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 811-04118
Fidelity Securities Fund
(Exact name of registrant as specified in charter)
245 Summer St., Boston, MA 02210
(Address of principal executive offices) (Zip code)
Cynthia Lo Bessette, Secretary
245 Summer St.
Boston, Massachusetts 02210
(Name and address of agent for service)
Registrant's telephone number, including area code:
617-563-7000
Date of fiscal year end: | July 31 |
Date of reporting period: | January 31, 2021 |
Item 1.
Reports to Stockholders
Fidelity® OTC Portfolio
Semi-Annual Report
January 31, 2021
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Contents
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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. © 2021 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.
Note to Shareholders:
Early in 2020, the outbreak and spread of a new coronavirus emerged as a public health emergency that had a major influence on financial markets, primarily based on its impact on the global economy and the outlook for corporate earnings. The virus causes a respiratory disease known as COVID-19. On March 11, the World Health Organization declared the COVID-19 outbreak a pandemic, citing sustained risk of further global spread.
In the weeks following, as the crisis worsened, we witnessed an escalating human tragedy with wide-scale social and economic consequences from coronavirus-containment measures. The outbreak of COVID-19 prompted a number of measures to limit the spread, including travel and border restrictions, quarantines, and restrictions on large gatherings. In turn, these resulted in lower consumer activity, diminished demand for a wide range of products and services, disruption in manufacturing and supply chains, and – given the wide variability in outcomes regarding the outbreak – significant market uncertainty and volatility. Amid the turmoil, global governments and central banks took unprecedented action to help support consumers, businesses, and the broader economies, and to limit disruption to financial systems.
The situation continues to unfold, and the extent and duration of its impact on financial markets and the economy remain highly uncertain. Extreme events such as the coronavirus crisis are “exogenous shocks” that can have significant adverse effects on mutual funds and their investments. Although multiple asset classes may be affected by market disruption, the duration and impact may not be the same for all types of assets.
Fidelity is committed to helping you stay informed amid news about COVID-19 and during increased market volatility, and we’re taking extra steps to be responsive to customer needs. We encourage you to visit our websites, where we offer ongoing updates, commentary, and analysis on the markets and our funds.
Investment Summary (Unaudited)
Top Ten Stocks as of January 31, 2021
% of fund's net assets | |
Apple, Inc. | 11.2 |
Microsoft Corp. | 9.7 |
Alphabet, Inc. Class A | 6.8 |
Amazon.com, Inc. | 6.8 |
Facebook, Inc. Class A | 4.3 |
Tesla, Inc. | 3.5 |
NVIDIA Corp. | 2.3 |
Alphabet, Inc. Class C | 2.3 |
Marvell Technology Group Ltd. | 1.7 |
Marriott International, Inc. Class A | 1.6 |
50.2 |
Top Five Market Sectors as of January 31, 2021
% of fund's net assets | |
Information Technology | 41.5 |
Consumer Discretionary | 21.4 |
Communication Services | 19.9 |
Health Care | 6.5 |
Financials | 3.0 |
Asset Allocation (% of fund's net assets)
As of January 31, 2021* | ||
Stocks | 98.8% | |
Convertible Securities | 1.3% | |
Short-Term Investments and Net Other Assets (Liabilities)** | (0.1)% |
* Foreign investments - 14.8%
** Short-Term Investments and Net Other Assets (Liabilities) are not included in the pie chart
Schedule of Investments January 31, 2021 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.7% | |||
Shares | Value (000s) | ||
COMMUNICATION SERVICES - 19.9% | |||
Entertainment - 1.9% | |||
Activision Blizzard, Inc. | 1,556,975 | $141,685 | |
Electronic Arts, Inc. | 2,417 | 346 | |
Live Nation Entertainment, Inc. (a) | 1,679,373 | 111,594 | |
NetEase, Inc. ADR | 15,186 | 1,746 | |
Sea Ltd. ADR (a) | 203,659 | 44,135 | |
Spotify Technology SA (a) | 58,406 | 18,398 | |
Take-Two Interactive Software, Inc. (a) | 239,985 | 48,105 | |
The Walt Disney Co. | 881,975 | 148,322 | |
514,331 | |||
Interactive Media & Services - 18.0% | |||
Alphabet, Inc.: | |||
Class A (a) | 1,000,148 | 1,827,630 | |
Class C (a) | 329,457 | 604,797 | |
Eventbrite, Inc. (a) | 23,444 | 418 | |
Facebook, Inc. Class A (a) | 4,502,401 | 1,163,105 | |
InterActiveCorp (a) | 180,189 | 37,831 | |
Match Group, Inc. (a) | 1,585,199 | 221,706 | |
Snap, Inc. Class A (a) | 2,167,213 | 114,732 | |
Tencent Holdings Ltd. sponsored ADR (b) | 4,269,236 | 381,285 | |
Twitter, Inc. (a) | 6,175,825 | 312,064 | |
Yandex NV Series A (a) | 2,913,976 | 182,531 | |
4,846,099 | |||
Wireless Telecommunication Services - 0.0% | |||
T-Mobile U.S., Inc. | 64,889 | 8,181 | |
TOTAL COMMUNICATION SERVICES | 5,368,611 | ||
CONSUMER DISCRETIONARY - 20.8% | |||
Automobiles - 3.5% | |||
Tesla, Inc. (a) | 1,186,975 | 941,900 | |
Hotels, Restaurants & Leisure - 4.3% | |||
Airbnb, Inc. Class A | 525,136 | 96,431 | |
Caesars Entertainment, Inc. (a) | 596,783 | 42,008 | |
Extended Stay America, Inc. unit | 5,281,982 | 77,539 | |
Las Vegas Sands Corp. | 856,140 | 41,172 | |
Marriott International, Inc. Class A | 3,790,392 | 440,860 | |
Starbucks Corp. | 3,673,219 | 355,604 | |
Vail Resorts, Inc. | 305,213 | 81,174 | |
Wynn Resorts Ltd. | 126,700 | 12,610 | |
1,147,398 | |||
Household Durables - 0.8% | |||
Lennar Corp. Class A | 2,491,669 | 207,182 | |
Internet & Direct Marketing Retail - 8.7% | |||
Alibaba Group Holding Ltd. sponsored ADR (a) | 678,162 | 172,138 | |
Amazon.com, Inc. (a) | 569,370 | 1,825,514 | |
ContextLogic, Inc. (b) | 152,770 | 4,594 | |
Expedia, Inc. | 786,796 | 97,641 | |
MercadoLibre, Inc. (a) | 69,912 | 124,409 | |
The Booking Holdings, Inc. (a) | 59,269 | 115,238 | |
Zomato Pvt Ltd. (c)(d)(e) | 410 | 2,195 | |
2,341,729 | |||
Multiline Retail - 0.2% | |||
Dollar Tree, Inc. (a) | 550,672 | 55,981 | |
Specialty Retail - 1.5% | |||
Five Below, Inc. (a) | 1,082,340 | 190,200 | |
Lowe's Companies, Inc. | 1,109,694 | 185,152 | |
The Home Depot, Inc. | 88,562 | 23,984 | |
399,336 | |||
Textiles, Apparel & Luxury Goods - 1.8% | |||
Kontoor Brands, Inc. | 6,054 | 219 | |
lululemon athletica, Inc. (a) | 1,038,932 | 341,476 | |
LVMH Moet Hennessy Louis Vuitton SE | 247,618 | 149,709 | |
491,404 | |||
TOTAL CONSUMER DISCRETIONARY | 5,584,930 | ||
CONSUMER STAPLES - 1.5% | |||
Beverages - 1.4% | |||
Diageo PLC | 3,952,638 | 158,687 | |
Kweichow Moutai Co. Ltd. (A Shares) | 71,075 | 23,400 | |
Monster Beverage Corp. (a) | 1,889,816 | 164,093 | |
PepsiCo, Inc. | 136,886 | 18,695 | |
364,875 | |||
Food & Staples Retailing - 0.1% | |||
Costco Wholesale Corp. | 46,080 | 16,240 | |
Food Products - 0.0% | |||
Lamb Weston Holdings, Inc. | 165,843 | 12,388 | |
TOTAL CONSUMER STAPLES | 393,503 | ||
ENERGY - 1.8% | |||
Oil, Gas & Consumable Fuels - 1.8% | |||
Cenovus Energy, Inc. (Canada) | 171,916 | 1,015 | |
Centennial Resource Development, Inc. Class A (a) | 924,670 | 2,164 | |
EOG Resources, Inc. | 14,256 | 726 | |
Reliance Industries Ltd. | 998,144 | 13,253 | |
Reliance Industries Ltd. | 14,972,173 | 378,507 | |
Reliance Industries Ltd. sponsored GDR (f) | 1,850,862 | 93,839 | |
489,504 | |||
FINANCIALS - 3.0% | |||
Banks - 1.7% | |||
Huntington Bancshares, Inc. | 18,363,288 | 242,854 | |
PacWest Bancorp | 884,836 | 26,713 | |
Signature Bank | 1,076,673 | 177,856 | |
447,423 | |||
Capital Markets - 0.7% | |||
London Stock Exchange Group PLC | 795,903 | 94,486 | |
S&P Global, Inc. | 345,766 | 109,608 | |
204,094 | |||
Consumer Finance - 0.4% | |||
Capital One Financial Corp. | 1,030,580 | 107,448 | |
Diversified Financial Services - 0.2% | |||
Ant International Co. Ltd. Class C (a)(d)(e) | 6,818,398 | 58,638 | |
TOTAL FINANCIALS | 817,603 | ||
HEALTH CARE - 6.4% | |||
Biotechnology - 2.3% | |||
Alnylam Pharmaceuticals, Inc. (a) | 529,051 | 79,612 | |
Amgen, Inc. | 278,280 | 67,185 | |
Arcutis Biotherapeutics, Inc. (a) | 476,065 | 12,992 | |
Ascendis Pharma A/S sponsored ADR (a) | 181,821 | 27,300 | |
ChemoCentryx, Inc. (a) | 296,080 | 16,880 | |
GenSight Biologics SA (a)(b) | 220,726 | 1,808 | |
Global Blood Therapeutics, Inc. (a) | 1,250,808 | 62,690 | |
Ionis Pharmaceuticals, Inc. (a) | 32,948 | 1,979 | |
Neurocrine Biosciences, Inc. (a) | 690,690 | 75,803 | |
Regeneron Pharmaceuticals, Inc. (a) | 323,618 | 163,052 | |
Sarepta Therapeutics, Inc. (a) | 113,836 | 10,177 | |
Seer, Inc. | 392,516 | 24,493 | |
Trevena, Inc. (a)(b) | 463,947 | 1,011 | |
Vertex Pharmaceuticals, Inc. (a) | 114,025 | 26,121 | |
Xencor, Inc. (a) | 1,182,771 | 54,112 | |
625,215 | |||
Health Care Equipment & Supplies - 1.8% | |||
Danaher Corp. | 48,815 | 11,610 | |
DexCom, Inc. (a) | 439,973 | 164,924 | |
Insulet Corp. (a) | 698,537 | 186,635 | |
Intuitive Surgical, Inc. (a) | 130,924 | 97,884 | |
Neuronetics, Inc. (a) | 40,136 | 708 | |
Outset Medical, Inc. | 41,606 | 2,156 | |
Pulmonx Corp. | 27,147 | 1,540 | |
Tandem Diabetes Care, Inc. (a) | 199,303 | 18,465 | |
483,922 | |||
Health Care Providers & Services - 0.6% | |||
Cigna Corp. | 145,710 | 31,626 | |
Guardant Health, Inc. (a) | 84,000 | 13,062 | |
Humana, Inc. | 261,436 | 100,159 | |
144,847 | |||
Health Care Technology - 0.0% | |||
Castlight Health, Inc. Class B (a) | 47,922 | 85 | |
Certara, Inc. | 232,019 | 7,986 | |
8,071 | |||
Life Sciences Tools & Services - 1.4% | |||
10X Genomics, Inc. (a) | 497,180 | 85,092 | |
Bruker Corp. | 2,381,535 | 137,867 | |
Maravai LifeSciences Holdings, Inc. | 390,939 | 13,620 | |
Nanostring Technologies, Inc. (a) | 1,893,496 | 132,602 | |
Sartorius Stedim Biotech | 32,708 | 13,694 | |
382,875 | |||
Pharmaceuticals - 0.3% | |||
AstraZeneca PLC: | |||
(United Kingdom) | 111,100 | 11,333 | |
sponsored ADR (b) | 1,345,123 | 68,063 | |
Elanco Animal Health, Inc. (a) | 92,280 | 2,679 | |
TherapeuticsMD, Inc. (a)(b) | 355,705 | 587 | |
82,662 | |||
TOTAL HEALTH CARE | 1,727,592 | ||
INDUSTRIALS - 2.9% | |||
Aerospace & Defense - 0.2% | |||
Space Exploration Technologies Corp.: | |||
Class A (a)(d)(e) | 203,488 | 54,942 | |
Class C (a)(d)(e) | 7,092 | 1,915 | |
56,857 | |||
Airlines - 0.4% | |||
Copa Holdings SA Class A | 1,323,840 | 102,426 | |
Wheels Up Partners Holdings LLC Series B (a)(d)(e)(g) | 1,760,377 | 7,094 | |
109,520 | |||
Commercial Services & Supplies - 0.2% | |||
Copart, Inc. (a) | 307,474 | 33,745 | |
Waste Connection, Inc. (United States) | 223,728 | 22,039 | |
55,784 | |||
Industrial Conglomerates - 0.1% | |||
Roper Technologies, Inc. | 28,147 | 11,059 | |
Professional Services - 0.4% | |||
Verisk Analytics, Inc. | 613,341 | 112,548 | |
Road & Rail - 1.6% | |||
CSX Corp. | 1,020,625 | 87,524 | |
Lyft, Inc. (a) | 2,505,012 | 111,373 | |
Uber Technologies, Inc. (a) | 4,312,682 | 219,645 | |
418,542 | |||
TOTAL INDUSTRIALS | 764,310 | ||
INFORMATION TECHNOLOGY - 41.2% | |||
IT Services - 2.7% | |||
Fidelity National Information Services, Inc. | 236,472 | 29,195 | |
Gartner, Inc. (a) | 1,185,072 | 180,024 | |
MasterCard, Inc. Class A | 559,657 | 177,014 | |
MongoDB, Inc. Class A (a) | 117,660 | 43,488 | |
PayPal Holdings, Inc. (a) | 896,581 | 210,078 | |
Reply SpA | 253,800 | 31,108 | |
Square, Inc. (a) | 180,900 | 39,067 | |
Twilio, Inc. Class A (a) | 36,200 | 13,011 | |
Visa, Inc. Class A | 47,729 | 9,224 | |
732,209 | |||
Semiconductors & Semiconductor Equipment - 10.8% | |||
Advanced Micro Devices, Inc. (a) | 1,612,957 | 138,134 | |
Analog Devices, Inc. | 460,773 | 67,886 | |
Applied Materials, Inc. | 479,080 | 46,317 | |
Array Technologies, Inc. | 191,504 | 7,806 | |
ASML Holding NV | 382,577 | 204,357 | |
Lam Research Corp. | 209,680 | 101,475 | |
Marvell Technology Group Ltd. | 9,088,548 | 467,697 | |
Micron Technology, Inc. (a) | 2,682,437 | 209,954 | |
NVIDIA Corp. | 1,209,026 | 628,198 | |
NXP Semiconductors NV | 2,601,707 | 417,496 | |
Qualcomm, Inc. | 2,702,830 | 422,398 | |
Skyworks Solutions, Inc. | 96,926 | 16,405 | |
Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR | 1,516,267 | 184,257 | |
2,912,380 | |||
Software - 15.9% | |||
Adobe, Inc. (a) | 658,062 | 301,899 | |
ANSYS, Inc. (a) | 155,554 | 55,124 | |
Aspen Technology, Inc. (a) | 1,240,593 | 166,115 | |
Atom Tickets LLC (a)(d)(e)(g) | 516,103 | 320 | |
Autodesk, Inc. (a) | 396,435 | 109,983 | |
Cadence Design Systems, Inc. (a) | 111,959 | 14,598 | |
Dropbox, Inc. Class A (a) | 200,048 | 4,527 | |
Duck Creek Technologies, Inc. (a)(b) | 25,696 | 1,242 | |
Dynatrace, Inc. (a) | 280,102 | 11,627 | |
Elastic NV (a) | 1,649,508 | 250,659 | |
Epic Games, Inc. (d)(e) | 23,000 | 13,225 | |
HIVE Blockchain Technologies Ltd. (a)(b) | 2,610,350 | 4,920 | |
Intuit, Inc. | 401,553 | 145,053 | |
Kuaishou Technology (a) | 257,400 | 3,818 | |
Manhattan Associates, Inc. (a) | 782,849 | 88,642 | |
Microsoft Corp. | 11,232,855 | 2,605,573 | |
NICE Systems Ltd. sponsored ADR (a) | 235,575 | 61,551 | |
Ping Identity Holding Corp. (a)(b) | 2,740,192 | 81,959 | |
Salesforce.com, Inc. (a) | 997,109 | 224,908 | |
Splunk, Inc. (a) | 493,585 | 81,456 | |
Synopsys, Inc. (a) | 112,749 | 28,802 | |
Workday, Inc. Class A (a) | 127,166 | 28,934 | |
4,284,935 | |||
Technology Hardware, Storage & Peripherals - 11.8% | |||
Apple, Inc. | 22,984,106 | 3,032,990 | |
Samsung Electronics Co. Ltd. | 1,702,570 | 124,832 | |
Western Digital Corp. | 296,421 | 16,727 | |
3,174,549 | |||
TOTAL INFORMATION TECHNOLOGY | 11,104,073 | ||
MATERIALS - 0.8% | |||
Chemicals - 0.4% | |||
LG Chemical Ltd. | 95,450 | 78,262 | |
Livent Corp. (a)(b) | 2,089,145 | 38,064 | |
116,326 | |||
Paper & Forest Products - 0.4% | |||
Suzano Papel e Celulose SA (a) | 8,933,800 | 101,316 | |
TOTAL MATERIALS | 217,642 | ||
REAL ESTATE - 0.4% | |||
Equity Real Estate Investment Trusts (REITs) - 0.1% | |||
Equinix, Inc. | 46,420 | 34,349 | |
Real Estate Management & Development - 0.3% | |||
KE Holdings, Inc. ADR (a) | 1,271,684 | 75,157 | |
TOTAL REAL ESTATE | 109,506 | ||
TOTAL COMMON STOCKS | |||
(Cost $12,338,903) | 26,577,274 | ||
Preferred Stocks - 1.4% | |||
Convertible Preferred Stocks - 1.3% | |||
COMMUNICATION SERVICES - 0.0% | |||
Diversified Telecommunication Services - 0.0% | |||
Starry, Inc. Series B (a)(d)(e) | 1,811,120 | 2,590 | |
CONSUMER DISCRETIONARY - 0.6% | |||
Internet & Direct Marketing Retail - 0.6% | |||
One Kings Lane, Inc. Series E (Escrow) (a)(d)(e) | 648,635 | 259 | |
Reddit, Inc.: | |||
Series B (a)(d)(e) | 1,337,584 | 75,801 | |
Series C (a)(d)(e) | 300,673 | 17,039 | |
Series D (a)(d)(e) | 929,200 | 52,658 | |
The Honest Co., Inc. Series D (a)(d)(e) | 75,268 | 2,291 | |
Zomato Pvt Ltd.: | |||
Series B (c)(d)(e) | 16 | 86 | |
Series E (c)(d)(e) | 107,184 | 0 | |
Series G (c)(d)(e) | 10 | 54 | |
Series J7 (d)(e) | 619 | 3,313 | |
151,501 | |||
CONSUMER STAPLES - 0.3% | |||
Food & Staples Retailing - 0.3% | |||
Roofoods Ltd.: | |||
Series F (a)(d)(e) | 93,930 | 82,447 | |
Series H (d)(e) | 6,400 | 5,618 | |
88,065 | |||
INDUSTRIALS - 0.1% | |||
Aerospace & Defense - 0.1% | |||
Space Exploration Technologies Corp.: | |||
Series G (a)(d)(e) | 62,037 | 16,750 | |
Series H (a)(d)(e) | 65,670 | 17,731 | |
34,481 | |||
Professional Services - 0.0% | |||
YourPeople, Inc. Series C (a)(d)(e) | 335,546 | 64 | |
TOTAL INDUSTRIALS | 34,545 | ||
INFORMATION TECHNOLOGY - 0.3% | |||
IT Services - 0.1% | |||
AppNexus, Inc.: | |||
Series E (Escrow) (a)(d)(e) | 1,416,796 | 44 | |
Series F (Escrow) (a)(d)(e) | 90,913 | 25 | |
ByteDance Ltd. Series E1 (d)(e) | 174,336 | 19,103 | |
19,172 | |||
Software - 0.2% | |||
Dataminr, Inc. Series D (a)(d)(e) | 821,446 | 9,036 | |
Jet.Com, Inc. Series B1 (Escrow) (a)(d)(e) | 4,896,249 | 0 | |
Taboola.Com Ltd. Series E (a)(d) | 1,918,392 | 57,379 | |
66,415 | |||
TOTAL INFORMATION TECHNOLOGY | 85,587 | ||
REAL ESTATE - 0.0% | |||
Real Estate Management & Development - 0.0% | |||
WeWork Companies, Inc.: | |||
Series E (a)(d)(e) | 269,091 | 2,260 | |
Series F (a)(d)(e) | 14,513 | 122 | |
2,382 | |||
TOTAL CONVERTIBLE PREFERRED STOCKS | 364,670 | ||
Nonconvertible Preferred Stocks - 0.1% | |||
CONSUMER DISCRETIONARY - 0.0% | |||
Automobiles - 0.0% | |||
Waymo LLC Series A2 (d)(e) | 103,940 | 8,925 | |
HEALTH CARE - 0.1% | |||
Pharmaceuticals - 0.1% | |||
Castle Creek Pharmaceutical Holdings, Inc. Series A4 (a)(d)(e) | 30,303 | 19,854 | |
TOTAL NONCONVERTIBLE PREFERRED STOCKS | 28,779 | ||
TOTAL PREFERRED STOCKS | |||
(Cost $186,965) | 393,449 | ||
Money Market Funds - 0.3% | |||
Fidelity Securities Lending Cash Central Fund 0.09% (h)(i) | |||
(Cost $81,768) | 81,759,978 | 81,768 | |
TOTAL INVESTMENT IN SECURITIES - 100.4% | |||
(Cost $12,607,636) | 27,052,491 | ||
NET OTHER ASSETS (LIABILITIES) - (0.4)% | (120,815) | ||
NET ASSETS - 100% | $26,931,676 |
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) Security or a portion of the security purchased on a delayed delivery or when-issued basis.
(d) Restricted securities (including private placements) - 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 $531,778,000 or 2.0% of net assets.
(e) Level 3 security
(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 $93,839,000 or 0.3% of net assets.
(g) Investment is owned by a wholly-owned subsidiary (Subsidiary) that is treated as a corporation for U.S. tax purposes.
(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 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) |
Ant International Co. Ltd. Class C | 5/16/18 | $38,251 |
AppNexus, Inc. Series E (Escrow) | 8/1/14 - 9/17/14 | $0 |
AppNexus, Inc. Series F (Escrow) | 8/23/16 | $40 |
Atom Tickets LLC | 8/15/17 | $3,000 |
ByteDance Ltd. Series E1 | 11/18/20 | $19,103 |
Castle Creek Pharmaceutical Holdings, Inc. Series A4 | 9/29/16 | $10,011 |
Dataminr, Inc. Series D | 2/18/15 - 3/6/15 | $10,474 |
Epic Games, Inc. | 7/13/20 - 7/30/20 | $13,225 |
Jet.Com, Inc. Series B1 (Escrow) | 3/19/18 | $0 |
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 |
Roofoods Ltd. Series H | 1/15/21 | $5,618 |
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 |
The Honest Co., Inc. Series D | 8/3/15 | $3,444 |
Waymo LLC Series A2 | 5/8/20 | $8,925 |
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 |
Zomato Pvt Ltd. | 1/22/21 - 1/29/21 | $1,689 |
Zomato Pvt Ltd. Series B | 1/22/21 | $66 |
Zomato Pvt Ltd. Series E | 1/22/21 | $0 |
Zomato Pvt Ltd. Series G | 1/22/21 | $41 |
Zomato Pvt Ltd. Series J7 | 12/9/20 | $2,521 |
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 | $16 |
Fidelity Securities Lending Cash Central Fund | 180 |
Total | $196 |
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 (Amounts in thousands) | Value, beginning of period | Purchases | Sales Proceeds(a) | Dividend Income | Realized Gain (loss) | Change in Unrealized appreciation (depreciation) | Value, end of period |
Nanostring Technologies, Inc. | $69,485 | $228 | $2,082 | $-- | $980 | $63,991 | $-- |
Total | $69,485 | $228 | $2,082 | $-- | $980 | $63,991 | $-- |
(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 January 31, 2021, 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 | $5,371,201 | $5,368,611 | $-- | $2,590 |
Consumer Discretionary | 5,745,356 | 5,433,026 | 149,709 | 162,621 |
Consumer Staples | 481,568 | 234,816 | 158,687 | 88,065 |
Energy | 489,504 | 489,504 | -- | -- |
Financials | 817,603 | 664,479 | 94,486 | 58,638 |
Health Care | 1,747,446 | 1,716,259 | 11,333 | 19,854 |
Industrials | 798,855 | 700,359 | -- | 98,496 |
Information Technology | 11,189,660 | 11,086,710 | 61,197 | 41,753 |
Materials | 217,642 | 217,642 | -- | -- |
Real Estate | 111,888 | 109,506 | -- | 2,382 |
Money Market Funds | 81,768 | 81,768 | -- | -- |
Total Investments in Securities: | $27,052,491 | $26,102,680 | $475,412 | $474,399 |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value:
(Amounts in thousands) | |
Investments in Securities: | |
Beginning Balance | $476,197 |
Net Realized Gain (Loss) on Investment Securities | (10,924) |
Net Unrealized Gain (Loss) on Investment Securities | 72,661 |
Cost of Purchases | 29,070 |
Proceeds of Sales | (27,322) |
Amortization/Accretion | -- |
Transfers into Level 3 | -- |
Transfers out of Level 3 | (65,283) |
Ending Balance | $474,399 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2021 | $63,081 |
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 | 85.2% |
Netherlands | 3.9% |
Cayman Islands | 2.7% |
India | 1.8% |
Bermuda | 1.7% |
United Kingdom | 1.2% |
Others (Individually Less Than 1%) | 3.5% |
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) | January 31, 2021 (Unaudited) | |
Assets | ||
Investment in securities, at value (including securities loaned of $75,884) — See accompanying schedule: Unaffiliated issuers (cost $12,525,868) | $26,970,723 | |
Fidelity Central Funds (cost $81,768) | 81,768 | |
Total Investment in Securities (cost $12,607,636) | $27,052,491 | |
Receivable for investments sold | 92,981 | |
Receivable for fund shares sold | 22,606 | |
Dividends receivable | 5,328 | |
Distributions receivable from Fidelity Central Funds | 124 | |
Prepaid expenses | 25 | |
Other receivables | 730 | |
Total assets | 27,174,285 | |
Liabilities | ||
Payable to custodian bank | $2,647 | |
Payable for investments purchased | ||
Regular delivery | 88,921 | |
Delayed delivery | 1,514 | |
Payable for fund shares redeemed | 29,227 | |
Accrued management fee | 13,921 | |
Other affiliated payables | 2,487 | |
Other payables and accrued expenses | 22,148 | |
Collateral on securities loaned | 81,744 | |
Total liabilities | 242,609 | |
Net Assets | $26,931,676 | |
Net Assets consist of: | ||
Paid in capital | $11,259,972 | |
Total accumulated earnings (loss) | 15,671,704 | |
Net Assets | $26,931,676 | |
Net Asset Value and Maximum Offering Price | ||
OTC: | ||
Net Asset Value, offering price and redemption price per share ($19,663,652 ÷ 1,116,920 shares) | $17.61 | |
Class K: | ||
Net Asset Value, offering price and redemption price per share ($7,268,024 ÷ 405,424 shares) | $17.93 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Amounts in thousands | Six months ended January 31, 2021 (Unaudited) | |
Investment Income | ||
Dividends | $64,753 | |
Income from Fidelity Central Funds (including $180 from security lending) | 196 | |
Total income | 64,949 | |
Expenses | ||
Management fee | ||
Basic fee | $74,683 | |
Performance adjustment | 10,932 | |
Transfer agent fees | 13,639 | |
Accounting fees | 958 | |
Custodian fees and expenses | 391 | |
Independent trustees' fees and expenses | 61 | |
Registration fees | 180 | |
Audit | 75 | |
Legal | 31 | |
Interest | 15 | |
Miscellaneous | 60 | |
Total expenses before reductions | 101,025 | |
Expense reductions | (230) | |
Total expenses after reductions | 100,795 | |
Net investment income (loss) | (35,846) | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 1,518,018 | |
Fidelity Central Funds | (4) | |
Other affiliated issuers | 980 | |
Foreign currency transactions | 286 | |
Total net realized gain (loss) | 1,519,280 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers (net of decrease in deferred foreign taxes of $8,329) | 3,314,524 | |
Affiliated issuers | 63,991 | |
Assets and liabilities in foreign currencies | (31) | |
Total change in net unrealized appreciation (depreciation) | 3,378,484 | |
Net gain (loss) | 4,897,764 | |
Net increase (decrease) in net assets resulting from operations | $4,861,918 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Amounts in thousands | Six months ended January 31, 2021 (Unaudited) | Year ended July 31, 2020 |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $(35,846) | $(7,474) |
Net realized gain (loss) | 1,519,280 | 2,487,162 |
Change in net unrealized appreciation (depreciation) | 3,378,484 | 3,945,699 |
Net increase (decrease) in net assets resulting from operations | 4,861,918 | 6,425,387 |
Distributions to shareholders | (1,653,656) | (1,522,641) |
Share transactions - net increase (decrease) | (167,574) | (929,542) |
Total increase (decrease) in net assets | 3,040,688 | 3,973,204 |
Net Assets | ||
Beginning of period | 23,890,988 | 19,917,784 |
End of period | $26,931,676 | $23,890,988 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity OTC Portfolio
Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
2021 | 2020 | 2019 | 2018 A | 2017 A | 2016 A | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $15.61 | $12.45 | $12.50 | $10.57 | $8.53 | $8.70 |
Income from Investment Operations | ||||||
Net investment income (loss)B | (.03) | (.01) | (.01) | (.02) | (.02) | (.01) |
Net realized and unrealized gain (loss) | 3.12 | 4.14 | .75 | 2.48 | 2.33 | .29 |
Total from investment operations | 3.09 | 4.13 | .74 | 2.46 | 2.31 | .28 |
Distributions from net investment income | (.01) | – | – | – | – | – |
Distributions from net realized gain | (1.08) | (.97) | (.79) | (.53) | (.27) | (.45) |
Total distributions | (1.09) | (.97) | (.79) | (.53) | (.27) | (.45) |
Net asset value, end of period | $17.61 | $15.61 | $12.45 | $12.50 | $10.57 | $8.53 |
Total ReturnC,D | 20.89% | 35.79% | 6.43% | 24.34% | 27.97% | 3.68% |
Ratios to Average Net AssetsE,F | ||||||
Expenses before reductions | .81%G | .87% | .88% | .88% | .81% | .91% |
Expenses net of fee waivers, if any | .81%G | .87% | .88% | .88% | .81% | .91% |
Expenses net of all reductions | .81%G | .87% | .88% | .88% | .81% | .90% |
Net investment income (loss) | (.30)%G | (.07)% | (.10)% | (.17)% | (.16)% | (.07)% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $19,664 | $16,817 | $13,166 | $13,340 | $12,136 | $9,845 |
Portfolio turnover rateH,I | 24%G | 48% | 34% | 38% | 71% | 56% |
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 for periods of less than one year are not annualized.
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
G Annualized
H Portfolio turnover rate excludes securities received or delivered in-kind.
I Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
See accompanying notes which are an integral part of the financial statements.
Fidelity OTC Portfolio Class K
Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
2021 | 2020 | 2019 | 2018 A | 2017 A | 2016 A | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $15.88 | $12.64 | $12.67 | $10.70 | $8.62 | $8.79 |
Income from Investment Operations | ||||||
Net investment income (loss)B | (.02) | –C | –C | (.01) | (.01) | –C |
Net realized and unrealized gain (loss) | 3.17 | 4.21 | .76 | 2.52 | 2.36 | .29 |
Total from investment operations | 3.15 | 4.21 | .76 | 2.51 | 2.35 | .29 |
Distributions from net investment income | (.01) | –C | – | – | – | – |
Distributions from net realized gain | (1.09) | (.97) | (.79) | (.54) | (.27) | (.46) |
Total distributions | (1.10) | (.97) | (.79) | (.54) | (.27) | (.46) |
Net asset value, end of period | $17.93 | $15.88 | $12.64 | $12.67 | $10.70 | $8.62 |
Total ReturnD,E | 20.94% | 35.94% | 6.50% | 24.48% | 28.12% | 3.80% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | .72%H | .78% | .79% | .78% | .70% | .79% |
Expenses net of fee waivers, if any | .72%H | .78% | .79% | .78% | .70% | .79% |
Expenses net of all reductions | .72%H | .78% | .78% | .77% | .70% | .79% |
Net investment income (loss) | (.22)%H | .03% | (.01)% | (.07)% | (.05)% | .05% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $7,268 | $7,074 | $6,752 | $7,288 | $3,662 | $3,508 |
Portfolio turnover rateI,J | 24%H | 48% | 34% | 38% | 71% | 56% |
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 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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
H Annualized
I Portfolio turnover rate excludes securities received or delivered in-kind.
J Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended January 31, 2021
(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 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 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 - Investment 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. Securities, including private placements or other restricted securities, for which observable inputs are not available are valued using alternate valuation approaches, including the market approach, the income approach and cost approach, and are categorized as Level 3 in the hierarchy. The market approach considers factors including the price of recent investments in the same or a similar security or financial metrics of comparable securities. The income approach considers factors including expected future cash flows, security specific risks and corresponding discount rates. The cost approach considers factors including the value of the security's underlying assets and liabilities.
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 | $474,399 | Market comparable | Enterprise value/Sales multiple (EV/S) | 1.9 - 23.2 / 18.4 | Increase |
Discount rate | 25.0% - 75.0% / 49.9% | Decrease | |||
Premium rate | 1.3% - 90.0% / 64.4% | Increase | |||
Discount for lack of marketability | 10.0% | Decrease | |||
Conversion ratio | 1.2 | Increase | |||
Liquidity preference | $4.03 | Increase | |||
Recovery value | Recovery value | 0.0% - 0.3% / 0.1% | Increase | ||
Market approach | Transaction price | $0.00 - $5,352.73 / $585.50 | Increase | ||
Premium rate | 59.0% | Increase | |||
Expected distribution | $0.40 | 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 January 31, 2021, as well as a roll forward of Level 3 investments, is included at the end of the Fund's Schedule of Investments.
Foreign Currency. Certain Funds 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 certain Funds, certain independent Trustees have elected to defer receipt of a portion of their annual compensation. Deferred amounts are invested in affiliated mutual funds, are marked-to-market and remain in a fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees presented below are included in the accompanying Statement of Assets and Liabilities in other receivables and other payables and accrued expenses, as applicable.
Fidelity OTC Portfolio | $604 |
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests. The Fund is subject to a tax imposed on capital gains by certain countries in which it invests. An estimated deferred tax liability for net unrealized appreciation on the applicable securities is included in Other payables and accrued expenses on the Statement of Assets & Liabilities.
Distributions are declared and recorded on the ex-dividend date. Income and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to in-kind transactions, foreign currency transactions, passive foreign investment companies (PFIC), 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 | $14,543,977 |
Gross unrealized depreciation | (169,810) |
Net unrealized appreciation (depreciation) | $14,374,167 |
Tax cost | $12,678,324 |
Delayed Delivery Transactions and When-Issued Securities. During the period, certain Funds 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. Securities purchased on a delayed delivery or when-issued basis are identified as such in the Schedule of Investments. Compensation for interest forgone in the purchase of a delayed delivery or when-issued debt security may be received. With respect to purchase commitments, each applicable Fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Payables and receivables associated with the purchases and sales of delayed delivery securities having the same coupon, settlement date and broker are offset. Delayed delivery or when-issued securities that have been purchased from and sold to different brokers are reflected as both payables and receivables in the Statement of Assets and Liabilities under the caption "Delayed delivery", as applicable. 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 (including Private Placements). 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 Funds included in the table below hold certain investments through a wholly-owned subsidiary ("Subsidiary"), which may be subject to federal and state taxes upon disposition.
As of period end, investments in Subsidiaries were as follows:
$ Amount | % of Net Assets | |
Fidelity OTC Portfolio | 7,414 | .03 |
The financial statements have been consolidated to include the Subsidiary accounts where applicable. Accordingly, all inter-company transactions and balances have been eliminated.
At period end, any estimated tax liability for these investments is presented as "Deferred taxes" in the Statement of Assets and Liabilities and included in "Change in net unrealized appreciation (depreciation) on investment securities" in the Statement of Operations. The tax liability incurred may differ materially depending on conditions when these investments are disposed. Any cash held by a Subsidiary is restricted as to its use and is presented as "Restricted cash" in the Statement of Assets and Liabilities, if applicable.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and in-kind transactions, are noted in the table below.
Purchases ($) | Sales ($) | |
Fidelity OTC Portfolio | 3,121,924 | 4,367,077 |
Unaffiliated Redemptions In-Kind. During the period, 28,311 shares of the Fund were redeemed in-kind for investments and cash with a value of $497,557. The net realized gain of $342,722 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. The Fund recognized no gain or loss for federal income tax purposes.
Prior Fiscal Year Unaffiliated Redemptions In-Kind. During the prior period, 67,944 shares of the Fund were redeemed in-kind for investments and cash with a value of $904,757. The Fund had a net realized gain of $518,791 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 LLC (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 .23% during the period. The group fee rate is based upon the monthly average net assets of a group of registered investment companies with which the investment adviser has management contracts. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of +/- .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of OTC as compared to its benchmark index, the Nasdaq Composite Index, over the same 36 month performance period. For the reporting period, the total annualized management fee rate, including the performance adjustment, was .66% 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 LLC (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of OTC, 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(a) | |
OTC | $12,028 | .13 |
Class K | 1,611 | .04 |
$13,639 |
(a) Annualized
Accounting 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. For the period, the fees were equivalent to the following annualized rates:
% of Average Net Assets | |
Fidelity OTC Portfolio | .01 |
Brokerage Commissions. A portion of portfolio transactions were placed 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 as follows:
Amount | |
Fidelity OTC Portfolio | $46 |
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 LLC (FMR), or other affiliated entities of FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the Fund to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. 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 | |
Fidelity OTC Portfolio | Borrower | $18,932 | .33% | $15 |
Interfund Trades. Funds 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, and amounted to $389,569 and $324,244, respectively.
Prior Fiscal Year Affiliated Redemptions In-Kind. During the prior period, 13,875 shares of the Fund were redeemed in-kind for investments and cash with a value of $170,108. The Fund had a net realized gain of $91,387 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.
6. Committed Line of Credit.
Certain Funds participate 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 participating funds have agreed to pay commitment fees on their pro-rata portion of the line of credit, which are reflected in Miscellaneous expenses on the Statement of Operations, and are listed below.
Amount | |
Fidelity OTC Portfolio | $26 |
During the period, there were no borrowings on this line of credit.
7. Security Lending.
Funds lend portfolio securities from time to time in order to earn additional income. Lending agents are used, including National Financial Services (NFS), an affiliate of the investment adviser. Pursuant to a securities lending agreement, NFS will receive a fee, which is capped at 9.9% of a fund's daily lending revenue, for its services as lending agent. A fund may lend securities to certain qualified borrowers, including NFS. On the settlement date of the loan, a 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 a fund and any additional required collateral is delivered to a fund on the next business day. A 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, a fund may apply collateral received from the borrower against the obligation. A 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. Any loaned securities are identified as such in the Schedule of Investments, and the value of loaned securities and cash collateral at period end, as applicable, are presented in the 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. Affiliated security lending activity, if any, was as follows:
Total Security Lending Income Fees Paid to NFS | Security Lending Income From Securities Loaned to NFS | Value of Securities Loaned to NFS at Period End | |
Fidelity OTC Portfolio | $19 | $19 | $– |
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. Any open loans, including accrued interest, at period end are presented under the caption "Notes payable" in the Statement of Assets and Liabilities, if applicable. Activity in this program during the period for which loans were outstanding was as follows:
Average Loan Balance | Weighted Average Interest Rate | Interest Expense | |
Fidelity OTC Portfolio | $3,373 | .59% | $–(a) |
(a) In the amount of less than five hundred dollars.
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 expenses. This amount totaled $190 for the period.
In addition, during the period the investment adviser or an affiliate reimbursed and/or waived a portion of fund-level operating expenses in the amount of $40.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended January 31, 2021 | Year ended July 31, 2020 | |
Distributions to shareholders | ||
OTC | $1,174,209 | $1,018,787 |
Class K | 479,447 | 503,854 |
Total | $1,653,656 | $1,522,641 |
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 | |
Six months ended January 31, 2021 | Year ended July 31, 2020 | Six months ended January 31, 2021 | Year ended July 31, 2020 | |
OTC | ||||
Shares sold | 97,855 | 238,435 | $1,627,704 | $3,042,001 |
Reinvestment of distributions | 72,811 | 81,896 | 1,115,245 | 965,898 |
Shares redeemed | (131,407) | (300,179)(a) | (2,182,960) | (3,722,853)(a) |
Net increase (decrease) | 39,259 | 20,152 | $559,989 | $285,046 |
Class K | ||||
Shares sold | 23,105 | 87,490 | $392,812 | $1,115,420 |
Reinvestment of distributions | 30,755 | 42,016 | 479,447 | 503,854 |
Shares redeemed | (93,989)(b) | (218,079)(a),(c) | (1,599,822)(b) | (2,833,862)(a),(c) |
Net increase (decrease) | (40,129) | (88,573) | $(727,563) | $(1,214,588) |
(a) Amount includes in-kind redemptions (see the Prior Fiscal Year Unaffiliated Redemptions In-Kind note for additional details).
(b) Amount includes in-kind redemptions (see the Unaffiliated Redemptions In-Kind note for additional details).
(c) Amount includes in-kind redemptions (see the Prior Fiscal Year Affiliated 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.
13. Coronavirus (COVID-19) Pandemic.
An outbreak of COVID-19 first detected in China during December 2019 has since spread globally and was declared a pandemic by the World Health Organization during March 2020. Developments that disrupt global economies and financial markets, such as the COVID-19 pandemic, may magnify factors that affect the Fund's performance.
Shareholder Expense Example
As a shareholder, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or redemption proceeds, as applicable and (2) ongoing costs, which generally include 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 a fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2020 to January 31, 2021).
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 for a class/Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. If any fund is a shareholder of any underlying mutual funds or exchange-traded funds (ETFs) (the Underlying Funds), such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses incurred presented in the table. These fees and expenses are not included in the 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 actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the 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. If any fund is a shareholder of any Underlying Funds, such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses as presented in the table. These fees and expenses are not included in the 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 August 1, 2020 | Ending Account Value January 31, 2021 | Expenses Paid During Period-B August 1, 2020 to January 31, 2021 | |
Fidelity OTC Portfolio | ||||
OTC | .81% | |||
Actual | $1,000.00 | $1,208.90 | $4.51 | |
Hypothetical-C | $1,000.00 | $1,021.12 | $4.13 | |
Class K | .72% | |||
Actual | $1,000.00 | $1,209.40 | $4.01 | |
Hypothetical-C | $1,000.00 | $1,021.58 | $3.67 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/ 365 (to reflect the one-half year period). The fees and expenses of any Underlying Funds are not included in each annualized expense ratio.
C 5% return per year before expenses
Board Approval of Investment Advisory Contracts
Fidelity OTC Portfolio
At its January 2021 meeting, the Board of Trustees, including the Independent Trustees (together, the Board), voted to continue the management contract with Fidelity Management & Research Company LLC (FMR), and the sub-advisory agreements and sub-subadvisory agreements, in each case, where applicable (together, the Advisory Contracts) for the fund for four months from February 1, 2021 through May 31, 2021, in connection with changes to the Board's meeting calendar.The Board considered that the approval of the fund's Advisory Contracts will not result in any changes in (i) the investment process or strategies employed in the management of the fund's assets; (ii) the fees and expenses paid by shareholders; (iii) the nature, extent or quality of services provided under the fund's Advisory Contracts; or (iv) the day-to-day management of the fund or the persons primarily responsible for such management. The Board also considered that since its last approval of the fund's Advisory Contracts, FMR had provided additional information on the fund in support of the annual contract renewal process, including competitive analyses on total expenses and management fees and in-depth reviews of fund performance and fund profitability information. The Board also considered the findings of certain ad hoc committees that had been previously formed to discuss matters relevant to all of the Fidelity funds, including economies of scale, fall-out benefits and retail vs. institutional funds. The Board concluded that the fund's Advisory Contracts are fair and reasonable, and that the fund's Advisory Contracts should be renewed, without modification, through May 31, 2021, with the understanding that the Board will consider the annual renewal for a full one year period in May 2021.In connection with its consideration of future renewals of the fund's Advisory Contracts, the Board will consider: (i) the nature, extent and quality of services provided to the funds, including shareholder and administrative services and investment performance; (ii) the competitiveness of the management fee and total expenses for the fund; (iii) the costs of the services and profitability, including the revenues earned and the expenses incurred in conducting the business of developing, marketing, distributing, managing, administering, and servicing the fund and its shareholders, to the extent applicable; and (iv) whether there have been economies of scale in respect of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is the potential for realization of any further economies.Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board ultimately concluded that the fund's management fee structure is fair and reasonable, and that the continuation of the fund's Advisory Contracts should be approved for four months from February 1, 2021 through May 31, 2021.OTC-SANN-0321
1.700332.123
Fidelity® Growth & Income Portfolio
Semi-Annual Report
January 31, 2021
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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.
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. © 2021 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.
Note to Shareholders:
Early in 2020, the outbreak and spread of a new coronavirus emerged as a public health emergency that had a major influence on financial markets, primarily based on its impact on the global economy and the outlook for corporate earnings. The virus causes a respiratory disease known as COVID-19. On March 11, the World Health Organization declared the COVID-19 outbreak a pandemic, citing sustained risk of further global spread.
In the weeks following, as the crisis worsened, we witnessed an escalating human tragedy with wide-scale social and economic consequences from coronavirus-containment measures. The outbreak of COVID-19 prompted a number of measures to limit the spread, including travel and border restrictions, quarantines, and restrictions on large gatherings. In turn, these resulted in lower consumer activity, diminished demand for a wide range of products and services, disruption in manufacturing and supply chains, and – given the wide variability in outcomes regarding the outbreak – significant market uncertainty and volatility. Amid the turmoil, global governments and central banks took unprecedented action to help support consumers, businesses, and the broader economies, and to limit disruption to financial systems.
The situation continues to unfold, and the extent and duration of its impact on financial markets and the economy remain highly uncertain. Extreme events such as the coronavirus crisis are “exogenous shocks” that can have significant adverse effects on mutual funds and their investments. Although multiple asset classes may be affected by market disruption, the duration and impact may not be the same for all types of assets.
Fidelity is committed to helping you stay informed amid news about COVID-19 and during increased market volatility, and we’re taking extra steps to be responsive to customer needs. We encourage you to visit our websites, where we offer ongoing updates, commentary, and analysis on the markets and our funds.
Investment Summary (Unaudited)
Top Ten Stocks as of January 31, 2021
% of fund's net assets | |
Microsoft Corp.(a) | 6.4 |
General Electric Co.(a) | 5.7 |
Exxon Mobil Corp. | 3.8 |
Apple, Inc. | 3.6 |
Comcast Corp. Class A | 3.5 |
Wells Fargo & Co. | 3.5 |
Bank of America Corp.(a) | 3.0 |
Altria Group, Inc. | 3.0 |
Qualcomm, Inc.(a) | 2.6 |
Bristol-Myers Squibb Co. | 2.1 |
37.2 |
(a) Security or a portion of the security is pledged as collateral for call options written.
Top Five Market Sectors as of January 31, 2021
% of fund's net assets | |
Information Technology | 20.9 |
Industrials | 16.5 |
Financials | 16.4 |
Health Care | 15.9 |
Communication Services | 8.0 |
Asset Allocation (% of fund's net assets)
As of January 31, 2021*,** | ||
Stocks | 99.5% | |
Convertible Securities | 0.4% | |
Other Investments | 0.1% |
* Foreign investments - 14.1%
** Written options - (0.0)%
Percentages shown as 0.0% may reflect amounts less than 0.05%.
Schedule of Investments January 31, 2021 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.5% | |||
Shares | Value (000s) | ||
COMMUNICATION SERVICES - 8.0% | |||
Diversified Telecommunication Services - 0.9% | |||
Verizon Communications, Inc. | 1,170,174 | $64,067 | |
Entertainment - 3.0% | |||
Activision Blizzard, Inc. | 418,100 | 38,047 | |
Nintendo Co. Ltd. ADR | 275,600 | 19,918 | |
The Walt Disney Co. | 544,000 | 91,484 | |
Vivendi SA | 2,128,100 | 65,390 | |
214,839 | |||
Media - 4.1% | |||
Comcast Corp. Class A | 5,123,100 | 253,952 | |
Interpublic Group of Companies, Inc. | 1,822,100 | 43,858 | |
297,810 | |||
TOTAL COMMUNICATION SERVICES | 576,716 | ||
CONSUMER DISCRETIONARY - 3.3% | |||
Auto Components - 0.8% | |||
BorgWarner, Inc. (a) | 1,342,797 | 56,384 | |
Automobiles - 0.2% | |||
Harley-Davidson, Inc. | 334,000 | 13,390 | |
Hotels, Restaurants & Leisure - 0.3% | |||
Marriott International, Inc. Class A | 46,600 | 5,420 | |
Starbucks Corp. | 135,000 | 13,069 | |
18,489 | |||
Household Durables - 0.8% | |||
Sony Corp. sponsored ADR | 137,100 | 13,122 | |
Whirlpool Corp. | 247,500 | 45,810 | |
58,932 | |||
Specialty Retail - 1.2% | |||
Lowe's Companies, Inc. | 532,179 | 88,794 | |
Textiles, Apparel & Luxury Goods - 0.0% | |||
Puma AG | 30,554 | 2,995 | |
Tapestry, Inc. | 3,700 | 117 | |
3,112 | |||
TOTAL CONSUMER DISCRETIONARY | 239,101 | ||
CONSUMER STAPLES - 7.3% | |||
Beverages - 2.1% | |||
Anheuser-Busch InBev SA NV ADR (a) | 164,100 | 10,287 | |
Diageo PLC sponsored ADR | 200,900 | 32,198 | |
Keurig Dr. Pepper, Inc. | 475,100 | 15,108 | |
Pernod Ricard SA | 70,100 | 13,245 | |
Remy Cointreau SA | 41,114 | 7,639 | |
The Coca-Cola Co. | 1,507,103 | 72,567 | |
151,044 | |||
Food & Staples Retailing - 0.7% | |||
Sysco Corp. | 685,546 | 49,023 | |
Food Products - 0.2% | |||
Lamb Weston Holdings, Inc. | 181,600 | 13,566 | |
Household Products - 0.5% | |||
Colgate-Palmolive Co. | 75,300 | 5,873 | |
Energizer Holdings, Inc. | 250,700 | 10,991 | |
Spectrum Brands Holdings, Inc. | 281,300 | 21,258 | |
38,122 | |||
Personal Products - 0.1% | |||
Unilever PLC | 183,200 | 10,649 | |
Tobacco - 3.7% | |||
Altria Group, Inc. | 5,129,500 | 210,720 | |
British American Tobacco PLC sponsored ADR (a) | 1,416,000 | 51,755 | |
262,475 | |||
TOTAL CONSUMER STAPLES | 524,879 | ||
ENERGY - 7.3% | |||
Oil, Gas & Consumable Fuels - 7.3% | |||
Cabot Oil & Gas Corp. | 352,900 | 6,469 | |
Cenovus Energy, Inc. (a) | 37,200 | 220 | |
Cenovus Energy, Inc. (Canada) | 8,826,000 | 52,110 | |
Exxon Mobil Corp. | 6,041,800 | 270,914 | |
Hess Corp. | 1,518,600 | 81,974 | |
Kosmos Energy Ltd. | 5,025,975 | 11,158 | |
Magellan Midstream Partners LP | 170,900 | 7,598 | |
Phillips 66 Co. | 486,900 | 33,012 | |
Royal Dutch Shell PLC Class B sponsored ADR | 1,679,300 | 58,591 | |
522,046 | |||
FINANCIALS - 16.4% | |||
Banks - 11.1% | |||
Bank of America Corp. (b) | 7,359,856 | 218,220 | |
JPMorgan Chase & Co. (b) | 699,792 | 90,042 | |
M&T Bank Corp. | 129,300 | 17,128 | |
PNC Financial Services Group, Inc. | 626,954 | 89,980 | |
Truist Financial Corp. | 1,596,530 | 76,602 | |
U.S. Bancorp | 1,205,973 | 51,676 | |
Wells Fargo & Co. | 8,465,241 | 252,941 | |
796,589 | |||
Capital Markets - 3.5% | |||
Brookfield Asset Management, Inc. Class A | 351,535 | 13,654 | |
KKR & Co. LP | 656,443 | 25,568 | |
Morgan Stanley (b) | 402,797 | 27,008 | |
Northern Trust Corp. | 974,464 | 86,912 | |
Raymond James Financial, Inc. | 306,300 | 30,609 | |
S&P Global, Inc. | 1,100 | 349 | |
State Street Corp. (b) | 1,002,527 | 70,177 | |
254,277 | |||
Consumer Finance - 0.5% | |||
Discover Financial Services (b) | 361,900 | 30,233 | |
Shriram Transport Finance Co. Ltd. | 189,726 | 3,363 | |
33,596 | |||
Insurance - 0.9% | |||
American Financial Group, Inc. | 46,000 | 4,330 | |
Chubb Ltd. | 161,500 | 23,526 | |
Marsh & McLennan Companies, Inc. | 192,907 | 21,202 | |
Old Republic International Corp. | 207,900 | 3,763 | |
The Travelers Companies, Inc. | 109,500 | 14,925 | |
67,746 | |||
Thrifts & Mortgage Finance - 0.4% | |||
Essent Group Ltd. | 288,400 | 12,064 | |
Radian Group, Inc. | 889,068 | 17,070 | |
29,134 | |||
TOTAL FINANCIALS | 1,181,342 | ||
HEALTH CARE - 15.5% | |||
Biotechnology - 0.4% | |||
AbbVie, Inc. | 165,900 | 17,001 | |
Alexion Pharmaceuticals, Inc. (c) | 32,933 | 5,050 | |
Intercept Pharmaceuticals, Inc. (c) | 230,704 | 8,130 | |
30,181 | |||
Health Care Equipment & Supplies - 1.1% | |||
Becton, Dickinson & Co. | 118,316 | 30,974 | |
Boston Scientific Corp. (c) | 1,071,300 | 37,967 | |
GN Store Nord A/S | 54,000 | 4,141 | |
Sonova Holding AG Class B | 26,112 | 6,314 | |
79,396 | |||
Health Care Providers & Services - 6.7% | |||
AmerisourceBergen Corp. | 203,100 | 21,163 | |
Cardinal Health, Inc. | 897,600 | 48,228 | |
Cigna Corp. | 458,700 | 99,561 | |
CVS Health Corp. | 1,353,904 | 97,007 | |
McKesson Corp. | 492,887 | 85,994 | |
Patterson Companies, Inc. | 653,170 | 20,692 | |
UDG Healthcare PLC (United Kingdom) | 202,900 | 2,269 | |
UnitedHealth Group, Inc. | 309,400 | 103,210 | |
478,124 | |||
Pharmaceuticals - 7.3% | |||
Bayer AG | 1,379,035 | 83,463 | |
Bristol-Myers Squibb Co. | 2,495,910 | 153,324 | |
Eli Lilly & Co. | 80,200 | 16,679 | |
GlaxoSmithKline PLC sponsored ADR | 2,654,512 | 98,881 | |
Johnson & Johnson | 903,459 | 147,381 | |
Sanofi SA sponsored ADR | 599,600 | 28,307 | |
528,035 | |||
TOTAL HEALTH CARE | 1,115,736 | ||
INDUSTRIALS - 16.5% | |||
Aerospace & Defense - 1.9% | |||
Airbus Group NV | 103,600 | 10,418 | |
General Dynamics Corp. | 156,900 | 23,014 | |
Huntington Ingalls Industries, Inc. | 121,000 | 19,037 | |
MTU Aero Engines Holdings AG | 41,300 | 9,623 | |
Raytheon Technologies Corp. | 216,482 | 14,446 | |
Safran SA (c) | 97,900 | 12,307 | |
The Boeing Co. | 248,400 | 48,237 | |
137,082 | |||
Air Freight & Logistics - 2.5% | |||
DSV Panalpina A/S | 27,100 | 4,243 | |
Expeditors International of Washington, Inc. | 9,200 | 824 | |
FedEx Corp. | 152,100 | 35,795 | |
United Parcel Service, Inc. Class B | 871,104 | 135,021 | |
175,883 | |||
Building Products - 0.4% | |||
A.O. Smith Corp. | 73,200 | 3,975 | |
Johnson Controls International PLC | 444,500 | 22,145 | |
26,120 | |||
Commercial Services & Supplies - 0.5% | |||
Healthcare Services Group, Inc. (a) | 815,289 | 26,432 | |
HNI Corp. | 127,100 | 4,100 | |
Interface, Inc. | 541,000 | 5,432 | |
Ritchie Bros. Auctioneers, Inc. | 17,500 | 1,033 | |
36,997 | |||
Electrical Equipment - 1.2% | |||
Acuity Brands, Inc. | 128,300 | 15,427 | |
Hubbell, Inc. Class B | 158,339 | 24,638 | |
Rockwell Automation, Inc. | 22,400 | 5,567 | |
Vertiv Holdings LLC (d) | 2,000,000 | 40,240 | |
85,872 | |||
Industrial Conglomerates - 6.1% | |||
3M Co. | 160,500 | 28,193 | |
General Electric Co. (b) | 38,749,827 | 413,848 | |
442,041 | |||
Machinery - 2.0% | |||
Caterpillar, Inc. | 70,000 | 12,799 | |
Cummins, Inc. | 60,700 | 14,229 | |
Donaldson Co., Inc. | 651,900 | 38,749 | |
Epiroc AB Class A | 272,200 | 5,230 | |
Flowserve Corp. | 332,700 | 11,831 | |
Fortive Corp. | 259,100 | 17,121 | |
Kardex AG | 7,390 | 1,643 | |
Nordson Corp. | 27,200 | 4,869 | |
Otis Worldwide Corp. | 99,241 | 6,416 | |
Stanley Black & Decker, Inc. | 68,300 | 11,849 | |
Westinghouse Air Brake Co. | 224,490 | 16,659 | |
141,395 | |||
Professional Services - 0.4% | |||
Equifax, Inc. | 72,600 | 12,858 | |
RELX PLC (London Stock Exchange) | 521,000 | 12,938 | |
Robert Half International, Inc. | 11,300 | 763 | |
26,559 | |||
Road & Rail - 0.6% | |||
J.B. Hunt Transport Services, Inc. | 42,740 | 5,755 | |
Knight-Swift Transportation Holdings, Inc. Class A | 996,900 | 39,876 | |
45,631 | |||
Trading Companies & Distributors - 0.9% | |||
Brenntag AG | 39,400 | 3,095 | |
Fastenal Co. | 160,600 | 7,322 | |
MSC Industrial Direct Co., Inc. Class A | 8,600 | 667 | |
Watsco, Inc. | 231,392 | 55,185 | |
66,269 | |||
TOTAL INDUSTRIALS | 1,183,849 | ||
INFORMATION TECHNOLOGY - 20.9% | |||
Electronic Equipment & Components - 0.3% | |||
CDW Corp. | 120,000 | 15,799 | |
Vontier Corp. (c) | 215,740 | 6,996 | |
22,795 | |||
IT Services - 4.5% | |||
Amadeus IT Holding SA Class A | 591,600 | 37,770 | |
DXC Technology Co. | 137,700 | 3,883 | |
Edenred SA | 347,600 | 18,885 | |
Fidelity National Information Services, Inc. | 537,500 | 66,360 | |
Genpact Ltd. | 591,500 | 22,643 | |
IBM Corp. | 221,000 | 26,323 | |
MasterCard, Inc. Class A | 29,200 | 9,236 | |
Unisys Corp. (c) | 912,118 | 21,790 | |
Visa, Inc. Class A | 585,679 | 113,182 | |
320,072 | |||
Semiconductors & Semiconductor Equipment - 4.5% | |||
Analog Devices, Inc. | 167,100 | 24,619 | |
Applied Materials, Inc. (b) | 200,700 | 19,404 | |
Intel Corp. | 491,700 | 27,294 | |
Lam Research Corp. | 24,000 | 11,615 | |
Marvell Technology Group Ltd. | 290,000 | 14,923 | |
NXP Semiconductors NV | 236,600 | 37,967 | |
Qualcomm, Inc. (b) | 1,201,546 | 187,778 | |
323,600 | |||
Software - 7.8% | |||
Microsoft Corp. (b) | 1,978,999 | 459,052 | |
Open Text Corp. | 183,100 | 8,202 | |
SAP SE sponsored ADR (a) | 635,500 | 80,200 | |
Temenos Group AG | 125,760 | 15,933 | |
563,387 | |||
Technology Hardware, Storage & Peripherals - 3.8% | |||
Apple, Inc. | 1,965,876 | 259,417 | |
Samsung Electronics Co. Ltd. | 185,220 | 13,580 | |
272,997 | |||
TOTAL INFORMATION TECHNOLOGY | 1,502,851 | ||
MATERIALS - 2.2% | |||
Chemicals - 1.4% | |||
DuPont de Nemours, Inc. (a)(b) | 821,100 | 65,236 | |
Nutrien Ltd. | 398,480 | 19,626 | |
PPG Industries, Inc. | 103,600 | 13,956 | |
98,818 | |||
Metals & Mining - 0.8% | |||
BHP Billiton Ltd. sponsored ADR (a) | 764,500 | 51,053 | |
Freeport-McMoRan, Inc. | 334,500 | 9,001 | |
60,054 | |||
TOTAL MATERIALS | 158,872 | ||
REAL ESTATE - 1.1% | |||
Equity Real Estate Investment Trusts (REITs) - 1.1% | |||
American Tower Corp. | 131,500 | 29,898 | |
CoreSite Realty Corp. | 100,400 | 13,498 | |
Equinix, Inc. | 7,400 | 5,476 | |
Public Storage | 3,000 | 683 | |
Simon Property Group, Inc. | 353,600 | 32,860 | |
82,415 | |||
UTILITIES - 1.0% | |||
Electric Utilities - 0.8% | |||
Duke Energy Corp. | 123,800 | 11,637 | |
Entergy Corp. | 153,000 | 14,585 | |
Exelon Corp. | 162,200 | 6,741 | |
Southern Co. | 399,700 | 23,550 | |
56,513 | |||
Multi-Utilities - 0.2% | |||
CenterPoint Energy, Inc. | 296,200 | 6,247 | |
Sempra Energy | 78,500 | 9,715 | |
15,962 | |||
TOTAL UTILITIES | 72,475 | ||
TOTAL COMMON STOCKS | |||
(Cost $5,634,688) | 7,160,282 | ||
Convertible Preferred Stocks - 0.3% | |||
HEALTH CARE - 0.3% | |||
Health Care Equipment & Supplies - 0.3% | |||
Becton, Dickinson & Co. 6.50% | 175,300 | 9,910 | |
Boston Scientific Corp. Series A 5.50% | 104,800 | 11,375 | |
TOTAL CONVERTIBLE PREFERRED STOCKS | |||
(Cost $19,254) | 21,285 | ||
Principal Amount (000s) | Value (000s) | ||
Convertible Bonds - 0.1% | |||
HEALTH CARE - 0.1% | |||
Biotechnology - 0.1% | |||
Intercept Pharmaceuticals, Inc. 2% 5/15/26 (Cost $10,819) | 14,007 | 9,855 | |
Shares | Value (000s) | ||
Other - 0.1% | |||
ENERGY - 0.1% | |||
Oil, Gas & Consumable Fuels – 0.1% | |||
Utica Shale Drilling Program (non-operating revenue interest) (d)(e)(f) | |||
(Cost $18,052) | 18,052,449 | 7,739 | |
Money Market Funds - 2.5% | |||
Fidelity Securities Lending Cash Central Fund 0.09% (g)(h) | |||
(Cost $176,230) | 176,212,851 | 176,230 | |
TOTAL INVESTMENT IN SECURITIES - 102.5% | |||
(Cost $5,859,043) | 7,375,391 | ||
NET OTHER ASSETS (LIABILITIES) - (2.5)% | (181,135) | ||
NET ASSETS - 100% | $7,194,256 |
Written Options | ||||||
Counterparty | Number of Contracts | Notional Amount (000s) | Exercise Price | Expiration Date | Value (000s) | |
Call Options | ||||||
Applied Materials, Inc. | Chicago Board Options Exchange | 461 | $4,457 | $105.00 | 3/19/21 | $(169) |
Applied Materials, Inc. | Chicago Board Options Exchange | 461 | 4,457 | 110.00 | 3/19/21 | (118) |
Bank of America Corp. | Chicago Board Options Exchange | 3,693 | 10,950 | 36.00 | 3/19/21 | (52) |
Bank of America Corp. | Chicago Board Options Exchange | 3,693 | 10,950 | 37.00 | 3/19/21 | (39) |
Bank of America Corp. | Chicago Board Options Exchange | 3,616 | 10,721 | 38.00 | 3/19/21 | (27) |
Discover Financial Services | Chicago Board Options Exchange | 540 | 4,511 | 105.00 | 2/19/21 | (9) |
DuPont de Nemours, Inc. | Chicago Board Options Exchange | 1,227 | 9,749 | 90.00 | 3/19/21 | (239) |
DuPont de Nemours, Inc. | Chicago Board Options Exchange | 86 | 683 | 95.00 | 3/19/21 | (10) |
General Electric Co. | Chicago Board Options Exchange | 19,181 | 20,485 | 13.00 | 3/19/21 | (422) |
JPMorgan Chase & Co. | Chicago Board Options Exchange | 691 | 8,891 | 145.00 | 3/19/21 | (92) |
JPMorgan Chase & Co. | Chicago Board Options Exchange | 309 | 3,976 | 160.00 | 3/19/21 | (13) |
Microsoft Corp. | Chicago Board Options Exchange | 999 | 23,173 | 240.00 | 3/19/21 | (736) |
Morgan Stanley | Chicago Board Options Exchange | 385 | 2,581 | 80.00 | 2/19/21 | (4) |
Qualcomm, Inc. | Chicago Board Options Exchange | 539 | 8,423 | 165.00 | 3/19/21 | (383) |
State Street Corp. | Chicago Board Options Exchange | 1,001 | 7,007 | 90.00 | 2/19/21 | (15) |
TOTAL WRITTEN OPTIONS | $(2,328) |
Legend
(a) Security or a portion of the security is on loan at period end.
(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 $131,015,000.
(c) Non-income producing
(d) Restricted securities (including private placements) - 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 $47,979,000 or 0.7% of net assets.
(e) Investment is owned by a wholly-owned subsidiary (Subsidiary) that is treated as a corporation for U.S. tax purposes.
(f) Level 3 security
(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 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) |
Utica Shale Drilling Program (non-operating revenue interest) | 10/5/16 - 9/1/17 | $18,052 |
Vertiv Holdings LLC | 2/6/20 | $20,000 |
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 | $22 |
Fidelity Securities Lending Cash Central Fund | 170 |
Total | $192 |
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 January 31, 2021, 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 | $576,716 | $576,716 | $-- | $-- |
Consumer Discretionary | 239,101 | 239,101 | -- | -- |
Consumer Staples | 524,879 | 524,879 | -- | -- |
Energy | 522,046 | 522,046 | -- | -- |
Financials | 1,181,342 | 1,181,342 | -- | -- |
Health Care | 1,137,021 | 1,032,273 | 104,748 | -- |
Industrials | 1,183,849 | 1,161,124 | 22,725 | -- |
Information Technology | 1,502,851 | 1,465,081 | 37,770 | -- |
Materials | 158,872 | 158,872 | -- | -- |
Real Estate | 82,415 | 82,415 | -- | -- |
Utilities | 72,475 | 72,475 | -- | -- |
Corporate Bonds | 9,855 | -- | 9,855 | -- |
Other | 7,739 | -- | -- | 7,739 |
Money Market Funds | 176,230 | 176,230 | -- | -- |
Total Investments in Securities: | $7,375,391 | $7,192,554 | $175,098 | $7,739 |
Derivative Instruments: | ||||
Liabilities | ||||
Written Options | $(2,328) | $(2,328) | $-- | $-- |
Total Liabilities | $(2,328) | $(2,328) | $-- | $-- |
Total Derivative Instruments: | $(2,328) | $(2,328) | $-- | $-- |
Value of Derivative Instruments
The following table is a summary of the Fund's value of derivative instruments by primary risk exposure as of January 31, 2021. 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 | $(2,328) |
Total Equity Risk | 0 | (2,328) |
Total Value of Derivatives | $0 | $(2,328) |
(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 | 85.9% |
United Kingdom | 3.7% |
Germany | 2.4% |
France | 2.1% |
Canada | 1.3% |
Others (Individually Less Than 1%) | 4.6% |
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) | January 31, 2021 (Unaudited) | |
Assets | ||
Investment in securities, at value (including securities loaned of $167,250) — See accompanying schedule: Unaffiliated issuers (cost $5,682,813) | $7,199,161 | |
Fidelity Central Funds (cost $176,230) | 176,230 | |
Total Investment in Securities (cost $5,859,043) | $7,375,391 | |
Restricted cash | 23 | |
Foreign currency held at value (cost $373) | 373 | |
Receivable for investments sold | 30,500 | |
Receivable for fund shares sold | 990 | |
Dividends receivable | 7,725 | |
Interest receivable | 59 | |
Distributions receivable from Fidelity Central Funds | 36 | |
Prepaid expenses | 7 | |
Other receivables | 653 | |
Total assets | 7,415,757 | |
Liabilities | ||
Payable to custodian bank | $2,858 | |
Payable for investments purchased | 20,183 | |
Payable for fund shares redeemed | 3,937 | |
Accrued management fee | 2,656 | |
Notes payable to affiliates | 11,612 | |
Written options, at value (premium received $3,281) | 2,328 | |
Other affiliated payables | 838 | |
Other payables and accrued expenses | 860 | |
Collateral on securities loaned | 176,229 | |
Total liabilities | 221,501 | |
Net Assets | $7,194,256 | |
Net Assets consist of: | ||
Paid in capital | $5,625,702 | |
Total accumulated earnings (loss) | 1,568,554 | |
Net Assets | $7,194,256 | |
Net Asset Value and Maximum Offering Price | ||
Growth and Income: | ||
Net Asset Value, offering price and redemption price per share ($6,096,720 ÷ 140,088 shares) | $43.52 | |
Class K: | ||
Net Asset Value, offering price and redemption price per share ($1,097,536 ÷ 25,245 shares) | $43.48 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Amounts in thousands | Six months ended January 31, 2021 (Unaudited) | |
Investment Income | ||
Dividends | $80,046 | |
Interest | 313 | |
Income from Fidelity Central Funds (including $170 from security lending) | 192 | |
Total income | 80,551 | |
Expenses | ||
Management fee | $14,739 | |
Transfer agent fees | 4,332 | |
Accounting fees | 579 | |
Custodian fees and expenses | 73 | |
Independent trustees' fees and expenses | 16 | |
Registration fees | 33 | |
Audit | 41 | |
Legal | 10 | |
Interest | 3 | |
Miscellaneous | 18 | |
Total expenses before reductions | 19,844 | |
Expense reductions | (50) | |
Total expenses after reductions | 19,794 | |
Net investment income (loss) | 60,757 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 110,673 | |
Fidelity Central Funds | 9 | |
Written options | 2,505 | |
Total net realized gain (loss) | 113,187 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers (net of increase in deferred foreign taxes of $119) | 924,074 | |
Fidelity Central Funds | (20) | |
Assets and liabilities in foreign currencies | 13 | |
Written options | 1,989 | |
Total change in net unrealized appreciation (depreciation) | 926,056 | |
Net gain (loss) | 1,039,243 | |
Net increase (decrease) in net assets resulting from operations | $1,100,000 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Amounts in thousands | Six months ended January 31, 2021 (Unaudited) | Year ended July 31, 2020 |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $60,757 | $137,303 |
Net realized gain (loss) | 113,187 | 114,216 |
Change in net unrealized appreciation (depreciation) | 926,056 | (165,164) |
Net increase (decrease) in net assets resulting from operations | 1,100,000 | 86,355 |
Distributions to shareholders | (194,186) | (213,226) |
Share transactions - net increase (decrease) | (182,576) | 173,918 |
Total increase (decrease) in net assets | 723,238 | 47,047 |
Net Assets | ||
Beginning of period | 6,471,018 | 6,423,971 |
End of period | $7,194,256 | $6,471,018 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Growth & Income Portfolio
Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $38.15 | $38.98 | $39.34 | $35.31 | $30.48 | $30.85 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .36 | .83 | .87 | .65 | .61 | .59 |
Net realized and unrealized gain (loss) | 6.16 | (.37) | (.05)B | 4.12 | 4.68 | (.37) |
Total from investment operations | 6.52 | .46 | .82 | 4.77 | 5.29 | .22 |
Distributions from net investment income | (.40) | (.84) | (.77) | (.74) | (.46) | (.58) |
Distributions from net realized gain | (.75) | (.46) | (.42) | – | – | (.01) |
Total distributions | (1.15) | (1.29)C | (1.18)C | (.74) | (.46) | (.59) |
Net asset value, end of period | $43.52 | $38.15 | $38.98 | $39.34 | $35.31 | $30.48 |
Total ReturnD,E | 17.41% | 1.27% | 2.26%B | 13.66% | 17.48% | .88% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | .59%H | .60% | .61% | .61% | .63% | .64% |
Expenses net of fee waivers, if any | .59%H | .60% | .61% | .61% | .63% | .64% |
Expenses net of all reductions | .59%H | .60% | .61% | .61% | .63% | .64% |
Net investment income (loss) | 1.75%H | 2.18% | 2.31% | 1.76% | 1.84% | 2.05% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $6,097 | $5,451 | $5,927 | $6,280 | $6,356 | $5,529 |
Portfolio turnover rateI | 22%H | 32% | 36% | 38% | 37% | 29% |
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 Total distributions per share do not sum due to rounding.
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
H Annualized
I Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
See accompanying notes which are an integral part of the financial statements.
Fidelity Growth & Income Portfolio Class K
Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $38.11 | $38.94 | $39.31 | $35.28 | $30.46 | $30.82 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .38 | .86 | .91 | .69 | .65 | .62 |
Net realized and unrealized gain (loss) | 6.16 | (.35) | (.06)B | 4.12 | 4.67 | (.35) |
Total from investment operations | 6.54 | .51 | .85 | 4.81 | 5.32 | .27 |
Distributions from net investment income | (.42) | (.88) | (.81) | (.78) | (.50) | (.62) |
Distributions from net realized gain | (.75) | (.46) | (.42) | – | – | (.01) |
Total distributions | (1.17) | (1.34) | (1.22)C | (.78) | (.50) | (.63) |
Net asset value, end of period | $43.48 | $38.11 | $38.94 | $39.31 | $35.28 | $30.46 |
Total ReturnD,E | 17.49% | 1.39% | 2.35%B | 13.79% | 17.60% | 1.04% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | .50%H | .50% | .51% | .51% | .52% | .52% |
Expenses net of fee waivers, if any | .50%H | .50% | .51% | .51% | .52% | .52% |
Expenses net of all reductions | .49%H | .50% | .50% | .50% | .52% | .52% |
Net investment income (loss) | 1.85%H | 2.28% | 2.41% | 1.86% | 1.95% | 2.17% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $1,098 | $1,020 | $497 | $591 | $890 | $765 |
Portfolio turnover rateI | 22%H | 32% | 36% | 38% | 37% | 29% |
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 Total distributions per share do not sum due to rounding.
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
H Annualized
I Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended January 31, 2021
(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 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 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 - Investment 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 January 31, 2021 is included at the end of the Fund's Schedule of Investments.
Foreign Currency. Certain Funds 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 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 certain Funds, certain independent Trustees have elected to defer receipt of a portion of their annual compensation. Deferred amounts are invested in affiliated mutual funds, are marked-to-market and remain in a fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees presented below are included in the accompanying Statement of Assets and Liabilities in other receivables and other payables and accrued expenses, as applicable.
Fidelity Growth & Income Portfolio | $624 |
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests. The Fund is subject to a tax imposed on capital gains by certain countries in which it invests. An estimated deferred tax liability for net unrealized appreciation on the applicable securities is included in Other payables and accrued expenses on the Statement of Assets & Liabilities.
Distributions are declared and recorded on the ex-dividend date. Income and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, partnerships, passive foreign investment companies (PFIC), 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 | $2,079,964 |
Gross unrealized depreciation | (590,510) |
Net unrealized appreciation (depreciation) | $1,489,454 |
Tax cost | $5,886,890 |
Restricted Securities (including Private Placements). 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 Funds included in the table below hold certain investments through a wholly-owned subsidiary ("Subsidiary"), which may be subject to federal and state taxes upon disposition.
As of period end, investments in Subsidiaries were as follows:
$ Amount | % of Net Assets | |
Fidelity Growth & Income Portfolio | 7,762 | .11 |
The financial statements have been consolidated to include the Subsidiary accounts where applicable. Accordingly, all inter-company transactions and balances have been eliminated.
At period end, any estimated tax liability for these investments is presented as "Deferred taxes" in the Statement of Assets and Liabilities and included in "Change in net unrealized appreciation (depreciation) on investment securities" in the Statement of Operations. The tax liability incurred may differ materially depending on conditions when these investments are disposed. Any cash held by a Subsidiary is restricted as to its use and is presented as "Restricted cash" in the Statement of Assets and Liabilities, if applicable.
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. 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 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, are noted in the table below.
Purchases ($) | Sales ($) | |
Fidelity Growth & Income Portfolio | 739,335 | 895,711 |
6. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company LLC (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 .23% during the period. The group fee rate is based upon the monthly average net assets of a group of registered investment companies with which the investment adviser has management contracts. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annualized management fee rate was .43% of the Fund's average net assets.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company LLC (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(a) | |
Growth and Income | $4,096 | .14 |
Class K | 236 | .04 |
$4,332 |
(a) Annualized
Accounting 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. For the period, the fees were equivalent to the following annualized rates:
% of Average Net Assets | |
Fidelity Growth & Income Portfolio | .02 |
Brokerage Commissions. A portion of portfolio transactions were placed 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 as follows:
Amount | |
Fidelity Growth & Income Portfolio | $15 |
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 LLC (FMR), or other affiliated entities of FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the Fund to borrow from, or lend money to, other participating affiliated funds. Any open loans, including accrued interest, at period end are presented under the caption "Notes payable to affiliates" in the Statement of Assets and Liabilities. 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 | |
Fidelity Growth & Income Portfolio | Borrower | $8,572 | .33% | $3 |
Interfund Trades. Funds 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, and amounted to $53,451 and $62,300, respectively.
Other. During the period, the investment adviser reimbursed the Fund for certain losses in the amount of $14.
7. Committed Line of Credit.
Certain Funds participate 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 participating funds have agreed to pay commitment fees on their pro-rata portion of the line of credit, which are reflected in Miscellaneous expenses on the Statement of Operations, and are listed below.
Amount | |
Fidelity Growth & Income Portfolio | $7 |
During the period, there were no borrowings on this line of credit.
8. Security Lending.
Funds lend portfolio securities from time to time in order to earn additional income. Lending agents are used, including National Financial Services (NFS), an affiliate of the investment adviser. Pursuant to a securities lending agreement, NFS will receive a fee, which is capped at 9.9% of a fund's daily lending revenue, for its services as lending agent. A fund may lend securities to certain qualified borrowers, including NFS. On the settlement date of the loan, a 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 a fund and any additional required collateral is delivered to a fund on the next business day. A 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, a fund may apply collateral received from the borrower against the obligation. A 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. Any loaned securities are identified as such in the Schedule of Investments, and the value of loaned securities and cash collateral at period end, as applicable, are presented in the 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. Affiliated security lending activity, if any, was as follows:
Total Security Lending Income Fees Paid to NFS | Security Lending Income From Securities Loaned to NFS | Value of Securities Loaned to NFS at Period End | |
Fidelity Growth & Income Portfolio | $22 | $– | $– |
9. Bank Borrowings.
The Fund is permitted to have bank borrowings for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity requirements. The Fund has established borrowing arrangements with certain banks. The interest rate on the borrowings is the bank's base rate, as revised from time to time. Any open loans, including accrued interest, at period end are presented under the caption "Notes payable" in the Statement of Assets and Liabilities, if applicable. Activity in this program during the period for which loans were outstanding was as follows:
Average Loan Balance | Weighted Average Interest Rate | Interest Expense | |
Fidelity Growth & Income Portfolio | $638 | .59% | $–(a) |
(a) In the amount of less than five hundred dollars
10. 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 expenses. This amount totaled $39 for the period.
In addition, during the period the investment adviser or an affiliate reimbursed and/or waived a portion of fund-level operating expenses in the amount of $11.
11. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended January 31, 2021 | Year ended July 31, 2020 | |
Distributions to shareholders | ||
Growth and Income | $163,157 | $191,327 |
Class K | 31,029 | 21,899 |
Total | $194,186 | $213,226 |
12. 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 | |
Six months ended January 31, 2021 | Year ended July 31, 2020 | Six months ended January 31, 2021 | Year ended July 31, 2020 | |
Growth and Income | ||||
Shares sold | 2,212 | 4,929 | $90,826 | $187,774 |
Reinvestment of distributions | 3,879 | 4,774 | 154,103 | 180,310 |
Shares redeemed | (8,878) | (18,889) | (362,633) | (708,521) |
Net increase (decrease) | (2,787) | (9,186) | $(117,704) | $(340,437) |
Class K | ||||
Shares sold | 2,676 | 17,497 | $109,372 | $646,482 |
Reinvestment of distributions | 781 | 590 | 31,029 | 21,899 |
Shares redeemed | (4,969) | (4,100) | (205,273) | (154,026) |
Net increase (decrease) | (1,512) | 13,987 | $(64,872) | $514,355 |
13. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
14. Coronavirus (COVID-19) Pandemic.
An outbreak of COVID-19 first detected in China during December 2019 has since spread globally and was declared a pandemic by the World Health Organization during March 2020. Developments that disrupt global economies and financial markets, such as the COVID-19 pandemic, may magnify factors that affect the Fund's performance.
Shareholder Expense Example
As a shareholder, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or redemption proceeds, as applicable and (2) ongoing costs, which generally include 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 a fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2020 to January 31, 2021).
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 for a class/Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. If any fund is a shareholder of any underlying mutual funds or exchange-traded funds (ETFs) (the Underlying Funds), such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses incurred presented in the table. These fees and expenses are not included in the 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 actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the 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. If any fund is a shareholder of any Underlying Funds, such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses as presented in the table. These fees and expenses are not included in the 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 August 1, 2020 | Ending Account Value January 31, 2021 | Expenses Paid During Period-B August 1, 2020 to January 31, 2021 | |
Fidelity Growth & Income Portfolio | ||||
Growth and Income | .59% | |||
Actual | $1,000.00 | $1,174.10 | $3.23 | |
Hypothetical-C | $1,000.00 | $1,022.23 | $3.01 | |
Class K | .50% | |||
Actual | $1,000.00 | $1,174.90 | $2.74 | |
Hypothetical-C | $1,000.00 | $1,022.68 | $2.55 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/ 365 (to reflect the one-half year period). The fees and expenses of any Underlying Funds are not included in each annualized expense ratio.
C 5% return per year before expenses
Board Approval of Investment Advisory Contracts
Fidelity Growth & Income Portfolio
At its January 2021 meeting, the Board of Trustees, including the Independent Trustees (together, the Board), voted to continue the management contract with Fidelity Management & Research Company LLC (FMR), and the sub-advisory agreements and sub-subadvisory agreements, in each case, where applicable (together, the Advisory Contracts) for the fund for four months from February 1, 2021 through May 31, 2021, in connection with changes to the Board's meeting calendar.The Board considered that the approval of the fund's Advisory Contracts will not result in any changes in (i) the investment process or strategies employed in the management of the fund's assets; (ii) the fees and expenses paid by shareholders; (iii) the nature, extent or quality of services provided under the fund's Advisory Contracts; or (iv) the day-to-day management of the fund or the persons primarily responsible for such management. The Board also considered that since its last approval of the fund's Advisory Contracts, FMR had provided additional information on the fund in support of the annual contract renewal process, including competitive analyses on total expenses and management fees and in-depth reviews of fund performance and fund profitability information. The Board also considered the findings of certain ad hoc committees that had been previously formed to discuss matters relevant to all of the Fidelity funds, including economies of scale, fall-out benefits and retail vs. institutional funds. The Board concluded that the fund's Advisory Contracts are fair and reasonable, and that the fund's Advisory Contracts should be renewed, without modification, through May 31, 2021, with the understanding that the Board will consider the annual renewal for a full one year period in May 2021.In connection with its consideration of future renewals of the fund's Advisory Contracts, the Board will consider: (i) the nature, extent and quality of services provided to the funds, including shareholder and administrative services and investment performance; (ii) the competitiveness of the management fee and total expenses for the fund; (iii) the costs of the services and profitability, including the revenues earned and the expenses incurred in conducting the business of developing, marketing, distributing, managing, administering, and servicing the fund and its shareholders, to the extent applicable; and (iv) whether there have been economies of scale in respect of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is the potential for realization of any further economies.Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board ultimately concluded that the fund's management fee structure is fair and reasonable, and that the continuation of the fund's Advisory Contracts should be approved for four months from February 1, 2021 through May 31, 2021.GAI-SANN-0321
1.700483.124
Fidelity® Leveraged Company Stock Fund
Semi-Annual Report
January 31, 2021
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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.
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. © 2021 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.
Note to Shareholders:
Early in 2020, the outbreak and spread of a new coronavirus emerged as a public health emergency that had a major influence on financial markets, primarily based on its impact on the global economy and the outlook for corporate earnings. The virus causes a respiratory disease known as COVID-19. On March 11, the World Health Organization declared the COVID-19 outbreak a pandemic, citing sustained risk of further global spread.
In the weeks following, as the crisis worsened, we witnessed an escalating human tragedy with wide-scale social and economic consequences from coronavirus-containment measures. The outbreak of COVID-19 prompted a number of measures to limit the spread, including travel and border restrictions, quarantines, and restrictions on large gatherings. In turn, these resulted in lower consumer activity, diminished demand for a wide range of products and services, disruption in manufacturing and supply chains, and – given the wide variability in outcomes regarding the outbreak – significant market uncertainty and volatility. Amid the turmoil, global governments and central banks took unprecedented action to help support consumers, businesses, and the broader economies, and to limit disruption to financial systems.
The situation continues to unfold, and the extent and duration of its impact on financial markets and the economy remain highly uncertain. Extreme events such as the coronavirus crisis are “exogenous shocks” that can have significant adverse effects on mutual funds and their investments. Although multiple asset classes may be affected by market disruption, the duration and impact may not be the same for all types of assets.
Fidelity is committed to helping you stay informed amid news about COVID-19 and during increased market volatility, and we’re taking extra steps to be responsive to customer needs. We encourage you to visit our websites, where we offer ongoing updates, commentary, and analysis on the markets and our funds.
Investment Summary (Unaudited)
Top Ten Stocks as of January 31, 2021
% of fund's net assets | |
Penn National Gaming, Inc. | 5.5 |
Caesars Entertainment, Inc. | 5.0 |
T-Mobile U.S., Inc. | 3.3 |
Tesla, Inc. | 3.3 |
Microsoft Corp. | 3.3 |
Adobe, Inc. | 3.2 |
Boyd Gaming Corp. | 2.7 |
IQVIA Holdings, Inc. | 2.7 |
Alphabet, Inc. Class A | 2.7 |
Lam Research Corp. | 2.6 |
34.3 |
Top Five Market Sectors as of January 31, 2021
% of fund's net assets | |
Information Technology | 29.7 |
Consumer Discretionary | 22.9 |
Communication Services | 13.1 |
Health Care | 10.9 |
Materials | 5.7 |
Asset Allocation (% of fund's net assets)
As of January 31, 2021 * | ||
Stocks | 98.4% | |
Short-Term Investments and Net Other Assets (Liabilities) | 1.6% |
* Foreign investments - 6.9%
Schedule of Investments January 31, 2021 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.4% | |||
Shares | Value (000s) | ||
COMMUNICATION SERVICES - 13.1% | |||
Interactive Media & Services - 6.1% | |||
Alphabet, Inc. Class A (a) | 35,700 | $65,237 | |
Facebook, Inc. Class A (a) | 217,100 | 56,083 | |
Tencent Holdings Ltd. sponsored ADR | 313,000 | 27,954 | |
149,274 | |||
Media - 3.7% | |||
Altice U.S.A., Inc. Class A (a)(b) | 1,427,600 | 50,780 | |
Nexstar Broadcasting Group, Inc. Class A | 347,798 | 39,534 | |
90,314 | |||
Wireless Telecommunication Services - 3.3% | |||
T-Mobile U.S., Inc. | 653,000 | 82,330 | |
TOTAL COMMUNICATION SERVICES | 321,918 | ||
CONSUMER DISCRETIONARY - 22.9% | |||
Automobiles - 3.3% | |||
Tesla, Inc. (a) | 102,000 | 80,940 | |
Hotels, Restaurants & Leisure - 14.1% | |||
Airbnb, Inc. Class A | 7,700 | 1,414 | |
Boyd Gaming Corp. | 1,482,700 | 66,959 | |
Caesars Entertainment, Inc. (a) | 1,748,080 | 123,047 | |
MGM Resorts International | 369,500 | 10,553 | |
Penn National Gaming, Inc. (a) | 1,289,070 | 133,700 | |
Studio City International Holdings Ltd. ADR (a) | 695,700 | 9,949 | |
345,622 | |||
Household Durables - 2.1% | |||
Tempur Sealy International, Inc. (a) | 1,526,200 | 40,292 | |
Whirlpool Corp. | 58,300 | 10,791 | |
51,083 | |||
Internet & Direct Marketing Retail - 2.1% | |||
Alibaba Group Holding Ltd. sponsored ADR (a) | 127,400 | 32,338 | |
Amazon.com, Inc. (a) | 6,400 | 20,520 | |
52,858 | |||
Specialty Retail - 1.3% | |||
Lowe's Companies, Inc. | 192,100 | 32,052 | |
TOTAL CONSUMER DISCRETIONARY | 562,555 | ||
CONSUMER STAPLES - 3.4% | |||
Food Products - 3.4% | |||
Darling Ingredients, Inc. (a) | 586,083 | 36,343 | |
JBS SA | 11,023,700 | 48,718 | |
85,061 | |||
ENERGY - 0.8% | |||
Oil, Gas & Consumable Fuels - 0.8% | |||
Renewable Energy Group, Inc. (a) | 215,500 | 19,309 | |
FINANCIALS - 4.1% | |||
Banks - 1.8% | |||
Bank of America Corp. | 652,399 | 19,344 | |
JPMorgan Chase & Co. | 199,700 | 25,695 | |
45,039 | |||
Consumer Finance - 1.5% | |||
OneMain Holdings, Inc. | 788,900 | 36,731 | |
Insurance - 0.8% | |||
Arthur J. Gallagher & Co. | 156,900 | 18,108 | |
TOTAL FINANCIALS | 99,878 | ||
HEALTH CARE - 10.9% | |||
Biotechnology - 1.3% | |||
Alexion Pharmaceuticals, Inc. (a) | 126,100 | 19,335 | |
Regeneron Pharmaceuticals, Inc. (a) | 25,000 | 12,596 | |
31,931 | |||
Health Care Providers & Services - 3.4% | |||
HCA Holdings, Inc. | 42,800 | 6,954 | |
Humana, Inc. | 80,800 | 30,955 | |
Oak Street Health, Inc. (a) | 3,000 | 156 | |
UnitedHealth Group, Inc. | 133,500 | 44,533 | |
82,598 | |||
Life Sciences Tools & Services - 5.7% | |||
Charles River Laboratories International, Inc. (a) | 80,900 | 20,957 | |
IQVIA Holdings, Inc. (a) | 370,100 | 65,804 | |
Thermo Fisher Scientific, Inc. | 107,500 | 54,793 | |
141,554 | |||
Pharmaceuticals - 0.5% | |||
Bristol-Myers Squibb Co. | 208,000 | 12,777 | |
TOTAL HEALTH CARE | 268,860 | ||
INDUSTRIALS - 4.8% | |||
Air Freight & Logistics - 0.5% | |||
XPO Logistics, Inc. (a) | 111,600 | 12,322 | |
Airlines - 1.0% | |||
Air Canada (a) | 1,577,500 | 24,697 | |
Building Products - 0.9% | |||
Carrier Global Corp. | 570,200 | 21,953 | |
Commercial Services & Supplies - 0.0% | |||
Novus Holdings Ltd. (a) | 46,866 | 3 | |
Machinery - 0.9% | |||
Allison Transmission Holdings, Inc. | 231,300 | 9,414 | |
Fortive Corp. | 207,400 | 13,705 | |
23,119 | |||
Marine - 0.0% | |||
Genco Shipping & Trading Ltd. | 831 | 7 | |
Professional Services - 0.6% | |||
ASGN, Inc. (a) | 162,500 | 13,473 | |
Trading Companies & Distributors - 0.9% | |||
United Rentals, Inc. (a) | 93,200 | 22,649 | |
TOTAL INDUSTRIALS | 118,223 | ||
INFORMATION TECHNOLOGY - 29.7% | |||
Electronic Equipment & Components - 3.4% | |||
CDW Corp. | 138,400 | 18,222 | |
Vontier Corp. (a) | 97,040 | 3,147 | |
Zebra Technologies Corp. Class A (a) | 162,200 | 62,906 | |
84,275 | |||
IT Services - 10.8% | |||
EPAM Systems, Inc. (a) | 170,200 | 58,622 | |
Global Payments, Inc. | 294,100 | 51,915 | |
GoDaddy, Inc. (a) | 261,600 | 20,557 | |
MasterCard, Inc. Class A | 118,000 | 37,322 | |
PayPal Holdings, Inc. (a) | 261,000 | 61,155 | |
Visa, Inc. Class A | 182,600 | 35,287 | |
264,858 | |||
Semiconductors & Semiconductor Equipment - 6.4% | |||
Array Technologies, Inc. | 45,100 | 1,838 | |
Lam Research Corp. | 132,600 | 64,172 | |
Microchip Technology, Inc. | 254,500 | 34,640 | |
Micron Technology, Inc. (a) | 285,500 | 22,346 | |
ON Semiconductor Corp. (a) | 972,900 | 33,555 | |
156,551 | |||
Software - 9.1% | |||
Adobe, Inc. (a) | 171,800 | 78,817 | |
Microsoft Corp. | 346,200 | 80,305 | |
Palo Alto Networks, Inc. (a) | 108,300 | 37,986 | |
SS&C Technologies Holdings, Inc. | 438,297 | 27,560 | |
224,668 | |||
TOTAL INFORMATION TECHNOLOGY | 730,352 | ||
MATERIALS - 5.7% | |||
Chemicals - 2.7% | |||
Albemarle Corp. U.S. | 115,200 | 18,738 | |
CF Industries Holdings, Inc. | 433,900 | 17,955 | |
The Chemours Co. LLC | 1,129,328 | 29,746 | |
66,439 | |||
Containers & Packaging - 1.9% | |||
Berry Global Group, Inc. (a) | 407,300 | 20,108 | |
WestRock Co. | 659,700 | 27,331 | |
47,439 | |||
Metals & Mining - 1.1% | |||
First Quantum Minerals Ltd. | 1,634,200 | 27,221 | |
TOTAL MATERIALS | 141,099 | ||
UTILITIES - 3.0% | |||
Electric Utilities - 2.0% | |||
NRG Energy, Inc. | 805,800 | 33,368 | |
PG&E Corp. (a) | 1,445,402 | 16,521 | |
49,889 | |||
Independent Power and Renewable Electricity Producers - 1.0% | |||
Vistra Corp. | 1,162,965 | 23,224 | |
TOTAL UTILITIES | 73,113 | ||
TOTAL COMMON STOCKS | |||
(Cost $1,296,473) | 2,420,368 | ||
Money Market Funds - 2.5% | |||
Fidelity Cash Central Fund 0.09% (c) | 40,296,600 | 40,305 | |
Fidelity Securities Lending Cash Central Fund 0.09% (c)(d) | 20,470,137 | 20,472 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $60,773) | 60,777 | ||
TOTAL INVESTMENT IN SECURITIES - 100.9% | |||
(Cost $1,357,246) | 2,481,145 | ||
NET OTHER ASSETS (LIABILITIES) - (0.9)% | (21,641) | ||
NET ASSETS - 100% | $2,459,504 |
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 | $27 |
Fidelity Securities Lending Cash Central Fund | 24 |
Total | $51 |
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 January 31, 2021, 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 | $321,918 | $321,918 | $-- | $-- |
Consumer Discretionary | 562,555 | 562,555 | -- | -- |
Consumer Staples | 85,061 | 85,061 | -- | -- |
Energy | 19,309 | 19,309 | -- | -- |
Financials | 99,878 | 99,878 | -- | -- |
Health Care | 268,860 | 268,860 | -- | -- |
Industrials | 118,223 | 118,220 | 3 | -- |
Information Technology | 730,352 | 730,352 | -- | -- |
Materials | 141,099 | 141,099 | -- | -- |
Utilities | 73,113 | 73,113 | -- | -- |
Money Market Funds | 60,777 | 60,777 | -- | -- |
Total Investments in Securities: | $2,481,145 | $2,481,142 | $3 | $-- |
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) | January 31, 2021 (Unaudited) | |
Assets | ||
Investment in securities, at value (including securities loaned of $19,546) — See accompanying schedule: Unaffiliated issuers (cost $1,296,473) | $2,420,368 | |
Fidelity Central Funds (cost $60,773) | 60,777 | |
Total Investment in Securities (cost $1,357,246) | $2,481,145 | |
Receivable for fund shares sold | 1,790 | |
Dividends receivable | 828 | |
Distributions receivable from Fidelity Central Funds | 5 | |
Prepaid expenses | 2 | |
Other receivables | 13 | |
Total assets | 2,483,783 | |
Liabilities | ||
Payable for fund shares redeemed | $2,236 | |
Accrued management fee | 1,225 | |
Other affiliated payables | 313 | |
Other payables and accrued expenses | 36 | |
Collateral on securities loaned | 20,469 | |
Total liabilities | 24,279 | |
Net Assets | $2,459,504 | |
Net Assets consist of: | ||
Paid in capital | $1,337,152 | |
Total accumulated earnings (loss) | 1,122,352 | |
Net Assets | $2,459,504 | |
Net Asset Value and Maximum Offering Price | ||
Leveraged Company Stock: | ||
Net Asset Value, offering price and redemption price per share ($2,153,400 ÷ 52,509 shares) | $41.01 | |
Class K: | ||
Net Asset Value, offering price and redemption price per share ($306,104 ÷ 7,436 shares) | $41.17 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Amounts in thousands | Six months ended January 31, 2021 (Unaudited) | |
Investment Income | ||
Dividends | $8,028 | |
Income from Fidelity Central Funds (including $24 from security lending) | 51 | |
Total income | 8,079 | |
Expenses | ||
Management fee | $6,514 | |
Transfer agent fees | 1,432 | |
Accounting fees | 338 | |
Custodian fees and expenses | 19 | |
Independent trustees' fees and expenses | 5 | |
Registration fees | 42 | |
Audit | 32 | |
Legal | 2 | |
Miscellaneous | 6 | |
Total expenses before reductions | 8,390 | |
Expense reductions | (20) | |
Total expenses after reductions | 8,370 | |
Net investment income (loss) | (291) | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 63,198 | |
Foreign currency transactions | 2 | |
Total net realized gain (loss) | 63,200 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 560,746 | |
Fidelity Central Funds | (2) | |
Assets and liabilities in foreign currencies | 1 | |
Total change in net unrealized appreciation (depreciation) | 560,745 | |
Net gain (loss) | 623,945 | |
Net increase (decrease) in net assets resulting from operations | $623,654 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Amounts in thousands | Six months ended January 31, 2021 (Unaudited) | Year ended July 31, 2020 |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $(291) | $5,800 |
Net realized gain (loss) | 63,200 | (17,577) |
Change in net unrealized appreciation (depreciation) | 560,745 | 48,341 |
Net increase (decrease) in net assets resulting from operations | 623,654 | 36,564 |
Distributions to shareholders | (3,020) | (2,522) |
Share transactions - net increase (decrease) | (76,715) | (410,304) |
Total increase (decrease) in net assets | 543,919 | (376,262) |
Net Assets | ||
Beginning of period | 1,915,585 | 2,291,847 |
End of period | $2,459,504 | $1,915,585 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Leveraged Company Stock Fund
Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $30.88 | $29.94 | $34.31 | $37.25 | $40.68 | $46.90 |
Income from Investment Operations | ||||||
Net investment income (loss)A | (.01) | .08B | (.02) | .02 | .19 | .41 |
Net realized and unrealized gain (loss) | 10.18 | .89 | .42 | 3.42C | 5.53 | (3.77) |
Total from investment operations | 10.17 | .97 | .40 | 3.44 | 5.72 | (3.36) |
Distributions from net investment income | (.04) | (.03) | – | (.07) | (.37) | (.40) |
Distributions from net realized gain | – | – | (4.77) | (6.32) | (8.78) | (2.46) |
Total distributions | (.04) | (.03) | (4.77) | (6.38)D | (9.15) | (2.86) |
Redemption fees added to paid in capitalA | – | – | – | – | –E | –E |
Net asset value, end of period | $41.01 | $30.88 | $29.94 | $34.31 | $37.25 | $40.68 |
Total ReturnF,G | 32.97% | 3.24% | 1.93% | 10.91%C | 17.45% | (7.23)% |
Ratios to Average Net AssetsH,I | ||||||
Expenses before reductions | .76%J | .78% | .78% | .78% | .80% | .80% |
Expenses net of fee waivers, if any | .76%J | .78% | .78% | .78% | .79% | .80% |
Expenses net of all reductions | .76%J | .77% | .78% | .77% | .78% | .80% |
Net investment income (loss) | (.04)%J | .27%B | (.06)% | .07% | .51% | 1.03% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $2,153 | $1,631 | $1,945 | $2,372 | $2,644 | $2,861 |
Portfolio turnover rateK | 16%J | 31% | 53% | 67% | 100% | 9% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.03 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been .16%. These amounts have been revised from previously reported amounts of $.08 per share and 1.03%.
C Amount includes a reimbursement from the investment adviser for an operational error which amounted to less than $.06 per share. Excluding this reimbursement, the total return would have been 10.73%.
D Total distributions per share do not sum due to rounding.
E Amount represents less than $.005 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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
J Annualized
K Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
See accompanying notes which are an integral part of the financial statements.
Fidelity Leveraged Company Stock Fund Class K
Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $31.01 | $30.04 | $34.40 | $37.34 | $40.76 | $47.00 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .01 | .11B | .01 | .06 | .23 | .46 |
Net realized and unrealized gain (loss) | 10.23 | .91 | .42 | 3.42C | 5.55 | (3.79) |
Total from investment operations | 10.24 | 1.02 | .43 | 3.48 | 5.78 | (3.33) |
Distributions from net investment income | (.08) | (.05) | – | (.11) | (.42) | (.45) |
Distributions from net realized gain | – | – | (4.79) | (6.32) | (8.78) | (2.46) |
Total distributions | (.08) | (.05) | (4.79) | (6.42)D | (9.20) | (2.91) |
Redemption fees added to paid in capitalA | – | – | – | – | –E | –E |
Net asset value, end of period | $41.17 | $31.01 | $30.04 | $34.40 | $37.34 | $40.76 |
Total ReturnF,G | 33.05% | 3.38% | 2.03% | 11.01%C | 17.60% | (7.14)% |
Ratios to Average Net AssetsH,I | ||||||
Expenses before reductions | .66%J | .67% | .67% | .67% | .68% | .68% |
Expenses net of fee waivers, if any | .66%J | .67% | .67% | .67% | .68% | .68% |
Expenses net of all reductions | .66%J | .66% | .67% | .66% | .67% | .68% |
Net investment income (loss) | .06%J | .38%B | .05% | .18% | .63% | 1.15% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $306 | $285 | $347 | $431 | $489 | $573 |
Portfolio turnover rateK | 16%J | 31% | 53% | 67% | 100% | 9% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.03 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been .27%. These amounts have been revised from previously reported amounts of $.08 per share and 1.17%.
C Amount includes a reimbursement from the investment adviser for an operational error which amounted to less than $.06 per share. Excluding this reimbursement, the total return would have been 10.83%.
D Total distributions per share do not sum due to rounding.
E Amount represents less than $.005 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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
J Annualized
K Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended January 31, 2021
(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 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 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 - Investment 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, 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 January 31, 2021 is included at the end of the Fund's Schedule of Investments.
Foreign Currency. Certain Funds 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.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
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.
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, capital loss carryforwards, 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 | $1,143,515 |
Gross unrealized depreciation | (20,112) |
Net unrealized appreciation (depreciation) | $1,123,403 |
Tax cost | $1,357,742 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of prior fiscal period end and is subject to adjustment.
No expiration | |
Short-term | $(63,119) |
Total capital loss carryforward | $(63,119) |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities are noted in the table below.
