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, 2022 |
Item 1.
Reports to Stockholders
Fidelity Flex® Funds
Fidelity Flex® Large Cap Growth Fund
Semi-Annual Report
January 31, 2022
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Contents
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Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2022 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 COVID-19 emerged as a public health emergency that had a major influence on financial markets, primarily based on its impact on the global economy and corporate earnings. On March 11, 2020, the World Health Organization declared the COVID-19 outbreak a pandemic, citing sustained risk of further global spread. The pandemic prompted a number of measures to limit the spread of COVID-19, 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. To help stem the turmoil, the U.S. government took unprecedented action – in concert with the U.S. Federal Reserve and central banks around the world – to help support consumers, businesses, and the broader economy, and to limit disruption to the financial system.
In general, the overall impact of the pandemic lessened in 2021, amid a resilient economy and widespread distribution of three COVID-19 vaccines granted emergency use authorization from the U.S. Food and Drug Administration (FDA) early in the year. Still, the situation remains dynamic, and the extent and duration of its influence on financial markets and the economy is highly uncertain, due in part to a recent spike in cases based on highly contagious variants of the coronavirus.
Extreme events such as the COVID-19 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 continue to take extra steps to be responsive to customer needs. We encourage you to visit us online, where we offer ongoing updates, commentary, and analysis on the markets and our funds.
Investment Summary (Unaudited)
Top Ten Stocks as of January 31, 2022
% of fund's net assets | |
Apple, Inc. | 14.3 |
Microsoft Corp. | 8.8 |
Amazon.com, Inc. | 7.7 |
Alphabet, Inc. Class A | 7.2 |
NVIDIA Corp. | 6.3 |
Meta Platforms, Inc. Class A | 4.9 |
Tesla, Inc. | 4.2 |
Marvell Technology, Inc. | 2.5 |
Lyft, Inc. | 1.7 |
Lowe's Companies, Inc. | 1.4 |
59.0 |
Top Five Market Sectors as of January 31, 2022
% of fund's net assets | |
Information Technology | 43.5 |
Consumer Discretionary | 26.9 |
Communication Services | 15.3 |
Industrials | 4.9 |
Health Care | 4.3 |
Asset Allocation (% of fund's net assets)
As of January 31, 2022* | ||
Stocks | 97.9% | |
Convertible Securities | 1.5% | |
Other Investments | 0.1% | |
Short-Term Investments and Net Other Assets (Liabilities) | 0.5% |
* Foreign investments - 6.6%
Schedule of Investments January 31, 2022 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.8% | |||
Shares | Value | ||
COMMUNICATION SERVICES - 15.2% | |||
Entertainment - 2.0% | |||
Endeavor Group Holdings, Inc. (a) | 1,187 | $37,236 | |
Endeavor Group Holdings, Inc. Class A (b) | 1,768 | 55,462 | |
Netflix, Inc. (a) | 2,542 | 1,085,790 | |
Roblox Corp. (a) | 1,968 | 129,612 | |
Roku, Inc. Class A (a) | 834 | 136,818 | |
Sea Ltd. ADR (a) | 5,088 | 764,777 | |
2,209,695 | |||
Interactive Media & Services - 13.1% | |||
Alphabet, Inc. Class A (a) | 2,925 | 7,915,255 | |
Bumble, Inc. | 1,049 | 30,956 | |
Meta Platforms, Inc. Class A (a) | 17,153 | 5,373,349 | |
Snap, Inc. Class A (a) | 26,307 | 856,030 | |
Tencent Holdings Ltd. | 1,382 | 86,599 | |
ZipRecruiter, Inc. (a) | 1,958 | 42,469 | |
14,304,658 | |||
Media - 0.1% | |||
Criteo SA sponsored ADR (a) | 636 | 21,497 | |
DISH Network Corp. Class A (a) | 2,415 | 75,831 | |
97,328 | |||
TOTAL COMMUNICATION SERVICES | 16,611,681 | ||
CONSUMER DISCRETIONARY - 26.5% | |||
Automobiles - 4.9% | |||
Ford Motor Co. | 3,212 | 65,204 | |
General Motors Co. (a) | 1,933 | 101,927 | |
Neutron Holdings, Inc. (a)(b)(c) | 9,174 | 642 | |
Rad Power Bikes, Inc. (a)(b)(c) | 1,815 | 17,395 | |
Rivian Automotive, Inc. | 6,096 | 360,676 | |
Tesla, Inc. (a) | 4,897 | 4,587,118 | |
XPeng, Inc.: | |||
ADR (a) | 5,002 | 175,520 | |
Class A | 1,108 | 19,325 | |
5,327,807 | |||
Diversified Consumer Services - 0.0% | |||
Mister Car Wash, Inc. | 1,212 | 20,846 | |
Hotels, Restaurants & Leisure - 3.9% | |||
Airbnb, Inc. Class A (a) | 7,508 | 1,156,007 | |
Booking Holdings, Inc. (a) | 57 | 139,999 | |
Caesars Entertainment, Inc. (a) | 5,090 | 387,553 | |
Chipotle Mexican Grill, Inc. (a) | 174 | 258,491 | |
Churchill Downs, Inc. | 1,018 | 214,085 | |
Dutch Bros, Inc. (d) | 1,157 | 60,338 | |
Evolution AB (e) | 115 | 14,308 | |
Expedia, Inc. (a) | 1,194 | 218,848 | |
Flutter Entertainment PLC (a) | 100 | 15,237 | |
Hilton Worldwide Holdings, Inc. (a) | 2,004 | 290,800 | |
Marriott International, Inc. Class A (a) | 2,584 | 416,334 | |
MGM Resorts International | 2,522 | 107,740 | |
Penn National Gaming, Inc. (a) | 16,246 | 740,980 | |
Planet Fitness, Inc. (a) | 265 | 23,490 | |
Sweetgreen, Inc. | 3,497 | 95,206 | |
Sweetgreen, Inc. Class A | 2,035 | 61,559 | |
Vail Resorts, Inc. | 220 | 60,962 | |
4,261,937 | |||
Household Durables - 0.2% | |||
Lennar Corp. Class A | 695 | 66,796 | |
Tempur Sealy International, Inc. | 2,903 | 115,568 | |
182,364 | |||
Internet & Direct Marketing Retail - 9.0% | |||
Amazon.com, Inc. (a) | 2,793 | 8,355,176 | |
BARK, Inc. (a) | 4,794 | 18,073 | |
BARK, Inc. (b) | 2,983 | 11,246 | |
Cazoo Group Ltd. | 6,756 | 30,422 | |
Chewy, Inc. (a) | 3,190 | 151,876 | |
Deliveroo PLC Class A (a)(e) | 14,772 | 31,035 | |
Delivery Hero AG (a)(e) | 149 | 11,501 | |
Doordash, Inc. (a) | 1,138 | 129,152 | |
Etsy, Inc. (a) | 965 | 151,582 | |
FSN E-Commerce Ventures Private Ltd. (a)(b) | 30,000 | 564,721 | |
Global-e Online Ltd. (a) | 1,004 | 35,853 | |
JD.com, Inc.: | |||
Class A (a) | 118 | 4,472 | |
sponsored ADR (a) | 351 | 26,283 | |
Overstock.com, Inc. (a) | 646 | 30,969 | |
Pinduoduo, Inc. ADR (a) | 797 | 47,692 | |
Wayfair LLC Class A (a) | 1,574 | 245,418 | |
Zomato Ltd. (a)(b) | 46,900 | 51,166 | |
9,896,637 | |||
Leisure Products - 0.0% | |||
Peloton Interactive, Inc. Class A (a) | 1,446 | 39,519 | |
Multiline Retail - 0.4% | |||
Dollar Tree, Inc. (a) | 2,715 | 356,262 | |
Ollie's Bargain Outlet Holdings, Inc. (a) | 1,964 | 94,154 | |
450,416 | |||
