 (c)(e) | 524,000 | 532,026 | |
| Series 2013-C16 Class D, 5.0262% 9/15/46 (c)(e) | 673,000 | 658,559 | |
| Series 2013-UBS1 Class D, 4.74% 3/15/46 (c)(e) | 859,000 | 868,959 | |
| WP Glimcher Mall Trust Series 2015-WPG: | |||
| Class PR1, 3.516% 6/5/35 (c)(e) | 1,168,000 | 990,178 | |
| Class PR2, 3.516% 6/5/35 (c)(e) | 459,000 | 371,694 | |
| TOTAL COMMERCIAL MORTGAGE SECURITIES | |||
| (Cost $196,776,488) | 210,157,273 | ||
| Bank Loan Obligations - 5.3% | |||
| COMMUNICATION SERVICES - 0.3% | |||
| Wireless Telecommunication Services - 0.3% | |||
| SBA Senior Finance II, LLC Tranche B, term loan 3 month U.S. LIBOR + 2.000% 4.24% 4/11/25 (e)(h) | 3,366,732 | 3,355,992 | |
| CONSUMER DISCRETIONARY - 0.7% | |||
| Hotels, Restaurants & Leisure - 0.6% | |||
| Caesars Resort Collection LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.750% 4.9844% 12/22/24 (e)(h) | 849,259 | 841,963 | |
| ESH Hospitality, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.000% 4.2344% 8/30/23 (e)(h) | 2,360,945 | 2,362,409 | |
| LTF Merger Sub, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.750% 5.2718% 6/10/22 (e)(h) | 732,878 | 732,065 | |
| Playa Resorts Holding BV Tranche B, term loan 3 month U.S. LIBOR + 2.750% 4.98% 4/27/24 (e)(h) | 1,563,597 | 1,501,835 | |
| Wyndham Destinations, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.250% 4.4844% 5/31/25 (e)(h) | 451,588 | 449,330 | |
| 5,887,602 | |||
| Multiline Retail - 0.1% | |||
| JC Penney Corp., Inc. Tranche B, term loan 3 month U.S. LIBOR + 4.250% 6.7706% 6/23/23 (e)(h) | 925,463 | 800,211 | |
| TOTAL CONSUMER DISCRETIONARY | 6,687,813 | ||
| CONSUMER STAPLES - 0.6% | |||
| Food & Staples Retailing - 0.6% | |||
| Albertson's LLC Tranche B, term loan: | |||
| 3 month U.S. LIBOR + 3.000% 5.2344% 6/22/23 (e)(h) | 3,082,791 | 3,086,953 | |
| 3 month U.S. LIBOR + 3.000% 5.3113% 12/21/22 (e)(h) | 3,060,562 | 3,065,765 | |
| 6,152,718 | |||
| ENERGY - 0.7% | |||
| Energy Equipment & Services - 0.2% | |||
| Kestrel Acquisition LLC Tranche B, term loan 3 month U.S. LIBOR + 4.250% 6.49% 6/1/25 (e)(h) | 1,485,000 | 1,453,444 | |
| Oil, Gas & Consumable Fuels - 0.5% | |||
| Moxie Patriot LLC Tranche B, term loan 3 month U.S. LIBOR + 5.750% 8.0799% 12/19/20 (e)(h) | 4,362,106 | 4,118,570 | |
| TPF II Power LLC Tranche B, term loan 3 month U.S. LIBOR + 3.750% 5.9844% 10/2/23 (e)(h) | 963,250 | 965,360 | |
| 5,083,930 | |||
| TOTAL ENERGY | 6,537,374 | ||
| FINANCIALS - 0.5% | |||
| Diversified Financial Services - 0.2% | |||
| Veritas-B Junior Mezz C LLC 10.48% 2/6/21 (e)(g) | 1,629,000 | 1,674,938 | |
| Mortgage Real Estate Investment Trusts - 0.1% | |||
| Apollo Commercial Real Estate Finance, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.750% 5.075% 5/7/26 (e)(h) | 540,000 | 537,975 | |
| Blackstone Mortgage Trust, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.500% 4.7411% 4/16/26 (e)(h) | 830,000 | 833,113 | |
| 1,371,088 | |||
| Real Estate Management & Development - 0.1% | |||
| MGM Growth Properties Operating Partner LP Tranche B, term loan 3 month U.S. LIBOR + 2.000% 4.2344% 3/23/25 (e)(h) | 437,738 | 437,646 | |
| Thrifts & Mortgage Finance - 0.1% | |||
| Ocwen Loan Servicing LLC Tranche B, term loan 3 month U.S. LIBOR + 5.000% 7.2344% 12/5/20 (e)(h) | 1,007,062 | 1,002,863 | |
| TOTAL FINANCIALS | 4,486,535 | ||
| INDUSTRIALS - 0.3% | |||
| Commercial Services & Supplies - 0.3% | |||
| Lineage Logistics Holdings, LLC. Tranche B, term loan 3 month U.S. LIBOR + 3.000% 5.2344% 2/27/25 (e)(h) | 2,931,208 | 2,920,216 | |
| INFORMATION TECHNOLOGY - 0.1% | |||
| Electronic Equipment & Components - 0.1% | |||
| Compass Power Generation LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.500% 5.7344% 12/20/24 (e)(h) | 538,445 | 540,329 | |
| REAL ESTATE - 1.5% | |||
| Equity Real Estate Investment Trusts (REITs) - 0.8% | |||
| Invitation Homes Operating Par Tranche B, term loan 3 month U.S. LIBOR + 1.700% 3.9691% 2/6/22 (e)(g)(h) | 5,000,000 | 4,875,000 | |
| iStar Financial, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.750% 5.0883% 6/28/23 (e)(h) | 2,621,580 | 2,628,134 | |
| 7,503,134 | |||
| Real Estate Management & Development - 0.7% | |||
| Capital Automotive LP Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.500% 4.74% 3/24/24 (e)(h) | 605,603 | 604,198 | |
| DTZ U.S. Borrower LLC Tranche B, term loan 3 month U.S. LIBOR + 3.250% 5.4844% 8/21/25 (e)(h) | 4,771,950 | 4,786,886 | |
| VICI Properties, LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.000% 4.2715% 12/22/24 (e)(h) | 1,765,000 | 1,760,305 | |
| 7,151,389 | |||
| TOTAL REAL ESTATE | 14,654,523 | ||
| UTILITIES - 0.6% | |||
| Electric Utilities - 0.2% | |||
| Lightstone Holdco LLC: | |||
| Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.750% 5.9844% 1/30/24 (e)(h) | 1,856,919 | 1,827,524 | |
| Tranche C 1LN, term loan 3 month U.S. LIBOR + 3.750% 5.9844% 1/30/24 (e)(h) | 104,733 | 103,075 | |
| Southeast Powergen LLC Tranche B, term loan 3 month U.S. LIBOR + 3.500% 5.74% 12/2/21 (e)(h) | 248,874 | 237,675 | |
| 2,168,274 | |||
| Independent Power and Renewable Electricity Producers - 0.4% | |||
| APLP Holdings LP Tranche B, term loan 3 month U.S. LIBOR + 2.750% 4.9844% 4/13/23 (e)(h) | 1,295,824 | 1,294,204 | |
| MRP Generation Holdings LLC Tranche B, term loan 3 month U.S. LIBOR + 7.000% 9.3299% 10/18/22 (e)(h) | 2,552,215 | 2,520,313 | |
| 3,814,517 | |||
| TOTAL UTILITIES | 5,982,791 | ||
| TOTAL BANK LOAN OBLIGATIONS | |||
| (Cost $51,550,017) | 51,318,291 | ||
| Shares | Value | ||
| Money Market Funds - 4.6% | |||
| Fidelity Cash Central Fund 2.43% (i) | 44,183,615 | 44,192,452 | |
| Fidelity Securities Lending Cash Central Fund 2.43% (i)(j) | 229,477 | 229,500 | |
| TOTAL MONEY MARKET FUNDS | |||
| (Cost $44,418,326) | 44,421,952 | ||
| TOTAL INVESTMENT IN SECURITIES - 99.7% | |||
| (Cost $908,688,469) | 969,127,295 | ||
| NET OTHER ASSETS (LIABILITIES) - 0.3% | 2,514,086 | ||
| NET ASSETS - 100% | $971,641,381 |
Legend
(a) Security or a portion of the security is on loan at period end.
(b) Non-income producing
(c) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $288,205,971 or 29.7% of net assets.
(d) Security or a portion of the security purchased on a delayed delivery or when-issued basis.
(e) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end.
(f) Security represents right to receive monthly interest payments on an underlying pool of mortgages or assets. Principal shown is the outstanding par amount of the pool as of the end of the period.
(g) Level 3 security
(h) Coupon is indexed to a floating interest rate which may be multiplied by a specified factor and/or subject to caps or floors.
(i) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(j) Investment made with cash collateral received from securities on loan.
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 | $685,067 |
| Fidelity Securities Lending Cash Central Fund | 30 |
| Total | $685,097 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable. Amount for Fidelity Securities Lending Cash Central Fund 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.
Investment Valuation
The following is a summary of the inputs used, as of July 31, 2019, 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 below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| Valuation Inputs at Reporting Date: | ||||
| Description | Total | Level 1 | Level 2 | Level 3 |
| Investments in Securities: | ||||
| Equities: | ||||
| Consumer Discretionary | $1,264,612 | $1,264,612 | $-- | $-- |
| Energy | 2,596,086 | 2,596,086 | -- | -- |
| Financials | 143,409,800 | 133,661,062 | 9,748,738 | -- |
| Real Estate | 234,188,223 | 220,651,532 | 13,536,691 | -- |
| Utilities | 644,738 | 644,738 | -- | -- |
| Corporate Bonds | 249,067,300 | -- | 249,067,300 | -- |
| Asset-Backed Securities | 28,595,149 | -- | 28,595,140 | 9 |
| Collateralized Mortgage Obligations | 3,463,871 | -- | 3,463,871 | -- |
| Commercial Mortgage Securities | 210,157,273 | -- | 210,157,273 | -- |
| Bank Loan Obligations | 51,318,291 | -- | 44,768,353 | 6,549,938 |
| Money Market Funds | 44,421,952 | 44,421,952 | -- | -- |
| Total Investments in Securities: | $969,127,295 | $403,239,982 | $559,337,366 | $6,549,947 |
Other Information
The composition of credit quality ratings as a percentage of Total Net Assets is as follows (Unaudited):
| U.S. Government and U.S. Government Agency Obligations | 0.3% |
| AAA,AA,A | 2.2% |
| BBB | 8.6% |
| BB | 16.2% |
| B | 11.8% |
| CCC,CC,C | 1.4% |
| Not Rated | 15.3% |
| Equities | 39.3% |
| Short-Term Investments and Net Other Assets | 4.9% |
| 100.0% |
We have used ratings from Moody's Investors Service, Inc. Where Moody's® ratings are not available, we have used S&P® ratings. All ratings are as of the date indicated and do not reflect subsequent changes.
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
| July 31, 2019 | ||
| Assets | ||
| Investment in securities, at value (including securities loaned of $224,400) — See accompanying schedule: Unaffiliated issuers (cost $864,270,143) | $924,705,343 | |
| Fidelity Central Funds (cost $44,418,326) | 44,421,952 | |
| Total Investment in Securities (cost $908,688,469) | $969,127,295 | |
| Receivable for investments sold | 1,507,502 | |
| Receivable for fund shares sold | 190,223 | |
| Dividends receivable | 310,597 | |
| Interest receivable | 4,906,909 | |
| Distributions receivable from Fidelity Central Funds | 91,216 | |
| Total assets | 976,133,742 | |
| Liabilities | ||
| Payable for investments purchased | ||
| Regular delivery | $2,585,664 | |
| Delayed delivery | 1,500,000 | |
| Payable for fund shares redeemed | 169,976 | |
| Other payables and accrued expenses | 7,221 | |
| Collateral on securities loaned | 229,500 | |
| Total liabilities | 4,492,361 | |
| Net Assets | $971,641,381 | |
| Net Assets consist of: | ||
| Paid in capital | $895,362,073 | |
| Total distributable earnings (loss) | 76,279,308 | |
| Net Assets | $971,641,381 | |
| Net Asset Value and Maximum Offering Price | ||
| Net Asset Value, offering price and redemption price per share ($971,641,381 ÷ 86,662,345 shares) | $11.21 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| Year ended July 31, 2019 | ||
| Investment Income | ||
| Dividends | $20,208,767 | |
| Interest | 31,516,786 | |
| Income from Fidelity Central Funds (including $30 from security lending) | 685,097 | |
| Total income | 52,410,650 | |
| Expenses | ||
| Custodian fees and expenses | $15,359 | |
| Independent trustees' fees and expenses | 5,086 | |
| Miscellaneous | 2,757 | |
| Total expenses before reductions | 23,202 | |
| Expense reductions | (7,655) | |
| Total expenses after reductions | 15,547 | |
| Net investment income (loss) | 52,395,103 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | 10,804,912 | |
| Fidelity Central Funds | 38 | |
| Foreign currency transactions | (59) | |
| Total net realized gain (loss) | 10,804,891 | |
| Change in net unrealized appreciation (depreciation) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | 25,145,488 | |
| Fidelity Central Funds | (91) | |
| Total change in net unrealized appreciation (depreciation) | 25,145,397 | |
| Net gain (loss) | 35,950,288 | |
| Net increase (decrease) in net assets resulting from operations | $88,345,391 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Year ended July 31, 2019 | Year ended July 31, 2018 | |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $52,395,103 | $48,424,597 |
| Net realized gain (loss) | 10,804,891 | 16,351,331 |
| Change in net unrealized appreciation (depreciation) | 25,145,397 | (32,584,399) |
| Net increase (decrease) in net assets resulting from operations | 88,345,391 | 32,191,529 |
| Distributions to shareholders | (66,053,733) | – |
| Distributions to shareholders from net investment income | – | (49,000,695) |
| Distributions to shareholders from net realized gain | – | (12,651,932) |
| Total distributions | (66,053,733) | (61,652,627) |
| Share transactions - net increase (decrease) | 41,961,888 | 36,122,209 |
| Total increase (decrease) in net assets | 64,253,546 | 6,661,111 |
| Net Assets | ||
| Beginning of period | 907,387,835 | 900,726,724 |
| End of period | $971,641,381 | $907,387,835 |
| Other Information | ||
| Undistributed net investment income end of period | $6,659,140 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Series Real Estate Income Fund
| Years ended July 31, | 2019 | 2018 | 2017 | 2016 | 2015 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $10.97 | $11.34 | $11.43 | $11.13 | $11.47 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .61 | .59 | .55 | .52 | .56 |
| Net realized and unrealized gain (loss) | .42 | (.20) | .06 | .42 | (.01) |
| Total from investment operations | 1.03 | .39 | .61 | .94 | .55 |
| Distributions from net investment income | (.62) | (.60) | (.52) | (.53) | (.61) |
| Distributions from net realized gain | (.17) | (.16) | (.18) | (.11) | (.29) |
| Total distributions | (.79) | (.76) | (.70) | (.64) | (.89)B |
| Net asset value, end of period | $11.21 | $10.97 | $11.34 | $11.43 | $11.13 |
| Total ReturnC | 9.91% | 3.61% | 5.65% | 8.93% | 5.05% |
| Ratios to Average Net AssetsD,E | |||||
| Expenses before reductions | - %F | - %F | .63% | .77% | .77% |
| Expenses net of fee waivers, if any | - %F | - %F | .63% | .77% | .77% |
| Expenses net of all reductions | - %F | - %F | .63% | .77% | .77% |
| Net investment income (loss) | 5.67% | 5.36% | 4.89% | 4.81% | 5.03% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $971,641 | $907,388 | $423,538 | $411,102 | $401,861 |
| Portfolio turnover rateG | 16% | 27% | 24% | 24% | 19% |
A Calculated based on average shares outstanding during the period.
B Total distributions of $.89 per share is comprised of distributions from net investment income of $.606 and distributions from net realized gain of $.288 per share.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D 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.
E Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
F Amount represents less than .005%.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended July 31, 2019
1. Organization.
Fidelity Series Real Estate Income Fund (the Fund) is a fund of Fidelity Securities Fund (the Trust) and is authorized to issue an unlimited number of shares. Shares of the Fund are only available for purchase by mutual funds for which Fidelity Management & Research Company (FMR) or an affiliate serves as an investment manager. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. Effective August 28, 2017, the Fund no longer offered Class F, and all outstanding shares of Class F were exchanged for shares of Series Real Estate Income.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date ranged from less than .005% to .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investments Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. Corporate bonds and bank loan obligations are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. Asset backed securities, collateralized mortgage obligations and commercial mortgage securities are valued by pricing vendors who utilize matrix pricing which considers prepayment speed assumptions, attributes of the collateral, yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances. The Fund invests a significant portion of its assets in below investment grade securities. The value of these securities can be more volatile due to changes in the credit quality of the issuer and is sensitive to changes in economic, market and regulatory conditions.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
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 July 31, 2019 is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain. Debt obligations may be placed on non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivables when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is reasonably assured.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. As of July 31, 2019, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, equity-debt classifications, certain conversion ratio adjustments, partnerships and losses deferred due to wash sales.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
| Gross unrealized appreciation | $73,527,084 |
| Gross unrealized depreciation | (16,522,546) |
| Net unrealized appreciation (depreciation) | $57,004,538 |
| Tax Cost | $912,122,757 |
The tax-based components of distributable earnings as of period end were as follows:
| Undistributed ordinary income | $11,989,456 |
| Undistributed long-term capital gain | $7,373,734 |
| Net unrealized appreciation (depreciation) on securities and other investments | $57,004,538 |
The tax character of distributions paid was as follows:
| July 31, 2019 | July 31, 2018 | |
| Ordinary Income | $53,148,092 | $ 49,000,695 |
| Long-term Capital Gains | 12,905,641 | 12,651,932 |
| Total | $66,053,733 | $ 61,652,627 |
Delayed Delivery Transactions and When-Issued Securities. During the period, the Fund transacted in securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. The securities purchased on a delayed delivery or when-issued basis are identified as such in the Fund's Schedule of Investments. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
Loans and Other Direct Debt Instruments. The Fund invests in direct debt instruments which are interests in amounts owed to lenders by corporate or other borrowers. These instruments may be in the form of loans, trade claims or other receivables and may include standby financing commitments such as revolving credit facilities that obligate the Fund to supply additional cash to the borrower on demand. Loans may be acquired through assignment or participation. The Fund did not have any unfunded loan commitments, which are contractual obligations for future funding, at period end.
New Rule Issuance. During August 2018, the U.S. Securities and Exchange Commission issued Final Rule Release No. 33-10532, Disclosure Update and Simplification. This Final Rule includes amendments specific to registered investment companies that are intended to eliminate overlap in disclosure requirements between Regulation S-X and GAAP. In accordance with these amendments, certain line-items in the Fund's financial statements have been combined or removed for the current period as outlined in the table below.
| Financial Statement | Current Line-Item Presentation (As Applicable) | Prior Line-Item Presentation (As Applicable) |
| Statement of Assets and Liabilities | Total distributable earnings (loss) | Undistributed/Distributions in excess of/Accumulated net investment income (loss) Accumulated/Undistributed net realized gain (loss) Net unrealized appreciation (depreciation) |
| Statement of Changes in Net Assets | N/A - removed | Undistributed/Distributions in excess of/Accumulated net investment income (loss) end of period |
| Statement of Changes in Net Assets | Distributions to shareholders | Distributions to shareholders from net investment income Distributions to shareholders from net realized gain |
| Distributions to Shareholders Note to Financial Statements | Distributions to shareholders | Distributions to shareholders from net investment income Distributions to shareholders from net realized gain |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $144,656,406 and $139,258,920, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund does not pay a management fee. Under the management contract, the investment adviser or an affiliate pays all ordinary operating expenses of the Fund, except custody fees, fees and expenses of the independent Trustees, and certain miscellaneous expenses such as proxy and shareholder meeting expenses.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $1,444 for the period.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $2,470 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. For equity securities, lending agents are used, including National Financial Services (NFS), an affiliate of the Fund. Pursuant to a securities lending agreement, NFS will receive a fee, which is capped at 9.9% of daily lending revenue, for its services as lending agent. The Fund may lend securities to certain qualified borrowers, including NFS. 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. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. During the period, there were no securities loaned to NFS.
8. Expense Reductions.
Through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $7,655.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Year ended July 31, 2019 | Year ended July 31, 2018 | |
| Distributions to shareholders | $66,053,733 | $ - |
| From net investment income | $– | $49,000,695 |
| From net realized gain | $– | $12,651,932 |
10. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Shares | Dollars | Dollars | |
| Year ended July 31, 2019 | Year ended July 31, 2018 | Year ended July 31, 2019 | Year ended July 31, 2018 | |
| Series Real Estate Income | ||||
| Shares sold | 6,193,639 | 48,557,771 | $67,097,399 | $549,896,778 |
| Reinvestment of distributions | 6,181,072 | 5,626,052 | 66,053,733 | 61,652,627 |
| Shares redeemed | (8,439,782) | (8,801,423) | (91,189,244) | (97,080,019) |
| Net increase (decrease) | 3,934,929 | 45,382,400 | $41,961,888 | $514,469,386 |
| Class F | ||||
| Shares sold | – | 191,320 | $– | $2,169,843 |
| Shares redeemed | – | (42,260,435) | – | (480,517,020) |
| Net increase (decrease) | – | (42,069,115) | $– | $(478,347,177) |
11. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
At the end of the period, mutual funds managed by the investment adviser or its affiliates were the owners of record of all of the outstanding shares of the Fund.
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Securities Fund and Shareholders of Fidelity Series Real Estate Income Fund:
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statement of assets and liabilities of Fidelity Series Real Estate Income Fund (the "Fund"), a fund of Fidelity Securities Fund, including the schedule of investments, as of July 31, 2019, the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of July 31, 2019, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund's financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of July 31, 2019, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/ Deloitte & Touche LLP
Boston, Massachusetts
September 17, 2019
We have served as the auditor of one or more of the Fidelity investment companies since 1999.
Trustees and Officers
The Trustees, Members of the Advisory Board (if any), and officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Except for Jonathan Chiel and Michael E. Wiley, each of the Trustees oversees 298 funds. Mr. Chiel oversees 170 funds.Mr. Wiley oversees 197 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the fund is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund’s Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Board Structure and Oversight Function. James C. Curvey is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Ned C. Lautenbach serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and other equity funds. The asset allocation funds may invest in Fidelity® funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Jonathan Chiel (1957)
Year of Election or Appointment: 2016
Trustee
Mr. Chiel also serves as Trustee of other Fidelity® funds. Mr. Chiel is Executive Vice President and General Counsel for FMR LLC (diversified financial services company, 2012-present). Previously, Mr. Chiel served as general counsel (2004-2012) and senior vice president and deputy general counsel (2000-2004) for John Hancock Financial Services; a partner with Choate, Hall & Stewart (1996-2000) (law firm); and an Assistant United States Attorney for the United States Attorney’s Office of the District of Massachusetts (1986-95), including Chief of the Criminal Division (1993-1995). Mr. Chiel is a director on the boards of the Boston Bar Foundation and the Maimonides School.