Purchases ($) | Sales ($) | |
Fidelity Leveraged Company Stock Fund | 171,075 | 264,224 |
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company LLC (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 .23% during the period. The group fee rate is based upon the monthly average net assets of a group of registered investment companies with which the investment adviser has management contracts. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annualized management fee rate was .58% of the Fund's average net assets.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company LLC (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(a) | |
Leveraged Company Stock | $1,365 | .14 |
Class K | 67 | .04 |
$1,432 |
(a) Annualized
Accounting 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. For the period, the fees were equivalent to the following annualized rates:
% of Average Net Assets | |
Fidelity Leveraged Company Stock Fund | .03 |
Brokerage Commissions. A portion of portfolio transactions were placed 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 as follows:
Amount | |
Fidelity Leveraged Company Stock Fund | $2 |
Interfund Trades. Funds 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, and amounted to $3,201 and $19,829, respectively.
6. Committed Line of Credit.
Certain Funds participate 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 participating funds have agreed to pay commitment fees on their pro-rata portion of the line of credit, which are reflected in Miscellaneous expenses on the Statement of Operations, and are listed below.
Amount | |
Fidelity Leveraged Company Stock Fund | $2 |
During the period, there were no borrowings on this line of credit.
7. Security Lending.
Funds lend portfolio securities from time to time in order to earn additional income. Lending agents are used, including National Financial Services (NFS), an affiliate of the investment adviser. Pursuant to a securities lending agreement, NFS will receive a fee, which is capped at 9.9% of a fund's daily lending revenue, for its services as lending agent. A fund may lend securities to certain qualified borrowers, including NFS. On the settlement date of the loan, a 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 a fund and any additional required collateral is delivered to a fund on the next business day. A 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, a fund may apply collateral received from the borrower against the obligation. A 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. Any loaned securities are identified as such in the Schedule of Investments, and the value of loaned securities and cash collateral at period end, as applicable, are presented in the 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. Affiliated security lending activity, if any, was as follows:
Total Security Lending Income Fees Paid to NFS | Security Lending Income From Securities Loaned to NFS | Value of Securities Loaned to NFS at Period End | |
Fidelity Leveraged Company Stock Fund | $3 | $– | $– |
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 expenses. This amount totaled $16 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.
In addition, during the period the investment adviser or an affiliate reimbursed and/or waived a portion of fund-level operating expenses in the amount of $4.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended January 31, 2021 | Year ended July 31, 2020 | |
Distributions to shareholders | ||
Leveraged Company Stock | $2,357 | $2,012 |
Class K | 663 | 510 |
Total | $3,020 | $2,522 |
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 | |
Six months ended January 31, 2021 | Year ended July 31, 2020 | Six months ended January 31, 2021 | Year ended July 31, 2020 | |
Leveraged Company Stock | ||||
Shares sold | 4,201 | 2,131 | $151,454 | $60,081 |
Reinvestment of distributions | 65 | 59 | 2,241 | 1,907 |
Shares redeemed | (4,575) | (14,344) | (166,349) | (405,183) |
Net increase (decrease) | (309) | (12,154) | $(12,654) | $(343,195) |
Class K | ||||
Shares sold | 494 | 871 | $18,775 | $25,731 |
Reinvestment of distributions | 19 | 16 | 663 | 510 |
Shares redeemed | (2,253) | (3,258) | (83,499) | (93,350) |
Net increase (decrease) | (1,740) | (2,371) | $(64,061) | $(67,109) |
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.
12. Coronavirus (COVID-19) Pandemic.
An outbreak of COVID-19 first detected in China during December 2019 has since spread globally and was declared a pandemic by the World Health Organization during March 2020. Developments that disrupt global economies and financial markets, such as the COVID-19 pandemic, may magnify factors that affect the Fund's performance.
Shareholder Expense Example
As a shareholder, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or redemption proceeds, as applicable and (2) ongoing costs, which generally include 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 a fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2020 to January 31, 2021).
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 for a class/Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. If any fund is a shareholder of any underlying mutual funds or exchange-traded funds (ETFs) (the Underlying Funds), such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses incurred presented in the table. These fees and expenses are not included in the 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 actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the 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. If any fund is a shareholder of any Underlying Funds, such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses as presented in the table. These fees and expenses are not included in the 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 August 1, 2020 | Ending Account Value January 31, 2021 | Expenses Paid During Period-B August 1, 2020 to January 31, 2021 | |
Fidelity Leveraged Company Stock Fund | ||||
Leveraged Company Stock | .76% | |||
Actual | $1,000.00 | $1,329.70 | $4.46 | |
Hypothetical-C | $1,000.00 | $1,021.37 | $3.87 | |
Class K | .66% | |||
Actual | $1,000.00 | $1,330.50 | $3.88 | |
Hypothetical-C | $1,000.00 | $1,021.88 | $3.36 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/ 365 (to reflect the one-half year period). The fees and expenses of any Underlying Funds are not included in each annualized expense ratio.
C 5% return per year before expenses
Board Approval of Investment Advisory Contracts
Fidelity Leveraged Company Stock Fund
At its January 2021 meeting, the Board of Trustees, including the Independent Trustees (together, the Board), voted to continue the management contract with Fidelity Management & Research Company LLC (FMR), and the sub-advisory agreements and sub-subadvisory agreements, in each case, where applicable (together, the Advisory Contracts) for the fund for four months from February 1, 2021 through May 31, 2021, in connection with changes to the Board's meeting calendar.The Board considered that the approval of the fund's Advisory Contracts will not result in any changes in (i) the investment process or strategies employed in the management of the fund's assets; (ii) the fees and expenses paid by shareholders; (iii) the nature, extent or quality of services provided under the fund's Advisory Contracts; or (iv) the day-to-day management of the fund or the persons primarily responsible for such management. The Board also considered that since its last approval of the fund's Advisory Contracts, FMR had provided additional information on the fund in support of the annual contract renewal process, including competitive analyses on total expenses and management fees and in-depth reviews of fund performance and fund profitability information. The Board also considered the findings of certain ad hoc committees that had been previously formed to discuss matters relevant to all of the Fidelity funds, including economies of scale, fall-out benefits and retail vs. institutional funds. The Board concluded that the fund's Advisory Contracts are fair and reasonable, and that the fund's Advisory Contracts should be renewed, without modification, through May 31, 2021, with the understanding that the Board will consider the annual renewal for a full one year period in May 2021.In connection with its consideration of future renewals of the fund's Advisory Contracts, the Board will consider: (i) the nature, extent and quality of services provided to the funds, including shareholder and administrative services and investment performance; (ii) the competitiveness of the management fee and total expenses for the fund; (iii) the costs of the services and profitability, including the revenues earned and the expenses incurred in conducting the business of developing, marketing, distributing, managing, administering, and servicing the fund and its shareholders, to the extent applicable; and (iv) whether there have been economies of scale in respect of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is the potential for realization of any further economies.Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board ultimately concluded that the fund's management fee structure is fair and reasonable, and that the continuation of the fund's Advisory Contracts should be approved for four months from February 1, 2021 through May 31, 2021.LSF-SANN-0321
1.753758.121
Fidelity® Blue Chip Growth Fund
Semi-Annual Report
January 31, 2021
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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.
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. © 2021 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.
Note to Shareholders:
Early in 2020, the outbreak and spread of a new coronavirus emerged as a public health emergency that had a major influence on financial markets, primarily based on its impact on the global economy and the outlook for corporate earnings. The virus causes a respiratory disease known as COVID-19. On March 11, the World Health Organization declared the COVID-19 outbreak a pandemic, citing sustained risk of further global spread.
In the weeks following, as the crisis worsened, we witnessed an escalating human tragedy with wide-scale social and economic consequences from coronavirus-containment measures. The outbreak of COVID-19 prompted a number of measures to limit the spread, including travel and border restrictions, quarantines, and restrictions on large gatherings. In turn, these resulted in lower consumer activity, diminished demand for a wide range of products and services, disruption in manufacturing and supply chains, and – given the wide variability in outcomes regarding the outbreak – significant market uncertainty and volatility. Amid the turmoil, global governments and central banks took unprecedented action to help support consumers, businesses, and the broader economies, and to limit disruption to financial systems.
The situation continues to unfold, and the extent and duration of its impact on financial markets and the economy remain highly uncertain. Extreme events such as the coronavirus crisis are “exogenous shocks” that can have significant adverse effects on mutual funds and their investments. Although multiple asset classes may be affected by market disruption, the duration and impact may not be the same for all types of assets.
Fidelity is committed to helping you stay informed amid news about COVID-19 and during increased market volatility, and we’re taking extra steps to be responsive to customer needs. We encourage you to visit our websites, where we offer ongoing updates, commentary, and analysis on the markets and our funds.
Investment Summary (Unaudited)
Top Ten Stocks as of January 31, 2021
% of fund's net assets | |
Apple, Inc. | 9.5 |
Amazon.com, Inc. | 7.6 |
Microsoft Corp. | 6.0 |
Alphabet, Inc. Class A | 5.0 |
Tesla, Inc. | 4.0 |
Facebook, Inc. Class A | 3.7 |
NVIDIA Corp. | 3.2 |
Marvell Technology Group Ltd. | 2.6 |
Salesforce.com, Inc. | 1.9 |
Uber Technologies, Inc. | 1.8 |
45.3 |
Top Five Market Sectors as of January 31, 2021
% of fund's net assets | |
Information Technology | 35.9 |
Consumer Discretionary | 31.4 |
Communication Services | 14.2 |
Health Care | 7.7 |
Industrials | 5.6 |
Asset Allocation (% of fund's net assets)
As of January 31, 2021* | ||
Stocks | 98.3% | |
Convertible Securities | 1.8% | |
Short-Term Investments and Net Other Assets (Liabilities)** | (0.1)% |
* Foreign investments - 13.7%
** Net Other Assets (Liabilities) are not included in the pie chart
Schedule of Investments January 31, 2021 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.1% | |||
Shares | Value (000s) | ||
COMMUNICATION SERVICES - 14.1% | |||
Entertainment - 3.6% | |||
Activision Blizzard, Inc. | 2,688,528 | $244,656 | |
Bilibili, Inc. ADR (a) | 303,990 | 34,621 | |
Madison Square Garden Entertainment Corp. (a)(b) | 519,550 | 46,110 | |
Motorsport Games, Inc. Class A (b) | 209,500 | 6,323 | |
Netflix, Inc. (a) | 1,123,049 | 597,900 | |
Nintendo Co. Ltd. | 21,222 | 12,216 | |
Nintendo Co. Ltd. ADR | 170,717 | 12,338 | |
Playtika Holding Corp. | 323,000 | 9,412 | |
Roku, Inc. Class A (a) | 452,179 | 175,911 | |
Sea Ltd. ADR (a)(b) | 2,498,601 | 541,472 | |
Skillz, Inc. (c) | 1,782,027 | 49,220 | |
The Walt Disney Co. | 241,409 | 40,598 | |
WME Entertainment Parent, LLC Class A (a)(c)(d)(e) | 10,172,512 | 15,157 | |
1,785,934 | |||
Interactive Media & Services - 10.2% | |||
Alphabet, Inc. Class A (a) | 1,342,462 | 2,453,161 | |
Facebook, Inc. Class A (a) | 7,028,665 | 1,815,715 | |
InterActiveCorp (a) | 48,800 | 10,246 | |
Match Group, Inc. (a) | 1,074,233 | 150,242 | |
Pinterest, Inc. Class A (a) | 409,150 | 28,031 | |
Snap, Inc. Class A (a)(b) | 3,990,821 | 211,274 | |
Tencent Holdings Ltd. | 3,160,890 | 281,646 | |
Yandex NV Series A (a) | 216,049 | 13,533 | |
Zillow Group, Inc. Class C (a) | 157,751 | 20,580 | |
Zoominfo Technologies, Inc. | 1,290,999 | 61,981 | |
5,046,409 | |||
Wireless Telecommunication Services - 0.3% | |||
T-Mobile U.S., Inc. | 1,022,739 | 128,947 | |
TOTAL COMMUNICATION SERVICES | 6,961,290 | ||
CONSUMER DISCRETIONARY - 30.7% | |||
Auto Components - 0.3% | |||
QuantumScape Corp. Class A (a) | 3,329,931 | 145,684 | |
Automobiles - 4.8% | |||
Fisker, Inc. (a)(b) | 619,733 | 9,315 | |
General Motors Co. | 393,300 | 19,932 | |
Harley-Davidson, Inc. | 2,143,156 | 85,919 | |
Hyundai Motor Co. | 52,640 | 10,778 | |
Kia Motors Corp. | 159,670 | 11,778 | |
Li Auto, Inc. ADR (a) | 231,456 | 7,464 | |
Lordstown Motors Corp. (c) | 3,206,281 | 80,734 | |
Lordstown Motors Corp. (a)(b) | 245,632 | 6,185 | |
Neutron Holdings, Inc. warrants (a)(c)(e) | 7,152,433 | 0 | |
NIO, Inc. sponsored ADR (a) | 178,637 | 10,182 | |
Niu Technologies ADR (a)(b) | 824,819 | 36,069 | |
Rad Power Bikes, Inc. (c)(e) | 928,091 | 4,477 | |
Tesla, Inc. (a) | 2,506,290 | 1,988,816 | |
XPeng, Inc. ADR (a)(b) | 1,863,671 | 89,792 | |
2,361,441 | |||
Distributors - 0.1% | |||
InPost SA | 1,141,700 | 27,433 | |
Diversified Consumer Services - 0.1% | |||
Bright Horizons Family Solutions, Inc. (a) | 381,499 | 57,976 | |
FSN E-Commerce Ventures Pvt Ltd. (c)(e) | 204,681 | 17,023 | |
74,999 | |||
Hotels, Restaurants & Leisure - 3.8% | |||
Airbnb, Inc. Class A (b) | 935,170 | 171,725 | |
Boyd Gaming Corp. | 1,426,445 | 64,418 | |
Caesars Entertainment, Inc. (a) | 3,253,225 | 228,995 | |
Chipotle Mexican Grill, Inc. (a) | 169,193 | 250,406 | |
Churchill Downs, Inc. | 459,486 | 86,131 | |
DraftKings, Inc. Class A (a) | 191,691 | 10,372 | |
Evolution Gaming Group AB (f) | 353,796 | 34,532 | |
Flutter Entertainment PLC | 46,390 | 8,660 | |
Hilton Worldwide Holdings, Inc. | 521,808 | 52,906 | |
Kambi Group PLC (a) | 536,526 | 30,048 | |
Las Vegas Sands Corp. | 1,031,828 | 49,621 | |
Marriott International, Inc. Class A | 817,262 | 95,056 | |
MGM Resorts International | 1,933,771 | 55,228 | |
Norwegian Cruise Line Holdings Ltd. (a)(b) | 1,025,159 | 23,220 | |
Penn National Gaming, Inc. (a) | 4,253,840 | 441,208 | |
Planet Fitness, Inc. (a) | 682,550 | 49,144 | |
Rush Street Interactive, Inc. (c) | 1,057,600 | 19,217 | |
SeaWorld Entertainment, Inc. (a)(b) | 491,314 | 14,037 | |
Texas Roadhouse, Inc. Class A (b) | 614,596 | 46,838 | |
Vail Resorts, Inc. | 229,449 | 61,024 | |
Wynn Resorts Ltd. | 715,320 | 71,196 | |
1,863,982 | |||
Household Durables - 1.0% | |||
D.R. Horton, Inc. | 393,935 | 30,254 | |
KB Home | 560,361 | 23,333 | |
Lennar Corp. Class A | 539,424 | 44,853 | |
Purple Innovation, Inc. (a) | 1,073,954 | 36,557 | |
Sonos, Inc. (a) | 411,838 | 10,770 | |
Sony Corp. sponsored ADR | 335,714 | 32,131 | |
Taylor Morrison Home Corp. (a) | 1,913,218 | 49,705 | |
Tempur Sealy International, Inc. (a) | 1,625,241 | 42,906 | |
Toll Brothers, Inc. | 956,487 | 48,876 | |
TRI Pointe Homes, Inc. (a) | 2,500,482 | 50,510 | |
Tupperware Brands Corp. (a)(g) | 4,260,828 | 128,166 | |
498,061 | |||
Internet & Direct Marketing Retail - 11.6% | |||
Alibaba Group Holding Ltd. sponsored ADR (a) | 1,399,554 | 355,249 | |
Amazon.com, Inc. (a) | 1,170,310 | 3,752,248 | |
BHG Group AB (a) | 328,484 | 6,164 | |
ContextLogic, Inc. | 1,339,220 | 36,243 | |
ContextLogic, Inc. (b) | 253,776 | 7,631 | |
Delivery Hero AG (a)(f) | 174,932 | 26,642 | |
Doordash, Inc. (b) | 194,130 | 37,520 | |
eBay, Inc. | 1,085,128 | 61,321 | |
Etsy, Inc. (a) | 396,190 | 78,877 | |
Expedia, Inc. | 1,096,517 | 136,078 | |
Farfetch Ltd. Class A (a) | 1,561,208 | 95,608 | |
Fiverr International Ltd. (a)(b) | 90,307 | 18,649 | |
JD Health International, Inc. (f) | 1,446,259 | 28,465 | |
JD.com, Inc.: | |||
Class A | 330,973 | 14,677 | |
sponsored ADR (a) | 1,070,834 | 94,972 | |
Jumia Technologies AG ADR (a)(b) | 1,373,321 | 79,035 | |
Kogan.Com Ltd. | 916,199 | 12,597 | |
MercadoLibre, Inc. (a) | 91,769 | 163,304 | |
Ocado Group PLC (a) | 811,420 | 30,874 | |
Ozon Holdings PLC ADR (b) | 180,982 | 8,749 | |
Pinduoduo, Inc. ADR (a) | 2,248,174 | 372,545 | |
Poshmark, Inc. (b) | 137,800 | 9,616 | |
The Booking Holdings, Inc. (a) | 6,371 | 12,387 | |
The Honest Co., Inc. (a)(c)(e) | 150,143 | 3,897 | |
The RealReal, Inc. (a) | 3,033,677 | 71,837 | |
THG PLC | 1,529,184 | 15,106 | |
Wayfair LLC Class A (a) | 719,407 | 195,909 | |
Zomato Pvt Ltd. (c)(e)(h) | 716 | 3,833 | |
5,730,033 | |||
Leisure Products - 0.4% | |||
Bafang Electric Suzhou Co. Ltd. (A Shares) | 167,500 | 5,419 | |
Peloton Interactive, Inc. Class A (a) | 1,026,366 | 149,983 | |
Vista Outdoor, Inc. (a) | 1,148,166 | 33,492 | |
188,894 | |||
Multiline Retail - 0.7% | |||
Dollar Tree, Inc. (a) | 797,058 | 81,029 | |
Nordstrom, Inc. (b) | 2,960,416 | 104,947 | |
Ollie's Bargain Outlet Holdings, Inc. (a) | 746,480 | 70,714 | |
Target Corp. | 440,700 | 79,842 | |
336,532 | |||
Specialty Retail - 4.4% | |||
Academy Sports & Outdoors, Inc. | 203,600 | 4,377 | |
American Eagle Outfitters, Inc. (b) | 8,005,706 | 181,649 | |
Aritzia LP (a) | 1,429,579 | 29,737 | |
Blink Charging Co. (a)(b) | 44,000 | 2,175 | |
Burlington Stores, Inc. (a) | 412,500 | 102,671 | |
Carvana Co. Class A (a)(b) | 1,511,918 | 394,898 | |
Cazoo Holdings Ltd. (c)(e) | 331,522 | 4,826 | |
Dick's Sporting Goods, Inc. (b) | 444,687 | 29,798 | |
Driven Brands Holdings, Inc. (b) | 362,300 | 10,181 | |
Five Below, Inc. (a) | 820,265 | 144,145 | |
Floor & Decor Holdings, Inc. Class A (a) | 1,752,724 | 161,373 | |
Gap, Inc. | 452,300 | 9,159 | |
L Brands, Inc. | 271,700 | 11,074 | |
Lowe's Companies, Inc. | 3,674,274 | 613,053 | |
Petco Health & Wellness Co., Inc. (b) | 444,800 | 11,578 | |
RH (a)(b) | 681,277 | 323,852 | |
Shift Technologies, Inc. Class A (a) | 1,002,609 | 8,221 | |
The Home Depot, Inc. | 396,670 | 107,426 | |
Ulta Beauty, Inc. (a) | 54,255 | 15,178 | |
Vroom, Inc. (b) | 666,141 | 24,534 | |
2,189,905 | |||
Textiles, Apparel & Luxury Goods - 3.5% | |||
Allbirds, Inc. (a)(c)(e) | 181,080 | 2,093 | |
Burberry Group PLC | 986,439 | 23,227 | |
Capri Holdings Ltd. (a) | 4,089,199 | 170,356 | |
Crocs, Inc. (a) | 2,749,898 | 192,548 | |
Deckers Outdoor Corp. (a) | 435,529 | 127,166 | |
Dr. Martens Ltd. (a) | 2,358,000 | 14,539 | |
lululemon athletica, Inc. (a) | 1,506,564 | 495,177 | |
LVMH Moet Hennessy Louis Vuitton SE | 110,055 | 66,539 | |
Moncler SpA | 900,743 | 50,949 | |
NIKE, Inc. Class B | 2,689,567 | 359,299 | |
Puma AG | 280,363 | 27,484 | |
PVH Corp. | 1,460,707 | 124,540 | |
Tapestry, Inc. | 954,239 | 30,173 | |
Tory Burch LLC (a)(c)(d)(e) | 293,611 | 21,263 | |
Under Armour, Inc. Class A (sub. vtg.) (a) | 1,168,686 | 20,452 | |
1,725,805 | |||
TOTAL CONSUMER DISCRETIONARY | 15,142,769 | ||
CONSUMER STAPLES - 1.1% | |||
Beverages - 0.6% | |||
Boston Beer Co., Inc. Class A (a) | 121,363 | 111,277 | |
Celsius Holdings, Inc. (a)(b) | 360,200 | 19,235 | |
Constellation Brands, Inc. Class A (sub. vtg.) | 209,451 | 44,179 | |
Monster Beverage Corp. (a) | 1,139,451 | 98,939 | |
Nongfu Spring Co. Ltd. (H Shares) (a)(b)(f) | 1,876,712 | 14,172 | |
287,802 | |||
Food & Staples Retailing - 0.1% | |||
Blink Health, Inc. Series A1 (c)(e) | 51,117 | 1,668 | |
Performance Food Group Co. (a) | 628,067 | 29,444 | |
Sweetgreen, Inc. warrants 1/21/26 (a)(c)(e) | 346,965 | 1,371 | |
Walgreens Boots Alliance, Inc. | 305,000 | 15,326 | |
Zur Rose Group AG (a) | 24,101 | 11,080 | |
58,889 | |||
Food Products - 0.2% | |||
Bunge Ltd. | 227,140 | 14,864 | |
Darling Ingredients, Inc. (a) | 371,187 | 23,017 | |
Freshpet, Inc. (a) | 109,883 | 15,308 | |
Village Farms International, Inc. (a)(b) | 1,736,748 | 20,528 | |
73,717 | |||
Personal Products - 0.1% | |||
Herbalife Nutrition Ltd. (a) | 932,305 | 47,510 | |
Yatsen Holding Ltd. ADR | 158,981 | 3,051 | |
50,561 | |||
Tobacco - 0.1% | |||
JUUL Labs, Inc.: | |||
Class A (a)(c)(e) | 21,148 | 1,391 | |
Class B (a)(c)(e) | 6,625 | 436 | |
RLX Technology, Inc. ADR | 1,054,200 | 23,720 | |
Swedish Match Co. AB | 431,627 | 33,368 | |
58,915 | |||
TOTAL CONSUMER STAPLES | 529,884 | ||
ENERGY - 0.9% | |||
Energy Equipment & Services - 0.1% | |||
Schlumberger Ltd. | 1,313,411 | 29,171 | |
Oil, Gas & Consumable Fuels - 0.8% | |||
ConocoPhillips Co. | 780,614 | 31,248 | |
EOG Resources, Inc. | 575,643 | 29,335 | |
Hess Corp. | 248,674 | 13,423 | |
HollyFrontier Corp. | 338,600 | 9,637 | |
Neste Oyj | 69,145 | 4,890 | |
Occidental Petroleum Corp. | 578,404 | 11,603 | |
Pioneer Natural Resources Co. | 224,317 | 27,120 | |
Reliance Industries Ltd. | 509,255 | 6,762 | |
Reliance Industries Ltd. | 7,638,838 | 193,115 | |
Reliance Industries Ltd. sponsored GDR (f) | 442,251 | 22,422 | |
Renewable Energy Group, Inc. (a) | 184,599 | 16,540 | |
Suncor Energy, Inc. | 1,695,733 | 28,365 | |
Valero Energy Corp. | 84,500 | 4,768 | |
399,228 | |||
TOTAL ENERGY | 428,399 | ||
FINANCIALS - 1.2% | |||
Banks - 0.4% | |||
Citigroup, Inc. | 1,205,571 | 69,911 | |
Kotak Mahindra Bank Ltd. (a) | 779,186 | 18,319 | |
Wells Fargo & Co. | 3,113,223 | 93,023 | |
181,253 | |||
Capital Markets - 0.2% | |||
CarLotz, Inc. (c) | 1,101,428 | 10,349 | |
Goldman Sachs Group, Inc. | 107,363 | 29,114 | |
London Stock Exchange Group PLC | 161,862 | 19,215 | |
Morgan Stanley | 483,085 | 32,391 | |
Open Lending Corp. (a) | 302,369 | 10,973 | |
Star Peak Energy Transition Corp. Class A (a)(b) | 159,200 | 4,314 | |
106,356 | |||
Consumer Finance - 0.2% | |||
Ally Financial, Inc. | 1,552,937 | 58,763 | |
Capital One Financial Corp. | 450,247 | 46,943 | |
105,706 | |||
Diversified Financial Services - 0.3% | |||
Ant International Co. Ltd. Class C (a)(c)(e) | 4,367,660 | 37,562 | |
ArcLight Clean Transition Corp. Class A (a)(b) | 409,343 | 9,812 | |
BTRS Holdings, Inc. (c) | 734,153 | 10,704 | |
Experience Investment Corp. Class A (a) | 1,313,053 | 19,368 | |
InterPrivate Acquisition Corp. (a) | 782,933 | 11,556 | |
Jaws Acquisition Corp. (a) | 1,114,460 | 14,499 | |
Northern Star Acquisition Corp. unit | 75,872 | 1,038 | |
Novus Capital Corp. (c) | 1,824,864 | 40,977 | |
Patria Investments Ltd. | 300,400 | 5,362 | |
150,878 | |||
Insurance - 0.0% | |||
eHealth, Inc. (a)(b) | 105,615 | 5,054 | |
Goosehead Insurance | 116,243 | 15,530 | |
20,584 | |||
Thrifts & Mortgage Finance - 0.1% | |||
Housing Development Finance Corp. Ltd. | 697,722 | 22,770 | |
TOTAL FINANCIALS | 587,547 | ||
HEALTH CARE - 7.6% | |||
Biotechnology - 2.7% | |||
4D Molecular Therapeutics, Inc. | 266,296 | 11,280 | |
ACADIA Pharmaceuticals, Inc. (a) | 361,783 | 17,384 | |
Acceleron Pharma, Inc. (a) | 428,247 | 49,475 | |
ADC Therapeutics SA (a) | 407,510 | 11,643 | |
Agios Pharmaceuticals, Inc. (a) | 366,182 | 17,200 | |
Akouos, Inc. (a) | 242,978 | 3,868 | |
Allakos, Inc. (a)(b) | 77,924 | 10,390 | |
Alnylam Pharmaceuticals, Inc. (a) | 786,611 | 118,369 | |
Annexon, Inc. (a) | 462,764 | 10,181 | |
Arcutis Biotherapeutics, Inc. (a) | 370,001 | 10,097 | |
Argenx SE ADR (a) | 80,600 | 23,617 | |
Ascendis Pharma A/S sponsored ADR (a) | 463,012 | 69,521 | |
Avidity Biosciences, Inc. | 205,222 | 4,695 | |
BeiGene Ltd. (a) | 571,375 | 14,009 | |
BeiGene Ltd. ADR (a) | 132,882 | 42,522 | |
BioAtla, Inc. | 130,510 | 5,739 | |
Biohaven Pharmaceutical Holding Co. Ltd. (a) | 44,797 | 3,818 | |
BioXcel Therapeutics, Inc. (a) | 69,857 | 3,236 | |
BridgeBio Pharma, Inc. (a)(b) | 144,181 | 8,184 | |
CareDx, Inc. (a) | 135,125 | 10,328 | |
Cibus Corp.: | |||
Series C (a)(c)(d)(e) | 3,045,600 | 5,093 | |
Series D (a)(c)(d)(e) | 1,716,640 | 2,146 | |
Cullinan Management, Inc. | 85,800 | 3,261 | |
CytomX Therapeutics, Inc. (a)(f) | 378,621 | 2,616 | |
FibroGen, Inc. (a) | 424,382 | 20,447 | |
Forma Therapeutics Holdings, Inc. | 261,767 | 10,112 | |
Fusion Pharmaceuticals, Inc. (a) | 272,012 | 3,074 | |
Generation Bio Co. | 856,203 | 22,544 | |
Gracell Biotechnologies, Inc. ADR | 246,400 | 5,105 | |
Invitae Corp. (a)(b) | 283,242 | 14,026 | |
Ionis Pharmaceuticals, Inc. (a) | 149,814 | 8,999 | |
Karuna Therapeutics, Inc. (a) | 183,173 | 18,176 | |
Kinnate Biopharma, Inc. | 147,831 | 4,849 | |
Kronos Bio, Inc. (b) | 325,528 | 8,949 | |
Kura Oncology, Inc. (a) | 240,711 | 7,209 | |
Mirati Therapeutics, Inc. (a) | 56,939 | 11,691 | |
Moderna, Inc. (a) | 75,700 | 13,108 | |
Natera, Inc. (a) | 95,402 | 10,174 | |
Neurocrine Biosciences, Inc. (a) | 416,319 | 45,691 | |
Novavax, Inc. (a)(b) | 239,876 | 52,998 | |
Passage Bio, Inc. | 258,985 | 4,833 | |
Prelude Therapeutics, Inc. | 257,156 | 16,702 | |
Protagonist Therapeutics, Inc. (a) | 416,806 | 8,632 | |
Regeneron Pharmaceuticals, Inc. (a) | 542,795 | 273,482 | |
Relay Therapeutics, Inc. (a) | 283,508 | 14,056 | |
Revolution Medicines, Inc. | 341,471 | 14,390 | |
Sage Therapeutics, Inc. (a) | 552,176 | 44,533 | |
Scholar Rock Holding Corp. (a) | 96,264 | 5,743 | |
Seagen, Inc. (a) | 108,934 | 17,895 | |
Seer, Inc. | 127,818 | 7,976 | |
Shattuck Labs, Inc. | 190,438 | 9,448 | |
Silverback Therapeutics, Inc. | 274,259 | 12,045 | |
Taysha Gene Therapies, Inc. | 227,472 | 5,914 | |
TG Therapeutics, Inc. (a) | 222,693 | 10,749 | |
Turning Point Therapeutics, Inc. (a) | 533,320 | 66,926 | |
Twist Bioscience Corp. (a) | 39,620 | 6,519 | |
Vaxcyte, Inc. | 384,187 | 9,424 | |
Xencor, Inc. (a) | 398,672 | 18,239 | |
Zai Lab Ltd. ADR (a) | 495,936 | 79,384 | |
1,342,714 | |||
Health Care Equipment & Supplies - 2.1% | |||
Align Technology, Inc. (a) | 24,887 | 13,075 | |
Atricure, Inc. (a) | 65,235 | 3,799 | |
Axonics Modulation Technologies, Inc. (a) | 765,582 | 39,581 | |
CryoPort, Inc. (a) | 140,800 | 9,603 | |
Danaher Corp. | 438,536 | 104,301 | |
DexCom, Inc. (a) | 496,285 | 186,032 | |
Hologic, Inc. (a) | 531,962 | 42,413 | |
InMode Ltd. (a) | 476,853 | 28,068 | |
Insulet Corp. (a) | 333,950 | 89,225 | |
Intuitive Surgical, Inc. (a) | 375,562 | 280,785 | |
Novocure Ltd. (a) | 255,032 | 41,050 | |
Outset Medical, Inc. | 146,936 | 7,616 | |
Pulmonx Corp. | 45,395 | 2,575 | |
Shockwave Medical, Inc. (a) | 930,004 | 107,918 | |
Tandem Diabetes Care, Inc. (a) | 742,860 | 68,826 | |
1,024,867 | |||
Health Care Providers & Services - 0.6% | |||
1Life Healthcare, Inc. (a) | 848,016 | 42,910 | |
Alignment Healthcare Partners unit (c)(e) | 289,571 | 5,719 | |
Castle Biosciences, Inc. (a) | 76,554 | 5,116 | |
Cigna Corp. | 137,677 | 29,883 | |
Guardant Health, Inc. (a) | 476,924 | 74,162 | |
Humana, Inc. | 279,374 | 107,031 | |
Oak Street Health, Inc. (a) | 59,622 | 3,093 | |
Oak Street Health, Inc. | 475,532 | 24,419 | |
Owens & Minor, Inc. | 368,732 | 10,723 | |
Surgery Partners, Inc. (a) | 348,900 | 13,007 | |
316,063 | |||
Health Care Technology - 0.2% | |||
American Well Corp. (b) | 439,895 | 15,577 | |
Certara, Inc. (b) | 408,950 | 14,076 | |
GoodRx Holdings, Inc. (b) | 789,459 | 36,805 | |
MultiPlan Corp. (c) | 2,613,350 | 20,855 | |
MultiPlan Corp. warrants (a)(c) | 138,859 | 323 | |
87,636 | |||
Life Sciences Tools & Services - 0.9% | |||
10X Genomics, Inc. (a) | 302,097 | 51,704 | |
Avantor, Inc. (a) | 862,369 | 25,431 | |
Berkeley Lights, Inc. (a) | 155,766 | 11,215 | |
Bio-Rad Laboratories, Inc. Class A (a) | 33,349 | 19,135 | |
Eurofins Scientific SA (a) | 95,030 | 9,131 | |
Maravai LifeSciences Holdings, Inc. | 141,858 | 4,942 | |
Nanostring Technologies, Inc. (a) | 311,935 | 21,845 | |
Sotera Health Co. | 377,592 | 9,851 | |
Thermo Fisher Scientific, Inc. | 557,961 | 284,393 | |
437,647 | |||
Pharmaceuticals - 1.1% | |||
Antengene Corp. | 6,379,700 | 14,159 | |
Aphria, Inc. (a)(b) | 2,349,989 | 28,623 | |
Arvinas Holding Co. LLC (a) | 62,020 | 4,679 | |
Atea Pharmaceuticals, Inc. | 181,778 | 13,270 | |
Chiasma, Inc. warrants 12/16/24 (a) | 55,391 | 19 | |
Eli Lilly & Co. | 26,900 | 5,594 | |
Graybug Vision, Inc. | 460,145 | 14,103 | |
Hansoh Pharmaceutical Group Co. Ltd. (a)(f) | 2,437,705 | 13,331 | |
Harmony Biosciences Holdings, Inc. (a) | 162,072 | 5,812 | |
Horizon Therapeutics PLC (a) | 1,463,169 | 106,050 | |
Intra-Cellular Therapies, Inc. (a) | 638,139 | 20,516 | |
Nektar Therapeutics (a) | 780,655 | 15,379 | |
OptiNose, Inc. (a) | 1,089,599 | 4,337 | |
Roche Holding AG (participation certificate) | 91,029 | 31,415 | |
Zoetis, Inc. Class A | 1,848,493 | 285,130 | |
562,417 | |||
TOTAL HEALTH CARE | 3,771,344 | ||
INDUSTRIALS - 5.5% | |||
Aerospace & Defense - 0.3% | |||
Axon Enterprise, Inc. (a) | 398,963 | 65,494 | |
Space Exploration Technologies Corp.: | |||
Class A (a)(c)(e) | 242,545 | 65,487 | |
Class C (a)(c)(e) | 2,783 | 751 | |
The Boeing Co. | 145,190 | 28,194 | |
159,926 | |||
Air Freight & Logistics - 0.2% | |||
FedEx Corp. | 514,547 | 121,093 | |
Airlines - 0.4% | |||
American Airlines Group, Inc. (b) | 1,200,974 | 20,621 | |
Delta Air Lines, Inc. | 1,259,554 | 47,813 | |
JetBlue Airways Corp. (a) | 3,798,805 | 54,475 | |
Spirit Airlines, Inc. (a) | 972,219 | 25,219 | |
United Airlines Holdings, Inc. (a) | 558,068 | 22,317 | |
170,445 | |||
Building Products - 0.3% | |||
Builders FirstSource, Inc. (a) | 1,037,183 | 39,672 | |
Carrier Global Corp. | 1,163,339 | 44,789 | |
The AZEK Co., Inc. | 1,488,338 | 59,370 | |
Trane Technologies PLC | 58,038 | 8,320 | |
152,151 | |||
Commercial Services & Supplies - 0.0% | |||
Aker Carbon Capture A/S (a) | 43,057 | 89 | |
MYT Netherlands Parent BV ADR (b) | 544,100 | 17,912 | |
18,001 | |||
Construction & Engineering - 0.1% | |||
Dycom Industries, Inc. (a) | 638,604 | 51,816 | |
Quanta Services, Inc. | 193,071 | 13,606 | |
65,422 | |||
Electrical Equipment - 0.3% | |||
Ballard Power Systems, Inc. (a) | 143,100 | 4,890 | |
Bloom Energy Corp. Class A (a)(b) | 613,726 | 21,425 | |
Plug Power, Inc. (a) | 430,900 | 27,220 | |
Sunrun, Inc. (a) | 1,156,836 | 80,134 | |
133,669 | |||
Industrial Conglomerates - 0.1% | |||
General Electric Co. | 6,255,904 | 66,813 | |
Machinery - 0.1% | |||
Caterpillar, Inc. | 75,360 | 13,779 | |
Deere & Co. | 103,010 | 29,749 | |
Desktop Metal, Inc. (a)(b) | 481,700 | 11,065 | |
54,593 | |||
Professional Services - 0.2% | |||
Boa Vista Servicos SA | 3,986,600 | 6,929 | |
Upwork, Inc. (a) | 1,569,155 | 65,041 | |
71,970 | |||
Road & Rail - 3.5% | |||
Lyft, Inc. (a) | 18,123,879 | 805,788 | |
Uber Technologies, Inc. (a) | 17,659,379 | 899,392 | |
1,705,180 | |||
TOTAL INDUSTRIALS | 2,719,263 | ||
INFORMATION TECHNOLOGY - 35.5% | |||
Communications Equipment - 0.0% | |||
F5 Networks, Inc. (a) | 27,400 | 5,369 | |
Electronic Equipment & Components - 0.5% | |||
908 Devices, Inc. | 28,377 | 1,564 | |
II-VI, Inc. (a)(b) | 2,570,568 | 216,108 | |
217,672 | |||
IT Services - 3.6% | |||
Affirm Holdings, Inc. (b) | 122,200 | 12,170 | |
Afterpay Ltd. (a) | 420,052 | 43,370 | |
Endava PLC ADR (a) | 280,585 | 22,183 | |
Liveramp Holdings, Inc. (a) | 63,500 | 4,808 | |
MongoDB, Inc. Class A (a) | 134,101 | 49,565 | |
PayPal Holdings, Inc. (a) | 2,642,989 | 619,279 | |
Repay Holdings Corp. (a) | 628,077 | 13,912 | |
Riskified Ltd. (a)(c)(e) | 367,600 | 4,227 | |
Riskified Ltd. warrants (a)(c)(e) | 3,105 | 0 | |
Shopify, Inc. Class A (a) | 256,454 | 279,626 | |
Snowflake Computing, Inc. (b) | 124,537 | 33,930 | |
Snowflake Computing, Inc.: | |||
Class B | 16,836 | 4,358 | |
Class B (f) | 5,611 | 1,529 | |
Square, Inc. (a) | 1,322,552 | 285,618 | |
Twilio, Inc. Class A (a) | 730,464 | 262,551 | |
Visa, Inc. Class A | 723,212 | 139,761 | |
1,776,887 | |||
Semiconductors & Semiconductor Equipment - 9.5% | |||
Advanced Micro Devices, Inc. (a) | 3,408,878 | 291,936 | |
Allegro MicroSystems LLC (a)(b) | 258,132 | 7,207 | |
Ambarella, Inc. (a) | 146,700 | 13,843 | |
Array Technologies, Inc. | 2,309,751 | 94,145 | |
Cirrus Logic, Inc. (a) | 352,965 | 33,069 | |
Enphase Energy, Inc. (a) | 701,865 | 127,985 | |
First Solar, Inc. (a)(b) | 287,060 | 28,462 | |
Lam Research Corp. | 64,210 | 31,074 | |
Lattice Semiconductor Corp. (a) | 609,639 | 24,453 | |
Marvell Technology Group Ltd. | 25,319,623 | 1,302,948 | |
MediaTek, Inc. | 735,000 | 22,960 | |
Microchip Technology, Inc. | 52,300 | 7,119 | |
Micron Technology, Inc. (a) | 3,626,628 | 283,856 | |
NVIDIA Corp. | 3,006,019 | 1,561,897 | |
NXP Semiconductors NV | 4,008,528 | 643,248 | |
ON Semiconductor Corp. (a) | 1,531,374 | 52,817 | |
SolarEdge Technologies, Inc. (a)(b) | 209,627 | 60,442 | |
Synaptics, Inc. (a) | 175,363 | 17,400 | |
Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR | 350,860 | 42,637 | |
Universal Display Corp. | 218,978 | 50,545 | |
4,698,043 | |||
Software - 12.4% | |||
Adobe, Inc. (a) | 1,195,705 | 548,554 | |
Anaplan, Inc. (a) | 237,194 | 15,821 | |
Atlassian Corp. PLC (a) | 61,123 | 14,127 | |
Atom Tickets LLC (a)(c)(d)(e) | 1,204,239 | 747 | |
Autodesk, Inc. (a) | 135,786 | 37,671 | |
Avalara, Inc. (a) | 194,135 | 29,120 | |
Bill.Com Holdings, Inc. (a) | 236,811 | 28,863 | |
Bird Rides, Inc. (e) | 2,379,213 | 18,820 | |
Cerence, Inc. (a)(b) | 157,122 | 17,584 | |
Cloudflare, Inc. (a) | 1,134,202 | 86,948 | |
Coupa Software, Inc. (a) | 142,962 | 44,300 | |
Crowdstrike Holdings, Inc. (a) | 472,768 | 102,023 | |
Digital Turbine, Inc. (a) | 416,118 | 23,806 | |
Docebo, Inc. (b) | 273,623 | 13,506 | |
DocuSign, Inc. (a) | 439,238 | 102,294 | |
Duck Creek Technologies, Inc. (a) | 209,300 | 10,118 | |
Elastic NV (a) | 560,345 | 85,150 | |
Epic Games, Inc. (c)(e) | 6,131 | 3,525 | |
FireEye, Inc. (a) | 427,859 | 8,985 | |
Five9, Inc. (a) | 158,613 | 26,369 | |
Freee KK (a) | 51,069 | 4,339 | |
HubSpot, Inc. (a) | 298,176 | 110,981 | |
Intuit, Inc. | 37,729 | 13,629 | |
Kuaishou Technology (a) | 471,000 | 6,986 | |
Lightspeed POS, Inc. (Canada) (a) | 1,577,176 | 102,530 | |
Microsoft Corp. | 12,703,839 | 2,946,782 | |
Nuance Communications, Inc. (a) | 1,411,138 | 64,263 | |
Palo Alto Networks, Inc. (a) | 26,279 | 9,217 | |
Paycom Software, Inc. (a) | 34,643 | 13,155 | |
Qualtrics International, Inc. | 238,700 | 10,503 | |
RingCentral, Inc. (a) | 187,935 | 70,085 | |
Salesforce.com, Inc. (a) | 4,033,013 | 909,686 | |
ServiceNow, Inc. (a) | 304,758 | 165,532 | |
Tanium, Inc. Class B (a)(c)(e) | 554,900 | 6,323 | |
Telos Corp. | 211,642 | 7,471 | |
The Trade Desk, Inc. (a) | 162,339 | 124,350 | |
Volue A/S | 1,125,902 | 6,309 | |
Workday, Inc. Class A (a) | 561,567 | 127,773 | |
Zoom Video Communications, Inc. Class A (a) | 585,546 | 217,864 | |
6,136,109 | |||
Technology Hardware, Storage & Peripherals - 9.5% | |||
Apple, Inc. | 35,319,075 | 4,660,710 | |
TOTAL INFORMATION TECHNOLOGY | 17,494,790 | ||
MATERIALS - 0.8% | |||
Chemicals - 0.6% | |||
Corteva, Inc. | 838,110 | 33,407 | |
LG Chemical Ltd. | 13,350 | 10,946 | |
Linde PLC | 77,433 | 19,002 | |
Nutrien Ltd. | 1,637,217 | 80,635 | |
Olin Corp. | 1,165,529 | 27,868 | |
PPG Industries, Inc. | 217,888 | 29,352 | |
The Chemours Co. LLC | 3,530,370 | 92,990 | |
The Mosaic Co. | 1,136,762 | 29,510 | |
323,710 | |||
Metals & Mining - 0.2% | |||
Anglo American PLC (United Kingdom) | 414,653 | 13,715 | |
ArcelorMittal SA Class A unit (a) | 1,569,937 | 33,895 | |
Freeport-McMoRan, Inc. | 1,191,179 | 32,055 | |
Gatos Silver, Inc. | 924,120 | 12,208 | |
91,873 | |||
TOTAL MATERIALS | 415,583 | ||
REAL ESTATE - 0.6% | |||
Equity Real Estate Investment Trusts (REITs) - 0.1% | |||
Park Hotels & Resorts, Inc. | 91,942 | 1,534 | |
Simon Property Group, Inc. | 658,122 | 61,159 | |
62,693 | |||
Real Estate Management & Development - 0.5% | |||
KE Holdings, Inc. ADR (a) | 821,885 | 48,573 | |
Opendoor Technologies, Inc. (a)(b) | 534,152 | 13,952 | |
Realogy Holdings Corp. (a) | 1,037,400 | 14,731 | |
Redfin Corp. (a)(b) | 1,996,263 | 142,154 | |
219,410 | |||
TOTAL REAL ESTATE | 282,103 | ||
UTILITIES - 0.1% | |||
Electric Utilities - 0.0% | |||
PG&E Corp. (a) | 683,907 | 7,817 | |
Independent Power and Renewable Electricity Producers - 0.1% | |||
Brookfield Renewable Corp. | 282,224 | 15,822 | |
Shoals Technologies Group, Inc. | 746,500 | 25,329 | |
The AES Corp. | 1,021,484 | 24,914 | |
66,065 | |||
TOTAL UTILITIES | 73,882 | ||
TOTAL COMMON STOCKS | |||
(Cost $20,211,093) | 48,406,854 | ||
Preferred Stocks - 2.0% | |||
Convertible Preferred Stocks - 1.8% | |||
COMMUNICATION SERVICES - 0.1% | |||
Diversified Telecommunication Services - 0.1% | |||
Starry, Inc.: | |||
Series C (a)(c)(e) | 5,833,836 | 8,342 | |
Series D (a)(c)(e) | 6,810,656 | 9,739 | |
18,081 | |||
CONSUMER DISCRETIONARY - 0.5% | |||
Automobiles - 0.2% | |||
Rad Power Bikes, Inc.: | |||
Series A (c)(e) | 120,997 | 584 | |
Series C (c)(e) | 476,111 | 2,297 | |
Rivian Automotive, Inc.: | |||
Series E (c)(e) | 2,276,313 | 83,882 | |
Series F (c)(e) | 1,007,008 | 37,108 | |
123,871 | |||
Hotels, Restaurants & Leisure - 0.1% | |||
MOD Super Fast Pizza Holdings LLC: | |||
Series 3 (a)(c)(d)(e) | 68,723 | 14,279 | |
Series 4 (a)(c)(d)(e) | 6,272 | 1,227 | |
Series 5 (a)(c)(d)(e) | 25,187 | 4,635 | |
Topgolf International, Inc. Series F (a)(c) | 415,730 | 9,720 | |
29,861 | |||
Internet & Direct Marketing Retail - 0.2% | |||
Instacart, Inc. Series H (c)(e) | 245,379 | 14,723 | |
Reddit, Inc. Series B (a)(c)(e) | 524,232 | 29,708 | |
The Honest Co., Inc.: | |||
Series C (a)(c)(e) | 350,333 | 10,664 | |
Series D (a)(c)(e) | 77,448 | 2,357 | |
Series E (a)(c)(e) | 551,397 | 14,312 | |
Zomato Pvt Ltd.: | |||
Series B (c)(e)(h) | 28 | 150 | |
Series E (c)(e)(h) | 187,572 | 0 | |
Series G (c)(e)(h) | 17 | 91 | |
Series J7 (c)(e) | 1,076 | 5,760 | |
77,765 | |||
Specialty Retail - 0.0% | |||
Fanatics, Inc. Series E (c)(e) | 1,040,349 | 17,988 | |
Textiles, Apparel & Luxury Goods - 0.0% | |||
Allbirds, Inc.: | |||
Series A (a)(c)(e) | 71,465 | 826 | |
Series B (a)(c)(e) | 12,560 | 145 | |
Series C (a)(c)(e) | 119,995 | 1,387 | |
Series Seed (a)(c)(e) | 38,400 | 444 | |
2,802 | |||
TOTAL CONSUMER DISCRETIONARY | 252,287 | ||
CONSUMER STAPLES - 0.6% | |||
Food & Staples Retailing - 0.2% | |||
Blink Health, Inc. Series C (a)(c)(e) | 150,137 | 4,900 | |
Roofoods Ltd.: | |||
Series F (a)(c)(e) | 41,941 | 36,814 | |
Series H (c)(e) | 11,700 | 10,270 | |
Sweetgreen, Inc.: | |||
Series C (a)(c)(e) | 15,004 | 197 | |
Series D (a)(c)(e) | 241,354 | 3,174 | |
Series H (a)(c)(e) | 3,242,523 | 42,639 | |
Series I (a)(c)(e) | 568,842 | 7,480 | |
Series J (c)(e) | 346,965 | 4,563 | |
110,037 | |||
Food Products - 0.0% | |||
Agbiome LLC Series C (a)(c)(e) | 1,091,300 | 6,912 | |
Tobacco - 0.4% | |||
JUUL Labs, Inc.: | |||
Series C (a)(c)(e) | 2,570,575 | 169,067 | |
Series D (a)(c)(e) | 13,822 | 909 | |
Series E (a)(c)(e) | 14,959 | 984 | |
170,960 | |||
TOTAL CONSUMER STAPLES | 287,909 | ||
FINANCIALS - 0.0% | |||
Diversified Financial Services - 0.0% | |||
Sonder Holdings, Inc. Series D1 (c)(e) | 606,719 | 6,532 | |
HEALTH CARE - 0.1% | |||
Biotechnology - 0.1% | |||
23andMe, Inc. Series F (a)(c)(e) | 800,982 | 13,897 | |
Immunocore Ltd. Series A (a)(c) | 11,740 | 1,442 | |
Nuvation Bio, Inc. Series A (a)(c) | 8,221,300 | 14,058 | |
29,397 | |||
Health Care Providers & Services - 0.0% | |||
Mulberry Health, Inc. Series A-8 (a)(c)(e) | 2,728,716 | 26,620 | |
Pharmaceuticals - 0.0% | |||
Castle Creek Pharmaceutical Holdings, Inc. Series B (a)(c)(e) | 3,301 | 2,163 | |
TOTAL HEALTH CARE | 58,180 | ||
INDUSTRIALS - 0.1% | |||
Aerospace & Defense - 0.1% | |||
Space Exploration Technologies Corp.: | |||
Series G (a)(c)(e) | 97,277 | 26,265 | |
Series H (a)(c)(e) | 25,767 | 6,957 | |
Series N (c)(e) | 79,406 | 21,440 | |
54,662 | |||
Professional Services - 0.0% | |||
YourPeople, Inc. Series C (a)(c)(e) | 692,196 | 132 | |
TOTAL INDUSTRIALS | 54,794 | ||
INFORMATION TECHNOLOGY - 0.4% | |||
Electronic Equipment & Components - 0.0% | |||
Enevate Corp. Series E (c)(e) | 12,084,432 | 13,398 | |
IT Services - 0.1% | |||
AppNexus, Inc. Series E (Escrow) (a)(c)(e) | 646,522 | 20 | |
ByteDance Ltd. Series E1 (c)(e) | 293,038 | 32,109 | |
Riskified Ltd.: | |||
Series D (c)(e) | 109,000 | 1,254 | |
Series E (a)(c)(e) | 370,000 | 4,255 | |
37,638 | |||
Software - 0.3% | |||
ACV Auctions, Inc.: | |||
Series E (a)(c)(e) | 866,184 | 5,131 | |
Series E1 (c)(e) | 1,215,138 | 7,199 | |
Compass, Inc. Series E (a)(c)(e) | 53,263 | 9,742 | |
Dataminr, Inc. Series D (a)(c)(e) | 277,250 | 3,050 | |
Delphix Corp. Series D (a)(c)(e) | 675,445 | 5,640 | |
DoubleVerify, Inc. Series A (c)(e) | 5,121,308 | 29,381 | |
Jet.Com, Inc. Series B1 (Escrow) (a)(c)(e) | 2,928,086 | 0 | |
Malwarebytes Corp. Series B (a)(c)(e) | 1,056,193 | 25,021 | |
Nuvia, Inc. Series B (c)(e) | 1,606,942 | 11,811 | |
Taboola.Com Ltd. Series E (a)(c) | 634,902 | 18,990 | |
UiPath, Inc.: | |||
Series A1 (a)(c)(e) | 384,849 | 23,967 | |
Series B1 (a)(c)(e) | 19,170 | 1,194 | |
Series B2 (a)(c)(e) | 95,481 | 5,946 | |
147,072 | |||
TOTAL INFORMATION TECHNOLOGY | 198,108 | ||
TOTAL CONVERTIBLE PREFERRED STOCKS | 875,891 | ||
Nonconvertible Preferred Stocks - 0.2% | |||
CONSUMER DISCRETIONARY - 0.2% | |||
Automobiles - 0.1% | |||
Neutron Holdings, Inc.: | |||
Series 1C (c)(e) | 50,654,200 | 1,013 | |
Series 1D (c)(e) | 85,315,542 | 1,706 | |
Volkswagen AG | 258,031 | 48,987 | |
Waymo LLC Series A2 (c)(e) | 81,316 | 6,982 | |
58,688 | |||
Specialty Retail - 0.1% | |||
Cazoo Holdings Ltd.: | |||
Series A (c)(e) | 10,823 | 158 | |
Series B (c)(e) | 189,488 | 2,759 | |
Series C (c)(e) | 3,846 | 56 | |
Series D (c)(e) | 676,921 | 9,855 | |
12,828 | |||
TOTAL CONSUMER DISCRETIONARY | 71,516 | ||
HEALTH CARE - 0.0% | |||
Pharmaceuticals - 0.0% | |||
Castle Creek Pharmaceutical Holdings, Inc. Series A4 (a)(c)(e) | 29,758 | 19,497 | |
TOTAL NONCONVERTIBLE PREFERRED STOCKS | 91,013 | ||
TOTAL PREFERRED STOCKS | |||
(Cost $605,631) | 966,904 | ||
Principal Amount (000s) | Value (000s) | ||
Convertible Bonds - 0.0% | |||
CONSUMER DISCRETIONARY - 0.0% | |||
Automobiles - 0.0% | |||
Neutron Holdings, Inc.: | |||
4% 5/22/27 (c)(e) | 2,433 | 2,433 | |
4% 6/12/27 (c)(e) | 647 | 647 | |
(Cost $3,080) | 3,080 | ||
Preferred Securities - 0.0% | |||
INFORMATION TECHNOLOGY - 0.0% | |||
Electronic Equipment & Components - 0.0% | |||
Enevate Corp. 0% 1/29/23 (c)(e) | |||
(Cost $5,145) | 5,145 | 5,145 | |
Shares | Value (000s) | ||
Money Market Funds - 1.5% | |||
Fidelity Securities Lending Cash Central Fund 0.09% (i)(j) | |||
(Cost $767,983) | 767,906,657 | 767,983 | |
TOTAL INVESTMENT IN SECURITIES - 101.6% | |||
(Cost $21,592,932) | 50,149,966 | ||
NET OTHER ASSETS (LIABILITIES) - (1.6)% | (804,896) | ||
NET ASSETS - 100% | $49,345,070 |
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 (including private placements) - 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 $1,367,536,000 or 2.8% of net assets.
(d) Investment is owned by a wholly-owned subsidiary (Subsidiary) that is treated as a corporation for U.S. tax purposes.
(e) Level 3 security
(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 $143,709,000 or 0.3% of net assets.
(g) Affiliated company
(h) Security or a portion of the security purchased on a delayed delivery or when-issued basis.
(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 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) |
23andMe, Inc. Series F | 8/31/17 | $11,121 |
ACV Auctions, Inc. Series E | 11/6/19 | $4,790 |
ACV Auctions, Inc. Series E1 | 9/4/20 | $7,199 |
Agbiome LLC Series C | 6/29/18 | $6,912 |
Alignment Healthcare Partners unit | 2/28/20 | $3,509 |
Allbirds, Inc. | 10/9/18 | $1,986 |
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 |
Allbirds, Inc. Series Seed | 10/9/18 | $421 |
Ant International Co. Ltd. Class C | 5/16/18 | $24,503 |
AppNexus, Inc. Series E (Escrow) | 8/1/14 | $0 |
Atom Tickets LLC | 8/15/17 | $7,000 |
Blink Health, Inc. Series A1 | 12/30/20 | $1,385 |
Blink Health, Inc. Series C | 11/7/19 - 1/21/21 | $5,731 |
BTRS Holdings, Inc. | 1/12/21 | $7,342 |
ByteDance Ltd. Series E1 | 11/18/20 | $32,109 |
CarLotz, Inc. | 1/21/21 | $11,014 |
Castle Creek Pharmaceutical Holdings, Inc. Series A4 | 9/29/16 | $9,831 |
Castle Creek Pharmaceutical Holdings, Inc. Series B | 10/9/18 | $1,360 |
Cazoo Holdings Ltd. | 9/30/20 | $4,545 |
Cazoo Holdings Ltd. Series A | 9/30/20 | $148 |
Cazoo Holdings Ltd. Series B | 9/30/20 | $2,598 |
Cazoo Holdings Ltd. Series C | 9/30/20 | $53 |
Cazoo Holdings Ltd. Series D | 9/30/20 | $9,281 |
Cibus Corp. Series C | 2/16/18 | $6,396 |
Cibus Corp. Series D | 5/10/19 | $2,146 |
Compass, Inc. Series E | 11/3/17 | $3,594 |
Dataminr, Inc. Series D | 3/6/15 | $3,535 |
Delphix Corp. Series D | 7/10/15 | $6,079 |
DoubleVerify, Inc. Series A | 11/18/20 | $29,381 |
Enevate Corp. Series E | 1/29/21 | $13,398 |
Enevate Corp. 0% 1/29/23 | 1/29/21 | $5,145 |
Epic Games, Inc. | 7/30/20 | $3,525 |
Fanatics, Inc. Series E | 8/13/20 | $17,988 |
FSN E-Commerce Ventures Pvt Ltd. | 10/7/20 - 10/26/20 | $16,851 |
Immunocore Ltd. Series A | 7/27/15 | $2,122 |
Instacart, Inc. Series H | 11/13/20 | $14,723 |
Jet.Com, Inc. Series B1 (Escrow) | 3/19/18 | $0 |
JUUL Labs, Inc. Class A | 12/20/17 - 7/6/18 | $453 |
JUUL Labs, Inc. Class B | 11/21/17 | $0 |
JUUL Labs, Inc. Series C | 5/22/15 - 7/6/18 | $0 |
JUUL Labs, Inc. Series D | 6/25/18 - 7/6/18 | $0 |
JUUL Labs, Inc. Series E | 12/20/17 - 7/6/18 | $321 |
Lordstown Motors Corp. | 10/23/20 | $32,063 |
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 A-8 | 1/20/16 | $18,432 |
MultiPlan Corp. | 10/8/20 | $25,875 |
MultiPlan Corp. warrants | 10/8/20 | $0 |
Neutron Holdings, Inc. Series 1C | 7/3/18 | $9,262 |
Neutron Holdings, Inc. Series 1D | 1/25/19 | $20,689 |
Neutron Holdings, Inc. warrants | 6/4/20 | $0 |
Neutron Holdings, Inc. 4% 5/22/27 | 6/4/20 | $2,433 |
Neutron Holdings, Inc. 4% 6/12/27 | 6/12/20 | $647 |
Novus Capital Corp. | 1/29/21 | $18,249 |
Nuvation Bio, Inc. Series A | 6/17/19 | $6,342 |
Nuvia, Inc. Series B | 9/18/20 | $5,154 |
Rad Power Bikes, Inc. | 1/21/21 | $4,477 |
Rad Power Bikes, Inc. Series A | 1/21/21 | $584 |
Rad Power Bikes, Inc. Series C | 1/21/21 | $2,297 |
Reddit, Inc. Series B | 7/26/17 | $7,442 |
Riskified Ltd. | 12/20/19 - 4/15/20 | $3,324 |
Riskified Ltd. Series D | 11/18/20 | $1,254 |
Riskified Ltd. Series E | 10/28/19 | $3,520 |
Riskified Ltd. warrants | 10/28/19 | $0 |
Rivian Automotive, Inc. Series E | 7/10/20 | $35,260 |
Rivian Automotive, Inc. Series F | 1/19/21 | $37,108 |
Roofoods Ltd. Series F | 9/12/17 | $14,829 |
Roofoods Ltd. Series H | 1/15/21 | $10,270 |
Rush Street Interactive, Inc. | 12/29/20 | $10,576 |
Skillz, Inc. | 12/16/20 | $17,820 |
Sonder Holdings, Inc. Series D1 | 12/20/19 | $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 |
Space Exploration Technologies Corp. Series N | 8/4/20 | $21,440 |
Starry, Inc. Series C | 12/8/17 | $5,379 |
Starry, Inc. Series D | 3/6/19 - 7/30/20 | $9,739 |
Sweetgreen, Inc. warrants 1/21/26 | 1/21/21 | $0 |
Sweetgreen, Inc. Series C | 9/13/19 | $257 |
Sweetgreen, Inc. Series D | 9/13/19 | $4,127 |
Sweetgreen, Inc. Series H | 11/9/18 | $42,282 |
Sweetgreen, Inc. Series I | 9/13/19 | $9,727 |
Sweetgreen, Inc. Series J | 1/21/21 | $5,933 |
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 |
Waymo LLC Series A2 | 5/8/20 | $6,982 |
WME Entertainment Parent, LLC Class A | 4/13/16 - 8/16/16 | $19,025 |
YourPeople, Inc. Series C | 5/1/15 | $10,314 |
Zomato Pvt Ltd. | 1/22/21 - 1/29/21 | $2,949 |
Zomato Pvt Ltd. Series B | 1/22/21 | $115 |
Zomato Pvt Ltd. Series E | 1/22/21 | $0 |
Zomato Pvt Ltd. Series G | 1/22/21 | $70 |
Zomato Pvt Ltd. Series J7 | 12/9/20 | $4,383 |
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 | $9 |
Fidelity Securities Lending Cash Central Fund | 2,124 |
Total | $2,133 |
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 (Amounts in thousands) | Value, beginning of period | Purchases | Sales Proceeds(a) | Dividend Income | Realized Gain (loss) | Change in Unrealized appreciation (depreciation) | Value, end of period |
Shift Technologies, Inc. Class A | 13,233 | 3,245 | 4,493 | -- | (1,968) | (1,796) | -- |
Tupperware Brands Corp. | -- | 91,570 | 626 | -- | 350 | 36,872 | 128,166 |
Total | $13,233 | $94,815 | $5,119 | $-- | $(1,618) | $35,076 | $128,166 |
(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 January 31, 2021, 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 | $6,979,371 | $6,652,271 | $293,862 | $33,238 |
Consumer Discretionary | 15,466,572 | 15,016,885 | 127,179 | 322,508 |
Consumer Staples | 817,793 | 525,018 | -- | 292,775 |
Energy | 428,399 | 428,399 | -- | -- |
Financials | 594,079 | 468,740 | 81,245 | 44,094 |
Health Care | 3,849,021 | 3,688,051 | 85,835 | 75,135 |
Industrials | 2,774,057 | 2,653,025 | -- | 121,032 |
Information Technology | 17,692,898 | 17,449,804 | 30,334 | 212,760 |
Materials | 415,583 | 415,583 | -- | -- |
Real Estate | 282,103 | 282,103 | -- | -- |
Utilities | 73,882 | 73,882 | -- | -- |
Corporate Bonds | 3,080 | -- | -- | 3,080 |
Preferred Securities | 5,145 | -- | -- | 5,145 |
Money Market Funds | 767,983 | 767,983 | -- | -- |
Total Investments in Securities: | $50,149,966 | $48,421,744 | $618,455 | $1,109,767 |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value:
(Amounts in thousands) | |
Investments in Securities: | |
Beginning Balance | $876,770 |
Net Realized Gain (Loss) on Investment Securities | -- |
Net Unrealized Gain (Loss) on Investment Securities | 40,707 |
Cost of Purchases | 253,251 |
Proceeds of Sales | (312) |
Amortization/Accretion | -- |
Transfers into Level 3 | -- |
Transfers out of Level 3 | (60,649) |
Ending Balance | $1,109,767 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2021 | $47,318 |
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. Cost of purchases and proceeds of sales may include securities received and/or delivered through 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 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 | 86.3% |
Cayman Islands | 4.5% |
Bermuda | 2.7% |
Netherlands | 1.6% |
Canada | 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) | January 31, 2021 (Unaudited) | |
Assets | ||
Investment in securities, at value (including securities loaned of $739,813) — See accompanying schedule: Unaffiliated issuers (cost $20,733,655) | $49,253,817 | |
Fidelity Central Funds (cost $767,983) | 767,983 | |
Other affiliated issuers (cost $91,294) | 128,166 | |
Total Investment in Securities (cost $21,592,932) | $50,149,966 | |
Cash | 1,286 | |
Restricted cash | 173 | |
Receivable for investments sold | 289,207 | |
Receivable for fund shares sold | 84,040 | |
Dividends receivable | 6,214 | |
Interest receivable | 81 | |
Distributions receivable from Fidelity Central Funds | 616 | |
Prepaid expenses | 37 | |
Other receivables | 1,609 | |
Total assets | 50,533,229 | |
Liabilities | ||
Payable for investments purchased | ||
Regular delivery | $261,251 | |
Delayed delivery | 2,640 | |
Payable for fund shares redeemed | 58,200 | |
Accrued management fee | 26,950 | |
Notes payable to affiliates | 59,861 | |
Other affiliated payables | 4,513 | |
Other payables and accrued expenses | 6,798 | |
Collateral on securities loaned | 767,946 | |
Total liabilities | 1,188,159 | |
Net Assets | $49,345,070 | |
Net Assets consist of: | ||
Paid in capital | $18,819,877 | |
Total accumulated earnings (loss) | 30,525,193 | |
Net Assets | $49,345,070 | |
Net Asset Value and Maximum Offering Price | ||
Blue Chip Growth: | ||
Net Asset Value, offering price and redemption price per share ($41,356,340 ÷ 250,526 shares) | $165.08 | |
Class K: | ||
Net Asset Value, offering price and redemption price per share ($7,988,730 ÷ 48,244 shares) | $165.59 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Amounts in thousands | Six months ended January 31, 2021 (Unaudited) | |
Investment Income | ||
Dividends | $69,456 | |
Interest | 59 | |
Income from Fidelity Central Funds (including $2,124 from security lending) | 2,133 | |
Total income | 71,648 | |
Expenses | ||
Management fee | ||
Basic fee | $115,931 | |
Performance adjustment | 28,560 | |
Transfer agent fees | 24,377 | |
Accounting fees | 1,130 | |
Custodian fees and expenses | 302 | |
Independent trustees' fees and expenses | 99 | |
Registration fees | 607 | |
Audit | 61 | |
Legal | 56 | |
Interest | 29 | |
Miscellaneous | 90 | |
Total expenses before reductions | 171,242 | |
Expense reductions | (1,001) | |
Total expenses after reductions | 170,241 | |
Net investment income (loss) | (98,593) | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 3,506,544 | |
Fidelity Central Funds | (1) | |
Other affiliated issuers | (1,618) | |
Foreign currency transactions | (213) | |
Written options | 543 | |
Total net realized gain (loss) | 3,505,255 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers (net of decrease in deferred foreign taxes of $410) | 7,195,040 | |
Other affiliated issuers | 35,076 | |
Assets and liabilities in foreign currencies | 46 | |
Total change in net unrealized appreciation (depreciation) | 7,230,162 | |
Net gain (loss) | 10,735,417 | |
Net increase (decrease) in net assets resulting from operations | $10,636,824 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Amounts in thousands | Six months ended January 31, 2021 (Unaudited) | Year ended July 31, 2020 |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $(98,593) | $(42,377) |
Net realized gain (loss) | 3,505,255 | 2,158,283 |
Change in net unrealized appreciation (depreciation) | 7,230,162 | 8,360,607 |
Net increase (decrease) in net assets resulting from operations | 10,636,824 | 10,476,513 |
Distributions to shareholders | (2,930,020) | (1,088,560) |
Share transactions - net increase (decrease) | 3,990,981 | (79,561) |
Total increase (decrease) in net assets | 11,697,785 | 9,308,392 |
Net Assets | ||
Beginning of period | 37,647,285 | 28,338,893 |
End of period | $49,345,070 | $37,647,285 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Blue Chip Growth Fund
Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $138.12 | $103.05 | $99.75 | $83.20 | $69.52 | $75.25 |
Income from Investment Operations | ||||||
Net investment income (loss)A | (.36) | (.17) | (.04) | .11B | .11 | .09 |
Net realized and unrealized gain (loss) | 37.76 | 39.23 | 8.65 | 20.20 | 16.30 | (2.16) |
Total from investment operations | 37.40 | 39.06 | 8.61 | 20.31 | 16.41 | (2.07) |
Distributions from net investment income | – | – | (.11) | (.08) | (.15) | (.03) |
Distributions from net realized gain | (10.44) | (3.99) | (5.20) | (3.68) | (2.58) | (3.63) |
Total distributions | (10.44) | (3.99) | (5.31) | (3.76) | (2.73) | (3.66) |
Net asset value, end of period | $165.08 | $138.12 | $103.05 | $99.75 | $83.20 | $69.52 |
Total ReturnC,D | 28.08% | 39.45% | 9.09% | 25.21% | 24.48% | (2.59)% |
Ratios to Average Net AssetsE,F | ||||||
Expenses before reductions | .80%G | .79% | .80% | .72% | .70% | .82% |
Expenses net of fee waivers, if any | .80%G | .79% | .80% | .72% | .70% | .82% |
Expenses net of all reductions | .79%G | .78% | .80% | .72% | .69% | .82% |
Net investment income (loss) | (.46)%G | (.16)% | (.04)% | .12%B | .15% | .13% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $41,356 | $31,023 | $23,023 | $20,714 | $16,993 | $14,230 |
Portfolio turnover rateH | 43%G,I | 49%I | 45%I | 41%I | 43%I | 50%I |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.09 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been .02%.
C Total returns for periods of less than one year are not annualized.
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
G Annualized
H Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
I 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
Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $138.50 | $103.24 | $99.92 | $83.34 | $69.67 | $75.36 |
Income from Investment Operations | ||||||
Net investment income (loss)A | (.29) | (.08) | .05 | .20B | .19 | .16 |
Net realized and unrealized gain (loss) | 37.87 | 39.33 | 8.66 | 20.22 | 16.32 | (2.15) |
Total from investment operations | 37.58 | 39.25 | 8.71 | 20.42 | 16.51 | (1.99) |
Distributions from net investment income | – | – | (.19) | (.16) | (.27) | (.07) |
Distributions from net realized gain | (10.49) | (3.99) | (5.20) | (3.68) | (2.58) | (3.63) |
Total distributions | (10.49) | (3.99) | (5.39) | (3.84) | (2.84)C | (3.70) |
Net asset value, end of period | $165.59 | $138.50 | $103.24 | $99.92 | $83.34 | $69.67 |
Total ReturnD,E | 28.14% | 39.57% | 9.20% | 25.33% | 24.63% | (2.47)% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | .71%H | .70% | .70% | .62% | .59% | .70% |
Expenses net of fee waivers, if any | .71%H | .69% | .70% | .62% | .59% | .70% |
Expenses net of all reductions | .71%H | .69% | .70% | .62% | .58% | .70% |
Net investment income (loss) | (.38)%H | (.07)% | .05% | .22%B | .26% | .25% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $7,989 | $6,625 | $5,316 | $5,669 | $5,665 | $5,158 |
Portfolio turnover rateI | 43%H,J | 49%J | 45%J | 41%J | 43%J | 50%J |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.09 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been .12%.
C Total distributions per share do not sum due to rounding.
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
H Annualized
I Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
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 (Unaudited)
For the period ended January 31, 2021
(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 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 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 - Investment 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. Securities, including private placements or other restricted securities, for which observable inputs are not available are valued using alternate valuation approaches, including the market approach, the income approach and cost approach, and are categorized as Level 3 in the hierarchy. The market approach considers factors including the price of recent investments in the same or a similar security or financial metrics of comparable securities. The income approach considers factors including expected future cash flows, security specific risks and corresponding discount rates. The cost approach considers factors including the value of the security's underlying assets and liabilities.
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.
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 | $1,101,542 | Market comparable | Enterprise value/Sales multiple (EV/S) | 1.6 - 23.2 / 8.3 | Increase |
Discount rate | 40.5% - 75.0% / 56.5% | Decrease | |||
Premium rate | 1.3% - 92.6% / 36.6% | Increase | |||
Discount for lack of marketability | 10.0% | Decrease | |||
Conversion ratio | 1.0 - 1.2 / 1.1 | Increase | |||
Liquidity preference | $184.01 - $207.78 / $195.83 | Increase | |||
Recovery value | Recovery value | 0.0% | Increase | ||
Market approach | Transaction price | $0.00 - $5,352.73 / $181.98 | Increase | ||
Premium rate | 59.0% | Increase | |||
Corporate Bonds | $3,080 | Market approach | Transaction price | $100.00 | Increase |
Preferred Securities | $5,145 | Market approach | Transaction price | $100.00 | 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 January 31, 2021, as well as a roll forward of Level 3 investments, is included at the end of the Fund's Schedule of Investments.
Foreign Currency. Certain Funds 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.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan) for certain Funds, certain independent Trustees have elected to defer receipt of a portion of their annual compensation. Deferred amounts are invested in affiliated mutual funds, are marked-to-market and remain in a fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees presented below are included in the accompanying Statement of Assets and Liabilities in other receivables and other payables and accrued expenses, as applicable.
Fidelity Blue Chip Growth Fund | $1,194 |
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests. The Fund is subject to a tax imposed on capital gains by certain countries in which it invests. An estimated deferred tax liability for net unrealized appreciation on the applicable securities is included in Other payables and accrued expenses on the Statement of Assets & Liabilities.
Distributions are declared and recorded on the ex-dividend date. Income and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, 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 | $28,893,639 |
Gross unrealized depreciation | (384,931) |
Net unrealized appreciation (depreciation) | $28,508,708 |
Tax cost | $21,641,258 |
The Fund elected to defer to its next fiscal year approximately $27,469 of ordinary losses recognized during the period January 1, 2020 to July 31, 2020.
Delayed Delivery Transactions and When-Issued Securities. During the period, certain Funds 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. Securities purchased on a delayed delivery or when-issued basis are identified as such in the Schedule of Investments. Compensation for interest forgone in the purchase of a delayed delivery or when-issued debt security may be received. With respect to purchase commitments, each applicable Fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Payables and receivables associated with the purchases and sales of delayed delivery securities having the same coupon, settlement date and broker are offset. Delayed delivery or when-issued securities that have been purchased from and sold to different brokers are reflected as both payables and receivables in the Statement of Assets and Liabilities under the caption "Delayed delivery", as applicable. 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 (including Private Placements). 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 Funds included in the table below hold certain investments through a wholly-owned subsidiary ("Subsidiary"), which may be subject to federal and state taxes upon disposition.
As of period end, investments in Subsidiaries were as follows:
$ Amount | % of Net Assets | |
Fidelity Blue Chip Growth Fund | 64,720 | .13 |
The financial statements have been consolidated to include the Subsidiary accounts where applicable. Accordingly, all inter-company transactions and balances have been eliminated.
At period end, any estimated tax liability for these investments is presented as "Deferred taxes" in the Statement of Assets and Liabilities and included in "Change in net unrealized appreciation (depreciation) on investment securities" in the Statement of Operations. The tax liability incurred may differ materially depending on conditions when these investments are disposed. Any cash held by a Subsidiary is restricted as to its use and is presented as "Restricted cash" in the Statement of Assets and Liabilities, if applicable.
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.
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 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".
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and in-kind transactions are noted in the table below.
Purchases ($) | Sales ($) | |
Fidelity Blue Chip Growth Fund | 10,629,827 | 9,349,674 |
Unaffiliated Redemptions In-Kind. During the period, 1,769 shares of the Fund were redeemed in-kind for investments and cash with a value of $282,674. The net realized gain of $212,052 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, 1,998 shares of the Fund were redeemed in-kind for investments and cash with a value of $233,639. The Fund had a net realized gain of $153,466 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.
6. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company LLC (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 .23% during the period. The group fee rate is based upon the monthly average net assets of a group of registered investment companies with which the investment adviser has management contracts. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of +/- .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of Blue Chip Growth as compared to its benchmark index, the Russell 1000 Growth Index, over the same 36 month performance period. For the reporting period, the total annualized management fee rate, including the performance adjustment, was .66% 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 LLC (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 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(a) | |
Blue Chip Growth | $22,748 | .13 |
Class K | 1,629 | .04 |
$24,377 |
(a) Annualized
Accounting 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. For the period, the fees were equivalent to the following annualized rates:
% of Average Net Assets | |
Fidelity Blue Chip Growth Fund | .01 |
Brokerage Commissions. A portion of portfolio transactions were placed 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 as follows:
Amount | |
Fidelity Blue Chip Growth Fund | $192 |
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 LLC (FMR), or other affiliated entities of FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the Fund to borrow from, or lend money to, other participating affiliated funds. Any open loans, including accrued interest, at period end are presented under the caption "Notes payable to affiliates" in the Statement of Assets and Liabilities. 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 | |
Fidelity Blue Chip Growth Fund | Borrower | $26,022 | .33% | $27 |
Interfund Trades. Funds 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, and amounted to $802,891 and $574,369, respectively.
Prior Fiscal Year Affiliated Redemptions In-Kind. During the prior period, 2,673 shares of the Fund were redeemed in-kind for investments and cash with a value of $256,703. The Fund had a net realized gain of $135,027 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.
7. Committed Line of Credit.
Certain Funds participate 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 participating funds have agreed to pay commitment fees on their pro-rata portion of the line of credit, which are reflected in Miscellaneous expenses on the Statement of Operations and are listed below.
Amount | |
Fidelity Blue Chip Growth Fund | $43 |
During the period, there were no borrowings on this line of credit.
8. Security Lending.
Funds lend portfolio securities from time to time in order to earn additional income. Lending agents are used, including National Financial Services (NFS), an affiliate of the investment adviser. Pursuant to a securities lending agreement, NFS will receive a fee, which is capped at 9.9% of a fund's daily lending revenue, for its services as lending agent. A fund may lend securities to certain qualified borrowers, including NFS. On the settlement date of the loan, a 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 a fund and any additional required collateral is delivered to a fund on the next business day. A 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, a fund may apply collateral received from the borrower against the obligation. A 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. Any loaned securities are identified as such in the Schedule of Investments, and the value of loaned securities and cash collateral at period end, as applicable, are presented in the 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. Affiliated security lending activity, if any, was as follows:
Total Security Lending Income Fees Paid to NFS | Security Lending Income From Securities Loaned to NFS | Value of Securities Loaned to NFS at Period End | |
Fidelity Blue Chip Growth Fund | $300 | $137 | $– |
9. Bank Borrowings.
The Fund is permitted to have bank borrowings for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity requirements. The Fund has established borrowing arrangements with certain banks. The interest rate on the borrowings is the bank's base rate, as revised from time to time. Any open loans, including accrued interest, at period end are presented under the caption "Notes payable" in the Statement of Assets and Liabilities, if applicable. Activity in this program during the period for which loans were outstanding was as follows:
Average Loan Balance | Weighted Average Interest Rate | Interest Expense | |
Fidelity Blue Chip Growth Fund | $10,475 | .59% | $2 |
10. 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 expenses. This amount totaled $930 for the period.
In addition, during the period the investment adviser or an affiliate reimbursed and/or waived a portion of fund-level operating expenses in the amount of $71.
11. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended January 31, 2021 | Year ended July 31, 2020 | |
Distributions to shareholders | ||
Blue Chip Growth | $2,429,314 | $886,288 |
Class K | 500,706 | 202,272 |
Total | $2,930,020 | $1,088,560 |
12. 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 | |
Six months ended January 31, 2021 | Year ended July 31, 2020 | Six months ended January 31, 2021 | Year ended July 31, 2020 | |
Blue Chip Growth | ||||
Shares sold | 39,405 | 50,328 | $6,094,622 | $5,529,774 |
Reinvestment of distributions | 15,428 | 8,416 | 2,291,016 | 833,120 |
Shares redeemed | (28,914) | (57,543)(a),(b) | (4,430,109) | (6,053,757)(a),(b) |
Net increase (decrease) | 25,919 | 1,201 | $3,955,529 | $309,137 |
Class K | ||||
Shares sold | 6,697 | 11,580 | $1,033,493 | $1,250,649 |
Reinvestment of distributions | 3,365 | 2,039 | 500,706 | 202,272 |
Shares redeemed | (9,648)(c) | (17,282)(a),(b) | (1,498,747)(c) | (1,841,619)(a),(b) |
Net increase (decrease) | 414 | (3,663) | $35,452 | $(388,698) |
(a) Amount includes in-kind redemptions (see the Prior fiscal Year Unaffiliated Redemptions In-Kind note for additional details).
(b) Amount includes in-kind redemptions (see the Prior fiscal Year Affiliated Redemptions In-Kind note for additional details).
(c) Amount includes in-kind redemptions (see the Unaffiliated Redemptions In-Kind note for additional details).
13. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
14. Coronavirus (COVID-19) Pandemic.
An outbreak of COVID-19 first detected in China during December 2019 has since spread globally and was declared a pandemic by the World Health Organization during March 2020. Developments that disrupt global economies and financial markets, such as the COVID-19 pandemic, may magnify factors that affect the Fund's performance.
Shareholder Expense Example
As a shareholder, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or redemption proceeds, as applicable and (2) ongoing costs, which generally include 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 a fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2020 to January 31, 2021).
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 for a class/Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. If any fund is a shareholder of any underlying mutual funds or exchange-traded funds (ETFs) (the Underlying Funds), such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses incurred presented in the table. These fees and expenses are not included in the 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 actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the 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. If any fund is a shareholder of any Underlying Funds, such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses as presented in the table. These fees and expenses are not included in the 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 August 1, 2020 | Ending Account Value January 31, 2021 | Expenses Paid During Period-B August 1, 2020 to January 31, 2021 | |
Fidelity Blue Chip Growth Fund | ||||
Blue Chip Growth | .80% | |||
Actual | $1,000.00 | $1,280.80 | $4.60 | |
Hypothetical-C | $1,000.00 | $1,021.17 | $4.08 | |
Class K | .71% | |||
Actual | $1,000.00 | $1,281.40 | $4.08 | |
Hypothetical-C | $1,000.00 | $1,021.63 | $3.62 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/ 365 (to reflect the one-half year period). The fees and expenses of any Underlying Funds are not included in each annualized expense ratio.
C 5% return per year before expenses
Board Approval of Investment Advisory Contracts
Fidelity Blue Chip Growth Fund
At its January 2021 meeting, the Board of Trustees, including the Independent Trustees (together, the Board), voted to continue the management contract with Fidelity Management & Research Company LLC (FMR), and the sub-advisory agreements and sub-subadvisory agreements, in each case, where applicable (together, the Advisory Contracts) for the fund for four months from February 1, 2021 through May 31, 2021, in connection with changes to the Board's meeting calendar.The Board considered that the approval of the fund's Advisory Contracts will not result in any changes in (i) the investment process or strategies employed in the management of the fund's assets; (ii) the fees and expenses paid by shareholders; (iii) the nature, extent or quality of services provided under the fund's Advisory Contracts; or (iv) the day-to-day management of the fund or the persons primarily responsible for such management. The Board also considered that since its last approval of the fund's Advisory Contracts, FMR had provided additional information on the fund in support of the annual contract renewal process, including competitive analyses on total expenses and management fees and in-depth reviews of fund performance and fund profitability information. The Board also considered the findings of certain ad hoc committees that had been previously formed to discuss matters relevant to all of the Fidelity funds, including economies of scale, fall-out benefits and retail vs. institutional funds. The Board concluded that the fund's Advisory Contracts are fair and reasonable, and that the fund's Advisory Contracts should be renewed, without modification, through May 31, 2021, with the understanding that the Board will consider the annual renewal for a full one year period in May 2021.In connection with its consideration of future renewals of the fund's Advisory Contracts, the Board will consider: (i) the nature, extent and quality of services provided to the funds, including shareholder and administrative services and investment performance; (ii) the competitiveness of the management fee and total expenses for the fund; (iii) the costs of the services and profitability, including the revenues earned and the expenses incurred in conducting the business of developing, marketing, distributing, managing, administering, and servicing the fund and its shareholders, to the extent applicable; and (iv) whether there have been economies of scale in respect of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is the potential for realization of any further economies.Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board ultimately concluded that the fund's management fee structure is fair and reasonable, and that the continuation of the fund's Advisory Contracts should be approved for four months from February 1, 2021 through May 31, 2021.BCF-SANN-0321
1.700126.124
Fidelity® Dividend Growth Fund
Semi-Annual Report
January 31, 2021
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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.
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. © 2021 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.
Note to Shareholders:
Early in 2020, the outbreak and spread of a new coronavirus emerged as a public health emergency that had a major influence on financial markets, primarily based on its impact on the global economy and the outlook for corporate earnings. The virus causes a respiratory disease known as COVID-19. On March 11, the World Health Organization declared the COVID-19 outbreak a pandemic, citing sustained risk of further global spread.
In the weeks following, as the crisis worsened, we witnessed an escalating human tragedy with wide-scale social and economic consequences from coronavirus-containment measures. The outbreak of COVID-19 prompted a number of measures to limit the spread, including travel and border restrictions, quarantines, and restrictions on large gatherings. In turn, these resulted in lower consumer activity, diminished demand for a wide range of products and services, disruption in manufacturing and supply chains, and – given the wide variability in outcomes regarding the outbreak – significant market uncertainty and volatility. Amid the turmoil, global governments and central banks took unprecedented action to help support consumers, businesses, and the broader economies, and to limit disruption to financial systems.
The situation continues to unfold, and the extent and duration of its impact on financial markets and the economy remain highly uncertain. Extreme events such as the coronavirus crisis are “exogenous shocks” that can have significant adverse effects on mutual funds and their investments. Although multiple asset classes may be affected by market disruption, the duration and impact may not be the same for all types of assets.
Fidelity is committed to helping you stay informed amid news about COVID-19 and during increased market volatility, and we’re taking extra steps to be responsive to customer needs. We encourage you to visit our websites, where we offer ongoing updates, commentary, and analysis on the markets and our funds.
Investment Summary (Unaudited)
Top Ten Stocks as of January 31, 2021
% of fund's net assets | |
Microsoft Corp. | 7.9 |
Apple, Inc. | 2.5 |
Visa, Inc. Class A | 2.3 |
JPMorgan Chase & Co. | 2.0 |
Broadcom, Inc. | 1.7 |
UnitedHealth Group, Inc. | 1.6 |
The Walt Disney Co. | 1.5 |
Bank of America Corp. | 1.4 |
Samsung Electronics Co. Ltd. | 1.4 |
Wells Fargo & Co. | 1.3 |
23.6 |
Top Five Market Sectors as of January 31, 2021
% of fund's net assets | |
Information Technology | 31.2 |
Consumer Discretionary | 14.7 |
Industrials | 11.0 |
Health Care | 9.6 |
Financials | 9.4 |
Asset Allocation (% of fund's net assets)
As of January 31, 2021* | ||
Stocks | 99.5% | |
Short-Term Investments and Net Other Assets (Liabilities) | 0.5% |
* Foreign investments - 17.2%
Schedule of Investments January 31, 2021 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.5% | |||
Shares | Value (000s) | ||
COMMUNICATION SERVICES - 7.9% | |||
Entertainment - 2.9% | |||
Activision Blizzard, Inc. | 691,900 | $62,963 | |
CD Projekt RED SA (a)(b) | 300,500 | 24,506 | |
The Walt Disney Co. | 595,700 | 100,179 | |
187,648 | |||
Interactive Media & Services - 3.3% | |||
Alphabet, Inc. Class A (a) | 38,400 | 70,171 | |
Facebook, Inc. Class A (a) | 319,900 | 82,640 | |
Tencent Holdings Ltd. | 578,600 | 51,555 | |
Z Holdings Corp. | 2,000,800 | 12,424 | |
216,790 | |||
Media - 1.7% | |||
Comcast Corp. Class A | 1,295,892 | 64,237 | |
Interpublic Group of Companies, Inc. | 2,013,800 | 48,472 | |
112,709 | |||
TOTAL COMMUNICATION SERVICES | 517,147 | ||
CONSUMER DISCRETIONARY - 14.7% | |||
Auto Components - 1.1% | |||
BorgWarner, Inc. | 1,006,300 | 42,255 | |
Lear Corp. | 177,700 | 26,790 | |
69,045 | |||
Automobiles - 1.5% | |||
General Motors Co. | 1,095,900 | 55,540 | |
Harley-Davidson, Inc. | 793,800 | 31,823 | |
Hyundai Motor Co. | 43,960 | 9,001 | |
96,364 | |||
Diversified Consumer Services - 0.2% | |||
H&R Block, Inc. | 832,900 | 14,351 | |
Hotels, Restaurants & Leisure - 4.2% | |||
Aristocrat Leisure Ltd. | 1,137,415 | 27,000 | |
Cedar Fair LP (depositary unit) | 317,900 | 12,748 | |
Churchill Downs, Inc. | 146,700 | 27,499 | |
Domino's Pizza, Inc. | 57,900 | 21,467 | |
Hilton Worldwide Holdings, Inc. | 392,800 | 39,826 | |
Marriott International, Inc. Class A | 345,800 | 40,220 | |
Restaurant Brands International, Inc. (b) | 683,700 | 39,449 | |
Starbucks Corp. | 632,900 | 61,271 | |
Wingstop, Inc. | 64,200 | 9,633 | |
279,113 | |||
Household Durables - 2.7% | |||
Lennar Corp. Class A | 624,800 | 51,952 | |
Sony Corp. | 521,600 | 49,924 | |
Whirlpool Corp. | 408,200 | 75,554 | |
177,430 | |||
Internet & Direct Marketing Retail - 0.7% | |||
Expedia, Inc. | 371,400 | 46,091 | |
Leisure Products - 0.3% | |||
Smith & Wesson Brands, Inc. (b) | 717,600 | 11,883 | |
Sturm, Ruger & Co., Inc. | 69,000 | 4,372 | |
16,255 | |||
Multiline Retail - 1.2% | |||
Dollar General Corp. | 251,900 | 49,022 | |
Target Corp. | 175,700 | 31,832 | |
80,854 | |||
Specialty Retail - 1.4% | |||
Camping World Holdings, Inc. (b) | 829,500 | 28,336 | |
Lowe's Companies, Inc. | 247,400 | 41,279 | |
Williams-Sonoma, Inc. | 194,800 | 25,114 | |
94,729 | |||
Textiles, Apparel & Luxury Goods - 1.4% | |||
PVH Corp. | 450,301 | 38,393 | |
Tapestry, Inc. | 1,784,100 | 56,413 | |
94,806 | |||
TOTAL CONSUMER DISCRETIONARY | 969,038 | ||
CONSUMER STAPLES - 4.1% | |||
Beverages - 1.1% | |||
Diageo PLC | 663,500 | 26,638 | |
Keurig Dr. Pepper, Inc. (b) | 1,450,100 | 46,113 | |
72,751 | |||
Household Products - 1.4% | |||
Energizer Holdings, Inc. | 799,600 | 35,054 | |
Spectrum Brands Holdings, Inc. | 726,875 | 54,930 | |
89,984 | |||
Tobacco - 1.6% | |||
Altria Group, Inc. | 1,494,214 | 61,382 | |
Swedish Match Co. AB | 611,200 | 47,250 | |
108,632 | |||
TOTAL CONSUMER STAPLES | 271,367 | ||
ENERGY - 2.9% | |||
Oil, Gas & Consumable Fuels - 2.9% | |||
Cameco Corp. (b) | 1,147,200 | 14,248 | |
Equinor ASA sponsored ADR | 1,289,700 | 22,866 | |
Exxon Mobil Corp. | 1,427,997 | 64,031 | |
Hess Corp. | 361,400 | 19,508 | |
Phillips 66 Co. | 580,400 | 39,351 | |
Reliance Industries Ltd. sponsored GDR (c) | 601,100 | 30,476 | |
190,480 | |||
FINANCIALS - 9.4% | |||
Banks - 4.7% | |||
Bank of America Corp. | 3,149,017 | 93,368 | |
JPMorgan Chase & Co. | 988,435 | 127,182 | |
Wells Fargo & Co. | 2,921,593 | 87,297 | |
307,847 | |||
Capital Markets - 2.2% | |||
BlackRock, Inc. Class A | 84,700 | 59,397 | |
Intercontinental Exchange, Inc. | 544,300 | 60,064 | |
Raymond James Financial, Inc. | 285,800 | 28,560 | |
148,021 | |||
Consumer Finance - 1.0% | |||
American Express Co. | 79,300 | 9,219 | |
Discover Financial Services | 666,900 | 55,713 | |
64,932 | |||
Insurance - 1.5% | |||
Arthur J. Gallagher & Co. | 445,800 | 51,450 | |
The Travelers Companies, Inc. | 340,800 | 46,451 | |
97,901 | |||
TOTAL FINANCIALS | 618,701 | ||
HEALTH CARE - 9.6% | |||
Biotechnology - 0.9% | |||
AbbVie, Inc. | 584,900 | 59,941 | |
Health Care Equipment & Supplies - 0.5% | |||
Envista Holdings Corp. (a) | 970,100 | 34,477 | |
Health Care Providers & Services - 4.5% | |||
Anthem, Inc. | 42,400 | 12,592 | |
Cigna Corp. | 355,400 | 77,140 | |
CVS Health Corp. | 581,800 | 41,686 | |
Humana, Inc. | 144,500 | 55,359 | |
UnitedHealth Group, Inc. | 315,406 | 105,213 | |
291,990 | |||
Life Sciences Tools & Services - 0.6% | |||
Thermo Fisher Scientific, Inc. | 73,000 | 37,208 | |
Pharmaceuticals - 3.1% | |||
AstraZeneca PLC (United Kingdom) | 283,800 | 28,951 | |
Bristol-Myers Squibb Co. | 617,400 | 37,927 | |
Eli Lilly & Co. | 350,600 | 72,914 | |
Merck KGaA | 162,900 | 27,222 | |
Roche Holding AG (participation certificate) | 113,280 | 39,094 | |
206,108 | |||
TOTAL HEALTH CARE | 629,724 | ||
INDUSTRIALS - 11.0% | |||
Aerospace & Defense - 0.8% | |||
HEICO Corp. Class A | 229,451 | 24,393 | |
The Boeing Co. | 163,500 | 31,750 | |
56,143 | |||
Air Freight & Logistics - 1.4% | |||
FedEx Corp. | 157,100 | 36,972 | |
United Parcel Service, Inc. Class B | 313,900 | 48,655 | |
ZTO Express, Inc. (a) | 238,000 | 7,780 | |
93,407 | |||
Airlines - 0.2% | |||
Copa Holdings SA Class A | 209,900 | 16,240 | |
Commercial Services & Supplies - 0.8% | |||
GFL Environmental, Inc. | 1,771,800 | 50,019 | |
Electrical Equipment - 0.3% | |||
AMETEK, Inc. | 166,300 | 18,835 | |
Industrial Conglomerates - 1.7% | |||
General Electric Co. | 8,035,000 | 85,814 | |
Roper Technologies, Inc. | 67,800 | 26,639 | |
112,453 | |||
Machinery - 2.9% | |||
AG Growth International, Inc. | 317,300 | 8,799 | |
Allison Transmission Holdings, Inc. | 848,502 | 34,534 | |
Cummins, Inc. | 141,800 | 33,241 | |
Fortive Corp. | 335,100 | 22,143 | |
PACCAR, Inc. | 515,200 | 46,997 | |
Snap-On, Inc. (b) | 64,900 | 11,681 | |
Toro Co. | 344,700 | 32,488 | |
189,883 | |||
Professional Services - 1.4% | |||
Equifax, Inc. | 192,300 | 34,058 | |
IHS Markit Ltd. | 425,300 | 37,035 | |
Robert Half International, Inc. | 278,500 | 18,799 | |
89,892 | |||
Road & Rail - 1.5% | |||
Knight-Swift Transportation Holdings, Inc. Class A | 825,684 | 33,027 | |
Ryder System, Inc. | 300,600 | 18,815 | |
TFI International, Inc. (Canada) | 703,800 | 46,749 | |
98,591 | |||
TOTAL INDUSTRIALS | 725,463 | ||
INFORMATION TECHNOLOGY - 31.2% | |||
Electronic Equipment & Components - 0.8% | |||
Hon Hai Precision Industry Co. Ltd. (Foxconn) | 4,942,000 | 19,672 | |
TE Connectivity Ltd. | 265,000 | 31,906 | |
Vontier Corp. (a) | 6,702 | 217 | |
51,795 | |||
IT Services - 6.6% | |||
Amadeus IT Holding SA Class A | 91,700 | 5,854 | |
Amdocs Ltd. | 291,100 | 20,557 | |
Cognizant Technology Solutions Corp. Class A | 484,300 | 37,751 | |
DXC Technology Co. | 1,154,500 | 32,557 | |
Fidelity National Information Services, Inc. | 552,900 | 68,261 | |
Genpact Ltd. | 1,494,000 | 57,190 | |
Global Payments, Inc. | 254,500 | 44,924 | |
ManTech International Corp. Class A | 152,400 | 13,669 | |
Visa, Inc. Class A | 792,000 | 153,054 | |
433,817 | |||
Semiconductors & Semiconductor Equipment - 9.4% | |||
Analog Devices, Inc. | 405,400 | 59,728 | |
Broadcom, Inc. | 241,600 | 108,841 | |
Intel Corp. | 1,039,400 | 57,697 | |
KLA Corp. | 169,400 | 47,444 | |
Lam Research Corp. | 126,600 | 61,268 | |
Marvell Technology Group Ltd. | 806,500 | 41,502 | |
NVIDIA Corp. | 102,900 | 53,466 | |
NXP Semiconductors NV | 98,400 | 15,790 | |
Qualcomm, Inc. | 495,500 | 77,437 | |
SK Hynix, Inc. | 273,440 | 29,951 | |
Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR | 354,600 | 43,091 | |
Universal Display Corp. | 88,100 | 20,335 | |
616,550 | |||
Software - 10.5% | |||
Intuit, Inc. | 214,300 | 77,412 | |
Microsoft Corp. | 2,239,700 | 519,522 | |
SAP SE | 234,000 | 29,692 | |
SS&C Technologies Holdings, Inc. | 878,600 | 55,246 | |
Temenos Group AG | 103,310 | 13,088 | |
694,960 | |||
Technology Hardware, Storage & Peripherals - 3.9% | |||
Apple, Inc. | 1,238,872 | 163,482 | |
Samsung Electronics Co. Ltd. | 1,263,820 | 92,663 | |
256,145 | |||
TOTAL INFORMATION TECHNOLOGY | 2,053,267 | ||
MATERIALS - 4.5% | |||
Chemicals - 3.2% | |||
Albemarle Corp. U.S. | 128,500 | 20,902 | |
DuPont de Nemours, Inc. | 658,500 | 52,318 | |
LG Chemical Ltd. | 50,730 | 41,595 | |
LyondellBasell Industries NV Class A | 475,700 | 40,796 | |
Olin Corp. | 202,720 | 4,847 | |
The Chemours Co. LLC | 197,697 | 5,207 | |
Valvoline, Inc. | 1,005,600 | 23,873 | |
W.R. Grace & Co. | 374,000 | 21,699 | |
211,237 | |||
Metals & Mining - 1.3% | |||
Barrick Gold Corp. | 1,140,800 | 25,520 | |
Glencore Xstrata PLC | 4,813,500 | 16,068 | |
Newmont Corp. | 785,700 | 46,828 | |
88,416 | |||
TOTAL MATERIALS | 299,653 | ||
REAL ESTATE - 2.4% | |||
Equity Real Estate Investment Trusts (REITs) - 2.4% | |||
American Tower Corp. | 184,600 | 41,971 | |
CoreSite Realty Corp. | 286,300 | 38,490 | |
Four Corners Property Trust, Inc. | 1,350,500 | 35,599 | |
National Retail Properties, Inc. | 312,400 | 12,184 | |
Simon Property Group, Inc. | 359,200 | 33,380 | |
161,624 | |||
UTILITIES - 1.8% | |||
Electric Utilities - 0.4% | |||
Edison International | 485,200 | 28,219 | |
Independent Power and Renewable Electricity Producers - 1.0% | |||
NextEra Energy Partners LP | 121,400 | 9,894 | |
The AES Corp. | 2,141,200 | 52,224 | |
62,118 | |||
Multi-Utilities - 0.4% | |||
CenterPoint Energy, Inc. | 1,221,500 | 25,761 | |
TOTAL UTILITIES | 116,098 | ||
TOTAL COMMON STOCKS | |||
(Cost $5,273,636) | 6,552,562 | ||
Money Market Funds - 2.0% | |||
Fidelity Cash Central Fund 0.09% (d) | 17,781,912 | 17,785 | |
Fidelity Securities Lending Cash Central Fund 0.09% (d)(e) | 109,993,264 | 110,004 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $127,789) | 127,789 | ||
TOTAL INVESTMENT IN SECURITIES - 101.5% | |||
(Cost $5,401,425) | 6,680,351 | ||
NET OTHER ASSETS (LIABILITIES) - (1.5)% | (96,895) | ||
NET ASSETS - 100% | $6,583,456 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(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 $30,476,000 or 0.5% of net assets.