Specialty Retail - 5.0% | |||
American Eagle Outfitters, Inc. | 19,810 | 452,262 | |
Aritzia, Inc. (a) | 2,361 | 109,529 | |
Bath & Body Works, Inc. | 1,019 | 57,135 | |
Burlington Stores, Inc. (a) | 1,462 | 346,392 | |
Carvana Co. Class A (a) | 3,532 | 572,396 | |
Citi Trends, Inc. (a) | 634 | 30,888 | |
Dick's Sporting Goods, Inc. | 2,394 | 276,268 | |
Fanatics, Inc. Class A (b)(c) | 3,099 | 210,236 | |
Five Below, Inc. (a) | 1,987 | 325,868 | |
Floor & Decor Holdings, Inc. Class A (a) | 1,903 | 206,894 | |
Foot Locker, Inc. | 2,095 | 93,605 | |
JD Sports Fashion PLC | 11,315 | 29,014 | |
Lowe's Companies, Inc. | 6,379 | 1,514,056 | |
RH (a) | 1,089 | 438,671 | |
Signet Jewelers Ltd. | 1,102 | 94,915 | |
The Children's Place, Inc. (a) | 145 | 10,259 | |
TJX Companies, Inc. | 3,594 | 258,660 | |
Victoria's Secret & Co. (a) | 4,969 | 277,419 | |
Warby Parker, Inc. (a)(d) | 4,636 | 172,320 | |
5,476,787 | |||
Textiles, Apparel & Luxury Goods - 3.1% | |||
Allbirds, Inc.: | |||
Class A | 400 | 4,944 | |
Class B | 500 | 5,562 | |
Capri Holdings Ltd. (a) | 9,625 | 578,174 | |
Crocs, Inc. (a) | 3,242 | 332,694 | |
Deckers Outdoor Corp. (a) | 1,347 | 431,350 | |
Hermes International SCA | 20 | 30,028 | |
lululemon athletica, Inc. (a) | 1,757 | 586,416 | |
LVMH Moet Hennessy Louis Vuitton SE | 203 | 166,740 | |
Moncler SpA | 1,341 | 86,065 | |
NIKE, Inc. Class B | 4,843 | 717,103 | |
On Holding AG | 1,550 | 40,874 | |
PVH Corp. | 2,479 | 235,530 | |
Tapestry, Inc. | 4,448 | 168,802 | |
3,384,282 | |||
TOTAL CONSUMER DISCRETIONARY | 29,040,595 | ||
CONSUMER STAPLES - 0.6% | |||
Beverages - 0.5% | |||
Boston Beer Co., Inc. Class A (a) | 350 | 147,291 | |
Celsius Holdings, Inc. (a) | 7,254 | 346,233 | |
493,524 | |||
Food & Staples Retailing - 0.0% | |||
Blink Health, Inc. Series A1 (a)(b)(c) | 99 | 3,780 | |
Food Products - 0.0% | |||
Sovos Brands, Inc. | 565 | 8,289 | |
The Real Good Food Co., Inc. | 500 | 2,970 | |
The Real Good Food Co., Inc. Class A | 2,968 | 15,867 | |
27,126 | |||
Household Products - 0.1% | |||
Procter & Gamble Co. | 299 | 47,975 | |
Personal Products - 0.0% | |||
Olaplex Holdings, Inc. | 1,647 | 35,970 | |
Tobacco - 0.0% | |||
JUUL Labs, Inc. Class A (a)(b)(c) | 217 | 9,400 | |
TOTAL CONSUMER STAPLES | 617,775 | ||
ENERGY - 2.1% | |||
Energy Equipment & Services - 0.0% | |||
Halliburton Co. | 1,222 | 37,564 | |
Oil, Gas & Consumable Fuels - 2.1% | |||
Cenovus Energy, Inc. (Canada) | 3,090 | 44,947 | |
Cheniere Energy, Inc. | 482 | 53,936 | |
Denbury, Inc. (a) | 1,611 | 121,051 | |
Devon Energy Corp. | 2,678 | 135,426 | |
Diamondback Energy, Inc. | 1,750 | 220,780 | |
EOG Resources, Inc. | 2,426 | 270,450 | |
Hess Corp. | 3,565 | 329,014 | |
Marathon Oil Corp. | 1,163 | 22,644 | |
PDC Energy, Inc. | 203 | 12,032 | |
Phillips 66 Co. | 1,313 | 111,329 | |
Pioneer Natural Resources Co. | 728 | 159,352 | |
Range Resources Corp. (a) | 375 | 7,219 | |
Reliance Industries Ltd. | 19,115 | 616,408 | |
Reliance Industries Ltd. sponsored GDR (e) | 697 | 44,841 | |
Tourmaline Oil Corp. | 793 | 28,273 | |
Valero Energy Corp. | 1,408 | 116,822 | |
2,294,524 | |||
TOTAL ENERGY | 2,332,088 | ||
FINANCIALS - 1.0% | |||
Banks - 0.4% | |||
Bank of America Corp. | 2,138 | 98,647 | |
Kotak Mahindra Bank Ltd. (a) | 733 | 18,384 | |
Wells Fargo & Co. | 5,351 | 287,884 | |
404,915 | |||
Capital Markets - 0.3% | |||
Goldman Sachs Group, Inc. | 424 | 150,384 | |
Morgan Stanley | 1,840 | 188,674 | |
339,058 | |||
Consumer Finance - 0.1% | |||
American Express Co. | 690 | 124,076 | |
LendingClub Corp. (a) | 113 | 2,120 | |
126,196 | |||
Diversified Financial Services - 0.2% | |||
Ant International Co. Ltd. Class C (a)(b)(c) | 3,606 | 6,419 | |
Sonder Holdings, Inc. (b) | 2,437 | 20,880 | |
Sonder Holdings, Inc. | 775 | 6,640 | |
Sonder Holdings, Inc. | 1,070 | 9,168 | |
Sonder Holdings, Inc.: | |||
rights 1/18/27 (a)(c) | 23 | 123 | |
rights 1/18/27 (a)(c) | 22 | 94 | |
rights 1/18/27 (a)(c) | 22 | 75 | |
rights 1/18/27 (a)(c) | 22 | 61 | |
rights 1/18/27 (a)(c) | 21 | 47 | |
rights 1/18/27 (a)(c) | 21 | 38 | |
WeWork, Inc. (a) | 10,992 | 81,671 | |
WeWork, Inc. (b) | 8,492 | 63,096 | |
188,312 | |||
Thrifts & Mortgage Finance - 0.0% | |||
Housing Development Finance Corp. Ltd. | 365 | 12,462 | |
TOTAL FINANCIALS | 1,070,943 | ||
HEALTH CARE - 4.3% | |||
Biotechnology - 0.7% | |||
ADC Therapeutics SA (a) | 696 | 11,059 | |
Alnylam Pharmaceuticals, Inc. (a) | 1,287 | 177,091 | |
Arcutis Biotherapeutics, Inc. (a) | 691 | 10,441 | |
Argenx SE ADR (a) | 108 | 29,080 | |
Ascendis Pharma A/S sponsored ADR (a) | 382 | 46,466 | |
Avidity Biosciences, Inc. (a) | 300 | 4,986 | |
Biohaven Pharmaceutical Holding Co. Ltd. (a) | 179 | 23,784 | |
Cerevel Therapeutics Holdings (a) | 999 | 26,014 | |
Day One Biopharmaceuticals, Inc. (a)(d) | 1,528 | 22,538 | |
Erasca, Inc. | 756 | 8,959 | |
Generation Bio Co. (a) | 1,151 | 7,482 | |
Horizon Therapeutics PLC (a) | 2,235 | 208,593 | |
Instil Bio, Inc. (a) | 1,340 | 15,557 | |
Karuna Therapeutics, Inc. (a) | 173 | 19,213 | |
Recursion Pharmaceuticals, Inc. (a) | 1,166 | 13,805 | |
Relay Therapeutics, Inc. (a) | 546 | 12,083 | |
Revolution Medicines, Inc. (a) | 903 | 19,433 | |
Turning Point Therapeutics, Inc. (a) | 849 | 31,608 | |
Twist Bioscience Corp. (a) | 75 | 4,457 | |
Verve Therapeutics, Inc. | 1,100 | 31,702 | |
Xencor, Inc. (a) | 200 | 6,874 | |
731,225 | |||
Health Care Equipment & Supplies - 1.3% | |||
Axonics Modulation Technologies, Inc. (a) | 1,343 | 63,698 | |
Boston Scientific Corp. (a) | 849 | 36,422 | |
DexCom, Inc. (a) | 935 | 402,499 | |
Edwards Lifesciences Corp. (a) | 202 | 22,058 | |
Figs, Inc. Class A (a)(d) | 1,441 | 32,394 | |
Il Makiage Ltd. (b)(c) | 24 | 20,660 | |
Insulet Corp. (a) | 526 | 130,448 | |
Intuitive Surgical, Inc. (a) | 1,531 | 435,080 | |
Outset Medical, Inc. (a) | 559 | 20,789 | |
Shockwave Medical, Inc. (a) | 788 | 114,236 | |
Tandem Diabetes Care, Inc. (a) | 1,122 | 132,519 | |
1,410,803 | |||
Health Care Providers & Services - 0.5% | |||
agilon health, Inc. (a) | 1,568 | 25,997 | |
Alignment Healthcare, Inc. (a) | 1,793 | 13,627 | |
Centene Corp. (a) | 407 | 31,648 | |
Guardant Health, Inc. (a) | 2,036 | 141,604 | |
LifeStance Health Group, Inc. | 5,584 | 42,606 | |
Surgery Partners, Inc. (a) | 1,083 | 46,212 | |