James C. Curvey (1935)
Year of Election or Appointment: 2007
Trustee
Chairman of the Board of Trustees
Mr. Curvey also serves as Trustee of other Fidelity® funds. Mr. Curvey is Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey is an Overseer Emeritus for the Boston Symphony Orchestra, a Director of Artis-Naples, and a Trustee of Brewster Academy in Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-2018), Director of Fidelity Investments Money Management, Inc. (investment adviser firm, 2009-2014) and a Director of FMR and FMR Co., Inc. (investment adviser firms, 2007-2014).
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), as a member of the Independent Directors Council (IDC) Governing Council (2010-2015), and as a member of the Board of Directors for The Brookville Center for Children’s Services, Inc. (2009-2017). Mr. Dirks is a member of the Finance Committee (2016-present) and Board of Directors (2017-present) and is Treasurer (2018-present) of the Asolo Repertory Theatre.
Donald F. Donahue (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Donahue also serves as a Trustee of other Fidelity® funds. Mr. Donahue is President and Chief Executive Officer of Miranda Partners, LLC (risk consulting for the financial services industry, 2012-present). Previously, Mr. Donahue served as a Member of the Advisory Board of certain Fidelity® funds (2015-2018) and Chief Executive Officer (2006-2012), Chief Operating Officer (2003-2006), and Managing Director, Customer Marketing and Development (1999-2003) of The Depository Trust & Clearing Corporation (financial markets infrastructure). Mr. Donahue serves as a Member (2007-present) and Co-Chairman (2016-present) of the Board of Directors of United Way of New York, Member of the Board of Directors of NYC Leadership Academy (2012-present) and Member of the Board of Advisors of Ripple Labs, Inc. (financial services, 2015-present). He also served as Chairman (2010-2012) and Member of the Board of Directors (2012-2013) of Omgeo, LLC (financial services), Treasurer of United Way of New York (2012-2016), and Member of the Board of Directors of XBRL US (financial services non-profit, 2009-2012) and the International Securities Services Association (2009-2012).
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2014-2017) and a member (2010-2017) of the Board of Directors of Dave & Buster’s Entertainment, Inc. (restaurant and entertainment complexes), as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association, and as a member of the Board of Directors for The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), Earth Fare, Inc. (retail grocery, 2010-2014), and The Western Union Company (global money transfer, 2006-2011).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as Chair (2018-present) and Member (2013-present) of the Board of Governors, State University System of Florida and is a member of the Council on Foreign Relations (1994-present). He is also a member and has most recently served as Chairman of the Board of Directors of Artis-Naples (2012-present). Previously, Mr. Lautenbach served as a member and then Lead Director of the Board of Directors of Eaton Corporation (diversified industrial, 1997-2016). He was also a Partner and Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007). In addition, Mr. Lautenbach also had a 30-year career with IBM (technology company) during which time he served as Senior Vice President and a member of the Corporate Executive Committee (1968-1998).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-2018).
Cornelia M. Small (1944)
Year of Election or Appointment: 2005
Trustee
Ms. Small also serves as Trustee of other Fidelity® funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.
Garnett A. Smith (1947)
Year of Election or Appointment: 2018
Trustee
Mr. Smith also serves as Trustee of other Fidelity® funds. Prior to Mr. Smith's retirement, he served as Chairman and Chief Executive Officer of Inbrand Corp. (manufacturer of personal absorbent products, 1990-1997). He also served as President (1986-1990) of Inbrand Corp. Prior to his employment with Inbrand Corp., he was employed by a retail fabric chain and North Carolina National Bank. In addition, Mr. Smith served as a Member of the Advisory Board of certain Fidelity® funds (2012-2013) and as a board member of the Jackson Hole Land Trust (2009-2012).
David M. Thomas (1949)
Year of Election or Appointment: 2008
Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present) and as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), a Director of Fortune Brands, Inc. (consumer products, 2000-2011), and a member of the Board of Trustees of the University of Florida (2013-2018).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Advisory Board Members and Officers:
Correspondence intended for a Member of the Advisory Board (if any) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235. Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Vicki L. Fuller (1957)
Year of Election or Appointment: 2018
Member of the Advisory Board
Ms. Fuller also serves as Member of the Advisory Board of other Fidelity® funds. Ms. Fuller serves as a member of the Board of Directors, Audit Committee, and Nominating and Governance Committee of The Williams Companies, Inc. (natural gas infrastructure, 2018-present). Previously, Ms. Fuller served as the Chief Investment Officer of the New York State Common Retirement Fund (2012-2018) and held a variety of positions at AllianceBernstein L.P. (global asset management, 1985-2012), including Managing Director (2006-2012) and Senior Vice President and Senior Portfolio Manager (2001-2006).
Peter S. Lynch (1944)
Year of Election or Appointment: 2003
Member of the Advisory Board
Mr. Lynch also serves as Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of FMR (investment adviser firm) and FMR Co., Inc. (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).
Michael E. Wiley (1950)
Year of Election or Appointment: 2018
Member of the Advisory Board
Mr. Wiley also serves as Trustee or Member of the Advisory Board of other Fidelity® funds. Mr. Wiley serves as a Director of High Point Resources (exploration and production, 2005-present). Previously, Mr. Wiley served as a Director of Andeavor Corporation (independent oil refiner and marketer, 2005-2018), a Director of Andeavor Logistics LP (natural resources logistics, 2015-2018), a Director of Post Oak Bank (privately-held bank, 2004-2018), a Director of Asia Pacific Exploration Consolidated (international oil and gas exploration and production, 2008-2013), a member of the Board of Trustees of the University of Tulsa (2000-2006; 2007-2010), a Senior Energy Advisor of Katzenbach Partners, LLC (consulting, 2006-2007), an Advisory Director of Riverstone Holdings (private investment), a Director of Spinnaker Exploration Company (exploration and production, 2001-2005) and Chairman, President, and CEO of Baker Hughes, Inc. (oilfield services, 2000-2004).
Elizabeth Paige Baumann (1968)
Year of Election or Appointment: 2017
Anti-Money Laundering (AML) Officer
Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer (2012-present) and Senior Vice President (2014-present) of FMR LLC (diversified financial services company) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as AML Officer of the funds (2012-2016), and Vice President (2007-2014) and Deputy Anti-Money Laundering Officer (2007-2012) of FMR LLC.
Craig S. Brown (1977)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Brown also serves as Assistant Treasurer of other funds. Mr. Brown is an employee of Fidelity Investments (2013-present).
John J. Burke III (1964)
Year of Election or Appointment: 2018
Chief Financial Officer
Mr. Burke also serves as Chief Financial Officer of other funds. Mr. Burke serves as Head of Investment Operations for Fidelity Fund and Investment Operations (2018-present) and is an employee of Fidelity Investments (1998-present). Previously Mr. Burke served as head of Asset Management Investment Operations (2012-2018).
William C. Coffey (1969)
Year of Election or Appointment: 2018
Secretary and Chief Legal Officer (CLO)
Mr. Coffey also serves as Secretary and CLO of other funds. Mr. Coffey serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2018-present); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2018-present); and CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2018-present). He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Assistant Secretary of certain funds (2009-2018) and as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Timothy M. Cohen (1969)
Year of Election or Appointment: 2018
Vice President
Mr. Cohen also serves as Vice President of other funds. Mr. Cohen serves as Executive Vice President of Fidelity SelectCo, LLC (2019-present), Co-Head of Equity (2018-present), a Director of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present), and is an employee of Fidelity Investments. Previously, Mr. Cohen served as Head of Global Equity Research (2016-2018), Chief Investment Officer - Equity and a Director of Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2013-2015) and as a Director of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2017).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds. Mr. Davis serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present), and is an employee of Fidelity Investments (2008-present). Previously, Mr. Deberghes served as President and Treasurer of certain Fidelity® funds (2013-2018). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). Previously, Mr. Deberghes served in other fund officer roles.
Laura M. Del Prato (1964)
Year of Election or Appointment: 2018
Assistant Treasurer
Ms. Del Prato also serves as an officer of other funds. Ms. Del Prato is an employee of Fidelity Investments (2017-present). Prior to joining Fidelity Investments, Ms. Del Prato served as a Managing Director and Treasurer of the JPMorgan Mutual Funds (2014-2017). Prior to JPMorgan, Ms. Del Prato served as a partner at Cohen Fund Audit Services (accounting firm, 2012-2013) and KPMG LLP (accounting firm, 2004-2012).
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2005-present). Previously, Mr. Hogan served as Assistant Treasurer of certain Fidelity® funds (2016-2018).
Pamela R. Holding (1964)
Year of Election or Appointment: 2018
Vice President
Ms. Holding also serves as Vice President of other funds. Ms. Holding serves as Executive Vice President of Fidelity SelectCo, LLC (2019-present), Co-Head of Equity (2018-present) and is an employee of Fidelity Investments (2013-present). Previously, Ms. Holding served as Chief Investment Officer of Fidelity Institutional Asset Management (2013-2018).
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight, serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. Ms. Smith serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), is an employee of Fidelity Investments (2009-present), and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Assistant Treasurer (2013-2018) and Deputy Treasurer (2013-2016) of certain Fidelity® funds.
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
Jim Wegmann (1979)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Wegmann also serves as Assistant Treasurer of other funds. Mr. Wegmann is an employee of Fidelity Investments (2011-present).
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs and (2) ongoing costs, including 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 (February 1, 2019 to July 31, 2019).
Actual Expenses
The first line of the accompanying table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. 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.
| Annualized Expense RatioA,B | Beginning Account Value February 1, 2019 | Ending Account Value July 31, 2019 | Expenses Paid During Period February 1, 2019 to July 31, 2019C,D | |
| Series Real Estate Income | - % | |||
| Actual | $1,000.00 | $1,071.40 | $- | |
| HypotheticalE | $1,000.00 | $1,024.79 | $- |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Amount represents less than .005%.
C Expenses are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
D Amount represents less than $.005.
E 5% return per year before expenses
Distributions (Unaudited)
The Board of Trustees of Fidelity Series Real Estate Income Fund voted to pay on September 9, 2019, to shareholders of record at the opening of business on September 6, 2019, a distribution of $0.095 per share derived from capital gains realized from sales of portfolio securities and a dividend of $0.165 per share from net investment income.
The fund hereby designates as a capital gain dividend with respect to the taxable year ended July 31, 2019, $9,843,060, or, if subsequently determined to be different, the net capital gain of such year.
A total of 0.35% of the dividends distributed during the fiscal year was derived from interest on U.S. Government securities which is generally exempt from state income tax.
The fund will notify shareholders in January 2020 of amounts for use in preparing 2019 income tax returns.
SRE-ANN-0919
1.924310.107
Fidelity® Series Blue Chip Growth Fund Annual Report July 31, 2019 |
|
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of a fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a financial advisor, broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from a fund electronically, by contacting your financial intermediary. For Fidelity customers, visit Fidelity's web site or call Fidelity using the contact information listed below.
You may elect to receive all future reports in paper free of charge. If you wish to continue receiving paper copies of your shareholder reports, you may contact your financial intermediary or, if you are a Fidelity customer, visit Fidelity’s website, or call Fidelity at the applicable toll-free number listed below. Your election to receive reports in paper will apply to all funds held with the fund complex/your financial intermediary.
| Account Type | Website | Phone Number |
| Brokerage, Mutual Fund, or Annuity Contracts: | fidelity.com/mailpreferences | 1-800-343-3548 |
| Employer Provided Retirement Accounts: | netbenefits.fidelity.com/preferences (choose 'no' under Required Disclosures to continue to print) | 1-800-343-0860 |
| Advisor Sold Accounts Serviced Through Your Financial Intermediary: | Contact Your Financial Intermediary | Your Financial Intermediary's phone number |
| Advisor Sold Accounts Serviced by Fidelity: | institutional.fidelity.com | 1-877-208-0098 |
Contents
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2019 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT. Forms N-PORT are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-PORT 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.institutional.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.
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
| For the periods ended July 31, 2019 | Past 1 year | Past 5 years | Life of fundA |
| Fidelity® Series Blue Chip Growth Fund | 11.85% | 15.68% | 15.80% |
A From November 7, 2013
$10,000 Over Life of Fund
Let's say hypothetically that $10,000 was invested in Fidelity® Series Blue Chip Growth Fund on November 7, 2013, when the fund started.
The chart shows how the value of your investment would have changed, and also shows how the Russell 1000® Growth Index performed over the same period.
| Period Ending Values | ||
| $23,180 | Fidelity® Series Blue Chip Growth Fund | |
| $21,744 | Russell 1000® Growth Index | |
Management's Discussion of Fund Performance
Market Recap: The U.S. equity bellwether S&P 500® index gained 7.99% for the 12 months ending July 31, 2019, beginning the new year on a high note after enduring a historically volatile final quarter of 2018. Upbeat company earnings/outlooks and signs the Federal Reserve may pause on rates boosted stocks to an all-time high on April 30. In May, however, volatility spiked and stocks returned -6.35% for the month amid the Fed’s decision to hold interest rates steady and signal that it had little appetite to adjust them any time soon, as well as retaliatory tariffs imposed on the U.S. by China. The downtrend was similar to late 2018, when many investors fled from risk assets on elevated concerns about future economic growth, global trade and tighter monetary policy. The bull market roared back in June, with the S&P 500® rising 7.05%, and recorded a series of all-time highs in a productive July (+1.44%). For the full 12 months, growth stocks outpaced value, while large-caps handily bested small-caps. By sector, information technology (+19%) led the way, boosted by continued strength in software & services (+26%), the market’s largest industry segment. Three defensive groups also stood out – real estate (+18%), utilities (+17%) and consumer staples (+15%) – followed by consumer discretionary (+10%) and communication services (+8%). In contrast, energy (-16%) was by far the weakest sector. Other notable laggards included materials (0%), financials (+3%), industrials (+4%) and health care (+4%).Comments from Portfolio Manager Sonu Kalra: For the fiscal year, the fund returned 11.85%, ahead of the 10.82% result of the Russell 1000® Growth Index. An out-of-benchmark private investment in e-cigarette maker JUUL Labs was the fund’s top contributor. JUUL’s success in penetrating the U.S. market supported a higher valuation for this position. As the largest industry participant, JUUL has been a focus of the U.S. Food and Drug Administration, which called teen vaping an "epidemic." Elsewhere, choices in information technology and an underweighting in industrials also contributed, as did overweightings in semiconductor designer Marvell Technology group and apparel company Lululemon Athletica. Conversely, security selection in consumer discretionary and materials hurt the fund’s relative return, as did positioning in communication services and energy. Among individual positions, an overweighting in Nvidia (-31%) stood out to the downside, as the designer of graphics chips grappled with excess inventory amid a slowdown in capital spending from some of its customers. An outsized stake in Activision Blizzard (-33%) also detracted, as the video-gaming company faced strong competition from the blockbuster online game Fortnite.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Investment Summary (Unaudited)
Top Ten Stocks as of July 31, 2019
| % of fund's net assets | |
| Alphabet, Inc. Class A | 7.4 |
| Amazon.com, Inc. | 6.7 |
| Microsoft Corp. | 5.4 |
| Apple, Inc. | 5.2 |
| Facebook, Inc. Class A | 4.3 |
| JUUL Labs, Inc. Series C | 3.3 |
| Marvell Technology Group Ltd. | 2.6 |
| Salesforce.com, Inc. | 2.3 |
| Visa, Inc. Class A | 2.3 |
| lululemon athletica, Inc. | 1.7 |
| 41.2 |
Top Five Market Sectors as of July 31, 2019
| % of fund's net assets | |
| Information Technology | 33.9 |
| Consumer Discretionary | 22.5 |
| Communication Services | 16.4 |
| Health Care | 12.7 |
| Consumer Staples | 5.9 |
Asset Allocation (% of fund's net assets)
| As of July 31, 2019 * | ||
| Stocks | 94.7% | |
| Convertible Securities | 5.1% | |