(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 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 |
(Amounts in thousands) | |
Fidelity Cash Central Fund | $9 |
Fidelity Securities Lending Cash Central Fund | 77 |
Total | $86 |
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 January 31, 2021, 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 | $517,147 | $441,086 | $76,061 | $-- |
Consumer Discretionary | 969,038 | 919,114 | 49,924 | -- |
Consumer Staples | 271,367 | 244,729 | 26,638 | -- |
Energy | 190,480 | 190,480 | -- | -- |
Financials | 618,701 | 618,701 | -- | -- |
Health Care | 629,724 | 561,679 | 68,045 | -- |
Industrials | 725,463 | 717,683 | 7,780 | -- |
Information Technology | 2,053,267 | 2,017,721 | 35,546 | -- |
Materials | 299,653 | 283,585 | 16,068 | -- |
Real Estate | 161,624 | 161,624 | -- | -- |
Utilities | 116,098 | 116,098 | -- | -- |
Money Market Funds | 127,789 | 127,789 | -- | -- |
Total Investments in Securities: | $6,680,351 | $6,400,289 | $280,062 | $-- |
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 | 82.8% |
Canada | 2.8% |
Korea (South) | 2.6% |
Bermuda | 2.1% |
Switzerland | 1.3% |
Taiwan | 1.0% |
Japan | 1.0% |
Others (Individually Less Than 1%) | 6.4% |
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) | January 31, 2021 (Unaudited) | |
Assets | ||
Investment in securities, at value (including securities loaned of $101,704) — See accompanying schedule: Unaffiliated issuers (cost $5,273,636) | $6,552,562 | |
Fidelity Central Funds (cost $127,789) | 127,789 | |
Total Investment in Securities (cost $5,401,425) | $6,680,351 | |
Foreign currency held at value (cost $1,591) | 1,591 | |
Receivable for investments sold | 37,265 | |
Receivable for fund shares sold | 2,757 | |
Dividends receivable | 7,133 | |
Distributions receivable from Fidelity Central Funds | 8 | |
Prepaid expenses | 7 | |
Other receivables | 918 | |
Total assets | 6,730,030 | |
Liabilities | ||
Payable for investments purchased | $29,363 | |
Payable for fund shares redeemed | 3,908 | |
Accrued management fee | 1,871 | |
Other affiliated payables | 763 | |
Other payables and accrued expenses | 670 | |
Collateral on securities loaned | 109,999 | |
Total liabilities | 146,574 | |
Net Assets | $6,583,456 | |
Net Assets consist of: | ||
Paid in capital | $5,572,179 | |
Total accumulated earnings (loss) | 1,011,277 | |
Net Assets | $6,583,456 | |
Net Asset Value and Maximum Offering Price | ||
Dividend Growth: | ||
Net Asset Value, offering price and redemption price per share ($5,238,565 ÷ 169,657 shares) | $30.88 | |
Class K: | ||
Net Asset Value, offering price and redemption price per share ($1,344,891 ÷ 43,616 shares) | $30.83 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Amounts in thousands | Six months ended January 31, 2021 (Unaudited) | |
Investment Income | ||
Dividends | $64,701 | |
Income from Fidelity Central Funds (including $77 from security lending) | 86 | |
Total income | 64,787 | |
Expenses | ||
Management fee | ||
Basic fee | $16,689 | |
Performance adjustment | (6,773) | |
Transfer agent fees | 3,915 | |
Accounting fees | 567 | |
Custodian fees and expenses | 30 | |
Independent trustees' fees and expenses | 15 | |
Registration fees | 27 | |
Audit | 35 | |
Legal | 14 | |
Interest | 6 | |
Miscellaneous | 12 | |
Total expenses before reductions | 14,537 | |
Expense reductions | (340) | |
Total expenses after reductions | 14,197 | |
Net investment income (loss) | 50,590 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | (217,391) | |
Foreign currency transactions | 96 | |
Total net realized gain (loss) | (217,295) | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 1,285,822 | |
Fidelity Central Funds | (1) | |
Assets and liabilities in foreign currencies | 4 | |
Total change in net unrealized appreciation (depreciation) | 1,285,825 | |
Net gain (loss) | 1,068,530 | |
Net increase (decrease) in net assets resulting from operations | $1,119,120 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Amounts in thousands | Six months ended January 31, 2021 (Unaudited) | Year ended July 31, 2020 |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $50,590 | $139,665 |
Net realized gain (loss) | (217,295) | 49,483 |
Change in net unrealized appreciation (depreciation) | 1,285,825 | (640,210) |
Net increase (decrease) in net assets resulting from operations | 1,119,120 | (451,062) |
Distributions to shareholders | (129,527) | (360,272) |
Share transactions - net increase (decrease) | (318,633) | (484,245) |
Total increase (decrease) in net assets | 670,960 | (1,295,579) |
Net Assets | ||
Beginning of period | 5,912,496 | 7,208,075 |
End of period | $6,583,456 | $5,912,496 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Dividend Growth Fund
Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $26.38 | $29.59 | $33.79 | $35.06 | $31.51 | $34.46 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .23 | .58 | .59 | .65 | .53 | .48 |
Net realized and unrealized gain (loss) | 4.86 | (2.29) | 1.01B | 3.72 | 3.53 | (.61)C |
Total from investment operations | 5.09 | (1.71) | 1.60 | 4.37 | 4.06 | (.13) |
Distributions from net investment income | (.59) | (.49) | (.60) | (.60) | (.51) | (.47) |
Distributions from net realized gain | – | (1.01) | (5.20) | (5.04) | – | (2.36) |
Total distributions | (.59) | (1.50) | (5.80) | (5.64) | (.51) | (2.82)D |
Net asset value, end of period | $30.88 | $26.38 | $29.59 | $33.79 | $35.06 | $31.51 |
Total ReturnE,F | 19.51% | (6.24)% | 5.38%B | 13.60% | 13.06% | .26%C |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | .48%I | .49% | .50% | .50% | .52% | .62% |
Expenses net of fee waivers, if any | .48%I | .49% | .50% | .50% | .52% | .61% |
Expenses net of all reductions | .47%I | .48% | .49% | .49% | .52% | .61% |
Net investment income (loss) | 1.58%I | 2.11% | 2.05% | 1.94% | 1.60% | 1.59% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $5,239 | $4,685 | $5,728 | $6,055 | $5,952 | $5,849 |
Portfolio turnover rateJ | 136%I | 69% | 101% | 115% | 43% | 30% |
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 per share do not sum due to rounding.
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
I Annualized
J Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
See accompanying notes which are an integral part of the financial statements.
Fidelity Dividend Growth Fund Class K
Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $26.36 | $29.56 | $33.76 | $35.04 | $31.50 | $34.45 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .24 | .61 | .63 | .69 | .56 | .52 |
Net realized and unrealized gain (loss) | 4.84 | (2.28) | 1.01B | 3.71 | 3.53 | (.61)C |
Total from investment operations | 5.08 | (1.67) | 1.64 | 4.40 | 4.09 | (.09) |
Distributions from net investment income | (.61) | (.52) | (.63) | (.64) | (.55) | (.50) |
Distributions from net realized gain | – | (1.01) | (5.20) | (5.04) | – | (2.36) |
Total distributions | (.61) | (1.53) | (5.84)D | (5.68) | (.55) | (2.86) |
Net asset value, end of period | $30.83 | $26.36 | $29.56 | $33.76 | $35.04 | $31.50 |
Total ReturnE,F | 19.54% | (6.11)% | 5.50%B | 13.70% | 13.16% | .39%C |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | .38%I | .39% | .40% | .40% | .41% | .50% |
Expenses net of fee waivers, if any | .38%I | .39% | .39% | .40% | .41% | .50% |
Expenses net of all reductions | .37%I | .38% | .38% | .39% | .41% | .49% |
Net investment income (loss) | 1.69%I | 2.22% | 2.16% | 2.05% | 1.71% | 1.71% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $1,345 | $1,228 | $1,480 | $1,212 | $1,477 | $1,691 |
Portfolio turnover rateJ | 136%I | 69% | 101% | 115% | 43% | 30% |
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 per share do not sum due to rounding.
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
I Annualized
J Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended January 31, 2021
(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 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 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 - Investment 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 January 31, 2021 is included at the end of the Fund's Schedule of Investments.
Foreign Currency. Certain Funds 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 certain Funds, certain independent Trustees have elected to defer receipt of a portion of their annual compensation. Deferred amounts are invested in affiliated mutual funds, are marked-to-market and remain in a fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees presented below are included in the accompanying Statement of Assets and Liabilities in other receivables and other payables and accrued expenses, as applicable.
Fidelity Dividend Growth Fund | $611 |
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, deferred trustees compensation, partnerships 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 | $1,379,251 |
Gross unrealized depreciation | (107,600) |
Net unrealized appreciation (depreciation) | $1,271,651 |
Tax cost | $5,408,700 |
The Fund elected to defer to its next fiscal year approximately $21,216 of capital losses recognized during the period November 1, 2019 to July 31, 2020.
Restricted Securities (including Private Placements). The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, are noted in the table below.
Purchases ($) | Sales ($) | |
Fidelity Dividend Growth Fund | 4,190,854 | 4,596,183 |
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company LLC (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 .23% during the period. The group fee rate is based upon the monthly average net assets of a group of registered investment companies with which the investment adviser has management contracts. 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 annualized management fee rate, including the performance adjustment, was .31% 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 LLC (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(a) | |
Dividend Growth | $3,628 | .15 |
Class K | 287 | .04 |
$3,915 |
(a) Annualized
Accounting 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. For the period, the fees were equivalent to the following annualized rates:
% of Average Net Assets | |
Fidelity Dividend Growth Fund | .02 |
Brokerage Commissions. A portion of portfolio transactions were placed 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 as follows:
Amount | |
Fidelity Dividend Growth Fund | $122 |
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 LLC (FMR), or other affiliated entities of FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the Fund to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. 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 | |
Fidelity Dividend Growth Fund | Borrower | $9,636 | .33% | $5 |
Interfund Trades. Funds 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, and amounted to $286,918 and $279,880, respectively.
6. Committed Line of Credit.
Certain Funds participate 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 participating funds have agreed to pay commitment fees on their pro-rata portion of the line of credit, which are reflected in Miscellaneous expenses on the Statement of Operations, and are listed below.
Amount | |
Fidelity Dividend Growth Fund | $6 |
During the period, there were no borrowings on this line of credit.
7. Security Lending.
Funds lend portfolio securities from time to time in order to earn additional income. Lending agents are used, including National Financial Services (NFS), an affiliate of the investment adviser. Pursuant to a securities lending agreement, NFS will receive a fee, which is capped at 9.9% of a fund's daily lending revenue, for its services as lending agent. A fund may lend securities to certain qualified borrowers, including NFS. On the settlement date of the loan, a 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 a fund and any additional required collateral is delivered to a fund on the next business day. A 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, a fund may apply collateral received from the borrower against the obligation. A 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. Any loaned securities are identified as such in the Schedule of Investments, and the value of loaned securities and cash collateral at period end, as applicable, are presented in the 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. Affiliated security lending activity, if any, was as follows:
Total Security Lending Income Fees Paid to NFS | Security Lending Income From Securities Loaned to NFS | Value of Securities Loaned to NFS at Period End | |
Fidelity Dividend Growth Fund | $10 | $– | $– |
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. Any open loans, including accrued interest, at period end are presented under the caption "Notes payable" in the Statement of Assets and Liabilities, if applicable. Activity in this program during the period for which loans were outstanding was as follows:
Average Loan Balance | Weighted Average Interest Rate | Interest Expense | |
Fidelity Dividend Growth Fund | $3,252 | .58% | $–(a) |
(a) In the amount of less than five hundred dollars
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 expenses. This amount totaled $330 for the period.
In addition, during the period the investment adviser or an affiliate reimbursed and/or waived a portion of fund-level operating expenses in the amount of $10.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended January 31, 2021 | Year ended July 31, 2020 | |
Distributions to shareholders | ||
Dividend Growth | $101,466 | $283,522 |
Class K | 28,061 | 76,750 |
Total | $129,527 | $360,272 |
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 | |
Six months ended January 31, 2021 | Year ended July 31, 2020 | Six months ended January 31, 2021 | Year ended July 31, 2020 | |
Dividend Growth | ||||
Shares sold | 4,091 | 10,791 | $118,525 | $295,876 |
Reinvestment of distributions | 3,455 | 9,212 | 96,813 | 270,346 |
Shares redeemed | (15,469) | (36,024) | (446,272) | (968,773) |
Net increase (decrease) | (7,923) | (16,021) | $(230,934) | $(402,551) |
Class K | ||||
Shares sold | 4,946 | 13,439 | $142,720 | $362,888 |
Reinvestment of distributions | 1,002 | 2,620 | 28,061 | 76,750 |
Shares redeemed | (8,907) | (19,551) | (258,480) | (521,332) |
Net increase (decrease) | (2,959) | (3,492) | $(87,699) | $(81,694) |
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.
13. Coronavirus (COVID-19) Pandemic.
An outbreak of COVID-19 first detected in China during December 2019 has since spread globally and was declared a pandemic by the World Health Organization during March 2020. Developments that disrupt global economies and financial markets, such as the COVID-19 pandemic, may magnify factors that affect the Fund's performance.
Shareholder Expense Example
As a shareholder, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or redemption proceeds, as applicable and (2) ongoing costs, which generally include 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 a fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2020 to January 31, 2021).
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 for a class/Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. If any fund is a shareholder of any underlying mutual funds or exchange-traded funds (ETFs) (the Underlying Funds), such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses incurred presented in the table. These fees and expenses are not included in the 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 actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the 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. If any fund is a shareholder of any Underlying Funds, such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses as presented in the table. These fees and expenses are not included in the 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 August 1, 2020 | Ending Account Value January 31, 2021 | Expenses Paid During Period-B August 1, 2020 to January 31, 2021 | |
Fidelity Dividend Growth Fund | ||||
Dividend Growth | .48% | |||
Actual | $1,000.00 | $1,195.10 | $2.66 | |
Hypothetical-C | $1,000.00 | $1,022.79 | $2.45 | |
Class K | .38% | |||
Actual | $1,000.00 | $1,195.40 | $2.10 | |
Hypothetical-C | $1,000.00 | $1,023.29 | $1.94 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/ 365 (to reflect the one-half year period). The fees and expenses of any Underlying Funds are not included in each annualized expense ratio.
C 5% return per year before expenses
Board Approval of Investment Advisory Contracts
Fidelity Dividend Growth Fund
At its January 2021 meeting, the Board of Trustees, including the Independent Trustees (together, the Board), voted to continue the management contract with Fidelity Management & Research Company LLC (FMR), and the sub-advisory agreements and sub-subadvisory agreements, in each case, where applicable (together, the Advisory Contracts) for the fund for four months from February 1, 2021 through May 31, 2021, in connection with changes to the Board's meeting calendar.The Board considered that the approval of the fund's Advisory Contracts will not result in any changes in (i) the investment process or strategies employed in the management of the fund's assets; (ii) the fees and expenses paid by shareholders; (iii) the nature, extent or quality of services provided under the fund's Advisory Contracts; or (iv) the day-to-day management of the fund or the persons primarily responsible for such management. The Board also considered that since its last approval of the fund's Advisory Contracts, FMR had provided additional information on the fund in support of the annual contract renewal process, including competitive analyses on total expenses and management fees and in-depth reviews of fund performance and fund profitability information. The Board also considered the findings of certain ad hoc committees that had been previously formed to discuss matters relevant to all of the Fidelity funds, including economies of scale, fall-out benefits and retail vs. institutional funds. The Board concluded that the fund's Advisory Contracts are fair and reasonable, and that the fund's Advisory Contracts should be renewed, without modification, through May 31, 2021, with the understanding that the Board will consider the annual renewal for a full one year period in May 2021.In connection with its consideration of future renewals of the fund's Advisory Contracts, the Board will consider: (i) the nature, extent and quality of services provided to the funds, including shareholder and administrative services and investment performance; (ii) the competitiveness of the management fee and total expenses for the fund; (iii) the costs of the services and profitability, including the revenues earned and the expenses incurred in conducting the business of developing, marketing, distributing, managing, administering, and servicing the fund and its shareholders, to the extent applicable; and (iv) whether there have been economies of scale in respect of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is the potential for realization of any further economies.Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board ultimately concluded that the fund's management fee structure is fair and reasonable, and that the continuation of the fund's Advisory Contracts should be approved for four months from February 1, 2021 through May 31, 2021.DGF-SANN-0321
1.470802.124
Fidelity® Blue Chip Value Fund
Semi-Annual Report
January 31, 2021
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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 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. © 2021 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.
Note to Shareholders:
Early in 2020, the outbreak and spread of a new coronavirus emerged as a public health emergency that had a major influence on financial markets, primarily based on its impact on the global economy and the outlook for corporate earnings. The virus causes a respiratory disease known as COVID-19. On March 11, the World Health Organization declared the COVID-19 outbreak a pandemic, citing sustained risk of further global spread.
In the weeks following, as the crisis worsened, we witnessed an escalating human tragedy with wide-scale social and economic consequences from coronavirus-containment measures. The outbreak of COVID-19 prompted a number of measures to limit the spread, including travel and border restrictions, quarantines, and restrictions on large gatherings. In turn, these resulted in lower consumer activity, diminished demand for a wide range of products and services, disruption in manufacturing and supply chains, and – given the wide variability in outcomes regarding the outbreak – significant market uncertainty and volatility. Amid the turmoil, global governments and central banks took unprecedented action to help support consumers, businesses, and the broader economies, and to limit disruption to financial systems.
The situation continues to unfold, and the extent and duration of its impact on financial markets and the economy remain highly uncertain. Extreme events such as the coronavirus crisis are “exogenous shocks” that can have significant adverse effects on mutual funds and their investments. Although multiple asset classes may be affected by market disruption, the duration and impact may not be the same for all types of assets.
Fidelity is committed to helping you stay informed amid news about COVID-19 and during increased market volatility, and we’re taking extra steps to be responsive to customer needs. We encourage you to visit our websites, where we offer ongoing updates, commentary, and analysis on the markets and our funds.
Investment Summary (Unaudited)
Top Ten Stocks as of January 31, 2021
% of fund's net assets | |
Berkshire Hathaway, Inc. Class B | 4.5 |
Samsung Electronics Co. Ltd. | 3.8 |
Bank of America Corp. | 3.6 |
Cisco Systems, Inc. | 3.4 |
Comcast Corp. Class A | 3.3 |
Roche Holding AG (participation certificate) | 3.0 |
CVS Health Corp. | 2.8 |
Alexion Pharmaceuticals, Inc. | 2.7 |
Capital One Financial Corp. | 2.6 |
UnitedHealth Group, Inc. | 2.6 |
32.3 |
Top Five Market Sectors as of January 31, 2021
% of fund's net assets | |
Health Care | 22.2 |
Financials | 20.3 |
Information Technology | 11.3 |
Communication Services | 9.4 |
Industrials | 8.7 |
Asset Allocation (% of fund's net assets)
As of January 31, 2021* | ||
Stocks | 97.0% | |
Short-Term Investments and Net Other Assets (Liabilities) | 3.0% |
* Foreign investments - 18.3%
Schedule of Investments January 31, 2021 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 93.2% | |||
Shares | Value | ||
COMMUNICATION SERVICES - 9.4% | |||
Diversified Telecommunication Services - 2.6% | |||
Verizon Communications, Inc. | 221,000 | $12,099,750 | |
Interactive Media & Services - 2.0% | |||
Alphabet, Inc. Class A (a) | 5,200 | 9,502,272 | |
Media - 4.8% | |||
Comcast Corp. Class A | 312,200 | 15,475,754 | |
Interpublic Group of Companies, Inc. | 297,100 | 7,151,197 | |
22,626,951 | |||
TOTAL COMMUNICATION SERVICES | 44,228,973 | ||
CONSUMER DISCRETIONARY - 6.1% | |||
Household Durables - 0.8% | |||
Newell Brands, Inc. | 166,800 | 4,006,536 | |
Multiline Retail - 1.6% | |||
Dollar General Corp. | 38,300 | 7,453,563 | |
Specialty Retail - 3.7% | |||
Best Buy Co., Inc. | 81,600 | 8,879,712 | |
Lowe's Companies, Inc. | 50,700 | 8,459,295 | |
17,339,007 | |||
TOTAL CONSUMER DISCRETIONARY | 28,799,106 | ||
CONSUMER STAPLES - 7.0% | |||
Beverages - 1.1% | |||
C&C Group PLC (United Kingdom) (a) | 1,677,300 | 5,308,732 | |
Food & Staples Retailing - 1.9% | |||
Kroger Co. | 266,500 | 9,194,250 | |
Food Products - 1.5% | |||
Mondelez International, Inc. | 128,200 | 7,107,408 | |
Household Products - 2.5% | |||
Procter & Gamble Co. | 90,600 | 11,615,826 | |
TOTAL CONSUMER STAPLES | 33,226,216 | ||
ENERGY - 2.1% | |||
Oil, Gas & Consumable Fuels - 2.1% | |||
Parex Resources, Inc. (a) | 474,000 | 7,172,551 | |
Teekay LNG Partners LP | 224,100 | 2,776,599 | |
9,949,150 | |||
FINANCIALS - 20.3% | |||
Banks - 8.8% | |||
Bank of America Corp. | 567,000 | 16,811,550 | |
JPMorgan Chase & Co. | 81,400 | 10,473,738 | |
M&T Bank Corp. | 49,700 | 6,583,759 | |
PNC Financial Services Group, Inc. | 53,000 | 7,606,560 | |
41,475,607 | |||
Consumer Finance - 2.6% | |||
Capital One Financial Corp. | 117,500 | 12,250,550 | |
Diversified Financial Services - 4.5% | |||
Berkshire Hathaway, Inc. Class B (a) | 93,900 | 21,396,993 | |
Insurance - 4.4% | |||
Chubb Ltd. | 77,700 | 11,318,559 | |
The Travelers Companies, Inc. | 69,600 | 9,486,480 | |
20,805,039 | |||
TOTAL FINANCIALS | 95,928,189 | ||
HEALTH CARE - 22.2% | |||
Biotechnology - 3.9% | |||
Alexion Pharmaceuticals, Inc. (a) | 84,900 | 13,017,717 | |
Regeneron Pharmaceuticals, Inc. (a) | 10,900 | 5,491,856 | |
18,509,573 | |||
Health Care Providers & Services - 11.9% | |||
Anthem, Inc. | 32,300 | 9,592,454 | |
Centene Corp. (a) | 152,400 | 9,189,720 | |
Cigna Corp. | 56,200 | 12,198,210 | |
CVS Health Corp. | 182,700 | 13,090,455 | |
UnitedHealth Group, Inc. | 36,600 | 12,209,028 | |
56,279,867 | |||
Pharmaceuticals - 6.4% | |||
Bristol-Myers Squibb Co. | 139,600 | 8,575,628 | |
Roche Holding AG (participation certificate) | 41,200 | 14,218,618 | |
Sanofi SA sponsored ADR | 160,200 | 7,563,042 | |
30,357,288 | |||
TOTAL HEALTH CARE | 105,146,728 | ||
INDUSTRIALS - 8.7% | |||
Air Freight & Logistics - 0.9% | |||
Deutsche Post AG | 82,500 | 4,075,096 | |
Building Products - 1.8% | |||
Owens Corning | 112,000 | 8,691,200 | |
Electrical Equipment - 1.8% | |||
Regal Beloit Corp. | 68,800 | 8,633,024 | |
Industrial Conglomerates - 1.5% | |||
Siemens AG | 44,100 | 6,847,036 | |
Machinery - 2.7% | |||
ITT, Inc. | 86,700 | 6,477,357 | |
Oshkosh Corp. | 69,500 | 6,365,505 | |
12,842,862 | |||
TOTAL INDUSTRIALS | 41,089,218 | ||
INFORMATION TECHNOLOGY - 7.5% | |||
Communications Equipment - 3.4% | |||
Cisco Systems, Inc. | 365,700 | 16,302,906 | |
IT Services - 4.1% | |||
Amdocs Ltd. | 127,900 | 9,032,298 | |
Cognizant Technology Solutions Corp. Class A | 130,100 | 10,141,295 | |
19,173,593 | |||
TOTAL INFORMATION TECHNOLOGY | 35,476,499 | ||
REAL ESTATE - 1.8% | |||
Real Estate Management & Development - 1.8% | |||
CBRE Group, Inc. (a) | 140,200 | 8,549,396 | |
UTILITIES - 8.1% | |||
Electric Utilities - 6.9% | |||
Evergy, Inc. | 112,900 | 6,066,117 | |
Exelon Corp. | 151,300 | 6,288,028 | |
PG&E Corp. (a) | 498,000 | 5,692,140 | |
PPL Corp. | 213,900 | 5,918,613 | |
Southern Co. | 141,800 | 8,354,856 | |
32,319,754 | |||
Independent Power and Renewable Electricity Producers - 1.2% | |||
Vistra Corp. | 287,600 | 5,743,372 | |
TOTAL UTILITIES | 38,063,126 | ||
TOTAL COMMON STOCKS | |||
(Cost $389,432,728) | 440,456,601 | ||
Nonconvertible Preferred Stocks - 3.8% | |||
INFORMATION TECHNOLOGY - 3.8% | |||
Technology Hardware, Storage & Peripherals - 3.8% | |||
Samsung Electronics Co. Ltd. | |||
(Cost $10,824,803) | 273,570 | 17,881,032 | |
Money Market Funds - 2.7% | |||
Fidelity Cash Central Fund 0.09% (b) | |||
(Cost $12,945,206) | 12,942,617 | 12,945,206 | |
TOTAL INVESTMENT IN SECURITIES - 99.7% | |||
(Cost $413,202,737) | 471,282,839 | ||
NET OTHER ASSETS (LIABILITIES) - 0.3% | 1,290,988 | ||
NET ASSETS - 100% | $472,573,827 |
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 | $7,020 |
Fidelity Securities Lending Cash Central Fund | 24 |
Total | $7,044 |
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 January 31, 2021, 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 | $44,228,973 | $44,228,973 | $-- | $-- |
Consumer Discretionary | 28,799,106 | 28,799,106 | -- | -- |
Consumer Staples | 33,226,216 | 33,226,216 | -- | -- |
Energy | 9,949,150 | 9,949,150 | -- | -- |
Financials | 95,928,189 | 95,928,189 | -- | -- |
Health Care | 105,146,728 | 90,928,110 | 14,218,618 | -- |
Industrials | 41,089,218 | 37,014,122 | 4,075,096 | -- |
Information Technology | 53,357,531 | 53,357,531 | -- | -- |
Real Estate | 8,549,396 | 8,549,396 | -- | -- |
Utilities | 38,063,126 | 38,063,126 | -- | -- |
Money Market Funds | 12,945,206 | 12,945,206 | -- | -- |
Total Investments in Securities: | $471,282,839 | $452,989,125 | $18,293,714 | $-- |
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 | 81.7% |
Switzerland | 5.4% |
Korea (South) | 3.8% |
Germany | 2.4% |
Bailiwick of Guernsey | 1.9% |
France | 1.6% |
Canada | 1.5% |
Ireland | 1.1% |
Others (Individually Less Than 1%) | 0.6% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
January 31, 2021 (Unaudited) | ||
Assets | ||
Investment in securities, at value — See accompanying schedule: Unaffiliated issuers (cost $400,257,531) | $458,337,633 | |
Fidelity Central Funds (cost $12,945,206) | 12,945,206 | |
Total Investment in Securities (cost $413,202,737) | $471,282,839 | |
Receivable for fund shares sold | 837,868 | |
Dividends receivable | 1,140,287 | |
Distributions receivable from Fidelity Central Funds | 1,397 | |
Prepaid expenses | 426 | |
Other receivables | 8,844 | |
Total assets | 473,271,661 | |
Liabilities | ||
Payable for fund shares redeemed | $444,909 | |
Accrued management fee | 138,750 | |
Transfer agent fee payable | 63,916 | |
Other affiliated payables | 15,449 | |
Other payables and accrued expenses | 34,810 | |
Total liabilities | 697,834 | |
Net Assets | $472,573,827 | |
Net Assets consist of: | ||
Paid in capital | $451,991,792 | |
Total accumulated earnings (loss) | 20,582,035 | |
Net Assets | $472,573,827 | |
Net Asset Value, offering price and redemption price per share ($472,573,827 ÷ 24,043,568 shares) | $19.65 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended January 31, 2021 (Unaudited) | ||
Investment Income | ||
Dividends | $3,933,072 | |
Income from Fidelity Central Funds (including $24 from security lending) | 7,044 | |
Total income | 3,940,116 | |
Expenses | ||
Management fee | ||
Basic fee | $1,088,801 | |
Performance adjustment | (423,050) | |
Transfer agent fees | 365,420 | |
Accounting fees | 80,117 | |
Custodian fees and expenses | 9,614 | |
Independent trustees' fees and expenses | 961 | |
Registration fees | 14,398 | |
Audit | 30,458 | |
Legal | 1,118 | |
Miscellaneous | 21,394 | |
Total expenses before reductions | 1,189,231 | |
Expense reductions | (665) | |
Total expenses after reductions | 1,188,566 | |
Net investment income (loss) | 2,751,550 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | (14,034,776) | |
Fidelity Central Funds | (172) | |
Foreign currency transactions | 5,866 | |
Total net realized gain (loss) | (14,029,082) | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 72,642,894 | |
Fidelity Central Funds | (1,013) | |
Assets and liabilities in foreign currencies | (1,115) | |
Total change in net unrealized appreciation (depreciation) | 72,640,766 | |
Net gain (loss) | 58,611,684 | |
Net increase (decrease) in net assets resulting from operations | $61,363,234 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended January 31, 2021 (Unaudited) | Year ended July 31, 2020 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $2,751,550 | $7,370,540 |
Net realized gain (loss) | (14,029,082) | (3,138,047) |
Change in net unrealized appreciation (depreciation) | 72,640,766 | (55,625,817) |
Net increase (decrease) in net assets resulting from operations | 61,363,234 | (51,393,324) |
Distributions to shareholders | (4,701,233) | (8,938,882) |
Share transactions | ||
Proceeds from sales of shares | 108,134,833 | 202,642,931 |
Reinvestment of distributions | 3,381,384 | 6,231,606 |
Cost of shares redeemed | (71,390,128) | (250,462,635) |
Net increase (decrease) in net assets resulting from share transactions | 40,126,089 | (41,588,098) |
Total increase (decrease) in net assets | 96,788,090 | (101,920,304) |
Net Assets | ||
Beginning of period | 375,785,737 | 477,706,041 |
End of period | $472,573,827 | $375,785,737 |
Other Information | ||
Shares | ||
Sold | 5,661,167 | 12,491,357 |
Issued in reinvestment of distributions | 185,697 | 315,279 |
Redeemed | (3,880,644) | (14,965,007) |
Net increase (decrease) | 1,966,220 | (2,158,371) |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Blue Chip Value Fund
Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $17.02 | $19.71 | $19.90 | $18.85 | $16.19 | $16.88 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .12 | .31 | .32 | .26 | .18 | .19 |
Net realized and unrealized gain (loss) | 2.72 | (2.63) | (.14)B | 1.01 | 2.66 | (.59) |
Total from investment operations | 2.84 | (2.32) | .18 | 1.27 | 2.84 | (.40) |
Distributions from net investment income | (.21) | (.31) | (.29) | (.21) | (.18) | (.28) |
Distributions from net realized gain | – | (.06) | (.09) | –C | – | (.01) |
Total distributions | (.21) | (.37) | (.37)D | (.22)D | (.18) | (.29) |
Net asset value, end of period | $19.65 | $17.02 | $19.71 | $19.90 | $18.85 | $16.19 |
Total ReturnE,F | 16.80% | (12.03)% | .99%B | 6.79% | 17.68% | (2.31)% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | .58%I | .63% | .65% | .70% | .79% | .88% |
Expenses net of fee waivers, if any | .58%I | .63% | .65% | .70% | .79% | .88% |
Expenses net of all reductions | .58%I | .61% | .65% | .70% | .78% | .88% |
Net investment income (loss) | 1.34%I | 1.71% | 1.67% | 1.34% | 1.04% | 1.23% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $472,574 | $375,786 | $477,706 | $393,503 | $412,230 | $457,177 |
Portfolio turnover rateJ | 93%I | 119% | 44% | 45% | 32% | 54% |
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 $.02 per share. Excluding these litigation proceeds, the total return would have been .91%.
C Amount represents less than $.005 per share.
D Total distributions per share do not sum due to rounding.
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment advisor, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
I Annualized
J Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended January 31, 2021
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 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 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 - Investment 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 January 31, 2021 is included at the end of the Fund's Schedule of Investments.
Foreign Currency. Certain Funds 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. 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, 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 | $68,228,598 |
Gross unrealized depreciation | (11,687,028) |
Net unrealized appreciation (depreciation) | $56,541,570 |
Tax cost | $414,741,269 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of prior fiscal period end and is subject to adjustment.
No expiration | |
Short-term | $(15,583,954) |
Long-term | (5,631,809) |
Total capital loss carryforward | $(21,215,763) |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, are noted in the table below.
Purchases ($) | Sales ($) | |
Fidelity Blue Chip Value Fund | 219,976,661 | 184,172,187 |
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company LLC (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 .23% during the period. The group fee rate is based upon the monthly average net assets of a group of registered investment companies with which the investment adviser has management contracts. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of +/- .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the Fund's relative investment performance as compared to its benchmark index, the Russell 1000 Value Index, over the same 36 month performance period. For the reporting period, the total annualized management fee rate, including the performance adjustment, was .32% 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 LLC (FIIOC), an affiliate of the investment adviser, is the Fund's transfer, dividend disbursing and shareholder servicing agent. FIIOC receives account fees and asset-based fees that vary according to account size and type of account. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the transfer agent fees were equivalent to an annualized rate of .18% of average net assets.
Accounting 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. For the period, the fees were equivalent to the following annualized rates:
% of Average Net Assets | |
Fidelity Blue Chip Value Fund | .04 |
Brokerage Commissions. A portion of portfolio transactions were placed 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 as follows:
Amount | |
Fidelity Blue Chip Value Fund | $2,498 |
Interfund Trades. Funds 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, and amounted to $18,688,189 and $11,289,223, respectively.
6. Committed Line of Credit.
Certain Funds participate 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 participating funds have agreed to pay commitment fees on their pro-rata portion of the line of credit, which are reflected in Miscellaneous expenses on the Statement of Operations, and are listed below.
Amount | |
Fidelity Blue Chip Value Fund | $405 |
During the period, there were no borrowings on this line of credit.
7. Security Lending.
Funds lend portfolio securities from time to time in order to earn additional income. Lending agents are used, including National Financial Services (NFS), an affiliate of the investment adviser. Pursuant to a securities lending agreement, NFS will receive a fee, which is capped at 9.9% of a fund's daily lending revenue, for its services as lending agent. A fund may lend securities to certain qualified borrowers, including NFS. On the settlement date of the loan, a 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 a fund and any additional required collateral is delivered to a fund on the next business day. A 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, a fund may apply collateral received from the borrower against the obligation. A 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. Any loaned securities are identified as such in the Schedule of Investments, and the value of loaned securities and cash collateral at period end, as applicable, are presented in the 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. Affiliated security lending activity, if any, was as follows:
Total Security Lending Income Fees Paid to NFS | Security Lending Income From Securities Loaned to NFS | Value of Securities Loaned to NFS at Period End | |
Fidelity Blue Chip Value Fund | $2 | $– | $– |
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 by $3.
In addition, during the period the investment adviser or an affiliate reimbursed and/or waived a portion of operating expenses in the amount of $662.
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.
10. Coronavirus (COVID-19) Pandemic.
An outbreak of COVID-19 first detected in China during December 2019 has since spread globally and was declared a pandemic by the World Health Organization during March 2020. Developments that disrupt global economies and financial markets, such as the COVID-19 pandemic, may magnify factors that affect the Fund's performance.
Shareholder Expense Example
As a shareholder, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or redemption proceeds, as applicable and (2) ongoing costs, which generally include 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 a fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2020 to January 31, 2021).
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 for a class/Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. If any fund is a shareholder of any underlying mutual funds or exchange-traded funds (ETFs) (the Underlying Funds), such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses incurred presented in the table. These fees and expenses are not included in the 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 actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the 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. If any fund is a shareholder of any Underlying Funds, such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses as presented in the table. These fees and expenses are not included in the 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 August 1, 2020 | Ending Account Value January 31, 2021 | Expenses Paid During Period-B August 1, 2020 to January 31, 2021 | |
Fidelity Blue Chip Value Fund | .58% | |||
Actual | $1,000.00 | $1,168.00 | $3.17 | |
Hypothetical-C | $1,000.00 | $1,022.28 | $2.96 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/ 365 (to reflect the one-half year period). The fees and expenses of any Underlying Funds are not included in each annualized expense ratio.
C 5% return per year before expenses
Board Approval of Investment Advisory Contracts
Fidelity Blue Chip Value Fund
At its January 2021 meeting, the Board of Trustees, including the Independent Trustees (together, the Board), voted to continue the management contract with Fidelity Management & Research Company LLC (FMR), and the sub-advisory agreements and sub-subadvisory agreements, in each case, where applicable (together, the Advisory Contracts) for the fund for four months from February 1, 2021 through May 31, 2021, in connection with changes to the Board's meeting calendar.The Board considered that the approval of the fund's Advisory Contracts will not result in any changes in (i) the investment process or strategies employed in the management of the fund's assets; (ii) the fees and expenses paid by shareholders; (iii) the nature, extent or quality of services provided under the fund's Advisory Contracts; or (iv) the day-to-day management of the fund or the persons primarily responsible for such management. The Board also considered that since its last approval of the fund's Advisory Contracts, FMR had provided additional information on the fund in support of the annual contract renewal process, including competitive analyses on total expenses and management fees and in-depth reviews of fund performance and fund profitability information. The Board also considered the findings of certain ad hoc committees that had been previously formed to discuss matters relevant to all of the Fidelity funds, including economies of scale, fall-out benefits and retail vs. institutional funds. The Board concluded that the fund's Advisory Contracts are fair and reasonable, and that the fund's Advisory Contracts should be renewed, without modification, through May 31, 2021, with the understanding that the Board will consider the annual renewal for a full one year period in May 2021.In connection with its consideration of future renewals of the fund's Advisory Contracts, the Board will consider: (i) the nature, extent and quality of services provided to the funds, including shareholder and administrative services and investment performance; (ii) the competitiveness of the management fee and total expenses for the fund; (iii) the costs of the services and profitability, including the revenues earned and the expenses incurred in conducting the business of developing, marketing, distributing, managing, administering, and servicing the fund and its shareholders, to the extent applicable; and (iv) whether there have been economies of scale in respect of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is the potential for realization of any further economies.Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board ultimately concluded that the fund's management fee structure is fair and reasonable, and that the continuation of the fund's Advisory Contracts should be approved for four months from February 1, 2021 through May 31, 2021.BCV-SANN-0321
1.789715.118
Fidelity® Small Cap Growth Fund
Semi-Annual Report
January 31, 2021
Includes Fidelity and Fidelity Advisor share classes
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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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All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2021 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.
Note to Shareholders:
Early in 2020, the outbreak and spread of a new coronavirus emerged as a public health emergency that had a major influence on financial markets, primarily based on its impact on the global economy and the outlook for corporate earnings. The virus causes a respiratory disease known as COVID-19. On March 11, the World Health Organization declared the COVID-19 outbreak a pandemic, citing sustained risk of further global spread.
In the weeks following, as the crisis worsened, we witnessed an escalating human tragedy with wide-scale social and economic consequences from coronavirus-containment measures. The outbreak of COVID-19 prompted a number of measures to limit the spread, including travel and border restrictions, quarantines, and restrictions on large gatherings. In turn, these resulted in lower consumer activity, diminished demand for a wide range of products and services, disruption in manufacturing and supply chains, and – given the wide variability in outcomes regarding the outbreak – significant market uncertainty and volatility. Amid the turmoil, global governments and central banks took unprecedented action to help support consumers, businesses, and the broader economies, and to limit disruption to financial systems.
The situation continues to unfold, and the extent and duration of its impact on financial markets and the economy remain highly uncertain. Extreme events such as the coronavirus crisis are “exogenous shocks” that can have significant adverse effects on mutual funds and their investments. Although multiple asset classes may be affected by market disruption, the duration and impact may not be the same for all types of assets.
Fidelity is committed to helping you stay informed amid news about COVID-19 and during increased market volatility, and we’re taking extra steps to be responsive to customer needs. We encourage you to visit our websites, where we offer ongoing updates, commentary, and analysis on the markets and our funds.
Investment Summary (Unaudited)
Top Ten Stocks as of January 31, 2021
% of fund's net assets | |
StepStone Group, Inc. Class A | 1.5 |
Crocs, Inc. | 1.4 |
Builders FirstSource, Inc. | 1.4 |
SiTime Corp. | 1.4 |
Insulet Corp. | 1.4 |
Novavax, Inc. | 1.2 |
Compass, Inc. Series E | 1.1 |
Caesars Entertainment, Inc. | 1.1 |
Kornit Digital Ltd. | 1.1 |
American Eagle Outfitters, Inc. | 1.1 |
12.7 |
Top Five Market Sectors as of January 31, 2021
% of fund's net assets | |
Health Care | 33.3 |
Information Technology | 21.1 |
Consumer Discretionary | 16.4 |
Industrials | 15.5 |
Financials | 6.9 |
Asset Allocation (% of fund's net assets)
As of January 31, 2021 * | ||
Stocks | 97.4% | |
Convertible Securities | 2.3% | |
Short-Term Investments and Net Other Assets (Liabilities) | 0.3% |
* Foreign investments - 10.2%
Schedule of Investments January 31, 2021 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.4% | |||
Shares | Value | ||
COMMUNICATION SERVICES - 1.7% | |||
Entertainment - 0.2% | |||
Gaia, Inc. Class A (a) | 229,713 | $2,099,577 | |
Marcus Corp. | 86,544 | 1,523,174 | |
Skillz, Inc. (a)(b) | 318,400 | 8,794,208 | |
12,416,959 | |||
Interactive Media & Services - 0.1% | |||
QuinStreet, Inc. (a) | 283,077 | 5,992,740 | |
Media - 1.4% | |||
Cardlytics, Inc. (a)(b) | 235,886 | 28,841,781 | |
TechTarget, Inc. (a) | 644,515 | 48,145,271 | |
76,987,052 | |||
TOTAL COMMUNICATION SERVICES | 95,396,751 | ||
CONSUMER DISCRETIONARY - 16.2% | |||
Auto Components - 0.7% | |||
Visteon Corp. (a) | 294,400 | 37,530,112 | |
Diversified Consumer Services - 0.6% | |||
Arco Platform Ltd. Class A (a)(b) | 579,766 | 18,401,773 | |
Grand Canyon Education, Inc. (a) | 182,823 | 15,528,986 | |
33,930,759 | |||
Hotels, Restaurants & Leisure - 3.5% | |||
Caesars Entertainment, Inc. (a) | 884,200 | 62,238,838 | |
Churchill Downs, Inc. | 268,491 | 50,328,638 | |
Lindblad Expeditions Holdings (a)(c) | 3,138,536 | 49,275,015 | |
SeaWorld Entertainment, Inc. (a) | 333,500 | 9,528,095 | |
Wingstop, Inc. | 175,205 | 26,289,510 | |
197,660,096 | |||
Household Durables - 3.6% | |||
Helen of Troy Ltd. (a)(b) | 217,375 | 53,093,844 | |
Lovesac (a)(b) | 177,400 | 10,030,196 | |
M/I Homes, Inc. (a) | 311,791 | 15,393,122 | |
Purple Innovation, Inc. (a) | 541,200 | 18,422,448 | |
Taylor Morrison Home Corp. (a) | 1,446,946 | 37,591,657 | |
Tempur Sealy International, Inc. (a) | 388,800 | 10,264,320 | |
TopBuild Corp. (a)(b) | 128,200 | 25,633,590 | |
Whirlpool Corp. | 155,691 | 28,816,847 | |
199,246,024 | |||
Internet & Direct Marketing Retail - 2.0% | |||
1-800-FLOWERS.com, Inc. Class A (a)(b) | 483,700 | 14,864,101 | |
Farfetch Ltd. Class A (a) | 580,311 | 35,538,246 | |
Kogan.Com Ltd. | 1,583,074 | 21,765,459 | |
Porch Group, Inc. Class A (a)(b) | 166,800 | 2,471,976 | |
Revolve Group, Inc. (a)(b) | 746,062 | 27,723,664 | |
Stamps.com, Inc. (a) | 47,766 | 10,905,455 | |
113,268,901 | |||
Leisure Products - 0.2% | |||
Acushnet Holdings Corp. | 211,104 | 8,617,265 | |
Polaris, Inc. | 43,343 | 5,056,828 | |
13,674,093 | |||
Multiline Retail - 0.2% | |||
Ollie's Bargain Outlet Holdings, Inc. (a)(b) | 111,002 | 10,515,219 | |
Specialty Retail - 3.0% | |||
American Eagle Outfitters, Inc. (b) | 2,583,200 | 58,612,808 | |
Floor & Decor Holdings, Inc. Class A (a) | 376,718 | 34,684,426 | |
Lithia Motors, Inc. Class A (sub. vtg.) | 93,100 | 29,669,108 | |
Musti Group OYJ | 404,473 | 12,654,067 | |
Williams-Sonoma, Inc. | 230,336 | 29,694,917 | |
165,315,326 | |||
Textiles, Apparel & Luxury Goods - 2.4% | |||
Crocs, Inc. (a) | 1,116,300 | 78,163,326 | |
Deckers Outdoor Corp. (a) | 149,670 | 43,700,647 | |
Tapestry, Inc. | 336,000 | 10,624,320 | |
132,488,293 | |||
TOTAL CONSUMER DISCRETIONARY | 903,628,823 | ||
CONSUMER STAPLES - 1.7% | |||
Food & Staples Retailing - 0.8% | |||
BJ's Wholesale Club Holdings, Inc. (a) | 1,107,700 | 46,600,939 | |
Food Products - 0.6% | |||
Bunge Ltd. | 157,900 | 10,332,976 | |
Nomad Foods Ltd. (a) | 800,501 | 20,092,575 | |
30,425,551 | |||
Personal Products - 0.3% | |||
Herbalife Nutrition Ltd. (a) | 325,500 | 16,587,480 | |
TOTAL CONSUMER STAPLES | 93,613,970 | ||
ENERGY - 0.7% | |||
Oil, Gas & Consumable Fuels - 0.7% | |||
Enviva Partners LP | 63,599 | 3,168,502 | |
Renewable Energy Group, Inc. (a)(b) | 427,200 | 38,277,120 | |
41,445,622 | |||
FINANCIALS - 6.6% | |||
Banks - 0.2% | |||
Signature Bank | 85,200 | 14,074,188 | |
Capital Markets - 3.6% | |||
Cowen Group, Inc. Class A (b) | 969,873 | 24,392,306 | |
Lazard Ltd. Class A | 377,811 | 15,565,813 | |
LPL Financial | 336,256 | 36,429,975 | |
Morningstar, Inc. | 101,834 | 23,410,618 | |
StepStone Group, Inc. Class A | 2,516,346 | 83,955,364 | |
Vesper Healthcare Acquisition Corp. Class A (a) | 1,579,800 | 16,540,506 | |
200,294,582 | |||
Consumer Finance - 0.5% | |||
Green Dot Corp. Class A (a) | 257,700 | 12,944,271 | |
OneMain Holdings, Inc. | 290,600 | 13,530,336 | |
26,474,607 | |||
Diversified Financial Services - 0.6% | |||
Northern Star Acquisition Corp. unit (c) | 2,345,414 | 32,085,264 | |
Insurance - 1.7% | |||
American Financial Group, Inc. | 272,879 | 25,688,829 | |
Assurant, Inc. | 177,400 | 24,032,378 | |
Brown & Brown, Inc. | 375,600 | 16,184,604 | |
BRP Group, Inc. (a) | 601,144 | 13,952,552 | |
RenaissanceRe Holdings Ltd. | 108,508 | 16,323,944 | |
96,182,307 | |||
TOTAL FINANCIALS | 369,110,948 | ||
HEALTH CARE - 33.2% | |||
Biotechnology - 17.5% | |||
4D Molecular Therapeutics, Inc. | 472,720 | 20,024,419 | |
Acceleron Pharma, Inc. (a) | 243,156 | 28,091,813 | |
ADC Therapeutics SA (a) | 217,514 | 6,214,375 | |
Agios Pharmaceuticals, Inc. (a) | 343,059 | 16,113,481 | |
Allovir, Inc. (a)(b) | 432,000 | 15,798,240 | |
ALX Oncology Holdings, Inc. (a)(b) | 266,500 | 21,120,125 | |
Annexon, Inc. (a) | 248,800 | 5,473,600 | |
Argenx SE ADR (a) | 117,226 | 34,349,563 | |
Ascendis Pharma A/S sponsored ADR (a) | 229,102 | 34,399,665 | |
Avid Bioservices, Inc. (a) | 1,171,338 | 17,089,821 | |
Blueprint Medicines Corp. (a) | 349,975 | 33,860,081 | |
CareDx, Inc. (a)(b) | 170,478 | 13,029,634 | |
Cullinan Management, Inc. | 9,800 | 372,498 | |
Deciphera Pharmaceuticals, Inc. (a) | 198,816 | 8,787,667 | |
Emergent BioSolutions, Inc. (a) | 203,502 | 21,744,189 | |
Exelixis, Inc. (a) | 937,700 | 20,826,317 | |
Fate Therapeutics, Inc. (a) | 221,481 | 20,072,823 | |
FibroGen, Inc. (a)(b) | 436,494 | 21,030,281 | |
Forma Therapeutics Holdings, Inc. | 431,700 | 16,676,571 | |
Fusion Pharmaceuticals, Inc. (a) | 30,400 | 343,520 | |
Generation Bio Co. | 36,597 | 963,599 | |
Halozyme Therapeutics, Inc. (a)(b) | 861,500 | 40,998,785 | |
ImmunoGen, Inc. (a) | 1,254,400 | 8,943,872 | |
Iovance Biotherapeutics, Inc. (a) | 263,155 | 11,536,715 | |
Keros Therapeutics, Inc. | 163,800 | 9,344,790 | |
Kronos Bio, Inc. (b) | 36,600 | 1,006,134 | |
Kura Oncology, Inc. (a) | 943,441 | 28,256,058 | |
Kymera Therapeutics, Inc. (a)(b) | 430,011 | 26,639,181 | |
Mirati Therapeutics, Inc. (a) | 208,706 | 42,853,603 | |
Morphic Holding, Inc. (a) | 348,378 | 11,726,403 | |
Natera, Inc. (a) | 434,888 | 46,376,456 | |
Neurocrine Biosciences, Inc. (a) | 128,200 | 14,069,950 | |
Nkarta, Inc. (a) | 16,700 | 662,322 | |
Novavax, Inc. (a) | 304,100 | 67,187,854 | |
ORIC Pharmaceuticals, Inc. (a) | 49,158 | 1,441,313 | |
Passage Bio, Inc. | 715,171 | 13,345,091 | |
Poseida Therapeutics, Inc. (a) | 17,500 | 152,250 | |
Prelude Therapeutics, Inc. | 290,599 | 18,874,405 | |
Protagonist Therapeutics, Inc. (a) | 720,288 | 14,917,164 | |
PTC Therapeutics, Inc. (a) | 415,500 | 24,024,210 | |
Relay Therapeutics, Inc. (a) | 429,743 | 21,306,658 | |
Repare Therapeutics, Inc. | 446,700 | 16,577,037 | |
Repligen Corp. (a) | 70,538 | 14,107,600 | |
Revolution Medicines, Inc. | 435,808 | 18,364,949 | |
Shattuck Labs, Inc. | 90,200 | 4,474,822 | |
Silverback Therapeutics, Inc. | 60,266 | 2,646,883 | |
Stoke Therapeutics, Inc. (a) | 23,500 | 1,435,380 | |
Taysha Gene Therapies, Inc. | 89,917 | 2,337,842 | |
TG Therapeutics, Inc. (a)(b) | 1,211,360 | 58,472,347 | |
Turning Point Therapeutics, Inc. (a) | 373,473 | 46,867,127 | |
Veracyte, Inc. (a) | 128,400 | 7,280,280 | |
Vericel Corp. (a)(b) | 543,000 | 22,409,610 | |
Viela Bio, Inc. (a) | 524,521 | 18,190,388 | |
Xenon Pharmaceuticals, Inc. (a) | 224,674 | 3,224,072 | |
Zymeworks, Inc. (a) | 43,179 | 1,460,314 | |
977,894,147 | |||
Health Care Equipment & Supplies - 5.1% | |||
Axonics Modulation Technologies, Inc. (a)(b) | 484,632 | 25,055,474 | |
CryoPort, Inc. (a)(b) | 253,970 | 17,320,754 | |
Globus Medical, Inc. (a) | 169,600 | 10,462,624 | |
Haemonetics Corp. (a) | 171,415 | 19,591,020 | |
Insulet Corp. (a) | 283,584 | 75,767,973 | |
Integer Holdings Corp. (a) | 376,415 | 27,779,427 | |
Neuronetics, Inc. (a) | 694,874 | 12,250,629 | |
Nevro Corp. (a) | 242,030 | 39,158,034 | |
Pulmonx Corp. | 194,748 | 11,046,107 | |
Tandem Diabetes Care, Inc. (a) | 186,803 | 17,307,298 | |
TransMedics Group, Inc. (a) | 717,906 | 16,353,899 | |
ViewRay, Inc. (a) | 3,205,899 | 14,234,192 | |
286,327,431 | |||
Health Care Providers & Services - 4.2% | |||
Castle Biosciences, Inc. (a) | 273,100 | 18,251,273 | |
Chemed Corp. | 29,600 | 15,329,840 | |
Guardant Health, Inc. (a) | 133,051 | 20,689,431 | |
LHC Group, Inc. (a) | 109,442 | 21,803,035 | |
Molina Healthcare, Inc. (a) | 184,646 | 39,442,232 | |
Option Care Health, Inc. (a) | 257,042 | 4,750,136 | |
Progyny, Inc. (a)(b) | 891,069 | 41,675,297 | |
R1 RCM, Inc. (a) | 1,385,500 | 34,956,165 | |
Surgery Partners, Inc. (a) | 137,000 | 5,107,360 | |
The Ensign Group, Inc. | 372,400 | 29,151,472 | |
The Joint Corp. (a) | 70,944 | 2,307,808 | |
233,464,049 | |||
Health Care Technology - 2.7% | |||
Certara, Inc. | 45,300 | 1,559,226 | |
Health Catalyst, Inc. (a) | 432,908 | 21,506,869 | |
Inovalon Holdings, Inc. Class A (a) | 506,510 | 12,358,844 | |
Inspire Medical Systems, Inc. (a) | 254,280 | 51,239,963 | |
Phreesia, Inc. (a) | 624,456 | 40,770,732 | |
Schrodinger, Inc. | 247,262 | 22,335,176 | |
149,770,810 | |||
Life Sciences Tools & Services - 3.5% | |||
10X Genomics, Inc. (a) | 155,806 | 26,666,197 | |
Berkeley Lights, Inc. (a) | 168,340 | 12,120,480 | |
Bruker Corp. | 338,052 | 19,569,830 | |
Charles River Laboratories International, Inc. (a) | 88,205 | 22,849,505 | |
Maravai LifeSciences Holdings, Inc. | 144,200 | 5,023,928 | |
Medpace Holdings, Inc. (a) | 213,000 | 28,284,270 | |
Nanostring Technologies, Inc. (a) | 519,147 | 36,355,864 | |
Syneos Health, Inc. (a) | 625,200 | 46,483,620 | |
197,353,694 | |||
Pharmaceuticals - 0.2% | |||
Aclaris Therapeutics, Inc. (a) | 88,600 | 1,838,450 | |
IMARA, Inc. | 262,614 | 3,419,234 | |
SCYNEXIS, Inc. warrants 6/21/21 (a) | 16,875 | 0 | |
Theravance Biopharma, Inc. (a) | 424,987 | 7,921,758 | |
13,179,442 | |||
TOTAL HEALTH CARE | 1,857,989,573 | ||
INDUSTRIALS - 15.2% | |||
Aerospace & Defense - 0.9% | |||
Axon Enterprise, Inc. (a) | 151,350 | 24,845,616 | |
BWX Technologies, Inc. | 459,184 | 24,759,201 | |
49,604,817 | |||
Air Freight & Logistics - 0.5% | |||
Air Transport Services Group, Inc. (a) | 824,500 | 20,950,545 | |
Atlas Air Worldwide Holdings, Inc. (a) | 166,200 | 8,612,484 | |
29,563,029 | |||
Building Products - 2.6% | |||
Builders FirstSource, Inc. (a) | 2,028,650 | 77,595,863 | |
Fortune Brands Home & Security, Inc. | 300,082 | 25,882,073 | |
The AZEK Co., Inc. | 1,086,200 | 43,328,518 | |
146,806,454 | |||
Commercial Services & Supplies - 1.1% | |||
Montrose Environmental Group, Inc. (a) | 623,300 | 23,049,634 | |
MYT Netherlands Parent BV ADR | 25,800 | 849,336 | |
Tetra Tech, Inc. | 122,000 | 14,831,540 | |
The Brink's Co. | 337,700 | 23,007,501 | |
61,738,011 | |||
Construction & Engineering - 0.5% | |||
MasTec, Inc. (a) | 223,700 | 17,258,455 | |
Quanta Services, Inc. | 175,800 | 12,388,626 | |
29,647,081 | |||
Electrical Equipment - 3.1% | |||
Bloom Energy Corp. Class A (a) | 145,000 | 5,061,950 | |
Generac Holdings, Inc. (a) | 66,007 | 16,265,445 | |
Plug Power, Inc. (a)(b) | 910,400 | 57,509,968 | |
Regal Beloit Corp. | 129,100 | 16,199,468 | |
Sensata Technologies, Inc. PLC (a) | 569,168 | 31,019,656 | |
Sunrun, Inc. (a) | 475,600 | 32,944,812 | |
Vertiv Holdings Co. | 670,500 | 13,490,460 | |
172,491,759 | |||
Machinery - 3.5% | |||
AGCO Corp. | 153,700 | 17,045,330 | |
Chart Industries, Inc. (a) | 113,000 | 13,572,430 | |
Crane Co. | 301,700 | 22,832,656 | |
ESCO Technologies, Inc. | 249,714 | 23,742,807 | |
IDEX Corp. | 103,506 | 19,271,782 | |
ITT, Inc. | 375,164 | 28,028,502 | |
Kornit Digital Ltd. (a) | 647,156 | 58,654,984 | |
Nordson Corp. | 62,060 | 11,108,119 | |
194,256,610 | |||
Professional Services - 2.9% | |||
ASGN, Inc. (a) | 324,902 | 26,937,625 | |
Clarivate Analytics PLC (a) | 980,348 | 28,371,271 | |
Insperity, Inc. | 405,632 | 31,838,056 | |
TriNet Group, Inc. (a) | 667,870 | 49,495,846 | |
Upwork, Inc. (a) | 551,000 | 22,838,950 | |
159,481,748 | |||
Trading Companies & Distributors - 0.1% | |||
Nesco Holdings, Inc. Class A (a) | 782,609 | 5,963,481 | |
TOTAL INDUSTRIALS | 849,552,990 | ||
INFORMATION TECHNOLOGY - 19.7% | |||
Communications Equipment - 0.5% | |||
Lumentum Holdings, Inc. (a) | 273,800 | 25,682,440 | |
Electronic Equipment & Components - 0.9% | |||
Fabrinet (a) | 439,261 | 34,675,263 | |
II-VI, Inc. (a) | 166,500 | 13,997,655 | |
48,672,918 | |||
IT Services - 2.0% | |||
CACI International, Inc. Class A (a) | 84,722 | 20,436,641 | |
Fastly, Inc. Class A (a) | 54,400 | 5,948,640 | |
Genpact Ltd. | 671,695 | 25,712,485 | |
Globant SA (a) | 119,640 | 22,970,880 | |
KBR, Inc. | 648,590 | 18,841,540 | |
Repay Holdings Corp. (a) | 344,015 | 7,619,932 | |
WNS Holdings Ltd. sponsored ADR (a) | 190,720 | 12,812,570 | |
114,342,688 | |||
Semiconductors & Semiconductor Equipment - 4.6% | |||
ACM Research, Inc. (a) | 62,121 | 5,590,890 | |
Advanced Energy Industries, Inc. | 380,793 | 39,061,746 | |
Array Technologies, Inc. | 895,352 | 36,494,548 | |
Cirrus Logic, Inc. (a) | 328,828 | 30,807,895 | |
Enphase Energy, Inc. (a) | 137,105 | 25,001,097 | |
PDF Solutions, Inc. (a) | 65,172 | 1,259,123 | |
Semtech Corp. (a) | 480,273 | 34,075,369 | |
SiTime Corp. (a)(b) | 624,773 | 76,253,545 | |
Ultra Clean Holdings, Inc. (a) | 262,738 | 10,141,687 | |
258,685,900 | |||
Software - 11.7% | |||
Aspen Technology, Inc. (a) | 116,600 | 15,612,740 | |
Ceridian HCM Holding, Inc. (a) | 181,991 | 16,908,784 | |
CyberArk Software Ltd. (a) | 215,100 | 34,469,775 | |
Digital Turbine, Inc. (a) | 901,154 | 51,555,020 | |
Duck Creek Technologies, Inc. (a)(b) | 64,897 | 3,137,121 | |
Dynatrace, Inc. (a) | 706,027 | 29,307,181 | |
Elastic NV (a) | 267,624 | 40,668,143 | |
FireEye, Inc. (a) | 283,000 | 5,943,000 | |
Five9, Inc. (a) | 158,682 | 26,380,883 | |
JFrog Ltd. (b) | 115,200 | 7,196,544 | |
Lightspeed POS, Inc. (Canada) (a) | 379,850 | 24,693,592 | |
LivePerson, Inc. (a)(b) | 579,446 | 36,713,699 | |
Manhattan Associates, Inc. (a) | 168,603 | 19,090,918 | |
NICE Systems Ltd. sponsored ADR (a) | 67,000 | 17,505,760 | |
Nuance Communications, Inc. (a) | 495,947 | 22,585,426 | |
Rapid7, Inc. (a) | 497,100 | 43,158,222 | |
SailPoint Technologies Holding, Inc. (a) | 150,800 | 8,340,748 | |
Sprout Social, Inc. (a) | 799,700 | 52,780,200 | |
TECSYS, Inc. | 147,900 | 6,371,700 | |
Telos Corp. | 589,500 | 20,809,350 | |
Tenable Holdings, Inc. (a) | 1,109,108 | 54,889,755 | |
Varonis Systems, Inc. (a) | 162,600 | 28,742,802 | |
Verint Systems, Inc. (a) | 200,900 | 14,832,447 | |
Workiva, Inc. (a) | 330,200 | 32,184,594 | |
Xperi Holding Corp. | 699,400 | 13,470,444 | |
Yext, Inc. (a) | 1,506,478 | 25,414,284 | |
652,763,132 | |||
TOTAL INFORMATION TECHNOLOGY | 1,100,147,078 | ||
MATERIALS - 1.0% | |||
Chemicals - 0.4% | |||
The Chemours Co. LLC | 392,500 | 10,338,450 | |
Valvoline, Inc. | 535,521 | 12,713,269 | |
23,051,719 | |||
Containers & Packaging - 0.6% | |||
Avery Dennison Corp. | 235,192 | 35,483,417 | |
TOTAL MATERIALS | 58,535,136 | ||
REAL ESTATE - 0.8% | |||
Equity Real Estate Investment Trusts (REITs) - 0.5% | |||
Americold Realty Trust | 336,456 | 11,745,679 | |
Terreno Realty Corp. | 320,742 | 18,147,582 | |
29,893,261 | |||
Real Estate Management & Development - 0.3% | |||
Redfin Corp. (a) | 190,200 | 13,544,142 | |
TOTAL REAL ESTATE | 43,437,403 | ||
UTILITIES - 0.6% | |||
Independent Power and Renewable Electricity Producers - 0.6% | |||
Clearway Energy, Inc. Class C | 334,200 | 10,353,516 | |
Shoals Technologies Group, Inc. | 48,500 | 1,645,605 | |
Sunnova Energy International, Inc. (a) | 466,400 | 20,451,640 | |
32,450,761 | |||
TOTAL COMMON STOCKS | |||
(Cost $3,767,975,191) | 5,445,309,055 | ||
Convertible Preferred Stocks - 2.3% | |||
CONSUMER DISCRETIONARY - 0.2% | |||
Specialty Retail - 0.2% | |||
Fanatics, Inc. Series E (d)(e) | 707,802 | 12,237,897 | |
FINANCIALS - 0.3% | |||
Diversified Financial Services - 0.3% | |||
Alkami Technology, Inc. Series F (d)(e) | 893,236 | 14,291,776 | |
HEALTH CARE - 0.1% | |||
Health Care Providers & Services - 0.1% | |||
Ikena Oncology, Inc. Series B (d)(e) | 3,645,400 | 5,098,092 | |
INDUSTRIALS - 0.3% | |||
Road & Rail - 0.3% | |||
Convoy, Inc. Series D (a)(d)(e) | 913,444 | 15,062,692 | |
INFORMATION TECHNOLOGY - 1.4% | |||
IT Services - 0.2% | |||
Yanka Industries, Inc. Series E (d)(e) | 869,641 | 10,504,568 | |
Software - 1.2% | |||
Compass, Inc. Series E (a)(d)(e) | 353,803 | 64,710,569 | |
DoubleVerify, Inc. Series A (d)(e) | 875,100 | 5,020,536 | |
69,731,105 | |||
TOTAL INFORMATION TECHNOLOGY | 80,235,673 | ||
TOTAL CONVERTIBLE PREFERRED STOCKS | |||
(Cost $83,394,891) | 126,926,130 | ||
Money Market Funds - 5.6% | |||
Fidelity Cash Central Fund 0.09% (f) | 12,239,030 | 12,241,478 | |
Fidelity Securities Lending Cash Central Fund 0.09% (f)(g) | 300,770,857 | 300,800,935 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $313,042,413) | 313,042,413 | ||
TOTAL INVESTMENT IN SECURITIES - 105.3% | |||
(Cost $4,164,412,495) | 5,885,277,598 | ||
NET OTHER ASSETS (LIABILITIES) - (5.3)% | (296,298,641) | ||
NET ASSETS - 100% | $5,588,978,957 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Affiliated company
(d) Restricted securities (including private placements) - 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 $126,926,130 or 2.3% of net assets.
(e) Level 3 security
(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 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 |
Alkami Technology, Inc. Series F | 9/24/20 | $14,291,776 |
Compass, Inc. Series E | 11/3/17 | $23,873,990 |
Convoy, Inc. Series D | 10/30/19 | $12,368,032 |
DoubleVerify, Inc. Series A | 11/18/20 | $5,020,536 |
Fanatics, Inc. Series E | 8/13/20 | $12,237,897 |
Ikena Oncology, Inc. Series B | 12/21/20 | $5,098,092 |
Yanka Industries, Inc. Series E | 5/15/20 | $10,504,568 |
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 | $11,605 |
Fidelity Securities Lending Cash Central Fund | 347,542 |
Total | $359,147 |
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.
The value, beginning of period, for the Fidelity Securities Lending Cash Central Fund was $223,628,139. Net realized gain (loss) and change in net unrealized appreciation (depreciation) on Fidelity Cash Central Fund is presented in the Statement of Operations, if applicable. Purchases and sales of the Fidelity Cash Central Fund were $763,965,005 and $686,792,209, respectively, during the period.
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 |
Lindblad Expeditions Holdings | $4,132,761 | $33,358,853 | $6,757,234 | $-- | $958,286 | $17,582,349 | $49,275,015 |
Northern Star Acquisition Corp. unit | -- | 30,849,631 | -- | -- | -- | 1,235,633 | 32,085,264 |
SiTime Corp. | 46,580,660 | 830,130 | 25,559,549 | -- | 14,663,759 | 39,738,545 | -- |
Total | $50,713,421 | $65,038,614 | $32,316,783 | $-- | $15,622,045 | $58,556,527 | $81,360,279 |
Investment Valuation
The following is a summary of the inputs used, as of January 31, 2021, 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 | $95,396,751 | $95,396,751 | $-- | $-- |
Consumer Discretionary | 915,866,720 | 903,628,823 | -- | 12,237,897 |
Consumer Staples | 93,613,970 | 93,613,970 | -- | -- |
Energy | 41,445,622 | 41,445,622 | -- | -- |
Financials | 383,402,724 | 285,155,584 | 83,955,364 | 14,291,776 |
Health Care | 1,863,087,665 | 1,857,989,573 | -- | 5,098,092 |
Industrials | 864,615,682 | 849,552,990 | -- | 15,062,692 |
Information Technology | 1,180,382,751 | 1,100,147,078 | -- | 80,235,673 |
Materials | 58,535,136 | 58,535,136 | -- | -- |
Real Estate | 43,437,403 | 43,437,403 | -- | -- |
Utilities | 32,450,761 | 32,450,761 | -- | -- |
Money Market Funds | 313,042,413 | 313,042,413 | -- | -- |
Total Investments in Securities: | $5,885,277,598 | $5,674,396,104 | $83,955,364 | $126,926,130 |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value:
Equities - Information Technology | |
Beginning Balance | $55,214,653 |
Net Realized Gain (Loss) on Investment Securities | -- |
Net Unrealized Gain (Loss) on Investment Securities | 20,000,484 |
Cost of Purchases | 5,020,536 |
Proceeds of Sales | -- |
Amortization/Accretion | -- |
Transfers into Level 3 | -- |
Transfers out of Level 3 | -- |
Ending Balance | $80,235,673 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2021 | $20,000,484 |
Equities - Other Investments in Securities | |
Beginning Balance | $41,903,775 |
Net Realized Gain (Loss) on Investment Securities | -- |
Net Unrealized Gain (Loss) on Investment Securities | 2,758,601 |
Cost of Purchases | 31,627,765 |
Proceeds of Sales | -- |
Amortization/Accretion | -- |
Transfers into Level 3 | -- |
Transfers out of Level 3 | (29,599,684) |
Ending Balance | $46,690,457 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2021 | $2,758,601 |
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. Cost of purchases and proceeds of sales may include securities received and/or delivered through 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 | 89.8% |
Bermuda | 2.2% |
Israel | 1.7% |
Netherlands | 1.3% |
Cayman Islands | 1.0% |
Others (Individually Less Than 1%) | 4.0% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
January 31, 2021 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $287,248,360) — See accompanying schedule: Unaffiliated issuers (cost $3,788,511,285) | $5,490,874,906 | |
Fidelity Central Funds (cost $313,042,413) | 313,042,413 | |
Other affiliated issuers (cost $62,858,797) | 81,360,279 | |
Total Investment in Securities (cost $4,164,412,495) | $5,885,277,598 | |
Cash | 16,528 | |
Receivable for investments sold | 67,256,836 | |
Receivable for fund shares sold | 7,784,186 | |
Dividends receivable | 345,572 | |
Distributions receivable from Fidelity Central Funds | 88,632 | |
Prepaid expenses | 4,240 | |
Other receivables | 123,244 | |
Total assets | 5,960,896,836 | |
Liabilities | ||
Payable for investments purchased | $56,628,967 | |
Payable for fund shares redeemed | 9,597,723 | |
Accrued management fee | 3,921,507 | |
Distribution and service plan fees payable | 198,280 | |
Other affiliated payables | 728,322 | |
Other payables and accrued expenses | 53,094 | |
Collateral on securities loaned | 300,789,986 | |
Total liabilities | 371,917,879 | |
Net Assets | $5,588,978,957 | |
Net Assets consist of: | ||
Paid in capital | $3,522,302,107 | |
Total accumulated earnings (loss) | 2,066,676,850 | |
Net Assets | $5,588,978,957 | |
Net Asset Value and Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($357,747,331 ÷ 10,952,490 shares)(a) | $32.66 | |
Maximum offering price per share (100/94.25 of $32.66) | $34.65 | |
Class M: | ||
Net Asset Value and redemption price per share ($94,986,665 ÷ 3,046,247 shares)(a) | $31.18 | |
Maximum offering price per share (100/96.50 of $31.18) | $32.31 | |
Class C: | ||
Net Asset Value and offering price per share ($93,771,188 ÷ 3,373,033 shares)(a) | $27.80 | |
Small Cap Growth: | ||
Net Asset Value, offering price and redemption price per share ($4,038,040,718 ÷ 116,672,540 shares) | $34.61 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($730,620,723 ÷ 21,047,711 shares) | $34.71 | |
Class Z: | ||
Net Asset Value, offering price and redemption price per share ($273,812,332 ÷ 7,851,868 shares) | $34.87 |
(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
Six months ended January 31, 2021 (Unaudited) | ||
Investment Income | ||
Dividends | $6,617,473 | |
Income from Fidelity Central Funds (including $347,542 from security lending) | 359,147 | |
Total income | 6,976,620 | |
Expenses | ||
Management fee | ||
Basic fee | $16,115,026 | |
Performance adjustment | 4,074,712 | |
Transfer agent fees | 3,533,420 | |
Distribution and service plan fees | 1,022,328 | |
Accounting fees | 535,360 | |
Custodian fees and expenses | 31,118 | |
Independent trustees' fees and expenses | 10,666 | |
Registration fees | 129,378 | |
Audit | 38,210 | |
Legal | 9,322 | |
Interest | 4,875 | |
Miscellaneous | 19,132 | |
Total expenses before reductions | 25,523,547 | |
Expense reductions | (237,664) | |
Total expenses after reductions | 25,285,883 | |
Net investment income (loss) | (18,309,263) | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 569,857,179 | |
Fidelity Central Funds | (1,122) | |
Other affiliated issuers | 15,622,045 | |
Foreign currency transactions | (23,076) | |
Total net realized gain (loss) | 585,455,026 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 782,355,615 | |
Fidelity Central Funds | (849) | |
Other affiliated issuers | 58,556,527 | |
Assets and liabilities in foreign currencies | (2,132) | |
Total change in net unrealized appreciation (depreciation) | 840,909,161 | |
Net gain (loss) | 1,426,364,187 | |
Net increase (decrease) in net assets resulting from operations | $1,408,054,924 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended January 31, 2021 (Unaudited) | Year ended July 31, 2020 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $(18,309,263) | $(21,603,326) |
Net realized gain (loss) | 585,455,026 | 290,142,517 |
Change in net unrealized appreciation (depreciation) | 840,909,161 | 36,274,665 |
Net increase (decrease) in net assets resulting from operations | 1,408,054,924 | 304,813,856 |
Distributions to shareholders | (414,291,131) | (217,764,832) |
Share transactions - net increase (decrease) | 600,489,222 | (211,257,791) |
Total increase (decrease) in net assets | 1,594,253,015 | (124,208,767) |
Net Assets | ||
Beginning of period | 3,994,725,942 | 4,118,934,709 |
End of period | $5,588,978,957 | $3,994,725,942 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Small Cap Growth Fund Class A
Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $26.64 | $26.03 | $27.45 | $22.99 | $19.17 | $20.55 |
Income from Investment Operations | ||||||
Net investment income (loss)A | (.15) | (.20) | (.21) | (.18) | (.14) | (.10) |
Net realized and unrealized gain (loss) | 8.93 | 2.26 | 1.79 | 6.32 | 4.12 | (.51) |
Total from investment operations | 8.78 | 2.06 | 1.58 | 6.14 | 3.98 | (.61) |
Distributions from net realized gain | (2.76) | (1.45) | (3.00) | (1.68) | (.16) | (.78) |
Total distributions | (2.76) | (1.45) | (3.00) | (1.68) | (.16) | (.78) |
Redemption fees added to paid in capital | – | – | – | –A,B | –A,B | .01A |
Net asset value, end of period | $32.66 | $26.64 | $26.03 | $27.45 | $22.99 | $19.17 |
Total ReturnC,D,E | 34.99% | 8.39% | 5.88% | 28.47% | 20.90% | (2.85)% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | 1.32%H | 1.37% | 1.33% | 1.31% | 1.35% | 1.37% |
Expenses net of fee waivers, if any | 1.32%H | 1.37% | 1.33% | 1.31% | 1.35% | 1.37% |
Expenses net of all reductions | 1.31%H | 1.36% | 1.32% | 1.30% | 1.34% | 1.36% |
Net investment income (loss) | (1.02)%H | (.80)% | (.85)% | (.74)% | (.66)% | (.58)% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $357,747 | $268,448 | $285,554 | $315,894 | $218,905 | $176,988 |
Portfolio turnover rateI | 110%H | 126%J | 91%J | 106%J | 140%J | 143% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns for periods of less than one year are not annualized.
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 sales charges.
F Fees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
H Annualized
I Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
J 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
Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $25.56 | $25.09 | $26.59 | $22.35 | $18.69 | $20.08 |
Income from Investment Operations | ||||||
Net investment income (loss)A | (.18) | (.25) | (.26) | (.24) | (.19) | (.15) |
Net realized and unrealized gain (loss) | 8.53 | 2.17 | 1.72 | 6.13 | 4.01 | (.50) |
Total from investment operations | 8.35 | 1.92 | 1.46 | 5.89 | 3.82 | (.65) |
Distributions from net realized gain | (2.73) | (1.45) | (2.96) | (1.65) | (.16) | (.75) |
Total distributions | (2.73) | (1.45) | (2.96) | (1.65) | (.16) | (.75) |
Redemption fees added to paid in capital | – | – | – | –A,B | –A,B | .01A |
Net asset value, end of period | $31.18 | $25.56 | $25.09 | $26.59 | $22.35 | $18.69 |
Total ReturnC,D,E | 34.79% | 8.14% | 5.60% | 28.15% | 20.57% | (3.14)% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | 1.58%H | 1.63% | 1.60% | 1.58% | 1.62% | 1.66% |
Expenses net of fee waivers, if any | 1.58%H | 1.63% | 1.60% | 1.58% | 1.62% | 1.66% |
Expenses net of all reductions | 1.57%H | 1.62% | 1.59% | 1.57% | 1.61% | 1.64% |
Net investment income (loss) | (1.27)%H | (1.06)% | (1.12)% | (1.01)% | (.94)% | (.87)% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $94,987 | $70,605 | $75,030 | $82,567 | $64,034 | $53,447 |
Portfolio turnover rateI | 110%H | 126%J | 91%J | 106%J | 140%J | 143% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns for periods of less than one year are not annualized.
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 sales charges.
F Fees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
H Annualized
I Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
J 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
Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $23.07 | $22.89 | $24.56 | $20.83 | $17.52 | $18.90 |
Income from Investment Operations | ||||||
Net investment income (loss)A | (.23) | (.34) | (.35) | (.34) | (.27) | (.22) |
Net realized and unrealized gain (loss) | 7.64 | 1.97 | 1.58 | 5.69 | 3.74 | (.48) |
Total from investment operations | 7.41 | 1.63 | 1.23 | 5.35 | 3.47 | (.70) |
Distributions from net realized gain | (2.68) | (1.45) | (2.90) | (1.62) | (.16) | (.69) |
Total distributions | (2.68) | (1.45) | (2.90) | (1.62) | (.16) | (.69) |
Redemption fees added to paid in capital | – | – | – | –A,B | –A,B | .01A |
Net asset value, end of period | $27.80 | $23.07 | $22.89 | $24.56 | $20.83 | $17.52 |
Total ReturnC,D,E | 34.46% | 7.62% | 5.06% | 27.51% | 19.95% | (3.64)% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | 2.09%H | 2.13% | 2.09% | 2.07% | 2.11% | 2.16% |
Expenses net of fee waivers, if any | 2.09%H | 2.13% | 2.09% | 2.07% | 2.11% | 2.16% |
Expenses net of all reductions | 2.08%H | 2.12% | 2.08% | 2.06% | 2.10% | 2.14% |
Net investment income (loss) | (1.78)%H | (1.56)% | (1.61)% | (1.50)% | (1.43)% | (1.37)% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $93,771 | $77,850 | $96,449 | $139,375 | $102,669 | $73,731 |
Portfolio turnover rateI | 110%H | 126%J | 91%J | 106%J | 140%J | 143% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns for periods of less than one year are not annualized.
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
H Annualized
I Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
J 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
Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $28.07 | $27.27 | $28.59 | $23.84 | $19.82 | $21.20 |
Income from Investment Operations | ||||||
Net investment income (loss)A | (.11) | (.13) | (.15) | (.12) | (.09) | (.06) |
Net realized and unrealized gain (loss) | 9.44 | 2.38 | 1.87 | 6.57 | 4.27 | (.52) |
Total from investment operations | 9.33 | 2.25 | 1.72 | 6.45 | 4.18 | (.58) |
Distributions from net realized gain | (2.79) | (1.45) | (3.04) | (1.70) | (.16) | (.81) |
Total distributions | (2.79) | (1.45) | (3.04) | (1.70) | (.16) | (.81) |
Redemption fees added to paid in capital | – | – | – | –A,B | –A,B | .01A |
Net asset value, end of period | $34.61 | $28.07 | $27.27 | $28.59 | $23.84 | $19.82 |
Total ReturnC,D | 35.19% | 8.72% | 6.17% | 28.81% | 21.22% | (2.63)% |
Ratios to Average Net AssetsE,F | ||||||
Expenses before reductions | 1.03%G | 1.08% | 1.05% | 1.02% | 1.08% | 1.12% |
Expenses net of fee waivers, if any | 1.03%G | 1.08% | 1.05% | 1.02% | 1.08% | 1.12% |
Expenses net of all reductions | 1.02%G | 1.07% | 1.04% | 1.01% | 1.07% | 1.11% |
Net investment income (loss) | (.73)%G | (.52)% | (.57)% | (.45)% | (.40)% | (.33)% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $4,038,041 | $2,839,506 | $2,888,038 | $3,269,548 | $2,336,762 | $1,580,264 |
Portfolio turnover rateH | 110%G | 126%I | 91%I | 106%I | 140%I | 143% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns for periods of less than one year are not annualized.
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
G Annualized
H Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
I 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
Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $28.15 | $27.35 | $28.66 | $23.90 | $19.86 | $21.24 |
Income from Investment Operations | ||||||
Net investment income (loss)A | (.12) | (.14) | (.15) | (.12) | (.08) | (.05) |
Net realized and unrealized gain (loss) | 9.47 | 2.39 | 1.88 | 6.58 | 4.28 | (.53) |
Total from investment operations | 9.35 | 2.25 | 1.73 | 6.46 | 4.20 | (.58) |
Distributions from net realized gain | (2.79) | (1.45) | (3.04) | (1.70) | (.16) | (.81) |
Total distributions | (2.79) | (1.45) | (3.04) | (1.70) | (.16) | (.81) |
Redemption fees added to paid in capital | – | – | – | –A,B | –A,B | .01A |
Net asset value, end of period | $34.71 | $28.15 | $27.35 | $28.66 | $23.90 | $19.86 |
Total ReturnC,D | 35.15% | 8.70% | 6.18% | 28.78% | 21.28% | (2.62)% |
Ratios to Average Net AssetsE,F | ||||||
Expenses before reductions | 1.07%G | 1.11% | 1.06% | 1.03% | 1.06% | 1.09% |
Expenses net of fee waivers, if any | 1.06%G | 1.11% | 1.06% | 1.03% | 1.06% | 1.09% |
Expenses net of all reductions | 1.06%G | 1.10% | 1.06% | 1.02% | 1.05% | 1.07% |
Net investment income (loss) | (.76)%G | (.54)% | (.58)% | (.46)% | (.38)% | (.30)% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $730,621 | $540,553 | $590,311 | $678,576 | $390,032 | $163,696 |
Portfolio turnover rateH | 110%G | 126%I | 91%I | 106%I | 140%I | 143% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns for periods of less than one year are not annualized.
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
G Annualized
H Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
I 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
Six months ended (Unaudited) January 31, | Years endedJuly 31, | ||||
2021 | 2020 | 2019 | 2018 | 2017 A | |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $28.26 | $27.41 | $28.71 | $23.91 | $21.39 |
Income from Investment Operations | |||||
Net investment income (loss)B | (.10) | (.10) | (.11) | (.09) | (.05) |
Net realized and unrealized gain (loss) | 9.51 | 2.40 | 1.87 | 6.61 | 2.57 |
Total from investment operations | 9.41 | 2.30 | 1.76 | 6.52 | 2.52 |
Distributions from net realized gain | (2.80) | (1.45) | (3.06) | (1.72) | – |
Total distributions | (2.80) | (1.45) | (3.06) | (1.72) | – |
Redemption fees added to paid in capital | – | – | – | –B,C | –B,C |
Net asset value, end of period | $34.87 | $28.26 | $27.41 | $28.71 | $23.91 |
Total ReturnD,E | 35.25% | 8.87% | 6.29% | 29.02% | 11.78% |
Ratios to Average Net AssetsF,G | |||||
Expenses before reductions | .93%H | .97% | .92% | .89% | .90%H |
Expenses net of fee waivers, if any | .93%H | .96% | .92% | .89% | .90%H |
Expenses net of all reductions | .92%H | .95% | .92% | .88% | .89%H |
Net investment income (loss) | (.62)%H | (.40)% | (.44)% | (.32)% | (.44)%H |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $273,812 | $197,764 | $183,552 | $132,928 | $18,447 |
Portfolio turnover rateI | 110%H | 126%J | 91%J | 106%J | 140%H,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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
H Annualized
I Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
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 (Unaudited)
For the period ended January 31, 2021
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. Each class has exclusive voting rights with respect to matters that affect that class. 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 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 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 - Investment 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. Securities, including private placements or other restricted securities, for which observable inputs are not available are valued using alternate valuation approaches, including the market approach, the income approach and cost approach, and are categorized as Level 3 in the hierarchy. The market approach considers factors including the price of recent investments in the same or a similar security or financial metrics of comparable securities. The income approach considers factors including expected future cash flows, security specific risks and corresponding discount rates. The cost approach considers factors including the value of the security's underlying assets and liabilities.
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 | $ 126,926,130 | Market comparable | Enterprise value/Sales multiple (EV/S) | 2.1-2.2/2.1 | Increase |
Discount rate | 32.5%-69.1%/62.2% | Decrease | |||
Conversion ratio | 1.0 | Increase | |||
Market approach | Transaction price | $1.40-$17.29/$12.79 | 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 January 31, 2021, as well as a roll forward of Level 3 investments, is included at the end of the Fund's Schedule of Investments.
Foreign Currency. Certain Funds 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. 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.
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.
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 | $1,783,969,375 |
Gross unrealized depreciation | (75,921,756) |
Net unrealized appreciation (depreciation) | $1,708,047,619 |
Tax cost | $4,177,229,979 |
The Fund elected to defer to its next fiscal year approximately $12,523,414 of ordinary losses recognized during the period January 1, 2020 to July 31, 2020.
Restricted Securities (including Private Placements). The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, are noted in the table below.
Purchases ($) | Sales ($) | |
Fidelity Small Cap Growth Fund | 2,728,828,682 | 2,557,966,852 |
Prior Fiscal Year Unaffiliated Redemptions In-Kind. During the prior period, 1,198,281 shares of the Fund were redeemed in-kind for investments and cash with a value of $32,422,959. The Fund had a net realized gain of $9,910,437 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 LLC (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 .23% during the period. The group fee rate is based upon the monthly average net assets of a group of registered investment companies with which the investment adviser has management contracts. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of +/- .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of Small Cap Growth as compared to its benchmark index, the Russell 2000 Growth Index, over the same 36 month performance period. For the reporting period, the total annualized management fee rate, including the performance adjustment, was .85% 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 Company LLC (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% | $387,863 | $12,147 |
Class M | .25% | .25% | 205,500 | 310 |
Class C | .75% | .25% | 428,965 | 22,935 |
$1,022,328 | $35,392 |
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 | $40,405 |
Class M | 5,085 |
Class C(a) | 1,016 |
$46,506 |
(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 LLC (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(a) | |
Class A | $283,721 | .18 |
Class M | 77,993 | .19 |
Class C | 86,271 | .20 |
Small Cap Growth | 2,468,241 | .15 |
Class I | 566,595 | .18 |
Class Z | 50,599 | .04 |
$3,533,420 |
(a) Annualized
Accounting 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. For the period, the fees were equivalent to the following annualized rates:
% of Average Net Assets | |
Fidelity Small Cap Growth Fund | .02 |
Brokerage Commissions. A portion of portfolio transactions were placed 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 as follows:
Amount | |
Fidelity Small Cap Growth Fund | $92,814 |
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 LLC (FMR), or other affiliated entities of FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the Fund to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. 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 | |
Fidelity Small Cap Growth Fund | Borrower | $12,567,732 | .33% | $4,761 |
Interfund Trades. Funds 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, and amounted to $145,950,317 and $145,849,667, respectively.
Other. During the period, the investment adviser reimbursed the Fund for certain losses in the amount of $72,500.
6. Committed Line of Credit.
Certain Funds participate 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 participating funds have agreed to pay commitment fees on their pro-rata portion of the line of credit, which are reflected in Miscellaneous expenses on the Statement of Operations, and are listed below.
Amount | |
Fidelity Small Cap Growth Fund | $4,558 |
During the period, there were no borrowings on this line of credit.
7. Security Lending.
Funds lend portfolio securities from time to time in order to earn additional income. Lending agents are used, including National Financial Services (NFS), an affiliate of the investment adviser. Pursuant to a securities lending agreement, NFS will receive a fee, which is capped at 9.9% of a fund's daily lending revenue, for its services as lending agent. A fund may lend securities to certain qualified borrowers, including NFS. On the settlement date of the loan, a 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 a fund and any additional required collateral is delivered to a fund on the next business day. A 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, a fund may apply collateral received from the borrower against the obligation. A 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. Any loaned securities are identified as such in the Schedule of Investments, and the value of loaned securities and cash collateral at period end, as applicable, are presented in the 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. Affiliated security lending activity, if any, was as follows:
Total Security Lending Income Fees Paid to NFS | Security Lending Income From Securities Loaned to NFS | Value of Securities Loaned to NFS at Period End | |
Fidelity Small Cap Growth Fund | $57,655 | $5,704 | $– |
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. Any open loans, including accrued interest, at period end are presented under the caption "Notes payable" in the Statement of Assets and Liabilities, if applicable. Activity in this program during the period for which loans were outstanding was as follows:
Average Loan Balance | Weighted Average Interest Rate | Interest Expense | |
Fidelity Small Cap Growth Fund | $6,965,000 | .59% | $114 |
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 expenses. This amount totaled $229,795 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.
In addition, during the period the investment adviser or an affiliate reimbursed and/or waived a portion of fund-level operating expenses in the amount of $7,869.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended January 31, 2021 | Year ended July 31, 2020 | |
Distributions to shareholders | ||
Class A | $28,072,163 | $15,614,129 |
Class M | 7,663,523 | 4,255,045 |
Class C | 8,833,071 | 5,910,629 |
Small Cap Growth | 295,452,508 | 151,308,285 |
Class I | 54,275,270 | 30,684,941 |
Class Z | 19,994,596 | 9,991,803 |
Total | $414,291,131 | $217,764,832 |
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 | |
Six months ended January 31, 2021 | Year ended July 31, 2020 | Six months ended January 31, 2021 | Year ended July 31, 2020 | |
Class A | ||||
Shares sold | 1,251,995 | 1,796,708 | $38,240,479 | $43,999,208 |
Reinvestment of distributions | 992,952 | 624,197 | 27,768,422 | 15,459,513 |
Shares redeemed | (1,367,783) | (3,317,701) | (40,436,505) | (79,344,299) |
Net increase (decrease) | 877,164 | (896,796) | $25,572,396 | $(19,885,578) |
Class M | ||||
Shares sold | 240,917 | 324,349 | $7,101,692 | $7,533,494 |
Reinvestment of distributions | 283,607 | 177,347 | 7,574,791 | 4,224,131 |
Shares redeemed | (240,916) | (730,012) | (6,882,842) | (17,016,572) |
Net increase (decrease) | 283,608 | (228,316) | $7,793,641 | $(5,258,947) |
Class C | ||||
Shares sold | 234,980 | 292,659 | $6,104,466 | $6,119,973 |
Reinvestment of distributions | 368,546 | 267,451 | 8,764,064 | 5,778,310 |
Shares redeemed | (605,183) | (1,398,488) | (15,354,422) | (28,909,752) |
Net increase (decrease) | (1,657) | (838,378) | $(485,892) | $(17,011,469) |
Small Cap Growth | ||||
Shares sold | 19,344,010 | 23,920,724 | $622,192,086 | $595,471,617 |
Reinvestment of distributions | 9,508,156 | 5,544,742 | 282,245,288 | 144,309,689 |
Shares redeemed | (13,327,984) | (34,227,420)(a) | (419,455,912) | (855,432,691)(a) |
Net increase (decrease) | 15,524,182 | (4,761,954) | $484,981,462 | $(115,651,385) |
Class I | ||||
Shares sold | 3,644,438 | 4,983,369 | $114,679,238 | $126,413,853 |
Reinvestment of distributions | 1,777,184 | 1,151,125 | 52,852,239 | 30,047,788 |
Shares redeemed | (3,576,499) | (8,518,254)(a) | (112,872,973) | (218,079,633)(a) |
Net increase (decrease) | 1,845,123 | (2,383,760) | $54,658,504 | $(61,617,992) |
Class Z | ||||
Shares sold | 1,581,533 | 2,771,561 | $52,308,740 | $71,827,246 |
Reinvestment of distributions | 549,462 | 306,867 | 16,414,402 | 8,038,145 |
Shares redeemed | (1,276,683) | (2,777,073) | (40,754,031) | (71,697,811) |
Net increase (decrease) | 854,312 | 301,355 | $27,969,111 | $8,167,580 |
(a) 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.
13. Coronavirus (COVID-19) Pandemic.
An outbreak of COVID-19 first detected in China during December 2019 has since spread globally and was declared a pandemic by the World Health Organization during March 2020. Developments that disrupt global economies and financial markets, such as the COVID-19 pandemic, may magnify factors that affect the Fund's performance.
Shareholder Expense Example
As a shareholder, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or redemption proceeds, as applicable and (2) ongoing costs, which generally include 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 a fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2020 to January 31, 2021).
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 for a class/Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. If any fund is a shareholder of any underlying mutual funds or exchange-traded funds (ETFs) (the Underlying Funds), such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses incurred presented in the table. These fees and expenses are not included in the 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 actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the 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. If any fund is a shareholder of any Underlying Funds, such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses as presented in the table. These fees and expenses are not included in the 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 August 1, 2020 | Ending Account Value January 31, 2021 | Expenses Paid During Period-B August 1, 2020 to January 31, 2021 | |
Fidelity Small Cap Growth Fund | ||||
Class A | 1.32% | |||
Actual | $1,000.00 | $1,349.90 | $7.82 | |
Hypothetical-C | $1,000.00 | $1,018.55 | $6.72 | |
Class M | 1.58% | |||
Actual | $1,000.00 | $1,347.90 | $9.35 | |
Hypothetical-C | $1,000.00 | $1,017.24 | $8.03 | |
Class C | 2.09% | |||
Actual | $1,000.00 | $1,344.60 | $12.35 | |
Hypothetical-C | $1,000.00 | $1,014.67 | $10.61 | |
Small Cap Growth | 1.03% | |||
Actual | $1,000.00 | $1,351.90 | $6.11 | |
Hypothetical-C | $1,000.00 | $1,020.01 | $5.24 | |
Class I | 1.06% | |||
Actual | $1,000.00 | $1,351.50 | $6.28 | |
Hypothetical-C | $1,000.00 | $1,019.86 | $5.40 | |
Class Z | .93% | |||
Actual | $1,000.00 | $1,352.50 | $5.51 | |
Hypothetical-C | $1,000.00 | $1,020.52 | $4.74 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/ 365 (to reflect the one-half year period). The fees and expenses of any Underlying Funds are not included in each annualized expense ratio.
C 5% return per year before expenses
Board Approval of Investment Advisory Contracts
Fidelity Small Cap Growth Fund
At its January 2021 meeting, the Board of Trustees, including the Independent Trustees (together, the Board), voted to continue the management contract with Fidelity Management & Research Company LLC (FMR), and the sub-advisory agreements and sub-subadvisory agreements, in each case, where applicable (together, the Advisory Contracts) for the fund for four months from February 1, 2021 through May 31, 2021, in connection with changes to the Board's meeting calendar.The Board considered that the approval of the fund's Advisory Contracts will not result in any changes in (i) the investment process or strategies employed in the management of the fund's assets; (ii) the fees and expenses paid by shareholders; (iii) the nature, extent or quality of services provided under the fund's Advisory Contracts; or (iv) the day-to-day management of the fund or the persons primarily responsible for such management. The Board also considered that since its last approval of the fund's Advisory Contracts, FMR had provided additional information on the fund in support of the annual contract renewal process, including competitive analyses on total expenses and management fees and in-depth reviews of fund performance and fund profitability information. The Board also considered the findings of certain ad hoc committees that had been previously formed to discuss matters relevant to all of the Fidelity funds, including economies of scale, fall-out benefits and retail vs. institutional funds. The Board concluded that the fund's Advisory Contracts are fair and reasonable, and that the fund's Advisory Contracts should be renewed, without modification, through May 31, 2021, with the understanding that the Board will consider the annual renewal for a full one year period in May 2021.In connection with its consideration of future renewals of the fund's Advisory Contracts, the Board will consider: (i) the nature, extent and quality of services provided to the funds, including shareholder and administrative services and investment performance; (ii) the competitiveness of the management fee and total expenses for the fund; (iii) the costs of the services and profitability, including the revenues earned and the expenses incurred in conducting the business of developing, marketing, distributing, managing, administering, and servicing the fund and its shareholders, to the extent applicable; and (iv) whether there have been economies of scale in respect of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is the potential for realization of any further economies.Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board ultimately concluded that the fund's management fee structure is fair and reasonable, and that the continuation of the fund's Advisory Contracts should be approved for four months from February 1, 2021 through May 31, 2021.SCP-SANN-0321
1.803700.116
Fidelity® Small Cap Value Fund
Semi-Annual Report
January 31, 2021
Includes Fidelity and Fidelity Advisor share classes
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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.
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. © 2021 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.
Note to Shareholders:
Early in 2020, the outbreak and spread of a new coronavirus emerged as a public health emergency that had a major influence on financial markets, primarily based on its impact on the global economy and the outlook for corporate earnings. The virus causes a respiratory disease known as COVID-19. On March 11, the World Health Organization declared the COVID-19 outbreak a pandemic, citing sustained risk of further global spread.
In the weeks following, as the crisis worsened, we witnessed an escalating human tragedy with wide-scale social and economic consequences from coronavirus-containment measures. The outbreak of COVID-19 prompted a number of measures to limit the spread, including travel and border restrictions, quarantines, and restrictions on large gatherings. In turn, these resulted in lower consumer activity, diminished demand for a wide range of products and services, disruption in manufacturing and supply chains, and – given the wide variability in outcomes regarding the outbreak – significant market uncertainty and volatility. Amid the turmoil, global governments and central banks took unprecedented action to help support consumers, businesses, and the broader economies, and to limit disruption to financial systems.
The situation continues to unfold, and the extent and duration of its impact on financial markets and the economy remain highly uncertain. Extreme events such as the coronavirus crisis are “exogenous shocks” that can have significant adverse effects on mutual funds and their investments. Although multiple asset classes may be affected by market disruption, the duration and impact may not be the same for all types of assets.
Fidelity is committed to helping you stay informed amid news about COVID-19 and during increased market volatility, and we’re taking extra steps to be responsive to customer needs. We encourage you to visit our websites, where we offer ongoing updates, commentary, and analysis on the markets and our funds.
Investment Summary (Unaudited)
Top Ten Stocks as of January 31, 2021
% of fund's net assets | |
Flagstar Bancorp, Inc. | 2.1 |
Signature Bank | 2.0 |
Western Alliance Bancorp. | 1.9 |
ECN Capital Corp. | 1.8 |
International Game Technology PLC | 1.8 |
ITT, Inc. | 1.8 |
Xperi Holding Corp. | 1.8 |
RLJ Lodging Trust | 1.8 |
Realogy Holdings Corp. | 1.8 |
SPX Flow, Inc. | 1.7 |
18.5 |
Top Five Market Sectors as of January 31, 2021
% of fund's net assets | |
Financials | 30.2 |
Industrials | 18.7 |
Consumer Discretionary | 13.7 |
Information Technology | 8.3 |
Materials | 7.8 |
Asset Allocation (% of fund's net assets)
As of January 31, 2021* | ||
Stocks | 99.6% | |
Short-Term Investments and Net Other Assets (Liabilities) | 0.4% |
* Foreign investments - 16.3%
Schedule of Investments January 31, 2021 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.6% | |||
Shares | Value | ||
COMMUNICATION SERVICES - 2.9% | |||
Entertainment - 1.1% | |||
Cinemark Holdings, Inc. (a) | 1,325,500 | $26,828,120 | |
Media - 1.8% | |||
Cogeco Communications, Inc. | 145,400 | 12,392,685 | |
Nexstar Broadcasting Group, Inc. Class A | 289,500 | 32,907,465 | |
45,300,150 | |||
TOTAL COMMUNICATION SERVICES | 72,128,270 | ||
CONSUMER DISCRETIONARY - 13.7% | |||
Auto Components - 0.4% | |||
Lear Corp. | 60,100 | 9,060,676 | |
Hotels, Restaurants & Leisure - 3.5% | |||
Hilton Grand Vacations, Inc. (b) | 1,386,300 | 41,200,836 | |
International Game Technology PLC | 2,864,000 | 46,139,040 | |
87,339,876 | |||
Household Durables - 2.6% | |||
KB Home | 753,300 | 31,367,412 | |
TRI Pointe Homes, Inc. (b) | 1,733,600 | 35,018,720 | |
66,386,132 | |||
Specialty Retail - 2.3% | |||
Bed Bath & Beyond, Inc. (a) | 172,500 | 6,094,425 | |
Rent-A-Center, Inc. | 889,800 | 38,528,340 | |
Williams-Sonoma, Inc. | 100,100 | 12,904,892 | |
57,527,657 | |||
Textiles, Apparel & Luxury Goods - 4.9% | |||
Crocs, Inc. (b) | 369,000 | 25,837,380 | |
Oxford Industries, Inc. | 316,500 | 20,648,460 | |
PVH Corp. | 452,700 | 38,597,202 | |
Tapestry, Inc. | 1,207,800 | 38,190,636 | |
123,273,678 | |||
TOTAL CONSUMER DISCRETIONARY | 343,588,019 | ||
CONSUMER STAPLES - 1.6% | |||
Food & Staples Retailing - 1.6% | |||
U.S. Foods Holding Corp. (b) | 1,298,000 | 40,225,020 | |
ENERGY - 5.0% | |||
Energy Equipment & Services - 1.6% | |||
TechnipFMC PLC | 3,778,500 | 40,392,165 | |
Oil, Gas & Consumable Fuels - 3.4% | |||
Brigham Minerals, Inc. Class A | 1,840,500 | 24,644,295 | |
BW Energy Ltd. | 8,925,996 | 25,197,516 | |
Euronav NV (a) | 2,035,400 | 16,079,660 | |
Renewable Energy Group, Inc. (a)(b) | 229,900 | 20,599,040 | |
86,520,511 | |||
TOTAL ENERGY | 126,912,676 | ||
FINANCIALS - 30.2% | |||
Banks - 15.2% | |||
BankUnited, Inc. | 372,001 | 12,889,835 | |
Camden National Corp. | 187,830 | 7,053,017 | |
Comerica, Inc. | 553,300 | 31,648,760 | |
Cullen/Frost Bankers, Inc. | 245,200 | 22,617,248 | |
Eastern Bankshares, Inc. | 2,418,800 | 38,555,672 | |
First Citizens Bancshares, Inc. | 13,624 | 8,119,768 | |
First Foundation, Inc. | 1,596,600 | 32,347,116 | |
Signature Bank | 308,800 | 51,010,672 | |
Sterling Bancorp | 2,157,300 | 39,823,758 | |
Synovus Financial Corp. | 976,700 | 36,333,240 | |
The Bank of NT Butterfield & Son Ltd. | 515,727 | 15,683,258 | |
Trico Bancshares | 1,060,697 | 39,563,998 | |
Western Alliance Bancorp. | 699,700 | 47,705,546 | |
383,351,888 | |||
Capital Markets - 1.8% | |||
AllianceBernstein Holding LP | 888,200 | 31,397,870 | |
Lazard Ltd. Class A | 323,300 | 13,319,960 | |
44,717,830 | |||
Consumer Finance - 1.5% | |||
Encore Capital Group, Inc. (b) | 1,250,200 | 37,130,940 | |
Diversified Financial Services - 1.8% | |||
ECN Capital Corp. | 8,761,851 | 46,592,834 | |
Insurance - 7.8% | |||
Assurant, Inc. | 202,300 | 27,405,581 | |
Axis Capital Holdings Ltd. | 744,600 | 34,177,140 | |
Enstar Group Ltd. (b) | 200,596 | 40,161,325 | |
First American Financial Corp. | 270,275 | 14,132,680 | |
Old Republic International Corp. | 1,707,200 | 30,900,320 | |
Primerica, Inc. | 108,200 | 15,073,342 | |
Reinsurance Group of America, Inc. | 320,400 | 33,658,020 | |
195,508,408 | |||
Thrifts & Mortgage Finance - 2.1% | |||
Flagstar Bancorp, Inc. | 1,236,400 | 52,979,740 | |
TOTAL FINANCIALS | 760,281,640 | ||
HEALTH CARE - 3.0% | |||
Biotechnology - 1.4% | |||
Novavax, Inc. (a)(b) | 161,900 | 35,770,186 | |
Health Care Providers & Services - 0.3% | |||
Premier, Inc. | 173,477 | 5,875,666 | |
Health Care Technology - 0.5% | |||
Cegedim SA (b) | 444,983 | 12,690,214 | |
Pharmaceuticals - 0.8% | |||
Jazz Pharmaceuticals PLC (b) | 133,600 | 20,774,800 | |
TOTAL HEALTH CARE | 75,110,866 | ||
INDUSTRIALS - 18.7% | |||
Building Products - 3.3% | |||
American Woodmark Corp. (b) | 176,800 | 15,294,968 | |
Jeld-Wen Holding, Inc. (b) | 1,623,559 | 42,196,298 | |
Owens Corning | 313,100 | 24,296,560 | |
81,787,826 | |||
Commercial Services & Supplies - 2.2% | |||
HNI Corp. | 470,000 | 15,162,200 | |
Knoll, Inc. (c) | 2,728,624 | 40,820,215 | |
55,982,415 | |||
Construction & Engineering - 1.4% | |||
AECOM (b) | 336,400 | 16,853,640 | |
Arcosa, Inc. | 336,600 | 18,778,914 | |
35,632,554 | |||
Electrical Equipment - 1.9% | |||
Atkore International Group, Inc. (b) | 411,100 | 18,236,396 | |
Regal Beloit Corp. | 237,268 | 29,772,389 | |
48,008,785 | |||
Machinery - 5.7% | |||
Crane Co. | 467,300 | 35,365,264 | |
ITT, Inc. | 610,300 | 45,595,513 | |
Luxfer Holdings PLC sponsored | 1,191,600 | 19,625,652 | |
SPX Flow, Inc. (b) | 811,300 | 42,974,561 | |
143,560,990 | |||
Professional Services - 3.0% | |||
Kelly Services, Inc. Class A (non-vtg.) | 1,834,491 | 35,809,264 | |
Manpower, Inc. | 456,600 | 40,381,704 | |
76,190,968 | |||
Road & Rail - 0.9% | |||
ArcBest Corp. | 501,400 | 23,239,890 | |
Trading Companies & Distributors - 0.3% | |||
Beacon Roofing Supply, Inc. (b) | 178,000 | 7,079,060 | |
TOTAL INDUSTRIALS | 471,482,488 | ||
INFORMATION TECHNOLOGY - 8.3% | |||
Electronic Equipment & Components - 4.4% | |||
Avnet, Inc. | 716,000 | 25,281,960 | |
Insight Enterprises, Inc. (b) | 254,400 | 19,359,840 | |
Jabil, Inc. | 793,800 | 32,839,506 | |
SYNNEX Corp. | 87,160 | 7,113,999 | |
TTM Technologies, Inc. (a)(b) | 2,021,600 | 27,109,656 | |
111,704,961 | |||
IT Services - 1.8% | |||
Concentrix Corp. (b) | 131,760 | 14,087,779 | |
Perspecta, Inc. | 639,800 | 18,522,210 | |
Unisys Corp. (b) | 517,800 | 12,370,242 | |
44,980,231 | |||
Semiconductors & Semiconductor Equipment - 0.3% | |||
Kulicke & Soffa Industries, Inc. | 217,100 | 7,743,957 | |
Software - 1.8% | |||
Xperi Holding Corp. | 2,358,101 | 45,417,025 | |
TOTAL INFORMATION TECHNOLOGY | 209,846,174 | ||
MATERIALS - 7.8% | |||
Chemicals - 2.2% | |||
Tronox Holdings PLC | 881,600 | 13,532,560 | |
Valvoline, Inc. | 1,395,800 | 33,136,292 | |
Westlake Chemical Corp. | 128,100 | 9,794,526 | |
56,463,378 | |||
Construction Materials - 0.8% | |||
Eagle Materials, Inc. | 180,200 | 19,827,406 | |
Containers & Packaging - 3.7% | |||
Ardagh Group SA | 926,244 | 15,746,148 | |
O-I Glass, Inc. | 3,390,100 | 42,850,864 | |
WestRock Co. | 822,100 | 34,059,603 | |
92,656,615 | |||
Metals & Mining - 1.1% | |||
Commercial Metals Co. | 1,345,400 | 26,490,926 | |
TOTAL MATERIALS | 195,438,325 | ||
REAL ESTATE - 7.2% | |||
Equity Real Estate Investment Trusts (REITs) - 2.2% | |||
Corporate Office Properties Trust (SBI) | 159,600 | 4,192,692 | |
Equity Commonwealth | 185,400 | 5,285,754 | |
RLJ Lodging Trust | 3,512,300 | 45,343,793 | |
54,822,239 | |||
Real Estate Management & Development - 5.0% | |||
DIC Asset AG | 2,532,064 | 42,834,640 | |
Jones Lang LaSalle, Inc. (b) | 262,400 | 38,365,504 | |
Realogy Holdings Corp. (b) | 3,083,900 | 43,791,380 | |
124,991,524 | |||
TOTAL REAL ESTATE | 179,813,763 | ||
UTILITIES - 1.2% | |||
Electric Utilities - 0.6% | |||
Portland General Electric Co. | 331,900 | 14,036,051 | |
Independent Power and Renewable Electricity Producers - 0.6% | |||
Clearway Energy, Inc. Class C | 526,400 | 16,307,872 | |
TOTAL UTILITIES | 30,343,923 | ||
TOTAL COMMON STOCKS | |||
(Cost $1,921,815,861) | 2,505,171,164 | ||
Money Market Funds - 2.9% | |||
Fidelity Cash Central Fund 0.09% (d) | 16,277,014 | 16,280,270 | |
Fidelity Securities Lending Cash Central Fund 0.09% (d)(e) | 57,489,058 | 57,494,807 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $73,775,077) | 73,775,077 | ||
TOTAL INVESTMENT IN SECURITIES - 102.5% | |||
(Cost $1,995,590,938) | 2,578,946,241 | ||
NET OTHER ASSETS (LIABILITIES) - (2.5)% | (63,945,151) | ||
NET ASSETS - 100% | $2,515,001,090 |
Legend
(a) Security or a portion of the security is on loan at period end.