UnitedHealth Group, Inc. | 443 | 209,349 | |
511,043 | |||
Health Care Technology - 0.1% | |||
Certara, Inc. (a) | 800 | 21,384 | |
Doximity, Inc. | 1,636 | 74,553 | |
GoodRx Holdings, Inc. (a) | 477 | 11,453 | |
Medlive Technology Co. Ltd. (e) | 4,500 | 7,306 | |
MultiPlan Corp. warrants (a)(b) | 212 | 86 | |
114,782 | |||
Life Sciences Tools & Services - 0.5% | |||
10X Genomics, Inc. (a) | 415 | 39,952 | |
23andMe Holding Co. Class B (e) | 778 | 3,633 | |
Avantor, Inc. (a) | 2,411 | 90,003 | |
Bio-Rad Laboratories, Inc. Class A (a) | 61 | 36,584 | |
Danaher Corp. | 845 | 241,493 | |
ICON PLC (a) | 201 | 53,410 | |
Maravai LifeSciences Holdings, Inc. (a) | 576 | 16,658 | |
Nanostring Technologies, Inc. (a) | 490 | 17,013 | |
Olink Holding AB ADR (a) | 1,504 | 24,335 | |
Pacific Biosciences of California, Inc. (a) | 609 | 6,809 | |
Seer, Inc. (a) | 924 | 14,535 | |
Thermo Fisher Scientific, Inc. | 91 | 52,898 | |
597,323 | |||
Pharmaceuticals - 1.2% | |||
Asymchem Laboratories Tianjin Co. Ltd. (H Shares) (e) | 262 | 9,193 | |
Eli Lilly & Co. | 2,590 | 635,560 | |
GH Research PLC | 594 | 10,086 | |
Intra-Cellular Therapies, Inc. (a) | 838 | 39,797 | |
Nuvation Bio, Inc. (a) | 1,450 | 8,845 | |
Zoetis, Inc. Class A | 3,186 | 636,531 | |
1,340,012 | |||
TOTAL HEALTH CARE | 4,705,188 | ||
INDUSTRIALS - 4.6% | |||
Aerospace & Defense - 0.3% | |||
Airbus Group NV (a) | 452 | 57,717 | |
Howmet Aerospace, Inc. | 2,239 | 69,611 | |
Space Exploration Technologies Corp. Class A (a)(b)(c) | 100 | 56,000 | |
The Boeing Co. (a) | 802 | 160,592 | |
343,920 | |||
Airlines - 0.1% | |||
Delta Air Lines, Inc. (a) | 401 | 15,916 | |
JetBlue Airways Corp. (a) | 1,104 | 16,152 | |
Ryanair Holdings PLC sponsored ADR (a) | 477 | 53,243 | |
85,311 | |||
Building Products - 0.0% | |||
The AZEK Co., Inc. (a) | 1,006 | 33,228 | |
Commercial Services & Supplies - 0.1% | |||
ACV Auctions, Inc. Class A (a) | 3,908 | 51,820 | |
Electrical Equipment - 0.4% | |||
Acuity Brands, Inc. | 1,746 | 334,411 | |
Array Technologies, Inc. (a) | 2,516 | 26,519 | |
Generac Holdings, Inc. (a) | 38 | 10,730 | |
Sunrun, Inc. (a) | 1,087 | 28,186 | |
399,846 | |||
Industrial Conglomerates - 0.2% | |||
General Electric Co. | 2,820 | 266,434 | |
Machinery - 0.2% | |||
AutoStore Holdings Ltd. | 7,757 | 21,897 | |
Deere & Co. | 397 | 149,431 | |
171,328 | |||
Professional Services - 0.0% | |||
KBR, Inc. | 59 | 2,561 | |
Recruit Holdings Co. Ltd. | 873 | 43,151 | |
45,712 | |||
Road & Rail - 3.3% | |||
Avis Budget Group, Inc. (a) | 938 | 165,257 | |
Bird Global, Inc. (b) | 4,242 | 14,974 | |
Bird Global, Inc. | 11,663 | 37,053 | |
Bird Global, Inc.: | |||
rights 11/4/26 (a)(c) | 452 | 746 | |
rights 11/4/26 (a)(c) | 452 | 411 | |
rights 11/4/26 (a)(c) | 452 | 212 | |
Class A (a)(d) | 7,660 | 27,040 | |
Hertz Global Holdings, Inc. | 4,296 | 82,741 | |
Lyft, Inc. (a) | 48,165 | 1,855,316 | |
Uber Technologies, Inc. (a) | 37,618 | 1,406,913 | |
3,590,663 | |||
Transportation Infrastructure - 0.0% | |||
Delhivery Private Ltd. (b)(c) | 5,700 | 44,885 | |
TOTAL INDUSTRIALS | 5,033,147 | ||
INFORMATION TECHNOLOGY - 42.7% | |||
Communications Equipment - 0.2% | |||
Arista Networks, Inc. (a) | 1,726 | 214,559 | |
IT Services - 3.0% | |||
Block, Inc. Class A (a) | 2,083 | 254,730 | |
Digitalocean Holdings, Inc. (a) | 2,961 | 169,784 | |
Endava PLC ADR (a) | 243 | 29,554 | |
Flywire Corp. (a) | 2,867 | 80,821 | |
MasterCard, Inc. Class A | 1,134 | 438,155 | |
MongoDB, Inc. Class A (a) | 438 | 177,438 | |
Okta, Inc. (a) | 1,154 | 228,365 | |
PayPal Holdings, Inc. (a) | 4,553 | 782,843 | |
Shift4 Payments, Inc. (a) | 1,613 | 85,037 | |
Shopify, Inc. Class A (a) | 302 | 291,499 | |
TaskUs, Inc. | 1,786 | 57,152 | |
TDCX, Inc. ADR | 2,090 | 34,255 | |
Thoughtworks Holding, Inc. | 1,413 | 30,266 | |
Twilio, Inc. Class A (a) | 2,180 | 449,342 | |
Visa, Inc. Class A | 543 | 122,810 | |
3,232,051 | |||
Semiconductors & Semiconductor Equipment - 11.7% | |||
Advanced Micro Devices, Inc. (a) | 1,148 | 131,159 | |
Allegro MicroSystems LLC (a) | 519 | 14,729 | |
ASML Holding NV | 126 | 85,327 | |
Cirrus Logic, Inc. (a) | 1,357 | 121,370 | |
Enphase Energy, Inc. (a) | 1 | 140 | |
GlobalFoundries, Inc. | 5,215 | 257,308 | |
Lam Research Corp. | 126 | 74,330 | |
Marvell Technology, Inc. | 38,252 | 2,731,193 | |
Microchip Technology, Inc. | 254 | 19,680 | |
NVIDIA Corp. | 28,087 | 6,877,383 | |
NXP Semiconductors NV | 6,790 | 1,394,938 | |
onsemi (a) | 2,956 | 174,404 | |
Qualcomm, Inc. | 1,248 | 219,348 | |
Silergy Corp. | 216 | 29,219 | |
Synaptics, Inc. (a) | 267 | 56,163 | |
Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR | 1,121 | 137,468 | |
Teradyne, Inc. | 2,555 | 300,034 | |
Wolfspeed, Inc. (a) | 551 | 51,926 | |
Xilinx, Inc. | 586 | 113,420 | |
12,789,539 | |||
Software - 13.5% | |||
Adobe, Inc. (a) | 1,799 | 961,206 | |
Amplitude, Inc. (a) | 2,040 | 80,192 | |
AppLovin Corp. (a) | 1,605 | 103,394 | |
Atlassian Corp. PLC (a) | 454 | 147,250 | |
AvidXchange Holdings, Inc. | 1,632 | 16,908 | |
Cadence Design Systems, Inc. (a) | 589 | 89,610 | |
Confluent, Inc. | 1,084 | 70,883 | |
Coupa Software, Inc. (a) | 993 | 133,330 | |
Crowdstrike Holdings, Inc. (a) | 703 | 126,990 | |
Datadog, Inc. Class A (a) | 457 | 66,772 | |
DoubleVerify Holdings, Inc. (a) | 4,874 | 134,815 | |
EngageSmart, Inc. | 3,782 | 82,675 | |
Epic Games, Inc. (a)(b)(c) | 9 | 7,710 | |
Expensify, Inc. (d) | 1,534 | 44,870 | |
Freshworks, Inc. | 1,342 | 29,189 | |
GitLab, Inc. | 488 | 31,237 | |
HashiCorp, Inc. | 462 | 30,672 | |
HubSpot, Inc. (a) | 633 | 309,410 | |
Intuit, Inc. | 728 | 404,207 | |
Microsoft Corp. | 30,958 | 9,627,319 | |
Qualtrics International, Inc. | 2,517 | 73,673 | |
Riskified Ltd.: | |||
Class A (e) | 475 | 3,311 | |
Class B (a) | 950 | 6,622 | |
Salesforce.com, Inc. (a) | 5,909 | 1,374,611 | |
Samsara, Inc. | 1,868 | 33,811 | |
SentinelOne, Inc. (d) | 488 | 21,838 | |
ServiceNow, Inc. (a) | 280 | 164,018 | |
Stripe, Inc. Class B (a)(b)(c) | 400 | 14,500 | |
Tanium, Inc. Class B (a)(b)(c) | 131 | 1,555 | |
The Trade Desk, Inc. (a) | 688 | 47,844 | |
UiPath, Inc. Class A (a) | 2,517 | 91,946 | |
Volue A/S (a) | 4,694 | 27,979 | |
Workday, Inc. Class A (a) | 447 | 113,095 | |
Zoom Video Communications, Inc. Class A (a) | 2,132 | 328,925 | |