| Short-Term Investments and Net Other Assets (Liabilities) | 0.2% | |
* Foreign investments - 11.5%
Schedule of Investments July 31, 2019
Showing Percentage of Net Assets
| Common Stocks - 94.6% | |||
| Shares | Value | ||
| COMMUNICATION SERVICES - 16.4% | |||
| Entertainment - 3.3% | |||
| Activision Blizzard, Inc. | 517,428 | $25,219,441 | |
| Netflix, Inc. (a) | 241,246 | 77,920,046 | |
| Nintendo Co. Ltd. | 13,200 | 4,856,187 | |
| Nintendo Co. Ltd. ADR | 45,900 | 2,120,121 | |
| Take-Two Interactive Software, Inc. (a) | 57,100 | 6,995,892 | |
| The Walt Disney Co. | 471,900 | 67,486,419 | |
| WME Entertainment Parent, LLC Class A (a)(b)(c)(d) | 3,128,633 | 10,042,912 | |
| 194,641,018 | |||
| Interactive Media & Services - 12.8% | |||
| Alphabet, Inc. Class A (a) | 356,413 | 434,182,313 | |
| ANGI Homeservices, Inc. Class A (a) | 7,798 | 108,002 | |
| CarGurus, Inc. Class A (a) | 139,588 | 5,202,445 | |
| Facebook, Inc. Class A (a) | 1,291,355 | 250,819,882 | |
| IAC/InterActiveCorp (a) | 15,000 | 3,585,750 | |
| Match Group, Inc. (e) | 72,000 | 5,420,880 | |
| Snap, Inc. Class A (a)(e) | 393,100 | 6,604,080 | |
| Tencent Holdings Ltd. | 482,400 | 22,476,450 | |
| Twitter, Inc. (a) | 470,800 | 19,919,548 | |
| Zillow Group, Inc. Class C (a)(e) | 25,600 | 1,278,976 | |
| 749,598,326 | |||
| Media - 0.1% | |||
| Sinclair Broadcast Group, Inc. Class A | 67,400 | 3,386,850 | |
| Wireless Telecommunication Services - 0.2% | |||
| T-Mobile U.S., Inc. (a) | 132,300 | 10,548,279 | |
| TOTAL COMMUNICATION SERVICES | 958,174,473 | ||
| CONSUMER DISCRETIONARY - 22.0% | |||
| Auto Components - 0.0% | |||
| Aptiv PLC | 24,900 | 2,182,485 | |
| Automobiles - 1.2% | |||
| Tesla, Inc. (a)(e) | 287,437 | 69,447,654 | |
| Diversified Consumer Services - 0.0% | |||
| Afya Ltd. | 51,700 | 1,495,164 | |
| Hotels, Restaurants & Leisure - 2.7% | |||
| Chipotle Mexican Grill, Inc. (a) | 7,200 | 5,727,816 | |
| Churchill Downs, Inc. | 15,700 | 1,878,505 | |
| Dunkin' Brands Group, Inc. | 7,500 | 601,200 | |
| Eldorado Resorts, Inc. (a) | 276,600 | 12,480,192 | |
| Hilton Grand Vacations, Inc. (a) | 241,000 | 7,880,700 | |
| Kambi Group PLC (a) | 126,200 | 1,619,749 | |
| McDonald's Corp. | 1,200 | 252,864 | |
| Planet Fitness, Inc. (a) | 177,200 | 13,938,552 | |
| PlayAGS, Inc. (a) | 248,300 | 4,658,108 | |
| Restaurant Brands International, Inc. | 169,900 | 12,512,714 | |
| Royal Caribbean Cruises Ltd. | 124,300 | 14,461,062 | |
| Sea Ltd. ADR (a) | 922,600 | 32,383,260 | |
| Shake Shack, Inc. Class A (a) | 67,900 | 5,069,414 | |
| Starbucks Corp. | 261,200 | 24,733,028 | |
| Vail Resorts, Inc. | 12,800 | 3,155,456 | |
| Wynn Resorts Ltd. | 132,000 | 17,169,240 | |
| 158,521,860 | |||
| Household Durables - 0.4% | |||
| D.R. Horton, Inc. | 109,200 | 5,015,556 | |
| Mohawk Industries, Inc. (a) | 91,664 | 11,429,584 | |
| Roku, Inc. Class A (a) | 69,300 | 7,160,769 | |
| 23,605,909 | |||
| Internet & Direct Marketing Retail - 9.6% | |||
| Alibaba Group Holding Ltd. sponsored ADR (a) | 275,000 | 47,605,250 | |
| Amazon.com, Inc. (a) | 210,280 | 392,546,498 | |
| Chewy, Inc. (e) | 33,200 | 1,114,192 | |
| JD.com, Inc. sponsored ADR (a) | 540,200 | 16,157,382 | |
| MakeMyTrip Ltd. (a) | 49,000 | 1,253,910 | |
| Meituan Dianping Class B | 1,454,652 | 11,762,588 | |
| MercadoLibre, Inc. (a) | 21,800 | 13,546,956 | |
| Ocado Group PLC (a) | 91,500 | 1,385,907 | |
| Pinduoduo, Inc. ADR (e) | 651,700 | 14,513,359 | |
| The Booking Holdings, Inc. (a) | 20,000 | 37,732,200 | |
| The Honest Co., Inc. (a)(c)(d) | 71,609 | 1,051,220 | |
| The RealReal, Inc. (e) | 215,800 | 5,297,890 | |
| Wayfair LLC Class A (a) | 139,600 | 18,309,936 | |
| 562,277,288 | |||
| Multiline Retail - 0.9% | |||
| Dollar General Corp. | 21,000 | 2,814,420 | |
| Dollar Tree, Inc. (a) | 357,700 | 36,395,975 | |
| Dollarama, Inc. | 53,200 | 1,971,117 | |
| Ollie's Bargain Outlet Holdings, Inc. (a) | 32,100 | 2,718,549 | |
| Target Corp. | 87,700 | 7,577,280 | |
| 51,477,341 | |||
| Specialty Retail - 3.5% | |||
| American Eagle Outfitters, Inc. | 283,600 | 5,016,884 | |
| Burlington Stores, Inc. (a) | 76,600 | 13,845,450 | |
| Carvana Co. Class A (a)(e) | 130,700 | 8,307,292 | |
| Five Below, Inc. (a) | 69,500 | 8,163,470 | |
| Floor & Decor Holdings, Inc. Class A (a) | 223,500 | 8,750,025 | |
| IAA Spinco, Inc. (a) | 15,000 | 701,250 | |
| John David Group PLC | 77,900 | 615,583 | |
| Lowe's Companies, Inc. | 517,500 | 52,474,500 | |
| RH (a)(e) | 277,418 | 38,672,069 | |
| The Children's Place Retail Stores, Inc. | 31,700 | 3,096,139 | |
| The Home Depot, Inc. | 207,214 | 44,279,560 | |
| TJX Companies, Inc. | 147,100 | 8,025,776 | |
| Ulta Beauty, Inc. (a) | 32,100 | 11,210,925 | |
| 203,158,923 | |||
| Textiles, Apparel & Luxury Goods - 3.7% | |||
| adidas AG | 37,035 | 11,870,897 | |
| Allbirds, Inc. (c)(d) | 8,081 | 404,777 | |
| Canada Goose Holdings, Inc. (a) | 61,600 | 2,884,904 | |
| Capri Holdings Ltd. (a) | 192,100 | 6,836,839 | |
| Crocs, Inc. (a) | 90,800 | 2,074,780 | |
| lululemon athletica, Inc. (a) | 526,568 | 100,621,879 | |
| LVMH Moet Hennessy Louis Vuitton SE | 16,700 | 6,898,088 | |
| Moncler SpA | 167,900 | 6,908,613 | |
| NIKE, Inc. Class B | 496,800 | 42,739,704 | |
| PVH Corp. | 139,000 | 12,359,880 | |
| Revolve Group, Inc. (e) | 92,000 | 3,171,240 | |
| Tapestry, Inc. | 223,700 | 6,919,041 | |
| Tory Burch LLC (a)(b)(c)(d) | 106,817 | 6,860,856 | |
| Under Armour, Inc. Class C (non-vtg.) (a) | 239,100 | 4,863,294 | |
| 215,414,792 | |||
| TOTAL CONSUMER DISCRETIONARY | 1,287,581,416 | ||
| CONSUMER STAPLES - 2.4% | |||
| Beverages - 0.4% | |||
| Constellation Brands, Inc. Class A (sub. vtg.) | 9,900 | 1,948,518 | |
| Fever-Tree Drinks PLC | 242,903 | 6,900,412 | |
| Keurig Dr. Pepper, Inc. | 171,000 | 4,811,940 | |
| Monster Beverage Corp. (a) | 111,400 | 7,181,958 | |
| Pernod Ricard SA | 3,500 | 616,239 | |
| 21,459,067 | |||
| Food & Staples Retailing - 1.0% | |||
| BJ's Wholesale Club Holdings, Inc. (a) | 618,100 | 14,562,436 | |
| Costco Wholesale Corp. | 130,700 | 36,024,841 | |
| Grocery Outlet Holding Corp. | 15,700 | 611,358 | |
| Walmart, Inc. | 57,600 | 6,357,888 | |
| 57,556,523 | |||
| Food Products - 0.2% | |||
| Darling International, Inc. (a) | 72,100 | 1,465,793 | |
| JBS SA | 116,300 | 758,806 | |
| Nestle SA (Reg. S) | 7,070 | 750,037 | |
| The Kraft Heinz Co. | 111,000 | 3,553,110 | |
| Tyson Foods, Inc. Class A | 69,100 | 5,493,450 | |
| 12,021,196 | |||
| Household Products - 0.0% | |||
| Energizer Holdings, Inc. | 46,200 | 1,944,096 | |
| Personal Products - 0.4% | |||
| Coty, Inc. Class A | 823,904 | 8,988,793 | |
| Estee Lauder Companies, Inc. Class A | 69,400 | 12,782,786 | |
| 21,771,579 | |||
| Tobacco - 0.4% | |||
| Altria Group, Inc. | 522,200 | 24,579,954 | |
| JUUL Labs, Inc. (a)(c)(d) | 2,450 | 698,250 | |
| 25,278,204 | |||
| TOTAL CONSUMER STAPLES | 140,030,665 | ||
| ENERGY - 0.5% | |||
| Oil, Gas & Consumable Fuels - 0.5% | |||
| Continental Resources, Inc. (a) | 112,364 | 4,176,570 | |
| Diamondback Energy, Inc. | 62,700 | 6,485,061 | |
| Hess Corp. | 73,500 | 4,765,740 | |
| Pioneer Natural Resources Co. | 4,500 | 621,180 | |
| Reliance Industries Ltd. | 917,621 | 15,448,750 | |
| 31,497,301 | |||
| FINANCIALS - 0.9% | |||
| Banks - 0.3% | |||
| Bank of America Corp. | 368,100 | 11,293,308 | |
| HDFC Bank Ltd. sponsored ADR | 5,600 | 643,888 | |
| ICICI Bank Ltd. sponsored ADR | 115,200 | 1,406,592 | |
| IndusInd Bank Ltd. | 44,055 | 899,718 | |
| Kotak Mahindra Bank Ltd. | 196,376 | 4,317,598 | |
| 18,561,104 | |||
| Capital Markets - 0.1% | |||
| Edelweiss Financial Services Ltd. | 287,620 | 607,105 | |
| HDFC Asset Management Co. Ltd. (f) | 403 | 12,516 | |
| MSCI, Inc. | 10,600 | 2,408,744 | |
| 3,028,365 | |||
| Diversified Financial Services - 0.1% | |||
| GDS Holdings Ltd. ADR (a) | 67,500 | 2,779,650 | |
| Insurance - 0.3% | |||
| eHealth, Inc. (a) | 158,900 | 16,485,875 | |
| Thrifts & Mortgage Finance - 0.1% | |||
| LendingTree, Inc. (a) | 26,400 | 8,515,056 | |
| TOTAL FINANCIALS | 49,370,050 | ||
| HEALTH CARE - 12.4% | |||
| Biotechnology - 5.2% | |||
| AbbVie, Inc. | 334,000 | 22,251,080 | |
| ACADIA Pharmaceuticals, Inc. (a) | 87,700 | 2,155,666 | |
| Acceleron Pharma, Inc. (a) | 58,700 | 2,562,842 | |
| Agios Pharmaceuticals, Inc. (a) | 134,323 | 6,462,280 | |
| Aimmune Therapeutics, Inc. (a) | 115,000 | 2,213,750 | |
| Alexion Pharmaceuticals, Inc. (a) | 342,504 | 38,802,278 | |
| Allakos, Inc. (a) | 35,800 | 1,244,766 | |
| Allogene Therapeutics, Inc. (e) | 25,600 | 793,600 | |
| Alnylam Pharmaceuticals, Inc. (a) | 347,200 | 26,939,248 | |
| AnaptysBio, Inc. (a) | 44,900 | 2,411,579 | |
| Arena Pharmaceuticals, Inc. (a) | 75,400 | 4,726,072 | |
| Argenx SE ADR (a) | 10,700 | 1,502,922 | |
| Ascendis Pharma A/S sponsored ADR (a) | 127,100 | 14,713,096 | |
| Axcella Health, Inc. | 134,644 | 1,027,603 | |
| BeiGene Ltd. | 140,400 | 1,441,533 | |
| BeiGene Ltd. ADR (a) | 37,100 | 5,095,314 | |
| bluebird bio, Inc. (a) | 128,200 | 16,823,686 | |
| Blueprint Medicines Corp. (a) | 28,300 | 2,834,245 | |
| Bridgebio Pharma, Inc. | 56,900 | 1,670,015 | |
| CareDx, Inc. (a) | 217,700 | 7,134,029 | |
| Cellectis SA sponsored ADR (a) | 42,400 | 616,920 | |
| Cibus Corp.: | |||
| Series C (a)(b)(c)(d) | 726,554 | 1,211,995 | |
| Series D (a)(b)(c)(d) | 398,640 | 498,300 | |
| Coherus BioSciences, Inc. (a) | 173,500 | 2,918,270 | |
| Crinetics Pharmaceuticals, Inc. (a)(e) | 62,936 | 1,276,342 | |
| CytomX Therapeutics, Inc. (a)(f) | 137,854 | 1,421,275 | |
| Denali Therapeutics, Inc. (a)(e) | 137,500 | 2,935,625 | |
| Editas Medicine, Inc. (a)(e) | 101,989 | 2,575,222 | |
| Epizyme, Inc. (a) | 35,600 | 472,056 | |
| Exact Sciences Corp. (a) | 31,000 | 3,568,410 | |
| FibroGen, Inc. (a) | 84,500 | 3,993,470 | |
| Global Blood Therapeutics, Inc. (a) | 125,800 | 6,893,840 | |
| Immunomedics, Inc. (a)(e) | 155,800 | 2,298,050 | |
| Intellia Therapeutics, Inc. (a)(e) | 117,657 | 2,129,592 | |
| Intercept Pharmaceuticals, Inc. (a) | 108,500 | 6,819,225 | |
| Ionis Pharmaceuticals, Inc. (a) | 70,312 | 4,630,748 | |
| Ironwood Pharmaceuticals, Inc. Class A (a) | 304,316 | 3,234,879 | |
| Natera, Inc. (a) | 172,900 | 4,768,582 | |
| Neurocrine Biosciences, Inc. (a) | 155,400 | 14,979,006 | |
| Principia Biopharma, Inc. | 23,100 | 857,934 | |
| Repligen Corp. (a) | 7,000 | 660,730 | |
| Rubius Therapeutics, Inc. | 30,200 | 401,660 | |
| Sage Therapeutics, Inc. (a) | 143,886 | 23,070,681 | |
| Sarepta Therapeutics, Inc. (a) | 102,800 | 15,301,780 | |
| Scholar Rock Holding Corp. (a) | 40,800 | 501,432 | |
| The Medicines Company (a) | 176,200 | 6,315,008 | |
| TransMedics Group, Inc. | 82,100 | 1,948,233 | |
| Vertex Pharmaceuticals, Inc. (a) | 94,400 | 15,728,928 | |
| Xencor, Inc. (a) | 109,200 | 4,806,984 | |
| Zai Lab Ltd. ADR (a) | 117,025 | 3,758,843 | |
| 303,399,624 | |||
| Health Care Equipment & Supplies - 3.0% | |||
| Alcon, Inc. (a) | 127,200 | 7,473,000 | |
| Atricure, Inc. (a) | 40,200 | 1,289,616 | |
| Axonics Modulation Technologies, Inc. (a)(e) | 69,400 | 2,546,980 | |
| Boston Scientific Corp. (a) | 1,351,000 | 57,363,460 | |
| Danaher Corp. | 78,200 | 10,987,100 | |
| DexCom, Inc. (a) | 33,100 | 5,192,397 | |
| Edwards Lifesciences Corp. (a) | 9,000 | 1,915,650 | |
| Establishment Labs Holdings, Inc. (a)(e) | 119,900 | 2,992,704 | |
| Inspire Medical Systems, Inc. (a) | 10,400 | 703,352 | |
| Insulet Corp. (a) | 79,800 | 9,810,612 | |
| Intuitive Surgical, Inc. (a) | 90,800 | 47,171,508 | |
| Koninklijke Philips Electronics NV | 95,900 | 4,498,731 | |
| Koninklijke Philips Electronics NV (depositary receipt) (NY Reg.) | 28,100 | 1,314,799 | |
| Novocure Ltd. (a) | 62,200 | 5,176,284 | |
| Quanterix Corp. (a) | 38,600 | 1,195,828 | |
| Shockwave Medical, Inc. (a)(e) | 134,000 | 6,555,280 | |
| Silk Road Medical, Inc. | 19,700 | 852,813 | |
| Tandem Diabetes Care, Inc. (a) | 82,400 | 5,226,632 | |
| ViewRay, Inc. (a)(e) | 124,600 | 1,116,416 | |
| Wright Medical Group NV (a) | 69,900 | 2,017,314 | |
| 175,400,476 | |||
| Health Care Providers & Services - 2.6% | |||
| Anthem, Inc. | 17,700 | 5,214,597 | |
| Guardant Health, Inc. | 62,300 | 5,855,577 | |
| HCA Holdings, Inc. | 46,700 | 6,234,917 | |
| Humana, Inc. | 128,600 | 38,162,050 | |
| Notre Dame Intermedica Participacoes SA | 221,900 | 2,540,917 | |
| OptiNose, Inc. (a)(e) | 197,024 | 1,058,019 | |
| UnitedHealth Group, Inc. | 382,400 | 95,221,424 | |
| 154,287,501 | |||
| Health Care Technology - 0.0% | |||
| Health Catalyst, Inc. | 17,200 | 761,100 | |
| Livongo Health, Inc. (e) | 13,300 | 588,525 | |
| Phreesia, Inc. | 56,000 | 1,530,480 | |
| 2,880,105 | |||
| Life Sciences Tools & Services - 0.5% | |||
| Adaptive Biotechnologies Corp. | 23,500 | 905,925 | |
| Avantor, Inc. | 135,900 | 2,390,481 | |
| IQVIA Holdings, Inc. (a) | 20,500 | 3,262,985 | |
| Thermo Fisher Scientific, Inc. | 75,700 | 21,020,376 | |
| 27,579,767 | |||
| Pharmaceuticals - 1.1% | |||
| Akcea Therapeutics, Inc. (a) | 199,800 | 4,321,674 | |
| AstraZeneca PLC sponsored ADR | 354,000 | 15,367,140 | |
| Bristol-Myers Squibb Co. | 412,400 | 18,314,684 | |
| Chiasma, Inc. warrants 12/16/24 (a) | 23,784 | 42,432 | |
| Corteva, Inc. | 44,900 | 1,324,550 | |
| Hansoh Pharmaceutical Group Co. Ltd. (f) | 496,000 | 1,332,959 | |
| Horizon Pharma PLC (a) | 44,100 | 1,097,649 | |
| Merck & Co., Inc. | 87,500 | 7,261,625 | |
| Morphic Holding, Inc. | 41,000 | 925,780 | |
| MyoKardia, Inc. (a) | 24,300 | 1,322,649 | |
| Nektar Therapeutics (a) | 166,300 | 4,732,898 | |
| TherapeuticsMD, Inc. (a)(e) | 219,300 | 471,495 | |
| Theravance Biopharma, Inc. (a) | 17,300 | 360,705 | |
| Turning Point Therapeutics, Inc. | 119,700 | 4,768,848 | |
| Zogenix, Inc. (a) | 30,000 | 1,445,100 | |
| 63,090,188 | |||
| TOTAL HEALTH CARE | 726,637,661 | ||
| INDUSTRIALS - 5.6% | |||
| Aerospace & Defense - 1.0% | |||
| Elbit Systems Ltd. | 12,800 | 2,042,880 | |
| General Dynamics Corp. | 23,100 | 4,295,214 | |
| Lockheed Martin Corp. | 70,500 | 25,532,985 | |
| Northrop Grumman Corp. | 1,800 | 622,026 | |
| Space Exploration Technologies Corp.: | |||
| Class A (a)(c)(d) | 22,703 | 4,858,442 | |
| Class C (a)(c)(d) | 686 | 146,804 | |
| The Boeing Co. | 66,500 | 22,688,470 | |
| 60,186,821 | |||
| Air Freight & Logistics - 0.3% | |||
| United Parcel Service, Inc. Class B | 134,400 | 16,056,768 | |
| XPO Logistics, Inc. (a)(e) | 18,400 | 1,241,632 | |
| 17,298,400 | |||
| Airlines - 0.3% | |||
| Spirit Airlines, Inc. (a) | 392,200 | 16,641,046 | |
| Commercial Services & Supplies - 0.1% | |||
| HomeServe PLC | 340,300 | 4,721,901 | |
| Tomra Systems ASA | 131,400 | 3,884,080 | |
| 8,605,981 | |||
| Construction & Engineering - 0.1% | |||
| Dycom Industries, Inc. (a) | 56,200 | 3,099,992 | |
| Electrical Equipment - 0.1% | |||
| Fortive Corp. | 66,050 | 5,023,103 | |
| Industrial Conglomerates - 0.9% | |||
| General Electric Co. | 4,037,100 | 42,187,695 | |
| Honeywell International, Inc. | 62,800 | 10,830,488 | |
| 53,018,183 | |||
| Machinery - 0.6% | |||
| AGCO Corp. | 16,200 | 1,247,400 | |
| Deere & Co. | 181,700 | 30,098,605 | |
| Rational AG | 3,100 | 2,113,927 | |
| 33,459,932 | |||
| Professional Services - 0.0% | |||
| TriNet Group, Inc. (a) | 16,500 | 1,213,410 | |
| Road & Rail - 2.2% | |||
| Canadian Pacific Railway Ltd. | 5,200 | 1,241,531 | |
| Knight-Swift Transportation Holdings, Inc. Class A | 354,100 | 12,690,944 | |
| Lyft, Inc. (e) | 93,400 | 5,685,258 | |
| Lyft, Inc. | 137,264 | 7,937,497 | |
| Uber Technologies, Inc. (e) | 1,200 | 50,568 | |
| Uber Technologies, Inc. | 2,600,925 | 98,642,682 | |
| 126,248,480 | |||
| TOTAL INDUSTRIALS | 324,795,348 | ||
| INFORMATION TECHNOLOGY - 33.3% | |||
| Communications Equipment - 0.5% | |||
| Arista Networks, Inc. (a) | 74,300 | 20,317,335 | |
| Cisco Systems, Inc. | 194,200 | 10,758,680 | |
| 31,076,015 | |||
| Electronic Equipment & Components - 0.0% | |||
| Coherent, Inc. (a) | 17,600 | 2,443,760 | |
| IPG Photonics Corp. (a) | 4,500 | 589,545 | |
| 3,033,305 | |||
| Internet Software & Services - 0.1% | |||
| Farfetch Ltd. Class A (e) | 102,200 | 2,054,220 | |
| Qudian, Inc. ADR (a) | 123,700 | 1,130,618 | |
| 3,184,838 | |||
| IT Services - 6.8% | |||
| Akamai Technologies, Inc. (a) | 154,800 | 13,642,524 | |
| Elastic NV (e) | 129,500 | 12,798,485 | |
| Endava PLC ADR (a) | 67,800 | 2,508,600 | |
| Fastly, Inc. Class A (e) | 12,700 | 275,590 | |
| Fiserv, Inc. (a) | 5,800 | 611,494 | |
| Fiverr International Ltd. (e) | 41,100 | 1,043,940 | |
| GMO Internet, Inc. | 34,000 | 556,926 | |
| GoDaddy, Inc. (a) | 61,000 | 4,476,180 | |
| Keywords Studios PLC | 26,000 | 525,817 | |
| MasterCard, Inc. Class A | 361,773�� | 98,499,935 | |
| MongoDB, Inc. Class A (a) | 13,900 | 1,990,758 | |
| Okta, Inc. (a) | 136,700 | 17,884,461 | |
| PagSeguro Digital Ltd. (a) | 108,100 | 4,700,188 | |
| PayPal Holdings, Inc. (a) | 476,500 | 52,605,600 | |
| Shopify, Inc. Class A (a) | 80,100 | 25,454,418 | |
| Square, Inc. (a) | 59,800 | 4,808,518 | |
| Twilio, Inc. Class A (a) | 69,800 | 9,709,878 | |
| Visa, Inc. Class A | 761,879 | 135,614,462 | |
| Wix.com Ltd. (a) | 61,500 | 9,133,980 | |
| 396,841,754 | |||
| Semiconductors & Semiconductor Equipment - 9.1% | |||
| Advanced Micro Devices, Inc. (a) | 631,900 | 19,241,355 | |
| Analog Devices, Inc. | 16,100 | 1,891,106 | |
| Applied Materials, Inc. | 118,400 | 5,845,408 | |
| ASML Holding NV | 20,300 | 4,523,043 | |
| First Solar, Inc. (a) | 13,363 | 861,780 | |
| Inphi Corp. (a) | 129,800 | 7,815,258 | |
| Lam Research Corp. | 121,700 | 25,387,837 | |
| Marvell Technology Group Ltd. | 5,725,200 | 150,343,752 | |
| Microchip Technology, Inc. | 52,400 | 4,947,608 | |
| Micron Technology, Inc. (a) | 792,900 | 35,593,281 | |
| Monolithic Power Systems, Inc. | 44,556 | 6,601,417 | |
| NVIDIA Corp. | 568,420 | 95,903,822 | |
| NXP Semiconductors NV | 701,384 | 72,516,092 | |
| Qorvo, Inc. (a) | 24,600 | 1,802,934 | |
| Qualcomm, Inc. | 1,223,773 | 89,531,233 | |
| Skyworks Solutions, Inc. | 21,200 | 1,807,936 | |
| Universal Display Corp. | 28,000 | 5,910,240 | |
| 530,524,102 | |||
| Software - 11.5% | |||
| Adobe, Inc. (a) | 207,920 | 62,138,971 | |
| Altair Engineering, Inc. Class A (a) | 24,100 | 1,002,801 | |
| Anaplan, Inc. | 13,600 | 774,384 | |
| Atlassian Corp. PLC (a) | 24,500 | 3,432,940 | |
| Atom Tickets LLC (a)(b)(c)(d) | 344,068 | 660,611 | |
| Blue Prism Group PLC (a) | 182,100 | 3,151,259 | |
| Ceridian HCM Holding, Inc. (a) | 11,500 | 613,065 | |
| Coupa Software, Inc. (a) | 35,700 | 4,844,847 | |
| Crowdstrike Holdings, Inc. (e) | 46,600 | 4,150,662 | |
| DocuSign, Inc. (a) | 58,900 | 3,046,308 | |
| HubSpot, Inc. (a) | 29,200 | 5,218,624 | |
| Intuit, Inc. | 37,800 | 10,482,318 | |
| Lightspeed POS, Inc. (a) | 136,800 | 4,108,768 | |
| LivePerson, Inc. (a) | 107,800 | 3,577,882 | |
| Medallia, Inc. (e) | 9,300 | 370,605 | |
| Microsoft Corp. | 2,307,200 | 314,402,144 | |
| Nutanix, Inc. Class A (a) | 133,244 | 3,024,639 | |
| Pagerduty, Inc. (e) | 10,000 | 442,000 | |
| Paycom Software, Inc. (a) | 52,000 | 12,519,000 | |
| RingCentral, Inc. (a) | 90,000 | 12,778,200 | |
| Salesforce.com, Inc. (a) | 887,167 | 137,067,302 | |
| ServiceNow, Inc. (a) | 71,800 | 19,916,602 | |