(b) Non-income producing
(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 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 | $4,730 |
Fidelity Securities Lending Cash Central Fund | 54,514 |
Total | $59,244 |
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 |
Knoll, Inc. | $8,374,992 | $28,420,800 | $-- | $215,509 | $-- | $4,024,423 | $40,820,215 |
Total | $8,374,992 | $28,420,800 | $-- | $215,509 | $-- | $4,024,423 | $40,820,215 |
Investment Valuation
The following is a summary of the inputs used, as of January 31, 2021, 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 | $72,128,270 | $72,128,270 | $-- | $-- |
Consumer Discretionary | 343,588,019 | 343,588,019 | -- | -- |
Consumer Staples | 40,225,020 | 40,225,020 | -- | -- |
Energy | 126,912,676 | 126,912,676 | -- | -- |
Financials | 760,281,640 | 760,281,640 | -- | -- |
Health Care | 75,110,866 | 75,110,866 | -- | -- |
Industrials | 471,482,488 | 471,482,488 | -- | -- |
Information Technology | 209,846,174 | 209,846,174 | -- | -- |
Materials | 195,438,325 | 195,438,325 | -- | -- |
Real Estate | 179,813,763 | 179,813,763 | -- | -- |
Utilities | 30,343,923 | 30,343,923 | -- | -- |
Money Market Funds | 73,775,077 | 73,775,077 | -- | -- |
Total Investments in Securities: | $2,578,946,241 | $2,578,946,241 | $-- | $-- |
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 | 83.7% |
United Kingdom | 4.7% |
Bermuda | 4.1% |
Canada | 2.3% |
Germany | 1.7% |
Norway | 1.0% |
Others (Individually Less Than 1%) | 2.5% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
January 31, 2021 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $57,757,153) — See accompanying schedule: Unaffiliated issuers (cost $1,884,709,115) | $2,464,350,949 | |
Fidelity Central Funds (cost $73,775,077) | 73,775,077 | |
Other affiliated issuers (cost $37,106,746) | 40,820,215 | |
Total Investment in Securities (cost $1,995,590,938) | $2,578,946,241 | |
Foreign currency held at value (cost $1,048,883) | 1,049,669 | |
Receivable for investments sold | 6,475,669 | |
Receivable for fund shares sold | 13,483,409 | |
Dividends receivable | 1,172,490 | |
Distributions receivable from Fidelity Central Funds | 14,335 | |
Prepaid expenses | 1,841 | |
Other receivables | 109,186 | |
Total assets | 2,601,252,840 | |
Liabilities | ||
Payable to custodian bank | $3,358,958 | |
Payable for investments purchased | 19,540,752 | |
Payable for fund shares redeemed | 3,892,689 | |
Accrued management fee | 1,462,930 | |
Distribution and service plan fees payable | 70,867 | |
Other affiliated payables | 387,699 | |
Other payables and accrued expenses | 48,630 | |
Collateral on securities loaned | 57,489,225 | |
Total liabilities | 86,251,750 | |
Net Assets | $2,515,001,090 | |
Net Assets consist of: | ||
Paid in capital | $2,008,131,329 | |
Total accumulated earnings (loss) | 506,869,761 | |
Net Assets | $2,515,001,090 | |
Net Asset Value and Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($144,490,674 ÷ 8,461,375 shares)(a) | $17.08 | |
Maximum offering price per share (100/94.25 of $17.08) | $18.12 | |
Class M: | ||
Net Asset Value and redemption price per share ($52,093,148 ÷ 3,154,338 shares)(a) | $16.51 | |
Maximum offering price per share (100/96.50 of $16.51) | $17.11 | |
Class C: | ||
Net Asset Value and offering price per share ($20,872,234 ÷ 1,403,228 shares)(a) | $14.87 | |
Small Cap Value: | ||
Net Asset Value, offering price and redemption price per share ($1,728,667,155 ÷ 98,750,219 shares) | $17.51 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($402,043,771 ÷ 22,963,171 shares) | $17.51 | |
Class Z: | ||
Net Asset Value, offering price and redemption price per share ($166,834,108 ÷ 9,534,739 shares) | $17.50 |
(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
Six months ended January 31, 2021 (Unaudited) | ||
Investment Income | ||
Dividends (including $215,509 earned from other affiliated issuers) | $15,735,115 | |
Income from Fidelity Central Funds (including $54,514 from security lending) | 59,244 | |
Total income | 15,794,359 | |
Expenses | ||
Management fee | ||
Basic fee | $6,909,871 | |
Performance adjustment | 682,375 | |
Transfer agent fees | 1,789,507 | |
Distribution and service plan fees | 343,098 | |
Accounting fees | 308,516 | |
Custodian fees and expenses | 20,535 | |
Independent trustees' fees and expenses | 4,513 | |
Registration fees | 111,416 | |
Audit | 31,214 | |
Legal | 2,155 | |
Interest | 1,134 | |
Miscellaneous | 17,108 | |
Total expenses before reductions | 10,221,442 | |
Expense reductions | (181,408) | |
Total expenses after reductions | 10,040,034 | |
Net investment income (loss) | 5,754,325 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 169,252,820 | |
Fidelity Central Funds | (1,938) | |
Foreign currency transactions | 54,335 | |
Total net realized gain (loss) | 169,305,217 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 483,990,534 | |
Affiliated issuers | 4,024,423 | |
Assets and liabilities in foreign currencies | 3,853 | |
Total change in net unrealized appreciation (depreciation) | 488,018,810 | |
Net gain (loss) | 657,324,027 | |
Net increase (decrease) in net assets resulting from operations | $663,078,352 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended January 31, 2021 (Unaudited) | Year ended July 31, 2020 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $5,754,325 | $19,670,757 |
Net realized gain (loss) | 169,305,217 | (223,997,018) |
Change in net unrealized appreciation (depreciation) | 488,018,810 | (47,678,663) |
Net increase (decrease) in net assets resulting from operations | 663,078,352 | (252,004,924) |
Distributions to shareholders | (10,614,927) | (73,266,231) |
Share transactions - net increase (decrease) | 169,252,448 | (66,967,350) |
Total increase (decrease) in net assets | 821,715,873 | (392,238,505) |
Net Assets | ||
Beginning of period | 1,693,285,217 | 2,085,523,722 |
End of period | $2,515,001,090 | $1,693,285,217 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Small Cap Value Fund Class A
Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $12.33 | $14.68 | $20.33 | $19.05 | $17.92 | $19.14 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .02 | .11 | .14B | .10C | .20D | .07 |
Net realized and unrealized gain (loss) | 4.78 | (1.96) | (.98) | 1.87 | 2.23 | .56 |
Total from investment operations | 4.80 | (1.85) | (.84) | 1.97 | 2.43 | .63 |
Distributions from net investment income | (.05) | (.09) | (.10) | (.17) | (.10) | (.11) |
Distributions from net realized gain | – | (.41) | (4.71) | (.52) | (1.20) | (1.75) |
Total distributions | (.05) | (.50) | (4.81) | (.69) | (1.30) | (1.85)E |
Redemption fees added to paid in capitalA | – | – | – | –F | –F | –F |
Net asset value, end of period | $17.08 | $12.33 | $14.68 | $20.33 | $19.05 | $17.92 |
Total ReturnG,H,I | 38.94% | (13.09)% | (4.85)% | 10.65% | 14.61% | 4.07% |
Ratios to Average Net AssetsJ,K | ||||||
Expenses before reductions | 1.25%L | 1.22% | .92% | 1.18% | 1.24% | 1.41% |
Expenses net of fee waivers, if any | 1.25%L | 1.22% | .92% | 1.17% | 1.24% | 1.41% |
Expenses net of all reductions | 1.23%L | 1.20% | .91% | 1.17% | 1.24% | 1.41% |
Net investment income (loss) | .33%L | .84% | .91%B | .49%C | 1.10%D | .43% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $144,491 | $101,675 | $129,115 | $162,572 | $184,306 | $218,364 |
Portfolio turnover rateM | 78%L | 109% | 79% | 55% | 26% | 33% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.03 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been .71%.
C Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.04 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been .29%.
D Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.09 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been .61%.
E Total distributions per share do not sum due to rounding.
F Amount represents less than $.005 per share.
G Total returns for periods of less than one year are not annualized.
H Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
I Total returns do not include the effect of the sales charges.
J Fees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
K Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
L Annualized
M Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
See accompanying notes which are an integral part of the financial statements.
Fidelity Small Cap Value Fund Class M
Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $11.93 | $14.22 | $19.84 | $18.61 | $17.54 | $18.78 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .01 | .08 | .10B | .05C | .15D | .03 |
Net realized and unrealized gain (loss) | 4.61 | (1.91) | (.96) | 1.82 | 2.18 | .54 |
Total from investment operations | 4.62 | (1.83) | (.86) | 1.87 | 2.33 | .57 |
Distributions from net investment income | (.04) | (.05) | (.05) | (.13) | (.07) | (.06) |
Distributions from net realized gain | – | (.41) | (4.71) | (.52) | (1.20) | (1.75) |
Total distributions | (.04) | (.46) | (4.76) | (.64)E | (1.26)E | (1.81) |
Redemption fees added to paid in capitalA | – | – | – | –F | –F | –F |
Net asset value, end of period | $16.51 | $11.93 | $14.22 | $19.84 | $18.61 | $17.54 |
Total ReturnG,H,I | 38.71% | (13.29)% | (5.08)% | 10.39% | 14.35% | 3.76% |
Ratios to Average Net AssetsJ,K | ||||||
Expenses before reductions | 1.49%L | 1.46% | 1.17% | 1.42% | 1.49% | 1.66% |
Expenses net of fee waivers, if any | 1.49%L | 1.46% | 1.17% | 1.42% | 1.49% | 1.66% |
Expenses net of all reductions | 1.47%L | 1.44% | 1.16% | 1.41% | 1.49% | 1.65% |
Net investment income (loss) | .08%L | .59% | .66%B | .25%C | .86%D | .19% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $52,093 | $38,049 | $53,612 | $69,380 | $78,852 | $82,337 |
Portfolio turnover rateM | 78%L | 109% | 79% | 55% | 26% | 33% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.03 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been .46%.
C Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.04 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been .04%.
D Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.09 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been .36%.
E Total distributions per share do not sum due to rounding.
F Amount represents less than $.005 per share.
G Total returns for periods of less than one year are not annualized.
H Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
I Total returns do not include the effect of the sales charges.
J Fees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
K Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
L Annualized
M Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
See accompanying notes which are an integral part of the financial statements.
Fidelity Small Cap Value Fund Class C
Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $10.76 | $12.91 | $18.50 | $17.39 | $16.52 | $17.82 |
Income from Investment Operations | ||||||
Net investment income (loss)A | (.03) | .01 | .02B | (.05)C | .06D | (.05) |
Net realized and unrealized gain (loss) | 4.16 | (1.72) | (.89) | 1.71 | 2.04 | .50 |
Total from investment operations | 4.13 | (1.71) | (.87) | 1.66 | 2.10 | .45 |
Distributions from net investment income | (.02) | (.03) | (.02) | (.03) | (.04) | – |
Distributions from net realized gain | – | (.41) | (4.71) | (.52) | (1.20) | (1.75) |
Total distributions | (.02) | (.44) | (4.72)E | (.55) | (1.23)E | (1.75) |
Redemption fees added to paid in capitalA | – | – | – | –F | –F | –F |
Net asset value, end of period | $14.87 | $10.76 | $12.91 | $18.50 | $17.39 | $16.52 |
Total ReturnG,H,I | 38.38% | (13.74)% | (5.63)% | 9.84% | 13.79% | 3.20% |
Ratios to Average Net AssetsJ,K | ||||||
Expenses before reductions | 2.02%L | 2.00% | 1.68% | 1.93% | 2.00% | 2.18% |
Expenses net of fee waivers, if any | 2.02%L | 1.99% | 1.68% | 1.93% | 2.00% | 2.17% |
Expenses net of all reductions | 2.01%L | 1.97% | 1.67% | 1.92% | 2.00% | 2.17% |
Net investment income (loss) | (.45)%L | .06% | .15%B | (.26)%C | .35%D | (.33)% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $20,872 | $13,748 | $22,187 | $44,396 | $52,227 | $57,231 |
Portfolio turnover rateM | 78%L | 109% | 79% | 55% | 26% | 33% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.03 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been (.05)%.
C Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.04 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been (.47)%.
D Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.08 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been (.15)%.
E Total distributions per share do not sum due to rounding.
F Amount represents less than $.005 per share.
G Total returns for periods of less than one year are not annualized.
H Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
I Total returns do not include the effect of the contingent deferred sales charge.
J Fees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
K Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
L Annualized
M Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
See accompanying notes which are an integral part of the financial statements.
Fidelity Small Cap Value Fund
Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $12.64 | $15.04 | $20.71 | $19.41 | $18.22 | $19.45 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .04 | .15 | .18B | .15C | .25D | .12 |
Net realized and unrealized gain (loss) | 4.91 | (2.01) | (1.00) | 1.89 | 2.28 | .55 |
Total from investment operations | 4.95 | (1.86) | (.82) | 2.04 | 2.53 | .67 |
Distributions from net investment income | (.08) | (.12) | (.15) | (.22) | (.15) | (.15) |
Distributions from net realized gain | – | (.41) | (4.71) | (.52) | (1.20) | (1.75) |
Total distributions | (.08) | (.54) | (4.85) | (.74) | (1.34) | (1.90) |
Redemption fees added to paid in capitalA | – | – | – | –E | –E | –E |
Net asset value, end of period | $17.51 | $12.64 | $15.04 | $20.71 | $19.41 | $18.22 |
Total ReturnF,G | 39.20% | (12.88)% | (4.58)% | 10.88% | 14.99% | 4.23% |
Ratios to Average Net AssetsH,I | ||||||
Expenses before reductions | .98%J | .96% | .66% | .91% | .99% | 1.18% |
Expenses net of fee waivers, if any | .98%J | .96% | .66% | .91% | .99% | 1.18% |
Expenses net of all reductions | .97%J | .94% | .64% | .91% | .99% | 1.17% |
Net investment income (loss) | .59%J | 1.10% | 1.17%B | .76%C | 1.36%D | .67% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $1,728,667 | $1,231,427 | $1,611,032 | $2,052,664 | $2,637,843 | $2,460,714 |
Portfolio turnover rateK | 78%J | 109% | 79% | 55% | 26% | 33% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.03 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been .98%.
C Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.04 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been .55%.
D Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.09 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been .86%.
E Amount represents less than $.005 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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
J Annualized
K Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
See accompanying notes which are an integral part of the financial statements.
Fidelity Small Cap Value Fund Class I
Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $12.65 | $15.04 | $20.72 | $19.41 | $18.23 | $19.45 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .05 | .15 | .18B | .15C | .25D | .12 |
Net realized and unrealized gain (loss) | 4.89 | (2.01) | (1.01) | 1.90 | 2.28 | .56 |
Total from investment operations | 4.94 | (1.86) | (.83) | 2.05 | 2.53 | .68 |
Distributions from net investment income | (.08) | (.12) | (.15) | (.22) | (.15) | (.16) |
Distributions from net realized gain | – | (.41) | (4.71) | (.52) | (1.20) | (1.75) |
Total distributions | (.08) | (.53) | (4.85) | (.74) | (1.35) | (1.90) |
Redemption fees added to paid in capitalA | – | – | – | –E | –E | –E |
Net asset value, end of period | $17.51 | $12.65 | $15.04 | $20.72 | $19.41 | $18.23 |
Total ReturnF,G | 39.13% | (12.82)% | (4.63)% | 10.93% | 14.96% | 4.31% |
Ratios to Average Net AssetsH,I | ||||||
Expenses before reductions | .97%J | .95% | .66% | .91% | .98% | 1.14% |
Expenses net of fee waivers, if any | .97%J | .95% | .66% | .91% | .97% | 1.14% |
Expenses net of all reductions | .96%J | .93% | .65% | .90% | .97% | 1.14% |
Net investment income (loss) | .60%J | 1.10% | 1.17%B | .76%C | 1.37%D | .70% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $402,044 | $214,538 | $243,571 | $459,332 | $466,730 | $389,928 |
Portfolio turnover rateK | 78%J | 109% | 79% | 55% | 26% | 33% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.03 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been .97%.
C Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.04 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been .55%.
D Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.09 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been .88%.
E Amount represents less than $.005 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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
J Annualized
K Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
See accompanying notes which are an integral part of the financial statements.
Fidelity Small Cap Value Fund Class Z
Six months ended (Unaudited) January 31, | Years endedJuly 31, | ||
2021 | 2020 | 2019 A | |
Selected Per–Share Data | |||
Net asset value, beginning of period | $12.65 | $15.05 | $16.90 |
Income from Investment Operations | |||
Net investment income (loss)B | .06 | .17 | (.08)C |
Net realized and unrealized gain (loss) | 4.89 | (2.01) | (.66) |
Total from investment operations | 4.95 | (1.84) | (.74) |
Distributions from net investment income | (.10) | (.15) | (.09) |
Distributions from net realized gain | – | (.41) | (1.02) |
Total distributions | (.10) | (.56) | (1.11) |
Net asset value, end of period | $17.50 | $12.65 | $15.05 |
Total ReturnD,E | 39.22% | (12.73)% | (3.75)% |
Ratios to Average Net AssetsF,G | |||
Expenses before reductions | .84%H | .81% | .52%H |
Expenses net of fee waivers, if any | .84%H | .81% | .52%H |
Expenses net of all reductions | .82%H | .79% | .51%H |
Net investment income (loss) | .73%H | 1.25% | (.63)%C,H |
Supplemental Data | |||
Net assets, end of period (000 omitted) | $166,834 | $93,849 | $26,006 |
Portfolio turnover rateI | 78%H | 109% | 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 one or more large, non-recurring dividend(s) which amounted to $.02 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been (.82) %.
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
H Annualized
I Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended January 31, 2021
1. Organization.
Fidelity Small Cap Value Fund (the Fund) is a fund of Fidelity Securities Fund (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class M, Class C, Small Cap Value, 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. 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 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 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 - Investment 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 January 31, 2021 is included at the end of the Fund's Schedule of Investments.
Foreign Currency. Certain Funds 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. 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.
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 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 | $638,459,095 |
Gross unrealized depreciation | (57,247,758) |
Net unrealized appreciation (depreciation) | $581,211,337 |
Tax cost | $1,997,734,904 |
The Fund elected to defer to its next fiscal year approximately $235,333,340 of capital losses recognized during the period November 1, 2019 to July 31, 2020.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, are noted in the table below.
Purchases ($) | Sales ($) | |
Fidelity Small Cap Value Fund | 967,046,144 | 770,075,660 |
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company LLC (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 .23% during the period. The group fee rate is based upon the monthly average net assets of a group of registered investment companies with which the investment adviser has management contracts. 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 annualized management fee rate, including the performance adjustment, was .75% 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 Company LLC (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% | $149,975 | $6,109 |
Class M | .25% | .25% | 110,598 | – |
Class C | .75% | .25% | 82,525 | 16,991 |
$343,098 | $23,100 |
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 | $25,123 |
Class M | 1,314 |
Class C(a) | 970 |
$27,407 |
(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 LLC (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 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(a) | |
Class A | $117,694 | .20 |
Class M | 42,304 | .19 |
Class C | 18,149 | .22 |
Small Cap Value | 1,337,857 | .19 |
Class I | 245,901 | .18 |
Class Z | 27,602 | .04 |
$1,789,507 |
(a) Annualized
Accounting 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. For the period, the fees were equivalent to the following annualized rates:
% of Average Net Assets | |
Fidelity Small Cap Value Fund | .03 |
Brokerage Commissions. A portion of portfolio transactions were placed 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 as follows:
Amount | |
Fidelity Small Cap Value Fund | $41,238 |
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 LLC (FMR), or other affiliated entities of FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the Fund to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. 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 | |
Fidelity Small Cap Value Fund | Borrower | $5,573,182 | .33% | $1,134 |
Interfund Trades. Funds 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, and amounted to $33,409,232 and $22,840,013, respectively.
6. Committed Line of Credit.
Certain Funds participate 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 participating funds have agreed to pay commitment fees on their pro-rata portion of the line of credit, which are reflected in Miscellaneous expenses on the Statement of Operations, and are listed below.
Amount | |
Fidelity Small Cap Value Fund | $1,933 |
During the period, there were no borrowings on this line of credit.
7. Security Lending.
Funds lend portfolio securities from time to time in order to earn additional income. Lending agents are used, including National Financial Services (NFS), an affiliate of the investment adviser. Pursuant to a securities lending agreement, NFS will receive a fee, which is capped at 9.9% of a fund's daily lending revenue, for its services as lending agent. A fund may lend securities to certain qualified borrowers, including NFS. On the settlement date of the loan, a 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 a fund and any additional required collateral is delivered to a fund on the next business day. A 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, a fund may apply collateral received from the borrower against the obligation. A 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. Any loaned securities are identified as such in the Schedule of Investments, and the value of loaned securities and cash collateral at period end, as applicable, are presented in the 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. Affiliated security lending activity, if any, was as follows:
Total Security Lending Income Fees Paid to NFS | Security Lending Income From Securities Loaned to NFS | Value of Securities Loaned to NFS at Period End | |
Fidelity Small Cap Value Fund | $8,493 | $253 | $– |
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 expenses. This amount totaled $177,940 for the period.
In addition, during the period the investment adviser or an affiliate reimbursed and/or waived a portion of fund-level operating expenses in the amount of $3,468.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended January 31, 2021 | Year ended July 31, 2020 | |
Distributions to shareholders | ||
Class A | $407,443 | $4,271,933 |
Class M | 113,565 | 1,681,883 |
Class C | 26,714 | 713,172 |
Small Cap Value | 7,606,520 | 55,235,533 |
Class I | 1,593,887 | 8,502,077 |
Class Z | 866,798 | 2,861,633 |
Total | $10,614,927 | $73,266,231 |
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 | |
Six months ended January 31, 2021 | Year ended July 31, 2020 | Six months ended January 31, 2021 | Year ended July 31, 2020 | |
Class A | ||||
Shares sold | 1,668,262 | 1,787,862 | $25,421,237 | $22,886,888 |
Reinvestment of distributions | 24,428 | 291,014 | 399,404 | 4,193,040 |
Shares redeemed | (1,478,804) | (2,628,607) | (21,560,792) | (34,504,372) |
Net increase (decrease) | 213,886 | (549,731) | $4,259,849 | $(7,424,444) |
Class M | ||||
Shares sold | 353,519 | 437,459 | $5,129,083 | $5,423,700 |
Reinvestment of distributions | 7,107 | 119,893 | 112,433 | 1,673,368 |
Shares redeemed | (395,979) | (1,138,348) | (5,539,538) | (14,599,356) |
Net increase (decrease) | (35,353) | (580,996) | $(298,022) | $(7,502,288) |
Class C | ||||
Shares sold | 436,028 | 411,614 | $5,846,074 | $4,675,916 |
Reinvestment of distributions | 1,867 | 55,052 | 26,601 | 693,834 |
Shares redeemed | (312,104) | (907,145) | (3,981,817) | (10,345,563) |
Net increase (decrease) | 125,791 | (440,479) | $1,890,858 | $(4,975,813) |
Small Cap Value | ||||
Shares sold | 17,306,217 | 24,352,600 | $271,192,680 | $316,956,165 |
Reinvestment of distributions | 450,885 | 3,586,007 | 7,216,719 | 52,941,837 |
Shares redeemed | (16,391,461) | (37,663,110) | (246,836,915) | (502,490,454) |
Net increase (decrease) | 1,365,641 | (9,724,503) | $31,572,484 | $(132,592,452) |
Class I | ||||
Shares sold | 9,057,807 | 8,263,886 | $144,508,994 | $106,069,906 |
Reinvestment of distributions | 94,656 | 514,583 | 1,516,743 | 7,603,951 |
Shares redeemed | (3,149,124) | (8,008,780) | (46,972,676) | (106,942,585) |
Net increase (decrease) | 6,003,339 | 769,689 | $99,053,061 | $6,731,272 |
Class Z | ||||
Shares sold | 3,629,011 | 7,882,221 | $56,272,433 | $105,643,200 |
Reinvestment of distributions | 47,848 | 182,948 | 752,829 | 2,704,975 |
Shares redeemed | (1,561,544) | (2,374,102) | (24,251,044) | (29,551,800) |
Net increase (decrease) | 2,115,315 | 5,691,067 | $32,774,218 | $78,796,375 |
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.
12. Coronavirus (COVID-19) Pandemic.
An outbreak of COVID-19 first detected in China during December 2019 has since spread globally and was declared a pandemic by the World Health Organization during March 2020. Developments that disrupt global economies and financial markets, such as the COVID-19 pandemic, may magnify factors that affect the Fund's performance.
Shareholder Expense Example
As a shareholder, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or redemption proceeds, as applicable and (2) ongoing costs, which generally include 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 a fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2020 to January 31, 2021).
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 for a class/Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. If any fund is a shareholder of any underlying mutual funds or exchange-traded funds (ETFs) (the Underlying Funds), such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses incurred presented in the table. These fees and expenses are not included in the 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 actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the 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. If any fund is a shareholder of any Underlying Funds, such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses as presented in the table. These fees and expenses are not included in the 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 August 1, 2020 | Ending Account Value January 31, 2021 | Expenses Paid During Period-B August 1, 2020 to January 31, 2021 | |
Fidelity Small Cap Value Fund | ||||
Class A | 1.25% | |||
Actual | $1,000.00 | $1,389.40 | $7.53 | |
Hypothetical-C | $1,000.00 | $1,018.90 | $6.36 | |
Class M | 1.49% | |||
Actual | $1,000.00 | $1,387.10 | $8.97 | |
Hypothetical-C | $1,000.00 | $1,017.69 | $7.58 | |
Class C | 2.02% | |||
Actual | $1,000.00 | $1,383.80 | $12.14 | |
Hypothetical-C | $1,000.00 | $1,015.02 | $10.26 | |
Small Cap Value | .98% | |||
Actual | $1,000.00 | $1,392.00 | $5.91 | |
Hypothetical-C | $1,000.00 | $1,020.27 | $4.99 | |
Class I | .97% | |||
Actual | $1,000.00 | $1,391.30 | $5.85 | |
Hypothetical-C | $1,000.00 | $1,020.32 | $4.94 | |
Class Z | .84% | |||
Actual | $1,000.00 | $1,392.20 | $5.06 | |
Hypothetical-C | $1,000.00 | $1,020.97 | $4.28 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/ 365 (to reflect the one-half year period). The fees and expenses of any Underlying Funds are not included in each annualized expense ratio.
C 5% return per year before expenses
Board Approval of Investment Advisory Contracts
Fidelity Small Cap Value Fund
At its January 2021 meeting, the Board of Trustees, including the Independent Trustees (together, the Board), voted to continue the management contract with Fidelity Management & Research Company LLC (FMR), and the sub-advisory agreements and sub-subadvisory agreements, in each case, where applicable (together, the Advisory Contracts) for the fund for four months from February 1, 2021 through May 31, 2021, in connection with changes to the Board's meeting calendar.The Board considered that the approval of the fund's Advisory Contracts will not result in any changes in (i) the investment process or strategies employed in the management of the fund's assets; (ii) the fees and expenses paid by shareholders; (iii) the nature, extent or quality of services provided under the fund's Advisory Contracts; or (iv) the day-to-day management of the fund or the persons primarily responsible for such management. The Board also considered that since its last approval of the fund's Advisory Contracts, FMR had provided additional information on the fund in support of the annual contract renewal process, including competitive analyses on total expenses and management fees and in-depth reviews of fund performance and fund profitability information. The Board also considered the findings of certain ad hoc committees that had been previously formed to discuss matters relevant to all of the Fidelity funds, including economies of scale, fall-out benefits and retail vs. institutional funds. The Board concluded that the fund's Advisory Contracts are fair and reasonable, and that the fund's Advisory Contracts should be renewed, without modification, through May 31, 2021, with the understanding that the Board will consider the annual renewal for a full one year period in May 2021.In connection with its consideration of future renewals of the fund's Advisory Contracts, the Board will consider: (i) the nature, extent and quality of services provided to the funds, including shareholder and administrative services and investment performance; (ii) the competitiveness of the management fee and total expenses for the fund; (iii) the costs of the services and profitability, including the revenues earned and the expenses incurred in conducting the business of developing, marketing, distributing, managing, administering, and servicing the fund and its shareholders, to the extent applicable; and (iv) whether there have been economies of scale in respect of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is the potential for realization of any further economies.Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board ultimately concluded that the fund's management fee structure is fair and reasonable, and that the continuation of the fund's Advisory Contracts should be approved for four months from February 1, 2021 through May 31, 2021.SCV-SANN-0321
1.803709.116
Fidelity® Series Small Cap Opportunities Fund
Semi-Annual Report
January 31, 2021
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Contents
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All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2021 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.
Note to Shareholders:
Early in 2020, the outbreak and spread of a new coronavirus emerged as a public health emergency that had a major influence on financial markets, primarily based on its impact on the global economy and the outlook for corporate earnings. The virus causes a respiratory disease known as COVID-19. On March 11, the World Health Organization declared the COVID-19 outbreak a pandemic, citing sustained risk of further global spread.
In the weeks following, as the crisis worsened, we witnessed an escalating human tragedy with wide-scale social and economic consequences from coronavirus-containment measures. The outbreak of COVID-19 prompted a number of measures to limit the spread, including travel and border restrictions, quarantines, and restrictions on large gatherings. In turn, these resulted in lower consumer activity, diminished demand for a wide range of products and services, disruption in manufacturing and supply chains, and – given the wide variability in outcomes regarding the outbreak – significant market uncertainty and volatility. Amid the turmoil, global governments and central banks took unprecedented action to help support consumers, businesses, and the broader economies, and to limit disruption to financial systems.
The situation continues to unfold, and the extent and duration of its impact on financial markets and the economy remain highly uncertain. Extreme events such as the coronavirus crisis are “exogenous shocks” that can have significant adverse effects on mutual funds and their investments. Although multiple asset classes may be affected by market disruption, the duration and impact may not be the same for all types of assets.
Fidelity is committed to helping you stay informed amid news about COVID-19 and during increased market volatility, and we’re taking extra steps to be responsive to customer needs. We encourage you to visit our websites, where we offer ongoing updates, commentary, and analysis on the markets and our funds.
Investment Summary (Unaudited)
Top Ten Stocks as of January 31, 2021
% of fund's net assets | |
Novavax, Inc. | 1.1 |
Darling Ingredients, Inc. | 0.9 |
Caesars Entertainment, Inc. | 0.9 |
Syneos Health, Inc. | 0.9 |
Builders FirstSource, Inc. | 0.9 |
Phreesia, Inc. | 0.8 |
TG Therapeutics, Inc. | 0.8 |
II-VI, Inc. | 0.8 |
Atkore International Group, Inc. | 0.8 |
Glacier Bancorp, Inc. | 0.7 |
8.6 |
Top Five Market Sectors as of January 31, 2021
% of fund's net assets | |
Health Care | 22.2 |
Industrials | 15.4 |
Financials | 14.7 |
Information Technology | 13.9 |
Consumer Discretionary | 13.4 |
Asset Allocation (% of fund's net assets)
As of January 31, 2021 * | ||
Stocks and Equity Futures | 99.7% | |
Convertible Securities | 0.2% | |
Short-Term Investments and Net Other Assets (Liabilities) | 0.1% |
* Foreign investments - 9.2%
Schedule of Investments January 31, 2021 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.4% | |||
Shares | Value | ||
COMMUNICATION SERVICES - 2.3% | |||
Diversified Telecommunication Services - 0.2% | |||
Cogent Communications Group, Inc. | 190,675 | $10,858,941 | |
Entertainment - 0.5% | |||
Cinemark Holdings, Inc. | 483,556 | 9,787,173 | |
Skillz, Inc. (a)(b) | 593,718 | 16,398,491 | |
26,185,664 | |||
Interactive Media & Services - 0.2% | |||
QuinStreet, Inc. (a) | 605,506 | 12,818,562 | |
Media - 1.4% | |||
S4 Capital PLC (a) | 2,845,903 | 19,301,604 | |
TechTarget, Inc. (a) | 293,585 | 21,930,800 | |
Tegna, Inc. | 1,286,028 | 20,615,029 | |
The New York Times Co. Class A | 343,973 | 17,057,621 | |
78,905,054 | |||
TOTAL COMMUNICATION SERVICES | 128,768,221 | ||
CONSUMER DISCRETIONARY - 13.4% | |||
Auto Components - 1.5% | |||
Adient PLC (a) | 851,000 | 27,478,790 | |
Fox Factory Holding Corp. (a)(b) | 299,300 | 35,808,252 | |
Patrick Industries, Inc. | 342,800 | 23,673,768 | |
86,960,810 | |||
Hotels, Restaurants & Leisure - 4.8% | |||
Boyd Gaming Corp. | 887,693 | 40,088,216 | |
Brinker International, Inc. | 510,100 | 30,034,688 | |
Caesars Entertainment, Inc. (a) | 725,400 | 51,060,906 | |
Churchill Downs, Inc. | 210,900 | 39,533,205 | |
Everi Holdings, Inc. (a) | 769,542 | 10,065,609 | |
Extended Stay America, Inc. unit | 330,100 | 4,845,868 | |
Lindblad Expeditions Holdings (a) | 1,140,100 | 17,899,570 | |
Marriott Vacations Worldwide Corp. | 277,900 | 34,115,004 | |
Ruth's Hospitality Group, Inc. | 1,096,700 | 19,948,973 | |
Wingstop, Inc. | 180,100 | 27,024,005 | |
274,616,044 | |||
Household Durables - 1.9% | |||
Installed Building Products, Inc. (a) | 92,199 | 9,674,441 | |
M.D.C. Holdings, Inc. | 535,800 | 27,872,316 | |
Taylor Morrison Home Corp. (a) | 927,700 | 24,101,646 | |
Tempur Sealy International, Inc. (a) | 751,900 | 19,850,160 | |
TopBuild Corp. (a) | 134,802 | 26,953,660 | |
108,452,223 | |||
Internet & Direct Marketing Retail - 0.2% | |||
Porch Group, Inc. Class A (a)(b) | 613,600 | 9,093,552 | |
Leisure Products - 0.6% | |||
Brunswick Corp. | 115,540 | 9,989,588 | |
Johnson Outdoors, Inc. Class A | 27,097 | 2,954,386 | |
YETI Holdings, Inc. (a)(b) | 278,500 | 18,330,870 | |
31,274,844 | |||
Multiline Retail - 0.3% | |||
Nordstrom, Inc. (b) | 397,200 | 14,080,740 | |
Specialty Retail - 2.1% | |||
American Eagle Outfitters, Inc. | 1,514,800 | 34,370,812 | |
Dick's Sporting Goods, Inc. | 318,500 | 21,342,685 | |
Lithia Motors, Inc. Class A (sub. vtg.) | 124,300 | 39,611,924 | |
National Vision Holdings, Inc. (a) | 514,100 | 23,838,817 | |
119,164,238 | |||
Textiles, Apparel & Luxury Goods - 2.0% | |||
Capri Holdings Ltd. (a) | 400,900 | 16,701,494 | |
Crocs, Inc. (a) | 509,200 | 35,654,184 | |
Deckers Outdoor Corp. (a) | 126,700 | 36,993,866 | |
G-III Apparel Group Ltd. (a)(b) | 949,100 | 25,663,664 | |
115,013,208 | |||
TOTAL CONSUMER DISCRETIONARY | 758,655,659 | ||
CONSUMER STAPLES - 3.3% | |||
Beverages - 0.2% | |||
Celsius Holdings, Inc. (a)(b) | 204,100 | 10,898,940 | |
Food & Staples Retailing - 1.0% | |||
BJ's Wholesale Club Holdings, Inc. (a) | 661,200 | 27,816,684 | |
Performance Food Group Co. (a) | 626,000 | 29,346,880 | |
57,163,564 | |||
Food Products - 1.8% | |||
Darling Ingredients, Inc. (a) | 829,600 | 51,443,496 | |
Freshpet, Inc. (a) | 155,200 | 21,620,912 | |
Nomad Foods Ltd. (a) | 404,000 | 10,140,400 | |
The Simply Good Foods Co. (a) | 750,100 | 21,407,854 | |
104,612,662 | |||
Personal Products - 0.3% | |||
BellRing Brands, Inc. Class A (a) | 705,500 | 16,409,930 | |
TOTAL CONSUMER STAPLES | 189,085,096 | ||
ENERGY - 1.7% | |||
Energy Equipment & Services - 0.4% | |||
Liberty Oilfield Services, Inc. Class A | 1,904,254 | 22,889,133 | |
Oil, Gas & Consumable Fuels - 1.3% | |||
Diamondback Energy, Inc. | 434,793 | 24,648,415 | |
EQT Corp. | 1,138,100 | 18,562,411 | |
Northern Oil & Gas, Inc. (a)(b) | 1,793,346 | 18,292,129 | |
Pioneer Natural Resources Co. | 128,330 | 15,515,097 | |
77,018,052 | |||
TOTAL ENERGY | 99,907,185 | ||
FINANCIALS - 14.7% | |||
Banks - 8.3% | |||
Camden National Corp. | 392,324 | 14,731,766 | |
ConnectOne Bancorp, Inc. | 1,771,712 | 37,648,880 | |
First Bancorp, Puerto Rico | 4,025,194 | 36,629,265 | |
First Financial Bankshares, Inc. (b) | 64,900 | 2,458,412 | |
First Interstate Bancsystem, Inc. | 609,638 | 23,568,605 | |
First Merchants Corp. | 677,770 | 25,531,596 | |
Glacier Bancorp, Inc. | 902,319 | 42,093,181 | |
Heartland Financial U.S.A., Inc. | 715,117 | 30,506,891 | |
Hilltop Holdings, Inc. | 885,400 | 26,597,416 | |
Preferred Bank, Los Angeles | 553,301 | 26,718,905 | |
Signature Bank | 246,300 | 40,686,297 | |
Sterling Bancorp | 1,654,300 | 30,538,378 | |
Synovus Financial Corp. | 971,500 | 36,139,800 | |
Trico Bancshares | 651,343 | 24,295,094 | |
United Community Bank, Inc. | 1,388,481 | 41,418,388 | |
Western Alliance Bancorp. | 514,200 | 35,058,156 | |
474,621,030 | |||
Capital Markets - 3.4% | |||
AllianceBernstein Holding LP | 731,452 | 25,856,828 | |
Cohen & Steers, Inc. | 302,500 | 19,813,750 | |
Focus Financial Partners, Inc. Class A (a) | 503,826 | 23,972,041 | |
Hamilton Lane, Inc. Class A | 331,298 | 24,969,930 | |
Houlihan Lokey | 377,078 | 24,453,508 | |
Lazard Ltd. Class A | 679,200 | 27,983,040 | |
LPL Financial | 196,200 | 21,256,308 | |
PJT Partners, Inc. | 336,141 | 23,190,368 | |
191,495,773 | |||
Consumer Finance - 0.3% | |||
Green Dot Corp. Class A (a) | 297,117 | 14,924,187 | |
Insurance - 1.0% | |||
BRP Group, Inc. (a) | 279,243 | 6,481,230 | |
First American Financial Corp. | 167,200 | 8,742,888 | |
Primerica, Inc. | 176,100 | 24,532,491 | |
Selectquote, Inc. (b) | 771,100 | 16,285,632 | |
56,042,241 | |||
Mortgage Real Estate Investment Trusts - 0.5% | |||
Hannon Armstrong Sustainable Infrastructure Capital, Inc. | 483,700 | 28,610,855 | |
Thrifts & Mortgage Finance - 1.2% | |||
Essent Group Ltd. | 679,800 | 28,436,034 | |
Meta Financial Group, Inc. | 350,100 | 13,524,363 | |
NMI Holdings, Inc. (a) | 1,166,408 | 24,739,514 | |
66,699,911 | |||
TOTAL FINANCIALS | 832,393,997 | ||
HEALTH CARE - 22.0% | |||
Biotechnology - 12.7% | |||
Abcam PLC ADR (b) | 970,575 | 22,449,400 | |
ADC Therapeutics SA (a) | 432,710 | 12,362,525 | |
Agios Pharmaceuticals, Inc. (a) | 573,245 | 26,925,318 | |
Arcutis Biotherapeutics, Inc. (a) | 671,500 | 18,325,235 | |
Argenx SE ADR (a) | 105,600 | 30,942,912 | |
Ascendis Pharma A/S sponsored ADR (a) | 131,448 | 19,736,917 | |
BioAtla, Inc. | 83,500 | 3,671,495 | |
Black Diamond Therapeutics, Inc. (a) | 296,147 | 7,335,561 | |
ChemoCentryx, Inc. (a) | 260,300 | 14,839,703 | |
Crinetics Pharmaceuticals, Inc. (a) | 594,928 | 8,537,217 | |
FibroGen, Inc. (a) | 569,700 | 27,448,146 | |
Forma Therapeutics Holdings, Inc. | 379,200 | 14,648,496 | |
Global Blood Therapeutics, Inc. (a)(b) | 404,400 | 20,268,528 | |
Intercept Pharmaceuticals, Inc. (a) | 144,498 | 5,092,110 | |
Keros Therapeutics, Inc. | 243,000 | 13,863,150 | |
Kura Oncology, Inc. (a) | 624,038 | 18,689,938 | |
Mirati Therapeutics, Inc. (a) | 154,500 | 31,723,485 | |
Morphic Holding, Inc. (a) | 479,962 | 16,155,521 | |
Neurocrine Biosciences, Inc. (a) | 233,400 | 25,615,650 | |
Novavax, Inc. (a)(b) | 289,700 | 64,006,322 | |
ORIC Pharmaceuticals, Inc. (a) | 2,101 | 61,601 | |
Passage Bio, Inc. | 712,745 | 13,299,822 | |
Poseida Therapeutics, Inc. (a)(b) | 115,100 | 1,001,370 | |
Prelude Therapeutics, Inc. | 246,844 | 16,032,518 | |
Prelude Therapeutics, Inc. | 339,707 | 20,960,771 | |
Protagonist Therapeutics, Inc. (a) | 1,045,923 | 21,661,065 | |
PTC Therapeutics, Inc. (a) | 389,000 | 22,491,980 | |
Revolution Medicines, Inc. | 533,042 | 22,462,390 | |
Sage Therapeutics, Inc. (a) | 160,975 | 12,982,634 | |
Sarepta Therapeutics, Inc. (a) | 160,300 | 14,330,820 | |
Seer, Inc. | 39,100 | 2,439,840 | |
Shattuck Labs, Inc. | 110,120 | 5,463,053 | |
Stoke Therapeutics, Inc. (a) | 205,417 | 12,546,870 | |
Taysha Gene Therapies, Inc. | 34,700 | 902,200 | |
TG Therapeutics, Inc. (a) | 952,900 | 45,996,483 | |
Turning Point Therapeutics, Inc. (a) | 291,600 | 36,592,884 | |
Vaxcyte, Inc. | 517,172 | 12,686,229 | |
Viela Bio, Inc. (a) | 510,878 | 17,717,249 | |
Xenon Pharmaceuticals, Inc. (a)(b) | 1,038,759 | 14,906,192 | |
Zentalis Pharmaceuticals, Inc. | 501,500 | 19,242,555 | |
Zymeworks, Inc. (a) | 145,400 | 4,917,428 | |
721,333,583 | |||
Health Care Equipment & Supplies - 2.4% | |||
Axonics Modulation Technologies, Inc. (a) | 222,100 | 11,482,570 | |
Envista Holdings Corp. (a) | 333,670 | 11,858,632 | |
Globus Medical, Inc. (a) | 490,100 | 30,234,269 | |
Haemonetics Corp. (a) | 254,500 | 29,086,805 | |
Integer Holdings Corp. (a) | 311,300 | 22,973,940 | |
Nevro Corp. (a) | 184,300 | 29,817,897 | |
135,454,113 | |||
Health Care Providers & Services - 2.0% | |||
Chemed Corp. | 29,000 | 15,019,100 | |
Molina Healthcare, Inc. (a) | 181,200 | 38,706,132 | |
Progyny, Inc. (a) | 438,381 | 20,503,079 | |
R1 RCM, Inc. (a) | 1,265,300 | 31,923,519 | |
Surgery Partners, Inc. (a) | 143,200 | 5,338,496 | |
111,490,326 | |||
Health Care Technology - 1.9% | |||
HMS Holdings Corp. (a) | 619,900 | 22,824,718 | |
Inspire Medical Systems, Inc. (a) | 187,743 | 37,832,092 | |
Phreesia, Inc. (a) | 737,800 | 48,170,962 | |
108,827,772 | |||
Life Sciences Tools & Services - 2.0% | |||
Bio-Rad Laboratories, Inc. Class A (a) | 59,100 | 33,909,807 | |
Bruker Corp. | 412,500 | 23,879,625 | |
Maravai LifeSciences Holdings, Inc. | 165,300 | 5,759,052 | |
Syneos Health, Inc. (a) | 680,600 | 50,602,610 | |
114,151,094 | |||
Pharmaceuticals - 1.0% | |||
Arvinas Holding Co. LLC (a) | 380,200 | 28,682,288 | |
Graybug Vision, Inc. | 382,175 | 11,713,664 | |
IMARA, Inc. | 268,764 | 3,499,307 | |
Theravance Biopharma, Inc. (a) | 683,172 | 12,734,326 | |
56,629,585 | |||
TOTAL HEALTH CARE | 1,247,886,473 | ||
INDUSTRIALS - 15.4% | |||
Aerospace & Defense - 0.4% | |||
Kaman Corp. | 456,543 | 22,991,505 | |
Air Freight & Logistics - 0.5% | |||
Air Transport Services Group, Inc. (a) | 1,021,969 | 25,968,232 | |
Building Products - 2.4% | |||
A.O. Smith Corp. | 344,800 | 18,722,640 | |
Builders FirstSource, Inc. (a) | 1,270,100 | 48,581,325 | |
Jeld-Wen Holding, Inc. (a) | 1,342,700 | 34,896,773 | |
Simpson Manufacturing Co. Ltd. | 370,985 | 34,130,620 | |
136,331,358 | |||
Commercial Services & Supplies - 1.1% | |||
MSA Safety, Inc. | 152,400 | 23,792,688 | |
Tetra Tech, Inc. | 311,116 | 37,822,372 | |
61,615,060 | |||
Construction & Engineering - 2.7% | |||
Comfort Systems U.S.A., Inc. | 692,430 | 38,381,395 | |
Construction Partners, Inc. Class A (a) | 882,102 | 25,069,339 | |
Dycom Industries, Inc. (a) | 456,156 | 37,012,498 | |
EMCOR Group, Inc. | 399,298 | 35,258,013 | |
Jacobs Engineering Group, Inc. | 189,773 | 19,159,482 | |
154,880,727 | |||
Electrical Equipment - 2.1% | |||
Atkore International Group, Inc. (a) | 991,781 | 43,995,405 | |
Bloom Energy Corp. Class A (a)(b) | 1,120,900 | 39,130,619 | |
Generac Holdings, Inc. (a) | 146,673 | 36,143,161 | |
119,269,185 | |||
Machinery - 3.2% | |||
ESCO Technologies, Inc. | 392,878 | 37,354,840 | |
Federal Signal Corp. | 686,921 | 22,455,447 | |
ITT, Inc. | 467,185 | 34,903,391 | |
Kadant, Inc. | 192,400 | 27,503,580 | |
SPX Corp. (a) | 505,300 | 26,129,063 | |
SPX Flow, Inc. (a) | 670,607 | 35,522,053 | |
183,868,374 | |||
Professional Services - 1.2% | |||
ASGN, Inc. (a) | 448,600 | 37,193,426 | |
TriNet Group, Inc. (a) | 443,600 | 32,875,196 | |
70,068,622 | |||
Road & Rail - 0.6% | |||
Saia, Inc. (a) | 190,500 | 33,670,875 | |
Trading Companies & Distributors - 1.2% | |||
Finning International, Inc. | 1,268,600 | 26,488,070 | |
Rush Enterprises, Inc. Class A | 536,264 | 22,517,725 | |
Univar, Inc. (a) | 990,954 | 18,421,835 | |
67,427,630 | |||
TOTAL INDUSTRIALS | 876,091,568 | ||
INFORMATION TECHNOLOGY - 13.9% | |||
Electronic Equipment & Components - 1.8% | |||
Fabrinet (a) | 376,774 | 29,742,540 | |
II-VI, Inc. (a)(b) | 527,300 | 44,330,111 | |
Insight Enterprises, Inc. (a) | 409,000 | 31,124,900 | |
105,197,551 | |||
IT Services - 3.2% | |||
CACI International, Inc. Class A (a) | 45,971 | 11,089,125 | |
Endava PLC ADR (a) | 385,906 | 30,509,728 | |
ExlService Holdings, Inc. (a) | 345,884 | 26,522,385 | |
ManTech International Corp. Class A | 298,044 | 26,731,566 | |
Shift4 Payments, Inc. | 595,700 | 38,726,457 | |
Verra Mobility Corp. (a) | 1,556,500 | 19,923,200 | |
WNS Holdings Ltd. sponsored ADR (a) | 418,703 | 28,128,468 | |
181,630,929 | |||
Semiconductors & Semiconductor Equipment - 3.8% | |||
Advanced Energy Industries, Inc. | 396,199 | 40,642,093 | |
Array Technologies, Inc. | 540,315 | 22,023,239 | |
CMC Materials, Inc. | 234,300 | 34,514,733 | |
Entegris, Inc. | 197,413 | 19,423,465 | |
MKS Instruments, Inc. | 178,300 | 28,183,881 | |
Semtech Corp. (a) | 471,600 | 33,460,020 | |
Synaptics, Inc. (a) | 364,300 | 36,145,846 | |
214,393,277 | |||
Software - 5.1% | |||
Altair Engineering, Inc. Class A (a)(b) | 383,500 | 21,449,155 | |
Cerence, Inc. (a)(b) | 342,600 | 38,340,366 | |
Digital Turbine, Inc. (a) | 624,500 | 35,727,645 | |
Everbridge, Inc. (a)(b) | 94,000 | 12,495,420 | |
Five9, Inc. (a) | 173,200 | 28,794,500 | |
Manhattan Associates, Inc. (a) | 251,500 | 28,477,345 | |
Model N, Inc. (a) | 555,400 | 18,872,492 | |
Ping Identity Holding Corp. (a) | 655,300 | 19,600,023 | |
Telos Corp. | 421,900 | 14,893,070 | |
Tenable Holdings, Inc. (a) | 723,400 | 35,801,066 | |
Workiva, Inc. (a) | 351,100 | 34,221,717 | |
288,672,799 | |||
TOTAL INFORMATION TECHNOLOGY | 789,894,556 | ||
MATERIALS - 4.0% | |||
Chemicals - 1.8% | |||
Chase Corp. | 188,894 | 18,934,735 | |
Innospec, Inc. | 354,800 | 31,147,892 | |
Trinseo SA (b) | 409,200 | 20,799,636 | |
Tronox Holdings PLC | 2,259,900 | 34,689,465 | |
105,571,728 | |||
Construction Materials - 0.5% | |||
Eagle Materials, Inc. | 248,100 | 27,298,443 | |
Containers & Packaging - 0.4% | |||
O-I Glass, Inc. | 1,905,400 | 24,084,256 | |
Metals & Mining - 0.8% | |||
B2Gold Corp. | 3,472,100 | 17,160,252 | |
Commercial Metals Co. | 1,321,700 | 26,024,273 | |
43,184,525 | |||
Paper & Forest Products - 0.5% | |||
Louisiana-Pacific Corp. (b) | 771,100 | 29,309,511 | |
TOTAL MATERIALS | 229,448,463 | ||
REAL ESTATE - 6.0% | |||
Equity Real Estate Investment Trusts (REITs) - 5.5% | |||
CoreSite Realty Corp. | 180,900 | 24,320,196 | |
Essential Properties Realty Trust, Inc. | 1,437,700 | 29,932,914 | |
Four Corners Property Trust, Inc. | 1,161,800 | 30,625,048 | |
Highwoods Properties, Inc. (SBI) | 643,200 | 24,113,568 | |
Lexington Corporate Properties Trust | 2,839,300 | 29,102,825 | |
Potlatch Corp. | 723,700 | 34,563,912 | |
Rexford Industrial Realty, Inc. | 553,100 | 27,068,714 | |
RLJ Lodging Trust | 2,545,300 | 32,859,823 | |
Sunstone Hotel Investors, Inc. | 3,877,100 | 41,484,970 | |
Terreno Realty Corp. | 625,000 | 35,362,500 | |
309,434,470 | |||
Real Estate Management & Development - 0.5% | |||
Cushman & Wakefield PLC (a) | 2,142,700 | 30,704,891 | |
TOTAL REAL ESTATE | 340,139,361 | ||
UTILITIES - 2.7% | |||
Electric Utilities - 0.7% | |||
Allete, Inc. | 406,100 | 25,519,324 | |
IDACORP, Inc. | 167,800 | 14,816,740 | |
40,336,064 | |||
Gas Utilities - 0.5% | |||
Brookfield Infrastructure Corp. A Shares (b) | 424,900 | 28,502,292 | |
Independent Power and Renewable Electricity Producers - 1.1% | |||
Brookfield Renewable Corp. | 366,200 | 20,488,890 | |
Clearway Energy, Inc. Class C | 846,800 | 26,233,864 | |
Shoals Technologies Group, Inc. | 8,100 | 274,833 | |
Vistra Corp. | 801,751 | 16,010,967 | |
63,008,554 | |||
Multi-Utilities - 0.4% | |||
Algonquin Power & Utilities Corp. (b) | 1,242,500 | 20,650,350 | |
TOTAL UTILITIES | 152,497,260 | ||
TOTAL COMMON STOCKS | |||
(Cost $3,968,090,529) | 5,644,767,839 | ||
Convertible Preferred Stocks - 0.2% | |||
HEALTH CARE - 0.2% | |||
Health Care Providers & Services - 0.1% | |||
Ikena Oncology, Inc. Series B (c)(d) | 4,068,100 | 5,689,238 | |
Pharmaceuticals - 0.1% | |||
Aristea Therapeutics, Inc. Series B (c)(d) | 555,852 | 4,007,693 | |
TOTAL CONVERTIBLE PREFERRED STOCKS | |||
(Cost $8,754,039) | 9,696,931 | ||
Principal Amount | Value | ||
U.S. Treasury Obligations - 0.2% | |||
U.S. Treasury Bills, yield at date of purchase 0.08% to 0.09% 2/25/21 (e) | |||
(Cost $10,169,438) | 10,170,000 | 10,169,695 | |
Shares | Value | ||
Money Market Funds - 6.5% | |||
Fidelity Cash Central Fund 0.09% (f) | 195,105,497 | $195,144,518 | |
Fidelity Securities Lending Cash Central Fund 0.09% (f)(g) | 175,861,694 | 175,879,280 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $371,023,446) | 371,023,798 | ||
TOTAL INVESTMENT IN SECURITIES - 106.3% | |||
(Cost $4,358,037,452) | 6,035,658,263 | ||
NET OTHER ASSETS (LIABILITIES) - (6.3)% | (358,297,887) | ||
NET ASSETS - 100% | $5,677,360,376 |
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) | 146 | March 2021 | $15,097,860 | $(316,300) | $(316,300) |
The notional amount of futures purchased as a percentage of Net Assets is 0.3%
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Restricted securities (including private placements) - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $9,696,931 or 0.2% of net assets.
(d) Level 3 security
(e) 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 $10,169,695.
(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 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 |
Aristea Therapeutics, Inc. Series B | 10/6/20 | $3,064,801 |
Ikena Oncology, Inc. Series B | 12/21/20 | $5,689,238 |
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
Fidelity Cash Central Fund | $30,897 |
Fidelity Securities Lending Cash Central Fund | 264,627 |
Total | $295,524 |
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 January 31, 2021, 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 | $128,768,221 | $128,768,221 | $-- | $-- |
Consumer Discretionary | 758,655,659 | 758,655,659 | -- | -- |
Consumer Staples | 189,085,096 | 189,085,096 | -- | -- |
Energy | 99,907,185 | 99,907,185 | -- | -- |
Financials | 832,393,997 | 832,393,997 | -- | -- |
Health Care | 1,257,583,404 | 1,226,925,702 | 20,960,771 | 9,696,931 |
Industrials | 876,091,568 | 876,091,568 | -- | -- |
Information Technology | 789,894,556 | 789,894,556 | -- | -- |
Materials | 229,448,463 | 229,448,463 | -- | -- |
Real Estate | 340,139,361 | 340,139,361 | -- | -- |
Utilities | 152,497,260 | 152,497,260 | -- | -- |
U.S. Government and Government Agency Obligations | 10,169,695 | -- | 10,169,695 | -- |
Money Market Funds | 371,023,798 | 371,023,798 | -- | -- |
Total Investments in Securities: | $6,035,658,263 | $5,994,830,866 | $31,130,466 | $9,696,931 |
Derivative Instruments: | ||||
Liabilities | ||||
Futures Contracts | $(316,300) | $(316,300) | $-- | $-- |
Total Liabilities | $(316,300) | $(316,300) | $-- | $-- |
Total Derivative Instruments: | $(316,300) | $(316,300) | $-- | $-- |
Value of Derivative Instruments
The following table is a summary of the Fund's value of derivative instruments by primary risk exposure as of January 31, 2021. 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) | $0 | $(316,300) |
Total Equity Risk | 0 | (316,300) |
Total Value of Derivatives | $0 | $(316,300) |
(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 Total accumulated earnings (loss).
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
January 31, 2021 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $167,727,594) — See accompanying schedule: Unaffiliated issuers (cost $3,987,014,006) | $5,664,634,465 | |
Fidelity Central Funds (cost $371,023,446) | 371,023,798 | |
Total Investment in Securities (cost $4,358,037,452) | $6,035,658,263 | |
Segregated cash with brokers for derivative instruments | 303,290 | |
Receivable for investments sold | 19,870,784 | |
Receivable for fund shares sold | 6,696,863 | |
Dividends receivable | 1,151,809 | |
Interest receivable | 37 | |
Distributions receivable from Fidelity Central Funds | 42,632 | |
Other receivables | 28,963 | |
Total assets | 6,063,752,641 | |
Liabilities | ||
Payable to custodian bank | $97,200 | |
Payable for investments purchased | 51,600,268 | |
Payable for fund shares redeemed | 156,528,090 | |
Payable for daily variation margin on futures contracts | 2,267,688 | |
Other payables and accrued expenses | 25,541 | |
Collateral on securities loaned | 175,873,478 | |
Total liabilities | 386,392,265 | |
Net Assets | $5,677,360,376 | |
Net Assets consist of: | ||
Paid in capital | $3,677,080,136 | |
Total accumulated earnings (loss) | 2,000,280,240 | |
Net Assets | $5,677,360,376 | |
Net Asset Value, offering price and redemption price per share ($5,677,360,376 ÷ 351,661,731 shares) | $16.14 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended January 31, 2021 (Unaudited) | ||
Investment Income | ||
Dividends | $23,089,137 | |
Interest | 2,168 | |
Income from Fidelity Central Funds (including $264,627 from security lending) | 295,524 | |
Total income | 23,386,829 | |
Expenses | ||
Custodian fees and expenses | $27,967 | |
Independent trustees' fees and expenses | 12,640 | |
Interest | 4,460 | |
Miscellaneous | 5,344 | |
Total expenses | 50,411 | |
Net investment income (loss) | 23,336,418 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 485,410,722 | |
Fidelity Central Funds | (3,070) | |
Foreign currency transactions | (37,392) | |
Futures contracts | (5,305,992) | |
Total net realized gain (loss) | 480,064,268 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 921,818,602 | |
Fidelity Central Funds | (5,330) | |
Assets and liabilities in foreign currencies | 18,492 | |
Futures contracts | (594,873) | |
Total change in net unrealized appreciation (depreciation) | 921,236,891 | |
Net gain (loss) | 1,401,301,159 | |
Net increase (decrease) in net assets resulting from operations | $1,424,637,577 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended January 31, 2021 (Unaudited) | Year ended July 31, 2020 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $23,336,418 | $59,570,616 |
Net realized gain (loss) | 480,064,268 | (27,834,791) |
Change in net unrealized appreciation (depreciation) | 921,236,891 | (200,595,300) |
Net increase (decrease) in net assets resulting from operations | 1,424,637,577 | (168,859,475) |
Distributions to shareholders | (118,324,848) | (370,412,069) |
Share transactions | ||
Proceeds from sales of shares | 134,044,089 | 697,418,642 |
Reinvestment of distributions | 118,324,848 | 370,412,069 |
Cost of shares redeemed | (812,513,420) | (1,264,824,598) |
Net increase (decrease) in net assets resulting from share transactions | (560,144,483) | (196,993,887) |
Total increase (decrease) in net assets | 746,168,246 | (736,265,431) |
Net Assets | ||
Beginning of period | 4,931,192,130 | 5,667,457,561 |
End of period | $5,677,360,376 | $4,931,192,130 |
Other Information | ||
Shares | ||
Sold | 9,192,405 | 55,543,419 |
Issued in reinvestment of distributions | 8,102,705 | 27,933,067 |
Redeemed | (55,123,859) | (97,637,825) |
Net increase (decrease) | (37,828,749) | (14,161,339) |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Series Small Cap Opportunities Fund
Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $12.66 | $14.04 | $15.46 | $14.42 | $12.94 | $13.83 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .06 | .15 | .15 | .16 | .06 | .06 |
Net realized and unrealized gain (loss) | 3.74 | (.60) | .12 | 2.44 | 1.52 | (.22) |
Total from investment operations | 3.80 | (.45) | .27 | 2.60 | 1.58 | (.16) |
Distributions from net investment income | (.14) | (.16) | (.14) | (.12) | (.07) | (.05) |
Distributions from net realized gain | (.19) | (.77) | (1.55) | (1.45) | (.03) | (.68) |
Total distributions | (.32)B | (.93) | (1.69) | (1.56)B | (.10) | (.73) |
Net asset value, end of period | $16.14 | $12.66 | $14.04 | $15.46 | $14.42 | $12.94 |
Total ReturnC,D | 30.31% | (3.44)% | 1.98% | 19.84% | 12.22% | (.94)% |
Ratios to Average Net AssetsE,F | ||||||
Expenses before reductions | - %G,H | - %H | - %H | - %H | .66% | .85% |
Expenses net of fee waivers, if any | - %G,H | - %H | - %H | - %H | .66% | .85% |
Expenses net of all reductions | - %G,H | - %H | - %H | - %H | .65% | .84% |
Net investment income (loss) | .86%G | 1.17% | 1.13% | 1.10% | .42% | .46% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $5,677,360 | $4,931,192 | $5,667,458 | $5,997,330 | $2,509,347 | $2,433,489 |
Portfolio turnover rateI | 70%G | 61%J | 59% | 68% | 58% | 58% |
A Calculated based on average shares outstanding during the period.
B Total distributions per share do not sum due to rounding.
C Total returns for periods of less than one year are not annualized.
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment advisor, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
G Annualized
H Amount represents less than .005%.
I Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
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 (Unaudited)
For the period ended January 31, 2021
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 are offered only to certain other Fidelity funds and Fidelity managed 529 plans. 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 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 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 - Investment 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 yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded and are categorized as Level 1 in the hierarchy. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of January 31, 2021, is included at the end of the Fund's Schedule of Investments.
Foreign Currency. Certain Funds 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. 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, partnerships, passive foreign investment companies (PFIC), 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 | $1,792,706,699 |
Gross unrealized depreciation | (124,930,726) |
Net unrealized appreciation (depreciation) | $1,667,775,973 |
Tax cost | $4,367,565,990 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of prior fiscal period end and is subject to adjustment.
No expiration | |
Short-term | $(68,496,247) |
Restricted Securities (including Private Placements). 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. 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. Cash deposited to meet initial margin requirements is presented as segregated cash with brokers for derivative instruments in the Statement of Assets and Liabilities.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, are noted in the table below.
Purchases ($) | Sales ($) | |
Fidelity Series Small Cap Opportunities Fund | 1,828,287,039 | 2,407,414,414 |
6. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company LLC (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. A portion of portfolio transactions were placed 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 as follows:
Amount | |
Fidelity Series Small Cap Opportunities Fund | $74,979 |
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 LLC (FMR), or other affiliated entities of FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the Fund to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. 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 | |
Fidelity Series Small Cap Opportunities Fund | Borrower | $33,807,500 | .33% | $4,308 |
Interfund Trades. Funds 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, and amounted to $105,311,747 and $133,274,939, respectively.
Prior Fiscal Year Affiliated Exchanges In-Kind. During the prior period, the Fund received investments and cash valued at $177,449,561 in exchange for 13,874,086 shares of the Fund. The amount of in-kind exchanges is included in share transactions in the accompanying Statement of Changes in Net Assets.
7. Committed Line of Credit.
Certain Funds participate 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 participating funds have agreed to pay commitment fees on their pro-rata portion of the line of credit, which are reflected in Miscellaneous expenses on the Statement of Operations, and are listed below. Effective during January 2021, commitment fees are borne by the investment advisor.
Amount | |
Fidelity Series Small Cap Opportunities Fund | $5,344 |
During the period, there were no borrowings on this line of credit.
8. Security Lending.
Funds lend portfolio securities from time to time in order to earn additional income. Lending agents are used, including National Financial Services (NFS), an affiliate of the investment adviser. Pursuant to a securities lending agreement, NFS will receive a fee, which is capped at 9.9% of a fund's daily lending revenue, for its services as lending agent. A fund may lend securities to certain qualified borrowers, including NFS. On the settlement date of the loan, a 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 a fund and any additional required collateral is delivered to a fund on the next business day. A 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, a fund may apply collateral received from the borrower against the obligation. A 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. Any loaned securities are identified as such in the Schedule of Investments, and the value of loaned securities and cash collateral at period end, as applicable, are presented in the 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. Affiliated security lending activity, if any, was as follows:
Total Security Lending Income Fees Paid to NFS | Security Lending Income From Securities Loaned to NFS | Value of Securities Loaned to NFS at Period End | |
Fidelity Series Small Cap Opportunities Fund | $32,086 | $3,966 | $– |
9. Bank Borrowings.
The Fund is permitted to have bank borrowings for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity requirements. The Fund has established borrowing arrangements with certain banks. The interest rate on the borrowings is the bank's base rate, as revised from time to time. Any open loans, including accrued interest, at period end are presented under the caption "Notes payable" in the Statement of Assets and Liabilities, if applicable. Activity in this program during the period for which loans were outstanding was as follows:
Average Loan Balance | Weighted Average Interest Rate | Interest Expense | |
Fidelity Series Small Cap Opportunities Fund | $9,293,000 | .59% | $152 |
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 and accounts managed by the investment adviser or its affiliates were the owners of record of all of the outstanding shares of the Fund.
11. Coronavirus (COVID-19) Pandemic.
An outbreak of COVID-19 first detected in China during December 2019 has since spread globally and was declared a pandemic by the World Health Organization during March 2020. Developments that disrupt global economies and financial markets, such as the COVID-19 pandemic, may magnify factors that affect the Fund's performance.
Shareholder Expense Example
As a shareholder, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or redemption proceeds, as applicable and (2) ongoing costs, which generally include 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 a fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2020 to January 31, 2021).
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 for a class/Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. If any fund is a shareholder of any underlying mutual funds or exchange-traded funds (ETFs) (the Underlying Funds), such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses incurred presented in the table. These fees and expenses are not included in the 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 actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the 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. If any fund is a shareholder of any Underlying Funds, such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses as presented in the table. These fees and expenses are not included in the 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 August 1, 2020 | Ending Account Value January 31, 2021 | Expenses Paid During Period-B August 1, 2020 to January 31, 2021 | |
Fidelity Series Small Cap Opportunities Fund | - %-C | |||
Actual | $1,000.00 | $1,303.10 | $--D | |
Hypothetical-E | $1,000.00 | $1,025.21 | $--D |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/ 365 (to reflect the one-half year period). The fees and expenses of any Underlying Funds are not included in each annualized expense ratio.
C Amount represents less than .005%.
D Amount represents less than $.005.
E 5% return per year before expenses
Board Approval of Investment Advisory Contracts
Fidelity Series Small Cap Opportunities Fund
At its January 2021 meeting, the Board of Trustees, including the Independent Trustees (together, the Board), voted to continue the management contract with Fidelity Management & Research Company LLC (FMR), and the sub-advisory agreements and sub-subadvisory agreements, in each case, where applicable (together, the Advisory Contracts) for the fund for four months from February 1, 2021 through May 31, 2021, in connection with changes to the Board's meeting calendar.The Board considered that the approval of the fund's Advisory Contracts will not result in any changes in (i) the investment process or strategies employed in the management of the fund's assets; (ii) the fees and expenses paid by shareholders; (iii) the nature, extent or quality of services provided under the fund's Advisory Contracts; or (iv) the day-to-day management of the fund or the persons primarily responsible for such management. The Board also considered that since its last approval of the fund's Advisory Contracts, FMR had provided additional information on the fund in support of the annual contract renewal process, including competitive analyses on total expenses and management fees and in-depth reviews of fund performance and fund profitability information. The Board also considered the findings of certain ad hoc committees that had been previously formed to discuss matters relevant to all of the Fidelity funds, including economies of scale, fall-out benefits and retail vs. institutional funds. The Board noted that, effective August 1, 2020, the expense cap for the fund was lowered and that the expense cap arrangements were amended to remove certain exclusions. The Board concluded that the fund's Advisory Contracts are fair and reasonable, and that the fund's Advisory Contracts should be renewed, without modification, through May 31, 2021, with the understanding that the Board will consider the annual renewal for a full one year period in May 2021.In connection with its consideration of future renewals of the fund's Advisory Contracts, the Board will consider: (i) the nature, extent and quality of services provided to the funds, including shareholder and administrative services and investment performance; (ii) the competitiveness of the management fee and total expenses for the fund; (iii) the costs of the services and profitability, including the revenues earned and the expenses incurred in conducting the business of developing, marketing, distributing, managing, administering, and servicing the fund and its shareholders, to the extent applicable; and (iv) whether there have been economies of scale in respect of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is the potential for realization of any further economies.Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board ultimately concluded that the fund's management fee structure is fair and reasonable, and that the continuation of the fund's Advisory Contracts should be approved for four months from February 1, 2021 through May 31, 2021.SMO-SANN-0321
1.839810.113
Fidelity® Real Estate Income Fund
Semi-Annual Report
January 31, 2021
Includes Fidelity and Fidelity Advisor share classes
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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.
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. © 2021 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.
Note to Shareholders:
Early in 2020, the outbreak and spread of a new coronavirus emerged as a public health emergency that had a major influence on financial markets, primarily based on its impact on the global economy and the outlook for corporate earnings. The virus causes a respiratory disease known as COVID-19. On March 11, the World Health Organization declared the COVID-19 outbreak a pandemic, citing sustained risk of further global spread.
In the weeks following, as the crisis worsened, we witnessed an escalating human tragedy with wide-scale social and economic consequences from coronavirus-containment measures. The outbreak of COVID-19 prompted a number of measures to limit the spread, including travel and border restrictions, quarantines, and restrictions on large gatherings. In turn, these resulted in lower consumer activity, diminished demand for a wide range of products and services, disruption in manufacturing and supply chains, and – given the wide variability in outcomes regarding the outbreak – significant market uncertainty and volatility. Amid the turmoil, global governments and central banks took unprecedented action to help support consumers, businesses, and the broader economies, and to limit disruption to financial systems.
The situation continues to unfold, and the extent and duration of its impact on financial markets and the economy remain highly uncertain. Extreme events such as the coronavirus crisis are “exogenous shocks” that can have significant adverse effects on mutual funds and their investments. Although multiple asset classes may be affected by market disruption, the duration and impact may not be the same for all types of assets.
Fidelity is committed to helping you stay informed amid news about COVID-19 and during increased market volatility, and we’re taking extra steps to be responsive to customer needs. We encourage you to visit our websites, where we offer ongoing updates, commentary, and analysis on the markets and our funds.