14,802,367 | |||
Technology Hardware, Storage & Peripherals - 14.3% | |||
Apple, Inc. | 89,526 | 15,647,347 | |
TOTAL INFORMATION TECHNOLOGY | 46,685,863 | ||
MATERIALS - 0.7% | |||
Chemicals - 0.5% | |||
CF Industries Holdings, Inc. | 1,026 | 70,661 | |
Corteva, Inc. | 470 | 22,598 | |
LG Chemical Ltd. | 80 | 42,879 | |
Nutrien Ltd. | 3,584 | 250,315 | |
The Mosaic Co. | 3,945 | 157,603 | |
544,056 | |||
Metals & Mining - 0.2% | |||
Freeport-McMoRan, Inc. | 7,133 | 265,490 | |
TOTAL MATERIALS | 809,546 | ||
REAL ESTATE - 0.1% | |||
Equity Real Estate Investment Trusts (REITs) - 0.1% | |||
Simon Property Group, Inc. | 768 | 113,050 | |
TOTAL COMMON STOCKS | |||
(Cost $67,642,147) | 107,019,876 | ||
Preferred Stocks - 1.6% | |||
Convertible Preferred Stocks - 1.5% | |||
COMMUNICATION SERVICES - 0.1% | |||
Diversified Telecommunication Services - 0.0% | |||
Starry, Inc.: | |||
Series C (a)(b) | 3,181 | 4,851 | |
Series D (a)(b) | 7,310 | 11,147 | |
Series E3 (b) | 7,755 | 11,826 | |
27,824 | |||
Interactive Media & Services - 0.1% | |||
Reddit, Inc.: | |||
Series E (b)(c) | 103 | 6,365 | |
Series F (b)(c) | 1,044 | 64,513 | |
70,878 | |||
TOTAL COMMUNICATION SERVICES | 98,702 | ||
CONSUMER DISCRETIONARY - 0.4% | |||
Automobiles - 0.0% | |||
Rad Power Bikes, Inc.: | |||
Series A (b)(c) | 237 | 2,271 | |
Series C (b)(c) | 931 | 8,923 | |
Series D (b)(c) | 2,100 | 20,126 | |
31,320 | |||
Internet & Direct Marketing Retail - 0.3% | |||
GoBrands, Inc.: | |||
Series G (b)(c) | 400 | 155,396 | |
Series H (b)(c) | 235 | 91,295 | |
Instacart, Inc.: | |||
Series H (a)(b)(c) | 461 | 43,205 | |
Series I (b)(c) | 272 | 25,492 | |
315,388 | |||
Textiles, Apparel & Luxury Goods - 0.1% | |||
Algolia SAS Series D (b)(c) | 624 | 18,249 | |
CelLink Corp. Series D (b)(c) | 1,546 | 32,194 | |
Discord, Inc. Series I (b)(c) | 17 | 9,361 | |
59,804 | |||
TOTAL CONSUMER DISCRETIONARY | 406,512 | ||
CONSUMER STAPLES - 0.0% | |||
Food & Staples Retailing - 0.0% | |||
Blink Health, Inc. Series C (a)(b)(c) | 241 | 9,201 | |
Food Products - 0.0% | |||
AgBiome LLC Series C (a)(b)(c) | 557 | 3,302 | |
Bowery Farming, Inc. Series C1 (b)(c) | 378 | 22,774 | |
26,076 | |||
Tobacco - 0.0% | |||
JUUL Labs, Inc. Series E (a)(b)(c) | 127 | 5,502 | |
TOTAL CONSUMER STAPLES | 40,779 | ||
INDUSTRIALS - 0.3% | |||
Aerospace & Defense - 0.3% | |||
ABL Space Systems: | |||
Series B (b)(c) | 629 | 42,770 | |
Series B2 (b)(c) | 331 | 22,507 | |
Relativity Space, Inc. Series E (b)(c) | 5,798 | 132,398 | |
Space Exploration Technologies Corp. Series N (a)(b)(c) | 126 | 70,560 | |
268,235 | |||
Construction & Engineering - 0.0% | |||
Beta Technologies, Inc. Series A (b)(c) | 231 | 16,925 | |
TOTAL INDUSTRIALS | 285,160 | ||
INFORMATION TECHNOLOGY - 0.6% | |||
Communications Equipment - 0.1% | |||
Meesho Series F (b)(c) | 1,300 | 99,674 | |
Xsight Labs Ltd. Series D (b)(c) | 2,700 | 26,946 | |
126,620 | |||
Electronic Equipment & Components - 0.0% | |||
Enevate Corp. Series E (b)(c) | 24,030 | 26,642 | |
IT Services - 0.1% | |||
ByteDance Ltd. Series E1 (a)(b)(c) | 544 | 80,871 | |
Yanka Industries, Inc. Series F (b)(c) | 1,183 | 37,710 | |
118,581 | |||
Semiconductors & Semiconductor Equipment - 0.1% | |||
Astera Labs, Inc. Series C (b)(c) | 3,700 | 14,948 | |
GaN Systems, Inc.: | |||
Series F1 (b)(c) | 1,539 | 13,051 | |
Series F2 (b)(c) | 813 | 6,894 | |
SiMa.ai Series B (b)(c) | 6,600 | 43,098 | |
Tenstorrent, Inc. Series C1 (b)(c) | 200 | 15,008 | |
92,999 | |||
Software - 0.3% | |||
Bolt Technology OU Series E (b)(c) | 395 | 102,065 | |
Databricks, Inc.: | |||
Series G (b)(c) | 284 | 62,608 | |
Series H (b)(c) | 217 | 47,838 | |
Mountain Digital, Inc. Series D (b)(c) | 1,221 | 28,041 | |
Nuvia, Inc. Series B (a)(b) | 2,764 | 2,259 | |
Skyryse, Inc. Series B (b)(c) | 1,300 | 32,084 | |
Stripe, Inc. Series H (b)(c) | 200 | 7,250 | |
282,145 | |||
TOTAL INFORMATION TECHNOLOGY | 646,987 | ||
MATERIALS - 0.1% | |||
Metals & Mining - 0.1% | |||
Diamond Foundry, Inc. Series C (b)(c) | 5,192 | 142,728 | |
UTILITIES - 0.0% | |||
Independent Power and Renewable Electricity Producers - 0.0% | |||
Redwood Materials Series C (b)(c) | 799 | 37,875 | |
TOTAL CONVERTIBLE PREFERRED STOCKS | 1,658,743 | ||
Nonconvertible Preferred Stocks - 0.1% | |||
CONSUMER DISCRETIONARY - 0.0% | |||
Automobiles - 0.0% | |||
Neutron Holdings, Inc.: | |||
Series 1C (a)(b)(c) | 26,100 | 1,827 | |
Series 1D (a)(b)(c) | 58,561 | 4,099 | |
Waymo LLC Series A2 (a)(b)(c) | 127 | 11,649 | |
17,575 | |||
INFORMATION TECHNOLOGY - 0.1% | |||
IT Services - 0.1% | |||
Gupshup, Inc. (b)(c) | 1,661 | 37,979 | |
TOTAL NONCONVERTIBLE PREFERRED STOCKS | 55,554 | ||
TOTAL PREFERRED STOCKS | |||
(Cost $1,531,569) | 1,714,297 | ||
Principal Amount | Value | ||
Convertible Bonds - 0.0% | |||
CONSUMER DISCRETIONARY - 0.0% | |||
Automobiles - 0.0% | |||
Neutron Holdings, Inc.: | |||
0% 10/27/25 (b)(c) | 46,400 | 46,400 | |
4% 5/22/27 (b)(c) | 5,000 | 5,000 | |
4% 6/12/27 (b)(c) | 3,170 | 3,170 | |
TOTAL CONVERTIBLE BONDS | |||
(Cost $54,570) | 54,570 | ||
Preferred Securities - 0.1% | |||
CONSUMER DISCRETIONARY - 0.0% | |||
Internet & Direct Marketing Retail - 0.0% | |||
Circle Internet Financial Ltd. 0% (b)(f) | 47,500 | 53,446 | |
INFORMATION TECHNOLOGY - 0.1% | |||
Electronic Equipment & Components - 0.0% | |||
Enevate Corp. 0% 1/29/23 (b)(c) | 10,231 | 10,231 | |
Semiconductors & Semiconductor Equipment - 0.1% | |||
GaN Systems, Inc. 0% (b)(c)(f) | 36,074 | 36,074 | |
Tenstorrent, Inc. 0% (b)(c)(f) | 10,000 | 10,000 | |
46,074 | |||
TOTAL INFORMATION TECHNOLOGY | 56,305 | ||
TOTAL PREFERRED SECURITIES | |||
(Cost $103,805) | 109,751 | ||
Shares | Value | ||
Money Market Funds - 0.9% | |||
Fidelity Cash Central Fund 0.08% (g) | 626,530 | 626,655 | |
Fidelity Securities Lending Cash Central Fund 0.08% (g)(h) | 317,014 | 317,046 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $943,701) | 943,701 | ||
TOTAL INVESTMENT IN SECURITIES - 100.4% | |||
(Cost $70,275,792) | 109,842,195 | ||
NET OTHER ASSETS (LIABILITIES) - (0.4)% | (468,505) | ||
NET ASSETS - 100% | $109,373,690 |
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 $3,053,431 or 2.8% 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 $125,128 or 0.1% of net assets.