| Slack Technologies, Inc. Class A (a) | 93,500 | 3,124,770 | |
| Smartsheet, Inc. (a) | 53,900 | 2,690,149 | |
| Splunk, Inc. (a) | 35,200 | 4,762,912 | |
| StoneCo Ltd. Class A (a)(e) | 36,600 | 1,281,366 | |
| Synopsys, Inc. (a) | 5,400 | 716,904 | |
| Tanium, Inc. Class B (a)(c)(d) | 151,000 | 1,611,170 | |
| The Trade Desk, Inc. (a) | 62,000 | 16,325,220 | |
| Tufin Software Technologies Ltd. (e) | 53,400 | 1,165,722 | |
| Workday, Inc. Class A (a) | 114,100 | 22,817,718 | |
| Zendesk, Inc. (a) | 71,800 | 5,999,608 | |
| Zoom Video Communications, Inc. Class A (e) | 21,600 | 2,063,016 | |
| 670,282,487 | |||
| Technology Hardware, Storage & Peripherals - 5.3% | |||
| Apple, Inc. | 1,430,834 | 304,824,875 | |
| Western Digital Corp. | 140,700 | 7,582,323 | |
| 312,407,198 | |||
| TOTAL INFORMATION TECHNOLOGY | 1,947,349,699 | ||
| MATERIALS - 0.9% | |||
| Chemicals - 0.9% | |||
| CF Industries Holdings, Inc. | 334,700 | 16,587,732 | |
| Nutrien Ltd. | 407,800 | 22,358,242 | |
| The Chemours Co. LLC | 126,900 | 2,419,983 | |
| The Mosaic Co. | 494,100 | 12,446,379 | |
| 53,812,336 | |||
| REAL ESTATE - 0.2% | |||
| Equity Real Estate Investment Trusts (REITs) - 0.2% | |||
| Ant International Co. Ltd. Class C (a)(c)(d) | 1,065,661 | 8,429,378 | |
| Crown Castle International Corp. | 26,600 | 3,544,716 | |
| 11,974,094 | |||
| UTILITIES - 0.0% | |||
| Electric Utilities - 0.0% | |||
| ORSTED A/S (f) | 8,200 | 749,035 | |
| TOTAL COMMON STOCKS | |||
| (Cost $3,087,057,326) | 5,531,972,078 | ||
| Preferred Stocks - 5.2% | |||
| Convertible Preferred Stocks - 5.1% | |||
| CONSUMER DISCRETIONARY - 0.5% | |||
| Hotels, Restaurants & Leisure - 0.2% | |||
| MOD Super Fast Pizza Holdings LLC: | |||
| Series 3(a)(b)(c)(d) | 22,518 | 3,209,265 | |
| Series 4 (a)(b)(c)(d) | 2,055 | 292,879 | |
| Series 5 (a)(b)(c)(d) | 8,253 | 1,176,218 | |
| Neutron Holdings, Inc. Series C (a)(c)(d) | 12,405,800 | 3,008,407 | |
| Topgolf International, Inc. Series F (a)(c)(d) | 106,191 | 1,625,784 | |
| 9,312,553 | |||
| Internet & Direct Marketing Retail - 0.2% | |||
| Reddit, Inc. Series B (a)(c)(d) | 129,280 | 2,803,605 | |
| The Honest Co., Inc.: | |||
| Series C (a)(c)(d) | 167,087 | 6,457,913 | |
| Series D (a)(c)(d) | 27,712 | 1,268,101 | |
| Series E (a)(c)(d) | 143,059 | 2,803,956 | |
| 13,333,575 | |||
| Leisure Products - 0.1% | |||
| Peloton Interactive, Inc. Series E (a)(c)(d) | 377,252 | 8,027,923 | |
| Textiles, Apparel & Luxury Goods - 0.0% | |||
| Allbirds, Inc.: | |||
| Series A (c)(d) | 3,189 | 159,737 | |
| Series B (c)(d) | 560 | 28,050 | |
| Series C (c)(d) | 5,355 | 268,232 | |
| 456,019 | |||
| TOTAL CONSUMER DISCRETIONARY | 31,130,070 | ||
| CONSUMER STAPLES - 3.5% | |||
| Food & Staples Retailing - 0.2% | |||
| Sweetgreen, Inc. Series H (c)(d) | 725,140 | 10,913,357 | |
| Food Products - 0.0% | |||
| Agbiome LLC Series C (a)(c)(d) | 266,499 | 1,516,379 | |
| Tobacco - 3.3% | |||
| JUUL Labs, Inc.: | |||
| Series C (a)(c)(d) | 667,420 | 190,214,700 | |
| Series D (a)(c)(d) | 5,110 | 1,456,350 | |
| 191,671,050 | |||
| TOTAL CONSUMER STAPLES | 204,100,786 | ||
| FINANCIALS - 0.1% | |||
| Consumer Finance - 0.1% | |||
| Oportun Finance Corp. Series H (a)(c)(d) | 1,527,120 | 5,161,666 | |
| HEALTH CARE - 0.2% | |||
| Biotechnology - 0.1% | |||
| 23andMe, Inc. Series F (a)(c)(d) | 195,114 | 2,571,603 | |
| Generation Bio Series B (a)(c)(d) | 110,000 | 999,900 | |
| Immunocore Ltd. Series A (a)(c)(d) | 4,035 | 477,742 | |
| 4,049,245 | |||
| Health Care Providers & Services - 0.1% | |||
| Mulberry Health, Inc. Series A8 (a)(c)(d) | 813,618 | 6,004,501 | |
| Pharmaceuticals - 0.0% | |||
| Castle Creek Pharmaceutical Holdings, Inc. Series B (c)(d) | 1,069 | 449,718 | |
| TOTAL HEALTH CARE | 10,503,464 | ||
| INDUSTRIALS - 0.2% | |||
| Aerospace & Defense - 0.2% | |||
| Space Exploration Technologies Corp.: | |||
| Series G (a)(c)(d) | 42,650 | 9,127,100 | |
| Series H (a)(c)(d) | 6,348 | 1,358,472 | |
| 10,485,572 | |||
| Professional Services - 0.0% | |||
| YourPeople, Inc. Series C (a)(c)(d) | 253,888 | 969,852 | |
| TOTAL INDUSTRIALS | 11,455,424 | ||
| INFORMATION TECHNOLOGY - 0.6% | |||
| Internet Software & Services - 0.1% | |||
| ContextLogic, Inc. Series G (a)(c)(d) | 34,750 | 5,892,558 | |
| Starry, Inc. Series C (a)(c)(d) | 1,477,502 | 2,112,828 | |
| 8,005,386 | |||
| IT Services - 0.0% | |||
| AppNexus, Inc. Series E (Escrow) (a)(c)(d) | 307,049 | 296,302 | |
| Software - 0.5% | |||
| Cloudflare, Inc. Series D, 8.00% (a)(c)(d) | 428,680 | 8,483,577 | |
| Compass, Inc. Series E (a)(c)(d) | 13,605 | 2,149,779 | |
| Dataminr, Inc. Series D (a)(c)(d) | 115,901 | 2,343,518 | |
| Delphix Corp. Series D (a)(c)(d) | 242,876 | 2,195,599 | |
| Jet.Com, Inc. Series B1 (Escrow) (a)(c)(d) | 922,232 | 41,869 | |
| Malwarebytes Corp. Series B (a)(c)(d) | 329,349 | 6,603,447 | |
| Taboola.Com Ltd. Series E (a)(c)(d) | 289,958 | 7,185,159 | |
| 29,002,948 | |||
| TOTAL INFORMATION TECHNOLOGY | 37,304,636 | ||
| TOTAL CONVERTIBLE PREFERRED STOCKS | 299,656,046 | ||
| Nonconvertible Preferred Stocks - 0.1% | |||
| CONSUMER DISCRETIONARY - 0.0% | |||
| Textiles, Apparel & Luxury Goods - 0.0% | |||
| Allbirds, Inc. (c)(d) | 1,715 | 85,904 | |
| HEALTH CARE - 0.1% | |||
| Pharmaceuticals - 0.1% | |||
| Castle Creek Pharmaceutical Holdings, Inc. Series A4 (c)(d) | 9,636 | 4,053,769 | |
| TOTAL NONCONVERTIBLE PREFERRED STOCKS | 4,139,673 | ||
| TOTAL PREFERRED STOCKS | |||
| (Cost $79,211,211) | 303,795,719 | ||
| Money Market Funds - 2.8% | |||
| Fidelity Cash Central Fund 2.43% (g) | 20,527,305 | 20,531,411 | |
| Fidelity Securities Lending Cash Central Fund 2.43% (g)(h) | 144,297,114 | 144,311,544 | |
| TOTAL MONEY MARKET FUNDS | |||
| (Cost $164,842,955) | 164,842,955 | ||
| TOTAL INVESTMENT IN SECURITIES - 102.6% | |||
| (Cost $3,331,111,492) | 6,000,610,752 | ||
| NET OTHER ASSETS (LIABILITIES) - (2.6)% | (153,645,592) | ||
| NET ASSETS - 100% | $5,846,965,160 |
Legend
(a) Non-income producing
(b) Investment is owned by a wholly-owned subsidiary (Subsidiary) that is treated as a corporation for U.S. tax purposes.
(c) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $340,270,434 or 5.8% of net assets.
(d) Level 3 security
(e) Security or a portion of the security is on loan at period end.
(f) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $3,515,785 or 0.1% of net assets.
(g) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund’s Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(h) Investment made with cash collateral received from securities on loan.
Additional information on each restricted holding is as follows:
| Security | Acquisition Date | Acquisition Cost |
| 23andMe, Inc. Series F | 8/31/17 | $2,709,002 |
| Agbiome LLC Series C | 6/29/18 | $1,687,925 |
| Allbirds, Inc. | 10/9/18 | $443,128 |
| Allbirds, Inc. | 10/9/18 | $94,043 |
| Allbirds, Inc. Series A | 10/9/18 | $174,871 |
| Allbirds, Inc. Series B | 10/9/18 | $30,708 |
| Allbirds, Inc. Series C | 10/9/18 | $293,646 |
| Ant International Co. Ltd. Class C | 5/16/18 | $5,978,358 |
| AppNexus, Inc. Series E (Escrow) | 8/1/14 | $553,578 |
| Atom Tickets LLC | 8/15/17 | $1,999,998 |
| Castle Creek Pharmaceutical Holdings, Inc. Series A4 | 9/29/16 | $3,185,523 |
| Castle Creek Pharmaceutical Holdings, Inc. Series B | 10/9/18 | $440,268 |
| Cibus Corp. Series C | 2/16/18 | $1,525,763 |
| Cibus Corp. Series D | 5/10/19 | $498,300 |
| Cloudflare, Inc. Series D, 8.00% | 11/5/14 - 9/10/18 | $3,171,632 |
| Compass, Inc. Series E | 11/3/17 | $918,041 |
| ContextLogic, Inc. Series G | 10/24/17 | $4,675,022 |
| Dataminr, Inc. Series D | 3/6/15 | $1,477,738 |
| Delphix Corp. Series D | 7/10/15 | $2,185,884 |
| Generation Bio Series B | 2/21/18 | $1,006,027 |
| Immunocore Ltd. Series A | 7/27/15 | $759,303 |
| Jet.Com, Inc. Series B1 (Escrow) | 3/19/18 | $-- |
| JUUL Labs, Inc. | 11/21/17 | $-- |
| JUUL Labs, Inc. Series C | 5/22/15 - 7/6/18 | $-- |
| JUUL Labs, Inc. Series D | 6/25/18 - 7/6/18 | $-- |
| Malwarebytes Corp. Series B | 12/21/15 | $3,416,996 |
| MOD Super Fast Pizza Holdings LLC Series 3 | 11/3/16 | $3,084,966 |
| MOD Super Fast Pizza Holdings LLC Series 4 | 12/14/17 | $287,556 |
| MOD Super Fast Pizza Holdings LLC Series 5 | 5/15/19 | $1,176,218 |
| Mulberry Health, Inc. Series A8 | 1/20/16 | $5,495,786 |
| Neutron Holdings, Inc. Series C | 7/3/18 | $2,268,276 |
| Oportun Finance Corp. Series H | 2/6/15 | $4,348,169 |
| Peloton Interactive, Inc. Series E | 3/31/17 | $2,042,989 |
| Reddit, Inc. Series B | 7/26/17 | $1,835,324 |
| Space Exploration Technologies Corp. Class A | 4/6/17 - 9/11/17 | $2,534,625 |
| Space Exploration Technologies Corp. Class C | 9/11/17 | $92,610 |
| Space Exploration Technologies Corp. Series G | 1/20/15 | $3,303,669 |
| Space Exploration Technologies Corp. Series H | 8/4/17 | $856,980 |
| Starry, Inc. Series C | 12/8/17 | $1,362,257 |
| Sweetgreen, Inc. Series H | 11/9/18 | $9,455,826 |
| Taboola.Com Ltd. Series E | 12/22/14 | $3,022,928 |
| Tanium, Inc. Class B | 4/21/17 | $749,609 |
| The Honest Co., Inc. | 8/21/14 | $1,937,546 |
| The Honest Co., Inc. Series C | 8/21/14 | $4,520,923 |
| The Honest Co., Inc. Series D | 8/3/15 | $1,267,963 |
| The Honest Co., Inc. Series E | 9/28/17 | $2,804,643 |
| Topgolf International, Inc. Series F | 11/10/17 | $1,468,993 |
| Tory Burch LLC | 5/14/15 | $7,600,030 |
| WME Entertainment Parent, LLC Class A | 4/13/16 - 8/16/16 | $5,974,752 |
| YourPeople, Inc. Series C | 5/1/15 | $3,783,205 |
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 | $430,432 |
| Fidelity Securities Lending Cash Central Fund | 1,318,470 |
| Total | $1,748,902 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable. Amount for Fidelity Securities Lending Cash Central Fund 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.
Investment Valuation
The following is a summary of the inputs used, as of July 31, 2019, 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 below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| Valuation Inputs at Reporting Date: | ||||
| Description | Total | Level 1 | Level 2 | Level 3 |
| Investments in Securities: | ||||
| Equities: | ||||
| Communication Services | $958,174,473 | $920,798,924 | $27,332,637 | $10,042,912 |
| Consumer Discretionary | 1,318,797,390 | 1,260,603,887 | 18,660,676 | 39,532,827 |
| Consumer Staples | 344,131,451 | 138,582,378 | 750,037 | 204,799,036 |
| Energy | 31,497,301 | 16,048,551 | 15,448,750 | -- |
| Financials | 54,531,716 | 43,533,113 | 5,836,937 | 5,161,666 |
| Health Care | 741,194,894 | 716,584,108 | 8,343,258 | 16,267,528 |
| Industrials | 336,250,772 | 213,209,923 | 106,580,179 | 16,460,670 |
| Information Technology | 1,984,654,335 | 1,945,077,918 | -- | 39,576,417 |
| Materials | 53,812,336 | 53,812,336 | -- | -- |
| Real Estate | 11,974,094 | 3,544,716 | -- | 8,429,378 |
| Utilities | 749,035 | 749,035 | -- | -- |
| Money Market Funds | 164,842,955 | 164,842,955 | -- | -- |
| Total Investments in Securities: | $6,000,610,752 | $5,477,387,844 | $182,952,474 | $340,270,434 |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value:
| Investments in Securities: | |
| Equities - Consumer Staples | |
| Beginning Balance | $166,746,619 |
| Net Realized Gain (Loss) on Investment Securities | 222,446,143 |
| Net Unrealized Gain (Loss) on Investment Securities | 36,148,260 |
| Cost of Purchases | 9,455,826 |
| Proceeds of Sales | (229,997,812) |
| Amortization/Accretion | -- |
| Transfers into Level 3 | -- |
| Transfers out of Level 3 | -- |
| Ending Balance | $204,799,036 |
| The change in unrealized gain (loss) for the period attributable to Level 3 securities held at July 31, 2019 | $36,824,216 |
| Equities - Information Technology | |
| Beginning Balance | $149,759,371 |
| Net Realized Gain (Loss) on Investment Securities | (18,269) |
| Net Unrealized Gain (Loss) on Investment Securities | (58,093,939) |
| Cost of Purchases | 1,746,449 |
| Proceeds of Sales | (53,817,195) |
| Amortization/Accretion | -- |
| Transfers into Level 3 | -- |
| Transfers out of Level 3 | -- |
| Ending Balance | $39,576,417 |
| The change in unrealized gain (loss) for the period attributable to Level 3 securities held at July 31, 2019 | $4,758,451 |
| Other Investments in Securities | |
| Beginning Balance | $87,387,046 |
| Net Realized Gain (Loss) on Investment Securities | 53,949 |
| Net Unrealized Gain (Loss) on Investment Securities | 12,576,976 |
| Cost of Purchases | 8,394,358 |
| Proceeds of Sales | (12,697,348) |
| Amortization/Accretion | -- |
| Transfers into Level 3 | -- |
| Transfers out of Level 3 | -- |
| Ending Balance | $95,894,981 |
| The change in unrealized gain (loss) for the period attributable to Level 3 securities held at July 31, 2019 | $16,370,602 |
The information used in the above reconciliations represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliations are included in Net Gain (Loss) on the Fund's Statement of Operations.
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
| United States of America | 88.5% |
| Cayman Islands | 3.1% |
| Bermuda | 2.6% |
| Netherlands | 1.7% |
| Canada | 1.2% |
| Others (Individually Less Than 1%) | 2.9% |
| 100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
| July 31, 2019 | ||
| Assets | ||
| Investment in securities, at value (including securities loaned of $140,259,910) — See accompanying schedule: Unaffiliated issuers (cost $3,166,268,537) | $5,835,767,797 | |
| Fidelity Central Funds (cost $164,842,955) | 164,842,955 | |
| Total Investment in Securities (cost $3,331,111,492) | $6,000,610,752 | |
| Cash | 205,751 | |
| Restricted cash | 180,300 | |
| Foreign currency held at value (cost $3,126) | 3,120 | |
| Receivable for investments sold | 241,130,407 | |
| Receivable for fund shares sold | 2,882 | |
| Dividends receivable | 1,362,616 | |
| Distributions receivable from Fidelity Central Funds | 174,244 | |
| Other receivables | 4,355 | |
| Total assets | 6,243,674,427 | |
| Liabilities | ||
| Payable for investments purchased | $28,604,827 | |
| Payable for fund shares redeemed | 223,715,615 | |
| Other payables and accrued expenses | 88,063 | |
| Collateral on securities loaned | 144,300,762 | |
| Total liabilities | 396,709,267 | |
| Net Assets | $5,846,965,160 | |
| Net Assets consist of: | ||
| Paid in capital | $2,627,869,064 | |
| Total distributable earnings (loss) | 3,219,096,096 | |
| Net Assets | $5,846,965,160 | |
| Net Asset Value and Maximum Offering Price | ||
| Net Asset Value, offering price and redemption price per share ($5,846,965,160 ÷ 375,631,809 shares) | $15.57 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| Year ended July 31, 2019 | ||
| Investment Income | ||
| Dividends | $40,864,580 | |
| Income from Fidelity Central Funds (including $1,318,470 from security lending) | 1,748,902 | |
| Total income | 42,613,482 | |
| Expenses | ||
| Custodian fees and expenses | $177,773 | |
| Independent trustees' fees and expenses | 33,009 | |
| Legal | 656 | |
| Interest | 49,190 | |
| Commitment fees | 16,007 | |
| Total expenses | 276,635 | |
| Net investment income (loss) | 42,336,847 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | 703,274,512 | |
| Fidelity Central Funds | (132) | |
| Foreign currency transactions | (83,183) | |
| Total net realized gain (loss) | 703,191,197 | |
| Change in net unrealized appreciation (depreciation) on: | ||
| Investment securities: | ||
| Unaffiliated issuers (net of decrease in deferred foreign taxes of $930,518) | (62,323,470) | |
| Assets and liabilities in foreign currencies | (11,708) | |
| Total change in net unrealized appreciation (depreciation) | (62,335,178) | |
| Net gain (loss) | 640,856,019 | |
| Net increase (decrease) in net assets resulting from operations | $683,192,866 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Year ended July 31, 2019 | Year ended July 31, 2018 | |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $42,336,847 | $47,936,796 |
| Net realized gain (loss) | 703,191,197 | 672,796,190 |
| Change in net unrealized appreciation (depreciation) | (62,335,178) | 683,617,133 |
| Net increase (decrease) in net assets resulting from operations | 683,192,866 | 1,404,350,119 |
| Distributions to shareholders | (763,496,173) | – |
| Distributions to shareholders from net investment income | – | (30,301,164) |
| Distributions to shareholders from net realized gain | – | (594,846,797) |
| Total distributions | (763,496,173) | (625,147,961) |
| Share transactions - net increase (decrease) | (78,711,689) | (294,231,172) |
| Total increase (decrease) in net assets | (159,014,996) | 484,970,986 |
| Net Assets | ||
| Beginning of period | 6,005,980,156 | 5,521,009,170 |
| End of period | $5,846,965,160 | $6,005,980,156 |
| Other Information | ||
| Undistributed net investment income end of period | $27,489,767 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Series Blue Chip Growth Fund
| Years ended July 31, | 2019 | 2018 | 2017 | 2016 | 2015 |
| Selected Per–Share Data | |||||
| Net asset value, beginning of period | $15.90 | $14.07 | $11.47 | $13.36 | $11.18 |
| Income from Investment Operations | |||||
| Net investment income (loss)A | .10 | .12B | .03 | .02 | .03 |
| Net realized and unrealized gain (loss) | 1.58 | 3.28 | 2.74 | (.42) | 2.27 |
| Total from investment operations | 1.68 | 3.40 | 2.77 | (.40) | 2.30 |
| Distributions from net investment income | (.12) | (.07) | (.03) | (.02) | (.02) |
| Distributions from net realized gain | (1.89) | (1.50) | (.14) | (1.48) | (.10) |
| Total distributions | (2.01) | (1.57) | (.17) | (1.49)C | (.12) |
| Net asset value, end of period | $15.57 | $15.90 | $14.07 | $11.47 | $13.36 |
| Total ReturnD | 11.85% | 26.54% | 24.50% | (2.63)% | 20.74% |
| Ratios to Average Net AssetsE,F | |||||
| Expenses before reductions | - %G | - %G | .59% | .73% | .79% |
| Expenses net of fee waivers, if any | - %G | - %G | .59% | .73% | .78% |
| Expenses net of all reductions | - %G | - %G | .59% | .73% | .78% |
| Net investment income (loss) | .71% | .81%B | .26% | .17% | .20% |
| Supplemental Data | |||||
| Net assets, end of period (000 omitted) | $5,846,965 | $6,005,980 | $2,208,451 | $2,417,952 | $2,831,293 |
| Portfolio turnover rateH | 53% | 41% | 47% | 55% | 57% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividends 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 .71%.
C Total distributions of $1.49 per share is comprised of distributions from net investment income of $.015 and distributions from net realized gain of $1.477 per share.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
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 Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
G Amount represents less than .005%.
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended July 31, 2019
1. Organization.
Fidelity Series Blue Chip Growth Fund (the Fund) is a fund of Fidelity Securities Fund (the Trust) and is authorized to issue an unlimited number of shares. Shares of the Fund are only available for purchase by mutual funds for which Fidelity Management & Research Company (FMR) or an affiliate serves as an investment manager. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust.