Investment Summary (Unaudited)
Top Five Stocks as of January 31, 2021
% of fund's net assets | |
American Tower Corp. | 3.0 |
Equity Lifestyle Properties, Inc. | 2.8 |
Mid-America Apartment Communities, Inc. | 2.4 |
New Residential Investment Corp. | 2.3 |
AGNC Investment Corp. | 1.5 |
12.0 |
Top 5 Bonds as of January 31, 2021
% of fund's net assets | |
Western Asset Mortgage Capital Corp. 6.75% 10/1/22 | 1.0 |
Redwood Trust, Inc. 5.625% 7/15/24 | 1.0 |
Kennedy-Wilson, Inc. 5.875% 4/1/24 | 0.9 |
Senior Housing Properties Trust 4.75% 5/1/24 | 0.8 |
RWT Holdings, Inc. 5.75% 10/1/25 | 0.6 |
4.3 |
Top Five REIT Sectors as of January 31, 2021
% of fund's net assets | |
REITs - Mortgage | 23.3 |
REITs - Diversified | 15.1 |
REITs - Management/Investment | 6.8 |
REITs - Health Care | 4.5 |
REITs - Apartments | 4.4 |
Asset Allocation (% of fund's net assets)
As of January 31, 2021* | ||
Stocks | 55.9% | |
Bonds | 25.7% | |
Convertible Securities | 7.0% | |
Other Investments | 3.8% | |
Short-Term Investments and Net Other Assets (Liabilities) | 7.6% |
* Foreign investments - 2.2%
Schedule of Investments January 31, 2021 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 32.6% | |||
Shares | Value | ||
FINANCIALS - 8.1% | |||
Capital Markets - 0.7% | |||
Brookfield Asset Management, Inc. (Canada) Class A | 974,800 | $37,772,309 | |
Mortgage Real Estate Investment Trusts - 7.4% | |||
AGNC Investment Corp. | 5,331,932 | 83,178,139 | |
Broadmark Realty Capital, Inc. | 1,388,400 | 14,286,636 | |
Capstead Mortgage Corp. | 1,229,200 | 6,563,928 | |
Chimera Investment Corp. | 1,056,000 | 10,665,600 | |
Colony NorthStar Credit Real Estate, Inc. | 818,850 | 6,468,915 | |
Dynex Capital, Inc. (a) | 2,072,262 | 37,404,329 | |
Ellington Financial LLC | 1,548,275 | 23,162,194 | |
Ellington Residential Mortgage REIT | 430,700 | 5,151,172 | |
Great Ajax Corp. (a)(b) | 1,663,364 | 16,384,135 | |
Lument Finance Trust, Inc. | 232,703 | 735,341 | |
MFA Financial, Inc. | 18,427,741 | 67,076,977 | |
New Residential Investment Corp. | 13,047,899 | 122,519,772 | |
Redwood Trust, Inc. | 1,127,752 | 9,676,112 | |
403,273,250 | |||
TOTAL FINANCIALS | 441,045,559 | ||
INDUSTRIALS - 0.4% | |||
Construction & Engineering - 0.4% | |||
Willscot Mobile Mini Holdings (c) | 898,000 | 21,291,580 | |
REAL ESTATE - 24.1% | |||
Equity Real Estate Investment Trusts (REITs) - 23.7% | |||
Acadia Realty Trust (SBI) | 3,436,126 | 49,823,827 | |
American Homes 4 Rent Class A | 791,300 | 23,920,999 | |
American Tower Corp. | 739,200 | 168,064,499 | |
Apartment Income (REIT) Corp. | 2,043,640 | 79,231,923 | |
Apartment Investment & Management Co. Class A | 2,075,240 | 9,525,352 | |
AvalonBay Communities, Inc. | 101,200 | 16,563,404 | |
Colony Capital, Inc. (b) | 5,708,755 | 28,315,425 | |
Crown Castle International Corp. | 470,610 | 74,949,349 | |
Digital Realty Trust, Inc. | 137,000 | 19,721,150 | |
Diversified Healthcare Trust (SBI) | 1,056,907 | 4,248,766 | |
Douglas Emmett, Inc. | 548,100 | 15,187,851 | |
Easterly Government Properties, Inc. | 946,300 | 20,771,285 | |
Equinix, Inc. | 77,700 | 57,494,892 | |
Equity Lifestyle Properties, Inc. | 2,493,896 | 151,728,633 | |
Equity Residential (SBI) | 55,200 | 3,402,528 | |
Gaming & Leisure Properties | 534,446 | 21,981,764 | |
Healthcare Trust of America, Inc. | 1,101,860 | 31,127,545 | |
Invitation Homes, Inc. | 397,200 | 11,709,456 | |
iStar Financial, Inc. (a) | 3,966,513 | 60,211,667 | |
Lamar Advertising Co. Class A | 282,100 | 22,788,038 | |
Lexington Corporate Properties Trust | 6,320,374 | 64,783,834 | |
Mid-America Apartment Communities, Inc. | 991,906 | 131,675,522 | |
Monmouth Real Estate Investment Corp. Class A | 2,018,169 | 34,974,869 | |
NexPoint Residential Trust, Inc. | 297,629 | 11,747,417 | |
Public Storage | 65,300 | 14,863,586 | |
Retail Value, Inc. | 274,131 | 4,279,185 | |
Sabra Health Care REIT, Inc. | 1,554,475 | 26,099,635 | |
Safehold, Inc. | 80,609 | 5,931,210 | |
SITE Centers Corp. | 1,602,638 | 17,773,255 | |
Terreno Realty Corp. | 119,528 | 6,762,894 | |
UMH Properties, Inc. | 433,623 | 6,374,258 | |
Ventas, Inc. | 1,145,386 | 52,767,933 | |
Washington REIT (SBI) | 1,310,647 | 28,755,595 | |
Weyerhaeuser Co. | 849,000 | 26,480,310 | |
1,304,037,856 | |||
Real Estate Management & Development - 0.4% | |||
CBRE Group, Inc. (c) | 344,600 | 21,013,708 | |
TOTAL REAL ESTATE | 1,325,051,564 | ||
TOTAL COMMON STOCKS | |||
(Cost $1,531,677,435) | 1,787,388,703 | ||
Preferred Stocks - 24.5% | |||
Convertible Preferred Stocks - 1.2% | |||
FINANCIALS - 0.5% | |||
Mortgage Real Estate Investment Trusts - 0.5% | |||
Great Ajax Corp. 7.25% (a) | 611,442 | 14,992,558 | |
Ready Capital Corp. 7.00% | 404,062 | 9,745,975 | |
24,738,533 | |||
REAL ESTATE - 0.7% | |||
Equity Real Estate Investment Trusts (REITs) - 0.6% | |||
Braemar Hotels & Resorts, Inc. 5.50% | 98,091 | 1,608,692 | |
Lexington Corporate Properties Trust Series C, 6.50% | 440,102 | 24,270,243 | |
RLJ Lodging Trust Series A, 1.95% | 31,585 | 812,998 | |
Wheeler REIT, Inc. 8.75% (c) | 510,973 | 8,930,159 | |
35,622,092 | |||
Real Estate Management & Development - 0.1% | |||
Landmark Infrastructure Partners LP 3 month U.S. LIBOR + 4.690% 6.856% (d)(e) | 189,650 | 4,890,312 | |
TOTAL REAL ESTATE | 40,512,404 | ||
TOTAL CONVERTIBLE PREFERRED STOCKS | 65,250,937 | ||
Nonconvertible Preferred Stocks - 23.3% | |||
ENERGY - 0.7% | |||
Oil, Gas & Consumable Fuels - 0.7% | |||
DCP Midstream Partners LP: | |||
7.95% (d) | 328,262 | 6,985,415 | |
Series B, 7.875% (d) | 256,314 | 5,513,314 | |
Enbridge, Inc.: | |||
Series 1 5 year U.S. Treasury Index + 3.140% 5.949% (d)(e) | 498,275 | 9,616,708 | |
Series L 5 year U.S. Treasury Index + 3.150% 4.959% (d)(e) | 111,400 | 2,060,900 | |
Energy Transfer Partners LP 7.60% (d) | 471,751 | 10,402,110 | |
Global Partners LP 9.75% (d) | 161,507 | 4,110,595 | |
38,689,042 | |||
FINANCIALS - 13.9% | |||
Mortgage Real Estate Investment Trusts - 13.7% | |||
AG Mortgage Investment Trust, Inc.: | |||
8.00% | 611,362 | 12,233,354 | |
8.25% | 38,510 | 797,542 | |
Series C 8.00% (d) | 638,138 | 12,462,835 | |
AGNC Investment Corp.: | |||
6.125% (d) | 653,900 | 15,693,600 | |
6.875% (d) | 874,072 | 21,510,912 | |
Series C, 7.00% (d) | 958,602 | 24,128,012 | |
Series E 6.50% (d) | 1,171,418 | 28,547,457 | |
Annaly Capital Management, Inc.: | |||
6.75% (d) | 535,092 | 13,473,617 | |
Series F, 6.95% (d) | 2,131,060 | 53,255,189 | |
Series G, 6.50% (d) | 1,229,790 | 30,240,536 | |
Anworth Mortgage Asset Corp. Series A, 8.625% | 235,600 | 5,899,424 | |
Arbor Realty Trust, Inc.: | |||
Series A, 8.25% | 186,964 | 4,816,211 | |
Series B, 7.75% | 237,325 | 5,997,203 | |
Series C, 8.50% | 98,875 | 2,592,997 | |
Arlington Asset Investment Corp.: | |||
6.625% | 240,823 | 6,016,963 | |
8.25% (d) | 147,125 | 3,194,084 | |
Armour Residential REIT, Inc. Series C 7.00% | 102,500 | 2,514,838 | |
Capstead Mortgage Corp. Series E, 7.50% | 488,533 | 11,988,600 | |
Cherry Hill Mortgage Investment Corp.: | |||
8.25% (d) | 245,925 | 5,821,045 | |
Series A, 8.20% | 248,750 | 6,268,624 | |
Chimera Investment Corp.: | |||
8.00% (d) | 938,131 | 21,323,718 | |
Series A, 8.00% | 202,500 | 4,882,275 | |
Series B, 8.00% (d) | 2,133,504 | 49,859,988 | |
Series C, 7.75% (d) | 2,359,586 | 53,609,794 | |
Dynex Capital, Inc.: | |||
Series B, 7.625% (a) | 154,355 | 3,877,398 | |
Series C 6.90% (a)(d) | 372,483 | 9,278,552 | |
Ellington Financial LLC 6.75% (d) | 368,770 | 8,666,095 | |
Exantas Capital Corp. 8.625% (d) | 236,708 | 5,142,481 | |
Invesco Mortgage Capital, Inc.: | |||
7.50% (d) | 1,602,689 | 38,304,267 | |
Series A, 7.75% | 121,967 | 3,002,828 | |
Series B, 7.75% (d) | 898,846 | 21,689,154 | |
MFA Financial, Inc.: | |||
6.50% (d) | 1,093,451 | 23,771,625 | |
Series B, 7.50% | 609,332 | 14,380,235 | |
New Residential Investment Corp.: | |||
7.125% (d) | 1,524,162 | 33,943,088 | |
Series A 7.50% (d) | 964,527 | 22,367,381 | |
Series C 6.375% (d) | 1,257,554 | 26,484,087 | |
New York Mortgage Trust, Inc.: | |||
Series B, 7.75% | 281,092 | 6,538,228 | |
Series C, 7.875% | 317,125 | 7,347,247 | |
Series D, 8.00% (d) | 317,918 | 7,281,912 | |
PennyMac Mortgage Investment Trust: | |||
8.125% (d) | 414,254 | 10,087,085 | |
Series B, 8.00% (d) | 750,421 | 18,542,903 | |
Ready Capital Corp. Series C 6.20% | 378,550 | 9,596,243 | |
Two Harbors Investment Corp.: | |||
7.50% | 491,117 | 11,718,052 | |
7.75% | 117,103 | 2,839,748 | |
Series A, 8.125% (d) | 697,850 | 17,027,540 | |
Series B, 7.625% (d) | 1,483,255 | 34,515,344 | |
Series C, 7.25% (d) | 899,517 | 20,239,133 | |
753,769,444 | |||
Real Estate Management & Development - 0.2% | |||
Brookfield Properties Corp. Series EE, 5.10% (d) | 679,025 | 11,060,873 | |
TOTAL FINANCIALS | 764,830,317 | ||
REAL ESTATE - 8.6% | |||
Equity Real Estate Investment Trusts (REITs) - 8.5% | |||
American Finance Trust, Inc.: | |||
7.50% | 874,787 | 22,018,389 | |
Series C 7.375% (c) | 250,000 | 6,235,000 | |
American Homes 4 Rent: | |||
6.25% | 98,905 | 2,621,972 | |
Series D, 6.50% | 189,633 | 4,820,471 | |
Series E, 6.35% | 250,075 | 6,364,409 | |
Series F, 5.875% | 248,009 | 6,340,152 | |
Series G, 5.875% | 199,750 | 5,145,560 | |
Armada Hoffler Properties, Inc. 6.75% | 196,750 | 5,054,508 | |
Ashford Hospitality Trust, Inc.: | |||
Series D, 8.45% | 190,073 | 3,265,454 | |
Series F, 7.375% | 327,400 | 5,428,292 | |
Series G, 7.375% | 238,068 | 4,149,525 | |
Series H, 7.50% | 231,565 | 3,936,605 | |
Series I, 7.50% | 323,909 | 5,341,259 | |
Bluerock Residential Growth (REIT), Inc.: | |||
Series A, 8.25% | 190,697 | 4,819,867 | |
Series C, 7.625% | 252,994 | 6,476,646 | |
Series D, 7.125% | 168,100 | 4,308,403 | |
Braemar Hotels & Resorts, Inc. Series D, 8.25% | 173,050 | 3,322,560 | |
Cedar Realty Trust, Inc.: | |||
Series B, 7.25% | 181,872 | 4,454,045 | |
Series C, 6.50% | 291,600 | 6,499,764 | |
Centerspace Series C, 6.625% | 317,300 | 8,315,005 | |
City Office REIT, Inc. Series A, 6.625% | 178,475 | 4,538,619 | |
Colony Capital, Inc.: | |||
Series G, 7.50% | 583,284 | 13,923,047 | |
Series H, 7.125% | 747,701 | 17,309,278 | |
Series I, 7.15% | 914,492 | 21,490,562 | |
Series J, 7.15% | 1,151,024 | 26,795,839 | |
DiamondRock Hospitality Co. 8.25% | 195,100 | 5,205,268 | |
Digital Realty Trust, Inc. Series C, 6.625% | 83,050 | 2,132,724 | |
Farmland Partners, Inc. Series B, 6.00% | 623,150 | 15,946,409 | |
Gladstone Commercial Corp.: | |||
6.625% | 98,875 | 2,543,065 | |
Series D, 7.00% | 532,775 | 13,452,569 | |
Gladstone Land Corp.: | |||
Series A, 6.375% | 63,275 | 1,590,734 | |
Series D 5.00% | 30,000 | 779,700 | |
Global Medical REIT, Inc. Series A, 7.50% | 150,848 | 3,898,229 | |
Global Net Lease, Inc.: | |||
Series A, 7.25% | 531,595 | 13,768,311 | |
Series B 6.875% | 294,000 | 7,391,160 | |
Healthcare Trust, Inc. Series A 7.375% | 128,500 | 3,116,125 | |
Hersha Hospitality Trust: | |||
Series C, 6.875% | 49,450 | 956,363 | |
Series D, 6.50% | 197,750 | 3,654,420 | |
iStar Financial, Inc.: | |||
Series D, 8.00% | 340,621 | 8,730,116 | |
Series G, 7.65% | 386,473 | 9,743,023 | |
Series I, 7.50% | 552,696 | 13,889,250 | |
Monmouth Real Estate Investment Corp. Series C, 6.125% | 342,800 | 8,662,556 | |
National Storage Affiliates Trust Series A, 6.00% | 91,575 | 2,420,327 | |
Office Properties Income Trust 5.875% | 200,225 | 5,075,704 | |
Pebblebrook Hotel Trust: | |||
6.30% | 269,997 | 5,993,933 | |
6.375% | 371,094 | 8,357,037 | |
Series C, 6.50% | 232,046 | 5,239,599 | |
Series D, 6.375% | 369,760 | 8,271,531 | |
Pennsylvania (REIT): | |||
Series B, 7.375% | 99,385 | 1,265,171 | |
Series C, 7.20% | 50,325 | 635,605 | |
Series D, 6.875% | 150,100 | 1,873,248 | |
Plymouth Industrial REIT, Inc. Series A, 7.50% | 171,625 | 4,524,979 | |
Prologis (REIT), Inc. Series Q, 8.54% | 93,396 | 6,691,823 | |
PS Business Parks, Inc. Series Z 4.875% | 52,000 | 1,369,680 | |
QTS Realty Trust, Inc. Series A, 7.125% | 29,675 | 794,400 | |
Rexford Industrial Realty, Inc.: | |||
Series A, 5.875% | 133,500 | 3,373,545 | |
Series B, 5.875% | 78,600 | 2,055,390 | |
Series C 5.625% | 68,225 | 1,810,692 | |
Saul Centers, Inc.: | |||
Series D, 6.125% | 82,775 | 2,015,571 | |
Series E 6.00% | 76,841 | 1,793,469 | |
Seritage Growth Properties Series A, 7.00% | 91,986 | 1,673,225 | |
SITE Centers Corp. Series K, 6.25% | 226,338 | 5,662,977 | |
Sotherly Hotels, Inc.: | |||
Series B, 8.00% | 67,250 | 941,493 | |
Series C, 7.875% | 107,000 | 1,495,860 | |
Spirit Realty Capital, Inc. Series A, 6.00% | 94,125 | 2,491,489 | |
Stag Industrial, Inc. Series C, 6.875% | 82,075 | 2,087,742 | |
Summit Hotel Properties, Inc.: | |||
Series D, 6.45% | 216,857 | 5,135,174 | |
Series E, 6.25% | 300,802 | 6,954,542 | |
Sunstone Hotel Investors, Inc.: | |||
Series E, 6.95% | 41,525 | 1,010,121 | |
Series F, 6.45% | 83,050 | 1,985,833 | |
UMH Properties, Inc.: | |||
Series C, 6.75% | 430,965 | 10,920,653 | |
Series D, 6.375% | 513,725 | 12,730,106 | |
Urstadt Biddle Properties, Inc.: | |||
Series H, 6.25% | 281,325 | 7,002,179 | |
Series K 5.875% | 69,225 | 1,696,013 | |
VEREIT, Inc. Series F, 6.70% | 672,084 | 17,198,630 | |
Washington Prime Group, Inc.: | |||
Series H, 7.50% | 181,934 | 3,016,466 | |
Series I, 6.875% | 284,728 | 4,396,200 | |
468,395,660 | |||
Real Estate Management & Development - 0.1% | |||
Brookfield Property Partners LP: | |||
5.75% | 43,000 | 996,310 | |
6.50% | 34,125 | 843,570 | |
Landmark Infrastructure Partners LP Series B, 7.90% | 116,375 | 2,929,159 | |
4,769,039 | |||
TOTAL REAL ESTATE | 473,164,699 | ||
UTILITIES - 0.1% | |||
Multi-Utilities - 0.1% | |||
Brookfield Infrastructure Partners LP Series 5, 5.35% (d) | 182,825 | 3,601,456 | |
TOTAL NONCONVERTIBLE PREFERRED STOCKS | 1,280,285,514 | ||
TOTAL PREFERRED STOCKS | |||
(Cost $1,387,379,757) | 1,345,536,451 | ||
Principal Amount | Value | ||
Corporate Bonds - 18.1% | |||
Convertible Bonds - 5.8% | |||
FINANCIALS - 5.3% | |||
Mortgage Real Estate Investment Trusts - 5.3% | |||
Arbor Realty Trust, Inc. 4.75% 11/1/22 | 19,326,000 | 19,555,496 | |
Blackstone Mortgage Trust, Inc. 4.75% 3/15/23 | 3,856,000 | 3,867,307 | |
Granite Point Mortgage Trust, Inc.: | |||
5.625% 12/1/22 (f) | 6,694,000 | 6,268,602 | |
6.375% 10/1/23 | 10,099,000 | 9,202,714 | |
KKR Real Estate Finance Trust, Inc. 6.125% 5/15/23 | 15,629,000 | 15,580,159 | |
MFA Financial, Inc. 6.25% 6/15/24 | 25,352,000 | 25,116,335 | |
New York Mortgage Trust, Inc. 6.25% 1/15/22 | 2,472,000 | 2,473,545 | |
PennyMac Corp. 5.5% 11/1/24 | 34,434,000 | 33,874,448 | |
Redwood Trust, Inc.: | |||
4.75% 8/15/23 | 14,195,000 | 13,522,943 | |
5.625% 7/15/24 | 58,258,000 | 54,827,143 | |
RWT Holdings, Inc. 5.75% 10/1/25 | 36,299,000 | 34,403,137 | |
Two Harbors Investment Corp. 6.25% 1/15/26 | 18,400,000 | 18,524,550 | |
Western Asset Mortgage Capital Corp. 6.75% 10/1/22 | 63,526,000 | 56,538,140 | |
293,754,519 | |||
REAL ESTATE - 0.5% | |||
Equity Real Estate Investment Trusts (REITs) - 0.5% | |||
Colony Capital, Inc. 5% 4/15/23 | 25,791,000 | 25,307,419 | |
TOTAL CONVERTIBLE BONDS | 319,061,938 | ||
Nonconvertible Bonds - 12.3% | |||
CONSUMER DISCRETIONARY - 2.8% | |||
Hotels, Restaurants & Leisure - 0.2% | |||
Marriott Ownership Resorts, Inc. 6.5% 9/15/26 | 3,955,000 | 4,113,833 | |
Times Square Hotel Trust 8.528% 8/1/26 (f) | 4,874,656 | 5,325,429 | |
9,439,262 | |||
Household Durables - 2.6% | |||
Adams Homes, Inc. 7.5% 2/15/25 (f) | 9,530,000 | 10,077,975 | |
Ashton Woods U.S.A. LLC/Ashton Woods Finance Co.: | |||
6.625% 1/15/28 (f) | 9,925,000 | 10,495,688 | |
6.75% 8/1/25 (f) | 26,458,000 | 27,582,465 | |
9.875% 4/1/27 (f) | 21,220,000 | 23,872,500 | |
Brookfield Residential Properties, Inc./Brookfield Residential U.S. Corp.: | |||
4.875% 2/15/30 (f) | 1,590,000 | 1,630,736 | |
6.25% 9/15/27 (f) | 8,533,000 | 9,002,315 | |
Century Communities, Inc.: | |||
5.875% 7/15/25 | 2,982,000 | 3,101,280 | |
6.75% 6/1/27 | 6,230,000 | 6,671,582 | |
LGI Homes, Inc. 6.875% 7/15/26 (f) | 19,116,000 | 20,191,275 | |
M/I Homes, Inc. 5.625% 8/1/25 | 10,842,000 | 11,262,128 | |
New Home Co. LLC 7.25% 10/15/25 (f) | 3,960,000 | 4,093,650 | |
Picasso Finance Sub, Inc. 6.125% 6/15/25 (f) | 4,000,000 | 4,268,840 | |
TRI Pointe Homes, Inc. 5.25% 6/1/27 | 11,458,000 | 12,443,388 | |
144,693,822 | |||
TOTAL CONSUMER DISCRETIONARY | 154,133,084 | ||
ENERGY - 0.2% | |||
Oil, Gas & Consumable Fuels - 0.2% | |||
EG Global Finance PLC: | |||
6.75% 2/7/25 (f) | 7,750,000 | 7,982,500 | |
8.5% 10/30/25 (f) | 1,682,000 | 1,787,125 | |
Global Partners LP/GLP Finance Corp. 7% 8/1/27 | 3,955,000 | 4,177,469 | |
13,947,094 | |||
FINANCIALS - 0.4% | |||
Diversified Financial Services - 0.4% | |||
Five Point Operation Co. LP 7.875% 11/15/25 (f) | 18,463,000 | 19,487,973 | |
HEALTH CARE - 0.6% | |||
Health Care Providers & Services - 0.6% | |||
Sabra Health Care LP: | |||
3.9% 10/15/29 | 989,000 | 1,040,098 | |
4.8% 6/1/24 | 7,475,000 | 8,108,275 | |
5.125% 8/15/26 | 20,264,000 | 22,888,740 | |
32,037,113 | |||
INDUSTRIALS - 0.1% | |||
Trading Companies & Distributors - 0.1% | |||
Williams Scotsman International, Inc. 4.625% 8/15/28 (f) | 4,250,000 | 4,377,500 | |
REAL ESTATE - 8.2% | |||
Equity Real Estate Investment Trusts (REITs) - 4.6% | |||
CBL & Associates LP: | |||
4.6% 10/15/24 (g) | 18,229,000 | 6,744,730 | |
5.25% 12/1/23 (g) | 11,371,000 | 4,207,270 | |
5.95% 12/15/26 (g) | 10,317,000 | 3,817,290 | |
CTR Partnership LP/CareTrust Capital Corp. 5.25% 6/1/25 | 6,992,000 | 7,217,142 | |
ESH Hospitality, Inc. 5.25% 5/1/25 (f) | 2,154,000 | 2,197,080 | |
Global Net Lease, Inc. / Global Net Lease Operating Partnership LP 3.75% 12/15/27 (f) | 5,075,000 | 5,167,455 | |
iStar Financial, Inc.: | |||
4.25% 8/1/25 | 16,925,000 | 16,671,125 | |
4.75% 10/1/24 | 25,920,000 | 26,586,533 | |
5.5% 2/15/26 | 16,985,000 | 17,261,006 | |
Office Properties Income Trust: | |||
4.15% 2/1/22 | 11,045,000 | 11,270,019 | |
4.25% 5/15/24 | 4,974,000 | 5,241,045 | |
4.5% 2/1/25 | 21,056,000 | 22,445,681 | |
Omega Healthcare Investors, Inc.: | |||
4.5% 4/1/27 | 2,434,000 | 2,738,012 | |
4.95% 4/1/24 | 2,866,000 | 3,144,299 | |
Senior Housing Properties Trust: | |||
4.75% 5/1/24 | 44,393,000 | 45,502,825 | |
4.75% 2/15/28 | 9,933,000 | 9,933,000 | |
6.75% 12/15/21 | 7,910,000 | 8,068,200 | |
9.75% 6/15/25 | 21,500,000 | 24,396,050 | |
Service Properties Trust: | |||
4.65% 3/15/24 | 3,500,000 | 3,475,500 | |
5% 8/15/22 | 3,141,000 | 3,164,558 | |
7.5% 9/15/25 | 7,950,000 | 8,949,679 | |
Uniti Group LP / Uniti Group Finance, Inc. 6.5% 2/15/29 (f)(h) | 6,000,000 | 6,000,000 | |
Uniti Group, Inc. 7.875% 2/15/25 (f) | 5,000,000 | 5,367,275 | |
VEREIT Operating Partnership LP 4.875% 6/1/26 | 436,000 | 513,143 | |
XHR LP 6.375% 8/15/25 (f) | 4,250,000 | 4,441,250 | |
254,520,167 | |||
Real Estate Management & Development - 3.6% | |||
DTZ U.S. Borrower LLC 6.75% 5/15/28 (f) | 1,000,000 | 1,087,700 | |
Forestar Group, Inc.: | |||
5% 3/1/28 (f) | 7,000,000 | 7,297,500 | |
8% 4/15/24 (f) | 20,132,000 | 21,113,435 | |
Greystar Real Estate Partners 5.75% 12/1/25 (f) | 13,480,000 | 13,884,400 | |
Howard Hughes Corp.: | |||
4.125% 2/1/29 (f)(h) | 12,000,000 | 11,947,320 | |
5.375% 3/15/25 (f) | 22,912,000 | 23,622,501 | |
5.375% 8/1/28 (f) | 7,655,000 | 8,076,025 | |
Kennedy-Wilson, Inc.: | |||
4.75% 3/1/29 (h) | 20,000,000 | 20,050,000 | |
5.875% 4/1/24 | 48,339,000 | 49,088,255 | |
Mack-Cali Realty LP: | |||
3.15% 5/15/23 | 10,000 | 10,100 | |
4.5% 4/18/22 | 517,000 | 528,510 | |
Mattamy Group Corp. 5.25% 12/15/27 (f) | 13,411,000 | 14,115,078 | |
Realogy Group LLC/Realogy Co-Issuer Corp. 7.625% 6/15/25 (f) | 3,025,000 | 3,285,906 | |
Taylor Morrison Communities, Inc./Monarch Communities, Inc.: | |||
5.875% 6/15/27 (f) | 1,798,000 | 2,031,237 | |
6.625% 7/15/27 (f) | 4,573,000 | 4,933,124 | |
Washington Prime Group LP 6.45% 8/15/24 | 23,181,000 | 16,347,473 | |
197,418,564 | |||
TOTAL REAL ESTATE | 451,938,731 | ||
TOTAL NONCONVERTIBLE BONDS | 675,921,495 | ||
TOTAL CORPORATE BONDS | |||
(Cost $999,058,619) | 994,983,433 | ||
Asset-Backed Securities - 1.5% | |||
American Homes 4 Rent: | |||
Series 2015-SFR1 Class F, 5.885% 4/17/52 (f) | 2,000,000 | 2,194,446 | |
Series 2015-SFR2: | |||
Class E, 6.07% 10/17/52 (f) | 8,259,000 | 9,281,839 | |
Class XS, 0% 10/17/52 (d)(f)(i)(j) | 4,621,449 | 46 | |
Capital Trust RE CDO Ltd. Series 2005-1A Class D, 1 month U.S. LIBOR + 1.500% 3.3464% 3/20/50 (d)(e)(f)(j) | 2,250,000 | 225 | |
Conseco Finance Securitizations Corp. Series 2002-2 Class M2, 9.163% 3/1/33 | 375,838 | 355,288 | |
GPMT Ltd. Series 2019-FL2 Class D, 1 month U.S. LIBOR + 2.950% 3.1016% 2/22/36 (d)(e)(f) | 2,142,000 | 2,099,769 | |
Green Tree Financial Corp.: | |||
Series 1996-4 Class M1, 7.75% 6/15/27 (d) | 503,491 | 510,430 | |
Series 1997-3 Class M1, 7.53% 3/15/28 | 3,699,276 | 3,753,389 | |
Home Partners of America Trust: | |||
Series 2017-1 Class F, 1 month U.S. LIBOR + 3.530% 3.692% 7/17/34 (d)(e)(f) | 6,318,500 | 6,316,831 | |
Series 2018-1 Class F, 1 month U.S. LIBOR + 2.350% 2.503% 7/17/37 (d)(e)(f) | 3,896,000 | 3,899,587 | |
Series 2019-2 Class F, 3.866% 10/19/39 (f) | 2,931,106 | 2,955,443 | |
Kref Ltd. Series 2018-FL1 Class D, 1 month U.S. LIBOR + 2.550% 2.6765% 6/15/36 (d)(e)(f) | 2,560,000 | 2,561,439 | |
Lehman ABS Manufactured Housing Contract Trust Series 2001-B Class M2, 7.17% 4/15/40 | 557,798 | 468,624 | |
Merit Securities Corp. Series 13 Class M1, 7.7764% 12/28/33 (d) | 1,192,309 | 1,239,019 | |
Progress Residential Trust: | |||
Series 2017-SFR1 Class F, 5.35% 8/17/34 (f) | 3,073,000 | 3,136,317 | |
Series 2018-SFR2 Class F, 4.953% 8/17/35 (f) | 5,083,000 | 5,156,035 | |
Series 2018-SFR3: | |||
Class F, 5.368% 10/17/35 (f) | 3,412,000 | 3,480,810 | |
Class G, 5.618% 10/17/35 (f) | 4,000,000 | 4,064,281 | |
Series 2019-SFR1 Class F, 5.061% 8/17/35 (f) | 3,000,000 | 3,086,691 | |
Series 2019-SFR2 Class F, 4.837% 5/17/36 (f) | 3,902,000 | 3,802,890 | |
Series 2020-SFR1 Class H, 5.268% 4/17/37 (f) | 3,633,000 | 3,763,000 | |
Taberna Preferred Funding III Ltd. Series 2005-3A Class D, 3 month U.S. LIBOR + 2.650% 3.1909% 2/5/36 (d)(e)(f)(j) | 4,890,649 | 367 | |
Tricon American Homes: | |||
Series 2017-SFR1 Class F, 5.151% 9/17/34 (f) | 8,442,000 | 8,617,443 | |
Series 2017-SFR2 Class F, 5.104% 1/17/36 (f) | 3,785,000 | 3,958,009 | |
Series 2018-SFR1 Class F, 4.96% 5/17/37 (f) | 8,282,000 | 8,846,156 | |
VB-S1 Issuer LLC Series 2018-1A Class F, 5.25% 2/15/48 (f) | 1,354,000 | 1,395,337 | |
TOTAL ASSET-BACKED SECURITIES | |||
(Cost $86,342,961) | 84,943,711 | ||
Collateralized Mortgage Obligations - 0.0% | |||
U.S. Government Agency - 0.0% | |||
Fannie Mae REMIC Trust: | |||
Series 2002-W1 subordinate REMIC pass thru certificates, Class 3B3, 3.6619% 2/25/42 (d)(f) | 32,922 | 8,957 | |
Series 2003-W10 subordinate REMIC pass thru certificates, Class 2B3, 3.6156% 6/25/43 (d)(f) | 58,489 | 33,172 | |
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS | |||
(Cost $72,072) | 42,129 | ||
Commercial Mortgage Securities - 11.9% | |||
Ashford Hospitality Trust floater Series 2018-ASHF Class E, 1 month U.S. LIBOR + 3.100% 3.226% 4/15/35 (d)(e)(f) | 3,000,000 | 2,720,317 | |
BAMLL Commercial Mortgage Securities Trust floater Series 2019-AHT Class C, 1 month U.S. LIBOR + 2.000% 2.126% 3/15/34 (d)(e)(f) | 7,168,000 | 7,060,499 | |
BANK: | |||
Series 2017-BNK8 Class E, 2.8% 11/15/50 (f) | 11,374,393 | 7,957,433 | |
Series 2018-BN12 Class D, 3% 5/15/61 (f) | 1,682,000 | 1,455,476 | |
Benchmark Mortgage Trust: | |||
sequential payer Series 2019-B14: | |||
Class 225D, 3.2943% 12/15/62 (d)(f) | 3,427,000 | 3,294,289 | |
Class 225E, 3.2943% 12/15/62 (d)(f) | 5,141,000 | 4,529,807 | |
Series 2020-B18 Class AGNG, 4.3885% 7/15/53 (d)(f) | 11,379,000 | 10,691,992 | |
Braemar Hotels & Resorts Trust floater Series 2018-PRME Class E, 1 month U.S. LIBOR + 2.400% 2.526% 6/15/35 (d)(e)(f) | 1,500,000 | 1,342,047 | |
BX Commercial Mortgage Trust floater: | |||
Series 2019-CALM Class E, 1 month U.S. LIBOR + 2.000% 2.126% 11/15/32 (d)(e)(f) | 6,426,000 | 6,418,901 | |
Series 2020-BXLP Class G, 1 month U.S. LIBOR + 2.500% 2.626% 12/15/36 (d)(e)(f) | 6,007,502 | 6,018,680 | |
BX Trust: | |||
floater: | |||
Series 2018-IND: | |||
Class G, 1 month U.S. LIBOR + 2.050% 2.176% 11/15/35 (d)(e)(f) | 3,281,600 | 3,288,693 | |
Class H, 1 month U.S. LIBOR + 3.000% 3.126% 11/15/35 (d)(e)(f) | 6,206,900 | 6,216,619 | |
Series 2019-ATL Class E, 1 month U.S. LIBOR + 2.230% 2.3626% 10/15/36 (d)(e)(f) | 2,500,000 | 2,350,006 | |
Series 2019-IMC Class G, 1 month U.S. LIBOR + 3.600% 3.726% 4/15/34 (d)(e)(f) | 5,181,000 | 4,766,545 | |
Series 2019-XL Class G, 1 month U.S. LIBOR + 2.300% 2.426% 10/15/36 (d)(e)(f) | 2,444,442 | 2,448,357 | |
Series 2019-OC11 Class E, 4.0755% 12/9/41 (d)(f) | 20,085,000 | 20,822,714 | |
CALI Mortgage Trust Series 2019-101C Class F, 4.3244% 3/10/39 (d)(f) | 4,099,000 | 3,871,559 | |
CAMB Commercial Mortgage Trust floater Series 2019-LIFE Class G, 1 month U.S. LIBOR + 3.250% 3.376% 12/15/37 (d)(e)(f) | 7,428,000 | 7,179,679 | |
CD Mortgage Trust Series 2017-CD3 Class D, 3.25% 2/10/50 (f) | 3,353,000 | 2,793,367 | |
CGMS Commercial Mortgage Trust Series 2017-MDRB: | |||
Class D, 1 month U.S. LIBOR + 3.250% 3.376% 7/15/30 (d)(e)(f) | 6,131,000 | 5,698,777 | |
Class E, 1 month U.S. LIBOR + 3.870% 3.9975% 7/15/30 (d)(e)(f) | 6,666,000 | 5,880,080 | |
CHC Commercial Mortgage Trust floater Series 2019-CHC Class F, 1 month U.S. LIBOR + 2.600% 2.7342% 6/15/34 (d)(e)(f) | 1,493,555 | 1,214,280 | |
Citigroup Commercial Mortgage Trust: | |||
Series 2013-GC15 Class D, 5.181% 9/10/46 (d)(f) | 5,254,000 | 5,456,183 | |
Series 2016-C3 Class D, 3% 11/15/49 (f) | 7,010,000 | 5,280,697 | |
COMM Mortgage Trust: | |||
floater Series 2018-HCLV: | |||
Class F, 1 month U.S. LIBOR + 3.050% 3.2086% 9/15/33 (d)(e)(f) | 4,265,000 | 3,776,201 | |
Class G, 1 month U.S. LIBOR + 5.050% 5.215% 9/15/33 (d)(e)(f) | 4,265,000 | 3,397,166 | |
sequential payer Series 2013-LC6 Class E, 3.5% 1/10/46 (f) | 4,741,000 | 3,032,613 | |
Series 2012-CR1: | |||
Class D, 5.3192% 5/15/45 (d)(f) | 5,550,000 | 4,197,857 | |
Class G, 2.462% 5/15/45 (f)(j) | 6,346,000 | 1,231,348 | |
Series 2012-LC4 Class C, 5.5349% 12/10/44 (d) | 1,978,000 | 1,802,096 | |
Series 2013-CR10 Class D, 4.7891% 8/10/46 (d)(f) | 4,544,000 | 4,520,543 | |
Series 2013-CR12 Class D, 5.0741% 10/10/46 (d)(f) | 1,959,000 | 1,062,226 | |
Series 2013-LC6 Class D, 4.3134% 1/10/46 (d)(f) | 8,301,000 | 7,979,743 | |
Series 2014-CR17 Class E, 4.8469% 5/10/47 (d)(f)(j) | 3,098,000 | 1,706,405 | |
Series 2014-UBS2 Class D, 4.9928% 3/10/47 (d)(f) | 3,713,000 | 2,960,099 | |
Series 2017-CD4 Class D, 3.3% 5/10/50 (f) | 2,769,000 | 2,479,276 | |
COMM Trust Series 2017-COR2 Class D, 3% 9/10/50 (f) | 2,769,000 | 2,559,055 | |
Commercial Mortgage Trust pass-thru certificates Series 2012-CR2: | |||
Class D, 4.8307% 8/15/45 (d)(f) | 4,500,000 | 4,167,096 | |
Class E, 4.8307% 8/15/45 (d)(f) | 8,000,000 | 6,065,429 | |
Class F, 4.25% 8/15/45 (f) | 2,000,000 | 1,166,766 | |
Credit Suisse Mortgage Trust floater Series 2019-SKLZ Class D, 1 month U.S. LIBOR + 3.600% 3.726% 1/15/34 (d)(e)(f) | 7,788,000 | 7,371,586 | |
CSAIL Commercial Mortgage Trust: | |||
Series 2017-C8 Class D, 4.4701% 6/15/50 (f) | 4,297,000 | 3,518,561 | |
Series 2017-CX10 Class UESD, 4.2366% 10/15/32 (d)(f) | 7,129,000 | 6,871,019 | |
Series 2017-CX9 Class D, 4.1485% 9/15/50 (d)(f) | 2,539,000 | 2,031,857 | |
CSMC Trust floater Series 2017-CHOP Class F, 1 month U.S. LIBOR + 4.350% 4.4765% 7/15/32 (d)(e)(f) | 6,000,000 | 4,865,601 | |
DBCCRE Mortgage Trust Series 2014-ARCP Class E, 4.9345% 1/10/34 (d)(f) | 10,732,000 | 10,833,612 | |
DBUBS Mortgage Trust: | |||
Series 2011-LC1A: | |||
Class E, 5.5353% 11/10/46 (d)(f) | 13,874,000 | 13,862,676 | |
Class G, 4.652% 11/10/46 (f) | 12,222,000 | 11,488,680 | |
Series 2011-LC3A Class D, 5.3362% 8/10/44 (d)(f) | 3,945,000 | 3,676,523 | |
Freddie Mac: | |||
pass-thru certificates Series K013 Class X3, 2.9775% 1/25/43 (d)(i) | 1,677,376 | 758 | |
Series KAIV Class X2, 3.5908% 6/25/41 (d)(i) | 7,430,000 | 23,556 | |
GPMT Ltd. floater Series 2018-FL1 Class D, 1 month U.S. LIBOR + 2.950% 3.1016% 11/21/35 (d)(e)(f) | 2,500,000 | 2,437,500 | |
GS Mortgage Securities Corp. Trust floater Series 2019-SOHO Class F, 1 month U.S. LIBOR + 2.200% 2.326% 6/15/36 (d)(e)(f) | 2,000,000 | 1,737,249 | |
GS Mortgage Securities Trust: | |||
floater Series 2018-RIVR Class G, 1 month U.S. LIBOR + 2.600% 2.726% 7/15/35 (d)(e)(f) | 3,808,000 | 3,107,515 | |
Series 2011-GC5: | |||
Class C, 5.3762% 8/10/44 (d)(f) | 8,899,000 | 7,484,064 | |
Class D, 5.3762% 8/10/44 (d)(f) | 2,733,635 | 1,671,971 | |
Class E, 5.3762% 8/10/44 (d)(f)(j) | 8,138,000 | 4,555,240 | |
Class F, 4.5% 8/10/44 (f) | 7,897,000 | 2,145,641 | |
Series 2012-GC6: | |||
Class C, 5.6505% 1/10/45 (d)(f) | 3,560,000 | 3,531,820 | |
Class D, 5.6505% 1/10/45 (d)(f) | 6,590,000 | 5,706,369 | |
Class E, 5% 1/10/45 (d)(f) | 7,432,000 | 5,027,758 | |
Series 2012-GCJ7 Class D, 5.6244% 5/10/45 (d)(f) | 10,078,000 | 9,370,284 | |
Series 2012-GCJ9: | |||
Class D, 4.7399% 11/10/45 (d)(f) | 5,503,000 | 5,537,059 | |
Class E, 4.7399% 11/10/45 (d)(f) | 1,908,000 | 1,578,595 | |
Series 2013-GC14 Class D, 4.7428% 8/10/46 (d)(f) | 1,661,000 | 1,372,390 | |
Series 2013-GC16: | |||
Class D, 5.3107% 11/10/46 (d)(f) | 3,708,000 | 3,702,769 | |
Class F, 3.5% 11/10/46 (f) | 7,221,000 | 5,249,090 | |
Hilton U.S.A. Trust: | |||
Series 2016-HHV Class F, 4.1935% 11/5/38 (d)(f) | 8,440,000 | 8,474,470 | |
Series 2016-SFP Class F, 6.1552% 11/5/35 (f) | 7,257,000 | 7,274,359 | |
IMT Trust Series 2017-APTS: | |||
Class EFX, 3.4966% 6/15/34 (d)(f) | 9,213,000 | 8,732,803 | |
Class FFL, 1 month U.S. LIBOR + 2.850% 2.9765% 6/15/34 (d)(e)(f) | 3,532,751 | 3,285,671 | |
Independence Plaza Trust Series 2018-INDP Class E, 4.996% 7/10/35 (f) | 2,896,000 | 2,837,520 | |
JP Morgan Chase Commercial Mortgage Securities Trust: | |||
floater Series 2018-LAQ: | |||
Class C, 1 month U.S. LIBOR + 1.600% 1.759% 6/15/32 (d)(e)(f) | 4,800,000 | 4,781,885 | |
Class E, 1 month U.S. LIBOR + 3.000% 3.35% 6/15/35 (d)(e)(f) | 1,328,800 | 1,315,458 | |
Series 2020-NNN Class FFX, 4.6254% 1/16/37 (f) | 2,000,000 | 1,880,753 | |
JPMBB Commercial Mortgage Securities Trust: | |||
Series 2014-C23 Class UH5, 4.7094% 9/15/47 (f) | 8,640,000 | 7,168,305 | |
Series 2014-C26 Class D, 3.8797% 1/15/48 (d)(f) | 3,398,000 | 3,362,399 | |
JPMCC Commercial Mortgage Securities Trust Series 2016-JP4 Class D, 3.4203% 12/15/49 (d)(f) | 10,126,000 | 8,580,777 | |
JPMDB Commercial Mortgage Securities Trust: | |||
Series 2016-C4 Class D, 3.0873% 12/15/49 (d)(f) | 4,388,000 | 3,717,590 | |
Series 2018-C8 Class D, 3.2433% 6/15/51 (d)(f) | 1,698,000 | 1,440,396 | |
JPMorgan Chase Commercial Mortgage Securities Corp. Series 2012-CBX: | |||
Class C, 5.131% 6/15/45 (d) | 4,479,000 | 4,253,747 | |
Class E, 5.131% 6/15/45 (d)(f) | 5,892,000 | 2,857,598 | |
Class F, 4% 6/15/45 (f) | 8,192,000 | 2,472,065 | |
Class G 4% 6/15/45 (f)(j) | 4,044,000 | 812,462 | |
JPMorgan Chase Commercial Mortgage Securities Trust: | |||
Series 2011-C3: | |||
Class E, 5.7004% 2/15/46 (d)(f) | 13,774,000 | 4,085,779 | |
Class G, 4.409% 2/15/46 (d)(f)(j) | 4,671,000 | 756,623 | |
Class H, 4.409% 2/15/46 (d)(f)(j) | 7,077,000 | 338,615 | |
Series 2011-C4 Class F, 3.873% 7/15/46 (f) | 1,400,000 | 1,365,724 | |
Series 2013-LC11: | |||
Class D, 4.1669% 4/15/46 (d) | 7,722,000 | 5,465,757 | |
Class E, 3.25% 4/15/46 (d)(f) | 472,000 | 297,243 | |
Class F, 3.25% 4/15/46 (d)(f)(j) | 2,518,000 | 1,069,976 | |
Series 2014-DSTY Class E, 3.8046% 6/10/27 (d)(f) | 8,161,000 | 274,636 | |
Series 2018-AON Class F, 4.6132% 7/5/31 (d)(f) | 5,039,000 | 4,987,599 | |
Morgan Stanley BAML Trust: | |||
Series 2012-C6 Class D, 4.6056% 11/15/45 (d)(f)(j) | 2,000,000 | 1,976,286 | |
Series 2012-C6, Class F, 4.6056% 11/15/45 (d)(f)(j) | 2,500,000 | 1,665,829 | |
Series 2013-C12 Class D, 4.7629% 10/15/46 (d)(f)(j) | 7,164,000 | 5,583,617 | |
Series 2013-C13: | |||
Class D, 4.8982% 11/15/46 (d)(f) | 6,218,000 | 5,598,398 | |
Class E, 4.8982% 11/15/46 (d)(f) | 3,341,000 | 2,503,550 | |
Series 2013-C7: | |||
Class D, 4.2361% 2/15/46 (d)(f) | 2,460,000 | 1,555,246 | |
Class E, 4.2361% 2/15/46 (d)(f)(j) | 989,000 | 572,329 | |
Series 2013-C9: | |||
Class C, 4.03% 5/15/46 (d) | 3,302,000 | 3,356,372 | |
Class D, 4.118% 5/15/46 (d)(f) | 5,137,000 | 4,509,841 | |
Series 2016-C30 Class D, 3% 9/15/49 (f) | 2,726,000 | 1,895,658 | |
Morgan Stanley Capital I Trust: | |||
Series 1998-CF1 Class G, 7.35% 7/15/32 (d)(f) | 107,297 | 108,909 | |
Series 2011-C2: | |||
Class D, 5.4513% 6/15/44 (d)(f) | 5,387,000 | 4,454,264 | |
Class F, 5.4513% 6/15/44 (d)(f) | 4,440,000 | 2,476,705 | |
Class XB, 0.3165% 6/15/44 (d)(f)(i) | 55,736,806 | 371,112 | |
Series 2011-C3: | |||
Class D, 5.2443% 7/15/49 (d)(f) | 7,317,000 | 6,531,913 | |
Class E, 5.2443% 7/15/49 (d)(f) | 3,456,000 | 2,662,694 | |
Class F, 5.2443% 7/15/49 (d)(f) | 5,624,050 | 3,494,958 | |
Class G, 5.2443% 7/15/49 (d)(f)(j) | 5,049,500 | 2,623,457 | |
Series 2012-C4 Class D, 5.4185% 3/15/45 (d)(f) | 6,310,000 | 4,366,925 | |
Series 2015-MS1 Class D, 4.0312% 5/15/48 (d)(f) | 10,833,000 | 9,630,370 | |
Series 2015-UBS8 Class D, 3.18% 12/15/48 (f) | 3,051,000 | 1,691,601 | |
Series 2016-BNK2 Class C, 3% 11/15/49 (f) | 2,966,000 | 2,428,891 | |
Motel 6 Trust floater: | |||
Series 2017-M6MZ, Class M, 1 month U.S. LIBOR + 6.920% 7.0851% 8/15/24 (d)(e)(f) | 3,268,680 | 3,138,574 | |
Series 2017-MTL6 Class C, 1 month U.S. LIBOR + 1.400% 1.5586% 8/15/34 (d)(e)(f) | 3,555,685 | 3,555,747 | |
Series 2017-MTL6, Class F, 1 month U.S. LIBOR + 4.250% 4.4086% 8/15/34 (d)(e)(f) | 10,881,193 | 10,857,175 | |
MRCD Series 2019-PARK: | |||
Class G, 2.7175% 12/15/36 (f) | 2,000,000 | 1,860,687 | |
Class J, 4.25% 12/15/36 (f) | 13,468,000 | 12,439,100 | |
MSCCG Trust: | |||
floater Series 2018-SELF Class E, 1 month U.S. LIBOR + 2.150% 2.3086% 10/15/37 (d)(e)(f) | 5,061,000 | 5,091,066 | |
Series 2016-SNR: | |||
Class D, 6.55% 11/15/34 (f) | 6,706,196 | 6,657,664 | |
Class E, 6.8087% 11/15/34 (f) | 9,551,450 | 9,040,946 | |
MSJP Commercial Securities Mortgage Trust Series 2015-HAUL Class E, 4.851% 9/5/47 (d)(f) | 1,500,000 | 1,170,964 | |
Natixis Commercial Mortgage Securities Trust: | |||
floater Series 2018-FL1: | |||
Class WAN1, 1 month U.S. LIBOR + 2.750% 2.9086% 6/15/35 (d)(e)(f) | 1,743,000 | 1,655,840 | |
Class WAN2, 1 month U.S. LIBOR + 3.750% 3.9086% 6/15/35 (d)(e)(f) | 651,000 | 616,152 | |
Series 2019-1776: | |||
Class E, 3.9017% 10/15/36 (f) | 4,000,000 | 3,919,408 | |
Class F, 4.2988% 10/15/36 (f) | 3,454,000 | 3,268,041 | |
Series 2020-2PAC Class AMZ3, 3.5% 1/15/37 (d)(f) | 2,502,675 | 2,334,036 | |
Progress Residential Trust Series 2019-SFR3 Class F, 3.867% 9/17/36 (f) | 1,000,000 | 1,027,404 | |
Providence Place Group Ltd. Partnership Series 2000-C1 Class A2, 7.75% 7/20/28 (f) | 3,543,207 | 4,110,493 | |
ReadyCap Commercial Mortgage Trust floater Series 2019-FL3 Class D, 1 month U.S. LIBOR + 2.900% 3.03% 3/25/34 (d)(e)(f) | 3,401,000 | 3,201,572 | |
SG Commercial Mortgage Securities Trust Series 2020-COVE Class F, 3.7276% 3/15/37 (d)(f) | 5,000,000 | 4,606,901 | |
UBS Commercial Mortgage Trust Series 2012-C1: | |||
Class D, 5.5688% 5/10/45 (d)(f) | 2,296,000 | 1,789,149 | |
Class E, 5% 5/10/45 (d)(f)(j) | 6,268,000 | 3,408,499 | |
Class F, 5% 5/10/45 (d)(f)(j) | 2,221,350 | 325,101 | |
UBS-BAMLL Trust Series 12-WRM Class D, 4.238% 6/10/30 (d)(f) | 2,143,000 | 1,234,444 | |
UBS-Citigroup Commercial Mortgage Trust Series 2011-C1: | |||
Class B, 6.0502% 1/10/45 (d)(f) | 2,966,000 | 3,042,125 | |
Class C, 6.0502% 1/10/45 (d)(f) | 4,746,000 | 4,549,867 | |
Wells Fargo Commercial Mortgage Trust: | |||
floater Series 2020-SOP Class E, 1 month U.S. LIBOR + 2.710% 2.8365% 1/15/35 (d)(e)(f) | 3,250,000 | 3,185,010 | |
Series 2012-LC5: | |||
Class D, 4.7582% 10/15/45 (d)(f) | 12,819,000 | 12,947,284 | |
Class E, 4.7582% 10/15/45 (d)(f) | 8,347,000 | 7,548,527 | |
Class F, 4.7582% 10/15/45 (d)(f) | 2,000,000 | 1,499,353 | |
Series 2016-BNK1 Class D, 3% 8/15/49 (f) | 6,979,000 | 4,536,255 | |
Series 2016-C35 Class D, 3.142% 7/15/48 (f) | 13,073,000 | 10,159,426 | |
Series 2016-NXS6 Class D, 3.059% 11/15/49 (f) | 5,037,000 | 4,072,614 | |
WF-RBS Commercial Mortgage Trust: | |||
sequential payer Series 2011-C4I Class G, 5% 6/15/44 (j) | 3,955,000 | 488,711 | |
Series 2011-C3: | |||
Class C, 5.335% 3/15/44 (f) | 4,845,000 | 4,791,796 | |
Class D, 5.6338% 3/15/44 (d)(f) | 2,000,000 | 941,252 | |
Class E, 5% 3/15/44 (f)(j) | 2,966,000 | 415,831 | |
Series 2011-C5: | |||
Class E, 5.6556% 11/15/44 (d)(f) | 5,097,000 | 4,932,545 | |
Class F, 5.25% 11/15/44 (d)(f) | 3,500,000 | 2,839,563 | |
Class G, 5.25% 11/15/44 (d)(f) | 2,000,000 | 1,527,108 | |
Series 2012-C7: | |||
Class D, 4.8043% 6/15/45 (d)(f)(j) | 2,380,000 | 970,766 | |
Class F, 4.5% 6/15/45 (f)(j) | 2,000,000 | 240,055 | |
Series 2012-C8 Class E, 4.8847% 8/15/45 (d)(f) | 2,889,500 | 2,187,152 | |
Series 2013-C11: | |||
Class D, 4.2555% 3/15/45 (d)(f) | 5,765,000 | 5,462,190 | |
Class E, 4.2555% 3/15/45 (d)(f) | 4,727,000 | 3,849,459 | |
Series 2013-C13 Class D, 4.1392% 5/15/45 (d)(f) | 3,955,000 | 3,873,173 | |
Series 2013-C16 Class D, 5.0167% 9/15/46 (d)(f) | 3,686,000 | 2,925,781 | |
Series 2013-UBS1 Class D, 5.0397% 3/15/46 (d)(f) | 4,538,000 | 4,374,981 | |
WP Glimcher Mall Trust Series 2015-WPG: | |||
Class PR1, 3.516% 6/5/35 (d)(f) | 6,725,000 | 5,746,141 | |
Class PR2, 3.516% 6/5/35 (d)(f) | 2,541,000 | 1,956,831 | |
TOTAL COMMERCIAL MORTGAGE SECURITIES | |||
(Cost $730,686,286) | 655,942,553 | ||
Bank Loan Obligations - 3.7% | |||
CONSUMER DISCRETIONARY - 0.6% | |||
Hotels, Restaurants & Leisure - 0.6% | |||
Airbnb, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 7.500% 8.5% 4/17/25 (d)(e)(k) | 2,626,800 | 2,842,697 | |
Caesars Resort Collection LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.750% 2.8708% 12/22/24 (d)(e)(k) | 7,896,670 | 7,755,161 | |
Playa Resorts Holding BV Tranche B, term loan 3 month U.S. LIBOR + 2.750% 3.75% 4/27/24 (d)(e)(k) | 25,554,628 | 24,557,230 | |
35,155,088 | |||
ENERGY - 0.4% | |||
Energy Equipment & Services - 0.1% | |||
Kestrel Acquisition LLC Tranche B, term loan 3 month U.S. LIBOR + 4.250% 5.25% 6/1/25 (d)(e)(k) | 5,853,665 | 5,268,299 | |
Oil, Gas & Consumable Fuels - 0.3% | |||
Hamilton Projs. Acquiror LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 4.750% 5.75% 6/17/27 (d)(e)(k) | 18,546,800 | 18,701,295 | |
TOTAL ENERGY | 23,969,594 | ||
FINANCIALS - 0.9% | |||
Capital Markets - 0.1% | |||
Blackstone CQP Holdco LP Tranche B, term loan 3 month U.S. LIBOR + 3.500% 3.7358% 9/30/24 (d)(e)(k) | 5,065,381 | 5,060,873 | |
Diversified Financial Services - 0.7% | |||
Agellan Portfolio 9% 8/7/25 (d)(j)(k) | 6,611,000 | 6,611,000 | |
Veritas Multifamily Portfolio 1 month U.S. LIBOR + 8.500% 8.75% 11/15/22 (d)(e)(j)(k) | 29,640,000 | 29,640,000 | |
36,251,000 | |||
Thrifts & Mortgage Finance - 0.1% | |||
Ocwen Loan Servicing LLC Tranche B, term loan 3 month U.S. LIBOR + 6.500% 7.5% 5/15/22 (d)(e)(k) | 6,162,276 | 6,126,350 | |
TOTAL FINANCIALS | 47,438,223 | ||
INFORMATION TECHNOLOGY - 0.2% | |||
Electronic Equipment & Components - 0.2% | |||
Compass Power Generation LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.500% 4.5% 12/20/24 (d)(e)(k) | 8,325,452 | 8,283,825 | |
REAL ESTATE - 0.9% | |||
Equity Real Estate Investment Trusts (REITs) - 0.2% | |||
iStar Financial, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.750% 2.8878% 6/28/23 (d)(e)(k) | 13,038,214 | 13,021,916 | |
Real Estate Management & Development - 0.7% | |||
Aragon Junior Mezzanine 1 month U.S. LIBOR + 6.000% 7.25% 1/15/25 (d)(e)(j)(k) | 8,505,984 | 8,505,984 | |
DTZ U.S. Borrower LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.750% 2.8725% 8/21/25 (d)(e)(k) | 13,333,025 | 13,252,494 | |
Lightstone Holdco LLC: | |||
Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.750% 3.9615% 1/30/24 (d)(e)(k) | 14,241,903 | 12,888,923 | |
Tranche C 1LN, term loan 3 month U.S. LIBOR + 3.750% 3.9615% 1/30/24 (d)(e)(k) | 803,266 | 726,956 | |
Realogy Group LLC Tranche B, term loan 3 month U.S. LIBOR + 2.250% 3% 2/8/25 (d)(e)(k) | 2,596,687 | 2,582,405 | |
37,956,762 | |||
TOTAL REAL ESTATE | 50,978,678 | ||
UTILITIES - 0.7% | |||
Electric Utilities - 0.6% | |||
Granite Generation LLC 1LN, term loan 3 month U.S. LIBOR + 3.750% 4.75% 11/1/26 (d)(e)(k) | 5,585,492 | 5,577,114 | |
Green Energy Partners/Stonewall LLC: | |||
Tranche B 1LN, term loan 3 month U.S. LIBOR + 5.500% 6.5% 11/13/21 (d)(e)(k) | 10,819,299 | 9,935,687 | |
Tranche B 2LN, term loan 3 month U.S. LIBOR + 5.500% 6.5% 11/13/21 (d)(e)(k) | 1,910,506 | 1,754,475 | |
Lonestar II Generation Holding: | |||
Tranche B 1LN, term loan 3 month U.S. LIBOR + 5.000% 5.1208% 4/18/26 (d)(e)(k) | 10,453,557 | 10,181,765 | |
Tranche C 1LN, term loan 3 month U.S. LIBOR + 5.000% 5.1208% 4/18/26 (d)(e)(k) | 1,273,530 | 1,240,418 | |
Southeast Powergen LLC Tranche B, term loan 3 month U.S. LIBOR + 3.500% 4.5% 12/2/21 (d)(e)(k) | 1,199,116 | 1,133,164 | |
29,822,623 | |||
Independent Power and Renewable Electricity Producers - 0.1% | |||
Oregon Clean Energy LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.750% 4.75% 3/1/26 (d)(e)(k) | 5,704,241 | 5,709,603 | |
TOTAL UTILITIES | 35,532,226 | ||
TOTAL BANK LOAN OBLIGATIONS | |||
(Cost $204,573,898) | 201,357,634 | ||
Preferred Securities - 0.1% | |||
ENERGY - 0.1% | |||
Oil, Gas & Consumable Fuels - 0.1% | |||
Energy Transfer Partners LP 7.125% (d) | 6,000,000 | 5,728,535 | |
FINANCIALS - 0.0% | |||
Diversified Financial Services - 0.0% | |||
Crest Dartmouth Street 2003-1 Ltd. Series 2003-1A Class PS, 6/28/38 (f)(j) | 1,220,000 | 122 | |
Thrifts & Mortgage Finance - 0.0% | |||
Crest Clarendon Street 2002-1 Ltd. Series 2002-1A Class PS, 12/28/35 (f)(j) | 500,000 | 10,000 | |
TOTAL FINANCIALS | 10,122 | ||
TOTAL PREFERRED SECURITIES | |||
(Cost $7,297,768) | 5,738,657 | ||
Shares | Value | ||
Money Market Funds - 8.1% | |||
Fidelity Cash Central Fund 0.09% (l) | 427,669,896 | 427,755,430 | |
Fidelity Securities Lending Cash Central Fund 0.09% (l)(m) | 16,578,475 | 16,580,133 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $444,286,897) | 444,335,563 | ||
TOTAL INVESTMENT IN SECURITIES - 100.5% | |||
(Cost $5,391,375,693) | 5,520,268,834 | ||
NET OTHER ASSETS (LIABILITIES) - (0.5)% | (28,640,385) | ||
NET ASSETS - 100% | $5,491,628,449 |
Legend
(a) Affiliated company
(b) Security or a portion of the security is on loan at period end.
(c) Non-income producing
(d) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end.
(e) Coupon is indexed to a floating interest rate which may be multiplied by a specified factor and/or subject to caps or floors.
(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 $1,010,232,627 or 18.4% of net assets.
(g) Non-income producing - Security is in default.
(h) Security or a portion of the security purchased on a delayed delivery or when-issued basis.
(i) Security represents right to receive monthly interest payments on an underlying pool of mortgages or assets. Principal shown is the outstanding par amount of the pool as of the end of the period.
(j) Level 3 security
(k) Remaining maturities of bank loan obligations may be less than the stated maturities shown as a result of contractual or optional prepayments by the borrower. Such prepayments cannot be predicted with certainty.
(l) 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.
(m) 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 | $208,850 |
Fidelity Securities Lending Cash Central Fund | 17,880 |
Total | $226,730 |
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.
The value, beginning of period, for the Fidelity Cash Central Fund was $450,090,181. Net realized gain (loss) and change in net unrealized appreciation (depreciation) on Fidelity Cash Central Fund is presented in the Statement of Operations, if applicable. Purchases and sales of the Fidelity Cash Central Fund were $458,383,083 and $480,674,500, respectively, during the period.
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 |
Dynex Capital, Inc. | $32,016,448 | $-- | $-- | $269,394 | $1,346,970 | $3,677,222 | $37,404,329 |
Dynex Capital, Inc. Series B, 7.625% | 3,741,565 | -- | -- | 73,561 | 73,559 | 135,832 | 3,877,398 |
Dynex Capital, Inc. Series C 6.90% | 8,492,612 | -- | -- | 160,634 | 160,633 | 785,939 | 9,278,552 |
Great Ajax Corp. | 14,338,198 | -- | -- | -- | 399,019 | 2,252,302 | 16,384,135 |
Great Ajax Corp. 7.25% | 14,735,752 | -- | -- | 554,119 | -- | 256,806 | 14,992,558 |
iStar Financial, Inc. | 34,898,650 | 13,469,845 | -- | -- | -- | 13,233,319 | 60,211,667 |
Nexpoint Real Estate Finance, Inc. | 6,673,230 | -- | 6,126,676 | 113,329 | (1,847,624) | 1,301,070 | -- |
Total | $114,896,455 | $13,469,845 | $6,126,676 | $1,171,037 | $132,557 | $21,642,490 | $142,148,639 |
Investment Valuation
The following is a summary of the inputs used, as of January 31, 2021, 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: | ||||
Energy | $38,689,042 | $38,689,042 | $-- | $-- |
Financials | 1,230,614,409 | 1,205,875,876 | 24,738,533 | -- |
Industrials | 21,291,580 | 21,291,580 | -- | -- |
Real Estate | 1,838,728,667 | 1,798,216,263 | 40,512,404 | -- |
Utilities | 3,601,456 | 3,601,456 | -- | -- |
Corporate Bonds | 994,983,433 | -- | 994,983,433 | -- |
Asset-Backed Securities | 84,943,711 | -- | 84,943,073 | 638 |
Collateralized Mortgage Obligations | 42,129 | -- | 42,129 | -- |
Commercial Mortgage Securities | 655,942,553 | -- | 627,201,403 | 28,741,150 |
Bank Loan Obligations | 201,357,634 | -- | 156,600,650 | 44,756,984 |
Preferred Securities | 5,738,657 | -- | 5,728,535 | 10,122 |
Money Market Funds | 444,335,563 | 444,335,563 | -- | -- |
Total Investments in Securities: | $5,520,268,834 | $3,512,009,780 | $1,934,750,160 | $73,508,894 |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value:
Investments in Securities: | |
Beginning Balance | $36,517,902 |
Net Realized Gain (Loss) on Investment Securities | (34,205) |
Net Unrealized Gain (Loss) on Investment Securities | (1,376,251) |
Cost of Purchases | 29,640,000 |
Proceeds of Sales | (13,165,016) |
Amortization/Accretion | (106,901) |
Transfers into Level 3 | 25,811,385 |
Transfers out of Level 3 | (3,778,020) |
Ending Balance | $73,508,894 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2021 | $(1,733,694) |
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. Cost of purchases and proceeds of sales may include securities received and/or delivered through 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
The composition of credit quality ratings as a percentage of Total Net Assets is as follows (Unaudited):
AAA,AA,A | 1.0% |
BBB | 3.1% |
BB | 9.5% |
B | 7.2% |
CCC,CC,C | 2.3% |
Not Rated | 12.2% |
Equities | 57.1% |
Short-Term Investments and Net Other Assets | 7.6% |
100.0% |
We have used ratings from Moody's Investors Service, Inc. Where Moody's® ratings are not available, we have used S&P® ratings. All ratings are as of the date indicated and do not reflect subsequent changes.
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
January 31, 2021 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $16,443,650) — See accompanying schedule: Unaffiliated issuers (cost $4,812,740,525) | $4,933,784,632 | |
Fidelity Central Funds (cost $444,286,897) | 444,335,563 | |
Other affiliated issuers (cost $134,348,271) | 142,148,639 | |
Total Investment in Securities (cost $5,391,375,693) | $5,520,268,834 | |
Receivable for investments sold | 29,501,393 | |
Receivable for fund shares sold | 8,082,195 | |
Dividends receivable | 5,380,465 | |
Interest receivable | 21,084,468 | |
Distributions receivable from Fidelity Central Funds | 33,616 | |
Prepaid expenses | 5,582 | |
Other receivables | 19,433 | |
Total assets | 5,584,375,986 | |
Liabilities | ||
Payable for investments purchased | ||
Regular delivery | $22,627,650 | |
Delayed delivery | 36,000,000 | |
Payable for fund shares redeemed | 14,113,589 | |
Accrued management fee | 2,404,564 | |
Distribution and service plan fees payable | 190,955 | |
Other affiliated payables | 771,128 | |
Other payables and accrued expenses | 61,451 | |
Collateral on securities loaned | 16,578,200 | |
Total liabilities | 92,747,537 | |
Net Assets | $5,491,628,449 | |
Net Assets consist of: | ||
Paid in capital | $5,448,954,852 | |
Total accumulated earnings (loss) | 42,673,597 | |
Net Assets | $5,491,628,449 | |
Net Asset Value and Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($322,124,231 ÷ 27,401,196 shares)(a) | $11.76 | |
Maximum offering price per share (100/96.00 of $11.76) | $12.25 | |
Class M: | ||
Net Asset Value and redemption price per share ($49,735,213 ÷ 4,229,393 shares)(a) | $11.76 | |
Maximum offering price per share (100/96.00 of $11.76) | $12.25 | |
Class C: | ||
Net Asset Value and offering price per share ($132,588,856 ÷ 11,422,539 shares)(a) | $11.61 | |
Real Estate Income: | ||
Net Asset Value, offering price and redemption price per share ($2,025,467,134 ÷ 171,270,588 shares) | $11.83 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($2,257,580,836 ÷ 191,690,736 shares) | $11.78 | |
Class Z: | ||
Net Asset Value, offering price and redemption price per share ($704,132,179 ÷ 59,793,005 shares) | $11.78 |
(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
Six months ended January 31, 2021 (Unaudited) | ||
Investment Income | ||
Dividends (including $1,171,037 earned from other affiliated issuers) | $32,404,041 | |
Non-Cash dividends | 5,276,001 | |
Interest | 63,552,538 | |
Income from Fidelity Central Funds (including $17,880 from security lending) | 226,730 | |
Total income | 101,459,310 | |
Expenses | ||
Management fee | $14,091,212 | |
Transfer agent fees | 3,985,735 | |
Distribution and service plan fees | 1,168,747 | |
Accounting fees | 690,024 | |
Custodian fees and expenses | 24,692 | |
Independent trustees' fees and expenses | 12,870 | |
Registration fees | 108,834 | |
Audit | 53,512 | |
Legal | 8,767 | |
Miscellaneous | 7,877 | |
Total expenses before reductions | 20,152,270 | |
Expense reductions | (46,450) | |
Total expenses after reductions | 20,105,820 | |
Net investment income (loss) | 81,353,490 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 67,636,728 | |
Fidelity Central Funds | (10,041) | |
Other affiliated issuers | 132,557 | |
Foreign currency transactions | (569) | |
Total net realized gain (loss) | 67,758,675 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 383,076,442 | |
Fidelity Central Funds | (33,294) | |
Other affiliated issuers | 21,642,490 | |
Assets and liabilities in foreign currencies | (45) | |
Total change in net unrealized appreciation (depreciation) | 404,685,593 | |
Net gain (loss) | 472,444,268 | |
Net increase (decrease) in net assets resulting from operations | $553,797,758 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended January 31, 2021 (Unaudited) | Year ended July 31, 2020 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $81,353,490 | $236,682,431 |
Net realized gain (loss) | 67,758,675 | (30,131,403) |
Change in net unrealized appreciation (depreciation) | 404,685,593 | (768,878,290) |
Net increase (decrease) in net assets resulting from operations | 553,797,758 | (562,327,262) |
Distributions to shareholders | (213,394,896) | (314,618,976) |
Share transactions - net increase (decrease) | (153,979,029) | 40,706,105 |
Total increase (decrease) in net assets | 186,423,833 | (836,240,133) |
Net Assets | ||
Beginning of period | 5,305,204,616 | 6,141,444,749 |
End of period | $5,491,628,449 | $5,305,204,616 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Real Estate Income Fund Class A
Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $11.02 | $12.43 | $11.99 | $12.32 | $12.25 | $11.66 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .16 | .45 | .51 | .47 | .49 | .49 |
Net realized and unrealized gain (loss) | 1.03 | (1.25) | .65 | (.22) | .14 | .73 |
Total from investment operations | 1.19 | (.80) | 1.16 | .25 | .63 | 1.22 |
Distributions from net investment income | (.45) | (.44) | (.51) | (.45) | (.48) | (.48) |
Distributions from net realized gain | – | (.16) | (.21) | (.13) | (.08) | (.14) |
Total distributions | (.45) | (.61)B | (.72) | (.58) | (.56) | (.63)B |
Redemption fees added to paid in capitalA | – | – | – | –C | –C | –C |
Net asset value, end of period | $11.76 | $11.02 | $12.43 | $11.99 | $12.32 | $12.25 |
Total ReturnD,E,F | 10.90% | (6.88)% | 10.15% | 2.13% | 5.37% | 11.01% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | 1.00%I | 1.01% | 1.01% | 1.02% | 1.03% | 1.03% |
Expenses net of fee waivers, if any | 1.00%I | 1.01% | 1.01% | 1.02% | 1.03% | 1.03% |
Expenses net of all reductions | .99%I | 1.00% | 1.01% | 1.01% | 1.02% | 1.03% |
Net investment income (loss) | 2.82%I | 3.85% | 4.29% | 3.98% | 4.08% | 4.29% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $322,124 | $324,031 | $325,296 | $297,722 | $355,400 | $548,649 |
Portfolio turnover rateJ | 22%I | 32%K | 17% | 27% | 22% | 26% |
A Calculated based on average shares outstanding during the period.
B Total distributions per share do not sum due to rounding.
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 Total returns do not include the effect of the sales charges.
G Fees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
I Annualized
J Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
K Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Fidelity Real Estate Income Fund Class M
Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $11.02 | $12.43 | $11.99 | $12.32 | $12.26 | $11.66 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .16 | .45 | .51 | .47 | .49 | .49 |
Net realized and unrealized gain (loss) | 1.03 | (1.26) | .65 | (.22) | .13 | .73 |
Total from investment operations | 1.19 | (.81) | 1.16 | .25 | .62 | 1.22 |
Distributions from net investment income | (.45) | (.44) | (.51) | (.45) | (.48) | (.48) |
Distributions from net realized gain | – | (.16) | (.21) | (.13) | (.08) | (.14) |
Total distributions | (.45) | (.60) | (.72) | (.58) | (.56) | (.62) |
Redemption fees added to paid in capitalA | – | – | – | –B | –B | –B |
Net asset value, end of period | $11.76 | $11.02 | $12.43 | $11.99 | $12.32 | $12.26 |
Total ReturnC,D,E | 10.87% | (6.89)% | 10.12% | 2.10% | 5.26% | 11.06% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | 1.02%H | 1.03% | 1.04% | 1.04% | 1.06% | 1.07% |
Expenses net of fee waivers, if any | 1.02%H | 1.03% | 1.04% | 1.04% | 1.06% | 1.07% |
Expenses net of all reductions | 1.02%H | 1.03% | 1.04% | 1.04% | 1.05% | 1.06% |
Net investment income (loss) | 2.79%H | 3.82% | 4.26% | 3.95% | 4.05% | 4.26% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $49,735 | $49,387 | $60,540 | $55,175 | $64,158 | $59,788 |
Portfolio turnover rateI | 22%H | 32%J | 17% | 27% | 22% | 26% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns for periods of less than one year are not annualized.
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 sales charges.
F Fees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
H Annualized
I Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
J Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Fidelity Real Estate Income Fund Class C
Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $10.88 | $12.28 | $11.85 | $12.20 | $12.14 | $11.55 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .12 | .36 | .42 | .38 | .40 | .40 |
Net realized and unrealized gain (loss) | 1.00 | (1.23) | .64 | (.22) | .13 | .73 |
Total from investment operations | 1.12 | (.87) | 1.06 | .16 | .53 | 1.13 |
Distributions from net investment income | (.39) | (.36) | (.42) | (.37) | (.39) | (.40) |
Distributions from net realized gain | – | (.16) | (.21) | (.13) | (.08) | (.14) |
Total distributions | (.39) | (.53)B | (.63) | (.51)B | (.47) | (.54) |
Redemption fees added to paid in capitalA | – | – | – | –C | –C | –C |
Net asset value, end of period | $11.61 | $10.88 | $12.28 | $11.85 | $12.20 | $12.14 |
Total ReturnD,E,F | 10.42% | (7.50)% | 9.34% | 1.31% | 4.54% | 10.29% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | 1.75%I | 1.76% | 1.76% | 1.76% | 1.78% | 1.79% |
Expenses net of fee waivers, if any | 1.75%I | 1.76% | 1.76% | 1.76% | 1.78% | 1.78% |
Expenses net of all reductions | 1.75%I | 1.76% | 1.76% | 1.76% | 1.78% | 1.78% |
Net investment income (loss) | 2.06%I | 3.09% | 3.54% | 3.23% | 3.32% | 3.54% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $132,589 | $150,653 | $210,156 | $227,458 | $287,598 | $289,430 |
Portfolio turnover rateJ | 22%I | 32%K | 17% | 27% | 22% | 26% |
A Calculated based on average shares outstanding during the period.
B Total distributions per share do not sum due to rounding.
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 Total returns do not include the effect of the contingent deferred sales charge.
G Fees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
I Annualized
J Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
K Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Fidelity Real Estate Income Fund
Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $11.09 | $12.50 | $12.05 | $12.38 | $12.31 | $11.71 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .18 | .48 | .54 | .51 | .52 | .52 |
Net realized and unrealized gain (loss) | 1.03 | (1.25) | .66 | (.22) | .14 | .73 |
Total from investment operations | 1.21 | (.77) | 1.20 | .29 | .66 | 1.25 |
Distributions from net investment income | (.47) | (.48) | (.54) | (.48) | (.51) | (.51) |
Distributions from net realized gain | – | (.16) | (.21) | (.13) | (.08) | (.14) |
Total distributions | (.47) | (.64) | (.75) | (.62)B | (.59) | (.65) |
Redemption fees added to paid in capitalA | – | – | – | –C | –C | –C |
Net asset value, end of period | $11.83 | $11.09 | $12.50 | $12.05 | $12.38 | $12.31 |
Total ReturnD,E | 11.00% | (6.58)% | 10.47% | 2.40% | 5.60% | 11.29% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | .73%H | .73% | .75% | .75% | .78% | .82% |
Expenses net of fee waivers, if any | .73%H | .73% | .75% | .75% | .78% | .81% |
Expenses net of all reductions | .73%H | .73% | .75% | .75% | .77% | .81% |
Net investment income (loss) | 3.08%H | 4.12% | 4.55% | 4.24% | 4.33% | 4.51% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $2,025,467 | $2,205,319 | $2,691,820 | $2,531,397 | $2,630,901 | $2,719,387 |
Portfolio turnover rateI | 22%H | 32%J | 17% | 27% | 22% | 26% |
A Calculated based on average shares outstanding during the period.
B Total distributions per share do not sum due to rounding.
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
H Annualized
I Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
J Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Fidelity Real Estate Income Fund Class I
Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $11.04 | $12.45 | $12.01 | $12.34 | $12.27 | $11.68 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .18 | .48 | .54 | .51 | .52 | .52 |
Net realized and unrealized gain (loss) | 1.03 | (1.25) | .65 | (.22) | .14 | .73 |
Total from investment operations | 1.21 | (.77) | 1.19 | .29 | .66 | 1.25 |
Distributions from net investment income | (.47) | (.47) | (.54) | (.49) | (.51) | (.52) |
Distributions from net realized gain | – | (.16) | (.21) | (.13) | (.08) | (.14) |
Total distributions | (.47) | (.64)B | (.75) | (.62) | (.59) | (.66) |
Redemption fees added to paid in capitalA | – | – | – | –C | –C | –C |
Net asset value, end of period | $11.78 | $11.04 | $12.45 | $12.01 | $12.34 | $12.27 |
Total ReturnD,E | 11.07% | (6.62)% | 10.43% | 2.41% | 5.66% | 11.30% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | .72%H | .74% | .75% | .75% | .76% | .77% |
Expenses net of fee waivers, if any | .72%H | .74% | .74% | .75% | .76% | .77% |
Expenses net of all reductions | .72%H | .74% | .74% | .75% | .76% | .76% |
Net investment income (loss) | 3.09%H | 4.11% | 4.55% | 4.25% | 4.34% | 4.56% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $2,257,581 | $1,782,594 | $2,386,308 | $2,142,260 | $1,951,293 | $1,239,950 |
Portfolio turnover rateI | 22%H | 32%J | 17% | 27% | 22% | 26% |
A Calculated based on average shares outstanding during the period.
B Total distributions per share do not sum due to rounding.
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
H Annualized
I Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
J Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Fidelity Real Estate Income Fund Class Z
Six months ended (Unaudited) January 31, | Years endedJuly 31, | ||
2021 | 2020 | 2019 A | |
Selected Per–Share Data | |||
Net asset value, beginning of period | $11.04 | $12.45 | $11.74 |
Income from Investment Operations | |||
Net investment income (loss)B | .18 | .49 | .47 |
Net realized and unrealized gain (loss) | 1.03 | (1.25) | .67 |
Total from investment operations | 1.21 | (.76) | 1.14 |
Distributions from net investment income | (.47) | (.49) | (.42) |
Distributions from net realized gain | – | (.16) | (.02) |
Total distributions | (.47) | (.65) | (.43)C |
Net asset value, end of period | $11.78 | $11.04 | $12.45 |
Total ReturnD,E | 11.12% | (6.50)% | 10.00% |
Ratios to Average Net AssetsF,G | |||
Expenses before reductions | .61%H | .62% | .62%H |
Expenses net of fee waivers, if any | .61%H | .62% | .62%H |
Expenses net of all reductions | .61%H | .61% | .62%H |
Net investment income (loss) | 3.20%H | 4.24% | 4.71%H |
Supplemental Data | |||
Net assets, end of period (000 omitted) | $704,132 | $793,220 | $467,324 |
Portfolio turnover rateI | 22%H | 32%J | 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 per share do not sum due to rounding.
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
H Annualized
I Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
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 (Unaudited)
For the period ended January 31, 2021
1. Organization.
Fidelity Real Estate Income Fund (the Fund) is a fund of Fidelity Securities Fund (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class 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. 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 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 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 - Investment 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.
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) |
Preferred Securities | $10,122 | Recovery Value | Recovery Value | 0.0% - 2.0% / 2.0% | Increase |
Asset-Backed Securities | $638 | Recovery value Discounted cash flow | Recovery value Yield | 0% 12% | Increase Decrease |
Commercial Mortgage Securities | $28,741,150 | Discounted cash flow | Yield Spread | 5.4% - 195.0% / 58.4% 2733.9% | Decrease Decrease |
Bank Loan Obligations | $44,756,984 | Discounted cash flow | Yield | 7.6% - 9.5% / 9.0% | Decrease |
(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 January 31, 2021 is included at the end of the Fund's Schedule of Investments.
Foreign Currency. Certain Funds 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. 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. 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.
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 the short-term gain distributions from the Underlying Funds, foreign currency transactions, passive foreign investment companies (PFIC), market discount, equity-debt classifications, certain conversion ratio adjustments, redemptions in kind, partnerships, 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 | $567,422,079 |
Gross unrealized depreciation | (450,862,344) |
Net unrealized appreciation (depreciation) | $116,559,735 |
Tax cost | $5,403,709,099 |
The Fund elected to defer to its next fiscal year approximately $30,023,661 of capital losses recognized during the period November 1,2019 to July 31, 2020.
Delayed Delivery Transactions and When-Issued Securities. During the period, certain Funds 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. Securities purchased on a delayed delivery or when-issued basis are identified as such in the Schedule of Investments. Compensation for interest forgone in the purchase of a delayed delivery or when-issued debt security may be received. With respect to purchase commitments, each applicable Fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Payables and receivables associated with the purchases and sales of delayed delivery securities having the same coupon, settlement date and broker are offset. Delayed delivery or when-issued securities that have been purchased from and sold to different brokers are reflected as both payables and receivables in the Statement of Assets and Liabilities under the caption "Delayed delivery", as applicable. 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 (including Private Placements). 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. Direct debt instruments 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 a fund to supply additional cash to the borrower on demand. Loans may be acquired through assignment, participation, or may be made directly to a borrower. Such instruments are presented in the Bank Loan Obligations section in the Schedule of Investments. Certain funds may also invest in unfunded loan commitments, which are contractual obligations for future funding. Information regarding unfunded commitments is included at the end of the Schedule of Investments, if applicable
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and U.S. government securities are noted in the table below.
Purchases ($) | Sales ($) | |
Fidelity Real Estate Income Fund | 540,348,380 | 629,200,675 |
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company LLC (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 .23% during the period. The group fee rate is based upon the monthly average net assets of a group of registered investment companies with which the investment adviser has management contracts. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annualized management fee rate was .53% 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 Company LLC (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% | $397,570 | $7,441 |
Class M | -% | .25% | 61,465 | – |
Class C | .75% | .25% | 709,712 | 69,081 |
$1,168,747 | $76,522 |
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 | $21,766 |
Class M | 1,602 |
Class C(a) | 6,378 |
$29,746 |
(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 LLC (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(a) | |
Class A | $289,989 | .18 |
Class M | 51,717 | .21 |
Class C | 131,016 | .18 |
Real Estate Income | 1,856,647 | .17 |
Class I | 1,506,944 | .16 |
Class Z | 149,422 | .04 |
$3,985,735 |
(a) Annualized
Accounting 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. For the period, the fees were equivalent to the following annualized rates:
% of Average Net Assets | |
Fidelity Real Estate Income Fund | .03 |
Brokerage Commissions. A portion of portfolio transactions were placed 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 as follows:
Amount | |
Fidelity Real Estate Income Fund | $12,605 |
Interfund Trades. Funds 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, and amounted to $19,916,810 and $3,816,173, respectively.
Prior Fiscal Year Affiliated Redemptions In-Kind. During the prior period, 5,621,404 shares of the Fund were redeemed in-kind for investments, including accrued interest and cash with a value of $71,229,507. The Fund had a net realized gain of $12,315,468 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.
6. Committed Line of Credit.
Certain Funds participate 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 participating funds have agreed to pay commitment fees on their pro-rata portion of the line of credit, which are reflected in Miscellaneous expenses on the Statement of Operations, and are listed below.
Amount | |
Fidelity Real Estate Income Fund | $5,403 |
During the period, there were no borrowings on this line of credit.
7. Security Lending.
Funds lend portfolio securities from time to time in order to earn additional income. Lending agents are used, including National Financial Services (NFS), an affiliate of the investment adviser. Pursuant to a securities lending agreement, NFS will receive a fee, which is capped at 9.9% of a fund's daily lending revenue, for its services as lending agent. A fund may lend securities to certain qualified borrowers, including NFS. On the settlement date of the loan, a 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 a fund and any additional required collateral is delivered to a fund on the next business day. A 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, a fund may apply collateral received from the borrower against the obligation. A 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. Any loaned securities are identified as such in the Schedule of Investments, and the value of loaned securities and cash collateral at period end, as applicable, are presented in the 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. Affiliated security lending activity, if any, was as follows:
Total Security Lending Income Fees Paid to NFS | Security Lending Income From Securities Loaned to NFS | Value of Securities Loaned to NFS at Period End | |
Fidelity Real Estate Income Fund | $2,474 | $– | $– |
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 expenses. This amount totaled $37,444 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 $834.
In addition, during the period the investment adviser or an affiliate reimbursed and/or waived a portion of fund-level operating expenses in the amount of $8,172.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended January 31, 2021 | Year ended July 31, 2020 | |
Distributions to shareholders | ||
Class A | $12,331,880 | $16,800,423 |
Class M | 1,887,965 | 2,986,781 |
Class C | 4,798,344 | 8,903,773 |
Real Estate Income | 81,400,933 | 123,469,997 |
Class I | 85,930,281 | 124,750,021 |
Class Z | 27,045,493 | 37,707,981 |
Total | $213,394,896 | $314,618,976 |
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 | |
Six months ended January 31, 2021 | Year ended July 31, 2020 | Six months ended January 31, 2021 | Year ended July 31, 2020 | |
Class A | ||||
Shares sold | 2,803,535 | 15,823,808 | $32,531,407 | $191,280,675 |
Reinvestment of distributions | 801,826 | 1,297,338 | 9,213,403 | 15,857,157 |
Shares redeemed | (5,607,301) | (13,892,033) | (63,836,440) | (150,346,336) |
Net increase (decrease) | (2,001,940) | 3,229,113 | $(22,091,630) | $56,791,496 |
Class M | ||||
Shares sold | 133,006 | 824,443 | $1,526,658 | $9,998,224 |
Reinvestment of distributions | 162,222 | 241,612 | 1,864,757 | 2,949,239 |
Shares redeemed | (546,103) | (1,455,093) | (6,217,814) | (15,879,636) |
Net increase (decrease) | (250,875) | (389,038) | $(2,826,399) | $(2,932,173) |
Class C | ||||
Shares sold | 338,241 | 2,587,714 | $3,807,407 | $31,014,372 |
Reinvestment of distributions | 411,102 | 684,373 | 4,669,922 | 8,286,994 |
Shares redeemed | (3,178,597) | (6,528,756) | (35,803,959) | (70,751,926) |
Net increase (decrease) | (2,429,254) | (3,256,669) | $(27,326,630) | $(31,450,560) |
Real Estate Income | ||||
Shares sold | 24,700,986 | 94,882,819 | $283,298,076 | $1,065,881,914 |
Reinvestment of distributions | 6,303,422 | 8,576,887 | 72,726,145 | 105,168,710 |
Shares redeemed | (58,658,700) | (119,906,772)(a) | (690,367,753) | (1,382,675,657)(a) |
Net increase (decrease) | (27,654,292) | (16,447,066) | $(334,343,532) | $(211,625,033) |
Class I | ||||
Shares sold | 64,861,877 | 86,049,187 | $759,057,675 | $1,004,030,203 |
Reinvestment of distributions | 6,758,256 | 8,675,341 | 77,827,021 | 106,049,306 |
Shares redeemed | (41,347,113) | (124,939,225)(a) | (471,334,207) | (1,352,340,746)(a) |
Net increase (decrease) | 30,273,020 | (30,214,697) | $365,550,489 | $(242,261,237) |
Class Z | ||||
Shares sold | 14,187,273 | 81,818,897 | $163,453,487 | $961,480,276 |
Reinvestment of distributions | 1,820,040 | 2,404,207 | 20,938,204 | 29,213,996 |
Shares redeemed | (28,050,735) | (49,917,594) | (317,333,018) | (518,510,660) |
Net increase (decrease) | (12,043,422) | 34,305,510 | $(132,941,327) | $472,183,612 |
(a) Amount includes in-kind redemptions (see the Prior Fiscal Year Affiliated 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.
12. Coronavirus (COVID-19) Pandemic.
An outbreak of COVID-19 first detected in China during December 2019 has since spread globally and was declared a pandemic by the World Health Organization during March 2020. Developments that disrupt global economies and financial markets, such as the COVID-19 pandemic, may magnify factors that affect the Fund's performance.
Shareholder Expense Example
As a shareholder, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or redemption proceeds, as applicable and (2) ongoing costs, which generally include 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 a fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2020 to January 31, 2021).
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 for a class/Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. If any fund is a shareholder of any underlying mutual funds or exchange-traded funds (ETFs) (the Underlying Funds), such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses incurred presented in the table. These fees and expenses are not included in the 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 actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the 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. If any fund is a shareholder of any Underlying Funds, such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses as presented in the table. These fees and expenses are not included in the 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 August 1, 2020 | Ending Account Value January 31, 2021 | Expenses Paid During Period-B August 1, 2020 to January 31, 2021 | |
Fidelity Real Estate Income Fund | ||||
Class A | 1.00% | |||
Actual | $1,000.00 | $1,109.00 | $5.32 | |
Hypothetical-C | $1,000.00 | $1,020.16 | $5.09 | |
Class M | 1.02% | |||
Actual | $1,000.00 | $1,108.70 | $5.42 | |
Hypothetical-C | $1,000.00 | $1,020.06 | $5.19 | |
Class C | 1.75% | |||
Actual | $1,000.00 | $1,104.20 | $9.28 | |
Hypothetical-C | $1,000.00 | $1,016.38 | $8.89 | |
Real Estate Income | .73% | |||
Actual | $1,000.00 | $1,110.00 | $3.88 | |
Hypothetical-C | $1,000.00 | $1,021.53 | $3.72 | |
Class I | .72% | |||
Actual | $1,000.00 | $1,110.70 | $3.83 | |
Hypothetical-C | $1,000.00 | $1,021.58 | $3.67 | |
Class Z | .61% | |||
Actual | $1,000.00 | $1,111.20 | $3.25 | |
Hypothetical-C | $1,000.00 | $1,022.13 | $3.11 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/ 365 (to reflect the one-half year period). The fees and expenses of any Underlying Funds are not included in each annualized expense ratio.
C 5% return per year before expenses
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Real Estate Income Fund
At its January 2021 meeting, the Board of Trustees, including the Independent Trustees (together, the Board), voted to continue the management contract with Fidelity Management & Research Company LLC (FMR), and the sub-advisory agreements and sub-subadvisory agreements, in each case, where applicable (together, the Advisory Contracts) for the fund for four months from February 1, 2021 through May 31, 2021, in connection with changes to the Board's meeting calendar.The Board considered that the approval of the fund's Advisory Contracts will not result in any changes in (i) the investment process or strategies employed in the management of the fund's assets; (ii) the fees and expenses paid by shareholders; (iii) the nature, extent or quality of services provided under the fund's Advisory Contracts; or (iv) the day-to-day management of the fund or the persons primarily responsible for such management. The Board also considered that since its last approval of the fund's Advisory Contracts, FMR had provided additional information on the fund in support of the annual contract renewal process, including competitive analyses on total expenses and management fees and in-depth reviews of fund performance and fund profitability information. The Board also considered the findings of certain ad hoc committees that had been previously formed to discuss matters relevant to all of the Fidelity funds, including economies of scale, fall-out benefits and retail vs. institutional funds. The Board concluded that the fund's Advisory Contracts are fair and reasonable, and that the fund's Advisory Contracts should be renewed, without modification, through May 31, 2021, with the understanding that the Board will consider the annual renewal for a full one year period in May 2021.In connection with its consideration of future renewals of the fund's Advisory Contracts, the Board will consider: (i) the nature, extent and quality of services provided to the funds, including shareholder and administrative services and investment performance; (ii) the competitiveness of the management fee and total expenses for the fund; (iii) the costs of the services and profitability, including the revenues earned and the expenses incurred in conducting the business of developing, marketing, distributing, managing, administering, and servicing the fund and its shareholders, to the extent applicable; and (iv) whether there have been economies of scale in respect of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is the potential for realization of any further economies.Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board ultimately concluded that the fund's management fee structure is fair and reasonable, and that the continuation of the fund's Advisory Contracts should be approved for four months from February 1, 2021 through May 31, 2021.REI-SANN-0321
1.789716.117
Fidelity® Series Real Estate Income Fund
Semi-Annual Report
January 31, 2021
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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 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. © 2021 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.
Note to Shareholders:
Early in 2020, the outbreak and spread of a new coronavirus emerged as a public health emergency that had a major influence on financial markets, primarily based on its impact on the global economy and the outlook for corporate earnings. The virus causes a respiratory disease known as COVID-19. On March 11, the World Health Organization declared the COVID-19 outbreak a pandemic, citing sustained risk of further global spread.
In the weeks following, as the crisis worsened, we witnessed an escalating human tragedy with wide-scale social and economic consequences from coronavirus-containment measures. The outbreak of COVID-19 prompted a number of measures to limit the spread, including travel and border restrictions, quarantines, and restrictions on large gatherings. In turn, these resulted in lower consumer activity, diminished demand for a wide range of products and services, disruption in manufacturing and supply chains, and – given the wide variability in outcomes regarding the outbreak – significant market uncertainty and volatility. Amid the turmoil, global governments and central banks took unprecedented action to help support consumers, businesses, and the broader economies, and to limit disruption to financial systems.
The situation continues to unfold, and the extent and duration of its impact on financial markets and the economy remain highly uncertain. Extreme events such as the coronavirus crisis are “exogenous shocks” that can have significant adverse effects on mutual funds and their investments. Although multiple asset classes may be affected by market disruption, the duration and impact may not be the same for all types of assets.
Fidelity is committed to helping you stay informed amid news about COVID-19 and during increased market volatility, and we’re taking extra steps to be responsive to customer needs. We encourage you to visit our websites, where we offer ongoing updates, commentary, and analysis on the markets and our funds.
Investment Summary (Unaudited)
Top Five Stocks as of January 31, 2021
% of fund's net assets | |
American Tower Corp. | 1.5 |
Equity Lifestyle Properties, Inc. | 1.4 |
Annaly Capital Management, Inc. Series F, 6.95% | 1.3 |
Mid-America Apartment Communities, Inc. | 1.2 |
New Residential Investment Corp. | 1.1 |
6.5 |
Top 5 Bonds as of January 31, 2021
% of fund's net assets | |
Senior Housing Properties Trust 4.75% 5/1/24 | 1.3 |
Redwood Trust, Inc. 5.625% 7/15/24 | 1.2 |
Kennedy-Wilson, Inc. 5.875% 4/1/24 | 1.0 |
RWT Holdings, Inc. 5.75% 10/1/25 | 0.9 |
Western Asset Mortgage Capital Corp. 6.75% 10/1/22 | 0.9 |
5.3 |
Top Five REIT Sectors as of January 31, 2021
% of fund's net assets | |
REITs - Mortgage | 26.6 |
REITs - Diversified | 14.5 |
REITs - Health Care | 5.4 |
REITs - Management/Investment | 4.4 |
REITs - Apartments | 2.8 |
Asset Allocation (% of fund's net assets)
As of January 31, 2021 * | ||
Stocks | 47.0% | |
Bonds | 36.9% | |
Convertible Securities | 8.5% | |
Other Investments | 3.3% | |
Short-Term Investments and Net Other Assets (Liabilities) | 4.3% |
* Foreign investments - 1.3%
Schedule of Investments January 31, 2021 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 15.9% | |||
Shares | Value | ||
FINANCIALS - 3.8% | |||
Mortgage Real Estate Investment Trusts - 3.8% | |||
AGNC Investment Corp. | 459,000 | $7,160,400 | |
Broadmark Realty Capital, Inc. | 131,700 | 1,355,193 | |
Capstead Mortgage Corp. | 99,600 | 531,864 | |
Chimera Investment Corp. | 112,100 | 1,132,210 | |
Colony NorthStar Credit Real Estate, Inc. | 79,440 | 627,576 | |
Dynex Capital, Inc. | 184,666 | 3,333,221 | |
Ellington Financial LLC | 152,651 | 2,283,659 | |
Ellington Residential Mortgage REIT | 45,300 | 541,788 | |
Great Ajax Corp. | 281,246 | 2,770,273 | |
Lument Finance Trust, Inc. | 47,275 | 149,389 | |
MFA Financial, Inc. | 1,815,100 | 6,606,964 | |
New Residential Investment Corp. | 1,182,300 | 11,101,797 | |
Redwood Trust, Inc. | 100,500 | 862,290 | |
38,456,624 | |||
INDUSTRIALS - 0.1% | |||
Construction & Engineering - 0.1% | |||
Willscot Mobile Mini Holdings (a) | 62,900 | 1,491,359 | |
REAL ESTATE - 12.0% | |||
Equity Real Estate Investment Trusts (REITs) - 11.8% | |||
Acadia Realty Trust (SBI) | 296,600 | 4,300,700 | |
American Homes 4 Rent Class A | 72,400 | 2,188,652 | |
American Tower Corp. | 68,700 | 15,619,610 | |
Apartment Income (REIT) Corp. | 186,624 | 7,235,412 | |
Apartment Investment & Management Co. Class A | 185,530 | 851,583 | |
AvalonBay Communities, Inc. | 9,200 | 1,505,764 | |
Colony Capital, Inc. | 506,499 | 2,512,235 | |
Crown Castle International Corp. | 44,700 | 7,118,922 | |
Digital Realty Trust, Inc. | 12,400 | 1,784,980 | |
Diversified Healthcare Trust (SBI) | 94,000 | 377,880 | |
Douglas Emmett, Inc. | 49,800 | 1,379,958 | |
Easterly Government Properties, Inc. | 87,200 | 1,914,040 | |
Equinix, Inc. | 7,100 | 5,253,716 | |
Equity Lifestyle Properties, Inc. | 232,800 | 14,163,552 | |
Equity Residential (SBI) | 5,200 | 320,528 | |
Gaming & Leisure Properties | 49,104 | 2,019,648 | |
Healthcare Trust of America, Inc. | 86,550 | 2,445,038 | |
Invitation Homes, Inc. | 34,600 | 1,020,008 | |
iStar Financial, Inc. | 426,487 | 6,474,073 | |
Lamar Advertising Co. Class A | 26,700 | 2,156,826 | |
Lexington Corporate Properties Trust | 593,822 | 6,086,676 | |
Mid-America Apartment Communities, Inc. | 91,614 | 12,161,759 | |
Monmouth Real Estate Investment Corp. Class A | 183,495 | 3,179,968 | |
NexPoint Residential Trust, Inc. | 16,100 | 635,467 | |
Public Storage | 5,500 | 1,251,910 | |
Retail Value, Inc. | 24,066 | 375,670 | |
Sabra Health Care REIT, Inc. | 142,800 | 2,397,612 | |
Safehold, Inc. | 6,780 | 498,872 | |
SITE Centers Corp. | 146,700 | 1,626,903 | |
Terreno Realty Corp. | 11,880 | 672,170 | |
UMH Properties, Inc. | 37,800 | 555,660 | |
Ventas, Inc. | 103,755 | 4,779,993 | |
Washington REIT (SBI) | 120,300 | 2,639,382 | |
Weyerhaeuser Co. | 78,600 | 2,451,534 | |
119,956,701 | |||
Real Estate Management & Development - 0.2% | |||
CBRE Group, Inc. (a) | 32,000 | 1,951,360 | |
TOTAL REAL ESTATE | 121,908,061 | ||
TOTAL COMMON STOCKS | |||
(Cost $139,880,234) | 161,856,044 | ||
Preferred Stocks - 33.1% | |||
Convertible Preferred Stocks - 2.0% | |||
FINANCIALS - 0.9% | |||
Mortgage Real Estate Investment Trusts - 0.9% | |||
Great Ajax Corp. 7.25% | 310,550 | 7,614,686 | |
Ready Capital Corp. 7.00% | 73,475 | 1,772,217 | |
9,386,903 | |||
REAL ESTATE - 1.1% | |||
Equity Real Estate Investment Trusts (REITs) - 0.9% | |||
Braemar Hotels & Resorts, Inc. 5.50% | 18,883 | 309,681 | |
Lexington Corporate Properties Trust Series C, 6.50% | 71,519 | 3,944,048 | |
RLJ Lodging Trust Series A, 1.95% | 38,950 | 1,002,573 | |
Wheeler REIT, Inc. 8.75% (a) | 213,775 | 3,736,097 | |
8,992,399 | |||
Real Estate Management & Development - 0.2% | |||
Landmark Infrastructure Partners LP 3 month U.S. LIBOR + 4.690% 6.856% (b)(c) | 57,650 | 1,486,562 | |
TOTAL REAL ESTATE | 10,478,961 | ||
TOTAL CONVERTIBLE PREFERRED STOCKS | 19,865,864 | ||
Nonconvertible Preferred Stocks - 31.1% | |||
ENERGY - 0.5% | |||
Oil, Gas & Consumable Fuels - 0.5% | |||
DCP Midstream Partners LP: | |||
7.95% (b) | 36,975 | 786,828 | |
Series B, 7.875% (b) | 34,150 | 734,567 | |
Enbridge, Inc.: | |||
Series 1 5 year U.S. Treasury Index + 3.140% 5.949% (b)(c) | 99,425 | 1,918,903 | |
Series L 5 year U.S. Treasury Index + 3.150% 4.959% (b)(c) | 19,600 | 362,600 | |
Energy Transfer Partners LP 7.60% (b) | 54,425 | 1,200,071 | |
Global Partners LP 9.75% (b) | 1,825 | 46,449 | |
5,049,418 | |||
FINANCIALS - 19.0% | |||
Mortgage Real Estate Investment Trusts - 19.0% | |||
AG Mortgage Investment Trust, Inc.: | |||
8.00% | 144,509 | 2,891,625 | |
8.25% | 1,725 | 35,725 | |
Series C 8.00% (b) | 103,493 | 2,021,218 | |
AGNC Investment Corp.: | |||
6.125% (b) | 144,800 | 3,475,200 | |
6.875% (b) | 130,650 | 3,215,297 | |
Series C, 7.00% (b) | 319,899 | 8,051,858 | |
Series E 6.50% (b) | 360,250 | 8,779,293 | |
Annaly Capital Management, Inc.: | |||
6.75% (b) | 163,400 | 4,114,412 | |
Series F, 6.95% (b) | 515,600 | 12,884,844 | |
Series G, 6.50% (b) | 235,110 | 5,781,355 | |
Anworth Mortgage Asset Corp. Series A, 8.625% | 111,413 | 2,789,782 | |
Arbor Realty Trust, Inc.: | |||
Series A, 8.25% | 44,047 | 1,134,655 | |
Series B, 7.75% | 42,675 | 1,078,397 | |
Series C, 8.50% | 16,125 | 422,878 | |
Arlington Asset Investment Corp.: | |||
6.625% | 39,038 | 975,364 | |
8.25%(b) | 22,175 | 481,419 | |
Armour Residential REIT, Inc. Series C 7.00% | 16,500 | 404,828 | |
Capstead Mortgage Corp. Series E, 7.50% | 132,416 | 3,249,489 | |
Cherry Hill Mortgage Investment Corp.: | |||
8.25% (b) | 56,575 | 1,339,130 | |
Series A, 8.20% | 64,250 | 1,619,132 | |
Chimera Investment Corp.: | |||
8.00% (b) | 230,700 | 5,243,811 | |
Series A, 8.00% | 38,500 | 928,235 | |
Series B, 8.00% (b) | 472,958 | 11,053,028 | |
Series C, 7.75% (b) | 333,766 | 7,583,164 | |
Dynex Capital, Inc.: | |||
Series B, 7.625% | 31,088 | 780,931 | |
Series C 6.90% (b) | 173,400 | 4,319,394 | |
Ellington Financial LLC 6.75% (b) | 153,222 | 3,600,717 | |
Exantas Capital Corp. 8.625% (b) | 16,193 | 351,793 | |
Invesco Mortgage Capital, Inc.: | |||
7.50% (b) | 427,081 | 10,207,236 | |
Series A, 7.75% | 31,526 | 776,170 | |
Series B, 7.75% (b) | 236,491 | 5,706,528 | |
MFA Financial, Inc.: | |||
6.50% (b) | 293,900 | 6,389,386 | |
Series B, 7.50% | 195,649 | 4,617,316 | |
New Residential Investment Corp.: | |||
7.125% (b) | 427,786 | 9,526,794 | |
Series A 7.50% (b) | 375,696 | 8,712,390 | |
Series C 6.375% (b) | 129,446 | 2,726,133 | |
New York Mortgage Trust, Inc.: | |||
Series B, 7.75% | 81,977 | 1,906,793 | |
Series C, 7.875% | 121,233 | 2,808,763 | |
Series D, 8.00% (b) | 78,000 | 1,786,590 | |
PennyMac Mortgage Investment Trust: | |||
8.125% (b) | 106,075 | 2,582,926 | |
Series B, 8.00% (b) | 276,005 | 6,820,084 | |
Ready Capital Corp. Series C 6.20% | 136,450 | 3,459,008 | |
Two Harbors Investment Corp.: | |||
7.50% | 118,883 | 2,836,548 | |
7.75% | 11,639 | 282,246 | |
Series A, 8.125% (b) | 292,032 | 7,125,581 | |
Series B, 7.625% (b) | 458,172 | 10,661,662 | |
Series C, 7.25% (b) | 257,472 | 5,793,120 | |
193,332,248 | |||
Real Estate Management & Development - 0.0% | |||
Brookfield Properties Corp. Series EE, 5.10% (b) | 7,675 | 125,021 | |
TOTAL FINANCIALS | 193,457,269 | ||
REAL ESTATE - 11.5% | |||
Equity Real Estate Investment Trusts (REITs) - 11.4% | |||
American Finance Trust, Inc.: | |||
7.50% | 193,698 | 4,875,379 | |
Series C 7.375% (a) | 205,000 | 5,112,700 | |
American Homes 4 Rent: | |||
6.25% | 18,925 | 501,702 | |
Series D, 6.50% | 47,325 | 1,203,002 | |
Series E, 6.35% | 57,650 | 1,467,193 | |
Series F, 5.875% | 47,683 | 1,218,978 | |
Series G, 5.875% | 37,050 | 954,408 | |
Armada Hoffler Properties, Inc. 6.75% | 33,250 | 854,193 | |
Ashford Hospitality Trust, Inc.: | |||
Series D, 8.45% | 50,274 | 863,707 | |
Series F, 7.375% | 66,735 | 1,106,466 | |
Series G, 7.375% | 34,229 | 596,611 | |
Series H, 7.50% | 35,575 | 604,775 | |
Series I, 7.50% | 58,911 | 971,442 | |
Bluerock Residential Growth (REIT), Inc.: | |||
Series A, 8.25% | 42,662 | 1,078,282 | |
Series C, 7.625% | 44,175 | 1,130,880 | |
Series D, 7.125% | 31,900 | 817,597 | |
Braemar Hotels & Resorts, Inc. Series D, 8.25% | 35,150 | 674,880 | |
Cedar Realty Trust, Inc.: | |||
Series B, 7.25% | 40,856 | 1,000,563 | |
Series C, 6.50% | 53,500 | 1,192,515 | |
Centerspace Series C, 6.625% | 57,700 | 1,512,057 | |
City Office REIT, Inc. Series A, 6.625% | 27,525 | 699,961 | |
Colony Capital, Inc.: | |||
Series G, 7.50% | 216,671 | 5,171,958 | |
Series H, 7.125% | 283,325 | 6,558,974 | |
Series I, 7.15% | 285,785 | 6,715,948 | |
Series J, 7.15% | 341,371 | 7,947,117 | |
DiamondRock Hospitality Co. 8.25% | 34,900 | 931,132 | |
Digital Realty Trust, Inc. Series C, 6.625% | 16,950 | 435,276 | |
Farmland Partners, Inc. Series B, 6.00% | 117,050 | 2,995,310 | |
Gladstone Commercial Corp.: | |||
6.625% | 41,125 | 1,057,735 | |
Series D, 7.00% | 107,225 | 2,707,431 | |
Gladstone Land Corp.: | |||
Series A, 6.375% | 11,725 | 294,767 | |
Series D 5.00% | 59,700 | 1,551,603 | |
Global Medical REIT, Inc. Series A, 7.50% | 27,461 | 709,650 | |
Global Net Lease, Inc.: | |||
Series A, 7.25% | 129,625 | 3,357,288 | |
Series B 6.875% | 47,200 | 1,186,608 | |
Healthcare Trust, Inc. Series A 7.375% | 24,500 | 594,125 | |
Hersha Hospitality Trust: | |||
Series C, 6.875% | 550 | 10,637 | |
Series D, 6.50% | 42,250 | 780,780 | |
iStar Financial, Inc.: | |||
Series D, 8.00% | 76,856 | 1,969,819 | |
Series G, 7.65% | 145,700 | 3,673,112 | |
Series I, 7.50% | 303,090 | 7,616,652 | |
Kimco Realty Corp. Series M, 5.25% | 22,400 | 584,416 | |
Monmouth Real Estate Investment Corp. Series C, 6.125% | 99,636 | 2,517,802 | |
National Storage Affiliates Trust Series A, 6.00% | 12,325 | 325,750 | |
Office Properties Income Trust 5.875% | 39,775 | 1,008,296 | |
Pebblebrook Hotel Trust: | |||
6.30% | 53,702 | 1,192,184 | |
6.375% | 55,192 | 1,242,924 | |
Series C, 6.50% | 73,405 | 1,657,485 | |
Series D, 6.375% | 55,989 | 1,252,474 | |
Pennsylvania (REIT): | |||
Series B, 7.375% | 56,533 | 719,665 | |
Series C, 7.20% | 9,575 | 120,932 | |
Series D, 6.875% | 27,400 | 341,952 | |
Plymouth Industrial REIT, Inc. Series A, 7.50% | 30,350 | 800,193 | |
Prologis (REIT), Inc. Series Q, 8.54% | 16,850 | 1,207,303 | |
PS Business Parks, Inc. Series Z 4.875% | 8,000 | 210,720 | |
Public Storage Series F, 5.15% | 29,950 | 785,289 | |
QTS Realty Trust, Inc. Series A, 7.125% | 32,825 | 878,725 | |
Rexford Industrial Realty, Inc.: | |||
Series A, 5.875% | 26,500 | 669,655 | |
Series B, 5.875% | 50,000 | 1,307,500 | |
Series C 5.625% | 11,775 | 312,509 | |
Saul Centers, Inc.: | |||
Series D, 6.125% | 15,958 | 388,577 | |
Series E 6.00% | 13,475 | 314,507 | |
Seritage Growth Properties Series A, 7.00% | 1,050 | 19,100 | |
SITE Centers Corp. Series K, 6.25% | 28,039 | 701,536 | |
Sotherly Hotels, Inc.: | |||
Series B, 8.00% | 12,750 | 178,499 | |
Series C, 7.875% | 19,300 | 269,814 | |
Spirit Realty Capital, Inc. Series A, 6.00% | 16,575 | 438,740 | |
Stag Industrial, Inc. Series C, 6.875% | 17,925 | 455,958 | |
Summit Hotel Properties, Inc.: | |||
Series D, 6.45% | 42,350 | 1,002,848 | |
Series E, 6.25% | 52,384 | 1,211,118 | |
Sunstone Hotel Investors, Inc.: | |||
Series E, 6.95% | 8,475 | 206,159 | |
Series F, 6.45% | 16,950 | 405,297 | |
UMH Properties, Inc.: | |||
Series C, 6.75% | 78,695 | 1,994,131 | |
Series D, 6.375% | 49,775 | 1,233,425 | |
Urstadt Biddle Properties, Inc.: | |||
Series H, 6.25% | 51,175 | 1,273,746 | |
Series K 5.875% | 28,775 | 704,988 | |
VEREIT, Inc. Series F, 6.70% | 95,774 | 2,450,857 | |
Washington Prime Group, Inc.: | |||
Series H, 7.50% | 51,689 | 857,004 | |
Series I, 6.875% | 12,908 | 199,300 | |
116,144,591 | |||
Real Estate Management & Development - 0.1% | |||
Brookfield Property Partners LP: | |||
5.75% | 7,000 | 162,190 | |
6.50% | 5,875 | 145,230 | |
Landmark Infrastructure Partners LP Series B, 7.90% | 22,125 | 556,886 | |
864,306 | |||
TOTAL REAL ESTATE | 117,008,897 | ||
UTILITIES - 0.1% | |||
Multi-Utilities - 0.1% | |||
Brookfield Infrastructure Partners LP Series 5, 5.35% (b) | 35,775 | 704,729 | |
TOTAL NONCONVERTIBLE PREFERRED STOCKS | 316,220,313 | ||
TOTAL PREFERRED STOCKS | |||
(Cost $336,226,719) | 336,086,177 | ||
Principal Amount | Value | ||
Corporate Bonds - 24.2% | |||
Convertible Bonds - 6.5% | |||
FINANCIALS - 6.2% | |||
Mortgage Real Estate Investment Trusts - 6.2% | |||
Arbor Realty Trust, Inc. 4.75% 11/1/22 | 4,274,000 | 4,324,754 | |
Blackstone Mortgage Trust, Inc. 4.75% 3/15/23 | 1,644,000 | 1,648,821 | |
Granite Point Mortgage Trust, Inc.: | |||
5.625% 12/1/22 (d) | 2,696,000 | 2,524,672 | |
6.375% 10/1/23 | 1,901,000 | 1,732,286 | |
KKR Real Estate Finance Trust, Inc. 6.125% 5/15/23 | 4,821,000 | 4,805,934 | |
MFA Financial, Inc. 6.25% 6/15/24 | 4,363,000 | 4,322,443 | |
New York Mortgage Trust, Inc. 6.25% 1/15/22 | 28,000 | 28,018 | |
PennyMac Corp. 5.5% 11/1/24 | 7,066,000 | 6,951,178 | |
Redwood Trust, Inc.: | |||
4.75% 8/15/23 | 3,555,000 | 3,386,690 | |
5.625% 7/15/24 | 12,460,000 | 11,726,221 | |
RWT Holdings, Inc. 5.75% 10/1/25 | 9,771,000 | 9,260,670 | |
Two Harbors Investment Corp. 6.25% 1/15/26 | 3,400,000 | 3,423,015 | |
Western Asset Mortgage Capital Corp. 6.75% 10/1/22 | 9,744,000 | 8,672,160 | |
62,806,862 | |||
REAL ESTATE - 0.3% | |||
Equity Real Estate Investment Trusts (REITs) - 0.3% | |||
Colony Capital, Inc. 5% 4/15/23 | 3,687,000 | 3,617,869 | |
TOTAL CONVERTIBLE BONDS | 66,424,731 | ||
Nonconvertible Bonds - 17.7% | |||
CONSUMER DISCRETIONARY - 2.7% | |||
Hotels, Restaurants & Leisure - 0.2% | |||
Hilton Grand Vacations Borrower LLC/Hilton Grand Vacations Borrower, Inc. 6.125% 12/1/24 | 460,000 | 480,700 | |
Marriott Ownership Resorts, Inc. 6.5% 9/15/26 | 45,000 | 46,807 | |
Times Square Hotel Trust 8.528% 8/1/26 (d) | 1,587,875 | 1,734,711 | |
2,262,218 | |||
Household Durables - 2.5% | |||
Adams Homes, Inc. 7.5% 2/15/25 (d) | 1,550,000 | 1,639,125 | |
Ashton Woods U.S.A. LLC/Ashton Woods Finance Co.: | |||
6.75% 8/1/25 (d) | 4,354,000 | 4,539,045 | |
9.875% 4/1/27 (d) | 3,780,000 | 4,252,500 | |
Brookfield Residential Properties, Inc./Brookfield Residential U.S. Corp.: | |||
4.875% 2/15/30 (d) | 255,000 | 261,533 | |
6.25% 9/15/27 (d) | 1,467,000 | 1,547,685 | |
Century Communities, Inc.: | |||
5.875% 7/15/25 | 1,518,000 | 1,578,720 | |
6.75% 6/1/27 | 1,770,000 | 1,895,458 | |
LGI Homes, Inc. 6.875% 7/15/26 (d) | 4,133,000 | 4,365,481 | |
M/I Homes, Inc. 5.625% 8/1/25 | 1,518,000 | 1,576,823 | |
New Home Co. LLC 7.25% 10/15/25 (d) | 715,000 | 739,131 | |
Picasso Finance Sub, Inc. 6.125% 6/15/25 (d) | 800,000 | 853,768 | |
TRI Pointe Homes, Inc. 5.25% 6/1/27 | 2,042,000 | 2,217,612 | |
25,466,881 | |||
TOTAL CONSUMER DISCRETIONARY | 27,729,099 | ||
ENERGY - 0.4% | |||
Oil, Gas & Consumable Fuels - 0.4% | |||
EG Global Finance PLC: | |||
6.75% 2/7/25 (d) | 1,250,000 | 1,287,500 | |
8.5% 10/30/25 (d) | 305,000 | 324,063 | |
Global Partners LP/GLP Finance Corp. 7% 8/1/27 | 2,045,000 | 2,160,031 | |
3,771,594 | |||
FINANCIALS - 0.6% | |||
Diversified Financial Services - 0.6% | |||
Brixmor Operating Partnership LP 3.85% 2/1/25 | 1,753,000 | 1,918,693 | |
Five Point Operation Co. LP 7.875% 11/15/25 (d) | 3,734,000 | 3,941,293 | |
5,859,986 | |||
HEALTH CARE - 1.0% | |||
Health Care Providers & Services - 1.0% | |||
Sabra Health Care LP: | |||
3.9% 10/15/29 | 1,011,000 | 1,063,234 | |
4.8% 6/1/24 | 1,267,000 | 1,374,339 | |
5.125% 8/15/26 | 6,615,000 | 7,471,823 | |
9,909,396 | |||
INDUSTRIALS - 0.1% | |||
Trading Companies & Distributors - 0.1% | |||
Williams Scotsman International, Inc. 4.625% 8/15/28 (d) | 750,000 | 772,500 | |
REAL ESTATE - 12.9% | |||
Equity Real Estate Investment Trusts (REITs) - 8.5% | |||
American Homes 4 Rent LP 4.25% 2/15/28 | 2,000,000 | 2,283,915 | |
CBL & Associates LP: | |||
4.6% 10/15/24 (e) | 3,930,000 | 1,454,100 | |
5.25% 12/1/23 (e) | 3,629,000 | 1,342,730 | |
5.95% 12/15/26 (e) | 2,551,000 | 943,870 | |
CTR Partnership LP/CareTrust Capital Corp. 5.25% 6/1/25 | 1,428,000 | 1,473,982 | |
ESH Hospitality, Inc. 5.25% 5/1/25 (d) | 2,346,000 | 2,392,920 | |
Global Net Lease, Inc. / Global Net Lease Operating Partnership LP 3.75% 12/15/27 (d) | 925,000 | 941,851 | |
GLP Capital LP/GLP Financing II, Inc. 5.25% 6/1/25 | 2,375,000 | 2,691,683 | |
Healthpeak Properties, Inc. 4% 6/1/25 | 2,011,000 | 2,269,562 | |
iStar Financial, Inc.: | |||
4.25% 8/1/25 | 3,200,000 | 3,152,000 | |
4.75% 10/1/24 | 7,120,000 | 7,303,091 | |
5.5% 2/15/26 | 3,015,000 | 3,063,994 | |
MPT Operating Partnership LP/MPT Finance Corp.: | |||
4.625% 8/1/29 | 1,506,000 | 1,610,622 | |
5% 10/15/27 | 4,237,000 | 4,470,882 | |
5.25% 8/1/26 | 1,466,000 | 1,517,310 | |
Office Properties Income Trust: | |||
4.15% 2/1/22 | 2,117,000 | 2,160,129 | |
4.25% 5/15/24 | 946,000 | 996,789 | |
4.5% 2/1/25 | 3,695,000 | 3,938,867 | |
Omega Healthcare Investors, Inc.: | |||
4.5% 4/1/27 | 483,000 | 543,328 | |
4.75% 1/15/28 | 1,616,000 | 1,837,347 | |
4.95% 4/1/24 | 659,000 | 722,991 | |
5.25% 1/15/26 | 22,000 | 25,194 | |
Senior Housing Properties Trust: | |||
4.75% 5/1/24 | 12,480,000 | 12,792,000 | |
4.75% 2/15/28 | 5,067,000 | 5,067,000 | |
6.75% 12/15/21 | 2,090,000 | 2,131,800 | |
9.75% 6/15/25 | 2,000,000 | 2,269,400 | |
Service Properties Trust: | |||
4.65% 3/15/24 | 1,556,000 | 1,545,108 | |
5% 8/15/22 | 859,000 | 865,443 | |
7.5% 9/15/25 | 1,480,000 | 1,666,104 | |
Uniti Group LP / Uniti Group Finance, Inc. 6.5% 2/15/29 (d)(f) | 3,000,000 | 3,000,000 | |
Uniti Group, Inc. 7.875% 2/15/25 (d) | 1,000,000 | 1,073,455 | |
VEREIT Operating Partnership LP: | |||
3.1% 12/15/29 | 1,000,000 | 1,065,361 | |
4.6% 2/6/24 | 1,757,000 | 1,940,453 | |
4.875% 6/1/26 | 1,593,000 | 1,874,854 | |
VICI Properties, Inc.: | |||
4.125% 8/15/30 (d) | 975,000 | 1,014,614 | |
4.625% 12/1/29 (d) | 1,095,000 | 1,166,175 | |
WP Carey, Inc.: | |||
4% 2/1/25 | 422,000 | 468,231 | |
4.25% 10/1/26 | 459,000 | 527,209 | |
XHR LP 6.375% 8/15/25 (d) | 750,000 | 783,750 | |
86,388,114 | |||
Real Estate Management & Development - 4.4% | |||
DTZ U.S. Borrower LLC 6.75% 5/15/28 (d) | 875,000 | 951,738 | |
Forestar Group, Inc. 8% 4/15/24 (d) | 2,784,000 | 2,919,720 | |
Greystar Real Estate Partners 5.75% 12/1/25 (d) | 3,430,000 | 3,532,900 | |
Howard Hughes Corp.: | |||
4.125% 2/1/29 (d)(f) | 5,000,000 | 4,978,050 | |
5.375% 3/15/25 (d) | 5,200,000 | 5,361,252 | |
5.375% 8/1/28 (d) | 1,345,000 | 1,418,975 | |
Kennedy-Wilson, Inc.: | |||
4.75% 3/1/29 (f) | 4,000,000 | 4,010,000 | |
5.875% 4/1/24 | 10,281,000 | 10,440,356 | |
Mack-Cali Realty LP: | |||
3.15% 5/15/23 | 5,000 | 5,050 | |
4.5% 4/18/22 | 91,000 | 93,026 | |
Mattamy Group Corp. 5.25% 12/15/27 (d) | 2,855,000 | 3,004,888 | |
Mid-America Apartments LP 3.75% 6/15/24 | 356,000 | 387,529 | |
Realogy Group LLC/Realogy Co-Issuer Corp. 5.75% 1/15/29 (d) | 2,310,000 | 2,359,088 | |
Taylor Morrison Communities, Inc./Monarch Communities, Inc.: | |||
5.875% 6/15/27 (d) | 202,000 | 228,203 | |
6.625% 7/15/27 (d) | 1,427,000 | 1,539,376 | |
Washington Prime Group LP 6.45% 8/15/24 | 5,316,000 | 3,748,896 | |
44,979,047 | |||
TOTAL REAL ESTATE | 131,367,161 | ||
TOTAL NONCONVERTIBLE BONDS | 179,409,736 | ||
TOTAL CORPORATE BONDS | |||
(Cost $234,496,505) | 245,834,467 | ||
Asset-Backed Securities - 2.1% | |||
American Homes 4 Rent: | |||
Series 2014-SFR3 Class E, 6.418% 12/17/36 (d) | 1,841,000 | 2,061,766 | |
Series 2015-SFR2: | |||
Class E, 6.07% 10/17/52 (d) | 1,624,000 | 1,825,125 | |
Class XS, 0% 10/17/52 (b)(d)(g)(h) | 913,509 | 9 | |
Conseco Finance Securitizations Corp.: | |||
Series 2002-1 Class M2, 9.546% 12/1/33 | 1,216,000 | 1,237,872 | |
Series 2002-2 Class M2, 9.163% 3/1/33 | 1,545,958 | 1,461,426 | |
GPMT Ltd. Series 2019-FL2 Class D, 1 month U.S. LIBOR + 2.950% 3.1016% 2/22/36 (b)(c)(d) | 358,000 | 350,942 | |
Green Tree Financial Corp.: | |||
Series 1996-4 Class M1, 7.75% 6/15/27 (b) | 5,600 | 5,677 | |
Series 1997-3 Class M1, 7.53% 3/15/28 | 41,908 | 42,521 | |
Home Partners of America Trust: | |||
Series 2017-1 Class F, 1 month U.S. LIBOR + 3.530% 3.692% 7/17/34 (b)(c)(d) | 2,115,000 | 2,114,441 | |
Series 2018-1 Class F, 1 month U.S. LIBOR + 2.350% 2.503% 7/17/37 (b)(c)(d) | 604,000 | 604,556 | |
Kref Ltd. Series 2018-FL1 Class D, 1 month U.S. LIBOR + 2.550% 2.6765% 6/15/36 (b)(c)(d) | 440,000 | 440,247 | |
Lehman ABS Manufactured Housing Contract Trust Series 2001-B Class M2, 7.17% 4/15/40 | 1,904,337 | 1,599,893 | |
Progress Residential Trust: | |||
Series 2017-SFR1 Class F, 5.35% 8/17/34 (d) | 526,000 | 536,838 | |
Series 2018-SFR2 Class F, 4.953% 8/17/35 (d) | 892,000 | 904,817 | |
Series 2018-SFR3 Class F, 5.368% 10/17/35 (d) | 588,000 | 599,858 | |
Series 2019-SFR4 Class F, 3.684% 10/17/36 (d) | 1,000,000 | 1,019,567 | |
Series 2020-SFR1 Class H, 5.268% 4/17/37 (d) | 588,000 | 609,040 | |
Tricon American Homes: | |||
Series 2017-SFR1 Class F, 5.151% 9/17/34 (d) | 1,632,000 | 1,665,917 | |
Series 2017-SFR2 Class F, 5.104% 1/17/36 (d) | 628,000 | 656,705 | |
Series 2018-SFR1 Class F, 4.96% 5/17/37 (d) | 1,386,000 | 1,480,412 | |
VB-S1 Issuer LLC Series 2018-1A Class F, 5.25% 2/15/48 (d) | 2,044,000 | 2,106,402 | |
TOTAL ASSET-BACKED SECURITIES | |||
(Cost $20,912,294) | 21,324,031 | ||
Commercial Mortgage Securities - 17.1% | |||
Ashford Hospitality Trust floater Series 2018-ASHF Class E, 1 month U.S. LIBOR + 3.100% 3.226% 4/15/35 (b)(c)(d) | 905,000 | 820,629 | |
BANK: | |||
Series 2017-BNK4 Class D, 3.357% 5/15/50 (d) | 625,000 | 584,631 | |
Series 2017-BNK8 Class E, 2.8% 11/15/50 (d) | 1,848,000 | 1,292,846 | |
Series 2018-BN12 Class D, 3% 5/15/61 (d) | 318,000 | 275,173 | |
Benchmark Mortgage Trust: | |||
sequential payer Series 2019-B14: | |||
Class 225D, 3.2943% 12/15/62 (b)(d) | 573,000 | 550,810 | |
Class 225E, 3.2943% 12/15/62 (b)(d) | 859,000 | 756,877 | |
Series 2020-B18 Class AGNG, 4.3885% 7/15/53 (b)(d) | 2,058,000 | 1,933,748 | |
BHP Trust floater Series 2019-BXHP Class F, 1 month U.S. LIBOR + 2.930% 3.064% 8/15/36 (b)(c)(d) | 1,050,000 | 1,040,224 | |
BX Commercial Mortgage Trust: | |||
floater: | |||
Series 2018-BIOA Class F, 1 month U.S. LIBOR + 2.470% 2.5971% 3/15/37 (b)(c)(d) | 2,000,000 | 1,999,606 | |
Series 2019-CALM Class E, 1 month U.S. LIBOR + 2.000% 2.126% 11/15/32 (b)(c)(d) | 1,071,000 | 1,069,817 | |
Series 2020-BXLP Class G, 1 month U.S. LIBOR + 2.500% 2.626% 12/15/36 (b)(c)(d) | 986,097 | 987,932 | |
Series 2020-VIVA: | |||
Class D, 3.667% 3/11/44 (b)(d) | 1,505,000 | 1,529,353 | |
Class E, 3.667% 3/11/44 (b)(d) | 968,000 | 965,011 | |
BX Trust: | |||
floater: | |||
Series 2018-IND: | |||
Class G, 1 month U.S. LIBOR + 2.050% 2.176% 11/15/35 (b)(c)(d) | 1,190,700 | 1,193,274 | |
Class H, 1 month U.S. LIBOR + 3.000% 3.126% 11/15/35 (b)(c)(d) | 1,157,800 | 1,159,613 | |
Series 2019-ATL Class E, 1 month U.S. LIBOR + 2.230% 2.3626% 10/15/36 (b)(c)(d) | 1,000,000 | 940,003 | |
Series 2019-IMC Class G, 1 month U.S. LIBOR + 3.600% 3.726% 4/15/34 (b)(c)(d) | 819,000 | 753,484 | |
Series 2019-XL Class J, 1 month U.S. LIBOR + 2.650% 2.776% 10/15/36 (b)(c)(d) | 1,778,984 | 1,782,373 | |
Series 2019-OC11 Class E, 4.0755% 12/9/41 (b)(d) | 4,330,000 | 4,489,039 | |
CALI Mortgage Trust Series 2019-101C Class F, 4.3244% 3/10/39 (b)(d) | 651,000 | 614,878 | |
CAMB Commercial Mortgage Trust floater Series 2019-LIFE Class G, 1 month U.S. LIBOR + 3.250% 3.376% 12/15/37 (b)(c)(d) | 1,021,000 | 986,868 | |
CD Mortgage Trust Series 2017-CD3 Class D, 3.25% 2/10/50 (d) | 2,226,000 | 1,854,469 | |
CGMS Commercial Mortgage Trust Series 2017-MDRB: | |||
Class D, 1 month U.S. LIBOR + 3.250% 3.376% 7/15/30 (b)(c)(d) | 69,000 | 64,136 | |
Class E, 1 month U.S. LIBOR + 3.870% 3.9975% 7/15/30 (b)(c)(d) | 1,229,000 | 1,084,101 | |
CHC Commercial Mortgage Trust floater Series 2019-CHC Class F, 1 month U.S. LIBOR + 2.600% 2.7342% 6/15/34 (b)(c)(d) | 995,703 | 809,520 | |
Citigroup Commercial Mortgage Trust: | |||
Series 2013-GC15 Class D, 5.181% 9/10/46 (b)(d) | 2,496,000 | 2,592,051 | |
Series 2016-C3 Class D, 3% 11/15/49 (d) | 2,990,000 | 2,252,395 | |
COMM Mortgage Trust: | |||
floater Series 2018-HCLV: | |||
Class F, 1 month U.S. LIBOR + 3.050% 3.2086% 9/15/33 (b)(c)(d) | 735,000 | 650,764 | |
Class G, 1 month U.S. LIBOR + 5.050% 5.215% 9/15/33 (b)(c)(d) | 735,000 | 585,444 | |
sequential payer Series 2013-LC6 Class E, 3.5% 1/10/46 (d) | 1,299,000 | 830,914 | |
Series 2012-CR1: | |||
Class C, 5.3192% 5/15/45 (b) | 3,011,000 | 2,726,977 | |
Class D, 5.3192% 5/15/45 (b)(d) | 1,917,000 | 1,449,962 | |
Class G, 2.462% 5/15/45 (d)(h) | 1,133,000 | 219,842 | |
Series 2012-LC4 Class C, 5.5349% 12/10/44 (b) | 802,000 | 730,678 | |
Series 2013-CR10 Class D, 4.7891% 8/10/46 (b)(d) | 1,756,000 | 1,746,935 | |
Series 2013-CR12 Class D, 5.0741% 10/10/46 (b)(d) | 1,262,000 | 684,293 | |
Series 2013-LC6 Class D, 4.3134% 1/10/46 (b)(d) | 2,732,000 | 2,626,269 | |
Series 2014-UBS2 Class D, 4.9928% 3/10/47 (b)(d) | 537,000 | 428,110 | |
Series 2017-CD4 Class D, 3.3% 5/10/50 (d) | 1,192,000 | 1,067,280 | |
Series 2019-CD4 Class C, 4.349% 5/10/50 (b) | 1,006,000 | 1,080,620 | |
COMM Trust Series 2017-COR2 Class D, 3% 9/10/50 (d) | 31,000 | 28,650 | |
Commercial Mortgage Trust pass-thru certificates Series 2012-CR2: | |||
Class D, 4.8307% 8/15/45 (b)(d) | 836,000 | 774,154 | |
Class F, 4.25% 8/15/45 (d) | 783,000 | 456,789 | |
Credit Suisse Mortgage Trust floater: | |||
Series 2019-ICE4 Class F, 1 month U.S. LIBOR + 2.650% 2.776% 5/15/36 (b)(c)(d) | 3,233,000 | 3,232,995 | |
Series 2019-SKLZ Class D, 1 month U.S. LIBOR + 3.600% 3.726% 1/15/34 (b)(c)(d) | 1,430,000 | 1,353,540 | |
CSAIL Commercial Mortgage Trust: | |||
Series 2017-C8 Class D, 4.4701% 6/15/50 (d) | 1,766,000 | 1,446,074 | |
Series 2017-CX10 Class UESD, 4.2366% 10/15/32 (b)(d) | 1,287,000 | 1,240,427 | |
Series 2017-CX9 Class D, 4.1485% 9/15/50 (b)(d) | 461,000 | 368,919 | |
CSMC Trust floater Series 2017-CHOP Class F, 1 month U.S. LIBOR + 4.350% 4.4765% 7/15/32 (b)(c)(d) | 2,493,000 | 2,021,657 | |
DBCCRE Mortgage Trust Series 2014-ARCP Class E, 4.9345% 1/10/34 (b)(d) | 2,168,000 | 2,188,527 | |
DBGS Mortgage Trust Series 2018-C1 Class C, 4.6353% 10/15/51 (b) | 1,000,000 | 1,090,428 | |
DBUBS Mortgage Trust: | |||
Series 2011-LC1A: | |||
Class E, 5.5353% 11/10/46 (b)(d) | 2,902,000 | 2,899,631 | |
Class G, 4.652% 11/10/46 (d) | 2,778,000 | 2,611,320 | |
Series 2011-LC3A Class D, 5.3362% 8/10/44 (b)(d) | 728,000 | 678,456 | |
Freddie Mac pass-thru certificates Series K013 Class X3, 2.9775% 1/25/43 (b)(g) | 586,769 | 265 | |
GPMT Ltd. floater Series 2018-FL1 Class D, 1 month U.S. LIBOR + 2.950% 3.1016% 11/21/35 (b)(c)(d) | 1,500,000 | 1,462,500 | |
GS Mortgage Securities Trust: | |||
floater Series 2018-RIVR Class G, 1 month U.S. LIBOR + 2.600% 2.726% 7/15/35 (b)(c)(d) | 669,000 | 545,937 | |
Series 2011-GC5: | |||
Class C, 5.3762% 8/10/44 (b)(d) | 101,000 | 84,941 | |
Class D, 5.3762% 8/10/44 (b)(d) | 759,236 | 464,371 | |
Class E, 5.3762% 8/10/44 (b)(d)(h) | 848,000 | 474,667 | |
Class F, 4.5% 8/10/44 (d) | 677,000 | 183,943 | |
Series 2012-GC6: | |||
Class C, 5.6505% 1/10/45 (b)(d) | 2,440,000 | 2,420,685 | |
Class D, 5.6505% 1/10/45 (b)(d) | 1,891,000 | 1,637,442 | |
Class E, 5% 1/10/45 (b)(d) | 2,889,000 | 1,954,413 | |
Series 2012-GCJ7 Class D, 5.6244% 5/10/45 (b)(d) | 3,539,000 | 3,290,478 | |
Series 2012-GCJ9: | |||
Class D, 4.7399% 11/10/45 (b)(d) | 1,569,000 | 1,578,711 | |
Class E, 4.7399% 11/10/45 (b)(d) | 355,000 | 293,711 | |
Series 2013-GC14 Class D, 4.7428% 8/10/46 (b)(d) | 339,000 | 280,096 | |
Series 2013-GC16: | |||
Class D, 5.3107% 11/10/46 (b)(d) | 3,292,000 | 3,287,356 | |
Class F, 3.5% 11/10/46 (d) | 1,510,000 | 1,097,649 | |
Series 2016-GS2 Class D, 2.753% 5/10/49 (d) | 1,964,000 | 1,831,413 | |
Hilton U.S.A. Trust: | |||
Series 2016-HHV Class F, 4.1935% 11/5/38 (b)(d) | 1,460,000 | 1,465,963 | |
Series 2016-SFP Class F, 6.1552% 11/5/35 (d) | 3,277,000 | 3,284,839 | |
IMT Trust Series 2017-APTS: | |||
Class EFX, 3.4966% 6/15/34 (b)(d) | 1,693,000 | 1,604,758 | |
Class FFL, 1 month U.S. LIBOR + 2.850% 2.9765% 6/15/34 (b)(c)(d) | 600,089 | 558,119 | |
Independence Plaza Trust Series 2018-INDP Class E, 4.996% 7/10/35 (d) | 504,000 | 493,823 | |
JP Morgan Chase Commercial Mortgage Securities Trust: | |||
floater Series 2018-LAQ: | |||
Class C, 1 month U.S. LIBOR + 1.600% 1.759% 6/15/32 (b)(c)(d) | 1,600,000 | 1,593,962 | |
Class E, 1 month U.S. LIBOR + 3.000% 3.35% 6/15/35 (b)(c)(d) | 15,200 | 15,047 | |
Series 2020-NNN Class FFX, 4.6254% 1/16/37 (d) | 1,406,000 | 1,322,170 | |
JPMBB Commercial Mortgage Securities Trust: | |||
Series 2014-C23 Class UH5, 4.7094% 9/15/47 (d) | 1,624,000 | 1,347,376 | |
Series 2014-C26 Class D, 3.8797% 1/15/48 (b)(d) | 602,000 | 595,693 | |
JPMCC Commercial Mortgage Securities Trust Series 2016-JP4 Class D, 3.4203% 12/15/49 (b)(d) | 1,924,000 | 1,630,399 | |
JPMDB Commercial Mortgage Securities Trust: | |||
Series 2016-C4 Class D, 3.0873% 12/15/49 (b)(d) | 1,308,000 | 1,108,160 | |
Series 2018-C8 Class D, 3.2433% 6/15/51 (b)(d) | 302,000 | 256,183 | |
JPMorgan Chase Commercial Mortgage Securities Corp. Series 2012-CBX: | |||
Class C, 5.131% 6/15/45 (b) | 1,291,000 | 1,226,074 | |
Class E, 5.131% 6/15/45 (b)(d) | 1,078,000 | 522,826 | |
Class G 4% 6/15/45 (d)(h) | 805,000 | 161,729 | |
JPMorgan Chase Commercial Mortgage Securities Trust: | |||
Series 2011-C3: | |||
Class E, 5.7004% 2/15/46 (b)(d) | 3,467,000 | 1,028,416 | |
Class G, 4.409% 2/15/46 (b)(d)(h) | 1,680,000 | 272,131 | |
Class H, 4.409% 2/15/46 (b)(d)(h) | 1,320,000 | 63,158 | |
Series 2011-C4 Class E, 5.4801% 7/15/46 (b)(d) | 1,390,000 | 1,372,861 | |
Series 2013-LC11: | |||
Class D, 4.1669% 4/15/46 (b) | 1,316,000 | 931,486 | |
Class F, 3.25% 4/15/46 (b)(d)(h) | 482,000 | 204,817 | |
Series 2014-DSTY Class E, 3.8046% 6/10/27 (b)(d) | 924,000 | 31,095 | |
Series 2018-AON Class F, 4.6132% 7/5/31 (b)(d) | 961,000 | 951,197 | |
Morgan Stanley BAML Trust: | |||
Series 2012-C6 Class D, 4.6056% 11/15/45 (b)(d)(h) | 2,000,000 | 1,976,286 | |
Series 2012-C6, Class F, 4.6056% 11/15/45 (b)(d)(h) | 1,000,000 | 666,332 | |
Series 2013-C12 Class D, 4.7629% 10/15/46 (b)(d)(h) | 1,500,000 | 1,169,099 | |
Series 2013-C13: | |||
Class D, 4.8982% 11/15/46 (b)(d) | 2,994,000 | 2,695,658 | |
Class E, 4.8982% 11/15/46 (b)(d) | 659,000 | 493,816 | |
Series 2013-C7: | |||
Class D, 4.2361% 2/15/46 (b)(d) | 467,000 | 295,244 | |
Class E, 4.2361% 2/15/46 (b)(d)(h) | 1,501,000 | 868,620 | |
Series 2013-C9 Class C, 4.03% 5/15/46 (b) | 625,000 | 635,291 | |
Series 2016-C30 Class D, 3% 9/15/49 (d) | 522,000 | 362,998 | |
Morgan Stanley Capital I Trust: | |||
sequential payer Series 2011-C1 Class G, 4.193% 9/15/47 (d) | 1,500,000 | 1,379,866 | |
Series 1998-CF1 Class G, 7.35% 7/15/32 (b)(d) | 75,197 | 76,327 | |
Series 2011-C2: | |||
Class D, 5.4513% 6/15/44 (b)(d) | 2,382,000 | 1,969,567 | |
Class F, 5.4513% 6/15/44 (b)(d) | 1,467,000 | 818,317 | |
Class XB, 0.3165% 6/15/44 (b)(d)(g) | 45,179,481 | 300,819 | |
Series 2011-C3: | |||
Class C, 5.2443% 7/15/49 (b)(d) | 2,446,000 | 2,373,807 | |
Class D, 5.2443% 7/15/49 (b)(d) | 83,000 | 74,094 | |
Class E, 5.2443% 7/15/49 (b)(d) | 652,000 | 502,337 | |
Class F, 5.2443% 7/15/49 (b)(d) | 636,000 | 395,230 | |
Class G, 5.2443% 7/15/49 (b)(d)(h) | 979,600 | 508,949 | |
Series 2012-C4 Class D, 5.4185% 3/15/45 (b)(d) | 1,640,000 | 1,134,985 | |
Series 2015-MS1 Class D, 4.0312% 5/15/48 (b)(d) | 2,045,000 | 1,817,974 | |
Series 2015-UBS8 Class D, 3.18% 12/15/48 (d) | 642,000 | 355,952 | |
Series 2016-BNK2 Class C, 3% 11/15/49 (d) | 2,346,000 | 1,921,166 | |
Motel 6 Trust floater: | |||
Series 2017-M6MZ, Class M, 1 month U.S. LIBOR + 6.920% 7.0851% 8/15/24 (b)(c)(d) | 557,301 | 535,118 | |
Series 2017-MTL6 Class C, 1 month U.S. LIBOR + 1.400% 1.5586% 8/15/34 (b)(c)(d) | 315,044 | 315,049 | |
Series 2017-MTL6, Class F, 1 month U.S. LIBOR + 4.250% 4.4086% 8/15/34 (b)(c)(d) | 1,990,071 | 1,985,678 | |
MRCD Series 2019-PARK Class J, 4.25% 12/15/36 (d) | 3,532,000 | 3,262,170 | |
MSCCG Trust: | |||
floater Series 2018-SELF Class E, 1 month U.S. LIBOR + 2.150% 2.3086% 10/15/37 (b)(c)(d) | 939,000 | 944,578 | |
Series 2016-SNR: | |||
Class D, 6.55% 11/15/34 (d) | 2,357,298 | 2,340,238 | |
Class E, 6.8087% 11/15/34 (d) | 1,854,700 | 1,755,570 | |
MSJP Commercial Securities Mortgage Trust Series 2015-HAUL Class E, 4.851% 9/5/47 (b)(d) | 1,000,000 | 780,643 | |
Natixis Commercial Mortgage Securities Trust: | |||
floater Series 2018-FL1: | |||
Class WAN1, 1 month U.S. LIBOR + 2.750% 2.9086% 6/15/35 (b)(c)(d) | 315,000 | 299,248 | |
Class WAN2, 1 month U.S. LIBOR + 3.750% 3.9086% 6/15/35 (b)(c)(d) | 113,725 | 107,637 | |
Series 2019-1776 Class F, 4.2988% 10/15/36 (d) | 1,894,500 | 1,792,503 | |
Progress Residential Trust Series 2019-SFR3 Class F, 3.867% 9/17/36 (d) | 1,000,000 | 1,027,404 | |
Providence Place Group Ltd. Partnership Series 2000-C1 Class A2, 7.75% 7/20/28 (d) | 973,201 | 1,129,015 | |
ReadyCap Commercial Mortgage Trust floater Series 2019-FL3 Class D, 1 month U.S. LIBOR + 2.900% 3.03% 3/25/34 (b)(c)(d) | 599,000 | 563,876 | |
SG Commercial Mortgage Securities Trust Series 2019-PREZ Class F, 3.4771% 9/15/39 (b)(d) | 2,000,000 | 1,760,196 | |
UBS Commercial Mortgage Trust Series 2012-C1: | |||
Class D, 5.5688% 5/10/45 (b)(d) | 492,000 | 383,389 | |
Class E, 5% 5/10/45 (b)(d)(h) | 1,236,000 | 672,129 | |
Class F, 5% 5/10/45 (b)(d)(h) | 399,000 | 58,395 | |
UBS-BAMLL Trust Series 12-WRM Class D, 4.238% 6/10/30 (b)(d) | 1,817,000 | 1,046,656 | |
UBS-Citigroup Commercial Mortgage Trust Series 2011-C1 Class B, 6.0502% 1/10/45 (b)(d) | 34,000 | 34,873 | |
Wells Fargo Commercial Mortgage Trust: | |||
Series 2012-LC5: | |||
Class D, 4.7582% 10/15/45 (b)(d) | 637,000 | 643,375 | |
Class E, 4.7582% 10/15/45 (b)(d) | 1,539,000 | 1,391,779 | |
Class F, 4.7582% 10/15/45 (b)(d) | 774,000 | 580,250 | |
Series 2016-BNK1 Class D, 3% 8/15/49 (d) | 1,260,000 | 818,983 | |
Series 2016-C35 Class D, 3.142% 7/15/48 (d) | 2,512,000 | 1,952,152 | |
Series 2016-NXS6 Class D, 3.059% 11/15/49 (d) | 963,000 | 778,624 | |
WF-RBS Commercial Mortgage Trust: | |||
sequential payer Series 2011-C4I Class G, 5% 6/15/44 (h) | 45,000 | 5,561 | |
Series 2011-C3: | |||
Class C, 5.335% 3/15/44 (d) | 2,155,000 | 2,131,335 | |
Class D, 5.6338% 3/15/44 (b)(d) | 3,352,000 | 1,577,539 | |
Class E, 5% 3/15/44 (d)(h) | 34,000 | 4,767 | |
Series 2011-C5: | |||
Class C, 5.6556% 11/15/44 (b)(d) | 1,250,000 | 1,268,478 | |
Class E, 5.6556% 11/15/44 (b)(d) | 903,000 | 873,865 | |
Class F, 5.25% 11/15/44 (b)(d) | 2,000,000 | 1,622,607 | |
Class G, 5.25% 11/15/44 (b)(d) | 1,000,000 | 763,554 | |
Series 2012-C7 Class D, 4.8043% 6/15/45 (b)(d)(h) | 620,000 | 252,889 | |
Series 2012-C8 Class E, 4.8847% 8/15/45 (b)(d) | 557,000 | 421,610 | |
Series 2013-C11: | |||
Class D, 4.2555% 3/15/45 (b)(d) | 65,000 | 61,586 | |
Class E, 4.2555% 3/15/45 (b)(d) | 53,000 | 43,161 | |
Series 2013-C13 Class D, 4.1392% 5/15/45 (b)(d) | 45,000 | 44,069 | |
Series 2013-C16 Class D, 5.0167% 9/15/46 (b)(d) | 715,000 | 567,535 | |
Series 2013-UBS1 Class D, 5.0397% 3/15/46 (b)(d) | 910,000 | 877,310 | |
WP Glimcher Mall Trust Series 2015-WPG: | |||
Class PR1, 3.516% 6/5/35 (b)(d) | 1,168,000 | 997,991 | |
Class PR2, 3.516% 6/5/35 (b)(d) | 459,000 | 353,477 | |
TOTAL COMMERCIAL MORTGAGE SECURITIES | |||
(Cost $185,678,745) | 174,152,972 | ||
Bank Loan Obligations - 3.3% | |||
COMMUNICATION SERVICES - 0.3% | |||
Wireless Telecommunication Services - 0.3% | |||
SBA Senior Finance II, LLC Tranche B, term loan 3 month U.S. LIBOR + 1.750% 1.88% 4/11/25 (b)(c)(i) | 3,685,974 | 3,668,392 | |
CONSUMER DISCRETIONARY - 0.5% | |||
Hotels, Restaurants & Leisure - 0.5% | |||
Airbnb, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 7.500% 8.5% 4/17/25 (b)(c)(i) | 462,675 | 500,702 | |
Caesars Resort Collection LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.750% 2.8708% 12/22/24 (b)(c)(i) | 836,326 | 821,339 | |
Playa Resorts Holding BV Tranche B, term loan 3 month U.S. LIBOR + 2.750% 3.75% 4/27/24 (b)(c)(i) | 3,988,046 | 3,832,393 | |
5,154,434 | |||
ENERGY - 0.5% | |||
Energy Equipment & Services - 0.1% | |||
Kestrel Acquisition LLC Tranche B, term loan 3 month U.S. LIBOR + 4.250% 5.25% 6/1/25 (b)(c)(i) | 1,462,500 | 1,316,250 | |
Oil, Gas & Consumable Fuels - 0.4% | |||
Hamilton Projs. Acquiror LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 4.750% 5.75% 6/17/27 (b)(c)(i) | 3,343,200 | 3,371,049 | |
TOTAL ENERGY | 4,687,299 | ||
FINANCIALS - 0.8% | |||
Capital Markets - 0.1% | |||
Blackstone CQP Holdco LP Tranche B, term loan 3 month U.S. LIBOR + 3.500% 3.7358% 9/30/24 (b)(c)(i) | 987,469 | 986,590 | |
Diversified Financial Services - 0.6% | |||
Agellan Portfolio 9% 8/7/25 (b)(h)(i) | 1,217,000 | 1,217,000 | |
Veritas Multifamily Portfolio 1 month U.S. LIBOR + 8.500% 8.75% 11/15/22 (b)(c)(h)(i) | 5,360,000 | 5,360,000 | |
6,577,000 | |||
Thrifts & Mortgage Finance - 0.1% | |||
Ocwen Loan Servicing LLC Tranche B, term loan 3 month U.S. LIBOR + 6.500% 7.5% 5/15/22 (b)(c)(i) | 861,254 | 856,233 | |
TOTAL FINANCIALS | 8,419,823 | ||
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% 4.5% 12/20/24 (b)(c)(i) | 894,792 | 890,318 | |
REAL ESTATE - 1.1% | |||
Equity Real Estate Investment Trusts (REITs) - 0.3% | |||
ESH Hospitality, Inc. 1LN, term loan 3 month U.S. LIBOR + 2.000% 2.1208% 9/18/26 (b)(c)(i) | 1,349,570 | 1,335,238 | |
iStar Financial, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.750% 2.8878% 6/28/23 (b)(c)(i) | 2,003,869 | 2,001,364 | |
3,336,602 | |||
Real Estate Management & Development - 0.8% | |||
Aragon Junior Mezzanine 1 month U.S. LIBOR + 6.000% 7.25% 1/15/25 (b)(c)(h)(i) | 1,343,050 | 1,343,050 | |
DTZ U.S. Borrower LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.750% 2.8725% 8/21/25 (b)(c)(i) | 4,712,301 | 4,683,839 | |
Lightstone Holdco LLC: | |||
Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.750% 3.9615% 1/30/24 (b)(c)(i) | 1,572,936 | 1,423,507 | |
Tranche C 1LN, term loan 3 month U.S. LIBOR + 3.750% 3.9615% 1/30/24 (b)(c)(i) | 88,716 | 80,288 | |
7,530,684 | |||
TOTAL REAL ESTATE | 10,867,286 | ||
UTILITIES - 0.0% | |||
Electric Utilities - 0.0% | |||
Southeast Powergen LLC Tranche B, term loan 3 month U.S. LIBOR + 3.500% 4.5% 12/2/21 (b)(c)(i) | 231,598 | 218,860 | |
TOTAL BANK LOAN OBLIGATIONS | |||
(Cost $34,218,960) | 33,906,412 | ||
Shares | Value | ||
Money Market Funds - 4.7% | |||
Fidelity Cash Central Fund 0.09% (j) | |||
(Cost $48,204,758) | 48,198,744 | 48,208,384 | |
TOTAL INVESTMENT IN SECURITIES - 100.4% | |||
(Cost $999,618,215) | 1,021,368,487 | ||
NET OTHER ASSETS (LIABILITIES) - (0.4)% | (4,525,711) | ||
NET ASSETS - 100% | $1,016,842,776 |
Legend
(a) Non-income producing
(b) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end.