(f) Security is perpetual in nature with no stated maturity date.
(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 |
ABL Space Systems Series B | 3/24/21 | $28,327 |
ABL Space Systems Series B2 | 10/22/21 | $22,507 |
AgBiome LLC Series C | 6/29/18 | $3,528 |
Algolia SAS Series D | 7/23/21 | $18,249 |
Ant International Co. Ltd. Class C | 5/16/18 | $13,745 |
Astera Labs, Inc. Series C | 8/24/21 | $12,439 |
BARK, Inc. | 12/17/20 | $29,830 |
Beta Technologies, Inc. Series A | 4/9/21 | $16,925 |
Bird Global, Inc. | 5/11/21 | $42,420 |
Blink Health, Inc. Series A1 | 12/30/20 | $2,682 |
Blink Health, Inc. Series C | 11/7/19 - 7/14/21 | $9,200 |
Bolt Technology OU Series E | 1/3/22 | $102,620 |
Bowery Farming, Inc. Series C1 | 5/18/21 | $22,774 |
ByteDance Ltd. Series E1 | 11/18/20 | $59,608 |
CelLink Corp. Series D | 1/20/22 | $32,194 |
Circle Internet Financial Ltd. 0% | 5/11/21 | $47,500 |
Databricks, Inc. Series G | 2/1/21 | $50,372 |
Databricks, Inc. Series H | 8/31/21 | $47,838 |
Delhivery Private Ltd. | 5/20/21 | $27,823 |
Diamond Foundry, Inc. Series C | 3/15/21 | $124,608 |
Discord, Inc. Series I | 9/15/21 | $9,361 |
Endeavor Group Holdings, Inc. Class A | 3/29/21 | $42,432 |
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. Class A | 8/13/20 - 12/15/21 | $121,928 |
FSN E-Commerce Ventures Private Ltd. | 10/7/20 | $82,628 |
GaN Systems, Inc. Series F1 | 11/30/21 | $13,051 |
GaN Systems, Inc. Series F2 | 11/30/21 | $6,894 |
GaN Systems, Inc. 0% | 11/30/21 | $36,074 |
GoBrands, Inc. Series G | 3/2/21 | $99,887 |
GoBrands, Inc. Series H | 7/22/21 | $91,295 |
Gupshup, Inc. | 6/8/21 | $37,979 |
Il Makiage Ltd. | 1/6/22 | $20,660 |
Instacart, Inc. Series H | 11/13/20 | $27,660 |
Instacart, Inc. Series I | 2/26/21 | $34,000 |
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 |
Meesho Series F | 9/21/21 | $99,674 |
Mountain Digital, Inc. Series D | 11/5/21 | $28,041 |
MultiPlan Corp. warrants | 10/8/20 | $0 |
Neutron Holdings, Inc. | 2/4/21 | $92 |
Neutron Holdings, Inc. Series 1C | 7/3/18 | $4,772 |
Neutron Holdings, Inc. Series 1D | 1/25/19 | $14,201 |
Neutron Holdings, Inc. 0% 10/27/25 | 10/29/21 | $46,400 |
Neutron Holdings, Inc. 4% 5/22/27 | 6/4/20 | $5,000 |
Neutron Holdings, Inc. 4% 6/12/27 | 6/12/20 | $3,170 |
Nuvia, Inc. Series B | 3/16/21 | $2,259 |
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 |
Rad Power Bikes, Inc. Series D | 9/17/21 | $20,126 |
Reddit, Inc. Series E | 5/18/21 | $4,375 |
Reddit, Inc. Series F | 8/11/21 | $64,513 |
Redwood Materials Series C | 5/28/21 | $37,875 |
Relativity Space, Inc. Series E | 5/27/21 | $132,398 |
SiMa.ai Series B | 5/10/21 | $33,841 |
Skyryse, Inc. Series B | 10/21/21 | $32,084 |
Sonder Holdings, Inc. | 4/29/21 - 10/27/21 | $23,205 |
Space Exploration Technologies Corp. Class A | 2/16/21 | $41,999 |
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 |
Starry, Inc. Series E3 | 3/31/21 | $13,028 |
Stripe, Inc. Class B | 5/18/21 | $16,051 |
Stripe, Inc. Series H | 3/15/21 | $8,025 |
Tanium, Inc. Class B | 4/21/17 | $650 |
Tenstorrent, Inc. Series C1 | 4/23/21 | $11,891 |
Tenstorrent, Inc. 0% | 4/23/21 | $10,000 |
Waymo LLC Series A2 | 5/8/20 | $10,905 |
WeWork, Inc. | 3/25/21 | $84,920 |
Xsight Labs Ltd. Series D | 2/16/21 | $21,589 |
Yanka Industries, Inc. Series F | 4/8/21 | $37,710 |
Zomato Ltd. | 12/9/20 - 2/10/21 | $33,690 |
Affiliated Central Funds
Fiscal year to date information regarding the Fund's investments in Fidelity Central Funds, including the ownership percentage, is presented below.
Fund | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Realized Gain/Loss | Change in Unrealized appreciation (depreciation) | Value, end of period | % ownership, end of period |
Fidelity Cash Central Fund 0.08% | $2,415,701 | $9,601,427 | $11,390,473 | $263 | $-- | $-- | $626,655 | 0.0% |
Fidelity Securities Lending Cash Central Fund 0.08% | 353,805 | 6,069,837 | 6,106,596 | 3,327 | -- | -- | 317,046 | 0.0% |
Total | $2,769,506 | $15,671,264 | $17,497,069 | $3,590 | $-- | $-- | $943,701 |
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, 2022, 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 | $16,710,383 | $16,525,082 | $114,423 | $70,878 |
Consumer Discretionary | 29,464,682 | 27,296,844 | 1,515,478 | 652,360 |
Consumer Staples | 658,554 | 588,728 | 15,867 | 53,959 |
Energy | 2,332,088 | 1,670,839 | 661,249 | -- |
Financials | 1,070,943 | 996,552 | 67,534 | 6,857 |
Health Care | 4,705,188 | 4,667,943 | 16,585 | 20,660 |
Industrials | 5,318,307 | 4,771,075 | 159,818 | 387,414 |
Information Technology | 47,370,829 | 46,607,159 | 57,198 | 706,472 |
Materials | 952,274 | 766,667 | 42,879 | 142,728 |
Real Estate | 113,050 | 113,050 | -- | -- |
Utilities | 37,875 | -- | -- | 37,875 |
Corporate Bonds | 54,570 | -- | -- | 54,570 |
Preferred Securities | 109,751 | -- | 53,446 | 56,305 |
Money Market Funds | 943,701 | 943,701 | -- | -- |
Total Investments in Securities: | $109,842,195 | $104,947,640 | $2,704,477 | $2,190,078 |
Net unrealized depreciation on unfunded commitments | $(420) | $-- | $(420) | $-- |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value:
Investments in Securities: | |
Beginning Balance | $1,883,431 |
Net Realized Gain (Loss) on Investment Securities | -- |
Net Unrealized Gain (Loss) on Investment Securities | 172,396 |
Cost of Purchases | 688,800 |
Proceeds of Sales | (46,592) |
Amortization/Accretion | -- |
Transfers into Level 3 | 1,117 |
Transfers out of Level 3 | (509,074) |
Ending Balance | $2,190,078 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2022 | $175,049 |
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.