Effective August 28, 2017, the Fund no longer offered Class F, and all outstanding shares of Class F were exchanged for shares of Series Blue Chip Growth.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date ranged from less than .005% to .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investments Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy. Equity securities, including restricted securities, for which observable inputs are not available are valued using alternate valuation approaches, including the market approach and the income approach and are categorized as Level 3 in the hierarchy. The market approach generally consists of using comparable market transactions while the income approach generally consists of using the net present value of estimated future cash flows, adjusted as appropriate for liquidity, credit, market and/or other risk factors.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
The following provides information on Level 3 securities held by the Fund that were valued at period end based on unobservable inputs. These amounts exclude valuations provided by a broker.
| Asset Type | Fair Value | Valuation Technique (s) | Unobservable Input | Amount or Range / Weighted Average | Impact to Valuation from an Increase in Input(a) |
| Equities | $340,270,434 | Market comparable | Enterprise value/Sales multiple (EV/S) | 1.0 - 15.9 / 5.6 | Increase |
| Transaction price | $9.15 - $411.85 / $322.25 | Increase | |||
| Discount rate | 6.0% - 75.0% / 24.8% | Decrease | |||
| Premium rate | 6.9% - 75.7% / 52.3% | Increase | |||
| Conversion ratio | 3.0 | Increase | |||
| Proxy discount | 0.6% - 26.8% / 9.1% | Decrease | |||
| Discount for lack of marketability | 10.0% - 25.0% / 13.8% | Decrease | |||
| Price/Earnings multiple (P/E) | 8.4 | Increase | |||
| Liquidity preference | $14.90 - $45.76 / $32.79 | Increase | |||
| Proxy premium | 0.2% | Increase | |||
| Recovery value | Recovery value | 0.0% - 1.0% / 0.9% | Increase | ||
| Market approach | Transaction price | $0.24 - $285.00 / $244.17 | Increase | ||
| Conversion ratio | 1.0 | Increase |
(a) Represents the directional change in the fair value of the Level 3 investments that could have resulted from an increase in the corresponding input as of period end. A decrease to the unobservable input would have had the opposite effect. Significant changes in these inputs may have resulted in a significantly higher or lower fair value measurement at period end.
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 July 31, 2019, as well as a roll forward of Level 3 investments, is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. 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 U.S. Federal income taxes is required. As of July 31, 2019, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests. The Fund is subject to a tax imposed on capital gains by certain countries in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, certain foreign taxes, passive foreign investment companies (PFIC), partnerships, and losses deferred due to wash sales.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
| Gross unrealized appreciation | $2,731,911,848 |
| Gross unrealized depreciation | (83,946,306) |
| Net unrealized appreciation (depreciation) | $2,647,965,542 |
| Tax Cost | $3,352,645,210 |
The tax-based components of distributable earnings as of period end were as follows:
| Undistributed ordinary income | $26,206,277 |
| Undistributed long-term capital gain | $544,921,639 |
| Net unrealized appreciation (depreciation) on securities and other investments | $2,647,968,181 |
The tax character of distributions paid was as follows:
| July 31, 2019 | July 31, 2018 | |
| Ordinary Income | $70,273,964 | $ 33,839,264 |
| Long-term Capital Gains | 693,222,209 | 591,308,697 |
| Total | $763,496,173 | $ 625,147,961 |
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
Consolidated Subsidiary. The Fund invests in certain investments through a wholly-owned subsidiary ("Subsidiary"), which may be subject to federal and state taxes upon disposition.
As of period end, the Fund held an investment of $24,133,336 in these Subsidiaries, representing .41% of the Fund's net assets. The financial statements have been consolidated and include accounts of the Fund and each Subsidiary. Accordingly, all inter-company transactions and balances have been eliminated.
Any cash held by the Subsidiaries is restricted as to its use and is presented as Restricted cash in the Statement of Assets and Liabilities.
New Rule Issuance. During August 2018, the U.S. Securities and Exchange Commission issued Final Rule Release No. 33-10532, Disclosure Update and Simplification. This Final Rule includes amendments specific to registered investment companies that are intended to eliminate overlap in disclosure requirements between Regulation S-X and GAAP. In accordance with these amendments, certain line-items in the Fund's financial statements have been combined or removed for the current period as outlined in the table below.
| Financial Statement | Current Line-Item Presentation (As Applicable) | Prior Line-Item Presentation (As Applicable) |
| Statement of Assets and Liabilities | Total distributable earnings (loss) | Undistributed/Distributions in excess of/Accumulated net investment income (loss) Accumulated/Undistributed net realized gain (loss) Net unrealized appreciation (depreciation) |
| Statement of Changes in Net Assets | N/A - removed | Undistributed/Distributions in excess of/Accumulated net investment income (loss) end of period |
| Statement of Changes in Net Assets | Distributions to shareholders | Distributions to shareholders from net investment income Distributions to shareholders from net realized gain |
| Distributions to Shareholders Note to Financial Statements | Distributions to shareholders | Distributions to shareholders from net investment income Distributions to shareholders from net realized gain |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $3,133,608,309 and $3,789,459,264, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund does not pay a management fee. Under the management contract, the investment adviser or an affiliate pays all ordinary operating expenses of the Fund, except custody fees, fees and expenses of the independent Trustees, and certain miscellaneous expenses such as proxy and shareholder meeting expenses.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $68,187 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with Fidelity Management & Research Company (FMR) or other affiliated entities of FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
| Borrower or Lender | Average Loan Balance | Weighted Average Interest Rate | Interest Expense |
| Borrower | $34,369,450 | 2.58% | $49,190 |
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
Other. During the period, the investment adviser reimbursed the Fund for certain losses in the amount of $14,619.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $16,007 and is reflected in Commitment fees on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. For equity securities, lending agents are used, including National Financial Services (NFS), an affiliate of the Fund. Pursuant to a securities lending agreement, NFS will receive a fee, which is capped at 9.9% of daily lending revenue, for its services as lending agent. The Fund may lend securities to certain qualified borrowers, including NFS. 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. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. The value of securities loaned to NFS, as affiliated borrower, at period end was $1,600,346. 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 $89,979 from securities loaned to NFS, as affiliated borrower.
8. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| Year ended July 31, 2019 | Year ended July 31, 2018 | |
| Distributions to shareholders | ||
| Series Blue Chip Growth | $763,496,173 | $– |
| Total | $763,496,173 | $– |
| From net investment income | ||
| Series Blue Chip Growth | $– | $30,301,164 |
| Total | $– | $30,301,164 |
| From net realized gain | ||
| Series Blue Chip Growth | $– | $594,846,797 |
| Total | $– | $594,846,797 |
9. Share Transactions.
Transactions for each class of shares were as follows:
| Shares | Shares | Dollars | Dollars | |
| Year ended July 31, 2019 | Year ended July 31, 2018 | Year ended July 31, 2019 | Year ended July 31, 2018 | |
| Series Blue Chip Growth | ||||
| Shares sold | 48,279,568 | 269,791,046 | $705,675,801 | $3,797,539,895 |
| Reinvestment of distributions | 52,744,114 | 46,816,082 | 763,496,173 | 625,147,961 |
| Shares redeemed | (103,007,932) | (95,983,048) | (1,547,883,663) | (1,414,376,373) |
| Net increase (decrease) | (1,984,250) | 220,624,080 | $(78,711,689) | $3,008,311,483 |
| Class F | ||||
| Shares sold | – | 1,143,506 | $– | $16,094,327 |
| Shares redeemed | – | (236,497,813) | – | (3,318,636,982) |
| Net increase (decrease) | – | (235,354,307) | $– | $(3,302,542,655) |
10. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
At the end of the period, mutual funds managed by the investment adviser or its affiliates were the owners of record of all of the outstanding shares of the Fund.
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Securities Fund and Shareholders of Fidelity Series Blue Chip Growth Fund:
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statement of assets and liabilities of Series Blue Chip Growth Fund (the "Fund"), a fund of Fidelity Securities Fund, including the schedule of investments, as of July 31, 2019, the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of July 31, 2019, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund's financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of July 31, 2019, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/ Deloitte & Touche LLP
Boston, Massachusetts
September 17, 2019
We have served as the auditor of one or more of the Fidelity investment companies since 1999.
Trustees and Officers
The Trustees, Members of the Advisory Board (if any), and officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Except for Jonathan Chiel, each of the Trustees oversees 298 funds. Mr. Chiel oversees 170 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the fund is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund’s Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Board Structure and Oversight Function. James C. Curvey is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Ned C. Lautenbach serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and other equity funds. The asset allocation funds may invest in Fidelity® funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Jonathan Chiel (1957)
Year of Election or Appointment: 2016
Trustee
Mr. Chiel also serves as Trustee of other Fidelity® funds. Mr. Chiel is Executive Vice President and General Counsel for FMR LLC (diversified financial services company, 2012-present). Previously, Mr. Chiel served as general counsel (2004-2012) and senior vice president and deputy general counsel (2000-2004) for John Hancock Financial Services; a partner with Choate, Hall & Stewart (1996-2000) (law firm); and an Assistant United States Attorney for the United States Attorney’s Office of the District of Massachusetts (1986-95), including Chief of the Criminal Division (1993-1995). Mr. Chiel is a director on the boards of the Boston Bar Foundation and the Maimonides School.
James C. Curvey (1935)
Year of Election or Appointment: 2007
Trustee
Chairman of the Board of Trustees
Mr. Curvey also serves as Trustee of other Fidelity® funds. Mr. Curvey is Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey is an Overseer Emeritus for the Boston Symphony Orchestra, a Director of Artis-Naples, and a Trustee of Brewster Academy in Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-2018), Director of Fidelity Investments Money Management, Inc. (investment adviser firm, 2009-2014) and a Director of FMR and FMR Co., Inc. (investment adviser firms, 2007-2014).
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), as a member of the Independent Directors Council (IDC) Governing Council (2010-2015), and as a member of the Board of Directors for The Brookville Center for Children’s Services, Inc. (2009-2017). Mr. Dirks is a member of the Finance Committee (2016-present) and Board of Directors (2017-present) and is Treasurer (2018-present) of the Asolo Repertory Theatre.
Donald F. Donahue (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Donahue also serves as a Trustee of other Fidelity® funds. Mr. Donahue is President and Chief Executive Officer of Miranda Partners, LLC (risk consulting for the financial services industry, 2012-present). Previously, Mr. Donahue served as a Member of the Advisory Board of certain Fidelity® funds (2015-2018) and Chief Executive Officer (2006-2012), Chief Operating Officer (2003-2006), and Managing Director, Customer Marketing and Development (1999-2003) of The Depository Trust & Clearing Corporation (financial markets infrastructure). Mr. Donahue serves as a Member (2007-present) and Co-Chairman (2016-present) of the Board of Directors of United Way of New York, Member of the Board of Directors of NYC Leadership Academy (2012-present) and Member of the Board of Advisors of Ripple Labs, Inc. (financial services, 2015-present). He also served as Chairman (2010-2012) and Member of the Board of Directors (2012-2013) of Omgeo, LLC (financial services), Treasurer of United Way of New York (2012-2016), and Member of the Board of Directors of XBRL US (financial services non-profit, 2009-2012) and the International Securities Services Association (2009-2012).
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2014-2017) and a member (2010-2017) of the Board of Directors of Dave & Buster’s Entertainment, Inc. (restaurant and entertainment complexes), as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association, and as a member of the Board of Directors for The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), Earth Fare, Inc. (retail grocery, 2010-2014), and The Western Union Company (global money transfer, 2006-2011).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as Chair (2018-present) and Member (2013-present) of the Board of Governors, State University System of Florida and is a member of the Council on Foreign Relations (1994-present). He is also a member and has most recently served as Chairman of the Board of Directors of Artis-Naples (2012-present). Previously, Mr. Lautenbach served as a member and then Lead Director of the Board of Directors of Eaton Corporation (diversified industrial, 1997-2016). He was also a Partner and Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007). In addition, Mr. Lautenbach also had a 30-year career with IBM (technology company) during which time he served as Senior Vice President and a member of the Corporate Executive Committee (1968-1998).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-2018).
Cornelia M. Small (1944)
Year of Election or Appointment: 2005
Trustee
Ms. Small also serves as Trustee of other Fidelity® funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.
Garnett A. Smith (1947)
Year of Election or Appointment: 2018
Trustee
Mr. Smith also serves as Trustee of other Fidelity® funds. Prior to Mr. Smith's retirement, he served as Chairman and Chief Executive Officer of Inbrand Corp. (manufacturer of personal absorbent products, 1990-1997). He also served as President (1986-1990) of Inbrand Corp. Prior to his employment with Inbrand Corp., he was employed by a retail fabric chain and North Carolina National Bank. In addition, Mr. Smith served as a Member of the Advisory Board of certain Fidelity® funds (2012-2013) and as a board member of the Jackson Hole Land Trust (2009-2012).
David M. Thomas (1949)
Year of Election or Appointment: 2008
Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present) and as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), a Director of Fortune Brands, Inc. (consumer products, 2000-2011), and a member of the Board of Trustees of the University of Florida (2013-2018).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Advisory Board Members and Officers:
Correspondence intended for a Member of the Advisory Board (if any) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235. Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Vicki L. Fuller (1957)
Year of Election or Appointment: 2018
Member of the Advisory Board
Ms. Fuller also serves as Member of the Advisory Board of other Fidelity® funds. Ms. Fuller serves as a member of the Board of Directors, Audit Committee, and Nominating and Governance Committee of The Williams Companies, Inc. (natural gas infrastructure, 2018-present). Previously, Ms. Fuller served as the Chief Investment Officer of the New York State Common Retirement Fund (2012-2018) and held a variety of positions at AllianceBernstein L.P. (global asset management, 1985-2012), including Managing Director (2006-2012) and Senior Vice President and Senior Portfolio Manager (2001-2006).
Peter S. Lynch (1944)
Year of Election or Appointment: 2003
Member of the Advisory Board
Mr. Lynch also serves as Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of FMR (investment adviser firm) and FMR Co., Inc. (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).
Michael E. Wiley (1950)
Year of Election or Appointment: 2018
Member of the Advisory Board
Mr. Wiley also serves as Trustee or Member of the Advisory Board of other Fidelity® funds. Mr. Wiley serves as a Director of High Point Resources (exploration and production, 2005-present). Previously, Mr. Wiley served as a Director of Andeavor Corporation (independent oil refiner and marketer, 2005-2018), a Director of Andeavor Logistics LP (natural resources logistics, 2015-2018), a Director of Post Oak Bank (privately-held bank, 2004-2018), a Director of Asia Pacific Exploration Consolidated (international oil and gas exploration and production, 2008-2013), a member of the Board of Trustees of the University of Tulsa (2000-2006; 2007-2010), a Senior Energy Advisor of Katzenbach Partners, LLC (consulting, 2006-2007), an Advisory Director of Riverstone Holdings (private investment), a Director of Spinnaker Exploration Company (exploration and production, 2001-2005) and Chairman, President, and CEO of Baker Hughes, Inc. (oilfield services, 2000-2004).
Elizabeth Paige Baumann (1968)
Year of Election or Appointment: 2017
Anti-Money Laundering (AML) Officer
Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer (2012-present) and Senior Vice President (2014-present) of FMR LLC (diversified financial services company) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as AML Officer of the funds (2012-2016), and Vice President (2007-2014) and Deputy Anti-Money Laundering Officer (2007-2012) of FMR LLC.
Craig S. Brown (1977)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Brown also serves as Assistant Treasurer of other funds. Mr. Brown is an employee of Fidelity Investments (2013-present).
John J. Burke III (1964)
Year of Election or Appointment: 2018
Chief Financial Officer
Mr. Burke also serves as Chief Financial Officer of other funds. Mr. Burke serves as Head of Investment Operations for Fidelity Fund and Investment Operations (2018-present) and is an employee of Fidelity Investments (1998-present). Previously Mr. Burke served as head of Asset Management Investment Operations (2012-2018).
William C. Coffey (1969)
Year of Election or Appointment: 2018
Secretary and Chief Legal Officer (CLO)
Mr. Coffey also serves as Secretary and CLO of other funds. Mr. Coffey serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2018-present); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2018-present); and CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2018-present). He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Assistant Secretary of certain funds (2009-2018) and as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Timothy M. Cohen (1969)
Year of Election or Appointment: 2018
Vice President
Mr. Cohen also serves as Vice President of other funds. Mr. Cohen serves as Executive Vice President of Fidelity SelectCo, LLC (2019-present), Co-Head of Equity (2018-present), a Director of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present), and is an employee of Fidelity Investments. Previously, Mr. Cohen served as Head of Global Equity Research (2016-2018), Chief Investment Officer - Equity and a Director of Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2013-2015) and as a Director of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2017).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds. Mr. Davis serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present), and is an employee of Fidelity Investments (2008-present). Previously, Mr. Deberghes served as President and Treasurer of certain Fidelity® funds (2013-2018). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). Previously, Mr. Deberghes served in other fund officer roles.
Laura M. Del Prato (1964)
Year of Election or Appointment: 2018
Assistant Treasurer
Ms. Del Prato also serves as an officer of other funds. Ms. Del Prato is an employee of Fidelity Investments (2017-present). Prior to joining Fidelity Investments, Ms. Del Prato served as a Managing Director and Treasurer of the JPMorgan Mutual Funds (2014-2017). Prior to JPMorgan, Ms. Del Prato served as a partner at Cohen Fund Audit Services (accounting firm, 2012-2013) and KPMG LLP (accounting firm, 2004-2012).
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2005-present). Previously, Mr. Hogan served as Assistant Treasurer of certain Fidelity® funds (2016-2018).
Pamela R. Holding (1964)
Year of Election or Appointment: 2018
Vice President
Ms. Holding also serves as Vice President of other funds. Ms. Holding serves as Executive Vice President of Fidelity SelectCo, LLC (2019-present), Co-Head of Equity (2018-present) and is an employee of Fidelity Investments (2013-present). Previously, Ms. Holding served as Chief Investment Officer of Fidelity Institutional Asset Management (2013-2018).
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight, serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. Ms. Smith serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), is an employee of Fidelity Investments (2009-present), and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Assistant Treasurer (2013-2018) and Deputy Treasurer (2013-2016) of certain Fidelity® funds.
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
Jim Wegmann (1979)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Wegmann also serves as Assistant Treasurer of other funds. Mr. Wegmann is an employee of Fidelity Investments (2011-present).
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs and (2) ongoing costs, including 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 (February 1, 2019 to July 31, 2019).
Actual Expenses
The first line of the accompanying table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. 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.
| Annualized Expense Ratio-A | Beginning Account Value February 1, 2019 | Ending Account Value July 31, 2019 | Expenses Paid During Period-B February 1, 2019 to July 31, 2019 | |
| Series Blue Chip Growth | --%C | |||
| Actual | $1,000.00 | $1,119.30 | $--D | |
| Hypothetical-E | $1,000.00 | $1,024.79 | $--D |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
C Amount represents less than .005%.
D Amount represents less than $.005.
E 5% return per year before expenses
Distributions (Unaudited)
The Board of Trustees of Fidelity Series Blue Chip Growth Fund voted to pay on September 16, 2019, to shareholders of record at the opening of business on September 13, 2019, a distribution of $1.465 per share derived from capital gains realized from sales of portfolio securities and a dividend of $.067 per share from net investment income.
The fund hereby designates as a capital gain dividend with respect to the taxable year ended July 31, 2019, $709,187,658, or, if subsequently determined to be different, the net capital gain of such year.
The fund designates 43% and 93% of the dividends distributed in September and December, respectively during the fiscal year as qualifying for the dividends–received deduction for corporate shareholders.
The fund designates 51% and 100% of the dividends distributed in September and December, respectively during the fiscal year as amounts which may be taken into account as a dividend for the purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code.
The fund will notify shareholders in January 2020 of amounts for use in preparing 2019 income tax returns.
XS1-ANN-0919
1.967985.105
Fidelity Flex℠ Funds Fidelity Flex℠ Large Cap Growth Fund Annual Report July 31, 2019 |
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Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of a fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a financial advisor, broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from a fund electronically, by contacting your financial intermediary. For Fidelity customers, visit Fidelity's web site or call Fidelity using the contact information listed below.
You may elect to receive all future reports in paper free of charge. If you wish to continue receiving paper copies of your shareholder reports, you may contact your financial intermediary or, if you are a Fidelity customer, visit Fidelity’s website, or call Fidelity at the applicable toll-free number listed below. Your election to receive reports in paper will apply to all funds held with the fund complex/your financial intermediary.
| Account Type | Website | Phone Number |
| Brokerage, Mutual Fund, or Annuity Contracts: | fidelity.com/mailpreferences | 1-800-343-3548 |
| Employer Provided Retirement Accounts: | netbenefits.fidelity.com/preferences (choose 'no' under Required Disclosures to continue to print) | 1-800-343-0860 |
| Advisor Sold Accounts Serviced Through Your Financial Intermediary: | Contact Your Financial Intermediary | Your Financial Intermediary's phone number |
| Advisor Sold Accounts Serviced by Fidelity: | institutional.fidelity.com | 1-877-208-0098 |
Contents
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-800-544-3455 (for managed account clients) or 1-800-835-5092 (for retirement plan participants) 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. © 2019 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT. Forms N-PORT are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-PORT 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.institutional.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.
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
| For the periods ended July 31, 2019 | Past 1 year | Life of fundA |
| Fidelity Flex℠ Large Cap Growth Fund | 8.66% | 19.66% |
A From March 8, 2017
$10,000 Over Life of Fund
Let's say hypothetically that $10,000 was invested in Fidelity Flex℠ Large Cap Growth Fund on March 8, 2017, when the fund started.