(c) Coupon is indexed to a floating interest rate which may be multiplied by a specified factor and/or subject to caps or floors.
(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 $248,152,196 or 24.4% of net assets.
(e) Non-income producing - Security is in default.
(f) Security or a portion of the security purchased on a delayed delivery or when-issued basis.
(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) Remaining maturities of bank loan obligations may be less than the stated maturities shown as a result of contractual or optional prepayments by the borrower. Such prepayments cannot be predicted with certainty.
(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 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 | $22,288 |
Total | $22,288 |
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 January 31, 2021, 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: | ||||
Energy | $5,049,418 | $5,049,418 | $-- | $-- |
Financials | 241,300,796 | 231,913,893 | 9,386,903 | -- |
Industrials | 1,491,359 | 1,491,359 | -- | -- |
Real Estate | 249,395,919 | 238,916,958 | 10,478,961 | -- |
Utilities | 704,729 | 704,729 | -- | -- |
Corporate Bonds | 245,834,467 | -- | 245,834,467 | -- |
Asset-Backed Securities | 21,324,031 | -- | 21,324,022 | 9 |
Commercial Mortgage Securities | 174,152,972 | -- | 166,573,601 | 7,579,371 |
Bank Loan Obligations | 33,906,412 | -- | 25,986,362 | 7,920,050 |
Money Market Funds | 48,208,384 | 48,208,384 | -- | -- |
Total Investments in Securities: | $1,021,368,487 | $526,284,741 | $479,584,316 | $15,499,430 |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value:
Investments in Securities: | |
Beginning Balance | $8,883,622 |
Net Realized Gain (Loss) on Investment Securities | (22,287) |
Net Unrealized Gain (Loss) on Investment Securities | 138,525 |
Cost of Purchases | 5,360,000 |
Proceeds of Sales | (3,785,950) |
Amortization/Accretion | (8,569) |
Transfers into Level 3 | 6,299,728 |
Transfers out of Level 3 | (1,365,639) |
Ending Balance | $15,499,430 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2021 | $31,172 |
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. Cost of purchases and proceeds of sales may include securities received and/or delivered through 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 reconciliations are included in Net Gain (Loss) on the Fund's Statement of Operations.
Other Information
The composition of credit quality ratings as a percentage of Total Net Assets is as follows (Unaudited):
U.S. Government and U.S. Government Agency Obligations | 0.0% |
AAA,AA,A | 1.3% |
BBB | 5.9% |
BB | 12.7% |
B | 8.6% |
CCC,CC,C | 3.2% |
Not Rated | 15.0% |
Equities | 49.0% |
Short-Term Investments and Net Other Assets | 4.3% |
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
January 31, 2021 (Unaudited) | ||
Assets | ||
Investment in securities, at value — See accompanying schedule: Unaffiliated issuers (cost $951,413,457) | $973,160,103 | |
Fidelity Central Funds (cost $48,204,758) | 48,208,384 | |
Total Investment in Securities (cost $999,618,215) | $1,021,368,487 | |
Receivable for investments sold | 6,434,256 | |
Receivable for fund shares sold | 496,724 | |
Dividends receivable | 921,835 | |
Interest receivable | 4,903,766 | |
Distributions receivable from Fidelity Central Funds | 4,283 | |
Total assets | 1,034,129,351 | |
Liabilities | ||
Payable for investments purchased | ||
Regular delivery | $4,674,027 | |
Delayed delivery | 12,015,800 | |
Payable for fund shares redeemed | 592,163 | |
Other payables and accrued expenses | 4,585 | |
Total liabilities | 17,286,575 | |
Net Assets | $1,016,842,776 | |
Net Assets consist of: | ||
Paid in capital | $1,004,731,584 | |
Total accumulated earnings (loss) | 12,111,192 | |
Net Assets | $1,016,842,776 | |
Net Asset Value, offering price and redemption price per share ($1,016,842,776 ÷ 96,146,605 shares) | $10.58 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended January 31, 2021 (Unaudited) | ||
Investment Income | ||
Dividends | $4,898,988 | |
Interest | 14,850,442 | |
Income from Fidelity Central Funds | 22,288 | |
Total income | 19,771,718 | |
Expenses | ||
Custodian fees and expenses | $9,746 | |
Independent trustees' fees and expenses | 2,327 | |
Miscellaneous | 977 | |
Total expenses before reductions | 13,050 | |
Expense reductions | (138) | |
Total expenses after reductions | 12,912 | |
Net investment income (loss) | 19,758,806 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 9,089,286 | |
Fidelity Central Funds | 57 | |
Foreign currency transactions | (42) | |
Total net realized gain (loss) | 9,089,301 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 78,591,257 | |
Fidelity Central Funds | (3,391) | |
Total change in net unrealized appreciation (depreciation) | 78,587,866 | |
Net gain (loss) | 87,677,167 | |
Net increase (decrease) in net assets resulting from operations | $107,435,973 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended January 31, 2021 (Unaudited) | Year ended July 31, 2020 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $19,758,806 | $52,229,883 |
Net realized gain (loss) | 9,089,301 | 1,921,874 |
Change in net unrealized appreciation (depreciation) | 78,587,866 | (117,276,420) |
Net increase (decrease) in net assets resulting from operations | 107,435,973 | (63,124,663) |
Distributions to shareholders | (46,833,033) | (61,647,911) |
Share transactions | ||
Proceeds from sales of shares | 56,362,147 | 145,680,876 |
Reinvestment of distributions | 46,833,033 | 61,647,911 |
Cost of shares redeemed | (82,009,583) | (119,143,355) |
Net increase (decrease) in net assets resulting from share transactions | 21,185,597 | 88,185,432 |
Total increase (decrease) in net assets | 81,788,537 | (36,587,142) |
Net Assets | ||
Beginning of period | 935,054,239 | 971,641,381 |
End of period | $1,016,842,776 | $935,054,239 |
Other Information | ||
Shares | ||
Sold | 5,396,594 | 13,247,736 |
Issued in reinvestment of distributions | 4,585,557 | 5,716,683 |
Redeemed | (7,947,113) | (11,515,197) |
Net increase (decrease) | 2,035,038 | 7,449,222 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Series Real Estate Income Fund
Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $9.94 | $11.21 | $10.97 | $11.34 | $11.43 | $11.13 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .21 | .56 | .61 | .59 | .55 | .52 |
Net realized and unrealized gain (loss) | .93 | (1.16) | .42 | (.20) | .06 | .42 |
Total from investment operations | 1.14 | (.60) | 1.03 | .39 | .61 | .94 |
Distributions from net investment income | (.44) | (.55) | (.62) | (.60) | (.52) | (.53) |
Distributions from net realized gain | (.07) | (.12) | (.17) | (.16) | (.18) | (.11) |
Total distributions | (.50)B | (.67) | (.79) | (.76) | (.70) | (.64) |
Net asset value, end of period | $10.58 | $9.94 | $11.21 | $10.97 | $11.34 | $11.43 |
Total ReturnC,D | 11.74% | (5.68)% | 9.91% | 3.61% | 5.65% | 8.93% |
Ratios to Average Net AssetsE,F | ||||||
Expenses before reductions | - %G,H | - %H | - %H | - %H | .63% | .77% |
Expenses net of fee waivers, if any | - %G,H | - %H | - %H | - %H | .63% | .77% |
Expenses net of all reductions | - %G,H | - %H | - %H | - %H | .63% | .77% |
Net investment income (loss) | 4.08%G | 5.36% | 5.67% | 5.36% | 4.89% | 4.81% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $1,016,843 | $935,054 | $971,641 | $907,388 | $423,538 | $411,102 |
Portfolio turnover rateI | 26%G | 25%J | 16% | 27% | 24% | 24% |
A Calculated based on average shares outstanding during the period.
B Total distributions per share do not sum due to rounding.
C Total returns for periods of less than one year are not annualized.
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment advisor, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
G Annualized
H Amount represents less than .005%.
I Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
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 (Unaudited)
For the period ended January 31, 2021
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 are offered only to certain other Fidelity funds and Fidelity managed 529 plans. 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 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 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 - Investment 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 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. Independent prices obtained from a single source or broker are evaluated by management and may be categorized as Level 3 in the hierarchy. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances. The Fund invests a significant portion of its assets in below investment grade securities. The value of these securities can be more volatile due to changes in the credit quality of the issuer and is sensitive to changes in economic, market and regulatory conditions.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
The following provides information on Level 3 securities held by the Fund that were valued at period end based on unobservable inputs. These amounts exclude valuations provided by a broker.
Asset Type | Fair Value | Valuation Technique(s) | Unobservable Input | Amount or Range/Weighted Average | Impact to Valuation from an Increase in Input(a) |
Asset-Backed Securities | $ 9 | Recovery value | Recovery value | 0.0% | Increase |
Commercial Mortgage Securities | $ 7,579,371 | Discounted cash flow | Yield Spread | 5.4%-195.0%/38.3% | Decrease |
Spread | 2733.9% | Decrease | |||
Bank Loan Obligations | $ 7,920,050 | Discounted cash flow | Yield | 7.6%-9.5%/9.0% | Decrease |
(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 January 31, 2021, as well as a roll forward of Level 3 investments, is included at the end of the Fund's Schedule of Investments.
Foreign Currency. Certain Funds 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. 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. 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 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 | $78,341,436 |
Gross unrealized depreciation | (56,464,656) |
Net unrealized appreciation (depreciation) | $21,876,780 |
Tax cost | $999,491,707 |
The Fund elected to defer to its next fiscal year approximately $1,594,057 of capital losses recognized during the period November 1, 2019 to July 31, 2020.
Delayed Delivery Transactions and When-Issued Securities. During the period, certain Funds 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. Securities purchased on a delayed delivery or when-issued basis are identified as such in the Schedule of Investments. Compensation for interest forgone in the purchase of a delayed delivery or when-issued debt security may be received. With respect to purchase commitments, each applicable Fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Payables and receivables associated with the purchases and sales of delayed delivery securities having the same coupon, settlement date and broker are offset. Delayed delivery or when-issued securities that have been purchased from and sold to different brokers are reflected as both payables and receivables in the Statement of Assets and Liabilities under the caption "Delayed delivery", as applicable. 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 (including Private Placements). 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. Direct debt instruments 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 a fund to supply additional cash to the borrower on demand. Loans may be acquired through assignment, participation, or may be made directly to a borrower. Such instruments are presented in the Bank Loan Obligations section in the Schedule of Investments. Certain funds may also invest in unfunded loan commitments, which are contractual obligations for future funding. Information regarding unfunded commitments is included at the end of the Schedule of Investments, if applicable.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, are noted in the table below.
Purchases ($) | Sales ($) | |
Fidelity Series Real Estate Income Fund | 128,169,358 | 120,889,013 |
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company LLC (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. A portion of portfolio transactions were placed 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 as follows:
Amount | |
Fidelity Series Real Estate Income Fund | $1,322 |
Interfund Trades. Funds 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, and includes $2,104,122 and $670,213, respectively.
Prior Fiscal Year Affiliated Exchanges In-Kind. During the prior period, the Fund received investments, including accrued interest, and cash valued at $71,229,507 in exchange for 6,309,079 shares of the Fund. The amount of in-kind exchanges is included in share transactions in the accompanying Statement of Changes in Net Assets.
6. Committed Line of Credit.
Certain Funds participate 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 participating funds have agreed to pay commitment fees on their pro-rata portion of the line of credit, which are reflected in Miscellaneous expenses on the Statement of Operations, and are listed below. Effective during January 2021, commitment fees are borne by the investment advisor.
Amount | |
Fidelity Series Real Estate Income Fund | $977 |
During the period, there were no borrowings 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 by $138.
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, mutual funds managed by the investment adviser or its affiliates were the owners of record of all of the outstanding shares of the Fund.
9. Coronavirus (COVID-19) Pandemic.
An outbreak of COVID-19 first detected in China during December 2019 has since spread globally and was declared a pandemic by the World Health Organization during March 2020. Developments that disrupt global economies and financial markets, such as the COVID-19 pandemic, may magnify factors that affect the Fund's performance.
Shareholder Expense Example
As a shareholder, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or redemption proceeds, as applicable and (2) ongoing costs, which generally include 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 a fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2020 to January 31, 2021).
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 for a class/Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. If any fund is a shareholder of any underlying mutual funds or exchange-traded funds (ETFs) (the Underlying Funds), such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses incurred presented in the table. These fees and expenses are not included in the 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 actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the 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. If any fund is a shareholder of any Underlying Funds, such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses as presented in the table. These fees and expenses are not included in the 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 August 1, 2020 | Ending Account Value January 31, 2021 | Expenses Paid During Period-B August 1, 2020 to January 31, 2021 | ||
Fidelity Series Real Estate Income Fund | - %-C | ||||
Actual | $1,000.00 | $1,117.40 | $--D | ||
Hypothetical-E | $1,000.00 | $1,025.21 | $--D |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/ 365 (to reflect the one-half year period). The fees and expenses of any Underlying Funds are not included in each annualized expense ratio.
C Amount represents less than .005%.
D Amount represents less than $.005.
E 5% return per year before expenses
Board Approval of Investment Advisory Contracts
Fidelity Series Real Estate Income Fund
At its January 2021 meeting, the Board of Trustees, including the Independent Trustees (together, the Board), voted to continue the management contract with Fidelity Management & Research Company LLC (FMR), and the sub-advisory agreements and sub-subadvisory agreements, in each case, where applicable (together, the Advisory Contracts) for the fund for four months from February 1, 2021 through May 31, 2021, in connection with changes to the Board's meeting calendar.The Board considered that the approval of the fund's Advisory Contracts will not result in any changes in (i) the investment process or strategies employed in the management of the fund's assets; (ii) the fees and expenses paid by shareholders; (iii) the nature, extent or quality of services provided under the fund's Advisory Contracts; or (iv) the day-to-day management of the fund or the persons primarily responsible for such management. The Board also considered that since its last approval of the fund's Advisory Contracts, FMR had provided additional information on the fund in support of the annual contract renewal process, including competitive analyses on total expenses and management fees and in-depth reviews of fund performance and fund profitability information. The Board also considered the findings of certain ad hoc committees that had been previously formed to discuss matters relevant to all of the Fidelity funds, including economies of scale, fall-out benefits and retail vs. institutional funds. The Board noted that, effective August 1, 2020, the expense cap for the fund was lowered and that the expense cap arrangements were amended to remove certain exclusions. The Board concluded that the fund's Advisory Contracts are fair and reasonable, and that the fund's Advisory Contracts should be renewed, without modification, through May 31, 2021, with the understanding that the Board will consider the annual renewal for a full one year period in May 2021.In connection with its consideration of future renewals of the fund's Advisory Contracts, the Board will consider: (i) the nature, extent and quality of services provided to the funds, including shareholder and administrative services and investment performance; (ii) the competitiveness of the management fee and total expenses for the fund; (iii) the costs of the services and profitability, including the revenues earned and the expenses incurred in conducting the business of developing, marketing, distributing, managing, administering, and servicing the fund and its shareholders, to the extent applicable; and (iv) whether there have been economies of scale in respect of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is the potential for realization of any further economies.Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board ultimately concluded that the fund's management fee structure is fair and reasonable, and that the continuation of the fund's Advisory Contracts should be approved for four months from February 1, 2021 through May 31, 2021.SRE-SANN-0321
1.924313.109
Fidelity® Series Blue Chip Growth Fund
Semi-Annual Report
January 31, 2021
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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 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. © 2021 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.
Note to Shareholders:
Early in 2020, the outbreak and spread of a new coronavirus emerged as a public health emergency that had a major influence on financial markets, primarily based on its impact on the global economy and the outlook for corporate earnings. The virus causes a respiratory disease known as COVID-19. On March 11, the World Health Organization declared the COVID-19 outbreak a pandemic, citing sustained risk of further global spread.
In the weeks following, as the crisis worsened, we witnessed an escalating human tragedy with wide-scale social and economic consequences from coronavirus-containment measures. The outbreak of COVID-19 prompted a number of measures to limit the spread, including travel and border restrictions, quarantines, and restrictions on large gatherings. In turn, these resulted in lower consumer activity, diminished demand for a wide range of products and services, disruption in manufacturing and supply chains, and – given the wide variability in outcomes regarding the outbreak – significant market uncertainty and volatility. Amid the turmoil, global governments and central banks took unprecedented action to help support consumers, businesses, and the broader economies, and to limit disruption to financial systems.
The situation continues to unfold, and the extent and duration of its impact on financial markets and the economy remain highly uncertain. Extreme events such as the coronavirus crisis are “exogenous shocks” that can have significant adverse effects on mutual funds and their investments. Although multiple asset classes may be affected by market disruption, the duration and impact may not be the same for all types of assets.
Fidelity is committed to helping you stay informed amid news about COVID-19 and during increased market volatility, and we’re taking extra steps to be responsive to customer needs. We encourage you to visit our websites, where we offer ongoing updates, commentary, and analysis on the markets and our funds.
Investment Summary (Unaudited)
Top Ten Stocks as of January 31, 2021
% of fund's net assets | |
Apple, Inc. | 9.4 |
Amazon.com, Inc. | 7.6 |
Microsoft Corp. | 5.9 |
Alphabet, Inc. Class A | 4.9 |
Tesla, Inc. | 3.8 |
Facebook, Inc. Class A | 3.6 |
lululemon athletica, Inc. | 3.3 |
Marvell Technology Group Ltd. | 2.8 |
NVIDIA Corp. | 2.3 |
Lyft, Inc. | 2.2 |
45.8 |
Top Five Market Sectors as of January 31, 2021
% of fund's net assets | |
Consumer Discretionary | 33.8 |
Information Technology | 32.7 |
Communication Services | 12.6 |
Health Care | 8.7 |
Industrials | 6.2 |
Asset Allocation (% of fund's net assets)
As of January 31, 2021 * | ||
Stocks | 96.8% | |
Convertible Securities | 3.1% | |
Short-Term Investments and Net Other Assets (Liabilities) | 0.1% |
* Foreign investments - 13.7%
Schedule of Investments January 31, 2021 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 96.5% | |||
Shares | Value | ||
COMMUNICATION SERVICES - 12.5% | |||
Entertainment - 2.6% | |||
Activision Blizzard, Inc. | 197,948 | $18,013,268 | |
Bilibili, Inc. ADR (a) | 36,200 | 4,122,818 | |
Madison Square Garden Entertainment Corp. (a) | 59,400 | 5,271,750 | |
Motorsport Games, Inc. Class A | 25,000 | 754,500 | |
Netflix, Inc. (a) | 78,224 | 41,645,675 | |
Nintendo Co. Ltd. | 2,000 | 1,151,271 | |
Nintendo Co. Ltd. ADR | 32,500 | 2,348,775 | |
Playtika Holding Corp. | 38,700 | 1,127,718 | |
Roku, Inc. Class A (a) | 37,055 | 14,415,507 | |
Sea Ltd. ADR (a) | 193,231 | 41,875,090 | |
Skillz, Inc. (b) | 272,435 | 7,524,655 | |
The Walt Disney Co. | 30,600 | 5,146,002 | |
WME Entertainment Parent, LLC Class A (a)(b)(c)(d) | 3,194,617 | 4,759,979 | |
148,157,008 | |||
Interactive Media & Services - 9.7% | |||
Alphabet, Inc. Class A (a) | 155,513 | 284,178,236 | |
Facebook, Inc. Class A (a) | 794,410 | 205,219,935 | |
InterActiveCorp (a) | 5,800 | 1,217,710 | |
Match Group, Inc. (a) | 96,663 | 13,519,287 | |
Pinterest, Inc. Class A (a) | 53,400 | 3,658,434 | |
Snap, Inc. Class A (a) | 410,200 | 21,715,988 | |
Tencent Holdings Ltd. | 195,600 | 17,428,607 | |
Yandex NV Series A (a) | 21,100 | 1,321,704 | |
Zillow Group, Inc. Class C (a) | 21,100 | 2,752,706 | |
Zoominfo Technologies, Inc. | 216,500 | 10,394,165 | |
561,406,772 | |||
Wireless Telecommunication Services - 0.2% | |||
T-Mobile U.S., Inc. | 75,334 | 9,498,111 | |
TOTAL COMMUNICATION SERVICES | 719,061,891 | ||
CONSUMER DISCRETIONARY - 32.7% | |||
Auto Components - 0.3% | |||
QuantumScape Corp. Class A (a) | 446,077 | 19,515,869 | |
Automobiles - 4.6% | |||
Fisker, Inc. (a)(e) | 87,500 | 1,315,125 | |
General Motors Co. | 46,800 | 2,371,824 | |
Harley-Davidson, Inc. | 217,392 | 8,715,245 | |
Hyundai Motor Co. | 6,600 | 1,351,407 | |
Kia Motors Corp. | 20,030 | 1,477,548 | |
Li Auto, Inc. ADR (a)(e) | 31,000 | 999,750 | |
Lordstown Motors Corp. (b) | 532,391 | 13,405,605 | |
Lordstown Motors Corp. (a)(e) | 29,174 | 734,601 | |
Neutron Holdings, Inc. warrants (a)(b)(d) | 691,699 | 7 | |
NIO, Inc. sponsored ADR (a) | 23,500 | 1,339,500 | |
Niu Technologies ADR (a)(e) | 105,100 | 4,596,023 | |
Rad Power Bikes, Inc. (b)(d) | 110,210 | 531,635 | |
Tesla, Inc. (a) | 276,035 | 219,042,054 | |
XPeng, Inc. ADR (a)(e) | 182,600 | 8,797,668 | |
264,677,992 | |||
Distributors - 0.1% | |||
InPost SA | 134,600 | 3,234,208 | |
Diversified Consumer Services - 0.1% | |||
Bright Horizons Family Solutions, Inc. (a) | 40,100 | 6,093,997 | |
FSN E-Commerce Ventures Pvt Ltd. (b)(d) | 27,282 | 2,268,967 | |
8,362,964 | |||
Hotels, Restaurants & Leisure - 4.2% | |||
Airbnb, Inc. Class A (e) | 103,500 | 19,005,705 | |
Boyd Gaming Corp. | 211,000 | 9,528,760 | |
Caesars Entertainment, Inc. (a) | 367,947 | 25,899,789 | |
Chipotle Mexican Grill, Inc. (a) | 16,842 | 24,926,160 | |
Churchill Downs, Inc. | 42,352 | 7,938,882 | |
DraftKings, Inc. Class A (a) | 23,300 | 1,260,763 | |
Evolution Gaming Group AB (f) | 39,900 | 3,894,360 | |
Flutter Entertainment PLC | 5,800 | 1,082,761 | |
Hilton Worldwide Holdings, Inc. | 57,300 | 5,809,647 | |
Kambi Group PLC (a) | 83,200 | 4,659,670 | |
Las Vegas Sands Corp. | 115,300 | 5,544,777 | |
Marriott International, Inc. Class A | 77,000 | 8,955,870 | |
MGM Resorts International | 223,000 | 6,368,880 | |
Norwegian Cruise Line Holdings Ltd. (a)(e) | 126,900 | 2,874,285 | |
Penn National Gaming, Inc. (a) | 802,052 | 83,188,833 | |
Planet Fitness, Inc. (a) | 81,233 | 5,848,776 | |
Rush Street Interactive, Inc. (b) | 170,600 | 3,099,802 | |
SeaWorld Entertainment, Inc. (a) | 59,600 | 1,702,772 | |
Texas Roadhouse, Inc. Class A | 65,700 | 5,006,997 | |
Vail Resorts, Inc. | 23,476 | 6,243,677 | |
Wynn Resorts Ltd. | 65,100 | 6,479,403 | |
239,320,569 | |||
Household Durables - 1.1% | |||
D.R. Horton, Inc. | 48,900 | 3,755,520 | |
KB Home | 65,200 | 2,714,928 | |
Lennar Corp. Class A | 58,400 | 4,855,960 | |
Purple Innovation, Inc. (a) | 131,300 | 4,469,452 | |
Sonos, Inc. (a) | 51,200 | 1,338,880 | |
Sony Corp. sponsored ADR | 48,000 | 4,594,080 | |
Taylor Morrison Home Corp. (a) | 199,500 | 5,183,010 | |
Tempur Sealy International, Inc. (a) | 171,200 | 4,519,680 | |
Toll Brothers, Inc. | 107,100 | 5,472,810 | |
TRI Pointe Homes, Inc. (a) | 258,700 | 5,225,740 | |
Tupperware Brands Corp. (a) | 634,900 | 19,097,792 | |
61,227,852 | |||
Internet & Direct Marketing Retail - 11.3% | |||
Alibaba Group Holding Ltd. sponsored ADR (a) | 103,988 | 26,395,274 | |
Amazon.com, Inc. (a) | 135,480 | 434,375,976 | |
BHG Group AB (a) | 50,200 | 941,967 | |
ContextLogic, Inc. | 347,500 | 9,404,393 | |
ContextLogic, Inc. (e) | 31,400 | 944,198 | |
Delivery Hero AG (a)(f) | 23,800 | 3,624,752 | |
Doordash, Inc. (e) | 24,800 | 4,793,096 | |
eBay, Inc. | 109,712 | 6,199,825 | |
Etsy, Inc. (a) | 42,900 | 8,540,961 | |
Expedia, Inc. | 113,000 | 14,023,300 | |
Farfetch Ltd. Class A (a) | 135,800 | 8,316,392 | |
Fiverr International Ltd. (a)(e) | 8,200 | 1,693,382 | |
JD Health International, Inc. (f) | 184,300 | 3,627,405 | |
JD.com, Inc.: | |||
Class A | 60,000 | 2,660,751 | |
sponsored ADR (a) | 99,100 | 8,789,179 | |
Jumia Technologies AG ADR (a)(e) | 139,100 | 8,005,205 | |
Kogan.Com Ltd. | 153,071 | 2,104,551 | |
MercadoLibre, Inc. (a) | 7,282 | 12,958,392 | |
Ocado Group PLC (a) | 102,363 | 3,894,816 | |
Ozon Holdings PLC ADR | 23,100 | 1,116,654 | |
Pinduoduo, Inc. ADR (a) | 168,998 | 28,004,659 | |
Poshmark, Inc. (e) | 16,300 | 1,137,414 | |
The Booking Holdings, Inc. (a) | 900 | 1,749,897 | |
The Honest Co., Inc. (a)(b)(d) | 71,609 | 1,858,683 | |
The RealReal, Inc. (a) | 263,131 | 6,230,942 | |
THG PLC | 211,100 | 2,085,411 | |
Wayfair LLC Class A (a) | 167,188 | 45,528,636 | |
Zomato Pvt Ltd. (b)(d)(g) | 88 | 471,040 | |
649,477,151 | |||
Leisure Products - 0.3% | |||
Bafang Electric Suzhou Co. Ltd. (A Shares) | 27,100 | 876,737 | |
Peloton Interactive, Inc. Class A (a) | 116,352 | 17,002,518 | |
Vista Outdoor, Inc. (a) | 82,000 | 2,391,940 | |
20,271,195 | |||
Multiline Retail - 0.6% | |||
Dollar Tree, Inc. (a) | 85,104 | 8,651,673 | |
Nordstrom, Inc. (e) | 326,300 | 11,567,335 | |
Ollie's Bargain Outlet Holdings, Inc. (a) | 68,800 | 6,517,424 | |
Target Corp. | 41,100 | 7,446,087 | |
34,182,519 | |||
Specialty Retail - 4.7% | |||
Academy Sports & Outdoors, Inc. | 24,000 | 516,000 | |
American Eagle Outfitters, Inc. | 885,400 | 20,089,726 | |
Aritzia LP (a) | 229,800 | 4,780,199 | |
Blink Charging Co. (a) | 5,200 | 257,036 | |
Burlington Stores, Inc. (a) | 24,603 | 6,123,687 | |
Carvana Co. Class A (a)(e) | 112,031 | 29,261,377 | |
Cazoo Holdings Ltd. (b)(d) | 45,548 | 663,081 | |
Dick's Sporting Goods, Inc. | 40,200 | 2,693,802 | |
Driven Brands Holdings, Inc. (e) | 43,200 | 1,213,920 | |
Five Below, Inc. (a) | 63,184 | 11,103,324 | |
Floor & Decor Holdings, Inc. Class A (a) | 125,940 | 11,595,296 | |
Gap, Inc. | 53,600 | 1,085,400 | |
L Brands, Inc. | 32,000 | 1,304,320 | |
Lowe's Companies, Inc. | 258,906 | 43,198,466 | |
Petco Health & Wellness Co., Inc. | 53,000 | 1,379,590 | |
RH (a)(e) | 260,004 | 123,595,501 | |
Shift Technologies, Inc. Class A (a) | 179,800 | 1,474,360 | |
The Home Depot, Inc. | 10,603 | 2,871,504 | |
Ulta Beauty, Inc. (a) | 7,000 | 1,958,320 | |
Vroom, Inc. | 93,900 | 3,458,337 | |
268,623,246 | |||
Textiles, Apparel & Luxury Goods - 5.4% | |||
Allbirds, Inc. (a)(b)(d) | 40,405 | 467,082 | |
Burberry Group PLC | 125,700 | 2,959,736 | |
Capri Holdings Ltd. (a) | 488,400 | 20,346,744 | |
Crocs, Inc. (a) | 268,984 | 18,834,260 | |
Deckers Outdoor Corp. (a) | 47,295 | 13,809,194 | |
Dr. Martens Ltd. (a) | 277,800 | 1,712,825 | |
lululemon athletica, Inc. (a) | 570,774 | 187,601,998 | |
LVMH Moet Hennessy Louis Vuitton SE | 9,861 | 5,961,916 | |
Moncler SpA | 101,323 | 5,731,190 | |
NIKE, Inc. Class B | 182,813 | 24,421,989 | |
Puma AG | 35,500 | 3,480,085 | |
PVH Corp. | 154,320 | 13,157,323 | |
Tapestry, Inc. | 117,900 | 3,727,998 | |
Tory Burch LLC (a)(b)(c)(d) | 106,817 | 7,735,687 | |
Under Armour, Inc. Class A (sub. vtg.) (a) | 139,000 | 2,432,500 | |
312,380,527 | |||
TOTAL CONSUMER DISCRETIONARY | 1,881,274,092 | ||
CONSUMER STAPLES - 1.0% | |||
Beverages - 0.5% | |||
Boston Beer Co., Inc. Class A (a) | 11,300 | 10,360,857 | |
Celsius Holdings, Inc. (a)(e) | 42,900 | 2,290,860 | |
Constellation Brands, Inc. Class A (sub. vtg.) | 26,900 | 5,674,017 | |
Monster Beverage Corp. (a) | 112,500 | 9,768,375 | |
Nongfu Spring Co. Ltd. (H Shares) (a)(e)(f) | 284,400 | 2,147,695 | |
30,241,804 | |||
Food & Staples Retailing - 0.1% | |||
Blink Health, Inc. Series A1 (b)(d) | 6,283 | 205,077 | |
Performance Food Group Co. (a) | 80,455 | 3,771,730 | |
Sweetgreen, Inc. warrants 1/21/26 (a)(b)(d) | 41,359 | 163,368 | |
Walgreens Boots Alliance, Inc. | 36,200 | 1,819,050 | |
Zur Rose Group AG (a) | 3,920 | 1,802,122 | |
7,761,347 | |||
Food Products - 0.2% | |||
Bunge Ltd. | 28,700 | 1,878,128 | |
Darling Ingredients, Inc. (a) | 46,400 | 2,877,264 | |
Freshpet, Inc. (a) | 20,700 | 2,883,717 | |
Village Farms International, Inc. (a) | 219,000 | 2,588,580 | |
10,227,689 | |||
Personal Products - 0.1% | |||
Herbalife Nutrition Ltd. (a) | 98,800 | 5,034,848 | |
Yatsen Holding Ltd. ADR | 20,300 | 389,557 | |
5,424,405 | |||
Tobacco - 0.1% | |||
JUUL Labs, Inc. Class B (a)(b)(d) | 2,450 | 161,137 | |
RLX Technology, Inc. ADR | 124,500 | 2,801,250 | |
Swedish Match Co. AB | 45,300 | 3,502,004 | |
6,464,391 | |||
TOTAL CONSUMER STAPLES | 60,119,636 | ||
ENERGY - 1.0% | |||
Energy Equipment & Services - 0.1% | |||
Schlumberger Ltd. | 159,500 | 3,542,495 | |
Oil, Gas & Consumable Fuels - 0.9% | |||
ConocoPhillips Co. | 97,000 | 3,882,910 | |
EOG Resources, Inc. | 72,400 | 3,689,504 | |
Hess Corp. | 29,500 | 1,592,410 | |
HollyFrontier Corp. | 40,100 | 1,141,246 | |
Neste Oyj | 8,800 | 622,386 | |
Occidental Petroleum Corp. | 74,400 | 1,492,464 | |
Pioneer Natural Resources Co. | 28,200 | 3,409,380 | |
Reliance Industries Ltd. | 1,060,921 | 26,820,799 | |
Reliance Industries Ltd. | 70,728 | 939,092 | |
Reliance Industries Ltd. sponsored GDR (f) | 75,300 | 3,817,710 | |
Renewable Energy Group, Inc. (a) | 25,600 | 2,293,760 | |
Suncor Energy, Inc. | 215,300 | 3,601,382 | |
Valero Energy Corp. | 10,000 | 564,300 | |
53,867,343 | |||
TOTAL ENERGY | 57,409,838 | ||
FINANCIALS - 1.3% | |||
Banks - 0.4% | |||
Citigroup, Inc. | 141,200 | 8,188,188 | |
Kotak Mahindra Bank Ltd. (a) | 118,376 | 2,783,038 | |
Wells Fargo & Co. | 363,300 | 10,855,404 | |
21,826,630 | |||
Capital Markets - 0.2% | |||
CarLotz, Inc. (b) | 142,573 | 1,339,616 | |
Goldman Sachs Group, Inc. | 13,400 | 3,633,678 | |
London Stock Exchange Group PLC | 23,921 | 2,839,784 | |
Morgan Stanley | 60,100 | 4,029,705 | |
Open Lending Corp. (a) | 37,600 | 1,364,504 | |
Star Peak Energy Transition Corp. Class A (a) | 18,900 | 512,190 | |
13,719,477 | |||
Consumer Finance - 0.2% | |||
Ally Financial, Inc. | 160,287 | 6,065,260 | |
Capital One Financial Corp. | 48,800 | 5,087,888 | |
11,153,148 | |||
Diversified Financial Services - 0.4% | |||
Ant International Co. Ltd. Class C (a)(b)(d) | 1,065,661 | 9,164,685 | |
ArcLight Clean Transition Corp. Class A (a)(e) | 48,725 | 1,167,938 | |
BTRS Holdings, Inc. (b) | 95,048 | 1,385,800 | |
Experience Investment Corp. Class A (a) | 162,000 | 2,389,500 | |
InterPrivate Acquisition Corp. (a) | 97,800 | 1,443,528 | |
Jaws Acquisition Corp. (a) | 139,600 | 1,816,196 | |
Northern Star Acquisition Corp. unit | 9,428 | 128,975 | |
Novus Capital Corp. (b) | 251,069 | 5,637,754 | |
Patria Investments Ltd. | 35,900 | 640,815 | |
23,775,191 | |||
Insurance - 0.1% | |||
eHealth, Inc. (a) | 10,325 | 494,051 | |
Goosehead Insurance | 14,000 | 1,870,400 | |
2,364,451 | |||
TOTAL FINANCIALS | 72,838,897 | ||
HEALTH CARE - 8.4% | |||
Biotechnology - 3.5% | |||
4D Molecular Therapeutics, Inc. | 33,000 | 1,397,880 | |
ACADIA Pharmaceuticals, Inc. (a) | 67,657 | 3,250,919 | |
Acceleron Pharma, Inc. (a) | 46,920 | 5,420,668 | |
ADC Therapeutics SA (a) | 68,300 | 1,951,331 | |
Agios Pharmaceuticals, Inc. (a) | 76,711 | 3,603,116 | |
Akouos, Inc. (a) | 43,100 | 686,152 | |
Allakos, Inc. (a) | 23,230 | 3,097,256 | |
Alnylam Pharmaceuticals, Inc. (a) | 102,481 | 15,421,341 | |
Annexon, Inc. (a) | 75,200 | 1,654,400 | |
Arcutis Biotherapeutics, Inc. (a) | 73,700 | 2,011,273 | |
Argenx SE ADR (a) | 18,637 | 5,461,014 | |
Ascendis Pharma A/S sponsored ADR (a) | 145,496 | 21,846,224 | |
Avidity Biosciences, Inc. | 36,700 | 839,696 | |
BeiGene Ltd. (a) | 118,700 | 2,910,376 | |
BeiGene Ltd. ADR (a) | 19,906 | 6,369,920 | |
BioAtla, Inc. | 16,100 | 707,917 | |
Biohaven Pharmaceutical Holding Co. Ltd. (a) | 5,700 | 485,754 | |
BioXcel Therapeutics, Inc. (a) | 11,300 | 523,416 | |
BridgeBio Pharma, Inc. (a)(e) | 36,934 | 2,096,374 | |
CareDx, Inc. (a) | 17,000 | 1,299,310 | |
Cibus Corp.: | |||
Series C (a)(b)(c)(d) | 726,554 | 1,211,995 | |
Series D (a)(b)(c)(d) | 398,640 | 498,300 | |
Cullinan Management, Inc. | 10,200 | 387,702 | |
CytomX Therapeutics, Inc. (a)(f) | 137,854 | 952,571 | |
FibroGen, Inc. (a) | 57,186 | 2,755,221 | |
Forma Therapeutics Holdings, Inc. | 41,300 | 1,595,419 | |
Fusion Pharmaceuticals, Inc. (a) | 48,200 | 544,660 | |
Generation Bio Co. | 163,122 | 4,295,002 | |
Gracell Biotechnologies, Inc. ADR | 29,200 | 605,024 | |
Invitae Corp. (a) | 34,500 | 1,708,440 | |
Ionis Pharmaceuticals, Inc. (a) | 72,666 | 4,365,047 | |
Karuna Therapeutics, Inc. (a) | 40,000 | 3,969,200 | |
Kinnate Biopharma, Inc. | 18,400 | 603,520 | |
Kronos Bio, Inc. (e) | 42,400 | 1,165,576 | |
Kura Oncology, Inc. (a) | 29,900 | 895,505 | |
Mirati Therapeutics, Inc. (a) | 11,900 | 2,443,427 | |
Moderna, Inc. (a) | 9,000 | 1,558,440 | |
Natera, Inc. (a) | 11,700 | 1,247,688 | |
Neurocrine Biosciences, Inc. (a) | 47,488 | 5,211,808 | |
Novavax, Inc. (a) | 29,300 | 6,473,542 | |
Passage Bio, Inc. | 31,100 | 580,326 | |
Prelude Therapeutics, Inc. | 33,900 | 2,201,805 | |
Protagonist Therapeutics, Inc. (a) | 63,100 | 1,306,801 | |
Regeneron Pharmaceuticals, Inc. (a) | 46,500 | 23,428,560 | |
Relay Therapeutics, Inc. (a) | 40,500 | 2,007,990 | |
Revolution Medicines, Inc. | 61,300 | 2,583,182 | |
Sage Therapeutics, Inc. (a) | 169,867 | 13,699,774 | |
Scholar Rock Holding Corp. (a) | 12,500 | 745,750 | |
Seagen, Inc. (a) | 12,000 | 1,971,240 | |
Seer, Inc. | 16,000 | 998,400 | |
Shattuck Labs, Inc. | 24,800 | 1,230,328 | |
Silverback Therapeutics, Inc. | 34,100 | 1,497,672 | |
Taysha Gene Therapies, Inc. | 31,500 | 819,000 | |
TG Therapeutics, Inc. (a) | 25,800 | 1,245,366 | |
Turning Point Therapeutics, Inc. (a) | 58,349 | 7,322,216 | |
Twist Bioscience Corp. (a) | 4,900 | 806,246 | |
Vaxcyte, Inc. | 45,500 | 1,116,115 | |
Xencor, Inc. (a) | 114,918 | 5,257,499 | |
Zai Lab Ltd. ADR (a) | 64,764 | 10,366,773 | |
202,707,467 | |||
Health Care Equipment & Supplies - 2.2% | |||
Align Technology, Inc. (a) | 3,200 | 1,681,216 | |
Atricure, Inc. (a) | 11,700 | 681,291 | |
Axonics Modulation Technologies, Inc. (a) | 94,620 | 4,891,854 | |
CryoPort, Inc. (a) | 16,700 | 1,138,940 | |
Danaher Corp. | 47,700 | 11,344,968 | |
DexCom, Inc. (a) | 38,915 | 14,587,288 | |
Hologic, Inc. (a) | 65,900 | 5,254,207 | |
InMode Ltd. (a) | 70,700 | 4,161,402 | |
Insulet Corp. (a) | 94,198 | 25,167,822 | |
Intuitive Surgical, Inc. (a) | 26,946 | 20,145,907 | |
Novocure Ltd. (a) | 28,307 | 4,556,295 | |
Outset Medical, Inc. | 20,300 | 1,052,149 | |
Pulmonx Corp. | 6,300 | 357,336 | |
Shockwave Medical, Inc. (a) | 186,733 | 21,668,497 | |
Tandem Diabetes Care, Inc. (a) | 68,017 | 6,301,775 | |
122,990,947 | |||
Health Care Providers & Services - 0.5% | |||
1Life Healthcare, Inc. (a) | 111,959 | 5,665,125 | |
Alignment Healthcare Partners unit (b)(d) | 54,574 | 1,077,837 | |
Castle Biosciences, Inc. (a) | 9,500 | 634,885 | |
Cigna Corp. | 17,600 | 3,820,080 | |
Guardant Health, Inc. (a) | 45,480 | 7,072,140 | |
Humana, Inc. | 21,909 | 8,393,557 | |
Oak Street Health, Inc. (a) | 9,200 | 477,204 | |
Owens & Minor, Inc. | 50,800 | 1,477,264 | |
Surgery Partners, Inc. (a) | 41,100 | 1,532,208 | |
30,150,300 | |||
Health Care Technology - 0.2% | |||
American Well Corp. (e) | 58,800 | 2,082,108 | |
Certara, Inc. | 50,700 | 1,745,094 | |
GoodRx Holdings, Inc. (e) | 104,000 | 4,848,480 | |
MultiPlan Corp. (b) | 466,362 | 3,721,569 | |
MultiPlan Corp. warrants (a)(b) | 24,206 | 56,239 | |
12,453,490 | |||
Life Sciences Tools & Services - 0.9% | |||
10X Genomics, Inc. (a) | 65,733 | 11,250,203 | |
Avantor, Inc. (a) | 110,500 | 3,258,645 | |
Berkeley Lights, Inc. (a) | 21,000 | 1,512,000 | |
Bio-Rad Laboratories, Inc. Class A (a) | 4,400 | 2,524,588 | |
Eurofins Scientific SA (a) | 17,000 | 1,633,511 | |
Maravai LifeSciences Holdings, Inc. | 18,100 | 630,604 | |
Nanostring Technologies, Inc. (a) | 56,100 | 3,928,683 | |
Sotera Health Co. | 48,100 | 1,254,929 | |
Thermo Fisher Scientific, Inc. | 49,538 | 25,249,519 | |
51,242,682 | |||
Pharmaceuticals - 1.1% | |||
Antengene Corp. | 809,300 | 1,796,206 | |
Aphria, Inc. (a)(e) | 293,000 | 3,568,740 | |
Arvinas Holding Co. LLC (a) | 7,700 | 580,888 | |
Atea Pharmaceuticals, Inc. | 23,600 | 1,722,800 | |
Chiasma, Inc. warrants 12/16/24 (a) | 23,784 | 8,318 | |
Eli Lilly & Co. | 3,200 | 665,504 | |
Graybug Vision, Inc. | 63,700 | 1,952,405 | |
Hansoh Pharmaceutical Group Co. Ltd. (a)(f) | 492,000 | 2,690,588 | |
Harmony Biosciences Holdings, Inc. (a) | 24,800 | 889,328 | |
Horizon Therapeutics PLC (a) | 148,099 | 10,734,216 | |
Intra-Cellular Therapies, Inc. (a) | 117,100 | 3,764,765 | |
Nektar Therapeutics (a) | 106,351 | 2,095,115 | |
OptiNose, Inc. (a)(e) | 275,279 | 1,095,610 | |
Roche Holding AG (participation certificate) | 10,261 | 3,541,195 | |
Zoetis, Inc. Class A | 167,479 | 25,833,636 | |
60,939,314 | |||
TOTAL HEALTH CARE | 480,484,200 | ||
INDUSTRIALS - 5.9% | |||
Aerospace & Defense - 0.3% | |||
Axon Enterprise, Inc. (a) | 36,800 | 6,041,088 | |
Space Exploration Technologies Corp.: | |||
Class A (a)(b)(d) | 22,703 | 6,129,810 | |
Class C (a)(b)(d) | 686 | 185,220 | |
The Boeing Co. | 17,900 | 3,476,001 | |
15,832,119 | |||
Air Freight & Logistics - 0.2% | |||
FedEx Corp. | 52,900 | 12,449,486 | |
Airlines - 0.4% | |||
American Airlines Group, Inc. | 148,600 | 2,551,462 | |
Delta Air Lines, Inc. | 163,700 | 6,214,052 | |
JetBlue Airways Corp. (a) | 432,100 | 6,196,314 | |
Spirit Airlines, Inc. (a) | 118,600 | 3,076,484 | |
United Airlines Holdings, Inc. (a) | 69,000 | 2,759,310 | |
20,797,622 | |||
Building Products - 0.3% | |||
Builders FirstSource, Inc. (a) | 142,500 | 5,450,625 | |
Carrier Global Corp. | 150,000 | 5,775,000 | |
The AZEK Co., Inc. | 153,500 | 6,123,115 | |
Trane Technologies PLC | 7,400 | 1,060,790 | |
18,409,530 | |||
Commercial Services & Supplies - 0.1% | |||
Aker Carbon Capture A/S (a) | 5,100 | 10,598 | |
MYT Netherlands Parent BV ADR | 64,500 | 2,123,340 | |
2,133,938 | |||
Construction & Engineering - 0.1% | |||
Dycom Industries, Inc. (a) | 75,907 | 6,159,094 | |
Quanta Services, Inc. | 24,000 | 1,691,280 | |
7,850,374 | |||
Electrical Equipment - 0.3% | |||
Ballard Power Systems, Inc. (a) | 16,900 | 577,473 | |
Bloom Energy Corp. Class A (a)(e) | 85,000 | 2,967,350 | |
Plug Power, Inc. (a) | 50,900 | 3,215,353 | |
Sunrun, Inc. (a) | 141,695 | 9,815,213 | |
16,575,389 | |||
Industrial Conglomerates - 0.1% | |||
General Electric Co. | 687,200 | 7,339,296 | |
Machinery - 0.1% | |||
Caterpillar, Inc. | 8,900 | 1,627,276 | |
Deere & Co. | 12,700 | 3,667,760 | |
Desktop Metal, Inc. (a)(e) | 57,200 | 1,313,884 | |
6,608,920 | |||
Professional Services - 0.1% | |||
Boa Vista Servicos SA | 548,000 | 952,495 | |
Upwork, Inc. (a) | 157,000 | 6,507,650 | |
7,460,145 | |||
Road & Rail - 3.9% | |||
Lyft, Inc. (a) | 2,802,707 | 124,608,353 | |
Uber Technologies, Inc. (a) | 1,967,075 | 100,183,130 | |
224,791,483 | |||
TOTAL INDUSTRIALS | 340,248,302 | ||
INFORMATION TECHNOLOGY - 32.1% | |||
Communications Equipment - 0.0% | |||
F5 Networks, Inc. (a) | 3,300 | 646,635 | |
Electronic Equipment & Components - 0.3% | |||
908 Devices, Inc. | 3,500 | 192,885 | |
II-VI, Inc. (a) | 212,000 | 17,822,840 | |
18,015,725 | |||
IT Services - 2.6% | |||
Affirm Holdings, Inc. | 14,600 | 1,454,014 | |
Afterpay Ltd. (a) | 50,665 | 5,231,170 | |
Endava PLC ADR (a) | 57,924 | 4,579,471 | |
Liveramp Holdings, Inc. (a) | 7,500 | 567,825 | |
MongoDB, Inc. Class A (a) | 18,080 | 6,682,549 | |
PayPal Holdings, Inc. (a) | 201,162 | 47,134,268 | |
Repay Holdings Corp. (a) | 91,400 | 2,024,510 | |
Riskified Ltd. (a)(b)(d) | 80,450 | 925,175 | |
Riskified Ltd. warrants (a)(b)(d) | 692 | 1 | |
Shopify, Inc. Class A (a) | 25,114 | 27,383,147 | |
Snowflake Computing, Inc. | 13,100 | 3,569,095 | |
Snowflake Computing, Inc.: | |||
Class B | 3,168 | 819,966 | |
Class B (f) | 1,056 | 287,707 | |
Square, Inc. (a) | 128,300 | 27,707,668 | |
Twilio, Inc. Class A (a) | 61,970 | 22,273,877 | |
150,640,443 | |||
Semiconductors & Semiconductor Equipment - 8.7% | |||
Advanced Micro Devices, Inc. (a) | 285,452 | 24,446,109 | |
Allegro MicroSystems LLC (a)(e) | 33,700 | 940,904 | |
Ambarella, Inc. (a) | 17,400 | 1,641,864 | |
Array Technologies, Inc. | 259,200 | 10,564,992 | |
Cirrus Logic, Inc. (a) | 56,300 | 5,274,747 | |
Enphase Energy, Inc. (a) | 63,200 | 11,524,520 | |
First Solar, Inc. (a) | 38,000 | 3,767,700 | |
Lam Research Corp. | 8,300 | 4,016,785 | |
Lattice Semiconductor Corp. (a) | 75,000 | 3,008,250 | |
Marvell Technology Group Ltd. | 3,111,079 | 160,096,125 | |
MediaTek, Inc. | 98,000 | 3,061,297 | |
Microchip Technology, Inc. | 6,200 | 843,882 | |
Micron Technology, Inc. (a) | 296,406 | 23,199,698 | |
NVIDIA Corp. | 255,199 | 132,598,848 | |
NXP Semiconductors NV | 558,835 | 89,676,252 | |
ON Semiconductor Corp. (a) | 168,200 | 5,801,218 | |
SolarEdge Technologies, Inc. (a) | 21,700 | 6,256,761 | |
Synaptics, Inc. (a) | 33,400 | 3,313,948 | |
Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR | 40,000 | 4,860,800 | |
Universal Display Corp. | 23,973 | 5,533,448 | |
500,428,148 | |||
Software - 11.1% | |||
Adobe, Inc. (a) | 86,371 | 39,624,424 | |
Anaplan, Inc. (a) | 33,300 | 2,221,110 | |
Atlassian Corp. PLC (a) | 8,000 | 1,849,040 | |
Atom Tickets LLC (a)(b)(c)(d) | 344,068 | 213,322 | |
Autodesk, Inc. (a) | 17,800 | 4,938,254 | |
Avalara, Inc. (a) | 21,900 | 3,285,000 | |
Bill.Com Holdings, Inc. (a) | 24,100 | 2,937,308 | |
Cerence, Inc. (a)(e) | 19,600 | 2,193,436 | |
Cloudflare, Inc. (a) | 254,180 | 19,485,439 | |
Coupa Software, Inc. (a) | 16,214 | 5,024,232 | |
Crowdstrike Holdings, Inc. (a) | 45,000 | 9,711,000 | |
Digital Turbine, Inc. (a) | 57,500 | 3,289,575 | |
Docebo, Inc. (e) | 33,200 | 1,638,752 | |
DocuSign, Inc. (a) | 44,500 | 10,363,605 | |
Duck Creek Technologies, Inc. (a) | 24,700 | 1,193,998 | |
Elastic NV (a) | 84,150 | 12,787,434 | |
Epic Games, Inc. (b)(d) | 1,076 | 618,700 | |
FireEye, Inc. (a) | 52,900 | 1,110,900 | |
Five9, Inc. (a) | 19,500 | 3,241,875 | |
Freee KK (a) | 6,300 | 535,300 | |
HubSpot, Inc. (a) | 28,492 | 10,604,722 | |
Intuit, Inc. | 4,700 | 1,697,781 | |
Kuaishou Technology (a) | 55,500 | 823,203 | |
Lightspeed POS, Inc. (Canada) (a) | 212,883 | 13,839,268 | |
Microsoft Corp. | 1,463,400 | 339,450,264 | |
Nuance Communications, Inc. (a) | 149,900 | 6,826,446 | |
Palo Alto Networks, Inc. (a) | 3,200 | 1,122,400 | |
Paycom Software, Inc. (a) | 4,400 | 1,670,856 | |
Qualtrics International, Inc. | 28,100 | 1,236,400 | |
RingCentral, Inc. (a) | 14,839 | 5,533,760 | |
Salesforce.com, Inc. (a) | 297,970 | 67,210,113 | |
ServiceNow, Inc. (a) | 26,423 | 14,351,917 | |
Tanium, Inc. Class B (a)(b)(d) | 151,000 | 1,720,675 | |
Telos Corp. | 27,000 | 953,100 | |
The Trade Desk, Inc. (a) | 11,905 | 9,119,111 | |
Volue A/S | 143,300 | 803,031 | |
Workday, Inc. Class A (a) | 51,900 | 11,808,807 | |
Zoom Video Communications, Inc. Class A (a) | 63,600 | 23,663,652 | |
638,698,210 | |||
Technology Hardware, Storage & Peripherals - 9.4% | |||
Apple, Inc. | 4,093,436 | 540,169,816 | |
TOTAL INFORMATION TECHNOLOGY | 1,848,598,977 | ||
MATERIALS - 0.9% | |||
Chemicals - 0.7% | |||
Corteva, Inc. | 102,200 | 4,073,692 | |
LG Chemical Ltd. | 1,770 | 1,451,274 | |
Linde PLC | 9,600 | 2,355,840 | |
Nutrien Ltd. | 188,000 | 9,259,230 | |
Olin Corp. | 154,400 | 3,691,704 | |
PPG Industries, Inc. | 27,000 | 3,637,170 | |
The Chemours Co. LLC | 417,807 | 11,005,036 | |
The Mosaic Co. | 140,800 | 3,655,168 | |
39,129,114 | |||
Metals & Mining - 0.2% | |||
Anglo American PLC (United Kingdom) | 50,700 | 1,676,924 | |
ArcelorMittal SA Class A unit (a)(e) | 267,000 | 5,764,530 | |
Freeport-McMoRan, Inc. | 148,700 | 4,001,517 | |
Gatos Silver, Inc. | 120,200 | 1,587,842 | |
13,030,813 | |||
TOTAL MATERIALS | 52,159,927 | ||
REAL ESTATE - 0.5% | |||
Equity Real Estate Investment Trusts (REITs) - 0.1% | |||
Park Hotels & Resorts, Inc. | 15,200 | 253,536 | |
Simon Property Group, Inc. | 69,800 | 6,486,514 | |
6,740,050 | |||
Real Estate Management & Development - 0.4% | |||
KE Holdings, Inc. ADR (a) | 106,500 | 6,294,150 | |
Opendoor Technologies, Inc. (a)(e) | 74,400 | 1,943,328 | |
Realogy Holdings Corp. (a) | 123,000 | 1,746,600 | |
Redfin Corp. (a) | 189,281 | 13,478,700 | |
23,462,778 | |||
TOTAL REAL ESTATE | 30,202,828 | ||
UTILITIES - 0.2% | |||
Electric Utilities - 0.0% | |||
PG&E Corp. (a) | 87,200 | 996,696 | |
Independent Power and Renewable Electricity Producers - 0.2% | |||
Brookfield Renewable Corp. | 36,600 | 2,051,890 | |
Shoals Technologies Group, Inc. | 87,900 | 2,982,447 | |
The AES Corp. | 124,300 | 3,031,677 | |
8,066,014 | |||
TOTAL UTILITIES | 9,062,710 | ||
TOTAL COMMON STOCKS | |||
(Cost $2,050,507,283) | 5,551,461,298 | ||
Preferred Stocks - 3.4% | |||
Convertible Preferred Stocks - 3.1% | |||
COMMUNICATION SERVICES - 0.1% | |||
Diversified Telecommunication Services - 0.1% | |||
Starry, Inc.: | |||
Series C (a)(b)(d) | 1,477,502 | 2,112,828 | |
Series D (a)(b)(d) | 402,931 | 576,191 | |
2,689,019 | |||
CONSUMER DISCRETIONARY - 0.9% | |||
Automobiles - 0.3% | |||
Rad Power Bikes, Inc.: | |||
Series A (b)(d) | 14,368 | 69,309 | |
Series C (b)(d) | 56,537 | 272,725 | |
Rivian Automotive, Inc.: | |||
Series E (b)(d) | 399,926 | 14,737,273 | |
Series F (b)(d) | 119,569 | 4,406,118 | |
19,485,425 | |||
Hotels, Restaurants & Leisure - 0.2% | |||
MOD Super Fast Pizza Holdings LLC: | |||
Series 3 (a)(b)(c)(d) | 22,518 | 4,678,791 | |
Series 4 (a)(b)(c)(d) | 2,055 | 402,143 | |
Series 5 (a)(b)(c)(d) | 8,253 | 1,518,635 | |
Topgolf International, Inc. Series F (a)(b) | 106,191 | 2,482,746 | |
9,082,315 | |||
Internet & Direct Marketing Retail - 0.3% | |||
Instacart, Inc. Series H (b)(d) | 31,105 | 1,866,300 | |
Reddit, Inc. Series B (a)(b)(d) | 129,280 | 7,326,298 | |
The Honest Co., Inc.: | |||
Series C (a)(b)(d) | 167,087 | 5,086,028 | |
Series D (a)(b)(d) | 27,712 | 843,537 | |
Series E (a)(b)(d) | 143,059 | 3,713,239 | |
Zomato Pvt Ltd.: | |||
Series B (b)(d)(g) | 4 | 21,411 | |
Series E (b)(d)(g) | 26,796 | 14 | |
Series G (b)(d)(g) | 2 | 10,705 | |
Series J7 (b)(d) | 136 | 727,971 | |
19,595,503 | |||
Specialty Retail - 0.1% | |||
Fanatics, Inc. Series E (b)(d) | 159,285 | 2,754,038 | |
Textiles, Apparel & Luxury Goods - 0.0% | |||
Allbirds, Inc.: | |||
Series A (a)(b)(d) | 15,945 | 184,324 | |
Series B (a)(b)(d) | 2,800 | 32,368 | |
Series C (a)(b)(d) | 26,775 | 309,519 | |
Series Seed (a)(b)(d) | 8,575 | 99,127 | |
625,338 | |||
TOTAL CONSUMER DISCRETIONARY | 51,542,619 | ||
CONSUMER STAPLES - 1.0% | |||
Food & Staples Retailing - 0.2% | |||
Blink Health, Inc. Series C (a)(b)(d) | 27,197 | 887,710 | |
Roofoods Ltd. Series H (b)(d) | 1,400 | 1,228,852 | |
Sweetgreen, Inc.: | |||
Series H (a)(b)(d) | 725,140 | 9,535,591 | |
Series J (b)(d) | 41,359 | 543,871 | |
12,196,024 | |||
Food Products - 0.0% | |||
Agbiome LLC Series C (a)(b)(d) | 266,499 | 1,687,925 | |
Tobacco - 0.8% | |||
JUUL Labs, Inc.: | |||
Series C (a)(b)(d) | 660,029 | 43,410,107 | |
Series D (a)(b)(d) | 5,110 | 336,085 | |
43,746,192 | |||
TOTAL CONSUMER STAPLES | 57,630,141 | ||
HEALTH CARE - 0.2% | |||
Biotechnology - 0.1% | |||
23andMe, Inc. Series F (a)(b)(d) | 195,114 | 3,385,228 | |
Immunocore Ltd. Series A (a)(b) | 4,200 | 516,019 | |
3,901,247 | |||
Health Care Providers & Services - 0.1% | |||
Mulberry Health, Inc. Series A-8 (a)(b)(d) | 813,618 | 7,937,214 | |
Pharmaceuticals - 0.0% | |||
Castle Creek Pharmaceutical Holdings, Inc. Series B (a)(b)(d) | 1,069 | 700,398 | |
TOTAL HEALTH CARE | 12,538,859 | ||
INDUSTRIALS - 0.3% | |||
Aerospace & Defense - 0.3% | |||
Space Exploration Technologies Corp.: | |||
Series G (a)(b)(d) | 42,650 | 11,515,500 | |
Series H (a)(b)(d) | 6,348 | 1,713,960 | |
Series N (b)(d) | 12,799 | 3,455,730 | |
16,685,190 | |||
Professional Services - 0.0% | |||
YourPeople, Inc. Series C (a)(b)(d) | 253,888 | 48,239 | |
TOTAL INDUSTRIALS | 16,733,429 | ||
INFORMATION TECHNOLOGY - 0.6% | |||
Electronic Equipment & Components - 0.0% | |||
Enevate Corp. Series E (b)(d) | 1,441,706 | 1,598,396 | |
IT Services - 0.1% | |||
AppNexus, Inc. Series E (Escrow) (a)(b)(d) | 307,049 | 9,617 | |
ByteDance Ltd. Series E1 (b)(d) | 37,119 | 4,067,284 | |
Riskified Ltd.: | |||
Series D (b)(d) | 12,300 | 141,450 | |
Series E (a)(b)(d) | 82,500 | 948,750 | |
5,167,101 | |||
Software - 0.5% | |||
ACV Auctions, Inc.: | |||
Series E (a)(b)(d) | 191,408 | 1,133,920 | |
Series E1 (b)(d) | 184,460 | 1,092,759 | |
Compass, Inc. Series E (a)(b)(d) | 13,605 | 2,488,355 | |
Dataminr, Inc. Series D (a)(b)(d) | 115,901 | 1,274,911 | |
Delphix Corp. Series D (a)(b)(d) | 242,876 | 2,028,015 | |
DoubleVerify, Inc. Series A (b)(d) | 662,794 | 3,802,515 | |
Jet.Com, Inc. Series B1 (Escrow) (a)(b)(d) | 922,232 | 9 | |
Malwarebytes Corp. Series B (a)(b)(d) | 329,349 | 7,802,278 | |
Nuvia, Inc. Series B (b)(d) | 181,697 | 1,335,473 | |
Taboola.Com Ltd. Series E (a)(b) | 289,958 | 8,672,644 | |
29,630,879 | |||
TOTAL INFORMATION TECHNOLOGY | 36,396,376 | ||
TOTAL CONVERTIBLE PREFERRED STOCKS | 177,530,443 | ||
Nonconvertible Preferred Stocks - 0.3% | |||
CONSUMER DISCRETIONARY - 0.2% | |||
Automobiles - 0.2% | |||
Neutron Holdings, Inc. Series 1C (b)(d) | 12,405,800 | 248,116 | |
Volkswagen AG | 33,000 | 6,264,976 | |
Waymo LLC Series A2 (b)(d) | 15,200 | 1,305,181 | |
7,818,273 | |||
Specialty Retail - 0.0% | |||
Cazoo Holdings Ltd.: | |||
Series A (b)(d) | 1,487 | 21,648 | |
Series B (b)(d) | 26,034 | 378,999 | |
Series C (b)(d) | 528 | 7,687 | |
Series D (b)(d) | 93,003 | 1,353,923 | |
1,762,257 | |||
TOTAL CONSUMER DISCRETIONARY | 9,580,530 | ||
HEALTH CARE - 0.1% | |||
Pharmaceuticals - 0.1% | |||
Castle Creek Pharmaceutical Holdings, Inc. Series A4 (a)(b)(d) | 9,636 | 6,313,411 | |
TOTAL NONCONVERTIBLE PREFERRED STOCKS | 15,893,941 | ||
TOTAL PREFERRED STOCKS | |||
(Cost $108,114,332) | 193,424,384 | ||
Principal Amount | Value | ||
Convertible Bonds - 0.0% | |||
CONSUMER DISCRETIONARY - 0.0% | |||
Automobiles - 0.0% | |||
Neutron Holdings, Inc.: | |||
4% 5/22/27 (b)(d) | 433,800 | 433,800 | |
4% 6/12/27 (b)(d) | 115,200 | 115,200 | |
TOTAL CONVERTIBLE BONDS | |||
(Cost $549,000) | 549,000 | ||
Preferred Securities - 0.0% | |||
INFORMATION TECHNOLOGY - 0.0% | |||
Electronic Equipment & Components - 0.0% | |||
Enevate Corp. 0% 1/29/23 (Cost $613,815)(b)(d) | 613,815 | 613,815 | |
Shares | Value | ||
Money Market Funds - 1.6% | |||
Fidelity Securities Lending Cash Central Fund 0.09% (h)(i) | |||
(Cost $95,453,464) | 95,443,920 | 95,453,464 | |
TOTAL INVESTMENT IN SECURITIES - 101.5% | |||
(Cost $2,255,237,894) | 5,841,501,961 | ||
NET OTHER ASSETS (LIABILITIES) - (1.5)% | (87,728,801) | ||
NET ASSETS - 100% | $5,753,773,160 |
Legend
(a) Non-income producing
(b) Restricted securities (including private placements) - 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 $265,524,726 or 4.6% of net assets.
(c) Investment is owned by a wholly-owned subsidiary (Subsidiary) that is treated as a corporation for U.S. tax purposes.
(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 $21,042,788 or 0.4% 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 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 | $2,709,002 |
ACV Auctions, Inc. Series E | 11/6/19 | $1,058,525 |
ACV Auctions, Inc. Series E1 | 9/4/20 | $1,092,759 |
Agbiome LLC Series C | 6/29/18 | $1,687,925 |
Alignment Healthcare Partners unit | 2/28/20 | $661,361 |
Allbirds, Inc. | 10/9/18 | $443,128 |
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 |
Allbirds, Inc. Series Seed | 10/9/18 | $94,043 |
Ant International Co. Ltd. Class C | 5/16/18 | $5,978,358 |
AppNexus, Inc. Series E (Escrow) | 8/1/14 | $0 |
Atom Tickets LLC | 8/15/17 | $1,999,998 |
Blink Health, Inc. Series A1 | 12/30/20 | $170,206 |
Blink Health, Inc. Series C | 11/7/19 - 1/21/21 | $1,038,273 |
BTRS Holdings, Inc. | 1/12/21 | $950,480 |
ByteDance Ltd. Series E1 | 11/18/20 | $4,067,284 |
CarLotz, Inc. | 1/21/21 | $1,425,730 |
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 |
Cazoo Holdings Ltd. | 9/30/20 | $624,462 |
Cazoo Holdings Ltd. Series A | 9/30/20 | $20,387 |
Cazoo Holdings Ltd. Series B | 9/30/20 | $356,925 |
Cazoo Holdings Ltd. Series C | 9/30/20 | $7,239 |
Cazoo Holdings Ltd. Series D | 9/30/20 | $1,275,068 |
Cibus Corp. Series C | 2/16/18 | $1,525,763 |
Cibus Corp. Series D | 5/10/19 | $498,300 |
Compass, Inc. Series E | 11/3/17 | $918,041 |
Dataminr, Inc. Series D | 3/6/15 | $1,477,738 |
Delphix Corp. Series D | 7/10/15 | $2,185,884 |
DoubleVerify, Inc. Series A | 11/18/20 | $3,802,515 |
Enevate Corp. Series E | 1/29/21 | $1,598,398 |
Enevate Corp. 0% 1/29/23 | 1/29/21 | $613,815 |
Epic Games, Inc. | 7/30/20 | $618,700 |
Fanatics, Inc. Series E | 8/13/20 | $2,754,038 |
FSN E-Commerce Ventures Pvt Ltd. | 10/7/20 - 10/26/20 | $2,246,418 |
Immunocore Ltd. Series A | 7/27/15 | $759,303 |
Instacart, Inc. Series H | 11/13/20 | $1,866,300 |
Jet.Com, Inc. Series B1 (Escrow) | 3/19/18 | $0 |
JUUL Labs, Inc. Class B | 11/21/17 | $0 |
JUUL Labs, Inc. Series C | 5/22/15 - 7/6/18 | $0 |
JUUL Labs, Inc. Series D | 6/25/18 - 7/6/18 | $0 |
Lordstown Motors Corp. | 10/23/20 | $5,323,910 |
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 A-8 | 1/20/16 | $5,495,786 |
MultiPlan Corp. | 10/8/20 | $4,617,446 |
MultiPlan Corp. warrants | 10/8/20 | $0 |
Neutron Holdings, Inc. Series 1C | 7/3/18 | $2,268,276 |
Neutron Holdings, Inc. warrants | 6/4/20 | $1 |
Neutron Holdings, Inc. 4% 5/22/27 | 6/4/20 | $433,800 |
Neutron Holdings, Inc. 4% 6/12/27 | 6/12/20 | $115,200 |
Novus Capital Corp. | 1/29/21 | $2,510,690 |
Nuvia, Inc. Series B | 9/18/20 | $582,765 |
Rad Power Bikes, Inc. | 1/21/21 | $531,635 |
Rad Power Bikes, Inc. Series A | 1/21/21 | $69,309 |
Rad Power Bikes, Inc. Series C | 1/21/21 | $272,725 |
Reddit, Inc. Series B | 7/26/17 | $1,835,324 |
Riskified Ltd. | 12/20/19 - 4/15/20 | $727,408 |
Riskified Ltd. Series D | 11/18/20 | $141,450 |
Riskified Ltd. Series E | 10/28/19 | $784,938 |
Riskified Ltd. warrants | 10/28/19 | $1 |
Rivian Automotive, Inc. Series E | 7/10/20 | $6,194,854 |
Rivian Automotive, Inc. Series F | 1/19/21 | $4,406,118 |
Roofoods Ltd. Series H | 1/15/21 | $1,228,852 |
Rush Street Interactive, Inc. | 12/29/20 | $1,706,000 |
Skillz, Inc. | 12/16/20 | $2,724,350 |
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 |
Space Exploration Technologies Corp. Series N | 8/4/20 | $3,455,730 |
Starry, Inc. Series C | 12/8/17 | $1,362,257 |
Starry, Inc. Series D | 7/30/20 | $576,191 |
Sweetgreen, Inc. warrants 1/21/26 | 1/21/21 | $0 |
Sweetgreen, Inc. Series H | 11/9/18 | $9,455,826 |
Sweetgreen, Inc. Series J | 1/21/21 | $707,239 |
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 |
Waymo LLC Series A2 | 5/8/20 | $1,305,181 |
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 |
Zomato Pvt Ltd. | 1/22/21 - 1/29/21 | $362,312 |
Zomato Pvt Ltd. Series B | 1/22/21 | $16,455 |
Zomato Pvt Ltd. Series E | 1/22/21 | $11 |
Zomato Pvt Ltd. Series G | 1/22/21 | $8,227 |
Zomato Pvt Ltd. Series J7 | 12/9/20 | $553,924 |
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 | $11,719 |
Fidelity Securities Lending Cash Central Fund | 266,700 |
Total | $278,419 |
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 January 31, 2021, 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 | $721,750,910 | $695,722,034 | $18,579,878 | $7,448,998 |
Consumer Discretionary | 1,942,397,241 | 1,855,515,826 | 20,509,806 | 66,371,609 |
Consumer Staples | 117,749,777 | 59,590,054 | -- | 58,159,723 |
Energy | 57,409,838 | 57,409,838 | -- | -- |
Financials | 72,838,897 | 52,471,258 | 11,202,954 | 9,164,685 |
Health Care | 499,336,470 | 472,294,110 | 5,917,977 | 21,124,383 |
Industrials | 356,981,731 | 333,933,272 | -- | 23,048,459 |
Information Technology | 1,884,995,353 | 1,843,477,935 | 10,315,813 | 31,201,605 |
Materials | 52,159,927 | 52,159,927 | -- | -- |
Real Estate | 30,202,828 | 30,202,828 | -- | -- |
Utilities | 9,062,710 | 9,062,710 | -- | -- |
Corporate Bonds | 549,000 | -- | -- | 549,000 |
Preferred Securities | 613,815 | -- | -- | 613,815 |
Money Market Funds | 95,453,464 | 95,453,464 | -- | -- |
Total Investments in Securities: | $5,841,501,961 | $5,557,293,256 | $66,526,428 | $217,682,277 |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value:
Investments in Securities: | |
Equities - Consumer Discretionary | |
Beginning Balance | $38,758,672 |
Net Realized Gain (Loss) on Investment Securities | (543) |
Net Unrealized Gain (Loss) on Investment Securities | 13,704,525 |
Cost of Purchases | 15,387,095 |
Proceeds of Sales | (131,638) |
Amortization/Accretion | -- |
Transfers into Level 3 | -- |
Transfers out of Level 3 | (1,346,502) |
Ending Balance | $66,371,609 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2021 | $13,704,525 |
Equities - Consumer Staples | |
Beginning Balance | $80,372,063 |
Net Realized Gain (Loss) on Investment Securities | -- |
Net Unrealized Gain (Loss) on Investment Securities | (24,602,361) |
Cost of Purchases | 2,390,021 |
Proceeds of Sales | -- |
Amortization/Accretion | -- |
Transfers into Level 3 | -- |
Transfers out of Level 3 | -- |
Ending Balance | $58,159,723 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2021 | $(24,602,361) |
Equities - Other Investments in Securities | |
Beginning Balance | $85,824,635 |
Net Realized Gain (Loss) on Investment Securities | -- |
Net Unrealized Gain (Loss) on Investment Securities | 8,618,016 |
Cost of Purchases | 15,444,537 |
Proceeds of Sales | -- |
Amortization/Accretion | -- |
Transfers into Level 3 | -- |
Transfers out of Level 3 | (16,736,243) |
Ending Balance | $93,150,945 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2021 | $8,618,016 |
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. Cost of purchases and proceeds of sales may include securities received and/or delivered through 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 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 | 86.3% |
Cayman Islands | 3.7% |
Bermuda | 2.9% |
Netherlands | 2.0% |
Canada | 1.1% |
Others (Individually Less Than 1%) | 4.0% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
January 31, 2021 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $92,341,838) — See accompanying schedule: Unaffiliated issuers (cost $2,159,784,430) | $5,746,048,497 | |
Fidelity Central Funds (cost $95,453,464) | 95,453,464 | |
Total Investment in Securities (cost $2,255,237,894) | $5,841,501,961 | |
Restricted cash | 106,239 | |
Foreign currency held at value (cost $1,905) | 1,906 | |
Receivable for investments sold | 100,654,164 | |
Receivable for fund shares sold | 57,437 | |
Dividends receivable | 663,122 | |
Interest receivable | 14,486 | |
Distributions receivable from Fidelity Central Funds | 70,653 | |
Other receivables | 4,117 | |
Total assets | 5,943,074,085 | |
Liabilities | ||
Payable to custodian bank | $2,288,221 | |
Payable for investments purchased | ||
Regular delivery | 31,349,300 | |
Delayed delivery | 325,751 | |
Payable for fund shares redeemed | 58,650,343 | |
Other payables and accrued expenses | 1,245,285 | |
Collateral on securities loaned | 95,442,025 | |
Total liabilities | 189,300,925 | |
Net Assets | $5,753,773,160 | |
Net Assets consist of: | ||
Paid in capital | $1,684,830,675 | |
Total accumulated earnings (loss) | 4,068,942,485 | |
Net Assets | $5,753,773,160 | |
Net Asset Value, offering price and redemption price per share ($5,753,773,160 ÷ 338,956,905 shares) | $16.97 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended January 31, 2021 (Unaudited) | ||
Investment Income | ||
Dividends | $8,188,176 | |
Interest | 11,106 | |
Income from Fidelity Central Funds (including $266,700 from security lending) | 278,419 | |
Total income | 8,477,701 | |
Expenses | ||
Custodian fees and expenses | $89,194 | |
Independent trustees' fees and expenses | 14,106 | |
Interest | 11,421 | |
Miscellaneous | 5,877 | |
Total expenses before reductions | 120,598 | |
Expense reductions | (5,627) | |
Total expenses after reductions | 114,971 | |
Net investment income (loss) | 8,362,730 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 1,255,007,069 | |
Fidelity Central Funds | 688 | |
Foreign currency transactions | (59,067) | |
Futures contracts | 5,679,667 | |
Written options | 230,740 | |
Total net realized gain (loss) | 1,260,859,097 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers (net of decrease in deferred foreign taxes of $488,633) | 209,884,355 | |
Fidelity Central Funds | (687) | |
Assets and liabilities in foreign currencies | 6,663 | |
Total change in net unrealized appreciation (depreciation) | 209,890,331 | |
Net gain (loss) | 1,470,749,428 | |
Net increase (decrease) in net assets resulting from operations | $1,479,112,158 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended January 31, 2021 (Unaudited) | Year ended July 31, 2020 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $8,362,730 | $33,783,915 |
Net realized gain (loss) | 1,260,859,097 | 1,182,419,189 |
Change in net unrealized appreciation (depreciation) | 209,890,331 | 705,721,116 |
Net increase (decrease) in net assets resulting from operations | 1,479,112,158 | 1,921,924,220 |
Distributions to shareholders | (1,909,413,522) | (641,776,468) |
Share transactions | ||
Proceeds from sales of shares | 144,247,395 | 764,339,309 |
Reinvestment of distributions | 1,909,413,522 | 641,776,468 |
Cost of shares redeemed | (1,659,020,770) | (2,743,794,312) |
Net increase (decrease) in net assets resulting from share transactions | 394,640,147 | (1,337,678,535) |
Total increase (decrease) in net assets | (35,661,217) | (57,530,783) |
Net Assets | ||
Beginning of period | 5,789,434,377 | 5,846,965,160 |
End of period | $5,753,773,160 | $5,789,434,377 |
Other Information | ||
Shares | ||
Sold | 8,268,468 | 52,915,457 |
Issued in reinvestment of distributions | 119,502,616 | 46,186,696 |
Redeemed | (89,608,747) | (173,939,394) |
Net increase (decrease) | 38,162,337 | (74,837,241) |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Series Blue Chip Growth Fund
Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $19.25 | $15.57 | $15.90 | $14.07 | $11.47 | $13.36 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .03 | .09 | .10 | .12B | .03 | .02 |
Net realized and unrealized gain (loss) | 4.42 | 5.30 | 1.58 | 3.28 | 2.74 | (.42) |
Total from investment operations | 4.45 | 5.39 | 1.68 | 3.40 | 2.77 | (.40) |
Distributions from net investment income | (.10) | (.11) | (.12) | (.07) | (.03) | (.02) |
Distributions from net realized gain | (6.63) | (1.60) | (1.89) | (1.50) | (.14) | (1.48) |
Total distributions | (6.73) | (1.71) | (2.01) | (1.57) | (.17) | (1.49)C |
Net asset value, end of period | $16.97 | $19.25 | $15.57 | $15.90 | $14.07 | $11.47 |
Total ReturnD,E | 28.97% | 39.00% | 11.85% | 26.54% | 24.50% | (2.63)% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | - %H,I | - %I | - %I | - %I | .59% | .73% |
Expenses net of fee waivers, if any | - %H,I | - %I | - %I | - %I | .59% | .73% |
Expenses net of all reductions | - %H,I | - %I | - %I | - %I | .59% | .73% |
Net investment income (loss) | .29%H | .59% | .71% | .81%B | .26% | .17% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $5,753,773 | $5,789,434 | $5,846,965 | $6,005,980 | $2,208,451 | $2,417,952 |
Portfolio turnover rateJ | 50%H | 52%K | 53% | 41% | 47% | 55% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.01 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been .71 %.
C Total distributions per share do not sum due to rounding.
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment advisor, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
H Annualized
I Amount represents less than .005%.
J Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
K 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 (Unaudited)
For the period ended January 31, 2021
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 are offered only to certain other Fidelity funds and Fidelity managed 529 plans. 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 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 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 - Investment 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. Securities, including private placements or other restricted securities, for which observable inputs are not available are valued using alternate valuation approaches, including the market approach, the income approach and cost approach, and are categorized as Level 3 in the hierarchy. The market approach considers factors including the price of recent investments in the same or a similar security or financial metrics of comparable securities. The income approach considers factors including expected future cash flows, security specific risks and corresponding discount rates. The cost approach considers factors including the value of the security's underlying assets and liabilities.
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. Corporate bonds and preferred securities are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
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 | $ 216,519,462 | Market comparable | Enterprise value/Sales multiple (EV/S) | 1.6-23.2/8.0% | Increase |
Discount rate | 40.5%- 75.0%/56.8% | Decrease | |||
Premium rate | 1.3%-92.6%/39.8% | Increase | |||
Discount for lack of marketability | 10% | Decrease | |||
Conversion ratio | 1.0 – 1.2 / 1.1 | Increase | |||
Liquidity preference | 184.0%-207.8% / 195.8% | Increase | |||
Recovery value | Recovery value | 0.0% | Increase | ||
Market approach | Transaction price | $0.00-$5,352.73 / $140.03 | Increase | ||
Premium rate | 59.0% | Increase | |||
Corporate Bonds | $ 549,000 | Market approach | Transaction price | $100.00 | Increase |
Preferred Securities | $ 613,815 | Market approach | Transaction price | $100.00 | 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 January 31, 2021, as well as a roll forward of Level 3 investments, is included at the end of the Fund's Schedule of Investments.
Foreign Currency. Certain Funds 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. 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 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, 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 | $3,612,939,883 |
Gross unrealized depreciation | (42,236,292) |
Net unrealized appreciation (depreciation) | $3,570,703,591 |
Tax cost | $2,270,798,370 |
Delayed Delivery Transactions and When-Issued Securities. During the period, certain Funds 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. Securities purchased on a delayed delivery or when-issued basis are identified as such in the Schedule of Investments. Compensation for interest forgone in the purchase of a delayed delivery or when-issued debt security may be received. With respect to purchase commitments, each applicable Fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Payables and receivables associated with the purchases and sales of delayed delivery securities having the same coupon, settlement date and broker are offset. Delayed delivery or when-issued securities that have been purchased from and sold to different brokers are reflected as both payables and receivables in the Statement of Assets and Liabilities under the caption "Delayed delivery", as applicable. 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 (including Private Placements). 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 Funds included in the table below hold certain investments through a wholly-owned subsidiary ("Subsidiary"), which may be subject to federal and state taxes upon disposition.
As of period end, investments in Subsidiaries were as follows:
$ Amount | % of Net Assets | |
Fidelity Series Blue Chip Growth Fund | 21,125,091 | .37 |
The financial statements have been consolidated to include the Subsidiary accounts where applicable. Accordingly, all inter-company transactions and balances have been eliminated.
At period end, any estimated tax liability for these investments is presented as "Deferred taxes" in the Statement of Assets and Liabilities and included in "Change in net unrealized appreciation (depreciation) on investment securities" in the Statement of Operations. The tax liability incurred may differ materially depending on conditions when these investments are disposed. Any cash held by a Subsidiary is restricted as to its use and is presented as "Restricted cash" in the Statement of Assets and Liabilities, if applicable.
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 and 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. Counterparty credit risk related to exchange-traded futures contracts and 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.
Net Realized Gain (Loss) and Change in Net Unrealized Appreciation (Depreciation) on Derivatives. The table below, which reflects the impacts of derivatives on the financial performance of the Fund, summarizes the net realized gain (loss) and change in net unrealized appreciation (depreciation) for derivatives during the period as presented in the Statement of Operations.
Primary Risk Exposure / Derivative Type | Net Realized Gain (Loss) | Change in Net Unrealized Appreciation (Depreciation) |
Equity Risk | ||
Futures | $5,679,667 | – |
Written Options | 230,740 | – |
Total Equity Risk | 5,910,407 | – |
Totals | $5,910,407 | $– |
A summary of the value of derivatives by primary risk exposure as of period end , if any, is included at the end of the Schedule of Investments.
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.
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 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".
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, are noted in the table below.
Purchases ($) | Sales ($) | |
Fidelity Series Blue Chip Growth Fund | 1,388,977,491 | 2,884,869,668 |
6. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company LLC (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. A portion of portfolio transactions were placed 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 as follows:
Amount | |
Fidelity Series Blue Chip Growth Fund | $28,073 |
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 LLC (FMR), or other affiliated entities of FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the Fund to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. 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 | |
Fidelity Series Blue Chip Growth Fund | Borrower | $18,425,672 | .33% | $11,392 |
Interfund Trades. Funds 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, and amounted to $107,863,918 and $143,406,105, respectively.
Prior Fiscal Year Affiliated Exchanges In-Kind. During the prior period, the Fund received investments and cash valued at $256,703,045 in exchange for 19,043,253 shares of the Fund. The amount of in-kind exchanges is included in share transactions in the accompanying Statement of Changes in Net Assets.
7. Committed Line of Credit.
Certain Funds participate 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 participating funds have agreed to pay commitment fees on their pro-rata portion of the line of credit, which are reflected in Miscellaneous expenses on the Statement of Operations, and are listed below. Effective during January 2021, commitment fees are borne by the investment advisor.
Amount | |
Fidelity Series Blue Chip Growth Fund | $5,877 |
During the period, there were no borrowings on this line of credit.
8. Security Lending.
Funds lend portfolio securities from time to time in order to earn additional income. Lending agents are used, including National Financial Services (NFS), an affiliate of the investment adviser. Pursuant to a securities lending agreement, NFS will receive a fee, which is capped at 9.9% of a fund's daily lending revenue, for its services as lending agent. A fund may lend securities to certain qualified borrowers, including NFS. On the settlement date of the loan, a 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 a fund and any additional required collateral is delivered to a fund on the next business day. A 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, a fund may apply collateral received from the borrower against the obligation. A 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. Any loaned securities are identified as such in the Schedule of Investments, and the value of loaned securities and cash collateral at period end, as applicable, are presented in the 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. Affiliated security lending activity, if any, was as follows:
Total Security Lending Income Fees Paid to NFS | Security Lending Income From Securities Loaned to NFS | Value of Securities Loaned to NFS at Period End | |
Fidelity Series Blue Chip Growth Fund | $38,474 | $5,510 | $– |
9. Bank Borrowings.
The Fund is permitted to have bank borrowings for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity requirements. The Fund has established borrowing arrangements with certain banks. The interest rate on the borrowings is the bank's base rate, as revised from time to time. Any open loans, including accrued interest, at period end are presented under the caption "Notes payable" in the Statement of Assets and Liabilities, if applicable. Activity in this program during the period for which loans were outstanding was as follows:
Average Loan Balance | Weighted Average Interest Rate | Interest Expense | |
Fidelity Series Blue Chip Growth Fund | $883,000 | .59% | $29 |
10. Expense Reductions.
The investment adviser contractually agreed to reimburse the Fund to the extent annual operating expenses exceeded .003% of average net assets. This reimbursement will remain in place through November 30, 2023. Some expenses, for example the compensation of the independent Trustees, and certain other expenses such as interest expense, are excluded from this reimbursement. During the period this reimbursement reduced the Fund's expenses by $5,627.