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
January 31, 2022 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $309,411) — See accompanying schedule: Unaffiliated issuers (cost $69,332,091) | $108,898,494 | |
Fidelity Central Funds (cost $943,701) | 943,701 | |
Total Investment in Securities (cost $70,275,792) | $109,842,195 | |
Foreign currency held at value (cost $73) | 73 | |
Receivable for investments sold | 288,117 | |
Receivable for fund shares sold | 145,986 | |
Dividends receivable | 12,044 | |
Interest receivable | 541 | |
Distributions receivable from Fidelity Central Funds | 389 | |
Total assets | 110,289,345 | |
Liabilities | ||
Payable to custodian bank | $33,944 | |
Payable for investments purchased | 440,460 | |
Unrealized depreciation on unfunded commitments | 420 | |
Payable for fund shares redeemed | 38,321 | |
Other payables and accrued expenses | 85,464 | |
Collateral on securities loaned | 317,046 | |
Total liabilities | 915,655 | |
Net Assets | $109,373,690 | |
Net Assets consist of: | ||
Paid in capital | $65,737,820 | |
Total accumulated earnings (loss) | 43,635,870 | |
Net Assets | $109,373,690 | |
Net Asset Value, offering price and redemption price per share ($109,373,690 ÷ 3,963,087 shares) | $27.60 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended January 31, 2022 (Unaudited) | ||
Investment Income | ||
Dividends | $235,527 | |
Interest | 216 | |
Income from Fidelity Central Funds (including $3,327 from security lending) | 3,590 | |
Total income | 239,333 | |
Expenses | ||
Independent trustees' fees and expenses | $233 | |
Interest | 79 | |
Total expenses before reductions | 312 | |
Expense reductions | (1) | |
Total expenses after reductions | 311 | |
Net investment income (loss) | 239,022 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 5,588,108 | |
Foreign currency transactions | (65) | |
Total net realized gain (loss) | 5,588,043 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers (net of increase in deferred foreign taxes of $50,738) | (8,941,673) | |
Unfunded commitments | 38,544 | |
Assets and liabilities in foreign currencies | 98 | |
Total change in net unrealized appreciation (depreciation) | (8,903,031) | |
Net gain (loss) | (3,314,988) | |
Net increase (decrease) in net assets resulting from operations | $(3,075,966) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended January 31, 2022 (Unaudited) | Year ended July 31, 2021 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $239,022 | $341,190 |
Net realized gain (loss) | 5,588,043 | 7,041,375 |
Change in net unrealized appreciation (depreciation) | (8,903,031) | 28,376,372 |
Net increase (decrease) in net assets resulting from operations | (3,075,966) | 35,758,937 |
Distributions to shareholders | (6,842,643) | (1,559,042) |
Share transactions | ||
Proceeds from sales of shares | 19,264,832 | 70,379,196 |
Reinvestment of distributions | 6,842,643 | 1,559,042 |
Cost of shares redeemed | (37,689,743) | (35,089,555) |
Net increase (decrease) in net assets resulting from share transactions | (11,582,268) | 36,848,683 |
Total increase (decrease) in net assets | (21,500,877) | 71,048,578 |
Net Assets | ||
Beginning of period | 130,874,567 | 59,825,989 |
End of period | $109,373,690 | $130,874,567 |
Other Information | ||
Shares | ||
Sold | 630,646 | 2,730,883 |
Issued in reinvestment of distributions | 225,439 | 65,074 |
Redeemed | (1,217,634) | (1,339,397) |
Net increase (decrease) | (361,549) | 1,456,560 |
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, | |||||
2022 | 2021 | 2020 | 2019 | 2018 | 2017 A | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $30.26 | $20.86 | $14.76 | $14.04 | $11.33 | $10.00 |
Income from Investment Operations | ||||||
Net investment income (loss)B,C | .06 | .09 | .10 | .11 | .11D | .03 |
Net realized and unrealized gain (loss) | (1.14) | 9.78 | 6.12 | 1.06 | 2.69 | 1.30 |
Total from investment operations | (1.08) | 9.87 | 6.22 | 1.17 | 2.80 | 1.33 |
Distributions from net investment income | (.11) | (.09) | (.12) | (.11) | (.06) | – |
Distributions from net realized gain | (1.48) | (.38) | – | (.35) | (.04) | – |
Total distributions | (1.58)E | (.47) | (.12) | (.45)E | (.09)E | – |
Net asset value, end of period | $27.60 | $30.26 | $20.86 | $14.76 | $14.04 | $11.33 |
Total ReturnF,G | (4.00)% | 47.94% | 42.45% | 8.66% | 24.90% | 13.30% |
Ratios to Average Net AssetsC,H,I | ||||||
Expenses before reductionsJ | - %K | -% | -% | -% | -% | - %K |
Expenses net of fee waivers, if anyJ | - %K | -% | -% | -% | -% | - %K |
Expenses net of all reductionsJ | - %K | -% | -% | -% | -% | - %K |
Net investment income (loss) | .36%K | .34% | .62% | .83% | .87%D | .79%K |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $109,374 | $130,875 | $59,826 | $24,333 | $14,641 | $8,576 |
Portfolio turnover rateL | 41%K | 44% | 70% | 55% | 65% | 17%M |
A For the period March 8, 2017 (commencement of operations) through July 31, 2017.
B Calculated based on average shares outstanding during the period.
C Net investment income (loss) is affected by the timing of the declaration of dividends by any underlying mutual funds or exchange-traded funds (ETFs). Net investment income (loss) of any such underlying funds is not included in the Fund's net investment income (loss) ratio.
D 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%.
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 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 Amount represents less than .005%.
K Annualized
L Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
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, 2022
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.
Funds may invest 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 Schedule of Investments lists any Fidelity Central Funds held as an investment as of period end, but does not include the underlying holdings of each Fidelity Central Fund. An investing fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
Based on its investment objective, each Fidelity Central Fund may invest or participate in various investment vehicles or strategies that are similar to those of the investing fund. These strategies are consistent with the investment objectives of the investing fund and may involve certain economic risks which may cause a decline in value of each of the Fidelity Central Funds and thus a decline in the value of the investing fund.
Fidelity Central Fund | Investment Manager | Investment Objective | Investment Practices | Expense Ratio(a) |
Fidelity Money Market Central Funds | Fidelity Management & Research Company LLC (FMR) | Each fund seeks to obtain a high level of current income consistent with the preservation of capital and liquidity. | Short-term Investments | Less than .005% |
(a) Expenses expressed as a percentage of average net assets and are as of each underlying Central Fund's most recent annual or semi-annual shareholder report.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds which contain the significant accounting policies (including investment valuation policies) of those funds, and are not covered by the Report of Independent Registered Public Accounting Firm, are available on the Securities and Exchange Commission 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 Fund's Schedule of Investments lists any underlying mutual funds or exchange-traded funds (ETFs) but does not include the underlying holdings of these funds. 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 – Unadjusted 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, 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 | $2,079,203 | Market comparable | Discount rate | 40.0% | Decrease |
Indicative market price | Enterprise value/EBITDA multiple (EV/EBITDA) | 21 | Increase | ||
Enterprise value/Sales multiple (EV/S) | 3.1 - 13.5 / 8.6 | Increase | |||
Price/Earnings multiple (P/E) | 7.1 | Increase | |||
Enterprise value/Gross profit (EV/GP) | 12.5 | Increase | |||
Discount for lack of marketability | 15.0% | Decrease | |||
Recovery value | Recovery value | 1.8% - 5.3% / 3.8% | Increase | ||
Discount for lack of marketability | 5.0% | Decrease | |||
Market approach | Transaction price | $1.11 - $860.82 / $166.41 | Increase | ||
Discount for lack of marketability | 10.0% | Decrease | |||
Premium rate | 20.2% - 27.4% / 25.4% | Increase | |||
Recovery value | Recovery value | 0.5% - 1.7% / 1.2% | Increase | ||
Discount for lack of marketability | 5.0% | Decrease | |||
Corporate Bonds | $54,570 | Market approach | Transaction price | $100.00 | Increase |
Preferred Securities | $56,305 | 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, 2022, 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. Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of a fund include an amount in addition to trade execution, which may be rebated back to a fund. Any such rebates are included in net realized gain (loss) on investments in the Statement of Operations. 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. Funds may file withholding tax reclaims in certain jurisdictions to recover a portion of amounts previously withheld. Any withholding tax reclaims income is included in the Statement of Operations in dividends. Any receivables for withholding tax reclaims are included in the Statement of Assets and Liabilities in dividends receivable.