The chart shows how the value of your investment would have changed, and also shows how the Russell 1000® Growth Index performed over the same period.
| Period Ending Values | ||
| $15,376 | Fidelity Flex℠ Large Cap Growth Fund | |
| $14,739 | Russell 1000® Growth Index | |
Management's Discussion of Fund Performance
Market Recap: The U.S. equity bellwether S&P 500® index gained 7.99% for the 12 months ending July 31, 2019, beginning the new year on a high note after enduring a historically volatile final quarter of 2018. Upbeat company earnings/outlooks and signs the Federal Reserve may pause on rates boosted stocks to an all-time high on April 30. In May, however, volatility spiked and stocks returned -6.35% for the month amid the Fed’s decision to hold interest rates steady and signal that it had little appetite to adjust them any time soon, as well as retaliatory tariffs imposed on the U.S. by China. The downtrend was similar to late 2018, when many investors fled from risk assets on elevated concerns about future economic growth, global trade and tighter monetary policy. The bull market roared back in June, with the S&P 500® rising 7.05%, and recorded a series of all-time highs in a productive July (+1.44%). For the full 12 months, growth stocks outpaced value, while large-caps handily bested small-caps. By sector, information technology (+19%) led the way, boosted by continued strength in software & services (+26%), the market’s largest industry segment. Three defensive groups also stood out – real estate (+18%), utilities (+17%) and consumer staples (+15%) – followed by consumer discretionary (+10%) and communication services (+8%). In contrast, energy (-16%) was by far the weakest sector. Other notable laggards included materials (0%), financials (+3%), industrials (+4%) and health care (+4%).Comments from Portfolio Manager Sonu Kalra: For the fiscal year, the fund returned 8.66%, lagging the 10.82% result of the benchmark Russell 1000® Growth Index. Versus the index, security selection in consumer discretionary, industrials, financials and materials hampered the fund’s result. Positioning in communication services and energy also hurt, as did an underweighting in real estate. In terms of individual detractors, graphics chip designer Nvidia (-31%) hurt the most. Shares of Nvidia suffered as the firm grappled with excess inventory amid a slowdown in capital spending from some of the company’s hyperscale customers. Another notable relative detractor was Activision Blizzard (-33%). Shares of this video-gaming company were hurt by strong competition from blockbuster online game Fortnite. Conversely, choices in information technology, added value, including the fund’s outsized stake in Marvell Technology Group. Shares of Marvell, a producer of storage, communications and consumer semiconductor products, benefited from the firm’s strong exposure to the build-out of fifth-generation (5G) technology infrastructure, which is the next generation of cellular network connectivity. Elsewhere, security choices in health care and consumer staples also contributed on a relative basis, as did underweighting the industrials sector.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Investment Summary (Unaudited)
Top Ten Stocks as of July 31, 2019
| % of fund's net assets | |
| Amazon.com, Inc. | 7.2 |
| Alphabet, Inc. Class A | 7.1 |
| Apple, Inc. | 6.5 |
| Microsoft Corp. | 5.0 |
| Facebook, Inc. Class A | 4.4 |
| Salesforce.com, Inc. | 2.8 |
| Visa, Inc. Class A | 2.7 |
| Marvell Technology Group Ltd. | 2.6 |
| NVIDIA Corp. | 2.0 |
| MasterCard, Inc. Class A | 2.0 |
| 42.3 |
Top Five Market Sectors as of July 31, 2019
| % of fund's net assets | |
| Information Technology | 36.8 |
| Consumer Discretionary | 22.3 |
| Communication Services | 17.0 |
| Health Care | 12.0 |
| Industrials | 5.0 |
Asset Allocation (% of fund's net assets)
| As of July 31, 2019* | ||
| Stocks | 99.1% | |
| Convertible Securities | 0.7% | |
| Short-Term Investments and Net Other Assets (Liabilities) | 0.2% | |
* Foreign investments - 11.7%
Schedule of Investments July 31, 2019
Showing Percentage of Net Assets
| Common Stocks - 99.1% | |||
| Shares | Value | ||
| COMMUNICATION SERVICES - 17.0% | |||
| Entertainment - 3.9% | |||
| Activision Blizzard, Inc. | 2,985 | $145,489 | |
| Netflix, Inc. (a) | 1,150 | 371,439 | |
| Nintendo Co. Ltd. | 42 | 15,452 | |
| Nintendo Co. Ltd. ADR | 138 | 6,374 | |
| Take-Two Interactive Software, Inc. (a) | 228 | 27,935 | |
| The Walt Disney Co. | 2,648 | 378,690 | |
| 945,379 | |||
| Interactive Media & Services - 12.8% | |||
| Alphabet, Inc. Class A (a) | 1,427 | 1,738,371 | |
| CarGurus, Inc. Class A (a) | 553 | 20,610 | |
| Facebook, Inc. Class A (a) | 5,505 | 1,069,236 | |
| IAC/InterActiveCorp (a) | 65 | 15,538 | |
| Match Group, Inc. | 311 | 23,415 | |
| Snap, Inc. Class A (a) | 1,457 | 24,478 | |
| Tencent Holdings Ltd. | 2,820 | 131,392 | |
| Twitter, Inc. (a) | 2,235 | 94,563 | |
| Zillow Group, Inc. Class C (a) | 103 | 5,146 | |
| 3,122,749 | |||
| Media - 0.1% | |||
| Sinclair Broadcast Group, Inc. Class A | 285 | 14,321 | |
| Wireless Telecommunication Services - 0.2% | |||
| T-Mobile U.S., Inc. (a) | 638 | 50,868 | |
| TOTAL COMMUNICATION SERVICES | 4,133,317 | ||
| CONSUMER DISCRETIONARY - 22.2% | |||
| Auto Components - 0.0% | |||
| Aptiv PLC | 100 | 8,765 | |
| Automobiles - 1.2% | |||
| Tesla, Inc. (a) | 1,203 | 290,657 | |
| Diversified Consumer Services - 0.1% | |||
| Afya Ltd. | 388 | 11,221 | |
| Hotels, Restaurants & Leisure - 3.1% | |||
| Chipotle Mexican Grill, Inc. (a) | 25 | 19,888 | |
| Churchill Downs, Inc. | 64 | 7,658 | |
| Dunkin' Brands Group, Inc. | 30 | 2,405 | |
| Eldorado Resorts, Inc. (a) | 825 | 37,224 | |
| Hilton Grand Vacations, Inc. (a) | 809 | 26,454 | |
| McDonald's Corp. | 301 | 63,427 | |
| Planet Fitness, Inc. (a) | 868 | 68,277 | |
| PlayAGS, Inc. (a) | 914 | 17,147 | |
| Restaurant Brands International, Inc. | 767 | 56,488 | |
| Royal Caribbean Cruises Ltd. | 562 | 65,383 | |
| Sea Ltd. ADR (a) | 4,675 | 164,093 | |
| Shake Shack, Inc. Class A (a) | 436 | 32,552 | |
| Starbucks Corp. | 1,003 | 94,974 | |
| Vail Resorts, Inc. | 50 | 12,326 | |
| Wynn Resorts Ltd. | 567 | 73,750 | |
| 742,046 | |||
| Household Durables - 0.4% | |||
| D.R. Horton, Inc. | 515 | 23,654 | |
| Mohawk Industries, Inc. (a) | 359 | 44,764 | |
| Roku, Inc. Class A (a) | 316 | 32,652 | |
| 101,070 | |||
| Internet & Direct Marketing Retail - 10.2% | |||
| Alibaba Group Holding Ltd. sponsored ADR (a) | 1,334 | 230,929 | |
| Amazon.com, Inc. (a) | 943 | 1,760,359 | |
| Chewy, Inc. | 300 | 10,068 | |
| JD.com, Inc. sponsored ADR (a) | 2,750 | 82,253 | |
| MakeMyTrip Ltd. (a) | 185 | 4,734 | |
| Meituan Dianping Class B | 333 | 2,693 | |
| MercadoLibre, Inc. (a) | 97 | 60,278 | |
| Ocado Group PLC (a) | 343 | 5,195 | |
| Pinduoduo, Inc. ADR | 3,029 | 67,456 | |
| The Booking Holdings, Inc. (a) | 99 | 186,774 | |
| The RealReal, Inc. | 1,202 | 29,509 | |
| Wayfair LLC Class A (a) | 399 | 52,333 | |
| 2,492,581 | |||
| Multiline Retail - 0.9% | |||
| Dollar General Corp. | 60 | 8,041 | |
| Dollar Tree, Inc. (a) | 1,570 | 159,748 | |
| Dollarama, Inc. | 219 | 8,114 | |
| Ollie's Bargain Outlet Holdings, Inc. (a) | 116 | 9,824 | |
| Target Corp. | 354 | 30,586 | |
| 216,313 | |||
| Specialty Retail - 3.3% | |||
| American Eagle Outfitters, Inc. | 1,221 | 21,599 | |
| Burlington Stores, Inc. (a) | 346 | 62,540 | |
| Carvana Co. Class A (a) | 516 | 32,797 | |
| Five Below, Inc. (a) | 337 | 39,584 | |
| Floor & Decor Holdings, Inc. Class A (a) | 908 | 35,548 | |
| IAA Spinco, Inc. (a) | 61 | 2,852 | |
| John David Group PLC | 313 | 2,473 | |
| Lowe's Companies, Inc. | 2,533 | 256,846 | |
| The Children's Place Retail Stores, Inc. | 98 | 9,572 | |
| The Home Depot, Inc. | 1,150 | 245,744 | |
| TJX Companies, Inc. | 937 | 51,123 | |
| Ulta Beauty, Inc. (a) | 148 | 51,689 | |
| 812,367 | |||
| Textiles, Apparel & Luxury Goods - 3.0% | |||
| adidas AG | 301 | 96,480 | |
| Allbirds, Inc. (b)(c) | 43 | 2,154 | |
| Canada Goose Holdings, Inc. (a) | 257 | 12,036 | |
| Capri Holdings Ltd. (a) | 786 | 27,974 | |
| Crocs, Inc. (a) | 441 | 10,077 | |
| lululemon athletica, Inc. (a) | 1,022 | 195,294 | |
| LVMH Moet Hennessy Louis Vuitton SE | 75 | 30,979 | |
| Moncler SpA | 767 | 31,560 | |
| NIKE, Inc. Class B | 2,346 | 201,826 | |
| PVH Corp. | 675 | 60,021 | |
| Revolve Group, Inc. | 524 | 18,062 | |
| Tapestry, Inc. | 947 | 29,291 | |
| Under Armour, Inc. Class C (non-vtg.) (a) | 1,067 | 21,703 | |
| 737,457 | |||
| TOTAL CONSUMER DISCRETIONARY | 5,412,477 | ||
| CONSUMER STAPLES - 3.7% | |||
| Beverages - 0.4% | |||
| Constellation Brands, Inc. Class A (sub. vtg.) | 40 | 7,873 | |
| Fever-Tree Drinks PLC | 1,006 | 28,579 | |
| Keurig Dr. Pepper, Inc. | 825 | 23,216 | |
| Monster Beverage Corp. (a) | 473 | 30,494 | |
| Pernod Ricard SA | 8 | 1,409 | |
| 91,571 | |||
| Food & Staples Retailing - 1.2% | |||
| BJ's Wholesale Club Holdings, Inc. (a) | 1,988 | 46,837 | |
| Costco Wholesale Corp. | 726 | 200,107 | |
| Grocery Outlet Holding Corp. | 300 | 11,682 | |
| Walmart, Inc. | 241 | 26,602 | |
| 285,228 | |||
| Food Products - 0.2% | |||
| Darling International, Inc. (a) | 44 | 895 | |
| JBS SA | 461 | 3,008 | |
| Nestle SA (Reg. S) | 19 | 2,016 | |
| The Kraft Heinz Co. | 487 | 15,589 | |
| Tyson Foods, Inc. Class A | 295 | 23,453 | |
| 44,961 | |||
| Household Products - 0.0% | |||
| Energizer Holdings, Inc. | 194 | 8,164 | |
| MTG Co. Ltd. | 100 | 1,068 | |
| 9,232 | |||
| Personal Products - 0.4% | |||
| Coty, Inc. Class A | 3,373 | 36,799 | |
| Estee Lauder Companies, Inc. Class A | 339 | 62,440 | |
| 99,239 | |||
| Tobacco - 1.5% | |||
| Altria Group, Inc. | 6,630 | 312,074 | |
| JUUL Labs, Inc. Class A (a)(b)(c) | 217 | 61,845 | |
| 373,919 | |||
| TOTAL CONSUMER STAPLES | 904,150 | ||
| ENERGY - 0.6% | |||
| Oil, Gas & Consumable Fuels - 0.6% | |||
| Continental Resources, Inc. (a) | 567 | 21,075 | |
| Diamondback Energy, Inc. | 248 | 25,651 | |
| EOG Resources, Inc. | 94 | 8,070 | |
| Hess Corp. | 303 | 19,647 | |
| Pioneer Natural Resources Co. | 18 | 2,485 | |
| Reliance Industries Ltd. | 4,619 | 77,764 | |
| 154,692 | |||
| FINANCIALS - 1.0% | |||
| Banks - 0.4% | |||
| Bank of America Corp. | 2,766 | 84,861 | |
| HDFC Bank Ltd. sponsored ADR | 21 | 2,415 | |
| ICICI Bank Ltd. sponsored ADR | 338 | 4,127 | |
| IndusInd Bank Ltd. | 95 | 1,940 | |
| Kotak Mahindra Bank Ltd. | 515 | 11,323 | |
| 104,666 | |||
| Capital Markets - 0.1% | |||
| Edelweiss Financial Services Ltd. | 619 | 1,307 | |
| MSCI, Inc. | 42 | 9,544 | |
| 10,851 | |||
| Diversified Financial Services - 0.0% | |||
| GDS Holdings Ltd. ADR (a) | 168 | 6,918 | |
| Insurance - 0.3% | |||
| eHealth, Inc. (a) | 637 | 66,089 | |
| Thrifts & Mortgage Finance - 0.2% | |||
| Housing Development Finance Corp. Ltd. | 365 | 11,207 | |
| LendingTree, Inc. (a) | 108 | 34,834 | |
| 46,041 | |||
| TOTAL FINANCIALS | 234,565 | ||
| HEALTH CARE - 11.9% | |||
| Biotechnology - 3.9% | |||
| AbbVie, Inc. | 1,330 | 88,605 | |
| ACADIA Pharmaceuticals, Inc. (a) | 144 | 3,540 | |
| Acceleron Pharma, Inc. (a) | 186 | 8,121 | |
| Agios Pharmaceuticals, Inc. (a) | 39 | 1,876 | |
| Aimmune Therapeutics, Inc. (a) | 302 | 5,814 | |
| Alexion Pharmaceuticals, Inc. (a) | 1,783 | 201,996 | |
| Allakos, Inc. (a) | 251 | 8,727 | |
| Allogene Therapeutics, Inc. | 188 | 5,828 | |
| Alnylam Pharmaceuticals, Inc. (a) | 558 | 43,295 | |
| AnaptysBio, Inc. (a) | 98 | 5,264 | |
| Arena Pharmaceuticals, Inc. (a) | 212 | 13,288 | |
| Argenx SE ADR (a) | 33 | 4,635 | |
| Ascendis Pharma A/S sponsored ADR (a) | 271 | 31,371 | |
| BeiGene Ltd. | 331 | 3,398 | |
| BeiGene Ltd. ADR (a) | 79 | 10,850 | |
| bluebird bio, Inc. (a) | 194 | 25,459 | |
| Blueprint Medicines Corp. (a) | 89 | 8,913 | |
| Bridgebio Pharma, Inc. | 300 | 8,805 | |
| CareDx, Inc. (a) | 897 | 29,395 | |
| Cellectis SA sponsored ADR (a) | 40 | 582 | |
| Coherus BioSciences, Inc. (a) | 288 | 4,844 | |
| Crinetics Pharmaceuticals, Inc. (a) | 261 | 5,293 | |
| Denali Therapeutics, Inc. (a) | 377 | 8,049 | |
| Editas Medicine, Inc. (a) | 238 | 6,010 | |
| Epizyme, Inc. (a) | 139 | 1,843 | |
| Exact Sciences Corp. (a) | 111 | 12,777 | |
| FibroGen, Inc. (a) | 394 | 18,620 | |
| Global Blood Therapeutics, Inc. (a) | 517 | 28,332 | |
| Immunomedics, Inc. (a) | 434 | 6,402 | |
| Intellia Therapeutics, Inc. (a) | 317 | 5,738 | |
| Intercept Pharmaceuticals, Inc. (a) | 258 | 16,215 | |
| Ionis Pharmaceuticals, Inc. (a) | 36 | 2,371 | |
| Ironwood Pharmaceuticals, Inc. Class A (a) | 524 | 5,570 | |
| Liquidia Technologies, Inc. | 1,396 | 10,205 | |
| Natera, Inc. (a) | 510 | 14,066 | |
| Neurocrine Biosciences, Inc. (a) | 390 | 37,592 | |
| Principia Biopharma, Inc. | 201 | 7,465 | |
| Repligen Corp. (a) | 29 | 2,737 | |
| Rubius Therapeutics, Inc. | 66 | 878 | |
| Sage Therapeutics, Inc. (a) | 407 | 65,258 | |
| Sarepta Therapeutics, Inc. (a) | 380 | 56,563 | |
| Scholar Rock Holding Corp. (a) | 89 | 1,094 | |
| The Medicines Company (a) | 323 | 11,576 | |
| TransMedics Group, Inc. | 309 | 7,333 | |
| Vertex Pharmaceuticals, Inc. (a) | 456 | 75,979 | |
| Xencor, Inc. (a) | 200 | 8,804 | |
| Zai Lab Ltd. ADR (a) | 445 | 14,293 | |
| 945,669 | |||
| Health Care Equipment & Supplies - 3.3% | |||
| Alcon, Inc. (a) | 499 | 29,316 | |
| Atricure, Inc. (a) | 108 | 3,465 | |
| Axonics Modulation Technologies, Inc. (a) | 188 | 6,900 | |
| Boston Scientific Corp. (a) | 6,830 | 290,002 | |
| Danaher Corp. | 361 | 50,721 | |
| DexCom, Inc. (a) | 137 | 21,491 | |
| Edwards Lifesciences Corp. (a) | 36 | 7,663 | |
| Establishment Labs Holdings, Inc. (a) | 472 | 11,781 | |
| Inspire Medical Systems, Inc. (a) | 43 | 2,908 | |
| Insulet Corp. (a) | 243 | 29,874 | |
| Intuitive Surgical, Inc. (a) | 436 | 226,506 | |
| Koninklijke Philips Electronics NV | 387 | 18,154 | |
| Koninklijke Philips Electronics NV (depositary receipt) (NY Reg.) | 115 | 5,381 | |
| Novocure Ltd. (a) | 148 | 12,317 | |
| Quanterix Corp. (a) | 83 | 2,571 | |
| Shockwave Medical, Inc. (a) | 751 | 36,739 | |
| Silk Road Medical, Inc. | 300 | 12,987 | |
| Tandem Diabetes Care, Inc. (a) | 360 | 22,835 | |
| ViewRay, Inc. (a) | 307 | 2,751 | |
| Wright Medical Group NV (a) | 176 | 5,079 | |
| 799,441 | |||
| Health Care Providers & Services - 2.9% | |||
| Anthem, Inc. | 75 | 22,096 | |
| Guardant Health, Inc. | 304 | 28,573 | |
| HCA Holdings, Inc. | 231 | 30,841 | |
| Humana, Inc. | 562 | 166,774 | |
| Notre Dame Intermedica Participacoes SA | 663 | 7,592 | |
| OptiNose, Inc. (a) | 764 | 4,103 | |
| UnitedHealth Group, Inc. | 1,722 | 428,795 | |
| 688,774 | |||
| Health Care Technology - 0.1% | |||
| Health Catalyst, Inc. | 200 | 8,850 | |
| Livongo Health, Inc. | 200 | 8,850 | |
| Phreesia, Inc. | 399 | 10,905 | |
| 28,605 | |||
| Life Sciences Tools & Services - 0.7% | |||
| Adaptive Biotechnologies Corp. | 300 | 11,565 | |
| Avantor, Inc. | 541 | 9,516 | |
| IQVIA Holdings, Inc. (a) | 77 | 12,256 | |
| Thermo Fisher Scientific, Inc. | 502 | 139,395 | |
| 172,732 | |||
| Pharmaceuticals - 1.0% | |||
| Akcea Therapeutics, Inc. (a) | 417 | 9,020 | |
| AstraZeneca PLC sponsored ADR | 1,421 | 61,686 | |
| Bristol-Myers Squibb Co. | 1,817 | 80,693 | |
| Corteva, Inc. | 185 | 5,458 | |
| Hansoh Pharmaceutical Group Co. Ltd. (d) | 2,534 | 6,810 | |
| Horizon Pharma PLC (a) | 152 | 3,783 | |
| Merck & Co., Inc. | 369 | 30,623 | |
| Morphic Holding, Inc. | 168 | 3,793 | |
| MyoKardia, Inc. (a) | 53 | 2,885 | |
| Nektar Therapeutics (a) | 664 | 18,897 | |
| TherapeuticsMD, Inc. (a) | 551 | 1,185 | |
| Theravance Biopharma, Inc. (a) | 20 | 417 | |
| Turning Point Therapeutics, Inc. | 482 | 19,203 | |
| Zogenix, Inc. (a) | 59 | 2,842 | |
| 247,295 | |||
| TOTAL HEALTH CARE | 2,882,516 | ||
| INDUSTRIALS - 5.0% | |||
| Aerospace & Defense - 1.5% | |||
| Elbit Systems Ltd. | 27 | 4,309 | |
| General Dynamics Corp. | 95 | 17,664 | |
| Lockheed Martin Corp. | 440 | 159,355 | |
| Northrop Grumman Corp. | 7 | 2,419 | |
| The Boeing Co. | 560 | 191,061 | |
| 374,808 | |||
| Air Freight & Logistics - 0.3% | |||
| United Parcel Service, Inc. Class B | 540 | 64,514 | |
| XPO Logistics, Inc. (a) | 74 | 4,994 | |
| 69,508 | |||
| Airlines - 0.3% | |||
| Spirit Airlines, Inc. (a) | 1,509 | 64,027 | |
| Commercial Services & Supplies - 0.1% | |||
| HomeServe PLC | 927 | 12,863 | |
| Tomra Systems ASA | 354 | 10,464 | |
| 23,327 | |||
| Construction & Engineering - 0.0% | |||
| Dycom Industries, Inc. (a) | 156 | 8,605 | |
| Electrical Equipment - 0.1% | |||
| Fortive Corp. | 351 | 26,694 | |
| Industrial Conglomerates - 1.0% | |||
| General Electric Co. | 16,236 | 169,666 | |
| Honeywell International, Inc. | 348 | 60,016 | |
| 229,682 | |||
| Machinery - 0.6% | |||
| AGCO Corp. | 65 | 5,005 | |
| Deere & Co. | 868 | 143,784 | |
| Rational AG | 8 | 5,455 | |
| 154,244 | |||
| Professional Services - 0.0% | |||
| TriNet Group, Inc. (a) | 66 | 4,854 | |
| Road & Rail - 1.1% | |||
| Canadian Pacific Railway Ltd. | 22 | 5,253 | |
| Knight-Swift Transportation Holdings, Inc. Class A | 1,487 | 53,294 | |
| Lyft, Inc. | 2,805 | 162,203 | |
| Lyft, Inc. | 366 | 22,278 | |
| Uber Technologies, Inc. | 277 | 11,673 | |
| 254,701 | |||
| TOTAL INDUSTRIALS | 1,210,450 | ||
| INFORMATION TECHNOLOGY - 36.6% | |||
| Communications Equipment - 0.6% | |||
| Arista Networks, Inc. (a) | 358 | 97,895 | |
| Cisco Systems, Inc. | 814 | 45,096 | |
| 142,991 | |||
| Electronic Equipment & Components - 0.0% | |||
| Coherent, Inc. (a) | 70 | 9,720 | |
| IPG Photonics Corp. (a) | 18 | 2,358 | |
| 12,078 | |||
| Internet Software & Services - 0.1% | |||
| Farfetch Ltd. Class A | 401 | 8,060 | |
| Qudian, Inc. ADR (a) | 562 | 5,137 | |
| 13,197 | |||
| IT Services - 7.4% | |||
| Akamai Technologies, Inc. (a) | 730 | 64,335 | |
| Elastic NV | 528 | 52,182 | |
| Endava PLC ADR (a) | 331 | 12,247 | |
| Fastly, Inc. Class A | 400 | 8,680 | |
| Fiserv, Inc. (a) | 23 | 2,425 | |
| Fiverr International Ltd. | 300 | 7,620 | |
| GMO Internet, Inc. | 143 | 2,342 | |
| GoDaddy, Inc. (a) | 281 | 20,620 | |
| Keywords Studios PLC | 63 | 1,274 | |
| MasterCard, Inc. Class A | 1,750 | 476,473 | |
| MongoDB, Inc. Class A (a) | 57 | 8,164 | |
| Okta, Inc. (a) | 529 | 69,209 | |
| PagSeguro Digital Ltd. (a) | 436 | 18,957 | |
| PayPal Holdings, Inc. (a) | 2,335 | 257,784 | |
| Shopify, Inc. Class A (a) | 151 | 47,985 | |
| Square, Inc. (a) | 253 | 20,344 | |
| Twilio, Inc. Class A (a) | 261 | 36,308 | |
| Visa, Inc. Class A | 3,673 | 653,794 | |
| Wix.com Ltd. (a) | 282 | 41,883 | |
| 1,802,626 | |||
| Semiconductors & Semiconductor Equipment - 9.7% | |||
| Advanced Micro Devices, Inc. (a) | 2,265 | 68,969 | |
| Analog Devices, Inc. | 66 | 7,752 | |
| Applied Materials, Inc. | 521 | 25,722 | |
| ASML Holding NV | 71 | 15,820 | |
| Inphi Corp. (a) | 572 | 34,440 | |