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 and accounts managed by the investment adviser or its affiliates were the owners of record of all of the outstanding shares of the Fund.
12. Coronavirus (COVID-19) Pandemic.
An outbreak of COVID-19 first detected in China during December 2019 has since spread globally and was declared a pandemic by the World Health Organization during March 2020. Developments that disrupt global economies and financial markets, such as the COVID-19 pandemic, may magnify factors that affect the Fund's performance.
Shareholder Expense Example
As a shareholder, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or redemption proceeds, as applicable and (2) ongoing costs, which generally include 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 a fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2020 to January 31, 2021).
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 for a class/Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. If any fund is a shareholder of any underlying mutual funds or exchange-traded funds (ETFs) (the Underlying Funds), such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses incurred presented in the table. These fees and expenses are not included in the 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 actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the 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. If any fund is a shareholder of any Underlying Funds, such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses as presented in the table. These fees and expenses are not included in the 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 August 1, 2020 | Ending Account Value January 31, 2021 | Expenses Paid During Period-B August 1, 2020 to January 31, 2021 | |
Fidelity Series Blue Chip Growth Fund | - %-C | |||
Actual | $1,000.00 | $1,289.70 | $--D | |
Hypothetical-E | $1,000.00 | $1,025.21 | $--D |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/ 365 (to reflect the one-half year period). The fees and expenses of any Underlying Funds are not included in each annualized expense ratio.
C Amount represents less than .005%.
D Amount represents less than $.005.
E 5% return per year before expenses
Board Approval of Investment Advisory Contracts
Fidelity Series Blue Chip Growth Fund
At its January 2021 meeting, the Board of Trustees, including the Independent Trustees (together, the Board), voted to continue the management contract with Fidelity Management & Research Company LLC (FMR), and the sub-advisory agreements and sub-subadvisory agreements, in each case, where applicable (together, the Advisory Contracts) for the fund for four months from February 1, 2021 through May 31, 2021, in connection with changes to the Board's meeting calendar.The Board considered that the approval of the fund's Advisory Contracts will not result in any changes in (i) the investment process or strategies employed in the management of the fund's assets; (ii) the fees and expenses paid by shareholders; (iii) the nature, extent or quality of services provided under the fund's Advisory Contracts; or (iv) the day-to-day management of the fund or the persons primarily responsible for such management. The Board also considered that since its last approval of the fund's Advisory Contracts, FMR had provided additional information on the fund in support of the annual contract renewal process, including competitive analyses on total expenses and management fees and in-depth reviews of fund performance and fund profitability information. The Board also considered the findings of certain ad hoc committees that had been previously formed to discuss matters relevant to all of the Fidelity funds, including economies of scale, fall-out benefits and retail vs. institutional funds. The Board noted that, effective August 1, 2020, the expense cap for the fund was lowered and that the expense cap arrangements were amended to remove certain exclusions. The Board concluded that the fund's Advisory Contracts are fair and reasonable, and that the fund's Advisory Contracts should be renewed, without modification, through May 31, 2021, with the understanding that the Board will consider the annual renewal for a full one year period in May 2021.In connection with its consideration of future renewals of the fund's Advisory Contracts, the Board will consider: (i) the nature, extent and quality of services provided to the funds, including shareholder and administrative services and investment performance; (ii) the competitiveness of the management fee and total expenses for the fund; (iii) the costs of the services and profitability, including the revenues earned and the expenses incurred in conducting the business of developing, marketing, distributing, managing, administering, and servicing the fund and its shareholders, to the extent applicable; and (iv) whether there have been economies of scale in respect of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is the potential for realization of any further economies.Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board ultimately concluded that the fund's management fee structure is fair and reasonable, and that the continuation of the fund's Advisory Contracts should be approved for four months from February 1, 2021 through May 31, 2021.XS1-SANN-0321
1.967988.107
Fidelity Flex® Funds
Fidelity Flex® Large Cap Growth Fund
Semi-Annual Report
January 31, 2021
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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 1-800-544-3455 (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. © 2021 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.
Note to Shareholders:
Early in 2020, the outbreak and spread of a new coronavirus emerged as a public health emergency that had a major influence on financial markets, primarily based on its impact on the global economy and the outlook for corporate earnings. The virus causes a respiratory disease known as COVID-19. On March 11, the World Health Organization declared the COVID-19 outbreak a pandemic, citing sustained risk of further global spread.
In the weeks following, as the crisis worsened, we witnessed an escalating human tragedy with wide-scale social and economic consequences from coronavirus-containment measures. The outbreak of COVID-19 prompted a number of measures to limit the spread, including travel and border restrictions, quarantines, and restrictions on large gatherings. In turn, these resulted in lower consumer activity, diminished demand for a wide range of products and services, disruption in manufacturing and supply chains, and – given the wide variability in outcomes regarding the outbreak – significant market uncertainty and volatility. Amid the turmoil, global governments and central banks took unprecedented action to help support consumers, businesses, and the broader economies, and to limit disruption to financial systems.
The situation continues to unfold, and the extent and duration of its impact on financial markets and the economy remain highly uncertain. Extreme events such as the coronavirus crisis are “exogenous shocks” that can have significant adverse effects on mutual funds and their investments. Although multiple asset classes may be affected by market disruption, the duration and impact may not be the same for all types of assets.
Fidelity is committed to helping you stay informed amid news about COVID-19 and during increased market volatility, and we’re taking extra steps to be responsive to customer needs. We encourage you to visit our websites, where we offer ongoing updates, commentary, and analysis on the markets and our funds.
Investment Summary (Unaudited)
Top Ten Stocks as of January 31, 2021
% of fund's net assets | |
Apple, Inc. | 10.8 |
Amazon.com, Inc. | 8.1 |
Microsoft Corp. | 6.6 |
Alphabet, Inc. Class A | 5.0 |
Facebook, Inc. Class A | 4.1 |
Tesla, Inc. | 4.0 |
NVIDIA Corp. | 3.5 |
Marvell Technology Group Ltd. | 2.9 |
Salesforce.com, Inc. | 1.8 |
Uber Technologies, Inc. | 1.8 |
48.6 |
Top Five Market Sectors as of January 31, 2021
% of fund's net assets | |
Information Technology | 37.8 |
Consumer Discretionary | 30.3 |
Communication Services | 14.9 |
Health Care | 7.0 |
Industrials | 5.4 |
Asset Allocation (% of fund's net assets)
As of January 31, 2021* | ||
Stocks | 99.2% | |
Convertible Securities | 0.7% | |
Short-Term Investments and Net Other Assets (Liabilities) | 0.1% |
* Foreign investments - 13.1%
Schedule of Investments January 31, 2021 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.1% | |||
Shares | Value | ||
COMMUNICATION SERVICES - 14.9% | |||
Entertainment - 4.0% | |||
Activision Blizzard, Inc. | 5,549 | $504,959 | |
Bilibili, Inc. ADR (a) | 598 | 68,106 | |
Madison Square Garden Entertainment Corp. (a) | 1,092 | 96,915 | |
Motorsport Games, Inc. Class A | 416 | 12,555 | |
Netflix, Inc. (a) | 2,901 | 1,544,463 | |
Nintendo Co. Ltd. | 18 | 10,361 | |
Nintendo Co. Ltd. ADR | 331 | 23,921 | |
Playtika Holding Corp. | 657 | 19,145 | |
Roku, Inc. Class A (a) | 880 | 342,346 | |
Sea Ltd. ADR (a) | 5,874 | 1,272,955 | |
Skillz, Inc. (b) | 2,824 | 77,999 | |
The Walt Disney Co. | 518 | 87,112 | |
4,060,837 | |||
Interactive Media & Services - 10.7% | |||
Alphabet, Inc. Class A (a) | 2,810 | 5,134,882 | |
Facebook, Inc. Class A (a) | 16,211 | 4,187,788 | |
InterActiveCorp (a) | 102 | 21,415 | |
Match Group, Inc. (a) | 2,076 | 290,349 | |
Pinterest, Inc. Class A (a) | 757 | 51,862 | |
Snap, Inc. Class A (a) | 8,439 | 446,761 | |
Tencent Holdings Ltd. | 7,024 | 625,862 | |
Yandex NV Series A (a) | 612 | 38,336 | |
Zillow Group, Inc. Class C (a) | 274 | 35,746 | |
Zoominfo Technologies, Inc. | 2,873 | 137,933 | |
10,970,934 | |||
Wireless Telecommunication Services - 0.2% | |||
T-Mobile U.S., Inc. | 2,012 | 253,673 | |
TOTAL COMMUNICATION SERVICES | 15,285,444 | ||
CONSUMER DISCRETIONARY - 29.9% | |||
Auto Components - 0.2% | |||
QuantumScape Corp. Class A (a) | 5,479 | 239,706 | |
Automobiles - 4.7% | |||
Fisker, Inc. (a) | 963 | 14,474 | |
General Motors Co. | 787 | 39,885 | |
Harley-Davidson, Inc. | 4,391 | 176,035 | |
Hyundai Motor Co. | 100 | 20,476 | |
Kia Motors Corp. | 302 | 22,278 | |
Li Auto, Inc. ADR (a) | 468 | 15,093 | |
Lordstown Motors Corp. (a) | 383 | 9,644 | |
Lordstown Motors Corp. (b) | 4,966 | 125,044 | |
Neutron Holdings, Inc. warrants (a)(b)(c) | 9,174 | 0 | |
NIO, Inc. sponsored ADR (a) | 356 | 20,292 | |
Niu Technologies ADR (a) | 1,552 | 67,869 | |
Rad Power Bikes, Inc. (b)(c) | 1,815 | 8,755 | |
Tesla, Inc. (a) | 5,148 | 4,085,092 | |
XPeng, Inc. ADR (a)(d) | 3,918 | 188,769 | |
4,793,706 | |||
Diversified Consumer Services - 0.2% | |||
Bright Horizons Family Solutions, Inc. (a) | 873 | 132,670 | |
FSN E-Commerce Ventures Pvt Ltd. (b)(c) | 1,000 | 83,167 | |
215,837 | |||
Hotels, Restaurants & Leisure - 3.7% | |||
Airbnb, Inc. Class A (d) | 1,805 | 331,452 | |
Boyd Gaming Corp. | 3,139 | 141,757 | |
Caesars Entertainment, Inc. (a) | 6,589 | 463,800 | |
Chipotle Mexican Grill, Inc. (a) | 340 | 503,200 | |
Churchill Downs, Inc. | 970 | 181,827 | |
DraftKings, Inc. Class A (a) | 368 | 19,912 | |
Evolution Gaming Group AB (e) | 467 | 45,581 | |
Flutter Entertainment PLC | 100 | 18,668 | |
Hilton Worldwide Holdings, Inc. | 1,188 | 120,451 | |
Kambi Group PLC (a) | 885 | 49,565 | |
Las Vegas Sands Corp. | 2,643 | 127,102 | |
Marriott International, Inc. Class A | 1,755 | 204,124 | |
MGM Resorts International | 4,015 | 114,668 | |
Norwegian Cruise Line Holdings Ltd. (a) | 1,977 | 44,779 | |
Penn National Gaming, Inc. (a) | 8,767 | 909,313 | |
Planet Fitness, Inc. (a) | 1,450 | 104,400 | |
Rush Street Interactive, Inc. (b) | 1,700 | 30,889 | |
SeaWorld Entertainment, Inc. (a) | 964 | 27,541 | |
Texas Roadhouse, Inc. Class A | 1,507 | 114,848 | |
Vail Resorts, Inc. | 491 | 130,586 | |
Wynn Resorts Ltd. | 1,524 | 151,684 | |
3,836,147 | |||
Household Durables - 1.0% | |||
D.R. Horton, Inc. | 669 | 51,379 | |
KB Home | 912 | 37,976 | |
Lennar Corp. Class A | 1,020 | 84,813 | |
Purple Innovation, Inc. (a) | 2,026 | 68,965 | |
Sonos, Inc. (a) | 779 | 20,371 | |
Sony Corp. sponsored ADR | 938 | 89,776 | |
Taylor Morrison Home Corp. (a) | 4,048 | 105,167 | |
Tempur Sealy International, Inc. (a) | 3,905 | 103,092 | |
Toll Brothers, Inc. | 2,222 | 113,544 | |
TRI Pointe Homes, Inc. (a) | 5,352 | 108,110 | |
Tupperware Brands Corp. (a) | 7,379 | 221,960 | |
1,005,153 | |||
Internet & Direct Marketing Retail - 11.9% | |||
Alibaba Group Holding Ltd. sponsored ADR (a) | 3,046 | 773,166 | |
Amazon.com, Inc. (a) | 2,582 | 8,278,408 | |
BHG Group AB (a) | 531 | 9,964 | |
ContextLogic, Inc. | 465 | 13,983 | |
ContextLogic, Inc. | 670 | 18,132 | |
Delivery Hero AG (a)(e) | 291 | 44,319 | |
Doordash, Inc. | 384 | 74,216 | |
eBay, Inc. | 2,323 | 131,273 | |
Etsy, Inc. (a) | 777 | 154,693 | |
Expedia, Inc. | 2,147 | 266,443 | |
Farfetch Ltd. Class A (a) | 3,699 | 226,527 | |
Fiverr International Ltd. (a) | 237 | 48,943 | |
JD Health International, Inc. (e) | 2,700 | 53,142 | |
JD.com, Inc.: | |||
Class A | 516 | 22,882 | |
sponsored ADR (a) | 2,268 | 201,149 | |
Jumia Technologies AG ADR (a) | 2,528 | 145,486 | |
Kogan.Com Ltd. | 1,437 | 19,757 | |
MercadoLibre, Inc. (a) | 191 | 339,886 | |
Ocado Group PLC (a) | 886 | 33,711 | |
Ozon Holdings PLC ADR | 300 | 14,502 | |
Pinduoduo, Inc. ADR (a) | 5,001 | 828,716 | |
Poshmark, Inc. | 250 | 17,445 | |
The Booking Holdings, Inc. (a) | 12 | 23,332 | |
The RealReal, Inc. (a) | 6,632 | 157,046 | |
THG PLC | 2,600 | 25,685 | |
Wayfair LLC Class A (a) | 1,206 | 328,418 | |
Zomato Pvt Ltd. (b)(c)(f) | 1 | 5,353 | |
12,256,577 | |||
Leisure Products - 0.4% | |||
Bafang Electric Suzhou Co. Ltd. (A Shares) | 265 | 8,573 | |
Peloton Interactive, Inc. Class A (a) | 2,070 | 302,489 | |
Vista Outdoor, Inc. (a) | 2,192 | 63,941 | |
375,003 | |||
Multiline Retail - 0.7% | |||
Dollar Tree, Inc. (a) | 1,733 | 176,177 | |
Nordstrom, Inc. | 5,718 | 202,703 | |
Ollie's Bargain Outlet Holdings, Inc. (a) | 1,605 | 152,042 | |
Target Corp. | 963 | 174,467 | |
705,389 | |||
Specialty Retail - 4.3% | |||
Academy Sports & Outdoors, Inc. | 400 | 8,600 | |
American Eagle Outfitters, Inc. | 16,798 | 381,147 | |
Aritzia LP (a) | 2,361 | 49,112 | |
Blink Charging Co. (a) | 92 | 4,548 | |
Burlington Stores, Inc. (a) | 852 | 212,063 | |
Carvana Co. Class A (a) | 3,103 | 810,473 | |
Cazoo Holdings Ltd. (b)(c) | 547 | 7,963 | |
Dick's Sporting Goods, Inc. | 886 | 59,371 | |
Driven Brands Holdings, Inc. | 700 | 19,670 | |
Five Below, Inc. (a) | 1,558 | 273,787 | |
Floor & Decor Holdings, Inc. Class A (a) | 3,316 | 305,304 | |
Gap, Inc. | 949 | 19,217 | |
L Brands, Inc. | 568 | 23,152 | |
Lowe's Companies, Inc. | 7,444 | 1,242,031 | |
Petco Health & Wellness Co., Inc. | 888 | 23,115 | |
RH (a) | 1,120 | 532,403 | |
Shift Technologies, Inc. Class A (a) | 1,344 | 11,021 | |
The Home Depot, Inc. | 1,192 | 322,817 | |
Ulta Beauty, Inc. (a) | 102 | 28,536 | |
Vroom, Inc. | 1,340 | 49,352 | |
4,383,682 | |||
Textiles, Apparel & Luxury Goods - 2.8% | |||
Allbirds, Inc. (a)(b)(c) | 215 | 2,485 | |
Burberry Group PLC | 1,869 | 44,008 | |
Capri Holdings Ltd. (a) | 7,933 | 330,489 | |
Crocs, Inc. (a) | 5,636 | 394,633 | |
Deckers Outdoor Corp. (a) | 913 | 266,578 | |
Dr. Martens Ltd. (a) | 4,900 | 30,212 | |
lululemon athletica, Inc. (a) | 1,157 | 380,283 | |
LVMH Moet Hennessy Louis Vuitton SE | 248 | 149,940 | |
Moncler SpA | 2,120 | 119,915 | |
NIKE, Inc. Class B | 5,414 | 723,256 | |
Puma AG | 526 | 51,564 | |
PVH Corp. | 3,097 | 264,050 | |
Tapestry, Inc. | 1,833 | 57,959 | |
Under Armour, Inc. Class A (sub. vtg.) (a) | 2,275 | 39,813 | |
2,855,185 | |||
TOTAL CONSUMER DISCRETIONARY | 30,666,385 | ||
CONSUMER STAPLES - 1.0% | |||
Beverages - 0.6% | |||
Boston Beer Co., Inc. Class A (a) | 233 | 213,635 | |
Celsius Holdings, Inc. (a) | 698 | 37,273 | |
Constellation Brands, Inc. Class A (sub. vtg.) | 429 | 90,489 | |
Monster Beverage Corp. (a) | 2,330 | 202,314 | |
Nongfu Spring Co. Ltd. (H Shares) (a)(e) | 3,200 | 24,165 | |
567,876 | |||
Food & Staples Retailing - 0.1% | |||
Blink Health, Inc. Series A1 (b)(c) | 99 | 3,231 | |
Performance Food Group Co. (a) | 1,538 | 72,101 | |
Sweetgreen, Inc. warrants 1/21/26 (a)(b)(c) | 672 | 2,654 | |
Walgreens Boots Alliance, Inc. | 606 | 30,452 | |
Zur Rose Group AG (a) | 38 | 17,470 | |
125,908 | |||
Food Products - 0.1% | |||
Bunge Ltd. | 423 | 27,681 | |
Darling Ingredients, Inc. (a) | 682 | 42,291 | |
Freshpet, Inc. (a) | 178 | 24,797 | |
Village Farms International, Inc. (a) | 3,313 | 39,160 | |
133,929 | |||
Personal Products - 0.1% | |||
Herbalife Nutrition Ltd. (a) | 2,087 | 106,354 | |
Yatsen Holding Ltd. ADR | 500 | 9,595 | |
115,949 | |||
Tobacco - 0.1% | |||
JUUL Labs, Inc. Class A (a)(b)(c) | 217 | 14,272 | |
RLX Technology, Inc. ADR | 2,221 | 49,973 | |
Swedish Match Co. AB | 857 | 66,252 | |
130,497 | |||
TOTAL CONSUMER STAPLES | 1,074,159 | ||
ENERGY - 0.8% | |||
Energy Equipment & Services - 0.1% | |||
Schlumberger Ltd. | 2,532 | 56,236 | |
Oil, Gas & Consumable Fuels - 0.7% | |||
ConocoPhillips Co. | 1,485 | 59,445 | |
EOG Resources, Inc. | 1,090 | 55,546 | |
Hess Corp. | 496 | 26,774 | |
HollyFrontier Corp. | 693 | 19,723 | |
Neste Oyj | 130 | 9,194 | |
Occidental Petroleum Corp. | 1,013 | 20,321 | |
Pioneer Natural Resources Co. | 423 | 51,141 | |
Reliance Industries Ltd. | 13,054 | 330,014 | |
Reliance Industries Ltd. | 885 | 11,751 | |
Reliance Industries Ltd. sponsored GDR (e) | 697 | 35,338 | |
Renewable Energy Group, Inc. (a) | 319 | 28,582 | |
Suncor Energy, Inc. | 3,205 | 53,611 | |
Valero Energy Corp. | 176 | 9,932 | |
711,372 | |||
TOTAL ENERGY | 767,608 | ||
FINANCIALS - 1.0% | |||
Banks - 0.3% | |||
Citigroup, Inc. | 2,425 | 140,626 | |
Kotak Mahindra Bank Ltd. (a) | 733 | 17,233 | |
Wells Fargo & Co. | 6,307 | 188,453 | |
346,312 | |||
Capital Markets - 0.2% | |||
CarLotz, Inc. (b) | 1,992 | 18,717 | |
Goldman Sachs Group, Inc. | 204 | 55,319 | |
London Stock Exchange Group PLC | 180 | 21,369 | |
Morgan Stanley | 917 | 61,485 | |
Open Lending Corp. (a) | 571 | 20,722 | |
Star Peak Energy Transition Corp. Class A (a) | 308 | 8,347 | |
185,959 | |||
Consumer Finance - 0.3% | |||
Ally Financial, Inc. | 3,794 | 143,565 | |
Capital One Financial Corp. | 1,114 | 116,146 | |
259,711 | |||
Diversified Financial Services - 0.2% | |||
Ant International Co. Ltd. Class C (a)(b)(c) | 2,450 | 21,070 | |
ArcLight Clean Transition Corp. Class A (a)(d) | 1,014 | 24,306 | |
BTRS Holdings, Inc. (b) | 1,327 | 19,348 | |
Experience Investment Corp. Class A (a) | 2,522 | 37,200 | |
InterPrivate Acquisition Corp. (a) | 1,474 | 21,756 | |
Jaws Acquisition Corp. (a) | 2,120 | 27,581 | |
Northern Star Acquisition Corp. unit | 673 | 9,207 | |
Novus Capital Corp. (b) | 3,042 | 68,308 | |
Patria Investments Ltd. | 630 | 11,246 | |
240,022 | |||
Insurance - 0.0% | |||
Goosehead Insurance | 224 | 29,926 | |
Thrifts & Mortgage Finance - 0.0% | |||
Housing Development Finance Corp. Ltd. | 365 | 11,912 | |
TOTAL FINANCIALS | 1,073,842 | ||
HEALTH CARE - 7.0% | |||
Biotechnology - 2.2% | |||
4D Molecular Therapeutics, Inc. | 511 | 21,646 | |
ACADIA Pharmaceuticals, Inc. (a) | 311 | 14,944 | |
Acceleron Pharma, Inc. (a) | 961 | 111,024 | |
ADC Therapeutics SA (a) | 696 | 19,885 | |
Agios Pharmaceuticals, Inc. (a) | 116 | 5,449 | |
Akouos, Inc. (a) | 400 | 6,368 | |
Allakos, Inc. (a) | 276 | 36,799 | |
Alnylam Pharmaceuticals, Inc. (a) | 1,540 | 231,739 | |
Annexon, Inc. (a) | 735 | 16,170 | |
Arcutis Biotherapeutics, Inc. (a) | 400 | 10,916 | |
Argenx SE ADR (a) | 76 | 22,270 | |
Ascendis Pharma A/S sponsored ADR (a) | 382 | 57,357 | |
Avidity Biosciences, Inc. | 300 | 6,864 | |
BeiGene Ltd. (a) | 331 | 8,116 | |
BeiGene Ltd. ADR (a) | 79 | 25,280 | |
BioAtla, Inc. | 300 | 13,191 | |
Biohaven Pharmaceutical Holding Co. Ltd. (a) | 85 | 7,244 | |
BioXcel Therapeutics, Inc. (a) | 112 | 5,188 | |
BridgeBio Pharma, Inc. (a) | 201 | 11,409 | |
CareDx, Inc. (a) | 260 | 19,872 | |
Cullinan Management, Inc. | 300 | 11,403 | |
FibroGen, Inc. (a) | 496 | 23,897 | |
Forma Therapeutics Holdings, Inc. | 489 | 18,890 | |
Fusion Pharmaceuticals, Inc. (a) | 400 | 4,520 | |
Generation Bio Co. | 1,151 | 30,306 | |
Gracell Biotechnologies, Inc. ADR | 478 | 9,904 | |
Invitae Corp. (a) | 559 | 27,682 | |
Ionis Pharmaceuticals, Inc. (a) | 36 | 2,163 | |
Karuna Therapeutics, Inc. (a) | 173 | 17,167 | |
Kinnate Biopharma, Inc. | 300 | 9,840 | |
Kronos Bio, Inc. | 573 | 15,752 | |
Kura Oncology, Inc. (a) | 458 | 13,717 | |
Mirati Therapeutics, Inc. (a) | 58 | 11,909 | |
Moderna, Inc. (a) | 152 | 26,320 | |
Natera, Inc. (a) | 183 | 19,515 | |
Neurocrine Biosciences, Inc. (a) | 1,058 | 116,116 | |
Novavax, Inc. (a) | 473 | 104,505 | |
Passage Bio, Inc. | 940 | 17,540 | |
Prelude Therapeutics, Inc. | 466 | 30,267 | |
Protagonist Therapeutics, Inc. (a) | 727 | 15,056 | |
Regeneron Pharmaceuticals, Inc. (a) | 1,102 | 555,232 | |
Relay Therapeutics, Inc. (a) | 546 | 27,071 | |
Revolution Medicines, Inc. | 653 | 27,517 | |
Sage Therapeutics, Inc. (a) | 506 | 40,809 | |
Scholar Rock Holding Corp. (a) | 178 | 10,619 | |
Seagen, Inc. (a) | 124 | 20,369 | |
Seer, Inc. | 476 | 29,702 | |
Shattuck Labs, Inc. | 300 | 14,883 | |
Silverback Therapeutics, Inc. | 500 | 21,960 | |
Taysha Gene Therapies, Inc. | 400 | 10,400 | |
TG Therapeutics, Inc. (a) | 421 | 20,322 | |
Turning Point Therapeutics, Inc. (a) | 906 | 113,694 | |
Twist Bioscience Corp. (a) | 75 | 12,341 | |
Vaxcyte, Inc. | 600 | 14,718 | |
Xencor, Inc. (a) | 200 | 9,150 | |
Zai Lab Ltd. ADR (a) | 1,023 | 163,752 | |
2,270,739 | |||
Health Care Equipment & Supplies - 2.0% | |||
Align Technology, Inc. (a) | 46 | 24,167 | |
Atricure, Inc. (a) | 104 | 6,056 | |
Axonics Modulation Technologies, Inc. (a) | 1,795 | 92,802 | |
CryoPort, Inc. (a) | 295 | 20,119 | |
Danaher Corp. | 916 | 217,861 | |
DexCom, Inc. (a) | 969 | 363,230 | |
Hologic, Inc. (a) | 1,411 | 112,499 | |
InMode Ltd. (a) | 811 | 47,735 | |
Insulet Corp. (a) | 526 | 140,537 | |
Intuitive Surgical, Inc. (a) | 882 | 659,418 | |
Novocure Ltd. (a) | 524 | 84,343 | |
Outset Medical, Inc. | 331 | 17,156 | |
Pulmonx Corp. | 300 | 17,016 | |
Shockwave Medical, Inc. (a) | 1,092 | 126,716 | |
Tandem Diabetes Care, Inc. (a) | 1,510 | 139,902 | |
2,069,557 | |||
Health Care Providers & Services - 0.6% | |||
1Life Healthcare, Inc. (a) | 1,404 | 71,042 | |
Alignment Healthcare Partners unit (b)(c) | 380 | 7,505 | |
Castle Biosciences, Inc. (a) | 145 | 9,690 | |
Cigna Corp. | 261 | 56,650 | |
Guardant Health, Inc. (a) | 963 | 149,747 | |
Humana, Inc. | 550 | 210,711 | |
Oak Street Health, Inc. (a) | 300 | 15,561 | |
Owens & Minor, Inc. | 615 | 17,884 | |
Surgery Partners, Inc. (a) | 732 | 27,289 | |
566,079 | |||
Health Care Technology - 0.1% | |||
American Well Corp. | 807 | 28,576 | |
Certara, Inc. | 800 | 27,536 | |
GoodRx Holdings, Inc. | 1,360 | 63,403 | |
MultiPlan Corp. (b) | 3,849 | 30,715 | |
MultiPlan Corp. warrants (a)(b) | 212 | 493 | |
150,723 | |||
Life Sciences Tools & Services - 1.1% | |||
10X Genomics, Inc. (a) | 586 | 100,294 | |
Avantor, Inc. (a) | 1,594 | 47,007 | |
Berkeley Lights, Inc. (a) | 509 | 36,648 | |
Bio-Rad Laboratories, Inc. Class A (a) | 61 | 35,000 | |
Eurofins Scientific SA (a) | 150 | 14,413 | |
Maravai LifeSciences Holdings, Inc. | 272 | 9,476 | |
Nanostring Technologies, Inc. (a) | 490 | 34,315 | |
Sotera Health Co. | 700 | 18,263 | |
Thermo Fisher Scientific, Inc. | 1,542 | 785,957 | |
1,081,373 | |||
Pharmaceuticals - 1.0% | |||
Antengene Corp. | 12,000 | 26,633 | |
Aphria, Inc. (a) | 4,489 | 54,676 | |
Arvinas Holding Co. LLC (a) | 118 | 8,902 | |
Atea Pharmaceuticals, Inc. | 337 | 24,601 | |
Eli Lilly & Co. | 52 | 10,814 | |
Hansoh Pharmaceutical Group Co. Ltd. (a)(e) | 2,259 | 12,354 | |
Harmony Biosciences Holdings, Inc. (a) | 281 | 10,077 | |
Horizon Therapeutics PLC (a) | 2,752 | 199,465 | |
Intra-Cellular Therapies, Inc. (a) | 838 | 26,942 | |
Nektar Therapeutics (a) | 567 | 11,170 | |
OptiNose, Inc. (a) | 1,896 | 7,546 | |
Roche Holding AG (participation certificate) | 182 | 62,810 | |
Zoetis, Inc. Class A | 3,710 | 572,268 | |
1,028,258 | |||
TOTAL HEALTH CARE | 7,166,729 | ||
INDUSTRIALS - 5.3% | |||
Aerospace & Defense - 0.2% | |||
Axon Enterprise, Inc. (a) | 881 | 144,625 | |
The Boeing Co. | 279 | 54,179 | |
198,804 | |||
Air Freight & Logistics - 0.2% | |||
FedEx Corp. | 1,010 | 237,693 | |
Airlines - 0.3% | |||
American Airlines Group, Inc. (d) | 2,304 | 39,560 | |
Delta Air Lines, Inc. | 2,587 | 98,203 | |
JetBlue Airways Corp. (a) | 7,418 | 106,374 | |
Spirit Airlines, Inc. (a) | 1,910 | 49,545 | |
United Airlines Holdings, Inc. (a) | 1,075 | 42,989 | |
336,671 | |||
Building Products - 0.3% | |||
Builders FirstSource, Inc. (a) | 1,738 | 66,479 | |
Carrier Global Corp. | 2,429 | 93,517 | |
The AZEK Co., Inc. | 3,422 | 136,504 | |
Trane Technologies PLC | 110 | 15,769 | |
312,269 | |||
Commercial Services & Supplies - 0.1% | |||
Aker Carbon Capture A/S (a) | 2,500 | 5,195 | |
MYT Netherlands Parent BV ADR | 1,175 | 38,681 | |
43,876 | |||
Construction & Engineering - 0.2% | |||
Dycom Industries, Inc. (a) | 1,929 | 156,519 | |
Quanta Services, Inc. | 370 | 26,074 | |
182,593 | |||
Electrical Equipment - 0.3% | |||
Ballard Power Systems, Inc. (a) | 300 | 10,251 | |
Bloom Energy Corp. Class A (a) | 986 | 34,421 | |
Plug Power, Inc. (a) | 901 | 56,916 | |
Sunrun, Inc. (a) | 2,208 | 152,948 | |
254,536 | |||
Industrial Conglomerates - 0.1% | |||
General Electric Co. | 12,723 | 135,882 | |
Machinery - 0.1% | |||
Caterpillar, Inc. | 147 | 26,877 | |
Deere & Co. | 196 | 56,605 | |
Desktop Metal, Inc. (a) | 932 | 21,408 | |
104,890 | |||
Professional Services - 0.1% | |||
Boa Vista Servicos SA | 6,645 | 11,550 | |
Upwork, Inc. (a) | 3,065 | 127,044 | |
138,594 | |||
Road & Rail - 3.4% | |||
Lyft, Inc. (a) | 36,670 | 1,630,348 | |
Uber Technologies, Inc. (a) | 36,242 | 1,845,805 | |
3,476,153 | |||
TOTAL INDUSTRIALS | 5,421,961 | ||
INFORMATION TECHNOLOGY - 37.6% | |||
Communications Equipment - 0.0% | |||
F5 Networks, Inc. (a) | 53 | 10,385 | |
Electronic Equipment & Components - 0.5% | |||
908 Devices, Inc. | 300 | 16,533 | |
II-VI, Inc. (a) | 5,143 | 432,372 | |
448,905 | |||
IT Services - 3.7% | |||
Affirm Holdings, Inc. | 200 | 19,918 | |
Afterpay Ltd. (a) | 821 | 84,768 | |
Endava PLC ADR (a) | 414 | 32,731 | |
Liveramp Holdings, Inc. (a) | 133 | 10,069 | |
MongoDB, Inc. Class A (a) | 370 | 136,756 | |
PayPal Holdings, Inc. (a) | 5,364 | 1,256,839 | |
Repay Holdings Corp. (a) | 1,023 | 22,659 | |
Riskified Ltd. warrants (a)(b)(c) | 5 | 0 | |
Shopify, Inc. Class A (a) | 513 | 559,352 | |
Snowflake Computing, Inc. | 246 | 67,023 | |
Snowflake Computing, Inc.: | |||
Class B | 36 | 9,318 | |
Class B (e) | 11 | 2,997 | |
Square, Inc. (a) | 2,689 | 580,716 | |
Twilio, Inc. Class A (a) | 1,487 | 534,472 | |
Visa, Inc. Class A | 2,498 | 482,739 | |
3,800,357 | |||
Semiconductors & Semiconductor Equipment - 10.0% | |||
Advanced Micro Devices, Inc. (a) | 7,055 | 604,190 | |
Allegro MicroSystems LLC (a) | 500 | 13,960 | |
Ambarella, Inc. (a) | 300 | 28,308 | |
Array Technologies, Inc. | 4,981 | 203,026 | |
Cirrus Logic, Inc. (a) | 540 | 50,593 | |
Enphase Energy, Inc. (a) | 1,307 | 238,331 | |
First Solar, Inc. (a) | 507 | 50,269 | |
Lam Research Corp. | 120 | 58,074 | |
Lattice Semiconductor Corp. (a) | 986 | 39,548 | |
Marvell Technology Group Ltd. | 57,809 | 2,974,851 | |
MediaTek, Inc. | 1,136 | 35,486 | |
Microchip Technology, Inc. | 105 | 14,292 | |
Micron Technology, Inc. (a) | 7,536 | 589,843 | |
NVIDIA Corp. | 6,916 | 3,593,484 | |
NXP Semiconductors NV | 8,244 | 1,322,915 | |
ON Semiconductor Corp. (a) | 3,131 | 107,988 | |
SolarEdge Technologies, Inc. (a) | 406 | 117,062 | |
Synaptics, Inc. (a) | 267 | 26,492 | |
Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR | 603 | 73,277 | |
Universal Display Corp. | 506 | 116,795 | |
10,258,784 | |||
Software - 12.6% | |||
Adobe, Inc. (a) | 2,413 | 1,107,012 | |
Anaplan, Inc. (a) | 425 | 28,348 | |
Atlassian Corp. PLC (a) | 112 | 25,887 | |
Autodesk, Inc. (a) | 241 | 66,861 | |
Avalara, Inc. (a) | 310 | 46,500 | |
Bill.Com Holdings, Inc. (a) | 506 | 61,671 | |
Bird Rides, Inc. (c) | 1,634 | 12,925 | |
Cerence, Inc. (a) | 308 | 34,468 | |
Cloudflare, Inc. (a) | 300 | 22,998 | |
Coupa Software, Inc. (a) | 310 | 96,060 | |
Crowdstrike Holdings, Inc. (a) | 1,056 | 227,885 | |
Digital Turbine, Inc. (a) | 696 | 39,818 | |
Docebo, Inc. | 518 | 25,568 | |
DocuSign, Inc. (a) | 879 | 204,710 | |
Duck Creek Technologies, Inc. (a) | 436 | 21,076 | |
Elastic NV (a) | 887 | 134,789 | |
Epic Games, Inc. (b)(c) | 9 | 5,175 | |
FireEye, Inc. (a) | 822 | 17,262 | |
Five9, Inc. (a) | 253 | 42,061 | |
Freee KK (a) | 97 | 8,242 | |
HubSpot, Inc. (a) | 581 | 216,248 | |
Intuit, Inc. | 70 | 25,286 | |
Kuaishou Technology (a) | 1,000 | 14,832 | |
Lightspeed POS, Inc. (Canada) (a) | 3,305 | 214,854 | |
Microsoft Corp. | 28,997 | 6,726,144 | |
Nuance Communications, Inc. (a) | 2,893 | 131,747 | |
Palo Alto Networks, Inc. (a) | 50 | 17,538 | |
Paycom Software, Inc. (a) | 61 | 23,164 | |
Qualtrics International, Inc. | 500 | 22,000 | |
RingCentral, Inc. (a) | 428 | 159,610 | |
Salesforce.com, Inc. (a) | 8,186 | 1,846,434 | |
ServiceNow, Inc. (a) | 614 | 333,500 | |
Tanium, Inc. Class B (a)(b)(c) | 131 | 1,493 | |
Telos Corp. | 400 | 14,120 | |
The Trade Desk, Inc. (a) | 372 | 284,948 | |
Volue A/S | 2,119 | 11,875 | |
Workday, Inc. Class A (a) | 1,127 | 256,426 | |
Zoom Video Communications, Inc. Class A (a) | 1,172 | 436,066 | |
12,965,601 | |||
Technology Hardware, Storage & Peripherals - 10.8% | |||
Apple, Inc. | 84,263 | 11,119,340 | |
TOTAL INFORMATION TECHNOLOGY | 38,603,372 | ||
MATERIALS - 0.9% | |||
Chemicals - 0.7% | |||
Corteva, Inc. | 1,611 | 64,214 | |
LG Chemical Ltd. | 24 | 19,678 | |
Linde PLC | 148 | 36,319 | |
Nutrien Ltd. | 6,046 | 297,773 | |
Olin Corp. | 2,032 | 48,585 | |
PPG Industries, Inc. | 419 | 56,443 | |
The Chemours Co. LLC | 7,237 | 190,623 | |
The Mosaic Co. | 2,182 | 56,645 | |
770,280 | |||
Metals & Mining - 0.2% | |||
Anglo American PLC (United Kingdom) | 797 | 26,361 | |
ArcelorMittal SA Class A unit (a) | 2,658 | 57,386 | |
Freeport-McMoRan, Inc. | 2,266 | 60,978 | |
Gatos Silver, Inc. | 1,700 | 22,457 | |
167,182 | |||
TOTAL MATERIALS | 937,462 | ||
REAL ESTATE - 0.6% | |||
Equity Real Estate Investment Trusts (REITs) - 0.1% | |||
Park Hotels & Resorts, Inc. | 126 | 2,102 | |
Simon Property Group, Inc. | 1,357 | 126,106 | |
128,208 | |||
Real Estate Management & Development - 0.5% | |||
KE Holdings, Inc. ADR (a) | 1,712 | 101,179 | |
Opendoor Technologies, Inc. (a) | 886 | 23,142 | |
Realogy Holdings Corp. (a) | 2,076 | 29,479 | |
Redfin Corp. (a) | 3,978 | 283,273 | |
437,073 | |||
TOTAL REAL ESTATE | 565,281 | ||
UTILITIES - 0.1% | |||
Electric Utilities - 0.0% | |||
PG&E Corp. (a) | 1,305 | 14,916 | |
Independent Power and Renewable Electricity Producers - 0.1% | |||
Brookfield Renewable Corp. | 495 | 27,751 | |
Shoals Technologies Group, Inc. | 1,567 | 53,168 | |
The AES Corp. | 1,967 | 47,975 | |
128,894 | |||
TOTAL UTILITIES | 143,810 | ||
TOTAL COMMON STOCKS | |||
(Cost $65,110,750) | 101,706,053 | ||
Preferred Stocks - 0.8% | |||
Convertible Preferred Stocks - 0.7% | |||
COMMUNICATION SERVICES - 0.0% | |||
Diversified Telecommunication Services - 0.0% | |||
Starry, Inc.: | |||
Series C (a)(b)(c) | 3,181 | 4,549 | |
Series D (a)(b)(c) | 7,310 | 10,453 | |
15,002 | |||
CONSUMER DISCRETIONARY - 0.3% | |||
Automobiles - 0.2% | |||
Rad Power Bikes, Inc.: | |||
Series A (b)(c) | 237 | 1,143 | |
Series C (b)(c) | 931 | 4,491 | |
Rivian Automotive, Inc.: | |||
Series E (b)(c) | 3,444 | 126,911 | |
Series F (b)(c) | 1,949 | 71,821 | |
204,366 | |||
Hotels, Restaurants & Leisure - 0.0% | |||
Topgolf International, Inc. Series F (a)(b) | 217 | 5,073 | |
Internet & Direct Marketing Retail - 0.1% | |||
Instacart, Inc. Series H (b)(c) | 461 | 27,660 | |
The Honest Co., Inc. Series E (a)(b)(c) | 282 | 7,320 | |
Zomato Pvt Ltd. Series J7 (b)(c) | 2 | 10,705 | |
45,685 | |||
Specialty Retail - 0.0% | |||
Fanatics, Inc. Series E (b)(c) | 1,655 | 28,615 | |
Textiles, Apparel & Luxury Goods - 0.0% | |||
Allbirds, Inc.: | |||
Series A (a)(b)(c) | 85 | 983 | |
Series B (a)(b)(c) | 15 | 173 | |
Series C (a)(b)(c) | 140 | 1,618 | |
Series Seed (a)(b)(c) | 45 | 520 | |
3,294 | |||
TOTAL CONSUMER DISCRETIONARY | 287,033 | ||
CONSUMER STAPLES - 0.1% | |||
Food & Staples Retailing - 0.1% | |||
Blink Health, Inc. Series C (a)(b)(c) | 194 | 6,332 | |
Roofoods Ltd.: | |||
Series F (a)(b)(c) | 17 | 14,922 | |
Series H (b)(c) | 24 | 21,066 | |
Sweetgreen, Inc.: | |||
Series C (a)(b)(c) | 13 | 171 | |
Series D (a)(b)(c) | 205 | 2,696 | |
Series H (a)(b)(c) | 1,969 | 25,892 | |
Series I (a)(b)(c) | 482 | 6,338 | |
Series J (b)(c) | 672 | 8,837 | |
86,254 | |||
Food Products - 0.0% | |||
Agbiome LLC Series C (a)(b)(c) | 557 | 3,528 | |
Tobacco - 0.0% | |||
JUUL Labs, Inc. Series E (a)(b)(c) | 127 | 8,353 | |
TOTAL CONSUMER STAPLES | 98,135 | ||
FINANCIALS - 0.0% | |||
Diversified Financial Services - 0.0% | |||
Sonder Holdings, Inc. Series D1 (b)(c) | 528 | 5,685 | |
HEALTH CARE - 0.0% | |||
Biotechnology - 0.0% | |||
23andMe, Inc. Series F (a)(b)(c) | 339 | 5,882 | |
Nuvation Bio, Inc. Series A (a)(b) | 7,400 | 12,654 | |
18,536 | |||
INDUSTRIALS - 0.1% | |||
Aerospace & Defense - 0.1% | |||
Space Exploration Technologies Corp. Series N (b)(c) | 126 | 34,020 | |
INFORMATION TECHNOLOGY - 0.2% | |||
Electronic Equipment & Components - 0.0% | |||
Enevate Corp. Series E (b)(c) | 24,030 | 26,642 | |
IT Services - 0.1% | |||
ByteDance Ltd. Series E1 (b)(c) | 544 | 59,608 | |
Riskified Ltd.: | |||
Series D (b)(c) | 201 | 2,312 | |
Series E (a)(b)(c) | 625 | 7,188 | |
69,108 | |||
Software - 0.1% | |||
ACV Auctions, Inc.: | |||
Series E (a)(b)(c) | 754 | 4,467 | |
Series E1 (b)(c) | 1,946 | 11,528 | |
Compass, Inc. Series E (a)(b)(c) | 28 | 5,121 | |
DoubleVerify, Inc. Series A (b)(c) | 9,345 | 53,613 | |
Nuvia, Inc. Series B (b)(c) | 2,764 | 20,315 | |
UiPath, Inc.: | |||
Series A1 (a)(b)(c) | 273 | 17,001 | |
Series B1 (a)(b)(c) | 15 | 934 | |
Series B2 (a)(b)(c) | 69 | 4,297 | |
117,276 | |||
TOTAL INFORMATION TECHNOLOGY | 213,026 | ||
TOTAL CONVERTIBLE PREFERRED STOCKS | 671,437 | ||
Nonconvertible Preferred Stocks - 0.1% | |||
CONSUMER DISCRETIONARY - 0.1% | |||
Automobiles - 0.1% | |||
Neutron Holdings, Inc.: | |||
Series 1C (b)(c) | 26,100 | 522 | |
Series 1D (b)(c) | 58,561 | 1,171 | |
Volkswagen AG | 541 | 102,708 | |
Waymo LLC Series A2 (b)(c) | 127 | 10,905 | |
115,306 | |||
Specialty Retail - 0.0% | |||
Cazoo Holdings Ltd.: | |||
Series A (b)(c) | 18 | 262 | |
Series B (b)(c) | 313 | 4,557 | |
Series C (b)(c) | 6 | 87 | |
Series D (b)(c) | 1,116 | 16,247 | |
21,153 | |||
TOTAL CONSUMER DISCRETIONARY | 136,459 | ||
TOTAL PREFERRED STOCKS | |||
(Cost $679,651) | 807,896 | ||
Principal Amount | Value | ||
Convertible Bonds - 0.0% | |||
CONSUMER DISCRETIONARY - 0.0% | |||
Automobiles - 0.0% | |||
Neutron Holdings, Inc.: | |||
4% 5/22/27 (b)(c) | 5,000 | 5,000 | |
4% 6/12/27 (b)(c) | 3,170 | 3,170 | |
TOTAL CONVERTIBLE BONDS | |||
(Cost $8,170) | 8,170 | ||
Preferred Securities - 0.0% | |||
INFORMATION TECHNOLOGY - 0.0% | |||
Electronic Equipment & Components - 0.0% | |||
Enevate Corp. 0% 1/29/23 (Cost $10,231)(b)(c) | 10,231 | 10,231 | |
Shares | Value | ||
Money Market Funds - 0.6% | |||
Fidelity Securities Lending Cash Central Fund 0.09% (g)(h) | |||
(Cost $584,705) | 584,647 | 584,705 | |
TOTAL INVESTMENT IN SECURITIES - 100.5% | |||
(Cost $66,393,507) | 103,117,055 | ||
NET OTHER ASSETS (LIABILITIES) - (0.5)% | (498,957) | ||
NET ASSETS - 100% | $102,618,098 |
Legend
(a) Non-income producing
(b) Restricted securities (including private placements) - 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 $1,258,226 or 1.2% of net assets.
(c) Level 3 security
(d) Security or a portion of the security is on loan at period end.
(e) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $217,896 or 0.2% of net assets.
(f) Security or a portion of the security purchased on a delayed delivery or when-issued basis.
(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 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 | $4,707 |
ACV Auctions, Inc. Series E | 11/6/19 | $4,170 |
ACV Auctions, Inc. Series E1 | 9/4/20 | $11,528 |
Agbiome LLC Series C | 6/29/18 | $3,528 |
Alignment Healthcare Partners unit | 2/28/20 | $4,605 |
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 |
Allbirds, Inc. Series Seed | 10/9/18 | $494 |
Ant International Co. Ltd. Class C | 5/16/18 | $13,745 |
Blink Health, Inc. Series A1 | 12/30/20 | $2,682 |
Blink Health, Inc. Series C | 11/7/19 - 1/21/21 | $7,406 |
BTRS Holdings, Inc. | 1/12/21 | $13,270 |
ByteDance Ltd. Series E1 | 11/18/20 | $59,608 |
CarLotz, Inc. | 1/21/21 | $19,920 |
Cazoo Holdings Ltd. | 9/30/20 | $7,499 |
Cazoo Holdings Ltd. Series A | 9/30/20 | $247 |
Cazoo Holdings Ltd. Series B | 9/30/20 | $4,291 |
Cazoo Holdings Ltd. Series C | 9/30/20 | $82 |
Cazoo Holdings Ltd. Series D | 9/30/20 | $15,300 |
Compass, Inc. Series E | 11/3/17 | $1,889 |
DoubleVerify, Inc. Series A | 11/18/20 | $53,613 |
Enevate Corp. Series E | 1/29/21 | $26,642 |
Enevate Corp. 0% 1/29/23 | 1/29/21 | $10,231 |
Epic Games, Inc. | 7/30/20 | $5,175 |
Fanatics, Inc. Series E | 8/13/20 | $28,615 |
FSN E-Commerce Ventures Pvt Ltd. | 10/7/20 | $82,628 |
Instacart, Inc. Series H | 11/13/20 | $27,660 |
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 |
Lordstown Motors Corp. | 10/23/20 | $49,660 |
MultiPlan Corp. | 10/8/20 | $38,109 |
MultiPlan Corp. warrants | 10/8/20 | $0 |
Neutron Holdings, Inc. Series 1C | 7/3/18 | $4,772 |
Neutron Holdings, Inc. Series 1D | 1/25/19 | $14,201 |
Neutron Holdings, Inc. warrants | 6/4/20 | $0 |
Neutron Holdings, Inc. 4% 5/22/27 | 6/4/20 | $5,000 |
Neutron Holdings, Inc. 4% 6/12/27 | 6/12/20 | $3,170 |
Novus Capital Corp. | 1/29/21 | $30,420 |
Nuvation Bio, Inc. Series A | 6/17/19 | $5,708 |
Nuvia, Inc. Series B | 9/18/20 | $8,865 |
Rad Power Bikes, Inc. | 1/21/21 | $8,755 |
Rad Power Bikes, Inc. Series A | 1/21/21 | $1,143 |
Rad Power Bikes, Inc. Series C | 1/21/21 | $4,491 |
Riskified Ltd. Series D | 11/18/20 | $2,312 |
Riskified Ltd. Series E | 10/28/19 | $5,947 |
Riskified Ltd. warrants | 10/28/19 | $0 |
Rivian Automotive, Inc. Series E | 7/10/20 | $53,348 |
Rivian Automotive, Inc. Series F | 1/19/21 | $71,821 |
Roofoods Ltd. Series F | 9/12/17 | $6,011 |
Roofoods Ltd. Series H | 1/15/21 | $21,066 |
Rush Street Interactive, Inc. | 12/29/20 | $17,000 |
Skillz, Inc. | 12/16/20 | $28,240 |
Sonder Holdings, Inc. Series D1 | 12/20/19 | $5,542 |
Space Exploration Technologies Corp. Series N | 8/4/20 | $34,020 |
Starry, Inc. Series C | 12/8/17 | $2,933 |
Starry, Inc. Series D | 3/6/19 - 7/30/20 | $10,453 |
Sweetgreen, Inc. warrants 1/21/26 | 1/21/21 | $0 |
Sweetgreen, Inc. Series C | 9/13/19 | $222 |
Sweetgreen, Inc. Series D | 9/13/19 | $3,506 |
Sweetgreen, Inc. Series H | 11/9/18 | $25,676 |
Sweetgreen, Inc. Series I | 9/13/19 | $8,242 |
Sweetgreen, Inc. Series J | 1/21/21 | $11,491 |
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 |
Waymo LLC Series A2 | 5/8/20 | $10,905 |
Zomato Pvt Ltd. | 1/22/21 | $4,114 |
Zomato Pvt Ltd. Series J7 | 12/9/20 | $8,146 |
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 | $699 |
Fidelity Securities Lending Cash Central Fund | 363 |
Total | $1,062 |
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 January 31, 2021, 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 | $15,300,446 | $14,649,221 | $636,223 | $15,002 |
Consumer Discretionary | 31,089,877 | 30,470,416 | 196,027 | 423,434 |
Consumer Staples | 1,172,294 | 1,054,002 | -- | 118,292 |
Energy | 767,608 | 767,608 | -- | -- |
Financials | 1,079,527 | 925,030 | 127,742 | 26,755 |
Health Care | 7,185,265 | 7,069,288 | 102,590 | 13,387 |
Industrials | 5,455,981 | 5,421,961 | -- | 34,020 |
Information Technology | 38,816,398 | 38,559,629 | 24,150 | 232,619 |
Materials | 937,462 | 937,462 | -- | -- |
Real Estate | 565,281 | 565,281 | -- | -- |
Utilities | 143,810 | 143,810 | -- | -- |
Corporate Bonds | 8,170 | -- | -- | 8,170 |
Preferred Securities | 10,231 | -- | -- | 10,231 |
Money Market Funds | 584,705 | 584,705 | -- | -- |
Total Investments in Securities: | $103,117,055 | $101,148,413 | $1,086,732 | $881,910 |
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 | 86.9% |
Cayman Islands | 4.6% |
Bermuda | 2.9% |
Netherlands | 1.6% |
Canada | 1.3% |
Others (Individually Less Than 1%) | 2.7% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
January 31, 2021 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $557,023) — See accompanying schedule: Unaffiliated issuers (cost $65,808,802) | $102,532,350 | |
Fidelity Central Funds (cost $584,705) | 584,705 | |
Total Investment in Securities (cost $66,393,507) | $103,117,055 | |
Receivable for investments sold | 685,035 | |
Receivable for fund shares sold | 95,289 | |
Dividends receivable | 9,890 | |
Interest receivable | 214 | |
Distributions receivable from Fidelity Central Funds | 203 | |
Total assets | 103,907,686 | |
Liabilities | ||
Payable to custodian bank | $180,385 | |
Payable for investments purchased | ||
Regular delivery | 500,632 | |
Delayed delivery | 4,121 | |
Payable for fund shares redeemed | 4,514 | |
Other payables and accrued expenses | 15,231 | |
Collateral on securities loaned | 584,705 | |
Total liabilities | 1,289,588 | |
Net Assets | $102,618,098 | |
Net Assets consist of: | ||
Paid in capital | $64,539,210 | |
Total accumulated earnings (loss) | 38,078,888 | |
Net Assets | $102,618,098 | |
Net Asset Value, offering price and redemption price per share ($102,618,098 ÷ 3,887,930 shares) | $26.39 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended January 31, 2021 (Unaudited) | ||
Investment Income | ||
Dividends | $125,546 | |
Interest | 165 | |
Income from Fidelity Central Funds (including $363 from security lending) | 1,062 | |
Total income | 126,773 | |
Expenses | ||
Independent trustees' fees and expenses | $170 | |
Proxy | 78 | |
Commitment fees | 74 | |
Total expenses | 322 | |
Net investment income (loss) | 126,451 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 2,720,982 | |
Fidelity Central Funds | (40) | |
Foreign currency transactions | (906) | |
Written options | 2,761 | |
Total net realized gain (loss) | 2,722,797 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers (net of decrease in deferred foreign taxes of $6,491) | 16,701,078 | |
Fidelity Central Funds | (54) | |
Assets and liabilities in foreign currencies | 14 | |
Total change in net unrealized appreciation (depreciation) | 16,701,038 | |
Net gain (loss) | 19,423,835 | |
Net increase (decrease) in net assets resulting from operations | $19,550,286 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended January 31, 2021 (Unaudited) | Year ended July 31, 2020 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $126,451 | $225,164 |
Net realized gain (loss) | 2,722,797 | 143,570 |
Change in net unrealized appreciation (depreciation) | 16,701,038 | 14,913,409 |
Net increase (decrease) in net assets resulting from operations | 19,550,286 | 15,282,143 |
Distributions to shareholders | (1,559,042) | (196,937) |
Share transactions | ||
Proceeds from sales of shares | 38,754,286 | 37,477,878 |
Reinvestment of distributions | 1,559,042 | 196,937 |
Cost of shares redeemed | (15,512,463) | (17,266,806) |
Net increase (decrease) in net assets resulting from share transactions | 24,800,865 | 20,408,009 |
Total increase (decrease) in net assets | 42,792,109 | 35,493,215 |
Net Assets | ||
Beginning of period | 59,825,989 | 24,332,774 |
End of period | $102,618,098 | $59,825,989 |
Other Information | ||
Shares | ||
Sold | 1,599,964 | 2,290,467 |
Issued in reinvestment of distributions | 65,074 | 13,044 |
Redeemed | (645,184) | (1,084,183) |
Net increase (decrease) | 1,019,854 | 1,219,328 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Flex Large Cap Growth Fund
Six months ended (Unaudited) January 31, | Years endedJuly 31, | ||||
2021 | 2020 | 2019 | 2018 | 2017 A | |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $20.86 | $14.76 | $14.04 | $11.33 | $10.00 |
Income from Investment Operations | |||||
Net investment income (loss)B | .04 | .10 | .11 | .11C | .03 |
Net realized and unrealized gain (loss) | 5.96 | 6.12 | 1.06 | 2.69 | 1.30 |
Total from investment operations | 6.00 | 6.22 | 1.17 | 2.80 | 1.33 |
Distributions from net investment income | (.09) | (.12) | (.11) | (.06) | – |
Distributions from net realized gain | (.38) | – | (.35) | (.04) | – |
Total distributions | (.47) | (.12) | (.45)D | (.09)D | – |
Net asset value, end of period | $26.39 | $20.86 | $14.76 | $14.04 | $11.33 |
Total ReturnE,F | 29.02% | 42.45% | 8.66% | 24.90% | 13.30% |
Ratios to Average Net AssetsG,H | |||||
Expenses before reductionsI | - %J | -% | -% | -% | - %J |
Expenses net of fee waivers, if anyI | - %J | -% | -% | -% | - %J |
Expenses net of all reductionsI | - %J | -% | -% | -% | - %J |
Net investment income (loss) | .32%J | .62% | .83% | .87%C | .79%J |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $102,618 | $59,826 | $24,333 | $14,641 | $8,576 |
Portfolio turnover rateK | 42%J | 70% | 55% | 65% | 17%L |
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 one or more large, non-recurring dividend(s) which amounted to $.01 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been .77%.
D Total distributions per share do not sum due to rounding.
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment advisor, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
I Amount represents less than .005%.
J Annualized
K Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
L Amount not annualized.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended January 31, 2021
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 and advisory programs 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 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 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 - Investment 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. Securities, including private placements or other restricted securities, for which observable inputs are not available are valued using alternate valuation approaches, including the market approach, the income approach and cost approach, and are categorized as Level 3 in the hierarchy. The market approach considers factors including the price of recent investments in the same or a similar security or financial metrics of comparable securities. The income approach considers factors including expected future cash flows, security specific risks and corresponding discount rates. The cost approach considers factors including the value of the security's underlying assets and liabilities.
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. Corporate bonds and preferred securities are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of January 31, 2021 is included at the end of the Fund's Schedule of Investments.
Foreign Currency. Certain Funds 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. 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. 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 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), 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 | $37,366,238 |
Gross unrealized depreciation | (992,131) |
Net unrealized appreciation (depreciation) | $36,374,107 |
Tax cost | $66,742,948 |
Delayed Delivery Transactions and When-Issued Securities. During the period, certain Funds 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. Securities purchased on a delayed delivery or when-issued basis are identified as such in the Schedule of Investments. Compensation for interest forgone in the purchase of a delayed delivery or when-issued debt security may be received. With respect to purchase commitments, each applicable Fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Payables and receivables associated with the purchases and sales of delayed delivery securities having the same coupon, settlement date and broker are offset. Delayed delivery or when-issued securities that have been purchased from and sold to different brokers are reflected as both payables and receivables in the Statement of Assets and Liabilities under the caption "Delayed delivery", as applicable. 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 (including Private Placements). 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. 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.
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 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".
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities are noted in the table below.
Purchases ($) | Sales ($) | |
Fidelity Flex Large Cap Growth Fund | 40,524,094 | 16,294,295 |
6. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company LLC (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. A portion of portfolio transactions were placed 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 as follows:
Amount | |
Fidelity Flex Large Cap Growth Fund | $1,207 |
Interfund Trades. Funds 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, and amounted to $3,606,758 and $1,013,780, respectively.
7. Committed Line of Credit.
Certain Funds participate 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 participating funds have agreed to pay commitment fees on their pro-rata portion of the line of credit, which are reflected in Miscellaneous expenses on the Statement of Operations, and are listed below. Effective during January 2021, commitment fees are borne by the investment advisor.
Amount | |
Fidelity Flex Large Cap Growth Fund | $74 |
During the period, there were no borrowings on this line of credit.
8. Security Lending.
Funds lend portfolio securities through a lending agent from time to time in order to earn additional income. A fund may lend securities to certain qualified borrowers, including NFS. On the settlement date of the loan, a 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 a fund and any additional required collateral is delivered to a 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, a fund may apply collateral received from the borrower against the obligation. A 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. Any loaned securities are identified as such in the Schedule of Investments, and the value of loaned securities and cash collateral at period end, as applicable, are presented in the 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.
Security Lending Income From Securities Loaned to NFS | Value of Securities Loaned to NFS at Period End | |
Fidelity Flex Large Cap Growth Fund | $– | $– |
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.
10. Coronavirus (COVID-19) Pandemic.
An outbreak of COVID-19 first detected in China during December 2019 has since spread globally and was declared a pandemic by the World Health Organization during March 2020. Developments that disrupt global economies and financial markets, such as the COVID-19 pandemic, may magnify factors that affect the Fund's performance.
Shareholder Expense Example
As a shareholder, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or redemption proceeds, as applicable and (2) ongoing costs, which generally include 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 a fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2020 to January 31, 2021).
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 for a class/Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. If any fund is a shareholder of any underlying mutual funds or exchange-traded funds (ETFs) (the Underlying Funds), such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses incurred presented in the table. These fees and expenses are not included in the 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 actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the 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. If any fund is a shareholder of any Underlying Funds, such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses as presented in the table. These fees and expenses are not included in the 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 August 1, 2020 | Ending Account Value January 31, 2021 | Expenses Paid During Period-B August 1, 2020 to January 31, 2021 | |
Fidelity Flex Large Cap Growth Fund | - %-C | |||
Actual | $1,000.00 | $1,290.20 | $-D | |
Hypothetical-E | $1,000.00 | $1,025.21 | $-D |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/ 365 (to reflect the one-half year period). The fees and expenses of any Underlying Funds are not included in each annualized expense ratio.
C Amount represents less than .005%.
D Amount represents less than $.005.
E 5% return per year before expenses
Board Approval of Investment Advisory Contracts
Fidelity Flex Large Cap Growth Fund
At its January 2021 meeting, the Board of Trustees, including the Independent Trustees (together, the Board), voted to continue the management contract with Fidelity Management & Research Company LLC (FMR), and the sub-advisory agreements and sub-subadvisory agreements, in each case, where applicable (together, the Advisory Contracts) for the fund for four months from February 1, 2021 through May 31, 2021, in connection with changes to the Board's meeting calendar.The Board considered that the approval of the fund's Advisory Contracts will not result in any changes in (i) the investment process or strategies employed in the management of the fund's assets; (ii) the fees and expenses paid by shareholders; (iii) the nature, extent or quality of services provided under the fund's Advisory Contracts; or (iv) the day-to-day management of the fund or the persons primarily responsible for such management. The Board also considered that since its last approval of the fund's Advisory Contracts, FMR had provided additional information on the fund in support of the annual contract renewal process, including competitive analyses on total expenses and management fees and in-depth reviews of fund performance and fund profitability information. The Board also considered the findings of certain ad hoc committees that had been previously formed to discuss matters relevant to all of the Fidelity funds, including economies of scale, fall-out benefits and retail vs. institutional funds. The Board concluded that the fund's Advisory Contracts are fair and reasonable, and that the fund's Advisory Contracts should be renewed, without modification, through May 31, 2021, with the understanding that the Board will consider the annual renewal for a full one year period in May 2021.In connection with its consideration of future renewals of the fund's Advisory Contracts, the Board will consider: (i) the nature, extent and quality of services provided to the funds, including shareholder and administrative services and investment performance; (ii) the competitiveness of the management fee and total expenses for the fund; (iii) the costs of the services and profitability, including the revenues earned and the expenses incurred in conducting the business of developing, marketing, distributing, managing, administering, and servicing the fund and its shareholders, to the extent applicable; and (iv) whether there have been economies of scale in respect of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is the potential for realization of any further economies.Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board ultimately concluded that the fund's management fee structure is fair and reasonable, and that the continuation of the fund's Advisory Contracts should be approved for four months from February 1, 2021 through May 31, 2021.ZLG-SANN-0321
1.9881574.103
Fidelity® Blue Chip Growth K6 Fund
Semi-Annual Report
January 31, 2021
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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 1-800-835-5092 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. © 2021 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.
Note to Shareholders:
Early in 2020, the outbreak and spread of a new coronavirus emerged as a public health emergency that had a major influence on financial markets, primarily based on its impact on the global economy and the outlook for corporate earnings. The virus causes a respiratory disease known as COVID-19. On March 11, the World Health Organization declared the COVID-19 outbreak a pandemic, citing sustained risk of further global spread.
In the weeks following, as the crisis worsened, we witnessed an escalating human tragedy with wide-scale social and economic consequences from coronavirus-containment measures. The outbreak of COVID-19 prompted a number of measures to limit the spread, including travel and border restrictions, quarantines, and restrictions on large gatherings. In turn, these resulted in lower consumer activity, diminished demand for a wide range of products and services, disruption in manufacturing and supply chains, and – given the wide variability in outcomes regarding the outbreak – significant market uncertainty and volatility. Amid the turmoil, global governments and central banks took unprecedented action to help support consumers, businesses, and the broader economies, and to limit disruption to financial systems.
The situation continues to unfold, and the extent and duration of its impact on financial markets and the economy remain highly uncertain. Extreme events such as the coronavirus crisis are “exogenous shocks” that can have significant adverse effects on mutual funds and their investments. Although multiple asset classes may be affected by market disruption, the duration and impact may not be the same for all types of assets.
Fidelity is committed to helping you stay informed amid news about COVID-19 and during increased market volatility, and we’re taking extra steps to be responsive to customer needs. We encourage you to visit our websites, where we offer ongoing updates, commentary, and analysis on the markets and our funds.
Investment Summary (Unaudited)
Top Ten Stocks as of January 31, 2021
% of fund's net assets | |
Apple, Inc. | 9.5 |
Amazon.com, Inc. | 7.4 |
Microsoft Corp. | 5.9 |
Alphabet, Inc. Class A | 4.9 |
Tesla, Inc. | 4.1 |
Facebook, Inc. Class A | 3.7 |
NVIDIA Corp. | 3.3 |
Marvell Technology Group Ltd. | 2.7 |
Salesforce.com, Inc. | 1.9 |
Uber Technologies, Inc. | 1.9 |
45.3 |
Top Five Market Sectors as of January 31, 2021
% of fund's net assets | |
Information Technology | 36.3 |
Consumer Discretionary | 31.0 |
Communication Services | 14.4 |
Health Care | 7.6 |
Industrials | 5.7 |
Asset Allocation (% of fund's net assets)
As of January 31, 2021* | ||
Stocks | 99.0% | |
Convertible Securities | 0.8% | |
Short-Term Investments and Net Other Assets (Liabilities) | 0.2% |
* Foreign investments - 13.7%
Schedule of Investments January 31, 2021 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.8% | |||
Shares | Value | ||
COMMUNICATION SERVICES - 14.4% | |||
Entertainment - 4.0% | |||
Activision Blizzard, Inc. | 336,122 | $30,587,102 | |
Bilibili, Inc. ADR (a) | 33,310 | 3,793,676 | |
Madison Square Garden Entertainment Corp. (a) | 58,914 | 5,228,618 | |
Motorsport Games, Inc. Class A | 23,100 | 697,158 | |
Netflix, Inc. (a) | 137,458 | 73,181,265 | |
Nintendo Co. Ltd. | 1,995 | 1,148,393 | |
Nintendo Co. Ltd. ADR | 17,704 | 1,279,468 | |
Playtika Holding Corp. | 35,400 | 1,031,556 | |
Roku, Inc. Class A (a) | 50,246 | 19,547,201 | |
Sea Ltd. ADR (a) | 325,209 | 70,476,042 | |
Skillz, Inc. (b) | 183,003 | 5,054,543 | |
The Walt Disney Co. | 27,392 | 4,606,513 | |
216,631,535 | |||
Interactive Media & Services - 10.2% | |||
Alphabet, Inc. Class A (a) | 144,985 | 264,939,790 | |
Facebook, Inc. Class A (a) | 774,480 | 200,071,418 | |
InterActiveCorp (a) | 5,400 | 1,133,730 | |
Match Group, Inc. (a) | 111,871 | 15,646,278 | |
Pinterest, Inc. Class A (a) | 45,026 | 3,084,731 | |
Snap, Inc. Class A (a) | 444,661 | 23,540,353 | |
Tencent Holdings Ltd. | 367,934 | 32,784,137 | |
Yandex NV Series A (a) | 31,283 | 1,959,567 | |
Zillow Group, Inc. Class C (a)(c) | 17,226 | 2,247,304 | |
Zoominfo Technologies, Inc. | 133,135 | 6,391,811 | |
551,799,119 | |||
Wireless Telecommunication Services - 0.2% | |||
T-Mobile U.S., Inc. | 105,822 | 13,342,038 | |
TOTAL COMMUNICATION SERVICES | 781,772,692 | ||
CONSUMER DISCRETIONARY - 30.5% | |||
Auto Components - 0.3% | |||
QuantumScape Corp. Class A (a) | 342,384 | 14,979,300 | |
Automobiles - 4.8% | |||
Fisker, Inc. (a)(c) | 67,080 | 1,008,212 | |
General Motors Co. | 43,200 | 2,189,376 | |
Harley-Davidson, Inc. | 230,317 | 9,233,409 | |
Hyundai Motor Co. | 5,890 | 1,206,028 | |
Kia Motors Corp. | 17,860 | 1,317,474 | |
Li Auto, Inc. ADR (a) | 28,408 | 916,158 | |
Lordstown Motors Corp. (b) | 326,146 | 8,212,356 | |
Lordstown Motors Corp. (a) | 26,887 | 677,015 | |
Neutron Holdings, Inc. warrants (a)(b)(d) | 491,550 | 5 | |
NIO, Inc. sponsored ADR (a) | 21,449 | 1,222,593 | |
Niu Technologies ADR (a)(c) | 92,602 | 4,049,485 | |
Rad Power Bikes, Inc. (b)(d) | 101,681 | 490,493 | |
Tesla, Inc. (a) | 280,270 | 222,402,653 | |
XPeng, Inc. ADR (a)(c) | 197,009 | 9,491,894 | |
262,417,151 | |||
Distributors - 0.1% | |||
InPost SA | 125,300 | 3,010,745 | |
Diversified Consumer Services - 0.1% | |||
Bright Horizons Family Solutions, Inc. (a) | 40,440 | 6,145,667 | |
FSN E-Commerce Ventures Pvt Ltd. (b)(d) | 20,980 | 1,744,847 | |
7,890,514 | |||
Hotels, Restaurants & Leisure - 3.7% | |||
Airbnb, Inc. Class A | 98,946 | 18,169,454 | |
Boyd Gaming Corp. | 167,667 | 7,571,842 | |
Caesars Entertainment, Inc. (a) | 340,572 | 23,972,863 | |
Chipotle Mexican Grill, Inc. (a) | 17,790 | 26,329,200 | |
Churchill Downs, Inc. | 49,611 | 9,299,582 | |
DraftKings, Inc. Class A (a) | 21,453 | 1,160,822 | |
Evolution Gaming Group AB (e) | 36,486 | 3,561,143 | |
Flutter Entertainment PLC | 5,337 | 996,327 | |
Hilton Worldwide Holdings, Inc. | 60,581 | 6,142,308 | |
Kambi Group PLC (a) | 56,960 | 3,190,082 | |
Las Vegas Sands Corp. | 134,488 | 6,467,528 | |
Marriott International, Inc. Class A | 87,877 | 10,220,974 | |
MGM Resorts International | 219,142 | 6,258,696 | |
Norwegian Cruise Line Holdings Ltd. (a)(c) | 116,884 | 2,647,423 | |
Penn National Gaming, Inc. (a) | 434,988 | 45,116,955 | |
Planet Fitness, Inc. (a) | 75,017 | 5,401,224 | |
Rush Street Interactive, Inc. (b) | 108,600 | 1,973,262 | |
SeaWorld Entertainment, Inc. (a) | 55,029 | 1,572,179 | |
Texas Roadhouse, Inc. Class A | 70,965 | 5,408,243 | |
Vail Resorts, Inc. | 26,181 | 6,963,099 | |
Wynn Resorts Ltd. | 76,815 | 7,645,397 | |
200,068,603 | |||
Household Durables - 1.0% | |||
D.R. Horton, Inc. | 41,617 | 3,196,186 | |
KB Home | 60,690 | 2,527,132 | |
Lennar Corp. Class A | 55,879 | 4,646,339 | |
Purple Innovation, Inc. (a) | 120,563 | 4,103,965 | |
Sonos, Inc. (a) | 46,628 | 1,219,322 | |
Sony Corp. sponsored ADR | 51,969 | 4,973,953 | |
Taylor Morrison Home Corp. (a) | 224,536 | 5,833,445 | |
Tempur Sealy International, Inc. (a) | 167,892 | 4,432,349 | |
Toll Brothers, Inc. | 113,571 | 5,803,478 | |
TRI Pointe Homes, Inc. (a) | 293,624 | 5,931,205 | |
Tupperware Brands Corp. (a) | 452,697 | 13,617,126 | |
56,284,500 | |||
Internet & Direct Marketing Retail - 11.7% | |||
Alibaba Group Holding Ltd. sponsored ADR (a) | 186,728 | 47,397,168 | |
Amazon.com, Inc. (a) | 125,372 | 401,967,706 | |
BHG Group AB (a) | 34,292 | 643,465 | |
ContextLogic, Inc. | 28,620 | 774,543 | |
ContextLogic, Inc. | 29,016 | 872,511 | |
Delivery Hero AG (a)(e) | 17,732 | 2,700,593 | |
Doordash, Inc. (c) | 23,106 | 4,465,697 | |
eBay, Inc. | 129,542 | 7,320,418 | |
Etsy, Inc. (a) | 43,924 | 8,744,829 | |
Expedia, Inc. | 113,075 | 14,032,608 | |
Farfetch Ltd. Class A (a) | 170,475 | 10,439,889 | |
Fiverr International Ltd. (a)(c) | 9,851 | 2,034,330 | |
JD Health International, Inc. (e) | 161,953 | 3,187,570 | |
JD.com, Inc.: | |||
Class A | 35,794 | 1,587,315 | |
sponsored ADR (a) | 113,576 | 10,073,055 | |
Jumia Technologies AG ADR (a) | 157,528 | 9,065,736 | |
Kogan.Com Ltd. | 96,193 | 1,322,544 | |
MercadoLibre, Inc. (a) | 12,424 | 22,108,632 | |
Ocado Group PLC (a) | 79,305 | 3,017,481 | |
Ozon Holdings PLC ADR | 20,344 | 983,429 | |
Pinduoduo, Inc. ADR (a) | 299,473 | 49,625,671 | |
Poshmark, Inc. (c) | 15,100 | 1,053,678 | |
The Booking Holdings, Inc. (a) | 605 | 1,176,320 | |
The RealReal, Inc. (a) | 303,949 | 7,197,512 | |
THG PLC | 165,719 | 1,637,102 | |
Wayfair LLC Class A (a) | 69,987 | 19,058,860 | |
Zomato Pvt Ltd. (b)(d)(f) | 81 | 433,571 | |
632,922,233 | |||
Leisure Products - 0.2% | |||
Bafang Electric Suzhou Co. Ltd. (A Shares) | 17,200 | 556,453 | |
Peloton Interactive, Inc. Class A (a) | 29,731 | 4,344,591 | |
Vista Outdoor, Inc. (a) | 117,676 | 3,432,609 | |
8,333,653 | |||
Multiline Retail - 0.7% | |||
Dollar Tree, Inc. (a) | 97,803 | 9,942,653 | |
Nordstrom, Inc. (c) | 330,066 | 11,700,840 | |
Ollie's Bargain Outlet Holdings, Inc. (a) | 86,510 | 8,195,092 | |
Target Corp. | 46,858 | 8,489,264 | |
38,327,849 | |||
Specialty Retail - 4.5% | |||
Academy Sports & Outdoors, Inc. | 22,300 | 479,450 | |
American Eagle Outfitters, Inc. (c) | 898,315 | 20,382,767 | |
Aritzia LP (a) | 152,996 | 3,182,556 | |
Blink Charging Co. (a) | 4,800 | 237,264 | |
Burlington Stores, Inc. (a) | 44,761 | 11,141,013 | |
Carvana Co. Class A (a)(c) | 172,421 | 45,034,641 | |
Cazoo Holdings Ltd. (b)(d) | 35,514 | 517,007 | |
Dick's Sporting Goods, Inc. | 45,524 | 3,050,563 | |
Driven Brands Holdings, Inc. | 39,700 | 1,115,570 | |
Five Below, Inc. (a) | 83,860 | 14,736,718 | |
Floor & Decor Holdings, Inc. Class A (a) | 183,465 | 16,891,623 | |
Gap, Inc. | 49,600 | 1,004,400 | |
L Brands, Inc. | 29,800 | 1,214,648 | |
Lowe's Companies, Inc. | 416,070 | 69,421,280 | |
Petco Health & Wellness Co., Inc. | 48,800 | 1,270,264 | |
RH (a)(c) | 64,736 | 30,772,905 | |
Shift Technologies, Inc. Class A (a) | 103,803 | 851,185 | |
The Home Depot, Inc. | 59,941 | 16,233,222 | |
Ulta Beauty, Inc. (a) | 6,043 | 1,690,590 | |
Vroom, Inc. | 73,377 | 2,702,475 | |
241,930,141 | |||
Textiles, Apparel & Luxury Goods - 3.4% | |||
Allbirds, Inc. (a)(b)(d) | 11,760 | 135,946 | |
Burberry Group PLC | 110,686 | 2,606,216 | |
Capri Holdings Ltd. (a) | 473,260 | 19,716,012 | |
Crocs, Inc. (a) | 300,369 | 21,031,837 | |
Deckers Outdoor Corp. (a) | 49,390 | 14,420,892 | |
Dr. Martens Ltd. (a) | 258,900 | 1,596,293 | |
lululemon athletica, Inc. (a) | 131,202 | 43,123,473 | |
LVMH Moet Hennessy Louis Vuitton SE | 11,269 | 6,813,187 | |
Moncler SpA | 103,667 | 5,863,775 | |
NIKE, Inc. Class B | 345,031 | 46,092,691 | |
Puma AG | 31,523 | 3,090,218 | |
PVH Corp. | 155,001 | 13,215,385 | |
Tapestry, Inc. | 108,461 | 3,429,537 | |
Under Armour, Inc. Class A (sub. vtg.) (a) | 128,214 | 2,243,745 | |
183,379,207 | |||
TOTAL CONSUMER DISCRETIONARY | 1,649,543,896 | ||
CONSUMER STAPLES - 1.1% | |||
Beverages - 0.6% | |||
Boston Beer Co., Inc. Class A (a) | 12,185 | 11,172,305 | |
Celsius Holdings, Inc. (a)(c) | 39,500 | 2,109,300 | |
Constellation Brands, Inc. Class A (sub. vtg.) | 23,267 | 4,907,708 | |
Monster Beverage Corp. (a) | 128,579 | 11,164,515 | |
Nongfu Spring Co. Ltd. (H Shares) (a)(e) | 198,496 | 1,498,977 | |
30,852,805 | |||
Food & Staples Retailing - 0.1% | |||
Blink Health, Inc. Series A1 (b)(d) | 5,757 | 187,908 | |
Performance Food Group Co. (a) | 74,932 | 3,512,812 | |
Sweetgreen, Inc. warrants 1/21/26 (a)(b)(d) | 38,133 | 150,625 | |
Walgreens Boots Alliance, Inc. | 33,400 | 1,678,350 | |
Zur Rose Group AG (a) | 2,549 | 1,171,839 | |
6,701,534 | |||
Food Products - 0.2% | |||
Bunge Ltd. | 25,081 | 1,641,301 | |
Darling Ingredients, Inc. (a) | 40,932 | 2,538,193 | |
Freshpet, Inc. (a) | 11,782 | 1,641,350 | |
Village Farms International, Inc. (a) | 194,195 | 2,295,385 | |
8,116,229 | |||
Personal Products - 0.1% | |||
Herbalife Nutrition Ltd. (a) | 109,321 | 5,570,998 | |
Yatsen Holding Ltd. ADR | 17,827 | 342,100 | |
5,913,098 | |||
Tobacco - 0.1% | |||
JUUL Labs, Inc. Class A (a)(b)(d) | 23,134 | 1,521,523 | |
RLX Technology, Inc. ADR | 115,700 | 2,603,250 | |
Swedish Match Co. AB | 45,265 | 3,499,299 | |
7,624,072 | |||
TOTAL CONSUMER STAPLES | 59,207,738 | ||
ENERGY - 0.8% | |||
Energy Equipment & Services - 0.0% | |||
Schlumberger Ltd. | 146,789 | 3,260,184 | |
Oil, Gas & Consumable Fuels - 0.8% | |||
ConocoPhillips Co. | 87,336 | 3,496,060 | |
EOG Resources, Inc. | 64,859 | 3,305,215 | |
Hess Corp. | 27,226 | 1,469,659 | |
HollyFrontier Corp. | 37,100 | 1,055,866 | |
Neste Oyj | 7,755 | 548,478 | |
Occidental Petroleum Corp. | 67,813 | 1,360,329 | |
Pioneer Natural Resources Co. | 25,379 | 3,068,321 | |
Reliance Industries Ltd. | 782,242 | 19,775,606 | |
Reliance Industries Ltd. | 52,149 | 692,409 | |
Reliance Industries Ltd. sponsored GDR (e) | 46,801 | 2,372,811 | |
Renewable Energy Group, Inc. (a) | 20,960 | 1,878,016 | |
Suncor Energy, Inc. | 190,352 | 3,184,070 | |
Valero Energy Corp. | 9,300 | 524,799 | |
42,731,639 | |||
TOTAL ENERGY | 45,991,823 | ||
FINANCIALS - 1.2% | |||
Banks - 0.4% | |||
Citigroup, Inc. | 144,361 | 8,371,494 | |
Kotak Mahindra Bank Ltd. (a) | 72,602 | 1,706,884 | |
Wells Fargo & Co. | 349,658 | 10,447,781 | |
20,526,159 | |||
Capital Markets - 0.2% | |||
CarLotz, Inc. (b) | 120,038 | 1,127,877 | |
Goldman Sachs Group, Inc. | 11,986 | 3,250,244 | |
London Stock Exchange Group PLC | 17,884 | 2,123,101 | |
Morgan Stanley | 54,085 | 3,626,399 | |
Open Lending Corp. (a) | 34,552 | 1,253,892 | |
Star Peak Energy Transition Corp. Class A (a) | 17,400 | 471,540 | |
11,853,053 | |||
Consumer Finance - 0.3% | |||
Ally Financial, Inc. | 207,434 | 7,849,303 | |
Capital One Financial Corp. | 60,196 | 6,276,035 | |
14,125,338 | |||
Diversified Financial Services - 0.3% | |||
Ant International Co. Ltd. Class C (a)(b)(d) | 274,458 | 2,360,339 | |
ArcLight Clean Transition Corp. Class A (a)(c) | 44,900 | 1,076,253 | |
BTRS Holdings, Inc. (b) | 80,137 | 1,168,397 | |
Experience Investment Corp. Class A (a) | 149,047 | 2,198,443 | |
InterPrivate Acquisition Corp. (a) | 89,799 | 1,325,433 | |
Jaws Acquisition Corp. (a) | 126,488 | 1,645,609 | |
Northern Star Acquisition Corp. unit | 8,760 | 119,837 | |
Novus Capital Corp. (b) | 195,665 | 4,393,658 | |
Patria Investments Ltd. | 32,900 | 587,265 | |
14,875,234 | |||
Insurance - 0.0% | |||
eHealth, Inc. (a) | 12,707 | 608,030 | |
Goosehead Insurance | 12,831 | 1,714,222 | |
2,322,252 | |||
Thrifts & Mortgage Finance - 0.0% | |||
Housing Development Finance Corp. Ltd. | 65,160 | 2,126,509 | |
TOTAL FINANCIALS | 65,828,545 | ||
HEALTH CARE - 7.6% | |||
Biotechnology - 2.6% | |||
4D Molecular Therapeutics, Inc. | 30,412 | 1,288,252 | |
ACADIA Pharmaceuticals, Inc. (a) | 39,760 | 1,910,468 | |
Acceleron Pharma, Inc. (a) | 45,354 | 5,239,748 | |
ADC Therapeutics SA (a) | 43,072 | 1,230,567 | |
Agios Pharmaceuticals, Inc. (a) | 38,561 | 1,811,210 | |
Akouos, Inc. (a) | 25,617 | 407,823 | |
Allakos, Inc. (a) | 7,152 | 953,576 | |
Alnylam Pharmaceuticals, Inc. (a) | 83,524 | 12,568,692 | |
Annexon, Inc. (a) | 49,012 | 1,078,264 | |
Arcutis Biotherapeutics, Inc. (a) | 37,694 | 1,028,669 | |
Argenx SE ADR (a) | 7,769 | 2,276,472 | |
Ascendis Pharma A/S sponsored ADR (a) | 45,465 | 6,826,570 | |
Avidity Biosciences, Inc. | 21,613 | 494,505 | |
BeiGene Ltd. (a) | 52,696 | 1,292,040 | |
BeiGene Ltd. ADR (a) | 13,915 | 4,452,800 | |
BioAtla, Inc. | 14,904 | 655,329 | |
Biohaven Pharmaceutical Holding Co. Ltd. (a) | 5,036 | 429,168 | |
BioXcel Therapeutics, Inc. (a) | 7,383 | 341,981 | |
BridgeBio Pharma, Inc. (a)(c) | 12,827 | 728,061 | |
CareDx, Inc. (a) | 14,866 | 1,136,208 | |
Cibus Corp.: | |||
Series C (a)(b)(d)(g) | 133,810 | 239,679 | |
Series D (a)(b)(d)(g) | 134,400 | 168,000 | |
Cullinan Management, Inc. | 9,400 | 357,294 | |
FibroGen, Inc. (a) | 45,874 | 2,210,209 | |
Forma Therapeutics Holdings, Inc. | 28,358 | 1,095,470 | |
Fusion Pharmaceuticals, Inc. (a) | 28,675 | 324,028 | |
Generation Bio Co. | 70,946 | 1,868,008 | |
Gracell Biotechnologies, Inc. ADR | 27,000 | 559,440 | |
Invitae Corp. (a)(c) | 31,758 | 1,572,656 | |
Ionis Pharmaceuticals, Inc. (a) | 17,984 | 1,080,299 | |
Karuna Therapeutics, Inc. (a) | 17,685 | 1,754,883 | |
Kinnate Biopharma, Inc. | 16,918 | 554,910 | |
Kronos Bio, Inc. (c) | 35,959 | 988,513 | |
Kura Oncology, Inc. (a) | 27,492 | 823,385 | |
Mirati Therapeutics, Inc. (a) | 5,668 | 1,163,810 | |
Moderna, Inc. (a) | 8,300 | 1,437,228 | |
Natera, Inc. (a) | 10,776 | 1,149,153 | |
Neurocrine Biosciences, Inc. (a) | 51,744 | 5,678,904 | |
Novavax, Inc. (a) | 26,575 | 5,871,481 | |
Passage Bio, Inc. | 28,900 | 539,274 | |
Prelude Therapeutics, Inc. | 28,105 | 1,825,420 | |
Protagonist Therapeutics, Inc. (a) | 45,441 | 941,083 | |
Regeneron Pharmaceuticals, Inc. (a) | 60,331 | 30,397,171 | |
Relay Therapeutics, Inc. (a) | 30,510 | 1,512,686 | |
Revolution Medicines, Inc. | 35,879 | 1,511,941 | |
Sage Therapeutics, Inc. (a) | 48,501 | 3,911,606 | |
Scholar Rock Holding Corp. (a) | 10,577 | 631,024 | |
Seagen, Inc. (a) | 11,005 | 1,807,791 | |
Seer, Inc. | 14,802 | 923,645 | |
Shattuck Labs, Inc. | 21,052 | 1,044,390 | |
Silverback Therapeutics, Inc. | 31,319 | 1,375,530 | |
Taysha Gene Therapies, Inc. | 24,681 | 641,706 | |
TG Therapeutics, Inc. (a) | 25,177 | 1,215,294 | |
Turning Point Therapeutics, Inc. (a) | 58,586 | 7,351,957 | |
Twist Bioscience Corp. (a) | 4,432 | 729,241 | |
Vaxcyte, Inc. | 40,482 | 993,023 | |
Xencor, Inc. (a) | 35,298 | 1,614,884 | |
Zai Lab Ltd. ADR (a) | 50,336 | 8,057,284 | |
142,072,703 | |||
Health Care Equipment & Supplies - 2.2% | |||
Align Technology, Inc. (a) | 2,720 | 1,429,034 | |
Atricure, Inc. (a) | 6,822 | 397,245 | |
Axonics Modulation Technologies, Inc. (a) | 76,382 | 3,948,949 | |
CryoPort, Inc. (a) | 15,400 | 1,050,280 | |
Danaher Corp. | 47,585 | 11,317,616 | |
DexCom, Inc. (a) | 53,289 | 19,975,382 | |
Hologic, Inc. (a) | 71,231 | 5,679,248 | |
InMode Ltd. (a) | 53,370 | 3,141,358 | |
Insulet Corp. (a) | 30,445 | 8,134,295 | |
Intuitive Surgical, Inc. (a) | 51,925 | 38,821,207 | |
Novocure Ltd. (a) | 26,553 | 4,273,971 | |
Outset Medical, Inc. | 15,917 | 824,978 | |
Pulmonx Corp. | 4,936 | 279,970 | |
Shockwave Medical, Inc. (a) | 89,046 | 10,332,898 | |
Tandem Diabetes Care, Inc. (a) | 77,664 | 7,195,570 | |
116,802,001 | |||
Health Care Providers & Services - 0.6% | |||
1Life Healthcare, Inc. (a) | 91,277 | 4,618,616 | |
Alignment Healthcare Partners unit (b)(d) | 27,540 | 543,915 | |
Castle Biosciences, Inc. (a) | 8,761 | 585,498 | |
Cigna Corp. | 15,310 | 3,323,036 | |
Guardant Health, Inc. (a) | 55,192 | 8,582,356 | |
Humana, Inc. | 31,933 | 12,233,852 | |
Oak Street Health, Inc. (a) | 6,356 | 329,686 | |
Owens & Minor, Inc. | 39,994 | 1,163,026 | |
Surgery Partners, Inc. (a) | 38,300 | 1,427,824 | |
32,807,809 | |||
Health Care Technology - 0.2% | |||
American Well Corp. (c) | 47,842 | 1,694,085 | |
Certara, Inc. | 46,526 | 1,601,425 | |
GoodRx Holdings, Inc. (c) | 86,536 | 4,034,308 | |
MultiPlan Corp. (b) | 258,899 | 2,066,014 | |
MultiPlan Corp. warrants (a)(b) | 13,856 | 32,192 | |
9,428,024 | |||
Life Sciences Tools & Services - 0.9% | |||
10X Genomics, Inc. (a) | 33,040 | 5,654,796 | |
Avantor, Inc. (a) | 94,352 | 2,782,440 | |
Berkeley Lights, Inc. (a) | 17,165 | 1,235,880 | |
Bio-Rad Laboratories, Inc. Class A (a) | 3,627 | 2,081,064 | |
Eurofins Scientific SA (a) | 9,616 | 923,991 | |
Maravai LifeSciences Holdings, Inc. | 16,013 | 557,893 | |
Nanostring Technologies, Inc. (a) | 32,703 | 2,290,191 | |
Sotera Health Co. | 42,401 | 1,106,242 | |
Thermo Fisher Scientific, Inc. | 59,790 | 30,474,963 | |
47,107,460 | |||
Pharmaceuticals - 1.1% | |||
Antengene Corp. | 699,800 | 1,553,176 | |
Aphria, Inc. (a)(c) | 262,235 | 3,194,022 | |
Arvinas Holding Co. LLC (a) | 7,049 | 531,777 | |
Atea Pharmaceuticals, Inc. | 20,045 | 1,463,285 | |
Eli Lilly & Co. | 2,900 | 603,113 | |
Graybug Vision, Inc. | 50,026 | 1,533,297 | |
Hansoh Pharmaceutical Group Co. Ltd. (a)(e) | 215,213 | 1,176,930 | |
Harmony Biosciences Holdings, Inc. (a) | 17,143 | 614,748 | |
Horizon Therapeutics PLC (a) | 155,164 | 11,246,287 | |
Intra-Cellular Therapies, Inc. (a) | 64,947 | 2,088,046 | |
Nektar Therapeutics (a) | 88,551 | 1,744,455 | |
OptiNose, Inc. (a) | 94,694 | 376,882 | |
Roche Holding AG (participation certificate) | 9,633 | 3,324,465 | |
Zoetis, Inc. Class A | 206,726 | 31,887,486 | |
61,337,969 | |||
TOTAL HEALTH CARE | 409,555,966 | ||
INDUSTRIALS - 5.6% | |||
Aerospace & Defense - 0.2% | |||
Axon Enterprise, Inc. (a) | 46,688 | 7,664,302 | |
The Boeing Co. | 16,416 | 3,187,823 | |
10,852,125 | |||
Air Freight & Logistics - 0.2% | |||
FedEx Corp. | 53,651 | 12,626,226 | |
Airlines - 0.4% | |||
American Airlines Group, Inc. | 136,531 | 2,344,237 | |
Delta Air Lines, Inc. | 140,194 | 5,321,764 | |
JetBlue Airways Corp. (a) | 414,506 | 5,944,016 | |
Spirit Airlines, Inc. (a) | 109,281 | 2,834,749 | |
United Airlines Holdings, Inc. (a) | 63,507 | 2,539,645 | |
18,984,411 | |||
Building Products - 0.3% | |||
Builders FirstSource, Inc. (a) | 111,677 | 4,271,645 | |
Carrier Global Corp. | 142,727 | 5,494,990 | |
The AZEK Co., Inc. | 174,442 | 6,958,491 | |
Trane Technologies PLC | 6,546 | 938,369 | |
17,663,495 | |||
Commercial Services & Supplies - 0.0% | |||
Aker Carbon Capture A/S (a) | 4,700 | 9,767 | |
MYT Netherlands Parent BV ADR (c) | 59,700 | 1,965,324 | |
1,975,091 | |||
Construction & Engineering - 0.1% | |||
Dycom Industries, Inc. (a) | 68,811 | 5,583,325 | |
Quanta Services, Inc. | 21,554 | 1,518,910 | |
7,102,235 | |||
Electrical Equipment - 0.3% | |||
Ballard Power Systems, Inc. (a) | 15,700 | 536,469 | |
Bloom Energy Corp. Class A (a)(c) | 67,214 | 2,346,441 | |
Plug Power, Inc. (a)(c) | 47,300 | 2,987,941 | |
Sunrun, Inc. (a) | 127,772 | 8,850,766 | |
14,721,617 | |||
Industrial Conglomerates - 0.1% | |||
General Electric Co. | 701,388 | 7,490,824 | |
Machinery - 0.1% | |||
Caterpillar, Inc. | 8,240 | 1,506,602 | |
Deere & Co. | 11,256 | 3,250,733 | |
Desktop Metal, Inc. (a)(c) | 52,700 | 1,210,519 | |
5,967,854 | |||
Professional Services - 0.2% | |||
Boa Vista Servicos SA | 427,500 | 743,050 | |
Upwork, Inc. (a) | 188,760 | 7,824,102 | |
8,567,152 | |||
Road & Rail - 3.7% | |||
Lyft, Inc. (a) | 2,177,443 | 96,809,116 | |
Uber Technologies, Inc. (a) | 1,984,672 | 101,079,345 | |
197,888,461 | |||
TOTAL INDUSTRIALS | 303,839,491 | ||
INFORMATION TECHNOLOGY - 36.0% | |||
Communications Equipment - 0.0% | |||
F5 Networks, Inc. (a) | 3,000 | 587,850 | |
Electronic Equipment & Components - 0.4% | |||
908 Devices, Inc. | 3,223 | 177,620 | |
II-VI, Inc. (a) | 285,526 | 24,004,171 | |
24,181,791 | |||
IT Services - 3.9% | |||
Affirm Holdings, Inc. | 13,400 | 1,334,506 | |
Afterpay Ltd. (a) | 46,706 | 4,822,403 | |
Endava PLC ADR (a) | 32,162 | 2,542,728 | |
Liveramp Holdings, Inc. (a) | 7,000 | 529,970 | |
MongoDB, Inc. Class A (a) | 17,786 | 6,573,883 | |
PayPal Holdings, Inc. (a) | 313,182 | 73,381,674 | |
Repay Holdings Corp. (a) | 67,168 | 1,487,771 | |
Riskified Ltd. (a)(b)(d) | 32,650 | 375,475 | |
Riskified Ltd. warrants (a)(b)(d) | 273 | 0 | |
Shopify, Inc. Class A (a) | 24,535 | 26,751,832 | |
Snowflake Computing, Inc. | 13,499 | 3,677,803 | |
Snowflake Computing, Inc.: | |||
Class B (e) | 534 | 145,488 | |
Class B | 1,602 | 414,642 | |
Square, Inc. (a) | 141,671 | 30,595,269 | |
Twilio, Inc. Class A (a) | 88,359 | 31,758,875 | |
Visa, Inc. Class A | 128,948 | 24,919,201 | |
209,311,520 | |||
Semiconductors & Semiconductor Equipment - 9.8% | |||
Advanced Micro Devices, Inc. (a) | 392,477 | 33,611,730 | |
Allegro MicroSystems LLC (a)(c) | 28,406 | 793,096 | |
Ambarella, Inc. (a) | 16,100 | 1,519,196 | |
Array Technologies, Inc. | 267,651 | 10,909,455 | |
Cirrus Logic, Inc. (a) | 36,441 | 3,414,157 | |
Enphase Energy, Inc. (a) | 70,679 | 12,888,316 | |
First Solar, Inc. (a) | 32,133 | 3,185,987 | |
Lam Research Corp. | 7,051 | 3,412,331 | |
Lattice Semiconductor Corp. (a) | 67,451 | 2,705,460 | |
Marvell Technology Group Ltd. | 2,806,186 | 144,406,332 | |
MediaTek, Inc. | 73,000 | 2,280,354 | |
Microchip Technology, Inc. | 5,700 | 775,827 | |
Micron Technology, Inc. (a) | 460,862 | 36,071,669 | |
NVIDIA Corp. | 346,812 | 180,200,047 | |
NXP Semiconductors NV | 420,181 | 67,426,445 | |
ON Semiconductor Corp. (a) | 184,421 | 6,360,680 | |
SolarEdge Technologies, Inc. (a) | 23,328 | 6,726,162 | |
Synaptics, Inc. (a) | 18,035 | 1,789,433 | |
Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR | 38,771 | 4,711,452 | |
Universal Display Corp. | 27,760 | 6,407,563 | |
529,595,692 | |||
Software - 12.4% | |||
Adobe, Inc. (a) | 140,090 | 64,269,089 | |
Anaplan, Inc. (a) | 25,324 | 1,689,111 | |
Atlassian Corp. PLC (a) | 6,749 | 1,559,896 | |
Autodesk, Inc. (a) | 14,908 | 4,135,926 | |
Avalara, Inc. (a) | 20,404 | 3,060,600 | |
Bill.Com Holdings, Inc. (a) | 25,694 | 3,131,585 | |
Bird Rides, Inc. (d) | 168,354 | 1,331,680 | |
Cerence, Inc. (a)(c) | 17,484 | 1,956,634 | |
Cloudflare, Inc. (a) | 37,719 | 2,891,539 | |
Coupa Software, Inc. (a) | 14,407 | 4,464,297 | |
Crowdstrike Holdings, Inc. (a) | 53,968 | 11,646,294 | |
Digital Turbine, Inc. (a) | 45,132 | 2,582,002 | |
Docebo, Inc. (c) | 30,972 | 1,528,778 | |
DocuSign, Inc. (a) | 47,402 | 11,039,452 | |
Duck Creek Technologies, Inc. (a) | 22,900 | 1,106,986 | |
Elastic NV (a) | 65,902 | 10,014,468 | |
Epic Games, Inc. (b)(d) | 607 | 349,025 | |
FireEye, Inc. (a) | 48,641 | 1,021,461 | |
Five9, Inc. (a) | 17,286 | 2,873,798 | |
Freee KK (a) | 5,841 | 496,300 | |
HubSpot, Inc. (a) | 29,358 | 10,927,048 | |
Intuit, Inc. | 4,230 | 1,528,003 | |
Kuaishou Technology (a) | 51,700 | 766,840 | |
Lightspeed POS, Inc. (Canada) (a) | 155,935 | 10,137,147 | |
Microsoft Corp. | 1,374,608 | 318,854,072 | |
Nuance Communications, Inc. (a) | 158,430 | 7,214,902 | |
Palo Alto Networks, Inc. (a) | 3,021 | 1,059,616 | |
Paycom Software, Inc. (a) | 3,828 | 1,453,645 | |
Qualtrics International, Inc. | 26,100 | 1,148,400 | |
RingCentral, Inc. (a) | 24,490 | 9,132,811 | |
Salesforce.com, Inc. (a) | 464,811 | 104,842,769 | |
ServiceNow, Inc. (a) | 35,752 | 19,419,056 | |
Telos Corp. | 23,769 | 839,046 | |
The Trade Desk, Inc. (a) | 20,398 | 15,624,664 | |
Volue A/S | 125,898 | 705,513 | |
Workday, Inc. Class A (a) | 58,241 | 13,251,575 | |
Zoom Video Communications, Inc. Class A (a) | 64,190 | 23,883,173 | |
671,937,201 | |||
Technology Hardware, Storage & Peripherals - 9.5% | |||
Apple, Inc. | 3,903,665 | 515,127,619 | |
TOTAL INFORMATION TECHNOLOGY | 1,950,741,673 | ||
MATERIALS - 0.8% | |||
Chemicals - 0.6% | |||
Corteva, Inc. | 93,458 | 3,725,236 | |
LG Chemical Ltd. | 1,450 | 1,188,897 | |
Linde PLC | 8,862 | 2,174,735 | |
Nutrien Ltd. | 182,200 | 8,973,573 | |
Olin Corp. | 127,429 | 3,046,827 | |
PPG Industries, Inc. | 24,666 | 3,322,757 | |
The Chemours Co. LLC | 374,485 | 9,863,935 | |
The Mosaic Co. | 127,206 | 3,302,268 | |
35,598,228 | |||
Metals & Mining - 0.2% | |||
Anglo American PLC (United Kingdom) | 46,831 | 1,548,955 | |
ArcelorMittal SA Class A unit (a) | 177,003 | 3,821,495 | |
Freeport-McMoRan, Inc. | 133,650 | 3,596,522 | |
Gatos Silver, Inc. | 101,837 | 1,345,267 | |
10,312,239 | |||
TOTAL MATERIALS | 45,910,467 | ||
REAL ESTATE - 0.6% | |||
Equity Real Estate Investment Trusts (REITs) - 0.1% | |||
Park Hotels & Resorts, Inc. | 10,605 | 176,891 | |
Simon Property Group, Inc. | 79,778 | 7,413,770 | |
7,590,661 | |||
Real Estate Management & Development - 0.5% | |||
KE Holdings, Inc. ADR (a) | 95,253 | 5,629,452 | |
Opendoor Technologies, Inc. (a)(c) | 57,626 | 1,505,191 | |
Realogy Holdings Corp. (a) | 113,600 | 1,613,120 | |
Redfin Corp. (a) | 226,746 | 16,146,583 | |
24,894,346 | |||
TOTAL REAL ESTATE | 32,485,007 | ||
UTILITIES - 0.2% | |||
Electric Utilities - 0.0% | |||
PG&E Corp. (a) | 76,845 | 878,338 | |
Independent Power and Renewable Electricity Producers - 0.2% | |||
Brookfield Renewable Corp. | 30,975 | 1,736,538 | |
Shoals Technologies Group, Inc. | 81,900 | 2,778,867 | |
The AES Corp. | 114,610 | 2,795,338 | |
7,310,743 | |||
TOTAL UTILITIES | 8,189,081 | ||
TOTAL COMMON STOCKS | |||
(Cost $3,006,848,828) | 5,353,066,379 | ||
Preferred Stocks - 1.0% | |||
Convertible Preferred Stocks - 0.8% | |||
COMMUNICATION SERVICES - 0.0% | |||
Diversified Telecommunication Services - 0.0% | |||
Starry, Inc.: | |||
Series C (a)(b)(d) | 158,250 | 226,298 | |
Series D (a)(b)(d) | 553,263 | 791,166 | |
1,017,464 | |||
CONSUMER DISCRETIONARY - 0.3% | |||
Automobiles - 0.2% | |||
Rad Power Bikes, Inc.: | |||
Series A (b)(d) | 13,256 | 63,945 | |
Series C (b)(d) | 52,162 | 251,621 | |
Rivian Automotive, Inc.: | |||
Series E (b)(d) | 225,415 | 8,306,543 | |
Series F (b)(d) | 110,275 | 4,063,634 | |
12,685,743 | |||
Hotels, Restaurants & Leisure - 0.0% | |||
Topgolf International, Inc. Series F (a)(b) | 9,181 | 214,652 | |
Internet & Direct Marketing Retail - 0.1% | |||
Instacart, Inc. Series H (b)(d) | 27,205 | 1,632,300 | |
The Honest Co., Inc. Series E (a)(b)(d) | 11,802 | 306,333 | |
Zomato Pvt Ltd.: | |||
Series B (b)(d)(f) | 3 | 16,058 | |
Series E (b)(d)(f) | 20,097 | 11 | |
Series G (b)(d)(f) | 2 | 10,705 | |
Series J7 (b)(d) | 119 | 636,975 | |
2,602,382 | |||
Specialty Retail - 0.0% | |||
Fanatics, Inc. Series E (b)(d) | 106,949 | 1,849,148 | |
Textiles, Apparel & Luxury Goods - 0.0% | |||
Allbirds, Inc.: | |||
Series A (a)(b)(d) | 4,640 | 53,638 | |
Series B (a)(b)(d) | 815 | 9,421 | |
Series C (a)(b)(d) | 7,790 | 90,052 | |
Series Seed (a)(b)(d) | 2,495 | 28,842 | |
181,953 | |||
TOTAL CONSUMER DISCRETIONARY | 17,533,878 | ||
CONSUMER STAPLES - 0.1% | |||
Food & Staples Retailing - 0.1% | |||
Blink Health, Inc. Series C (a)(b)(d) | 14,722 | 480,526 | |
Roofoods Ltd.: | |||
Series F (a)(b)(d) | 337 | 295,802 | |
Series H (b)(d) | 1,300 | 1,141,077 | |
Sweetgreen, Inc.: | |||
Series C (a)(b)(d) | 1,240 | 16,306 | |
Series D (a)(b)(d) | 19,947 | 262,303 | |
Series H (a)(b)(d) | 211,642 | 2,783,092 | |
Series I (a)(b)(d) | 47,013 | 618,221 | |
Series J (b)(d) | 38,133 | 501,449 | |
6,098,776 | |||
Food Products - 0.0% | |||
Agbiome LLC Series C (a)(b)(d) | 68,700 | 435,125 | |
Tobacco - 0.0% | |||
JUUL Labs, Inc. Series E (a)(b)(d) | 12,508 | 822,651 | |
TOTAL CONSUMER STAPLES | 7,356,552 | ||
FINANCIALS - 0.0% | |||
Diversified Financial Services - 0.0% | |||
Sonder Holdings, Inc. Series D1 (b)(d) | 47,507 | 511,503 | |
HEALTH CARE - 0.0% | |||
Biotechnology - 0.0% | |||
23andMe, Inc. Series F (a)(b)(d) | 6,504 | 112,844 | |
Nuvation Bio, Inc. Series A (a)(b) | 658,600 | 1,126,206 | |
1,239,050 | |||
INDUSTRIALS - 0.1% | |||
Aerospace & Defense - 0.1% | |||
Space Exploration Technologies Corp. Series N (b)(d) | 8,141 | 2,198,070 | |
INFORMATION TECHNOLOGY - 0.3% | |||
Electronic Equipment & Components - 0.0% | |||
Enevate Corp. Series E (b)(d) | 1,325,513 | 1,469,575 | |
IT Services - 0.1% | |||
ByteDance Ltd. Series E1 (b)(d) | 31,950 | 3,500,895 | |
Riskified Ltd.: | |||
Series D (b)(d) | 12,100 | 139,150 | |
Series E (a)(b)(d) | 32,500 | 373,750 | |
4,013,795 | |||
Software - 0.2% | |||
ACV Auctions, Inc.: | |||
Series E (a)(b)(d) | 76,518 | 453,300 | |
Series E1 (b)(d) | 127,066 | 752,752 | |
Compass, Inc. Series E (a)(b)(d) | 1,181 | 216,005 | |
DoubleVerify, Inc. Series A (b)(d) | 557,260 | 3,197,056 | |
Nuvia, Inc. Series B (b)(d) | 178,648 | 1,313,063 | |
UiPath, Inc.: | |||
Series A1 (a)(b)(d) | 29,817 | 1,856,876 | |
Series B1 (a)(b)(d) | 1,485 | 92,480 | |
Series B2 (a)(b)(d) | 7,398 | 460,716 | |
8,342,248 | |||
TOTAL INFORMATION TECHNOLOGY | 13,825,618 | ||
TOTAL CONVERTIBLE PREFERRED STOCKS | 43,682,135 | ||
Nonconvertible Preferred Stocks - 0.2% | |||
CONSUMER DISCRETIONARY - 0.2% | |||
Automobiles - 0.2% | |||
Neutron Holdings, Inc.: | |||
Series 1C (b)(d) | 3,178,083 | 63,562 | |
Series 1D (b)(d) | 5,904,173 | 118,083 | |
Volkswagen AG | 31,806 | 6,038,298 | |
Waymo LLC Series A2 (b)(d) | 7,817 | 671,224 | |
6,891,167 | |||
Specialty Retail - 0.0% | |||
Cazoo Holdings Ltd.: | |||
Series A (b)(d) | 1,159 | 16,873 | |
Series B (b)(d) | 20,299 | 295,510 | |
Series C (b)(d) | 412 | 5,998 | |
Series D (b)(d) | 72,515 | 1,055,662 | |
1,374,043 | |||
TOTAL CONSUMER DISCRETIONARY | 8,265,210 | ||
TOTAL PREFERRED STOCKS | |||
(Cost $44,002,211) | 51,947,345 | ||
Principal Amount | Value | ||
Convertible Bonds - 0.0% | |||
CONSUMER DISCRETIONARY - 0.0% | |||
Automobiles - 0.0% | |||
Neutron Holdings, Inc.: | |||
4% 5/22/27 (b)(d) | 237,400 | 237,400 | |
4% 6/12/27 (b)(d) | 64,200 | 64,200 | |
(Cost $301,600) | 301,600 | ||
Preferred Securities - 0.0% | |||
INFORMATION TECHNOLOGY - 0.0% | |||
Electronic Equipment & Components - 0.0% | |||
Enevate Corp. 0% 1/29/23 (b)(d) | |||
(Cost $564,345) | 564,345 | 564,345 | |
Shares | Value | ||
Money Market Funds - 1.5% | |||
Fidelity Cash Central Fund 0.09% (h) | 9,556,544 | 9,558,456 | |
Fidelity Securities Lending Cash Central Fund 0.09% (h)(i) | 68,864,710 | 68,871,597 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $78,430,053) | 78,430,053 | ||
TOTAL INVESTMENT IN SECURITIES - 101.3% | |||
(Cost $3,130,147,037) | 5,484,309,722 | ||
NET OTHER ASSETS (LIABILITIES) - (1.3)% | (68,400,328) | ||
NET ASSETS - 100% | $5,415,909,394 |
Legend
(a) Non-income producing
(b) Restricted securities (including private placements) - 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 $80,021,649 or 1.5% of net assets.