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. Expenses included in the accompanying financial statements reflect the expenses of that fund and do not include any expenses associated with any underlying mutual funds or exchange-traded funds. Although not included in a fund's expenses, a fund indirectly bears its proportionate share of these expenses through the net asset value of each underlying mutual fund or exchange-traded fund. 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 and options transactions, foreign currency transactions, partnerships, passive foreign investment companies (PFIC), defaulted bonds 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 | $43,091,241 |
Gross unrealized depreciation | (3,936,605) |
Net unrealized appreciation (depreciation) | $39,154,636 |
Tax cost | $70,687,559 |
Restricted Securities (including Private Placements). Funds 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 held at period end is included at the end of the Schedule of Investments, if applicable.
Special Purpose Acquisition Companies. Funds may invest in stock, warrants, and other securities of special purpose acquisition companies (SPACs) or similar special purpose entities. A SPAC is a publicly traded company that raises investment capital via an initial public offering (IPO) for the purpose of acquiring the equity securities of one or more existing companies via merger, business combination, acquisition or other similar transactions within a designated time frame.
Private Investment in Public Equity. Funds may acquire equity securities of an issuer through a private investment in a public equity (PIPE) transaction, including through commitments to purchase securities on a when-issued basis. A PIPE typically involves the purchase of securities directly from a publicly traded company in a private placement transaction. Securities purchased through PIPE transactions will be restricted from trading and considered illiquid until a resale registration statement for the shares is filed and declared effective.
At the current and/or prior period end, the Fund had commitments to purchase when-issued securities through PIPE transactions with SPACs. The commitments are contingent upon the SPACs acquiring the securities of target companies. Unrealized appreciation (depreciation) on any commitments outstanding at period end is separately presented in the Statements of Assets and Liabilities as Unrealized appreciation (depreciation) on unfunded commitments, and any change in unrealized appreciation (depreciation) on unfunded commitments during the period is separately presented in the Statement of Operations, as applicable. The total amount of commitments outstanding at period end is presented in the table below.
Commitment Amount | |
Fidelity Flex Large Cap Growth Fund | $3,760 |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and in-kind transactions, as applicable, are noted in the table below.
Purchases ($) | Sales ($) | |
Fidelity Flex Large Cap Growth Fund | 26,714,371 | 43,015,982 |
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 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 | $1,373 |
Interfund Lending Program. Pursuant to an Exemptive Order issued by the Securities and Exchange Commission (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 Flex Large Cap Growth Fund | Borrower | $1,020,571 | .32% | $63 |
Interfund Trades. Funds may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Any interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note. Interfund trades during the period are noted in the table below.
Purchases ($) | Sales ($) | Realized Gain (Loss) ($) | |
Fidelity Flex Large Cap Growth Fund | 2,315,479 | 2,263,342 | 309,835 |
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 commitment fees on the pro-rata portion of the line of credit are borne by the investment adviser. During the period, there were no borrowings on this line of credit.
7. 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 | $– | $– |
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 Flex Large Cap Growth Fund | $144,000 | .58% | $16 |
9. 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 $1.
10. Other.
A 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, a fund may also enter into contracts that provide general indemnifications. A fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against a fund. The risk of material loss from such claims is considered remote.
At the end of the period, the investment adviser or its affiliates were owners of record of more than 10% of the outstanding shares as follows:
Fund | Affiliated % |
Fidelity Flex Large Cap Growth Fund | 14% |
In March 2022, the Board of Trustees approved a Plan of Liquidation and Dissolution. The Fund will distribute all of its net assets to its shareholders on or about June 10, 2022. The Fund will be closed to new accounts on or about June 3, 2022, with certain exceptions.
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, 2021 to January 31, 2022).
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, 2021 | Ending Account Value January 31, 2022 | Expenses Paid During Period-B August 1, 2021 to January 31, 2022 | |
Fidelity Flex Large Cap Growth Fund | - %-C | |||
Actual | $1,000.00 | $960.00 | $--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
ZLG-SANN-0422
1.9881574.104
Fidelity® OTC Portfolio
Semi-Annual Report
January 31, 2022
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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. © 2022 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 COVID-19 emerged as a public health emergency that had a major influence on financial markets, primarily based on its impact on the global economy and corporate earnings. On March 11, 2020, the World Health Organization declared the COVID-19 outbreak a pandemic, citing sustained risk of further global spread. The pandemic prompted a number of measures to limit the spread of COVID-19, 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. To help stem the turmoil, the U.S. government took unprecedented action – in concert with the U.S. Federal Reserve and central banks around the world – to help support consumers, businesses, and the broader economy, and to limit disruption to the financial system.
In general, the overall impact of the pandemic lessened in 2021, amid a resilient economy and widespread distribution of three COVID-19 vaccines granted emergency use authorization from the U.S. Food and Drug Administration (FDA) early in the year. Still, the situation remains dynamic, and the extent and duration of its influence on financial markets and the economy is highly uncertain, due in part to a recent spike in cases based on highly contagious variants of the coronavirus.
Extreme events such as the COVID-19 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 continue to take extra steps to be responsive to customer needs. We encourage you to visit us online, where we offer ongoing updates, commentary, and analysis on the markets and our funds.
Investment Summary (Unaudited)
Top Ten Stocks as of January 31, 2022
% of fund's net assets | |
Microsoft Corp. | 12.3 |
Apple, Inc. | 11.6 |
Alphabet, Inc. Class A | 7.5 |
Amazon.com, Inc. | 6.7 |
Meta Platforms, Inc. Class A | 3.6 |
Alphabet, Inc. Class C | 3.0 |
Marvell Technology, Inc. | 2.6 |
NVIDIA Corp. | 2.5 |
Reliance Industries Ltd. | 2.3 |
Netflix, Inc. | 1.5 |
53.6 |
Top Five Market Sectors as of January 31, 2022
% of fund's net assets | |
Information Technology | 43.8 |
Communication Services | 21.7 |
Consumer Discretionary | 15.8 |
Health Care | 7.0 |
Financials | 3.6 |
Asset Allocation (% of fund's net assets)
As of January 31, 2022* | ||