| Lam Research Corp. | 528 | 110,146 | |
| Marvell Technology Group Ltd. | 23,989 | 629,951 | |
| Microchip Technology, Inc. | 212 | 20,017 | |
| Micron Technology, Inc. (a) | 2,878 | 129,193 | |
| Monolithic Power Systems, Inc. | 256 | 37,929 | |
| NVIDIA Corp. | 2,880 | 485,914 | |
| NXP Semiconductors NV | 3,430 | 354,628 | |
| Qorvo, Inc. (a) | 99 | 7,256 | |
| Qualcomm, Inc. | 5,327 | 389,723 | |
| Skyworks Solutions, Inc. | 85 | 7,249 | |
| Universal Display Corp. | 111 | 23,430 | |
| 2,348,139 | |||
| Software - 12.2% | |||
| Adobe, Inc. (a) | 965 | 288,400 | |
| Altair Engineering, Inc. Class A (a) | 312 | 12,982 | |
| Anaplan, Inc. | 55 | 3,132 | |
| Atlassian Corp. PLC (a) | 100 | 14,012 | |
| Blue Prism Group PLC (a) | 716 | 12,390 | |
| Ceridian HCM Holding, Inc. (a) | 46 | 2,452 | |
| Coupa Software, Inc. (a) | 141 | 19,135 | |
| Crowdstrike Holdings, Inc. | 347 | 30,907 | |
| DocuSign, Inc. (a) | 298 | 15,413 | |
| HubSpot, Inc. (a) | 130 | 23,234 | |
| Intuit, Inc. | 186 | 51,580 | |
| Lightspeed POS, Inc. (a) | 872 | 26,190 | |
| LivePerson, Inc. (a) | 441 | 14,637 | |
| Medallia, Inc. | 300 | 11,955 | |
| Microsoft Corp. | 8,980 | 1,223,705 | |
| Pagerduty, Inc. | 300 | 13,260 | |
| Paycom Software, Inc. (a) | 300 | 72,225 | |
| RingCentral, Inc. (a) | 383 | 54,378 | |
| Salesforce.com, Inc. (a) | 4,435 | 685,208 | |
| ServiceNow, Inc. (a) | 305 | 84,604 | |
| Slack Technologies, Inc. Class A (a) | 882 | 29,476 | |
| Smartsheet, Inc. (a) | 201 | 10,032 | |
| Splunk, Inc. (a) | 134 | 18,132 | |
| StoneCo Ltd. Class A (a) | 150 | 5,252 | |
| Synopsys, Inc. (a) | 21 | 2,788 | |
| Tanium, Inc. Class B (a)(b)(c) | 131 | 1,398 | |
| The Trade Desk, Inc. (a) | 298 | 78,466 | |
| Tufin Software Technologies Ltd. | 366 | 7,990 | |
| Workday, Inc. Class A (a) | 562 | 112,389 | |
| Zendesk, Inc. (a) | 251 | 20,974 | |
| Zoom Video Communications, Inc. Class A | 241 | 23,018 | |
| 2,969,714 | |||
| Technology Hardware, Storage & Peripherals - 6.6% | |||
| Apple, Inc. | 7,460 | 1,589,278 | |
| Western Digital Corp. | 521 | 28,077 | |
| 1,617,355 | |||
| TOTAL INFORMATION TECHNOLOGY | 8,906,100 | ||
| MATERIALS - 1.0% | |||
| Chemicals - 1.0% | |||
| CF Industries Holdings, Inc. | 1,829 | 90,645 | |
| Nutrien Ltd. | 1,566 | 85,858 | |
| The Chemours Co. LLC | 510 | 9,726 | |
| The Mosaic Co. | 2,031 | 51,161 | |
| 237,390 | |||
| REAL ESTATE - 0.1% | |||
| Equity Real Estate Investment Trusts (REITs) - 0.1% | |||
| Ant International Co. Ltd. Class C (a)(b)(c) | 2,450 | 19,379 | |
| Crown Castle International Corp. | 106 | 14,126 | |
| 33,505 | |||
| UTILITIES - 0.0% | |||
| Electric Utilities - 0.0% | |||
| ORSTED A/S (d) | 31 | 2,832 | |
| TOTAL COMMON STOCKS | |||
| (Cost $19,066,174) | 24,111,994 | ||
| Preferred Stocks - 0.7% | |||
| Convertible Preferred Stocks - 0.7% | |||
| CONSUMER DISCRETIONARY - 0.1% | |||
| Hotels, Restaurants & Leisure - 0.1% | |||
| Neutron Holdings, Inc.: | |||
| Series C (a)(b)(c) | 26,100 | 6,329 | |
| Series D (b)(c) | 58,561 | 14,201 | |
| Topgolf International, Inc. Series F (a)(b)(c) | 217 | 3,322 | |
| 23,852 | |||
| Internet & Direct Marketing Retail - 0.0% | |||
| The Honest Co., Inc. Series E (a)(b)(c) | 282 | 5,527 | |
| Textiles, Apparel & Luxury Goods - 0.0% | |||
| Allbirds, Inc.: | |||
| Series A (b)(c) | 17 | 852 | |
| Series B (b)(c) | 3 | 150 | |
| Series C (b)(c) | 28 | 1,403 | |
| 2,405 | |||
| TOTAL CONSUMER DISCRETIONARY | 31,784 | ||
| CONSUMER STAPLES - 0.3% | |||
| Food & Staples Retailing - 0.2% | |||
| Roofoods Ltd. Series F (a)(b)(c) | 17 | 7,104 | |
| Sweetgreen, Inc. Series H (b)(c) | 1,969 | 29,633 | |
| 36,737 | |||
| Food Products - 0.0% | |||
| Agbiome LLC Series C (a)(b)(c) | 557 | 3,169 | |
| Tobacco - 0.1% | |||
| JUUL Labs, Inc. Series E (a)(b)(c) | 127 | 36,195 | |
| TOTAL CONSUMER STAPLES | 76,101 | ||
| HEALTH CARE - 0.1% | |||
| Biotechnology - 0.1% | |||
| 23andMe, Inc. Series F (a)(b)(c) | 339 | 4,468 | |
| Generation Bio Series B (a)(b)(c) | 200 | 1,818 | |
| Nuvation Bio, Inc. Series A (b)(c)(e) | 7,400 | 5,708 | |
| 11,994 | |||
| INFORMATION TECHNOLOGY - 0.2% | |||
| Internet Software & Services - 0.1% | |||
| ContextLogic, Inc. Series G (a)(b)(c) | 67 | 11,361 | |
| Starry, Inc.: | |||
| Series C (a)(b)(c) | 3,181 | 4,549 | |
| Series D (b)(c) | 3,368 | 4,816 | |
| 20,726 | |||
| Software - 0.1% | |||
| Bird Rides, Inc. Series C (b)(c) | 1,434 | 16,843 | |
| Cloudflare, Inc. Series D, 8.00% (a)(b)(c) | 300 | 5,937 | |
| Compass, Inc. Series E (a)(b)(c) | 28 | 4,424 | |
| UiPath, Inc.: | |||
| Series A1 (b)(c) | 91 | 3,581 | |
| Series B1 (b)(c) | 5 | 197 | |
| Series B2 (b)(c) | 23 | 905 | |
| 31,887 | |||
| TOTAL INFORMATION TECHNOLOGY | 52,613 | ||
| REAL ESTATE - 0.0% | |||
| Real Estate Management & Development - 0.0% | |||
| Sonder Canada, Inc. Series D (b)(c) | 528 | 5,542 | |
| TOTAL CONVERTIBLE PREFERRED STOCKS | 178,034 | ||
| Nonconvertible Preferred Stocks - 0.0% | |||
| CONSUMER DISCRETIONARY - 0.0% | |||
| Textiles, Apparel & Luxury Goods - 0.0% | |||
| Allbirds, Inc. (b)(c) | 9 | 451 | |
| TOTAL PREFERRED STOCKS | |||
| (Cost $130,373) | 178,485 | ||
| Money Market Funds - 0.1% | |||
| Fidelity Cash Central Fund 2.43% (f) | |||
| (Cost $29,712) | 29,706 | 29,712 | |
| TOTAL INVESTMENT IN SECURITIES - 99.9% | |||
| (Cost $19,226,259) | 24,320,191 | ||
| NET OTHER ASSETS (LIABILITIES) - 0.1% | 12,583 | ||
| NET ASSETS - 100% | $24,332,774 |
Legend
(a) Non-income producing
(b) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $263,261 or 1.1% of net assets.
(c) Level 3 security
(d) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $9,642 or 0.0% of net assets.
(e) Security or a portion of the security purchased on a delayed delivery or when-issued basis.
(f) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
Additional information on each restricted holding is as follows:
| Security | Acquisition Date | Acquisition Cost |
| 23andMe, Inc. Series F | 8/31/17 | $4,707 |
| Agbiome LLC Series C | 6/29/18 | $3,528 |
| Allbirds, Inc. | 10/9/18 | $494 |
| Allbirds, Inc. | 10/9/18 | $2,358 |
| Allbirds, Inc. Series A | 10/9/18 | $932 |
| Allbirds, Inc. Series B | 10/9/18 | $165 |
| Allbirds, Inc. Series C | 10/9/18 | $1,535 |
| Ant International Co. Ltd. Class C | 5/16/18 | $13,745 |
| Bird Rides, Inc. Series C | 12/21/18 | $16,843 |
| Cloudflare, Inc. Series D, 8.00% | 9/10/18 | $3,300 |
| Compass, Inc. Series E | 11/3/17 | $1,889 |
| ContextLogic, Inc. Series G | 10/24/17 | $9,014 |
| Generation Bio Series B | 2/21/18 | $1,829 |
| JUUL Labs, Inc. Class A | 12/20/17 - 7/6/18 | $5,804 |
| JUUL Labs, Inc. Series E | 12/20/17 - 7/6/18 | $3,263 |
| Neutron Holdings, Inc. Series C | 7/3/18 | $4,772 |
| Neutron Holdings, Inc. Series D | 1/25/19 | $14,201 |
| Nuvation Bio, Inc. Series A | 6/17/19 | $5,708 |
| Roofoods Ltd. Series F | 9/12/17 | $6,011 |
| Sonder Canada, Inc. Series D | 5/21/19 | $5,542 |
| Starry, Inc. Series C | 12/8/17 | $2,933 |
| Starry, Inc. Series D | 3/6/19 | $4,816 |
| Sweetgreen, Inc. Series H | 11/9/18 | $25,676 |
| Tanium, Inc. Class B | 4/21/17 | $650 |
| The Honest Co., Inc. Series E | 9/28/17 | $5,529 |
| Topgolf International, Inc. Series F | 11/10/17 | $3,002 |
| UiPath, Inc. Series A1 | 6/14/19 | $3,581 |
| UiPath, Inc. Series B1 | 6/14/19 | $197 |
| UiPath, Inc. Series B2 | 6/14/19 | $905 |
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
| Fund | Income earned |
| Fidelity Cash Central Fund | $7,432 |
| Total | $7,432 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable.
Investment Valuation
The following is a summary of the inputs used, as of July 31, 2019, 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 below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| Valuation Inputs at Reporting Date: | ||||
| Description | Total | Level 1 | Level 2 | Level 3 |
| Investments in Securities: | ||||
| Equities: | ||||
| Communication Services | $4,133,317 | $3,986,473 | $146,844 | $-- |
| Consumer Discretionary | 5,444,712 | 5,376,651 | 33,672 | 34,389 |
| Consumer Staples | 980,251 | 840,289 | 2,016 | 137,946 |
| Energy | 154,692 | 76,928 | 77,764 | -- |
| Financials | 234,565 | 208,788 | 25,777 | -- |
| Health Care | 2,894,510 | 2,854,154 | 28,362 | 11,994 |
| Industrials | 1,210,450 | 1,048,247 | 162,203 | -- |
| Information Technology | 8,958,713 | 8,904,702 | -- | 54,011 |
| Materials | 237,390 | 237,390 | -- | -- |
| Real Estate | 39,047 | 14,126 | -- | 24,921 |
| Utilities | 2,832 | 2,832 | -- | -- |
| Money Market Funds | 29,712 | 29,712 | -- | -- |
| Total Investments in Securities: | $24,320,191 | $23,580,292 | $476,638 | $263,261 |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value:
| Investments in Securities: | |
| Beginning Balance | $252,593 |
| Net Realized Gain (Loss) on Investment Securities | -- |
| Net Unrealized Gain (Loss) on Investment Securities | 89,621 |
| Cost of Purchases | 95,321 |
| Proceeds of Sales | (174,274) |
| Amortization/Accretion | -- |
| Transfers into Level 3 | -- |
| Transfers out of Level 3 | -- |
| Ending Balance | $263,261 |
| The change in unrealized gain (loss) for the period attributable to Level 3 securities held at July 31, 2019 | $108,762 |
The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations.
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
| United States of America | 88.3% |
| Cayman Islands | 3.2% |
| Bermuda | 2.6% |
| Netherlands | 1.9% |
| Canada | 1.0% |
| Others (Individually Less Than 1%) | 3.0% |
| 100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
| July 31, 2019 | ||
| Assets | ||
| Investment in securities, at value — See accompanying schedule: Unaffiliated issuers (cost $19,196,547) | $24,290,479 | |
| Fidelity Central Funds (cost $29,712) | 29,712 | |
| Total Investment in Securities (cost $19,226,259) | $24,320,191 | |
| Cash | 13,646 | |
| Foreign currency held at value (cost $1) | 1 | |
| Receivable for investments sold | 114,954 | |
| Receivable for fund shares sold | 6,774 | |
| Dividends receivable | 5,199 | |
| Distributions receivable from Fidelity Central Funds | 234 | |
| Total assets | 24,460,999 | |
| Liabilities | ||
| Payable for investments purchased | ||
| Regular delivery | $110,090 | |
| Delayed delivery | 2,854 | |
| Payable for fund shares redeemed | 15,281 | |
| Total liabilities | 128,225 | |
| Net Assets | $24,332,774 | |
| Net Assets consist of: | ||
| Paid in capital | $19,330,336 | |
| Total distributable earnings (loss) | 5,002,438 | |
| Net Assets, for 1,648,748 shares outstanding | $24,332,774 | |
| Net Asset Value, offering price and redemption price per share ($24,332,774 ÷ 1,648,748 shares) | $14.76 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| Year ended July 31, 2019 | ||
| Investment Income | ||
| Dividends | $156,129 | |
| Income from Fidelity Central Funds | 7,432 | |
| Total income | 163,561 | |
| Expenses | ||
| Independent trustees' fees and expenses | $99 | |
| Commitment fees | 50 | |
| Total expenses before reductions | 149 | |
| Expense reductions | (104) | |
| Total expenses after reductions | 45 | |
| Net investment income (loss) | 163,516 | |
| Realized and Unrealized Gain (Loss) | ||
| Net realized gain (loss) on: | ||
| Investment securities: | ||
| Unaffiliated issuers | (33,079) | |
| Fidelity Central Funds | 4 | |
| Foreign currency transactions | (226) | |
| Total net realized gain (loss) | (33,301) | |
| Change in net unrealized appreciation (depreciation) on: | ||
| Investment securities: | ||
| Unaffiliated issuers (net of decrease in deferred foreign taxes of $459) | 1,999,608 | |
| Assets and liabilities in foreign currencies | (51) | |
| Total change in net unrealized appreciation (depreciation) | 1,999,557 | |
| Net gain (loss) | 1,966,256 | |
| Net increase (decrease) in net assets resulting from operations | $2,129,772 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Year ended July 31, 2019 | Year ended July 31, 2018 | |
| Increase (Decrease) in Net Assets | ||
| Operations | ||
| Net investment income (loss) | $163,516 | $109,903 |
| Net realized gain (loss) | (33,301) | 248,932 |
| Change in net unrealized appreciation (depreciation) | 1,999,557 | 2,408,903 |
| Net increase (decrease) in net assets resulting from operations | 2,129,772 | 2,767,738 |
| Distributions to shareholders | (527,366) | – |
| Distributions to shareholders from net investment income | – | (59,022) |
| Distributions to shareholders from net realized gain | – | (32,969) |
| Total distributions | (527,366) | (91,991) |
| Share transactions | ||
| Proceeds from sales of shares | 13,070,532 | 10,131,063 |
| Reinvestment of distributions | 527,366 | 91,990 |
| Cost of shares redeemed | (5,508,574) | (6,834,098) |
| Net increase (decrease) in net assets resulting from share transactions | 8,089,324 | 3,388,955 |
| Total increase (decrease) in net assets | 9,691,730 | 6,064,702 |
| Net Assets | ||
| Beginning of period | 14,641,044 | 8,576,342 |
| End of period | $24,332,774 | $14,641,044 |
| Other Information | ||
| Undistributed net investment income end of period | $68,832 | |
| Shares | ||
| Sold | 960,082 | 808,079 |
| Issued in reinvestment of distributions | 38,970 | 7,709 |
| Redeemed | (392,765) | (530,535) |
| Net increase (decrease) | 606,287 | 285,253 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Flex Large Cap Growth Fund
| Years ended July 31, | 2019 | 2018 | 2017 A |
| Selected Per–Share Data | |||
| Net asset value, beginning of period | $14.04 | $11.33 | $10.00 |
| Income from Investment Operations | |||
| Net investment income (loss)B | .11 | .11C | .03 |
| Net realized and unrealized gain (loss) | 1.06 | 2.69 | 1.30 |
| Total from investment operations | 1.17 | 2.80 | 1.33 |
| Distributions from net investment income | (.11) | (.06) | – |
| Distributions from net realized gain | (.35) | (.04) | – |
| Total distributions | (.45)D | (.09)E | – |
| Net asset value, end of period | $14.76 | $14.04 | $11.33 |
| Total ReturnF,G | 8.66% | 24.90% | 13.30% |
| Ratios to Average Net AssetsH,I | |||
| Expenses before reductionsJ | -% | -% | - %K |
| Expenses net of fee waivers, if anyJ | -% | -% | - %K |
| Expenses net of all reductionsJ | -% | -% | - %K |
| Net investment income (loss) | .83% | .87%C | .79%K |
| Supplemental Data | |||
| Net assets, end of period (000 omitted) | $24,333 | $14,641 | $8,576 |
| Portfolio turnover rateL | 55% | 65% | 17%M |
A For the period March 8, 2017 (commencement of operations) to July 31, 2017.
B Calculated based on average shares outstanding during the period.
C Net 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 .77%.
D Total distributions of $.45 per share is comprised of distributions from net investment income of $.107 and distributions from net realized gain of $.347 per share.
E Total distributions of $.09 per share is comprised of distributions from net investment income of $.059 and distributions from net realized gain of $.035 per share.
F Total returns for periods of less than one year are not annualized.
G Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
H 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.
I Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
J Amount represents less than .005%.
K Annualized
L Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
M Amount not annualized.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended July 31, 2019
1. Organization.
Fidelity Flex Large Cap Growth Fund (the Fund) is a fund of Fidelity Securities Fund (the Trust) and is authorized to issue an unlimited number of shares. Share transactions on the Statement of Changes in Net Assets may contain exchanges between affiliated funds. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund is available only to certain fee-based accounts offered by Fidelity.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date ranged from less than .005% to .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investments Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy. Equity securities, including restricted securities, for which observable inputs are not available are valued using alternate valuation approaches, including the market approach and the income approach and are categorized as Level 3 in the hierarchy. The market approach generally consists of using comparable market transactions while the income approach generally consists of using the net present value of estimated future cash flows, adjusted as appropriate for liquidity, credit, market and/or other risk factors.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
The following provides information on Level 3 securities held by the Fund that were valued at period end based on unobservable inputs. These amounts exclude valuations provided by a broker.
| Asset Type | Fair Value | Valuation Technique(s) | Unobservable Input | Amount or Range/Weighted Average | Impact to Valuation from an Increase in Input(a) |
| Equities | $263,261 | Market comparable | Enterprise value/Sales multiple (EV/S) | 1.0 - 15.9 / 5.1 | Increase |
| Transaction price | $0.77 - $9.15 / $2.80 | Increase | |||
| Discount rate | 6.0% - 57.2% / 12.2% | Decrease | |||
| Premium rate | 15.5% - 52.9% / 23.7% | Increase | |||
| Proxy discount | 0.6% | Decrease | |||
| Discount for lack of marketability | 10.0% | Decrease | |||
| Liquidity preference | $19.60 | Increase | |||
| Market approach | Transaction price | $0.24 - $417.90 / $191.00 | Increase | ||
| Conversion ratio | 1.0 | Increase |
(a) Represents the directional change in the fair value of the Level 3 investments that could have resulted from an increase in the corresponding input as of period end. A decrease to the unobservable input would have had the opposite effect. Significant changes in these inputs may have resulted in a significantly higher or lower fair value measurement at period end.
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 July 31, 2019, as well as a roll forward of Level 3 investments, is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. 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 U.S. Federal income taxes is required. As of July 31, 2019, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, partnerships, passive foreign investment companies (PFIC) and losses deferred due to wash sales and excise tax regulations.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
| Gross unrealized appreciation | $5,409,625 |
| Gross unrealized depreciation | (402,218) |
| Net unrealized appreciation (depreciation) | $5,007,407 |
| Tax Cost | $19,312,784 |
The tax-based components of distributable earnings as of period end were as follows:
| Undistributed ordinary income | $106,982 |
| Net unrealized appreciation (depreciation) on securities and other investments | $5,007,375 |
The Fund intends to elect to defer to its next fiscal year $111,919 of capital losses recognized during the period November 1, 2018 to July 31, 2019.