(c) Security or a portion of the security is on loan at period end.
(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 $14,643,512 or 0.3% of net assets.
(f) Security or a portion of the security purchased on a delayed delivery or when-issued basis.
(g) Investment is owned by a wholly-owned subsidiary (Subsidiary) that is treated as a corporation for U.S. tax purposes.
(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 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 |
ACV Auctions, Inc. Series E | 11/6/19 | $423,160 |
ACV Auctions, Inc. Series E1 | 9/4/20 | $752,752 |
Agbiome LLC Series C | 6/29/18 | $435,125 |
Alignment Healthcare Partners unit | 2/28/20 | $333,747 |
Allbirds, Inc. | 10/9/18 | $128,974 |
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 |
Allbirds, Inc. Series Seed | 10/9/18 | $27,363 |
Ant International Co. Ltd. Class C | 5/16/18 | $1,539,709 |
Blink Health, Inc. Series A1 | 12/30/20 | $155,957 |
Blink Health, Inc. Series C | 11/7/19 - 1/21/21 | $562,027 |
BTRS Holdings, Inc. | 1/12/21 | $801,370 |
ByteDance Ltd. Series E1 | 11/18/20 | $3,500,895 |
CarLotz, Inc. | 1/21/21 | $1,200,380 |
Cazoo Holdings Ltd. | 9/30/20 | $486,896 |
Cazoo Holdings Ltd. Series A | 9/30/20 | $15,890 |
Cazoo Holdings Ltd. Series B | 9/30/20 | $278,299 |
Cazoo Holdings Ltd. Series C | 9/30/20 | $5,649 |
Cazoo Holdings Ltd. Series D | 9/30/20 | $994,178 |
Cibus Corp. Series C | 2/16/18 | $281,001 |
Cibus Corp. Series D | 5/10/19 | 168,000 |
Compass, Inc. Series E | 11/3/17 | $79,692 |
DoubleVerify, Inc. Series A | 11/18/20 | $3,197,056 |
Enevate Corp. Series E | 1/29/21 | $1,469,576 |
Enevate Corp. 0% 1/29/23 | 1/29/21 | $564,345 |
Epic Games, Inc. | 7/30/20 | $349,025 |
Fanatics, Inc. Series E | 8/13/20 | $1,849,148 |
FSN E-Commerce Ventures Pvt Ltd. | 10/7/20 - 10/26/20 | $1,727,161 |
Instacart, Inc. Series H | 11/13/20 | $1,632,300 |
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 |
Lordstown Motors Corp. | 10/23/20 | $3,261,460 |
MultiPlan Corp. | 10/8/20 | $2,563,356 |
MultiPlan Corp. warrants | 10/8/20 | $0 |
Neutron Holdings, Inc. Series 1C | 7/3/18 | $581,081 |
Neutron Holdings, Inc. Series 1D | 1/25/19 | $1,431,762 |
Neutron Holdings, Inc. warrants | 6/4/20 | $0 |
Neutron Holdings, Inc. 4% 5/22/27 | 6/4/20 | $237,400 |
Neutron Holdings, Inc. 4% 6/12/27 | 6/12/20 | $64,200 |
Novus Capital Corp. | 1/29/21 | $1,956,650 |
Nuvation Bio, Inc. Series A | 6/17/19 | $508,030 |
Nuvia, Inc. Series B | 9/18/20 | $572,986 |
Rad Power Bikes, Inc. | 1/21/21 | $490,493 |
Rad Power Bikes, Inc. Series A | 1/21/21 | $63,945 |
Rad Power Bikes, Inc. Series C | 1/21/21 | $251,621 |
Riskified Ltd. | 12/20/19 - 4/15/20 | $295,211 |
Riskified Ltd. Series D | 11/18/20 | $139,150 |
Riskified Ltd. Series E | 10/28/19 | $309,218 |
Riskified Ltd. warrants | 10/28/19 | $0 |
Rivian Automotive, Inc. Series E | 7/10/20 | $3,491,678 |
Rivian Automotive, Inc. Series F | 1/19/21 | $4,063,634 |
Roofoods Ltd. Series F | 9/12/17 | $119,153 |
Roofoods Ltd. Series H | 1/15/21 | $1,141,077 |
Rush Street Interactive, Inc. | 12/29/20 | $1,086,000 |
Skillz, Inc. | 12/16/20 | $1,830,030 |
Sonder Holdings, Inc. Series D1 | 12/20/19 | $498,633 |
Space Exploration Technologies Corp. Series N | 8/4/20 | $2,198,070 |
Starry, Inc. Series C | 12/8/17 | $145,907 |
Starry, Inc. Series D | 3/6/19 - 7/30/20 | $791,166 |
Sweetgreen, Inc. warrants 1/21/26 | 1/21/21 | $0 |
Sweetgreen, Inc. Series C | 9/13/19 | $21,204 |
Sweetgreen, Inc. Series D | 9/13/19 | $341,094 |
Sweetgreen, Inc. Series H | 11/9/18 | $2,759,812 |
Sweetgreen, Inc. Series I | 9/13/19 | $803,922 |
Sweetgreen, Inc. Series J | 1/21/21 | $652,074 |
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 |
Waymo LLC Series A2 | 5/8/20 | $671,224 |
Zomato Pvt Ltd. | 1/22/21 - 1/29/21 | $333,487 |
Zomato Pvt Ltd. Series B | 1/22/21 | $12,341 |
Zomato Pvt Ltd. Series E | 1/22/21 | $8 |
Zomato Pvt Ltd. Series G | 1/22/21 | $8,227 |
Zomato Pvt Ltd. Series J7 | 12/9/20 | $484,684 |
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 | $25,698 |
Fidelity Securities Lending Cash Central Fund | 255,355 |
Total | $281,053 |
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 January 31, 2021, 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 | $782,790,156 | $747,840,162 | $33,932,530 | $1,017,464 |
Consumer Discretionary | 1,675,342,984 | 1,643,085,280 | 9,389,697 | 22,868,007 |
Consumer Staples | 66,564,290 | 57,347,682 | -- | 9,216,608 |
Energy | 45,991,823 | 45,991,823 | -- | -- |
Financials | 66,340,048 | 54,655,173 | 8,813,033 | 2,871,842 |
Health Care | 410,795,016 | 403,694,539 | 6,036,039 | 1,064,438 |
Industrials | 306,037,561 | 303,839,491 | -- | 2,198,070 |
Information Technology | 1,964,567,291 | 1,947,504,011 | 1,181,482 | 15,881,798 |
Materials | 45,910,467 | 45,910,467 | -- | -- |
Real Estate | 32,485,007 | 32,485,007 | -- | -- |
Utilities | 8,189,081 | 8,189,081 | -- | -- |
Corporate Bonds | 301,600 | -- | -- | 301,600 |
Preferred Securities | 564,345 | -- | -- | 564,345 |
Money Market Funds | 78,430,053 | 78,430,053 | -- | -- |
Total Investments in Securities: | $5,484,309,722 | $5,368,972,769 | $59,352,781 | $55,984,172 |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value:
Investments in Securities: | |
Beginning Balance | $24,442,248 |
Net Realized Gain (Loss) on Investment Securities | (1,664) |
Net Unrealized Gain (Loss) on Investment Securities | 5,558,815 |
Cost of Purchases | 27,303,505 |
Proceeds of Sales | -- |
Amortization/Accretion | -- |
Transfers into Level 3 | -- |
Transfers out of Level 3 | (1,318,732) |
Ending Balance | $55,984,172 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2021 | $5,558,815 |
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. Cost of purchases and proceeds of sales may include securities received and/or delivered through 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 | 86.3% |
Cayman Islands | 5.0% |
Bermuda | 2.8% |
Netherlands | 1.6% |
Canada | 1.2% |
Others (Individually Less Than 1%) | 3.1% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
January 31, 2021 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $66,858,340) — See accompanying schedule: Unaffiliated issuers (cost $3,051,716,984) | $5,405,879,669 | |
Fidelity Central Funds (cost $78,430,053) | 78,430,053 | |
Total Investment in Securities (cost $3,130,147,037) | $5,484,309,722 | |
Cash | 100,658 | |
Receivable for investments sold | 32,091,203 | |
Receivable for fund shares sold | 8,756,059 | |
Dividends receivable | 585,430 | |
Interest receivable | 7,957 | |
Distributions receivable from Fidelity Central Funds | 71,335 | |
Other receivables | 42,934 | |
Total assets | 5,525,965,298 | |
Liabilities | ||
Payable for investments purchased | ||
Regular delivery | $28,653,445 | |
Delayed delivery | 296,882 | |
Payable for fund shares redeemed | 9,348,588 | |
Accrued management fee | 2,050,118 | |
Other payables and accrued expenses | 832,546 | |
Collateral on securities loaned | 68,874,325 | |
Total liabilities | 110,055,904 | |
Net Assets | $5,415,909,394 | |
Net Assets consist of: | ||
Paid in capital | $2,926,138,676 | |
Total accumulated earnings (loss) | 2,489,770,718 | |
Net Assets | $5,415,909,394 | |
Net Asset Value, offering price and redemption price per share ($5,415,909,394 ÷ 221,130,577 shares) | $24.49 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended January 31, 2021 (Unaudited) | ||
Investment Income | ||
Dividends | $7,647,316 | |
Interest | 6,110 | |
Income from Fidelity Central Funds (including $255,355 from security lending) | 281,053 | |
Total income | 7,934,479 | |
Expenses | ||
Management fee | $10,740,915 | |
Independent trustees' fees and expenses | 10,574 | |
Interest | 644 | |
Miscellaneous | 4,584 | |
Total expenses before reductions | 10,756,717 | |
Expense reductions | (88,175) | |
Total expenses after reductions | 10,668,542 | |
Net investment income (loss) | (2,734,063) | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers (net of foreign taxes of $388) | 225,980,256 | |
Fidelity Central Funds | (1,448) | |
Foreign currency transactions | (24,380) | |
Futures contracts | 379,692 | |
Written options | 193,621 | |
Total net realized gain (loss) | 226,527,741 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers (net of decrease in deferred foreign taxes of $305,743) | 937,246,722 | |
Fidelity Central Funds | (2,238) | |
Assets and liabilities in foreign currencies | 1,648 | |
Total change in net unrealized appreciation (depreciation) | 937,246,132 | |
Net gain (loss) | 1,163,773,873 | |
Net increase (decrease) in net assets resulting from operations | $1,161,039,810 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended January 31, 2021 (Unaudited) | Year ended July 31, 2020 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $(2,734,063) | $5,168,405 |
Net realized gain (loss) | 226,527,741 | 46,383,648 |
Change in net unrealized appreciation (depreciation) | 937,246,132 | 1,006,344,065 |
Net increase (decrease) in net assets resulting from operations | 1,161,039,810 | 1,057,896,118 |
Distributions to shareholders | (67,572,204) | (7,277,415) |
Share transactions | ||
Proceeds from sales of shares | 1,372,344,532 | 1,251,912,257 |
Reinvestment of distributions | 67,572,204 | 7,277,415 |
Cost of shares redeemed | (971,822,812) | (745,697,227) |
Net increase (decrease) in net assets resulting from share transactions | 468,093,924 | 513,492,445 |
Total increase (decrease) in net assets | 1,561,561,530 | 1,564,111,148 |
Net Assets | ||
Beginning of period | 3,854,347,864 | 2,290,236,716 |
End of period | $5,415,909,394 | $3,854,347,864 |
Other Information | ||
Shares | ||
Sold | 61,194,730 | 81,637,907 |
Issued in reinvestment of distributions | 2,932,429 | 517,651 |
Redeemed | (42,465,844) | (50,035,938) |
Net increase (decrease) | 21,661,315 | 32,119,620 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Blue Chip Growth K6 Fund
Six months ended (Unaudited) January 31, | Years endedJuly 31, | ||||
2021 | 2020 | 2019 | 2018 | 2017 A | |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $19.32 | $13.69 | $12.79 | $10.32 | $10.00 |
Income from Investment Operations | |||||
Net investment income (loss)B | (.01) | .03 | .04 | .05C | –D |
Net realized and unrealized gain (loss) | 5.49 | 5.64 | .91 | 2.44 | .32 |
Total from investment operations | 5.48 | 5.67 | .95 | 2.49 | .32 |
Distributions from net investment income | (.02) | (.04) | (.05) | (.01) | – |
Distributions from net realized gain | (.29) | –D | – | –D | – |
Total distributions | (.31) | (.04) | (.05) | (.02)E | – |
Net asset value, end of period | $24.49 | $19.32 | $13.69 | $12.79 | $10.32 |
Total ReturnF,G | 28.45% | 41.55% | 7.48% | 24.10% | 3.20% |
Ratios to Average Net AssetsH,I | |||||
Expenses before reductions | .45%J | .45% | .45% | .45% | .45%J |
Expenses net of fee waivers, if any | .45%J | .45% | .45% | .45% | .45%J |
Expenses net of all reductions | .45%J | .45% | .45% | .45% | .45%J |
Net investment income (loss) | (.11)% | .19% | .34% | .45%C | (.24)%J |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $5,415,909 | $3,854,348 | $2,290,237 | $1,680,044 | $180,223 |
Portfolio turnover rateK | 49%J,L | 49%L | 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 one or more large, non-recurring dividend(s) which amounted to $.02 per share. Excluding such non-recurring dividend(s), 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 per share do not sum due to rounding.
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment advisor, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
J Annualized
K Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
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 (Unaudited)
For the period ended January 31, 2021
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 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 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 - Investment 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. Securities, including private placements or other restricted securities, for which observable inputs are not available are valued using alternate valuation approaches, including the market approach, the income approach and cost approach, and are categorized as Level 3 in the hierarchy. The market approach considers factors including the price of recent investments in the same or a similar security or financial metrics of comparable securities. The income approach considers factors including expected future cash flows, security specific risks and corresponding discount rates. The cost approach considers factors including the value of the security's underlying assets and liabilities.
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.
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 | $55,118,227 | Market comparable | Enterprise value/Sales multiple (EV/S) | 1.7 - 9.9 / 7.7 | Increase |
Discount rate | 40.5% - 69.1% / 48.6% | Decrease | |||
Premium rate | 1.3% - 20.0% / 8.1% | Increase | |||
Discount for lack of marketability | 10.0% | Decrease | |||
Conversion ratio | 1.0 | Increase | |||
Market approach | Transaction price | $0.00 - $5,352.73 / $166.69 | Increase | ||
Corporate Bonds | $301,600 | Market approach | Transaction price | $100.00 | Increase |
Preferred Securities | $564,345 | Market approach | Transaction price | $100.00 | 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 January 31, 2021, as well as a roll forward of Level 3 investments, is included at the end of the Fund's Schedule of Investments.
Foreign Currency. Certain Funds 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. 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 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 | $2,384,196,742 |
Gross unrealized depreciation | (41,431,803) |
Net unrealized appreciation (depreciation) | $2,342,764,939 |
Tax cost | $3,141,544,783 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of prior fiscal period end and is subject to adjustment.
No expiration | |
Short-term | $(10,476,973) |
Total capital loss carryforward | $(10,476,973) |
Delayed Delivery Transactions and When-Issued Securities. During the period, certain Funds 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. Securities purchased on a delayed delivery or when-issued basis are identified as such in the Schedule of Investments. Compensation for interest forgone in the purchase of a delayed delivery or when-issued debt security may be received. With respect to purchase commitments, each applicable Fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Payables and receivables associated with the purchases and sales of delayed delivery securities having the same coupon, settlement date and broker are offset. Delayed delivery or when-issued securities that have been purchased from and sold to different brokers are reflected as both payables and receivables in the Statement of Assets and Liabilities under the caption "Delayed delivery", as applicable. 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 (including Private Placements). 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 Funds included in the table below hold certain investments through a wholly-owned subsidiary ("Subsidiary"), which may be subject to federal and state taxes upon disposition.
As of period end, investments in Subsidiaries were as follows:
$ Amount | % of Net Assets | |
Fidelity Blue Chip Growth K6 Fund | 407,679 | .01 |
The financial statements have been consolidated to include the Subsidiary accounts where applicable. Accordingly, all inter-company transactions and balances have been eliminated.
At period end, any estimated tax liability for these investments is presented as "Deferred taxes" in the Statement of Assets and Liabilities and included in "Change in net unrealized appreciation (depreciation) on investment securities" in the Statement of Operations. The tax liability incurred may differ materially depending on conditions when these investments are disposed. Any cash held by a Subsidiary is restricted as to its use and is presented as "Restricted cash" in the Statement of Assets and Liabilities, if applicable.
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 and 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. Counterparty credit risk related to exchange-traded futures contracts and 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.
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.
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 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".
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and in-kind transactions, are noted in the table below.
Purchases ($) | Sales ($) | |
Fidelity Blue Chip Growth K6 Fund | 1,435,534,083 | 1,128,648,313 |
Unaffiliated Exchanges In-Kind. During the period, the Fund received investments and cash valued at $110,043,215 in exchange for 4,994,541 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 $195,181,806 in exchange for 11,803,131 shares of the Fund. The amount of in-kind exchanges is included in share transactions in the accompanying Statement of Changes in Net Assets.
6. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company LLC (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. A portion of portfolio transactions were placed 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 as follows:
Amount | |
Fidelity Blue Chip Growth K6 Fund | $22,708 |
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 LLC (FMR), or other affiliated entities of FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the Fund to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. 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 | |
Fidelity Blue Chip Growth K6 Fund | Borrower | $35,126,500 | .33% | $644 |
Interfund Trades. Funds 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, and amounted to $102,983,540 and $74,642,806, respectively.
7. Committed Line of Credit.
Certain Funds participate 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 participating funds have agreed to pay commitment fees on their pro-rata portion of the line of credit, which are reflected in Miscellaneous expenses on the Statement of Operations, and are listed below. Effective during January 2021, commitment fees are borne by the investment advisor.
Amount | |
Fidelity Blue Chip Growth K6 Fund | $4,584 |
During the period, there were no borrowings on this line of credit.
8. Security Lending.
Funds lend portfolio securities from time to time in order to earn additional income. Lending agents are used, including National Financial Services (NFS), an affiliate of the investment adviser. Pursuant to a securities lending agreement, NFS will receive a fee, which is capped at 9.9% of a fund's daily lending revenue, for its services as lending agent. A fund may lend securities to certain qualified borrowers, including NFS. On the settlement date of the loan, a 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 a fund and any additional required collateral is delivered to a fund on the next business day. A 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, a fund may apply collateral received from the borrower against the obligation. A 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. Any loaned securities are identified as such in the Schedule of Investments, and the value of loaned securities and cash collateral at period end, as applicable, are presented in the 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. Affiliated security lending activity, if any, was as follows:
Total Security Lending Income Fees Paid to NFS | Security Lending Income From Securities Loaned to NFS | Value of Securities Loaned to NFS at Period End | |
Fidelity Blue Chip Growth K6 Fund | $33,040 | $954 | $– |
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 expenses. This amount totaled $88,142 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 by $33.
10. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
11. Coronavirus (COVID-19) Pandemic.
An outbreak of COVID-19 first detected in China during December 2019 has since spread globally and was declared a pandemic by the World Health Organization during March 2020. Developments that disrupt global economies and financial markets, such as the COVID-19 pandemic, may magnify factors that affect the Fund's performance.
Shareholder Expense Example
As a shareholder, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or redemption proceeds, as applicable and (2) ongoing costs, which generally include 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 a fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2020 to January 31, 2021).
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 for a class/Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. If any fund is a shareholder of any underlying mutual funds or exchange-traded funds (ETFs) (the Underlying Funds), such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses incurred presented in the table. These fees and expenses are not included in the 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 actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the 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. If any fund is a shareholder of any Underlying Funds, such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses as presented in the table. These fees and expenses are not included in the 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 August 1, 2020 | Ending Account Value January 31, 2021 | Expenses Paid During Period-B August 1, 2020 to January 31, 2021 | |
Fidelity Blue Chip Growth K6 Fund | .45% | |||
Actual | $1,000.00 | $1,284.50 | $2.59 | |
Hypothetical-C | $1,000.00 | $1,022.94 | $2.29 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/ 365 (to reflect the one-half year period). The fees and expenses of any Underlying Funds are not included in each annualized expense ratio.
C 5% return per year before expenses
Board Approval of Investment Advisory Contracts
Fidelity Blue Chip Growth K6 Fund
At its January 2021 meeting, the Board of Trustees, including the Independent Trustees (together, the Board), voted to continue the management contract with Fidelity Management & Research Company LLC (FMR), and the sub-advisory agreements and sub-subadvisory agreements, in each case, where applicable (together, the Advisory Contracts) for the fund for four months from February 1, 2021 through May 31, 2021, in connection with changes to the Board's meeting calendar.The Board considered that the approval of the fund's Advisory Contracts will not result in any changes in (i) the investment process or strategies employed in the management of the fund's assets; (ii) the fees and expenses paid by shareholders; (iii) the nature, extent or quality of services provided under the fund's Advisory Contracts; or (iv) the day-to-day management of the fund or the persons primarily responsible for such management. The Board also considered that since its last approval of the fund's Advisory Contracts, FMR had provided additional information on the fund in support of the annual contract renewal process, including competitive analyses on total expenses and management fees and in-depth reviews of fund performance and fund profitability information. The Board also considered the findings of certain ad hoc committees that had been previously formed to discuss matters relevant to all of the Fidelity funds, including economies of scale, fall-out benefits and retail vs. institutional funds. The Board concluded that the fund's Advisory Contracts are fair and reasonable, and that the fund's Advisory Contracts should be renewed, without modification, through May 31, 2021, with the understanding that the Board will consider the annual renewal for a full one year period in May 2021.In connection with its consideration of future renewals of the fund's Advisory Contracts, the Board will consider: (i) the nature, extent and quality of services provided to the funds, including shareholder and administrative services and investment performance; (ii) the competitiveness of the management fee and total expenses for the fund; (iii) the costs of the services and profitability, including the revenues earned and the expenses incurred in conducting the business of developing, marketing, distributing, managing, administering, and servicing the fund and its shareholders, to the extent applicable; and (iv) whether there have been economies of scale in respect of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is the potential for realization of any further economies.Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board ultimately concluded that the fund's management fee structure is fair and reasonable, and that the continuation of the fund's Advisory Contracts should be approved for four months from February 1, 2021 through May 31, 2021.BCFK6-SANN-0321
1.9884006.103
Fidelity® Small Cap Growth K6 Fund
Semi-Annual Report
January 31, 2021
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Contents
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All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2021 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.
Note to Shareholders:
Early in 2020, the outbreak and spread of a new coronavirus emerged as a public health emergency that had a major influence on financial markets, primarily based on its impact on the global economy and the outlook for corporate earnings. The virus causes a respiratory disease known as COVID-19. On March 11, the World Health Organization declared the COVID-19 outbreak a pandemic, citing sustained risk of further global spread.
In the weeks following, as the crisis worsened, we witnessed an escalating human tragedy with wide-scale social and economic consequences from coronavirus-containment measures. The outbreak of COVID-19 prompted a number of measures to limit the spread, including travel and border restrictions, quarantines, and restrictions on large gatherings. In turn, these resulted in lower consumer activity, diminished demand for a wide range of products and services, disruption in manufacturing and supply chains, and – given the wide variability in outcomes regarding the outbreak – significant market uncertainty and volatility. Amid the turmoil, global governments and central banks took unprecedented action to help support consumers, businesses, and the broader economies, and to limit disruption to financial systems.
The situation continues to unfold, and the extent and duration of its impact on financial markets and the economy remain highly uncertain. Extreme events such as the coronavirus crisis are “exogenous shocks” that can have significant adverse effects on mutual funds and their investments. Although multiple asset classes may be affected by market disruption, the duration and impact may not be the same for all types of assets.
Fidelity is committed to helping you stay informed amid news about COVID-19 and during increased market volatility, and we’re taking extra steps to be responsive to customer needs. We encourage you to visit our websites, where we offer ongoing updates, commentary, and analysis on the markets and our funds.
Investment Summary (Unaudited)
Top Ten Stocks as of January 31, 2021
% of fund's net assets | |
StepStone Group, Inc. Class A | 1.4 |
Crocs, Inc. | 1.4 |
Builders FirstSource, Inc. | 1.4 |
SiTime Corp. | 1.3 |
Insulet Corp. | 1.3 |
Novavax, Inc. | 1.2 |
Caesars Entertainment, Inc. | 1.1 |
Kornit Digital Ltd. | 1.1 |
TG Therapeutics, Inc. | 1.0 |
American Eagle Outfitters, Inc. | 1.0 |
12.2 |
Top Five Market Sectors as of January 31, 2021
% of fund's net assets | |
Health Care | 32.9 |
Information Technology | 20.3 |
Consumer Discretionary | 16.1 |
Industrials | 15.2 |
Financials | 6.7 |
Asset Allocation (% of fund's net assets)
As of January 31, 2021 * | ||
Stocks | 96.0% | |
Convertible Securities | 1.7% | |
Short-Term Investments and Net Other Assets (Liabilities) | 2.3% |
* Foreign investments - 10.3%
Schedule of Investments January 31, 2021 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 96.0% | |||
Shares | Value | ||
COMMUNICATION SERVICES - 1.7% | |||
Entertainment - 0.2% | |||
Gaia, Inc. Class A (a)(b) | 49,341 | $450,977 | |
Marcus Corp. | 21,214 | 373,366 | |
Skillz, Inc. (a)(b) | 66,900 | 1,847,778 | |
2,672,121 | |||
Interactive Media & Services - 0.1% | |||
QuinStreet, Inc. (a) | 64,841 | 1,372,684 | |
Media - 1.4% | |||
Cardlytics, Inc. (a)(b) | 51,548 | 6,302,774 | |
TechTarget, Inc. (a) | 140,704 | 10,510,589 | |
16,813,363 | |||
TOTAL COMMUNICATION SERVICES | 20,858,168 | ||
CONSUMER DISCRETIONARY - 15.9% | |||
Auto Components - 0.7% | |||
Visteon Corp. (a) | 64,500 | 8,222,460 | |
Diversified Consumer Services - 0.6% | |||
Arco Platform Ltd. Class A (a)(b) | 128,638 | 4,082,970 | |
Grand Canyon Education, Inc. (a) | 40,077 | 3,404,140 | |
7,487,110 | |||
Hotels, Restaurants & Leisure - 3.5% | |||
Caesars Entertainment, Inc. (a) | 194,091 | 13,662,065 | |
Churchill Downs, Inc. | 58,988 | 11,057,301 | |
Lindblad Expeditions Holdings (a)(b) | 687,993 | 10,801,490 | |
SeaWorld Entertainment, Inc. (a) | 74,400 | 2,125,608 | |
Wingstop, Inc. | 38,819 | 5,824,791 | |
43,471,255 | |||
Household Durables - 3.5% | |||
Helen of Troy Ltd. (a)(b) | 47,456 | 11,591,128 | |
Lovesac (a)(b) | 38,700 | 2,188,098 | |
M/I Homes, Inc. (a) | 69,405 | 3,426,525 | |
Purple Innovation, Inc. (a) | 120,100 | 4,088,204 | |
Taylor Morrison Home Corp. (a) | 316,954 | 8,234,465 | |
Tempur Sealy International, Inc. (a) | 86,400 | 2,280,960 | |
TopBuild Corp. (a) | 27,945 | 5,587,603 | |
Whirlpool Corp. | 34,023 | 6,297,317 | |
43,694,300 | |||
Internet & Direct Marketing Retail - 2.0% | |||
1-800-FLOWERS.com, Inc. Class A (a)(b) | 108,200 | 3,324,986 | |
Farfetch Ltd. Class A (a) | 126,980 | 7,776,255 | |
Kogan.Com Ltd. | 350,938 | 4,824,997 | |
Porch Group, Inc. Class A (a)(b) | 36,400 | 539,448 | |
Revolve Group, Inc. (a)(b) | 167,099 | 6,209,399 | |
Stamps.com, Inc. (a) | 10,675 | 2,437,209 | |
25,112,294 | |||
Leisure Products - 0.2% | |||
Acushnet Holdings Corp. | 47,376 | 1,933,888 | |
Polaris, Inc. | 9,593 | 1,119,215 | |
3,053,103 | |||
Multiline Retail - 0.2% | |||
Ollie's Bargain Outlet Holdings, Inc. (a)(b) | 23,660 | 2,241,312 | |
Specialty Retail - 2.9% | |||
American Eagle Outfitters, Inc. (b) | 564,208 | 12,801,880 | |
Floor & Decor Holdings, Inc. Class A (a) | 82,729 | 7,616,859 | |
Lithia Motors, Inc. Class A (sub. vtg.) | 20,600 | 6,564,808 | |
Musti Group OYJ | 87,161 | 2,726,860 | |
Williams-Sonoma, Inc. | 50,778 | 6,546,300 | |
36,256,707 | |||
Textiles, Apparel & Luxury Goods - 2.3% | |||
Crocs, Inc. (a) | 247,194 | 17,308,524 | |
Deckers Outdoor Corp. (a) | 33,330 | 9,731,693 | |
Tapestry, Inc. | 75,100 | 2,374,662 | |
29,414,879 | |||
TOTAL CONSUMER DISCRETIONARY | 198,953,420 | ||
CONSUMER STAPLES - 1.7% | |||
Food & Staples Retailing - 0.8% | |||
BJ's Wholesale Club Holdings, Inc. (a) | 243,150 | 10,229,321 | |
Food Products - 0.6% | |||
Bunge Ltd. | 35,300 | 2,310,032 | |
Nomad Foods Ltd. (a) | 175,199 | 4,397,495 | |
6,707,527 | |||
Personal Products - 0.3% | |||
Herbalife Nutrition Ltd. (a) | 70,404 | 3,587,788 | |
TOTAL CONSUMER STAPLES | 20,524,636 | ||
ENERGY - 0.7% | |||
Oil, Gas & Consumable Fuels - 0.7% | |||
Enviva Partners LP | 14,050 | 699,971 | |
Renewable Energy Group, Inc. (a)(b) | 93,787 | 8,403,315 | |
9,103,286 | |||
FINANCIALS - 6.4% | |||
Banks - 0.2% | |||
Signature Bank | 18,900 | 3,122,091 | |
Capital Markets - 3.4% | |||
Cowen Group, Inc. Class A | 211,748 | 5,325,462 | |
Lazard Ltd. Class A | 82,289 | 3,390,307 | |
LPL Financial | 74,050 | 8,022,577 | |
Morningstar, Inc. | 22,290 | 5,124,248 | |
StepStone Group, Inc. Class A | 521,154 | 17,387,776 | |
Vesper Healthcare Acquisition Corp. Class A (a) | 344,900 | 3,611,103 | |
42,861,473 | |||
Consumer Finance - 0.5% | |||
Green Dot Corp. Class A (a) | 57,000 | 2,863,110 | |
OneMain Holdings, Inc. | 65,000 | 3,026,400 | |
5,889,510 | |||
Diversified Financial Services - 0.6% | |||
Northern Star Acquisition Corp. unit | 524,736 | 7,178,388 | |
Insurance - 1.7% | |||
American Financial Group, Inc. | 60,450 | 5,690,763 | |
Assurant, Inc. | 38,709 | 5,243,908 | |
Brown & Brown, Inc. | 81,399 | 3,507,483 | |
BRP Group, Inc. (a) | 135,538 | 3,145,837 | |
RenaissanceRe Holdings Ltd. | 23,692 | 3,564,224 | |
21,152,215 | |||
TOTAL FINANCIALS | 80,203,677 | ||
HEALTH CARE - 32.8% | |||
Biotechnology - 17.4% | |||
4D Molecular Therapeutics, Inc. | 104,808 | 4,439,667 | |
Acceleron Pharma, Inc. (a) | 53,744 | 6,209,044 | |
ADC Therapeutics SA (a) | 57,231 | 1,635,090 | |
Agios Pharmaceuticals, Inc. (a) | 75,305 | 3,537,076 | |
Allovir, Inc. (a)(b) | 96,200 | 3,518,034 | |
ALX Oncology Holdings, Inc. (a) | 58,037 | 4,599,432 | |
Annexon, Inc. (a) | 56,100 | 1,234,200 | |
Argenx SE ADR (a) | 26,134 | 7,657,785 | |
Ascendis Pharma A/S sponsored ADR (a) | 53,045 | 7,964,707 | |
Avid Bioservices, Inc. (a) | 266,530 | 3,888,673 | |
Blueprint Medicines Corp. (a) | 76,594 | 7,410,470 | |
CareDx, Inc. (a) | 38,100 | 2,911,983 | |
Cullinan Management, Inc. | 2,100 | 79,821 | |
Deciphera Pharmaceuticals, Inc. (a) | 44,284 | 1,957,353 | |
Emergent BioSolutions, Inc. (a) | 44,798 | 4,786,666 | |
Exelixis, Inc. (a) | 205,100 | 4,555,271 | |
Fate Therapeutics, Inc. (a) | 48,152 | 4,364,016 | |
FibroGen, Inc. (a) | 93,792 | 4,518,899 | |
Forma Therapeutics Holdings, Inc. | 96,350 | 3,722,001 | |
Fusion Pharmaceuticals, Inc. (a) | 6,900 | 77,970 | |
Generation Bio Co. | 8,408 | 221,383 | |
Halozyme Therapeutics, Inc. (a)(b) | 189,107 | 8,999,602 | |
ImmunoGen, Inc. (a) | 279,000 | 1,989,270 | |
Iovance Biotherapeutics, Inc. (a) | 58,845 | 2,579,765 | |
Keros Therapeutics, Inc. | 36,500 | 2,082,325 | |
Kronos Bio, Inc. (b) | 8,100 | 222,669 | |
Kura Oncology, Inc. (a) | 206,872 | 6,195,816 | |
Kymera Therapeutics, Inc. (a)(b) | 94,964 | 5,883,020 | |
Mirati Therapeutics, Inc. (a) | 45,813 | 9,406,783 | |
Morphic Holding, Inc. (a) | 78,707 | 2,649,278 | |
Natera, Inc. (a) | 94,912 | 10,121,416 | |
Neurocrine Biosciences, Inc. (a) | 28,500 | 3,127,875 | |
Nkarta, Inc. (a) | 3,800 | 150,708 | |
Novavax, Inc. (a) | 66,628 | 14,720,790 | |
ORIC Pharmaceuticals, Inc. (a) | 12,242 | 358,935 | |
Passage Bio, Inc. (b) | 156,101 | 2,912,845 | |
Poseida Therapeutics, Inc. (a) | 3,900 | 33,930 | |
Prelude Therapeutics, Inc. (b) | 63,654 | 4,134,327 | |
Protagonist Therapeutics, Inc. (a) | 160,912 | 3,332,488 | |
PTC Therapeutics, Inc. (a) | 92,900 | 5,371,478 | |
Relay Therapeutics, Inc. (a) | 94,028 | 4,661,908 | |
Repare Therapeutics, Inc. | 100,600 | 3,733,266 | |
Repligen Corp. (a) | 15,157 | 3,031,400 | |
Revolution Medicines, Inc. | 97,011 | 4,088,044 | |
Shattuck Labs, Inc. | 24,400 | 1,210,484 | |
Silverback Therapeutics, Inc. | 18,200 | 799,344 | |
Stoke Therapeutics, Inc. (a) | 5,200 | 317,616 | |
Taysha Gene Therapies, Inc. | 32,610 | 847,860 | |
TG Therapeutics, Inc. (a) | 265,904 | 12,835,186 | |
Turning Point Therapeutics, Inc. (a) | 81,981 | 10,287,796 | |
Veracyte, Inc. (a)(b) | 28,500 | 1,615,950 | |
Vericel Corp. (a)(b) | 118,575 | 4,893,590 | |
Viela Bio, Inc. (a) | 116,779 | 4,049,896 | |
Xenon Pharmaceuticals, Inc. (a) | 52,814 | 757,881 | |
Zymeworks, Inc. (a) | 10,421 | 352,438 | |
217,045,520 | |||
Health Care Equipment & Supplies - 5.0% | |||
Axonics Modulation Technologies, Inc. (a)(b) | 105,498 | 5,454,247 | |
CryoPort, Inc. (a) | 56,000 | 3,819,200 | |
Globus Medical, Inc. (a) | 37,800 | 2,331,882 | |
Haemonetics Corp. (a) | 37,202 | 4,251,817 | |
Insulet Corp. (a) | 62,502 | 16,699,284 | |
Integer Holdings Corp. (a) | 82,999 | 6,125,326 | |
Neuronetics, Inc. (a) | 154,200 | 2,718,546 | |
Nevro Corp. (a) | 53,100 | 8,591,049 | |
Pulmonx Corp. | 44,001 | 2,495,737 | |
Tandem Diabetes Care, Inc. (a) | 40,475 | 3,750,009 | |
TransMedics Group, Inc. (a) | 161,686 | 3,683,207 | |
ViewRay, Inc. (a) | 717,401 | 3,185,260 | |
63,105,564 | |||
Health Care Providers & Services - 4.1% | |||
Castle Biosciences, Inc. (a) | 59,542 | 3,979,192 | |
Chemed Corp. | 6,600 | 3,418,140 | |
Guardant Health, Inc. (a) | 29,449 | 4,579,320 | |
LHC Group, Inc. (a) | 23,758 | 4,733,069 | |
Molina Healthcare, Inc. (a) | 40,532 | 8,658,041 | |
Option Care Health, Inc. (a) | 57,274 | 1,058,424 | |
Progyny, Inc. (a)(b) | 194,794 | 9,110,515 | |
R1 RCM, Inc. (a) | 304,129 | 7,673,175 | |
Surgery Partners, Inc. (a) | 30,400 | 1,133,312 | |
The Ensign Group, Inc. | 82,900 | 6,489,412 | |
The Joint Corp. (a) | 15,543 | 505,614 | |
51,338,214 | |||
Health Care Technology - 2.6% | |||
Certara, Inc. | 10,100 | 347,642 | |
Health Catalyst, Inc. (a) | 93,923 | 4,666,095 | |
Inovalon Holdings, Inc. Class A (a) | 111,042 | 2,709,425 | |
Inspire Medical Systems, Inc. (a) | 55,817 | 11,247,684 | |
Phreesia, Inc. (a) | 137,692 | 8,989,911 | |
Schrodinger, Inc. | 53,794 | 4,859,212 | |
32,819,969 | |||
Life Sciences Tools & Services - 3.5% | |||
10X Genomics, Inc. (a) | 34,194 | 5,852,303 | |
Berkeley Lights, Inc. (a) | 36,217 | 2,607,624 | |
Bruker Corp. | 76,171 | 4,409,539 | |
Charles River Laboratories International, Inc.(a) | 19,222 | 4,979,459 | |
Maravai LifeSciences Holdings, Inc. | 32,200 | 1,121,848 | |
Medpace Holdings, Inc. (a)(b) | 46,610 | 6,189,342 | |
Nanostring Technologies, Inc. (a) | 116,153 | 8,134,195 | |
Syneos Health, Inc. (a) | 137,237 | 10,203,571 | |
43,497,881 | |||
Pharmaceuticals - 0.2% | |||
Aclaris Therapeutics, Inc. (a) | 19,550 | 405,663 | |
IMARA, Inc. | 58,986 | 767,998 | |
Theravance Biopharma, Inc. (a) | 55,754 | 1,039,255 | |
2,212,916 | |||
TOTAL HEALTH CARE | 410,020,064 | ||
INDUSTRIALS - 15.0% | |||
Aerospace & Defense - 0.9% | |||
Axon Enterprise, Inc. (a) | 33,490 | 5,497,718 | |
BWX Technologies, Inc. | 100,795 | 5,434,866 | |
10,932,584 | |||
Air Freight & Logistics - 0.5% | |||
Air Transport Services Group, Inc. (a) | 179,218 | 4,553,929 | |
Atlas Air Worldwide Holdings, Inc. (a) | 37,000 | 1,917,340 | |
6,471,269 | |||
Building Products - 2.6% | |||
Builders FirstSource, Inc. (a) | 445,306 | 17,032,955 | |
Fortune Brands Home & Security, Inc. | 66,518 | 5,737,178 | |
The AZEK Co., Inc. | 239,628 | 9,558,761 | |
32,328,894 | |||
Commercial Services & Supplies - 1.1% | |||
Montrose Environmental Group, Inc. (a) | 136,191 | 5,036,343 | |
MYT Netherlands Parent BV ADR | 5,700 | 187,644 | |
Tetra Tech, Inc. | 26,469 | 3,217,836 | |
The Brink's Co. | 73,778 | 5,026,495 | |
13,468,318 | |||
Construction & Engineering - 0.5% | |||
MasTec, Inc. (a) | 49,000 | 3,780,350 | |
Quanta Services, Inc. | 39,100 | 2,755,377 | |
6,535,727 | |||
Electrical Equipment - 3.1% | |||
Bloom Energy Corp. Class A (a) | 31,700 | 1,106,647 | |
Generac Holdings, Inc. (a) | 14,648 | 3,609,560 | |
Plug Power, Inc. (a) | 201,411 | 12,723,133 | |
Regal Beloit Corp. | 28,175 | 3,535,399 | |
Sensata Technologies, Inc. PLC (a) | 124,938 | 6,809,121 | |
Sunrun, Inc. (a) | 105,600 | 7,314,912 | |
Vertiv Holdings Co. | 149,900 | 3,015,988 | |
38,114,760 | |||
Machinery - 3.4% | |||
AGCO Corp. | 33,900 | 3,759,510 | |
Chart Industries, Inc. (a) | 25,200 | 3,026,772 | |
Crane Co. | 66,000 | 4,994,880 | |
ESCO Technologies, Inc. | 54,649 | 5,196,027 | |
IDEX Corp. | 22,594 | 4,206,777 | |
ITT, Inc. | 82,243 | 6,144,375 | |
Kornit Digital Ltd. (a) | 145,041 | 13,145,791 | |
Nordson Corp. | 13,722 | 2,456,101 | |
42,930,233 | |||
Professional Services - 2.8% | |||
ASGN, Inc. (a) | 71,109 | 5,895,647 | |
Clarivate Analytics PLC (a) | 215,752 | 6,243,863 | |
Insperity, Inc. | 88,389 | 6,937,653 | |
TriNet Group, Inc. (a) | 146,604 | 10,864,822 | |
Upwork, Inc. (a) | 119,690 | 4,961,151 | |
34,903,136 | |||
Trading Companies & Distributors - 0.1% | |||
Nesco Holdings, Inc. Class A (a)(b) | 172,300 | 1,312,926 | |
TOTAL INDUSTRIALS | 186,997,847 | ||
INFORMATION TECHNOLOGY - 19.4% | |||
Communications Equipment - 0.4% | |||
Lumentum Holdings, Inc. (a) | 59,800 | 5,609,240 | |
Electronic Equipment & Components - 0.9% | |||
Fabrinet (a) | 96,109 | 7,586,844 | |
II-VI, Inc. (a) | 37,100 | 3,118,997 | |
10,705,841 | |||
IT Services - 2.0% | |||
CACI International, Inc. Class A (a) | 18,361 | 4,429,040 | |
Fastly, Inc. Class A (a) | 12,000 | 1,312,200 | |
Genpact Ltd. | 146,616 | 5,612,460 | |
Globant SA (a) | 26,360 | 5,061,120 | |
KBR, Inc. | 140,467 | 4,080,566 | |
Repay Holdings Corp. (a) | 73,075 | 1,618,611 | |
WNS Holdings Ltd. sponsored ADR (a) | 41,865 | 2,812,491 | |
24,926,488 | |||
Semiconductors & Semiconductor Equipment - 4.6% | |||
ACM Research, Inc. (a) | 13,583 | 1,222,470 | |
Advanced Energy Industries, Inc. | 83,538 | 8,569,328 | |
Array Technologies, Inc. | 200,340 | 8,165,858 | |
Cirrus Logic, Inc. (a) | 74,332 | 6,964,165 | |
Enphase Energy, Inc. (a) | 30,030 | 5,475,971 | |
PDF Solutions, Inc. (a) | 14,915 | 288,158 | |
Semtech Corp. (a) | 105,424 | 7,479,833 | |
SiTime Corp. (a)(b) | 137,143 | 16,738,303 | |
Ultra Clean Holdings, Inc. (a) | 57,324 | 2,212,706 | |
57,116,792 | |||
Software - 11.5% | |||
Aspen Technology, Inc. (a) | 25,500 | 3,414,450 | |
Ceridian HCM Holding, Inc. (a) | 40,509 | 3,763,691 | |
CyberArk Software Ltd. (a) | 47,600 | 7,627,900 | |
Digital Turbine, Inc. (a) | 182,342 | 10,431,786 | |
Duck Creek Technologies, Inc. (a)(b) | 14,270 | 689,812 | |
Dynatrace, Inc. (a) | 155,073 | 6,437,080 | |
Elastic NV (a) | 61,970 | 9,416,961 | |
FireEye, Inc. (a) | 63,300 | 1,329,300 | |
Five9, Inc. (a) | 35,118 | 5,838,368 | |
JFrog Ltd. (b) | 25,800 | 1,611,726 | |
Lightspeed POS, Inc. (Canada) (a) | 83,257 | 5,412,437 | |
LivePerson, Inc. (a)(b) | 127,179 | 8,058,061 | |
Manhattan Associates, Inc. (a) | 36,997 | 4,189,170 | |
NICE Systems Ltd. sponsored ADR (a) | 14,700 | 3,840,816 | |
Nuance Communications, Inc. (a) | 108,261 | 4,930,206 | |
Rapid7, Inc. (a) | 109,118 | 9,473,625 | |
SailPoint Technologies Holding, Inc. (a)(b) | 33,600 | 1,858,416 | |
Sprout Social, Inc. (a) | 177,090 | 11,687,940 | |
TECSYS, Inc. | 32,775 | 1,411,984 | |
Telos Corp. | 128,398 | 4,532,449 | |
Tenable Holdings, Inc. (a) | 244,488 | 12,099,711 | |
Varonis Systems, Inc. (a) | 35,968 | 6,358,063 | |
Verint Systems, Inc. (a) | 44,500 | 3,285,435 | |
Workiva, Inc. (a) | 72,482 | 7,064,821 | |
Xperi Holding Corp. | 156,100 | 3,006,486 | |
Yext, Inc. (a) | 327,358 | 5,522,529 | |
143,293,223 | |||
TOTAL INFORMATION TECHNOLOGY | 241,651,584 | ||
MATERIALS - 1.0% | |||
Chemicals - 0.4% | |||
The Chemours Co. LLC | 87,800 | 2,312,652 | |
Valvoline, Inc. | 118,479 | 2,812,691 | |
5,125,343 | |||
Containers & Packaging - 0.6% | |||
Avery Dennison Corp. | 51,319 | 7,742,498 | |
TOTAL MATERIALS | 12,867,841 | ||
REAL ESTATE - 0.8% | |||
Equity Real Estate Investment Trusts (REITs) - 0.5% | |||
Americold Realty Trust | 75,024 | 2,619,088 | |
Terreno Realty Corp. | 69,433 | 3,928,519 | |
6,547,607 | |||
Real Estate Management & Development - 0.3% | |||
Redfin Corp. (a) | 41,920 | 2,985,123 | |
TOTAL REAL ESTATE | 9,532,730 | ||
UTILITIES - 0.6% | |||
Independent Power and Renewable Electricity Producers - 0.6% | |||
Clearway Energy, Inc. Class C | 73,700 | 2,283,226 | |
Shoals Technologies Group, Inc. | 10,700 | 363,051 | |
Sunnova Energy International, Inc. (a) | 102,900 | 4,512,165 | |
7,158,442 | |||
TOTAL COMMON STOCKS | |||
(Cost $832,439,352) | 1,197,871,695 | ||
Convertible Preferred Stocks - 1.7% | |||
CONSUMER DISCRETIONARY - 0.2% | |||
Specialty Retail - 0.2% | |||
Fanatics, Inc. Series E (c)(d) | 158,924 | 2,747,796 | |
FINANCIALS - 0.3% | |||
Diversified Financial Services - 0.3% | |||
Alkami Technology, Inc. Series F (c)(d) | 199,371 | 3,189,936 | |
HEALTH CARE - 0.1% | |||
Health Care Providers & Services - 0.1% | |||
Ikena Oncology, Inc. Series B (c)(d) | 822,200 | 1,149,847 | |
INDUSTRIALS - 0.2% | |||
Road & Rail - 0.2% | |||
Convoy, Inc. Series D (a)(c)(d) | 192,936 | 3,181,515 | |
INFORMATION TECHNOLOGY - 0.9% | |||
IT Services - 0.2% | |||
Yanka Industries, Inc. Series E (c)(d) | 191,029 | 2,307,478 | |
Software - 0.7% | |||
Compass, Inc.: | |||
Series E (a)(c)(d) | 16,661 | 3,047,297 | |
Series F (a)(c)(d) | 27,147 | 4,848,726 | |
DoubleVerify, Inc. Series A (c)(d) | 194,800 | 1,117,587 | |
9,013,610 | |||
TOTAL INFORMATION TECHNOLOGY | 11,321,088 | ||
TOTAL CONVERTIBLE PREFERRED STOCKS | |||
(Cost $17,468,071) | 21,590,182 | ||
Money Market Funds - 6.7% | |||
Fidelity Cash Central Fund 0.09% (e) | 20,862,011 | 20,866,184 | |
Fidelity Securities Lending Cash Central Fund 0.09% (e)(f) | 62,796,820 | 62,803,099 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $83,669,283) | 83,669,283 | ||
TOTAL INVESTMENT IN SECURITIES - 104.4% | |||
(Cost $933,576,706) | 1,303,131,160 | ||
NET OTHER ASSETS (LIABILITIES) - (4.4)% | (54,709,892) | ||
NET ASSETS - 100% | $1,248,421,268 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Restricted securities (including private placements) - 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 $21,590,182 or 1.7% of net assets.
(d) Level 3 security
(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 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 |
Alkami Technology, Inc. Series F | 9/24/20 | $3,189,936 |
Compass, Inc. Series E | 11/3/17 | $1,124,254 |
Compass, Inc. Series F | 10/22/18 | $3,218,820 |
Convoy, Inc. Series D | 10/30/19 | $2,612,353 |
DoubleVerify, Inc. Series A | 11/18/20 | $1,117,587 |
Fanatics, Inc. Series E | 8/13/20 | $2,747,796 |
Ikena Oncology, Inc. Series B | 12/21/20 | $1,149,847 |
Yanka Industries, Inc. Series E | 5/15/20 | $2,307,478 |
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
Fidelity Cash Central Fund | $4,907 |
Fidelity Securities Lending Cash Central Fund | 62,604 |
Total | $67,511 |
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 January 31, 2021, 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 | $20,858,168 | $20,858,168 | $-- | $-- |
Consumer Discretionary | 201,701,216 | 198,953,420 | -- | 2,747,796 |
Consumer Staples | 20,524,636 | 20,524,636 | -- | -- |
Energy | 9,103,286 | 9,103,286 | -- | -- |
Financials | 83,393,613 | 62,815,901 | 17,387,776 | 3,189,936 |
Health Care | 411,169,911 | 410,020,064 | -- | 1,149,847 |
Industrials | 190,179,362 | 186,997,847 | -- | 3,181,515 |
Information Technology | 252,972,672 | 241,651,584 | -- | 11,321,088 |
Materials | 12,867,841 | 12,867,841 | -- | -- |
Real Estate | 9,532,730 | 9,532,730 | -- | -- |
Utilities | 7,158,442 | 7,158,442 | -- | -- |
Money Market Funds | 83,669,283 | 83,669,283 | -- | -- |
Total Investments in Securities: | $1,303,131,160 | $1,264,153,202 | $17,387,776 | $21,590,182 |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value:
Investments in Securities: | |
Beginning Balance | $16,492,304 |
Net Realized Gain (Loss) on Investment Securities | -- |
Net Unrealized Gain (Loss) on Investment Securities | 3,023,028 |
Cost of Purchases | 8,205,166 |
Proceeds of Sales | -- |
Amortization/Accretion | -- |
Transfers into Level 3 | -- |
Transfers out of Level 3 | (6,130,316) |
Ending Balance | $21,590,182 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2021 | $3,023,028 |
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. Cost of purchases and proceeds of sales may include securities received and/or delivered through 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 | 89.7% |
Bermuda | 2.2% |
Israel | 1.7% |
Netherlands | 1.4% |
Cayman Islands | 1.0% |
Others (Individually Less Than 1%) | 4.0% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
January 31, 2021 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $60,164,306) — See accompanying schedule: Unaffiliated issuers (cost $849,907,423) | $1,219,461,877 | |
Fidelity Central Funds (cost $83,669,283) | 83,669,283 | |
Total Investment in Securities (cost $933,576,706) | $1,303,131,160 | |
Receivable for investments sold | 15,695,683 | |
Receivable for fund shares sold | 7,942,976 | |
Dividends receivable | 75,495 | |
Distributions receivable from Fidelity Central Funds | 18,510 | |
Other receivables | 28,529 | |
Total assets | 1,326,892,353 | |
Liabilities | ||
Payable for investments purchased | $12,662,591 | |
Payable for fund shares redeemed | 2,378,213 | |
Accrued management fee | 628,591 | |
Collateral on securities loaned | 62,801,690 | |
Total liabilities | 78,471,085 | |
Net Assets | $1,248,421,268 | |
Net Assets consist of: | ||
Paid in capital | $799,730,289 | |
Total accumulated earnings (loss) | 448,690,979 | |
Net Assets | $1,248,421,268 | |
Net Asset Value, offering price and redemption price per share ($1,248,421,268 ÷ 61,985,293 shares) | $20.14 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended January 31, 2021 (Unaudited) | ||
Investment Income | ||
Dividends | $1,394,034 | |
Income from Fidelity Central Funds (including $62,604 from security lending) | 67,511 | |
Total income | 1,461,545 | |
Expenses | ||
Management fee | $3,170,259 | |
Independent trustees' fees and expenses | 2,382 | |
Interest | 1,266 | |
Miscellaneous | 1,105 | |
Total expenses before reductions | 3,175,012 | |
Expense reductions | (48,472) | |
Total expenses after reductions | 3,126,540 | |
Net investment income (loss) | (1,664,995) | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 132,340,144 | |
Fidelity Central Funds | (350) | |
Foreign currency transactions | (5,079) | |
Total net realized gain (loss) | 132,334,715 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 183,944,503 | |
Assets and liabilities in foreign currencies | (506) | |
Total change in net unrealized appreciation (depreciation) | 183,943,997 | |
Net gain (loss) | 316,278,712 | |
Net increase (decrease) in net assets resulting from operations | $314,613,717 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended January 31, 2021 (Unaudited) | Year ended July 31, 2020 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $(1,664,995) | $(185,498) |
Net realized gain (loss) | 132,334,715 | 14,448,470 |
Change in net unrealized appreciation (depreciation) | 183,943,997 | 56,533,770 |
Net increase (decrease) in net assets resulting from operations | 314,613,717 | 70,796,742 |
Distributions to shareholders | (32,449,491) | – |
Share transactions | ||
Proceeds from sales of shares | 230,167,513 | 283,012,488 |
Reinvestment of distributions | 32,449,491 | – |
Cost of shares redeemed | (196,285,720) | (287,627,670) |
Net increase (decrease) in net assets resulting from share transactions | 66,331,284 | (4,615,182) |
Total increase (decrease) in net assets | 348,495,510 | 66,181,560 |
Net Assets | ||
Beginning of period | 899,925,758 | 833,744,198 |
End of period | $1,248,421,268 | $899,925,758 |
Other Information | ||
Shares | ||
Sold | 12,390,472 | 20,313,303 |
Issued in reinvestment of distributions | 1,720,546 | – |
Redeemed | (10,863,663) | (21,315,157) |
Net increase (decrease) | 3,247,355 | (1,001,854) |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Small Cap Growth K6 Fund
Six months ended (Unaudited) January 31, | Years endedJuly 31, | ||||
2021 | 2020 | 2019 | 2018 | 2017 A | |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $15.32 | $13.96 | $13.40 | $10.42 | $10.00 |
Income from Investment Operations | |||||
Net investment income (loss)B | (.03) | –C | (.01) | (.01) | (.01) |
Net realized and unrealized gain (loss) | 5.40 | 1.36 | .84 | 3.00 | .43 |
Total from investment operations | 5.37 | 1.36 | .83 | 2.99 | .42 |
Distributions from net investment income | – | – | – | –C | – |
Distributions from net realized gain | (.55) | – | (.27) | (.01) | – |
Total distributions | (.55) | – | (.27) | (.01) | – |
Net asset value, end of period | $20.14 | $15.32 | $13.96 | $13.40 | $10.42 |
Total ReturnD,E | 35.29% | 9.74% | 6.14% | 28.72% | 4.20% |
Ratios to Average Net AssetsF,G | |||||
Expenses before reductions | .60%H | .60% | .60% | .60% | .60%H |
Expenses net of fee waivers, if any | .60%H | .60% | .60% | .60% | .60%H |
Expenses net of all reductions | .59%H | .59% | .59% | .59% | .60%H |
Net investment income (loss) | (.32)%H | (.02)% | (.09)% | (.06)% | (.45)%H |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $1,248,421 | $899,926 | $833,744 | $562,817 | $74,821 |
Portfolio turnover rateI | 117%H | 137%J | 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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment advisor, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
H Annualized
I Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
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 (Unaudited)
For the period ended January 31, 2021
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.
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 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 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 - Investment 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. Securities, including private placements or other restricted securities, for which observable inputs are not available are valued using alternate valuation approaches, including the market approach, the income approach and cost approach, and are categorized as Level 3 in the hierarchy. The market approach considers factors including the price of recent investments in the same or a similar security or financial metrics of comparable securities. The income approach considers factors including expected future cash flows, security specific risks and corresponding discount rates. The cost approach considers factors including the value of the security's underlying assets and liabilities.
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 | $21,590,182 | Market comparable | Enterprise value/Sales multiple (EV/S) | 2.1-2.2/2.1 | Increase |
Discount rate | 32.5%-69.1%/58.6% | Decrease | |||
Conversion ratio | 1.0 | Increase | |||
Market approach | Transaction price | $1.40-$17.29/$12.79 | 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 January 31, 2021, as well as a roll forward of Level 3 investments, is included at the end of the Fund's Schedule of Investments.
Foreign Currency. Certain Funds 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. 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 | $382,588,263 |
Gross unrealized depreciation | (16,038,430) |
Net unrealized appreciation (depreciation) | $366,549,833 |
Tax cost | $936,581,327 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of prior fiscal period end and is subject to adjustment.
No expiration | |
Short-term | $(12,344,003) |
Restricted Securities (including Private Placements). The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, are noted in the table below.
Purchases ($) | Sales ($) | |
Fidelity Small Cap Growth K6 Fund | 608,621,394 | 602,798,155 |
Prior Fiscal Year Unaffiliated Exchanges In-Kind. During the prior period, the Fund received investments and cash valued at $32,422,959 in exchange for 2,206,781 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 LLC (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. A portion of portfolio transactions were placed 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 as follows:
Amount | |
Fidelity Small Cap Growth K6 Fund | $20,943 |
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 LLC (FMR), or other affiliated entities of FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the Fund to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. 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 | |
Fidelity Small Cap Growth K6 Fund | Borrower | $6,252,636 | .33% | $1,266 |
Interfund Trades. Funds 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, and amounted to $31,950,221 and $34,667,200, respectively.
6. Committed Line of Credit.
Certain Funds participate 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 participating funds have agreed to pay commitment fees on their pro-rata portion of the line of credit, which are reflected in Miscellaneous expenses on the Statement of Operations, and are listed below. Effective during January 2021, commitment fees are borne by the investment advisor.
Amount | |
Fidelity Small Cap Growth K6 Fund | $1,019 |
During the period, there were no borrowings on this line of credit.
7. Security Lending.
Funds lend portfolio securities from time to time in order to earn additional income. Lending agents are used, including National Financial Services (NFS), an affiliate of the investment adviser. Pursuant to a securities lending agreement, NFS will receive a fee, which is capped at 9.9% of a fund's daily lending revenue, for its services as lending agent. A fund may lend securities to certain qualified borrowers, including NFS. On the settlement date of the loan, a 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 a fund and any additional required collateral is delivered to a fund on the next business day. A 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, a fund may apply collateral received from the borrower against the obligation. A 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. Any loaned securities are identified as such in the Schedule of Investments, and the value of loaned securities and cash collateral at period end, as applicable, are presented in the 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. Affiliated security lending activity, if any, was as follows:
Total Security Lending Income Fees Paid to NFS | Security Lending Income From Securities Loaned to NFS | Value of Securities Loaned to NFS at Period End | |
Fidelity Small Cap Growth K6 Fund | $11,648 | $2,341 | $– |
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 expenses. This amount totaled $48,472 for the period.
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.
10. Coronavirus (COVID-19) Pandemic.
An outbreak of COVID-19 first detected in China during December 2019 has since spread globally and was declared a pandemic by the World Health Organization during March 2020. Developments that disrupt global economies and financial markets, such as the COVID-19 pandemic, may magnify factors that affect the Fund's performance.
Shareholder Expense Example
As a shareholder, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or redemption proceeds, as applicable and (2) ongoing costs, which generally include 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 a fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2020 to January 31, 2021).
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 for a class/Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. If any fund is a shareholder of any underlying mutual funds or exchange-traded funds (ETFs) (the Underlying Funds), such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses incurred presented in the table. These fees and expenses are not included in the 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 actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the 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. If any fund is a shareholder of any Underlying Funds, such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses as presented in the table. These fees and expenses are not included in the 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 August 1, 2020 | Ending Account Value January 31, 2021 | Expenses Paid During Period-B August 1, 2020 to January 31, 2021 | |
Fidelity Small Cap Growth K6 Fund | .60% | |||
Actual | $1,000.00 | $1,352.90 | $3.56 | |
Hypothetical-C | $1,000.00 | $1,022.18 | $3.06 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/ 365 (to reflect the one-half year period). The fees and expenses of any Underlying Funds are not included in each annualized expense ratio.
C 5% return per year before expenses
Board Approval of Investment Advisory Contracts
Fidelity Small Cap Growth K6 Fund
At its January 2021 meeting, the Board of Trustees, including the Independent Trustees (together, the Board), voted to continue the management contract with Fidelity Management & Research Company LLC (FMR), and the sub-advisory agreements and sub-subadvisory agreements, in each case, where applicable (together, the Advisory Contracts) for the fund for four months from February 1, 2021 through May 31, 2021, in connection with changes to the Board's meeting calendar.The Board considered that the approval of the fund's Advisory Contracts will not result in any changes in (i) the investment process or strategies employed in the management of the fund's assets; (ii) the fees and expenses paid by shareholders; (iii) the nature, extent or quality of services provided under the fund's Advisory Contracts; or (iv) the day-to-day management of the fund or the persons primarily responsible for such management. The Board also considered that since its last approval of the fund's Advisory Contracts, FMR had provided additional information on the fund in support of the annual contract renewal process, including competitive analyses on total expenses and management fees and in-depth reviews of fund performance and fund profitability information. The Board also considered the findings of certain ad hoc committees that had been previously formed to discuss matters relevant to all of the Fidelity funds, including economies of scale, fall-out benefits and retail vs. institutional funds. The Board concluded that the fund's Advisory Contracts are fair and reasonable, and that the fund's Advisory Contracts should be renewed, without modification, through May 31, 2021, with the understanding that the Board will consider the annual renewal for a full one year period in May 2021.In connection with its consideration of future renewals of the fund's Advisory Contracts, the Board will consider: (i) the nature, extent and quality of services provided to the funds, including shareholder and administrative services and investment performance; (ii) the competitiveness of the management fee and total expenses for the fund; (iii) the costs of the services and profitability, including the revenues earned and the expenses incurred in conducting the business of developing, marketing, distributing, managing, administering, and servicing the fund and its shareholders, to the extent applicable; and (iv) whether there have been economies of scale in respect of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is the potential for realization of any further economies.Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board ultimately concluded that the fund's management fee structure is fair and reasonable, and that the continuation of the fund's Advisory Contracts should be approved for four months from February 1, 2021 through May 31, 2021.SCPK6-SANN-0321
1.9884010.103
Fidelity® OTC K6 Portfolio
Semi-Annual Report
January 31, 2021
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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 1-800-835-5092 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. © 2021 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.
Note to Shareholders:
Early in 2020, the outbreak and spread of a new coronavirus emerged as a public health emergency that had a major influence on financial markets, primarily based on its impact on the global economy and the outlook for corporate earnings. The virus causes a respiratory disease known as COVID-19. On March 11, the World Health Organization declared the COVID-19 outbreak a pandemic, citing sustained risk of further global spread.
In the weeks following, as the crisis worsened, we witnessed an escalating human tragedy with wide-scale social and economic consequences from coronavirus-containment measures. The outbreak of COVID-19 prompted a number of measures to limit the spread, including travel and border restrictions, quarantines, and restrictions on large gatherings. In turn, these resulted in lower consumer activity, diminished demand for a wide range of products and services, disruption in manufacturing and supply chains, and – given the wide variability in outcomes regarding the outbreak – significant market uncertainty and volatility. Amid the turmoil, global governments and central banks took unprecedented action to help support consumers, businesses, and the broader economies, and to limit disruption to financial systems.
The situation continues to unfold, and the extent and duration of its impact on financial markets and the economy remain highly uncertain. Extreme events such as the coronavirus crisis are “exogenous shocks” that can have significant adverse effects on mutual funds and their investments. Although multiple asset classes may be affected by market disruption, the duration and impact may not be the same for all types of assets.
Fidelity is committed to helping you stay informed amid news about COVID-19 and during increased market volatility, and we’re taking extra steps to be responsive to customer needs. We encourage you to visit our websites, where we offer ongoing updates, commentary, and analysis on the markets and our funds.
Investment Summary (Unaudited)
Top Ten Stocks as of January 31, 2021
% of fund's net assets | |
Apple, Inc. | 11.5 |
Microsoft Corp. | 10.1 |
Alphabet, Inc. Class A | 6.9 |
Amazon.com, Inc. | 6.8 |
Facebook, Inc. Class A | 4.5 |
Tesla, Inc. | 3.5 |
NVIDIA Corp. | 2.4 |
Alphabet, Inc. Class C | 2.3 |
Marriott International, Inc. Class A | 1.7 |
Qualcomm, Inc. | 1.6 |
51.3 |
Top Five Market Sectors as of January 31, 2021
% of fund's net assets | |
Information Technology | 42.5 |
Consumer Discretionary | 20.8 |
Communication Services | 20.6 |
Health Care | 6.3 |
Financials | 3.0 |
Asset Allocation (% of fund's net assets)
As of January 31, 2021* | ||
Stocks | 99.6% | |
Convertible Securities | 0.1% | |
Short-Term Investments and Net Other Assets (Liabilities) | 0.3% |
* Foreign investments - 13.8%
Schedule of Investments January 31, 2021 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.6% | |||
Shares | Value | ||
COMMUNICATION SERVICES - 20.6% | |||
Entertainment - 2.0% | |||
Activision Blizzard, Inc. | 89,940 | $8,184,540 | |
Electronic Arts, Inc. | 108 | 15,466 | |
Live Nation Entertainment, Inc. (a) | 101,035 | 6,713,776 | |
NetEase, Inc. ADR | 748 | 86,013 | |
Sea Ltd. ADR (a) | 12,150 | 2,633,027 | |
Spotify Technology SA (a) | 4,011 | 1,263,465 | |
Take-Two Interactive Software, Inc. (a) | 13,825 | 2,771,221 | |
The Walt Disney Co. | 52,908 | 8,897,538 | |
30,565,046 | |||
Interactive Media & Services - 18.6% | |||
Alphabet, Inc.: | |||
Class A (a) | 59,090 | 107,978,702 | |
Class C (a) | 19,777 | 36,305,430 | |
Eventbrite, Inc. (a) | 1,024 | 18,278 | |
Facebook, Inc. Class A (a) | 270,492 | 69,876,198 | |
InterActiveCorp (a) | 10,778 | 2,262,841 | |
Match Group, Inc. (a) | 95,881 | 13,409,917 | |
Snap, Inc. Class A (a) | 128,318 | 6,793,155 | |
Tencent Holdings Ltd. sponsored ADR | 257,612 | 23,007,328 | |
Twitter, Inc. (a) | 364,559 | 18,421,166 | |
Yandex NV Series A (a) | 176,725 | 11,070,054 | |
289,143,069 | |||
Wireless Telecommunication Services - 0.0% | |||
T-Mobile U.S., Inc. | 5,099 | 642,882 | |
TOTAL COMMUNICATION SERVICES | 320,350,997 | ||
CONSUMER DISCRETIONARY - 20.8% | |||
Automobiles - 3.5% | |||
Tesla, Inc. (a) | 68,540 | 54,388,546 | |
Hotels, Restaurants & Leisure - 4.4% | |||
Airbnb, Inc. Class A | 30,337 | 5,570,783 | |
Caesars Entertainment, Inc. (a) | 36,123 | 2,542,698 | |
Extended Stay America, Inc. unit | 325,063 | 4,771,925 | |
Las Vegas Sands Corp. | 52,712 | 2,534,920 | |
Marriott International, Inc. Class A | 224,039 | 26,057,976 | |
Starbucks Corp. | 216,907 | 20,998,767 | |
Vail Resorts, Inc. | 18,824 | 5,006,431 | |
Wynn Resorts Ltd. | 8,800 | 875,864 | |
68,359,364 | |||
Household Durables - 0.8% | |||
Lennar Corp. Class A | 151,455 | 12,593,483 | |
Internet & Direct Marketing Retail - 8.8% | |||
Alibaba Group Holding Ltd. sponsored ADR (a) | 40,670 | 10,323,266 | |
Amazon.com, Inc. (a) | 32,776 | 105,086,411 | |
ContextLogic, Inc. | 13,412 | 403,299 | |
Expedia, Inc. | 47,789 | 5,930,615 | |
MercadoLibre, Inc. (a) | 4,235 | 7,536,225 | |
The Booking Holdings, Inc. (a) | 3,570 | 6,941,258 | |
Zomato Pvt Ltd. (b)(c)(d) | 20 | 107,055 | |
136,328,129 | |||
Multiline Retail - 0.2% | |||
Dollar Tree, Inc. (a) | 33,135 | 3,368,504 | |
Specialty Retail - 1.6% | |||
Five Below, Inc. (a) | 65,660 | 11,538,432 | |
Lowe's Companies, Inc. | 67,499 | 11,262,208 | |
The Home Depot, Inc. | 5,607 | 1,518,488 | |
24,319,128 | |||
Textiles, Apparel & Luxury Goods - 1.5% | |||
Kontoor Brands, Inc. (e) | 313 | 11,306 | |
lululemon athletica, Inc. (a) | 45,161 | 14,843,517 | |
LVMH Moet Hennessy Louis Vuitton SE | 14,958 | 9,043,539 | |
23,898,362 | |||
TOTAL CONSUMER DISCRETIONARY | 323,255,516 | ||
CONSUMER STAPLES - 1.6% | |||
Beverages - 1.4% | |||
Diageo PLC | 240,963 | 9,673,988 | |
Kweichow Moutai Co. Ltd. (A Shares) | 4,500 | 1,481,515 | |
Monster Beverage Corp. (a) | 114,963 | 9,982,237 | |
PepsiCo, Inc. | 8,985 | 1,227,081 | |
22,364,821 | |||
Food & Staples Retailing - 0.1% | |||
Costco Wholesale Corp. | 2,911 | 1,025,924 | |
Food Products - 0.1% | |||
Lamb Weston Holdings, Inc. | 11,076 | 827,377 | |
TOTAL CONSUMER STAPLES | 24,218,122 | ||
ENERGY - 1.0% | |||
Oil, Gas & Consumable Fuels - 1.0% | |||
Cenovus Energy, Inc. (Canada) | 7,752 | 45,769 | |
Centennial Resource Development, Inc. Class A (a) | 41,766 | 97,732 | |
EOG Resources, Inc. | 600 | 30,576 | |
Reliance Industries Ltd. | 26,413 | 350,699 | |
Reliance Industries Ltd. | 396,200 | 10,016,204 | |
Reliance Industries Ltd. sponsored GDR (f) | 110,928 | 5,624,050 | |
16,165,030 | |||
FINANCIALS - 3.0% | |||
Banks - 1.8% | |||
Huntington Bancshares, Inc. | 1,109,755 | 14,676,510 | |
PacWest Bancorp | 56,227 | 1,697,493 | |
Signature Bank | 65,682 | 10,850,010 | |
27,224,013 | |||
Capital Markets - 0.8% | |||
London Stock Exchange Group PLC | 48,414 | 5,747,473 | |
S&P Global, Inc. | 21,074 | 6,680,458 | |
12,427,931 | |||
Consumer Finance - 0.4% | |||
Capital One Financial Corp. | 61,809 | 6,444,206 | |
TOTAL FINANCIALS | 46,096,150 | ||
HEALTH CARE - 6.3% | |||
Biotechnology - 2.3% | |||
Alnylam Pharmaceuticals, Inc. (a) | 31,628 | 4,759,381 | |
Amgen, Inc. | 16,893 | 4,078,477 | |
Arcutis Biotherapeutics, Inc. (a) | 19,126 | 521,949 | |
Ascendis Pharma A/S sponsored ADR (a) | 8,164 | 1,225,825 | |
ChemoCentryx, Inc. (a) | 10,959 | 624,773 | |
GenSight Biologics SA (a) | 9,931 | 81,349 | |
Global Blood Therapeutics, Inc. (a) | 76,929 | 3,855,681 | |
Ionis Pharmaceuticals, Inc. (a) | 1,524 | 91,547 | |
Neurocrine Biosciences, Inc. (a) | 41,552 | 4,560,332 | |
Regeneron Pharmaceuticals, Inc. (a) | 19,700 | 9,925,648 | |
Sarepta Therapeutics, Inc. (a) | 7,082 | 633,131 | |
Seer, Inc. (e) | 25,296 | 1,578,470 | |
Trevena, Inc. (a)(e) | 20,892 | 45,545 | |
Vertex Pharmaceuticals, Inc. (a) | 7,275 | 1,666,557 | |
Xencor, Inc. (a) | 56,682 | 2,593,202 | |
36,241,867 | |||
Health Care Equipment & Supplies - 1.8% | |||
Danaher Corp. | 3,032 | 721,131 | |
DexCom, Inc. (a) | 26,372 | 9,885,544 | |
Insulet Corp. (a) | 34,533 | 9,226,527 | |
Intuitive Surgical, Inc. (a) | 7,834 | 5,857,012 | |
Neuronetics, Inc. (a) | 1,811 | 31,928 | |
Outset Medical, Inc. | 2,044 | 105,941 | |
Pulmonx Corp. | 2,294 | 130,116 | |
Tandem Diabetes Care, Inc. (a) | 11,975 | 1,109,484 | |
27,067,683 | |||
Health Care Providers & Services - 0.6% | |||
Cigna Corp. | 8,827 | 1,915,900 | |
Guardant Health, Inc. (a) | 5,800 | 901,900 | |
Humana, Inc. | 15,866 | 6,078,423 | |
8,896,223 | |||
Health Care Technology - 0.0% | |||
Castlight Health, Inc. Class B (a) | 2,179 | 3,879 | |
Certara, Inc. | 15,427 | 530,997 | |
534,876 | |||
Life Sciences Tools & Services - 1.3% | |||
10X Genomics, Inc. (a) | 25,156 | 4,305,449 | |
Bruker Corp. | 143,154 | 8,287,185 | |
Maravai LifeSciences Holdings, Inc. | 23,068 | 803,689 | |
Nanostring Technologies, Inc. (a) | 92,500 | 6,477,775 | |
Sartorius Stedim Biotech | 1,988 | 832,325 | |
20,706,423 | |||
Pharmaceuticals - 0.3% | |||
AstraZeneca PLC: | |||
(United Kingdom) | 6,996 | 713,670 | |
sponsored ADR (e) | 80,474 | 4,071,984 | |
Elanco Animal Health, Inc. (a) | 4,139 | 120,155 | |
TherapeuticsMD, Inc. (a)(e) | 16,091 | 26,550 | |
4,932,359 | |||
TOTAL HEALTH CARE | 98,379,431 | ||
INDUSTRIALS - 2.7% | |||
Airlines - 0.4% | |||
Copa Holdings SA Class A | 80,279 | 6,211,186 | |
Commercial Services & Supplies - 0.2% | |||
Copart, Inc. (a) | 19,306 | 2,118,834 | |
Waste Connection, Inc. (United States) | 13,333 | 1,313,434 | |
3,432,268 | |||
Industrial Conglomerates - 0.1% | |||
Roper Technologies, Inc. | 1,998 | 785,034 | |
Professional Services - 0.4% | |||
Verisk Analytics, Inc. | 36,884 | 6,768,214 | |
Road & Rail - 1.6% | |||
CSX Corp. | 62,393 | 5,350,512 | |
Lyft, Inc. (a) | 132,490 | 5,890,505 | |
Uber Technologies, Inc. (a) | 260,911 | 13,288,197 | |
24,529,214 | |||
TOTAL INDUSTRIALS | 41,725,916 | ||
INFORMATION TECHNOLOGY - 42.4% | |||
IT Services - 2.9% | |||
Fidelity National Information Services, Inc. | 14,721 | 1,817,455 | |
Gartner, Inc. (a) | 71,993 | 10,936,457 | |
MasterCard, Inc. Class A | 33,965 | 10,742,790 | |
MongoDB, Inc. Class A (a) | 7,112 | 2,628,666 | |
PayPal Holdings, Inc. (a) | 53,899 | 12,629,075 | |
Reply SpA | 15,700 | 1,924,326 | |
Square, Inc. (a) | 11,200 | 2,418,752 | |
Twilio, Inc. Class A (a) | 2,600 | 934,518 | |
Visa, Inc. Class A | 2,816 | 544,192 | |
44,576,231 | |||
Semiconductors & Semiconductor Equipment - 11.0% | |||
Advanced Micro Devices, Inc. (a) | 98,414 | 8,428,175 | |
Analog Devices, Inc. | 27,720 | 4,083,988 | |
Applied Materials, Inc. | 28,980 | 2,801,786 | |
Array Technologies, Inc. | 12,465 | 508,073 | |
ASML Holding NV | 23,227 | 12,406,934 | |
Lam Research Corp. | 12,798 | 6,193,592 | |
Marvell Technology Group Ltd. | 472,746 | 24,327,509 | |
Micron Technology, Inc. (a) | 162,534 | 12,721,536 | |
NVIDIA Corp. | 72,751 | 37,800,692 | |
NXP Semiconductors NV | 156,653 | 25,138,107 | |
Qualcomm, Inc. | 162,841 | 25,448,791 | |
Skyworks Solutions, Inc. | 5,733 | 970,310 | |
Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR | 92,228 | 11,207,547 | |
172,037,040 | |||
Software - 16.4% | |||
Adobe, Inc. (a) | 39,691 | 18,209,040 | |
ANSYS, Inc. (a) | 9,509 | 3,369,704 | |
Aspen Technology, Inc. (a) | 75,507 | 10,110,387 | |
Autodesk, Inc. (a) | 23,939 | 6,641,397 | |
Cadence Design Systems, Inc. (a) | 6,902 | 899,952 | |
Dropbox, Inc. Class A (a) | 16,524 | 373,938 | |
Duck Creek Technologies, Inc. (a)(e) | 1,189 | 57,476 | |
Dynatrace, Inc. (a) | 19,672 | 816,585 | |
Elastic NV (a) | 78,486 | 11,926,733 | |
Epic Games, Inc. (c)(d) | 1,000 | 575,000 | |
HIVE Blockchain Technologies Ltd. (a) | 202,126 | 380,937 | |
Intuit, Inc. | 24,070 | 8,694,806 | |
Kuaishou Technology (a) | 14,900 | 221,004 | |
Manhattan Associates, Inc. (a) | 48,007 | 5,435,833 | |
Microsoft Corp. | 675,280 | 156,637,949 | |
NICE Systems Ltd. sponsored ADR (a) | 14,358 | 3,751,458 | |
Ping Identity Holding Corp. (a) | 164,217 | 4,911,730 | |
Salesforce.com, Inc. (a) | 60,449 | 13,634,876 | |
Splunk, Inc. (a) | 30,233 | 4,989,352 | |
Synopsys, Inc. (a) | 6,904 | 1,763,627 | |
Workday, Inc. Class A (a) | 8,165 | 1,857,782 | |
255,259,566 | |||
Technology Hardware, Storage & Peripherals - 12.1% | |||
Apple, Inc. | 1,356,488 | 179,002,158 | |
Samsung Electronics Co. Ltd. | 102,342 | 7,503,683 | |
Western Digital Corp. | 19,991 | 1,128,092 | |
187,633,933 | |||
TOTAL INFORMATION TECHNOLOGY | 659,506,770 | ||
MATERIALS - 0.8% | |||
Chemicals - 0.4% | |||
LG Chemical Ltd. | 5,739 | 4,705,571 | |
Livent Corp. (a)(e) | 127,846 | 2,329,354 | |
7,034,925 | |||
Paper & Forest Products - 0.4% | |||
Suzano Papel e Celulose SA (a) | 537,100 | 6,091,138 | |
TOTAL MATERIALS | 13,126,063 | ||
REAL ESTATE - 0.4% | |||
Equity Real Estate Investment Trusts (REITs) - 0.1% | |||
Equinix, Inc. | 2,930 | 2,168,083 | |
Real Estate Management & Development - 0.3% | |||
KE Holdings, Inc. ADR (a) | 73,487 | 4,343,082 | |
TOTAL REAL ESTATE | 6,511,165 | ||
TOTAL COMMON STOCKS | |||
(Cost $1,152,833,582) | 1,549,335,160 | ||
Preferred Stocks - 0.1% | |||
Convertible Preferred Stocks - 0.1% | |||
CONSUMER DISCRETIONARY - 0.0% | |||
Internet & Direct Marketing Retail - 0.0% | |||
Zomato Pvt Ltd.: | |||
Series B (b)(c)(d) | 1 | 5,353 | |
Series E (b)(c)(d) | 6,699 | 4 | |
Series J7 (c)(d) | 29 | 155,229 | |
160,586 | |||
CONSUMER STAPLES - 0.0% | |||
Food & Staples Retailing - 0.0% | |||
Roofoods Ltd. Series H (c)(d) | 400 | 351,101 | |
INFORMATION TECHNOLOGY - 0.1% | |||
IT Services - 0.1% | |||
ByteDance Ltd. Series E1 (c)(d) | 8,180 | 896,317 | |
TOTAL CONVERTIBLE PREFERRED STOCKS | 1,408,004 | ||
Nonconvertible Preferred Stocks - 0.0% | |||
CONSUMER DISCRETIONARY - 0.0% | |||
Automobiles - 0.0% | |||
Waymo LLC Series A2 (c)(d) | 2,467 | 211,834 | |
TOTAL PREFERRED STOCKS | |||
(Cost $1,581,485) | 1,619,838 | ||
Money Market Funds - 1.4% | |||
Fidelity Cash Central Fund 0.09% (g) | 13,228,550 | 13,231,196 | |
Fidelity Securities Lending Cash Central Fund 0.09% (g)(h) | 7,856,708 | 7,857,494 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $21,088,690) | 21,088,690 | ||
TOTAL INVESTMENT IN SECURITIES - 101.1% | |||
(Cost $1,175,503,757) | 1,572,043,688 | ||
NET OTHER ASSETS (LIABILITIES) - (1.1)% | (17,178,834) | ||
NET ASSETS - 100% | $1,554,864,854 |
Legend
(a) Non-income producing
(b) Security or a portion of the security purchased on a delayed delivery or when-issued basis.
(c) Restricted securities (including private placements) - 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 $2,301,893 or 0.1% 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 $5,624,050 or 0.4% 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 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 |
ByteDance Ltd. Series E1 | 11/18/20 | $896,317 |
Epic Games, Inc. | 7/13/20 - 7/30/20 | $575,000 |
Roofoods Ltd. Series H | 1/15/21 | $351,101 |
Waymo LLC Series A2 | 5/8/20 | $211,834 |
Zomato Pvt Ltd. | 1/22/21 - 1/29/21 | $82,294 |
Zomato Pvt Ltd. Series B | 1/22/21 | $4,114 |
Zomato Pvt Ltd. Series E | 1/22/21 | $3 |
Zomato Pvt Ltd. Series J7 | 12/9/20 | $118,116 |
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
Fidelity Cash Central Fund | $4,302 |
Fidelity Securities Lending Cash Central Fund | 8,551 |
Total | $12,853 |
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 January 31, 2021, 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 | $320,350,997 | $320,350,997 | $-- | $-- |
Consumer Discretionary | 323,627,936 | 314,104,922 | 9,043,539 | 479,475 |
Consumer Staples | 24,569,223 | 14,544,134 | 9,673,988 | 351,101 |
Energy | 16,165,030 | 16,165,030 | -- | -- |
Financials | 46,096,150 | 40,348,677 | 5,747,473 | -- |
Health Care | 98,379,431 | 97,665,761 | 713,670 | -- |
Industrials | 41,725,916 | 41,725,916 | -- | -- |
Information Technology | 660,403,087 | 658,710,766 | 221,004 | 1,471,317 |
Materials | 13,126,063 | 13,126,063 | -- | -- |
Real Estate | 6,511,165 | 6,511,165 | -- | -- |
Money Market Funds | 21,088,690 | 21,088,690 | -- | -- |
Total Investments in Securities: | $1,572,043,688 | $1,544,342,121 | $25,399,674 | $2,301,893 |
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 | 86.2% |
Netherlands | 3.9% |
Cayman Islands | 2.7% |
Bermuda | 1.6% |
United Kingdom | 1.0% |
India | 1.0% |
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
January 31, 2021 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $7,329,928) — See accompanying schedule: Unaffiliated issuers (cost $1,154,415,067) | $1,550,954,998 | |
Fidelity Central Funds (cost $21,088,690) | 21,088,690 | |
Total Investment in Securities (cost $1,175,503,757) | $1,572,043,688 | |
Receivable for investments sold | 4,987,000 | |
Receivable for fund shares sold | 856,393 | |
Dividends receivable | 290,681 | |
Distributions receivable from Fidelity Central Funds | 7,392 | |
Other receivables | 6,277 | |
Total assets | 1,578,191,431 | |
Liabilities | ||
Payable for investments purchased | ||
Regular delivery | $12,062,133 | |
Delayed delivery | 74,176 | |
Payable for fund shares redeemed | 2,038,165 | |
Accrued management fee | 646,839 | |
Other payables and accrued expenses | 647,489 | |
Collateral on securities loaned | 7,857,775 | |
Total liabilities | 23,326,577 | |
Net Assets | $1,554,864,854 | |
Net Assets consist of: | ||
Paid in capital | $1,149,459,149 | |
Total accumulated earnings (loss) | 405,405,705 | |
Net Assets | $1,554,864,854 | |
Net Asset Value, offering price and redemption price per share ($1,554,864,854 ÷ 90,214,650 shares) | $17.24 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended January 31, 2021 (Unaudited) | ||
Investment Income | ||
Dividends | $3,082,226 | |
Income from Fidelity Central Funds (including $8,551 from security lending) | 12,853 | |
Total income | 3,095,079 | |
Expenses | ||
Management fee | $3,088,015 | |
Independent trustees' fees and expenses | 2,668 | |
Interest | 94 | |
Miscellaneous | 1,777 | |
Total expenses before reductions | 3,092,554 | |
Expense reductions | (16,522) | |
Total expenses after reductions | 3,076,032 | |
Net investment income (loss) | 19,047 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 14,675,675 | |
Fidelity Central Funds | (150) | |
Foreign currency transactions | 21,294 | |
Total net realized gain (loss) | 14,696,819 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers (net of decrease in deferred foreign taxes of $209,078) | 209,155,378 | |
Fidelity Central Funds | (277) | |
Assets and liabilities in foreign currencies | (1,280) | |
Total change in net unrealized appreciation (depreciation) | 209,153,821 | |
Net gain (loss) | 223,850,640 | |
Net increase (decrease) in net assets resulting from operations | $223,869,687 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended January 31, 2021 (Unaudited) | Year ended July 31, 2020 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $19,047 | $635,271 |
Net realized gain (loss) | 14,696,819 | (6,037) |
Change in net unrealized appreciation (depreciation) | 209,153,821 | 186,689,154 |
Net increase (decrease) in net assets resulting from operations | 223,869,687 | 187,318,388 |
Distributions to shareholders | (4,991,250) | (841,481) |
Share transactions | ||
Proceeds from sales of shares | 508,136,981 | 1,008,628,171 |
Reinvestment of distributions | 4,991,250 | 841,481 |
Cost of shares redeemed | (203,252,914) | (170,885,819) |
Net increase (decrease) in net assets resulting from share transactions | 309,875,317 | 838,583,833 |
Total increase (decrease) in net assets | 528,753,754 | 1,025,060,740 |
Net Assets | ||
Beginning of period | 1,026,111,100 | 1,050,360 |
End of period | $1,554,864,854 | $1,026,111,100 |
Other Information | ||
Shares | ||
Sold | 30,740,481 | 85,930,200 |
Issued in reinvestment of distributions | 329,033 | 74,239 |
Redeemed | (12,682,162) | (14,277,141) |
Net increase (decrease) | 18,387,352 | 71,727,298 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity OTC K6 Portfolio
Six months ended (Unaudited) January 31, | Years endedJuly 31, | ||
2021 | 2020 | 2019 A | |
Selected Per–Share Data | |||
Net asset value, beginning of period | $14.29 | $10.50 | $10.00 |
Income from Investment Operations | |||
Net investment income (loss)B | –C | .02 | –C |
Net realized and unrealized gain (loss) | 3.02 | 3.81 | .50 |
Total from investment operations | 3.02 | 3.83 | .50 |
Distributions from net investment income | (.01) | (.01) | – |
Distributions from net realized gain | (.06) | (.02) | – |
Total distributions | (.07) | (.04)D | – |
Net asset value, end of period | $17.24 | $14.29 | $10.50 |
Total ReturnE,F | 21.18% | 36.54% | 5.00% |
Ratios to Average Net AssetsG,H | |||
Expenses before reductions | .50%I | .50% | .50%I |
Expenses net of fee waivers, if any | .50%I | .50% | .50%I |
Expenses net of all reductions | .50%I | .49% | .50%I |
Net investment income (loss) | - %I,J | .16% | .08%I |
Supplemental Data | |||
Net assets, end of period (000 omitted) | $1,554,865 | $1,026,111 | $1,050 |
Portfolio turnover rateK | 32%I,L | 102%L | 5%M |
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 distributions per share do not sum due to rounding.
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 mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment advisor, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
I Annualized
J Amount represents less than .005%.
K Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
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 (Unaudited)
For the period ended January 31, 2021
1. Organization.
Fidelity OTC K6 Portfolio (the Fund) is a non-diversified 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 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 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 - Investment 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 January 31, 2021 is included at the end of the Fund's Schedule of Investments.
Foreign Currency. Certain Funds 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. 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 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) 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 | $407,309,916 |
Gross unrealized depreciation | (14,966,591) |
Net unrealized appreciation (depreciation) | $392,343,325 |
Tax cost | $1,179,700,363 |
Due to large subscriptions in a prior period, the Fund is subject to an annual limit on its use of some of its unrealized capital losses to offset capital gains in future periods. If those capital losses are realized and the limitation prevents the Fund from using any of those capital losses in a future period, those capital losses will be available to offset capital gains in subsequent periods.
Delayed Delivery Transactions and When-Issued Securities. During the period, certain Funds 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. Securities purchased on a delayed delivery or when-issued basis are identified as such in the Schedule of Investments. Compensation for interest forgone in the purchase of a delayed delivery or when-issued debt security may be received. With respect to purchase commitments, each applicable Fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Payables and receivables associated with the purchases and sales of delayed delivery securities having the same coupon, settlement date and broker are offset. Delayed delivery or when-issued securities that have been purchased from and sold to different brokers are reflected as both payables and receivables in the Statement of Assets and Liabilities under the caption "Delayed delivery", as applicable. 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 (including Private Placements). 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 and in-kind transactions, are noted in the table below.
Purchases ($) | Sales ($) | |
Fidelity OTC K6 Portfolio | 414,492,265 | 191,642,981 |
Unaffiliated Exchanges In-Kind. During the period, the Fund received investments, and cash, valued at $89,502,067 in exchange for 5,237,590 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 $617,860,752 in exchange for 50,852,272 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 LLC (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. A portion of portfolio transactions were placed 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 as follows:
Amount | |
Fidelity OTC K6 Portfolio | $2,975 |
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 LLC (FMR), or other affiliated entities of FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the Fund to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. 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 | |
Fidelity OTC K6 Portfolio | Borrower | $10,416,000 | .33% | $94 |
Interfund Trades. Funds 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, and amounted to $97,040,631 and $10,915,134, respectively.
Prior Fiscal Year Affiliated Exchanges In-Kind. During the prior period, the Fund received investments, and cash valued at $170,107,551 in exchange for 16,726,406 shares of the Fund. The amount of in-kind exchanges is included in share transactions in the accompanying Statement of Changes in Net Assets.
6. Committed Line of Credit.
Certain Funds participate 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 participating funds have agreed to pay commitment fees on their pro-rata portion of the line of credit, which are reflected in Miscellaneous expenses on the Statement of Operations, and are listed below. Effective during January 2021, commitment fees are borne by the investment advisor.
Amount | |
Fidelity OTC K6 Portfolio | $1,165 |
During the period, there were no borrowings on this line of credit.
7. Security Lending.
Funds lend portfolio securities from time to time in order to earn additional income. Lending agents are used, including National Financial Services (NFS), an affiliate of the investment adviser. Pursuant to a securities lending agreement, NFS will receive a fee, which is capped at 9.9% of a fund's daily lending revenue, for its services as lending agent. A fund may lend securities to certain qualified borrowers, including NFS. On the settlement date of the loan, a 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 a fund and any additional required collateral is delivered to a fund on the next business day. A 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, a fund may apply collateral received from the borrower against the obligation. A 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. Any loaned securities are identified as such in the Schedule of Investments, and the value of loaned securities and cash collateral at period end, as applicable, are presented in the 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. Affiliated security lending activity, if any, was as follows:
Total Security Lending Income Fees Paid to NFS | Security Lending Income From Securities Loaned to NFS | Value of Securities Loaned to NFS at Period End | |
Fidelity OTC K6 Portfolio | $706 | $310 | $– |
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 expenses. This amount totaled $16,519 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 by $3.
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.
10. Subsequent Event.
Unaffiliated Exchanges In-Kind. Effective after the close of business on January 31, 2021, the Fund received investments and cash valued at $537,551,135 in exchange for 28,931,708 shares of the Fund.
11. Coronavirus (COVID-19) Pandemic.
An outbreak of COVID-19 first detected in China during December 2019 has since spread globally and was declared a pandemic by the World Health Organization during March 2020. Developments that disrupt global economies and financial markets, such as the COVID-19 pandemic, may magnify factors that affect the Fund's performance.
Shareholder Expense Example
As a shareholder, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or redemption proceeds, as applicable and (2) ongoing costs, which generally include 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 a fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (August 1, 2020 to January 31, 2021).
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 for a class/Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. If any fund is a shareholder of any underlying mutual funds or exchange-traded funds (ETFs) (the Underlying Funds), such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses incurred presented in the table. These fees and expenses are not included in the 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 actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the 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. If any fund is a shareholder of any Underlying Funds, such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses as presented in the table. These fees and expenses are not included in the 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 August 1, 2020 | Ending Account Value January 31, 2021 | Expenses Paid During Period-B August 1, 2020 to January 31, 2021 | |
Fidelity OTC K6 Portfolio | .50% | |||
Actual | $1,000.00 | $1,211.80 | $2.79 | |
Hypothetical-C | $1,000.00 | $1,022.68 | $2.55 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/ 365 (to reflect the one-half year period). The fees and expenses of any Underlying Funds are not included in each annualized expense ratio.
C 5% return per year before expenses
Board Approval of Investment Advisory Contracts
Fidelity OTC K6 Portfolio
At its January 2021 meeting, the Board of Trustees, including the Independent Trustees (together, the Board), voted to continue the management contract with Fidelity Management & Research Company LLC (FMR), and the sub-advisory agreements and sub-subadvisory agreements, in each case, where applicable (together, the Advisory Contracts) for the fund for four months from February 1, 2021 through May 31, 2021, in connection with changes to the Board's meeting calendar.The Board considered that the approval of the fund's Advisory Contracts will not result in any changes in (i) the investment process or strategies employed in the management of the fund's assets; (ii) the fees and expenses paid by shareholders; (iii) the nature, extent or quality of services provided under the fund's Advisory Contracts; or (iv) the day-to-day management of the fund or the persons primarily responsible for such management. The Board also considered that since its last approval of the fund's Advisory Contracts, FMR had provided additional information on the fund in support of the annual contract renewal process, including competitive analyses on total expenses and management fees and in-depth reviews of fund performance and fund profitability information. The Board also considered the findings of certain ad hoc committees that had been previously formed to discuss matters relevant to all of the Fidelity funds, including economies of scale, fall-out benefits and retail vs. institutional funds. The Board concluded that the fund's Advisory Contracts are fair and reasonable, and that the fund's Advisory Contracts should be renewed, without modification, through May 31, 2021, with the understanding that the Board will consider the annual renewal for a full one year period in May 2021.In connection with its consideration of future renewals of the fund's Advisory Contracts, the Board will consider: (i) the nature, extent and quality of services provided to the funds, including shareholder and administrative services and investment performance; (ii) the competitiveness of the management fee and total expenses for the fund; (iii) the costs of the services and profitability, including the revenues earned and the expenses incurred in conducting the business of developing, marketing, distributing, managing, administering, and servicing the fund and its shareholders, to the extent applicable; and (iv) whether there have been economies of scale in respect of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is the potential for realization of any further economies.Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board ultimately concluded that the fund's management fee structure is fair and reasonable, and that the continuation of the fund's Advisory Contracts should be approved for four months from February 1, 2021 through May 31, 2021.OTC-K6-SANN-0321
1.9893896.101
Item 2.
Code of Ethics
Not applicable.
Item 3.
Audit Committee Financial Expert
Not applicable.
Item 4.
Principal Accountant Fees and Services
Not applicable.
Item 5.
Audit Committee of Listed Registrants
Not applicable.
Item 6.
Investments
(a)
Not applicable.
(b)
Not applicable
Item 7.
Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not applicable.
Item 8.
Portfolio Managers of Closed-End Management Investment Companies
Not applicable.
Item 9.
Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
Not applicable.
Item 10.
Submission of Matters to a Vote of Security Holders
There were no material changes to the procedures by which shareholders may recommend nominees to the Fidelity Securities Fund’s Board of Trustees.
Item 11.
Controls and Procedures
(a)(i) The President and Treasurer and the Chief Financial Officer have concluded that the Fidelity Securities Fund’s (the “Trust”) disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act) provide reasonable assurances that
material information relating to the Trust is made known to them by the appropriate persons, based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this report.
(a)(ii) There was no change in the Trust’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act) that occurred during the 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) | Not applicable. |
(a) | (2) | |
(a) | (3) | Not applicable. |
(b) |
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: | March 23, 2021 |
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: | March 23, 2021 |
By: | /s/John J. Burke III |
John J. Burke III | |
Chief Financial Officer | |
Date: | March 23, 2021 |