The tax character of distributions paid was as follows:
| July 31, 2019 | July 31, 2018 | |
| Ordinary Income | $308,406 | $ 91,991 |
| Long-term Capital Gains | 218,961 | – |
| Total | $527,367 | $ 91,991 |
Delayed Delivery Transactions and When-Issued Securities. During the period, the Fund transacted in securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. The securities purchased on a delayed delivery or when-issued basis are identified as such in the Fund's Schedule of Investments. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
New Rule Issuance. During August 2018, the U.S. Securities and Exchange Commission issued Final Rule Release No. 33-10532, Disclosure Update and Simplification. This Final Rule includes amendments specific to registered investment companies that are intended to eliminate overlap in disclosure requirements between Regulation S-X and GAAP. In accordance with these amendments, certain line-items in the Fund's financial statements have been combined or removed for the current period as outlined in the table below.
| Financial Statement | Current Line-Item Presentation (As Applicable) | Prior Line-Item Presentation (As Applicable) |
| Statement of Assets and Liabilities | Total distributable earnings (loss) | Undistributed/Distributions in excess of/Accumulated net investment income (loss) Accumulated/Undistributed net realized gain (loss) Net unrealized appreciation (depreciation) |
| Statement of Changes in Net Assets | N/A - removed | Undistributed/Distributions in excess of/Accumulated net investment income (loss) end of period |
| Statement of Changes in Net Assets | Distributions to shareholders | Distributions to shareholders from net investment income Distributions to shareholders from net realized gain |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $18,833,071 and $10,625,193, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services and the Fund does not pay any fees for these services. Under the management contract, the investment adviser or an affiliate pays all other expenses of the Fund, excluding fees and expenses of the independent Trustees, and certain miscellaneous expenses such as proxy and shareholder meeting expenses.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $819 for the period.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $50 and is reflected in Commitment fees on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Expense Reductions.
Through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $104.
8. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
At the end of the period, the investment adviser or its affiliates were the owners of record of 32% of the total outstanding shares of the Fund.
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Securities Fund and Shareholders of Fidelity Flex Large Cap Growth Fund:
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statement of assets and liabilities of Fidelity Flex Large Cap Growth Fund (the "Fund"), a fund of Fidelity Securities Fund, including the schedule of investments, as of July 31, 2019, the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the two years in the period then ended and for the period from March 8, 2017 (commencement of operations) to July 31, 2017, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of July 31, 2019, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the two years in the period then ended and for the period from March 8, 2017 (commencement of operations) to July 31, 2017 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund's financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of July 31, 2019, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/ Deloitte & Touche LLP
Boston, Massachusetts
September 17, 2019
We have served as the auditor of one or more of the Fidelity investment companies since 1999.
Trustees and Officers
The Trustees, Members of the Advisory Board (if any), and officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Except for Jonathan Chiel, each of the Trustees oversees 298 funds. Mr. Chiel oversees 170 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the fund is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund’s Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-3455 (for managed account clients) or 1-800-835-5092 (for retirement plan participants).
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Board Structure and Oversight Function. James C. Curvey is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Ned C. Lautenbach serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and other equity funds. The asset allocation funds may invest in Fidelity® funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Jonathan Chiel (1957)
Year of Election or Appointment: 2016
Trustee
Mr. Chiel also serves as Trustee of other Fidelity® funds. Mr. Chiel is Executive Vice President and General Counsel for FMR LLC (diversified financial services company, 2012-present). Previously, Mr. Chiel served as general counsel (2004-2012) and senior vice president and deputy general counsel (2000-2004) for John Hancock Financial Services; a partner with Choate, Hall & Stewart (1996-2000) (law firm); and an Assistant United States Attorney for the United States Attorney’s Office of the District of Massachusetts (1986-95), including Chief of the Criminal Division (1993-1995). Mr. Chiel is a director on the boards of the Boston Bar Foundation and the Maimonides School.
James C. Curvey (1935)
Year of Election or Appointment: 2007
Trustee
Chairman of the Board of Trustees
Mr. Curvey also serves as Trustee of other Fidelity® funds. Mr. Curvey is Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey is an Overseer Emeritus for the Boston Symphony Orchestra, a Director of Artis-Naples, and a Trustee of Brewster Academy in Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-2018), Director of Fidelity Investments Money Management, Inc. (investment adviser firm, 2009-2014) and a Director of FMR and FMR Co., Inc. (investment adviser firms, 2007-2014).
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), as a member of the Independent Directors Council (IDC) Governing Council (2010-2015), and as a member of the Board of Directors for The Brookville Center for Children’s Services, Inc. (2009-2017). Mr. Dirks is a member of the Finance Committee (2016-present) and Board of Directors (2017-present) and is Treasurer (2018-present) of the Asolo Repertory Theatre.
Donald F. Donahue (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Donahue also serves as a Trustee of other Fidelity® funds. Mr. Donahue is President and Chief Executive Officer of Miranda Partners, LLC (risk consulting for the financial services industry, 2012-present). Previously, Mr. Donahue served as a Member of the Advisory Board of certain Fidelity® funds (2015-2018) and Chief Executive Officer (2006-2012), Chief Operating Officer (2003-2006), and Managing Director, Customer Marketing and Development (1999-2003) of The Depository Trust & Clearing Corporation (financial markets infrastructure). Mr. Donahue serves as a Member (2007-present) and Co-Chairman (2016-present) of the Board of Directors of United Way of New York, Member of the Board of Directors of NYC Leadership Academy (2012-present) and Member of the Board of Advisors of Ripple Labs, Inc. (financial services, 2015-present). He also served as Chairman (2010-2012) and Member of the Board of Directors (2012-2013) of Omgeo, LLC (financial services), Treasurer of United Way of New York (2012-2016), and Member of the Board of Directors of XBRL US (financial services non-profit, 2009-2012) and the International Securities Services Association (2009-2012).
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2014-2017) and a member (2010-2017) of the Board of Directors of Dave & Buster’s Entertainment, Inc. (restaurant and entertainment complexes), as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association, and as a member of the Board of Directors for The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), Earth Fare, Inc. (retail grocery, 2010-2014), and The Western Union Company (global money transfer, 2006-2011).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as Chair (2018-present) and Member (2013-present) of the Board of Governors, State University System of Florida and is a member of the Council on Foreign Relations (1994-present). He is also a member and has most recently served as Chairman of the Board of Directors of Artis-Naples (2012-present). Previously, Mr. Lautenbach served as a member and then Lead Director of the Board of Directors of Eaton Corporation (diversified industrial, 1997-2016). He was also a Partner and Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007). In addition, Mr. Lautenbach also had a 30-year career with IBM (technology company) during which time he served as Senior Vice President and a member of the Corporate Executive Committee (1968-1998).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-2018).
Cornelia M. Small (1944)
Year of Election or Appointment: 2005
Trustee
Ms. Small also serves as Trustee of other Fidelity® funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.
Garnett A. Smith (1947)
Year of Election or Appointment: 2018
Trustee
Mr. Smith also serves as Trustee of other Fidelity® funds. Prior to Mr. Smith's retirement, he served as Chairman and Chief Executive Officer of Inbrand Corp. (manufacturer of personal absorbent products, 1990-1997). He also served as President (1986-1990) of Inbrand Corp. Prior to his employment with Inbrand Corp., he was employed by a retail fabric chain and North Carolina National Bank. In addition, Mr. Smith served as a Member of the Advisory Board of certain Fidelity® funds (2012-2013) and as a board member of the Jackson Hole Land Trust (2009-2012).
David M. Thomas (1949)
Year of Election or Appointment: 2008
Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present) and as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), a Director of Fortune Brands, Inc. (consumer products, 2000-2011), and a member of the Board of Trustees of the University of Florida (2013-2018).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Advisory Board Members and Officers:
Correspondence intended for a Member of the Advisory Board (if any) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235. Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Vicki L. Fuller (1957)
Year of Election or Appointment: 2018
Member of the Advisory Board
Ms. Fuller also serves as Member of the Advisory Board of other Fidelity® funds. Ms. Fuller serves as a member of the Board of Directors, Audit Committee, and Nominating and Governance Committee of The Williams Companies, Inc. (natural gas infrastructure, 2018-present). Previously, Ms. Fuller served as the Chief Investment Officer of the New York State Common Retirement Fund (2012-2018) and held a variety of positions at AllianceBernstein L.P. (global asset management, 1985-2012), including Managing Director (2006-2012) and Senior Vice President and Senior Portfolio Manager (2001-2006).
Peter S. Lynch (1944)
Year of Election or Appointment: 2003
Member of the Advisory Board
Mr. Lynch also serves as Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of FMR (investment adviser firm) and FMR Co., Inc. (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).
Michael E. Wiley (1950)
Year of Election or Appointment: 2018
Member of the Advisory Board
Mr. Wiley also serves as Trustee or Member of the Advisory Board of other Fidelity® funds. Mr. Wiley serves as a Director of High Point Resources (exploration and production, 2005-present). Previously, Mr. Wiley served as a Director of Andeavor Corporation (independent oil refiner and marketer, 2005-2018), a Director of Andeavor Logistics LP (natural resources logistics, 2015-2018), a Director of Post Oak Bank (privately-held bank, 2004-2018), a Director of Asia Pacific Exploration Consolidated (international oil and gas exploration and production, 2008-2013), a member of the Board of Trustees of the University of Tulsa (2000-2006; 2007-2010), a Senior Energy Advisor of Katzenbach Partners, LLC (consulting, 2006-2007), an Advisory Director of Riverstone Holdings (private investment), a Director of Spinnaker Exploration Company (exploration and production, 2001-2005) and Chairman, President, and CEO of Baker Hughes, Inc. (oilfield services, 2000-2004).
Elizabeth Paige Baumann (1968)
Year of Election or Appointment: 2017
Anti-Money Laundering (AML) Officer
Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer (2012-present) and Senior Vice President (2014-present) of FMR LLC (diversified financial services company) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as AML Officer of the funds (2012-2016), and Vice President (2007-2014) and Deputy Anti-Money Laundering Officer (2007-2012) of FMR LLC.
Craig S. Brown (1977)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Brown also serves as Assistant Treasurer of other funds. Mr. Brown is an employee of Fidelity Investments (2013-present).
John J. Burke III (1964)
Year of Election or Appointment: 2018
Chief Financial Officer
Mr. Burke also serves as Chief Financial Officer of other funds. Mr. Burke serves as Head of Investment Operations for Fidelity Fund and Investment Operations (2018-present) and is an employee of Fidelity Investments (1998-present). Previously Mr. Burke served as head of Asset Management Investment Operations (2012-2018).
William C. Coffey (1969)
Year of Election or Appointment: 2018
Secretary and Chief Legal Officer (CLO)
Mr. Coffey also serves as Secretary and CLO of other funds. Mr. Coffey serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2018-present); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2018-present); and CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2018-present). He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Assistant Secretary of certain funds (2009-2018) and as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Timothy M. Cohen (1969)
Year of Election or Appointment: 2018
Vice President
Mr. Cohen also serves as Vice President of other funds. Mr. Cohen serves as Executive Vice President of Fidelity SelectCo, LLC (2019-present), Co-Head of Equity (2018-present), a Director of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present), and is an employee of Fidelity Investments. Previously, Mr. Cohen served as Head of Global Equity Research (2016-2018), Chief Investment Officer - Equity and a Director of Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2013-2015) and as a Director of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2017).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds. Mr. Davis serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present), and is an employee of Fidelity Investments (2008-present). Previously, Mr. Deberghes served as President and Treasurer of certain Fidelity® funds (2013-2018). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). Previously, Mr. Deberghes served in other fund officer roles.
Laura M. Del Prato (1964)
Year of Election or Appointment: 2018
Assistant Treasurer
Ms. Del Prato also serves as an officer of other funds. Ms. Del Prato is an employee of Fidelity Investments (2017-present). Prior to joining Fidelity Investments, Ms. Del Prato served as a Managing Director and Treasurer of the JPMorgan Mutual Funds (2014-2017). Prior to JPMorgan, Ms. Del Prato served as a partner at Cohen Fund Audit Services (accounting firm, 2012-2013) and KPMG LLP (accounting firm, 2004-2012).
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2005-present). Previously, Mr. Hogan served as Assistant Treasurer of certain Fidelity® funds (2016-2018).
Pamela R. Holding (1964)
Year of Election or Appointment: 2018
Vice President
Ms. Holding also serves as Vice President of other funds. Ms. Holding serves as Executive Vice President of Fidelity SelectCo, LLC (2019-present), Co-Head of Equity (2018-present) and is an employee of Fidelity Investments (2013-present). Previously, Ms. Holding served as Chief Investment Officer of Fidelity Institutional Asset Management (2013-2018).
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight, serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. Ms. Smith serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), is an employee of Fidelity Investments (2009-present), and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Assistant Treasurer (2013-2018) and Deputy Treasurer (2013-2016) of certain Fidelity® funds.
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
Jim Wegmann (1979)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Wegmann also serves as Assistant Treasurer of other funds. Mr. Wegmann is an employee of Fidelity Investments (2011-present).
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs and (2) ongoing costs, including 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 (February 1, 2019 to July 31, 2019).
Actual Expenses
The first line of the accompanying table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. 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.
| Annualized Expense Ratio-A | Beginning Account Value February 1, 2019 | Ending Account Value July 31, 2019 | Expenses Paid During Period-B February 1, 2019 to July 31, 2019 | |
| Actual | - %-C | $1,000.00 | $1,128.40 | $--D |
| Hypothetical-E | $1,000.00 | $1,024.79 | $--D |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
C Amount represents less than .005%.
D Amount represents less than $.005.
E 5% return per year before expenses
Distributions (Unaudited)
The fund hereby designates as a capital gain dividend with respect to the taxable year ended July 31, 2019, $121,301 or, if subsequently determined to be different, the net capital gain of such year.
The fund designates 23% and 66% of the dividends distributed in September and December, respectively during the fiscal year as qualifying for the dividends–received deduction for corporate shareholders.
The fund designates 28% and 69% of the dividends distributed in September and December, respectively during the fiscal year as amounts which may be taken into account as a dividend for the purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code.
The fund will notify shareholders in January 2020 of amounts for use in preparing 2019 income tax returns.
ZLG-ANN-0919
1.9881575.102
Item 2.
Code of Ethics
As of the end of the period, July 31, 2019, Fidelity Securities Fund (the trust) has adopted a code of ethics, as defined in Item 2 of Form N-CSR, that applies to its President and Treasurer and its Chief Financial Officer. A copy of the code of ethics is filed as an exhibit to this Form N-CSR.
Item 3.
Audit Committee Financial Expert
The Board of Trustees of the trust has determined that Joseph Mauriello is an audit committee financial expert, as defined in Item 3 of Form N-CSR. Mr. Mauriello is independent for purposes of Item 3 of Form N-CSR.
Item 4.
Principal Accountant Fees and Services
Fees and Services
The following table presents fees billed by Deloitte & Touche LLP, the member firms of Deloitte Touche Tohmatsu, and their respective affiliates (collectively, “Deloitte Entities”) in each of the last two fiscal years for services rendered to Fidelity Blue Chip Growth Fund, Fidelity Blue Chip Growth K6 Fund, Fidelity Flex Large Cap Growth Fund, Fidelity OTC K6 Portfolio, Fidelity OTC Portfolio, Fidelity Real Estate Income Fund, Fidelity Series Blue Chip Growth Fund, Fidelity Series Real Estate Income Fund and Fidelity Series Small Cap Opportunities Fund (the “Funds”):
Services Billed by Deloitte Entities
July 31, 2019 FeesA,B
July 31, 2018 FeesA,B
| Audit Fees | Audit-Related Fees | Tax Fees | All Other Fees |
Fidelity Blue Chip Growth Fund | $75,000 | $200 | $18,300 | $2,800 |
Fidelity Blue Chip Growth K6 Fund | $49,000 | $100 | $3,800 | $1,200 |
Fidelity Flex Large Cap Growth Fund | $50,000 | $100 | $3,800 | $1,300 |
Fidelity OTC K6 Portfolio | $- | $- | $- | $- |
Fidelity OTC Portfolio | $79,000 | $100 | $19,100 | $1,800 |
Fidelity Real Estate Income Fund | $86,000 | $200 | $7,700 | $3,400 |
Fidelity Series Blue Chip Growth Fund | $70,000 | $100 | $18,300 | $1,900 |
Fidelity Series Real Estate Income Fund | $77,000 | $100 | $6,600 | $2,100 |
Fidelity Series Small Cap Opportunities Fund | $42,000 | $100 | $5,300 | $1,300 |
AAmounts may reflect rounding.
BFidelity OTC K6 Portfolio commenced operations on June 13, 2019.
The following table presents fees billed by PricewaterhouseCoopers LLP (“PwC”) in each of the last two fiscal years for services rendered to Fidelity Blue Chip Value Fund, Fidelity Dividend Growth Fund, Fidelity Growth & Income Portfolio, Fidelity Leveraged Company Stock Fund, Fidelity Small Cap Growth Fund, Fidelity Small Cap Growth K6 Fund and Fidelity Small Cap Value Fund (the “Funds”):
Services Billed by PwC
July 31, 2019 FeesA
| Audit Fees | Audit-Related Fees | Tax Fees | All Other Fees |
Fidelity Blue Chip Value Fund | $49,000 | $4,100 | $3,500 | $1,900 |
Fidelity Dividend Growth Fund | $57,000 | $4,700 | $3,700 | $2,200 |
Fidelity Growth & Income Portfolio | $64,000 | $5,400 | $6,600 | $2,500 |
Fidelity Leveraged Company Stock Fund | $50,000 | $4,200 | $4,600 | $2,000 |
Fidelity Small Cap Growth Fund | $68,000 | $4,100 | $3,700 | $1,900 |
Fidelity Small Cap Growth K6 Fund | $51,000 | $3,500 | $4,100 | $1,600 |
Fidelity Small Cap Value Fund | $52,000 | $4,200 | $3,300 | $1,900 |
July 31, 2018 FeesA
| Audit Fees | Audit-Related Fees | Tax Fees | All Other Fees |
Fidelity Blue Chip Value Fund | $51,000 | $4,400 | $3,500 | $2,200 |
Fidelity Dividend Growth Fund | $60,000 | $5,100 | $3,500 | $2,500 |
Fidelity Growth & Income Portfolio | $67,000 | $5,900 | $7,000 | $2,900 |
Fidelity Leveraged Company Stock Fund | $51,000 | $4,500 | $4,400 | $2,200 |
Fidelity Small Cap Growth Fund | $54,000 | $4,400 | $3,500 | $2,200 |
Fidelity Small Cap Growth K6 Fund | $41,000 | $3,500 | $3,900 | $1,700 |
Fidelity Small Cap Value Fund | $51,000 | $4,400 | $3,300 | $2,200 |
AAmounts may reflect rounding.
The following table presents fees billed by Deloitte Entities and PwC that were required to be approved by the Audit Committee for services that relate directly to the operations and financial reporting of the Funds and that are rendered on behalf of Fidelity Management & Research Company (“FMR”) and entities controlling, controlled by, or under common control with FMR (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) that provide ongoing services to the Funds (“Fund Service Providers”):
Services Billed by Deloitte Entities
| July 31, 2019A,B | July 31, 2018A,B |
Audit-Related Fees | $290,000 | $5,000 |
Tax Fees | $- | $5,000 |
All Other Fees | $- | $- |
A Amounts may reflect rounding.
BMay include amounts billed prior to the Fidelity OTC K6 Portfolio’s commencement of operations.
Services Billed by PwC
| July 31, 2019A | July 31, 2018A |
Audit-Related Fees | $7,775,000 | $7,745,000 |
Tax Fees | $10,000 | $20,000 |
All Other Fees | $- | $- |
A Amounts may reflect rounding.
“Audit-Related Fees” represent fees billed for assurance and related services that are reasonably related to the performance of the fund audit or the review of the fund's financial statements and that are not reported under Audit Fees.
“Tax Fees” represent fees billed for tax compliance, tax advice or tax planning that relate directly to the operations and financial reporting of the fund.
“All Other Fees” represent fees billed for services provided to the fund or Fund Service Provider, a significant portion of which are assurance related, that relate directly to the operations and financial reporting of the fund, excluding those services that are reported under Audit Fees, Audit-Related Fees or Tax Fees.
Assurance services must be performed by an independent public accountant.
* * *
The aggregate non-audit fees billed by Deloitte Entities and PwC for services rendered to the Funds, FMR (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any Fund Service Provider for each of the last two fiscal years of the Funds are as follows:
Billed By | July 31, 2019A,B | July 31, 2018A,B |
Deloitte Entities | $805,000 | $450,000 |
PwC | $12,330,000 | $10,975,000 |
A Amounts may reflect rounding.
BMay include amounts billed prior to the Fidelity OTC K6 Portfolio’s commencement of operations.
The trust's Audit Committee has considered non-audit services that were not pre-approved that were provided by Deloitte Entities and PwC to Fund Service Providers to be compatible with maintaining the independence of Deloitte Entities and PwC in their audits of the Funds, taking into account representations from Deloitte Entities and PwC, in accordance with Public Company Accounting Oversight Board rules, regarding their independence from the Funds and their related entities and FMR’s review of the appropriateness and permissibility under applicable law of such non-audit services prior to their provision to the Fund Service Providers.
Audit Committee Pre-Approval Policies and Procedures
The trust’s Audit Committee must pre-approve all audit and non-audit services provided by a fund’s independent registered public accounting firm relating to the operations or financial reporting of the fund. Prior to the commencement of any audit or non-audit services to a fund, the Audit Committee reviews the services to determine whether they are appropriate and permissible under applicable law.
The Audit Committee has adopted policies and procedures to, among other purposes, provide a framework for the Committee’s consideration of non-audit services by the audit firms that audit the Fidelity funds. The policies and procedures require that any non-audit service provided by a fund audit firm to a Fidelity fund and any non-audit service provided by a fund auditor to a Fund Service Provider that relates directly to the operations and financial reporting of a Fidelity fund (“Covered Service”) are subject to approval by the Audit Committee before such service is provided.
All Covered Services must be approved in advance of provision of the service either: (i) by formal resolution of the Audit Committee, or (ii) by oral or written approval of the service by the Chair of the Audit Committee (or if the Chair is unavailable, such other member of the Audit Committee as may be designated by the Chair to act in the Chair’s absence). The approval contemplated by (ii) above is permitted where the Treasurer determines that action on such an engagement is necessary before the next meeting of the Audit Committee.
Non-audit services provided by a fund audit firm to a Fund Service Provider that do not relate directly to the operations and financial reporting of a Fidelity fund are reported to the Audit Committee periodically.
Non-Audit Services Approved Pursuant to Rule 2-01(c)(7)(i)(C) and (ii) of Regulation S-X (“De Minimis Exception”)
There were no non-audit services approved or required to be approved by the Audit Committee pursuant to the De Minimis Exception during the Funds’ last two fiscal years relating to services provided to (i) the Funds or (ii) any Fund Service Provider that relate directly to the operations and financial reporting of the Funds.
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 trust’s Board of Trustees.
Item 11.
Controls and Procedures
(a)(i) The President and Treasurer and the Chief Financial Officer have concluded that the trust’s 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 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.
Disclosure of Securities Lending Activities for Closed-End Management
Investment Companies
Not applicable.
Item 13.
Exhibits
(a) | (1) | Code of Ethics pursuant to Item 2 of Form N-CSR is filed and attached hereto as EX-99.CODE ETH. |
(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/ Stacie M. Smith |
| Stacie M. Smith |
| President and Treasurer |
|
|
Date: | September 24, 2019 |
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/Stacie M. Smith |
| Stacie M. Smith |
| President and Treasurer |
|
|
Date: | September 24, 2019 |
By: | /s/John J. Burke III |
| John J. Burke III |
| Chief Financial Officer |
|
|
Date: | September 24, 2019 |