Stocks | 97.6% | |
Convertible Securities | 1.2% | |
Other Investments | 0.1% | |
Short-Term Investments and Net Other Assets (Liabilities)** | 1.1% |
* Foreign investments - 10.6%
** Short-Term Investments and Net Other Assets (Liabilities) are not included in the pie chart
Schedule of Investments January 31, 2022 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.5% | |||
Shares | Value (000s) | ||
COMMUNICATION SERVICES - 20.8% | |||
Entertainment - 2.7% | |||
Activision Blizzard, Inc. | 2,213,319 | $174,874 | |
Electronic Arts, Inc. | 2,340 | 310 | |
NetEase, Inc. ADR | 14,711 | 1,521 | |
Netflix, Inc. (a) | 992,766 | 424,050 | |
Roblox Corp. (a) | 814,700 | 53,656 | |
Spotify Technology SA (a) | 56,581 | 11,105 | |
Take-Two Interactive Software, Inc. (a) | 11,584 | 1,892 | |
The Walt Disney Co. (a) | 750,004 | 107,228 | |
774,636 | |||
Interactive Media & Services - 18.1% | |||
Alphabet, Inc.: | |||
Class A (a) | 782,237 | 2,116,788 | |
Class C (a) | 314,716 | 854,130 | |
Match Group, Inc. (a) | 232,780 | 26,234 | |
Meta Platforms, Inc. Class A (a) | 3,220,143 | 1,008,742 | |
Snap, Inc. Class A (a) | 8,185,564 | 266,358 | |
Taboola.com Ltd. (a) | 5,181,004 | 31,345 | |
Tencent Holdings Ltd. | 181,245 | 11,357 | |
Tencent Holdings Ltd. sponsored ADR (b) | 4,329,608 | 270,774 | |
Twitter, Inc. (a) | 9,708,143 | 364,152 | |
Vimeo, Inc. (a) | 283,388 | 4,152 | |
Yandex NV Series A (a) | 2,822,878 | 135,668 | |
5,089,700 | |||
Wireless Telecommunication Services - 0.0% | |||
T-Mobile U.S., Inc. (a) | 62,861 | 6,800 | |
TOTAL COMMUNICATION SERVICES | 5,871,136 | ||
CONSUMER DISCRETIONARY - 15.6% | |||
Automobiles - 1.4% | |||
Rivian Automotive, Inc. | 13,100 | 861 | |
Tesla, Inc. (a) | 432,538 | 405,167 | |
406,028 | |||
Hotels, Restaurants & Leisure - 1.6% | |||
Airbnb, Inc. Class A (a) | 1,910,420 | 294,147 | |
Churchill Downs, Inc. | 632,520 | 133,019 | |
Marriott International, Inc. Class A (a) | 42,832 | 6,901 | |
Vail Resorts, Inc. | 20,000 | 5,542 | |
Wynn Resorts Ltd. (a) | 122,738 | 10,488 | |
450,097 | |||
Internet & Direct Marketing Retail - 8.8% | |||
Alibaba Group Holding Ltd. sponsored ADR (a) | 694,161 | 87,319 | |
Amazon.com, Inc. (a) | 630,592 | 1,886,397 | |
ContextLogic, Inc. (a)(b) | 147,992 | 392 | |
Deliveroo PLC Class A (a)(c) | 21,998,425 | 46,218 | |
Etsy, Inc. (a) | 372,381 | 58,494 | |
Farfetch Ltd. Class A (a) | 1,939,081 | 42,097 | |
Global-e Online Ltd. (a) | 250,981 | 8,963 | |
JD.com, Inc. Class A (a) | 8,630 | 327 | |
Meituan Class B (a)(c) | 7,086,600 | 211,424 | |
Pinduoduo, Inc. ADR (a) | 1,952,840 | 116,858 | |
thredUP, Inc. (a) | 87,235 | 809 | |
Zomato Ltd. (a)(d) | 7,745,200 | 8,450 | |
2,467,748 | |||
Multiline Retail - 0.1% | |||
Dollar Tree, Inc. (a) | 289,631 | 38,005 | |
Specialty Retail - 1.7% | |||
Carvana Co. Class A (a) | 603,100 | 97,738 | |
Five Below, Inc. (a) | 1,048,504 | 171,955 | |
Lowe's Companies, Inc. | 939,902 | 223,086 | |
492,779 | |||
Textiles, Apparel & Luxury Goods - 2.0% | |||
Kontoor Brands, Inc. | 5,864 | 289 | |
lululemon athletica, Inc. (a) | 998,056 | 333,111 | |
LVMH Moet Hennessy Louis Vuitton SE | 263,483 | 216,419 | |
549,819 | |||
TOTAL CONSUMER DISCRETIONARY | 4,404,476 | ||
CONSUMER STAPLES - 1.3% | |||
Beverages - 1.1% | |||
Diageo PLC | 2,575,768 | 129,977 | |
Monster Beverage Corp. (a) | 1,830,736 | 158,761 | |
288,738 | |||
Food & Staples Retailing - 0.2% | |||
Costco Wholesale Corp. | 121,703 | 61,476 | |
Personal Products - 0.0% | |||
The Honest Co., Inc. | 159,105 | 1,033 | |
TOTAL CONSUMER STAPLES | 351,247 | ||
ENERGY - 3.5% | |||
Oil, Gas & Consumable Fuels - 3.5% | |||
Cenovus Energy, Inc. (Canada) | 166,540 | 2,422 | |
Diamondback Energy, Inc. | 1,137,600 | 143,520 | |
EOG Resources, Inc. | 13,811 | 1,540 | |
Hess Corp. | 985,616 | 90,963 | |
Reliance Industries Ltd. | 19,850,117 | 640,114 | |
Reliance Industries Ltd. sponsored GDR (c) | 1,793,001 | 115,350 | |
993,909 | |||
FINANCIALS - 3.6% | |||
Banks - 2.4% | |||
Fifth Third Bancorp | 3,877,204 | 173,040 | |
Huntington Bancshares, Inc. | 17,789,206 | 267,905 | |
Signature Bank | 670,010 | 204,105 | |
Wintrust Financial Corp. | 326,562 | 32,026 | |
677,076 | |||
Capital Markets - 1.1% | |||
Coinbase Global, Inc. (a)(b) | 1,013,652 | 192,746 | |
S&P Global, Inc. | 299,456 | 124,340 | |
317,086 | |||
Diversified Financial Services - 0.1% | |||
Ant International Co. Ltd. Class C (a)(d)(e) | 10,036,067 | 17,864 | |
TOTAL FINANCIALS | 1,012,026 | ||
HEALTH CARE - 7.0% | |||
Biotechnology - 2.8% | |||
Alnylam Pharmaceuticals, Inc. (a) | 1,426,662 | 196,309 | |
Amgen, Inc. | 89,672 | 20,368 | |
Arcutis Biotherapeutics, Inc. (a) | 552,243 | 8,344 | |
Ascendis Pharma A/S sponsored ADR (a) | 273,826 | 33,308 | |
ChemoCentryx, Inc. (a) | 570,233 | 15,334 | |
GenSight Biologics SA (a)(b) | 213,826 | 1,003 | |
Ionis Pharmaceuticals, Inc. (a) | 31,918 | 1,015 | |
Regeneron Pharmaceuticals, Inc. (a) | 543,065 | 330,504 | |
Relay Therapeutics, Inc. (a) | 2,753,512 | 60,935 | |
Trevena, Inc. (a)(b) | 449,443 | 244 | |
Twist Bioscience Corp. (a) | 717,200 | 42,616 | |
Vertex Pharmaceuticals, Inc. (a) | 199,725 | 48,543 | |
Xencor, Inc. (a) | 1,145,795 | 39,381 | |
797,904 | |||
Health Care Equipment & Supplies - 1.6% | |||
DexCom, Inc. (a) | 426,217 | 183,478 | |
Figs, Inc. Class A (a) | 45,427 | 1,021 | |
Insulet Corp. (a) | 762,513 | 189,103 | |
Intuitive Surgical, Inc. (a) | 157,317 | 44,706 | |
Neuronetics, Inc. (a) | 38,881 | 139 | |
Outset Medical, Inc. (a) | 40,305 | 1,499 | |
Pulmonx Corp. (a) | 26,299 | 640 | |
Tandem Diabetes Care, Inc. (a) | 193,073 | 22,804 | |
443,390 | |||
Health Care Providers & Services - 1.0% | |||
agilon health, Inc. (a) | 437,233 | 7,249 | |
Cigna Corp. | 75,554 | 17,412 | |
Guardant Health, Inc. (a) | 2,049,224 | 142,524 | |
Humana, Inc. | 253,264 | 99,406 | |
266,591 | |||
Health Care Technology - 0.0% | |||
Castlight Health, Inc. Class B (a) | 46,423 | 95 | |
Certara, Inc. (a) | 224,766 | 6,008 | |
6,103 | |||
Life Sciences Tools & Services - 1.3% | |||
10X Genomics, Inc. (a) | 902,464 | 86,880 | |
Bruker Corp. | 2,307,083 | 153,652 | |
Nanostring Technologies, Inc. (a)(f) | 2,436,531 | 84,596 | |
Olink Holding AB ADR (a) | 939,172 | 15,196 | |
Pacific Biosciences of California, Inc. (a) | 1,030,600 | 11,522 | |
Seer, Inc. (a)(b) | 454,357 | 7,147 | |
358,993 | |||
Pharmaceuticals - 0.3% | |||
AstraZeneca PLC sponsored ADR | 1,518,324 | 88,382 | |
Elanco Animal Health, Inc. (a) | 89,396 | 2,328 | |
TherapeuticsMD, Inc. (a) | 344,585 | 105 | |
90,815 | |||
TOTAL HEALTH CARE | 1,963,796 | ||
INDUSTRIALS - 1.9% | |||
Aerospace & Defense - 0.4% | |||
Space Exploration Technologies Corp.: | |||
Class A (a)(d)(e) | 203,488 | 113,953 | |
Class C (a)(d)(e) | 7,092 | 3,972 | |
117,925 | |||
Airlines - 0.0% | |||
Wheels Up Experience, Inc. (c) | 810,464 | 3,096 | |
Wheels Up Experience, Inc.: | |||
rights (a)(e) | 11,102 | 21 | |
rights (a)(e) | 11,102 | 18 | |
rights (a)(e) | 11,103 | 15 | |
3,150 | |||
Commercial Services & Supplies - 0.1% | |||
Copart, Inc. (a) | 297,863 | 38,499 | |
Electrical Equipment - 0.0% | |||
Array Technologies, Inc. (a) | 185,516 | 1,955 | |
Professional Services - 0.9% | |||
Verisk Analytics, Inc. | 1,216,870 | 238,665 | |
YourPeople, Inc. (a)(e) | 1,005,815 | 10 | |
238,675 | |||
Road & Rail - 0.5% | |||
CSX Corp. | 288,378 | 9,868 | |
Lyft, Inc. (a) | 3,046,199 | 117,340 | |
127,208 | |||
TOTAL INDUSTRIALS | 527,412 | ||
INFORMATION TECHNOLOGY - 43.7% | |||
Communications Equipment - 0.3% | |||
Cisco Systems, Inc. | 1,321,400 | 73,562 | |
IT Services - 5.0% | |||
Block, Inc. Class A (a) | 888,038 | 108,598 | |
Cloudflare, Inc. (a) | 142,500 | 13,737 | |
Gartner, Inc. (a) | 1,148,023 | 337,392 | |
MasterCard, Inc. Class A | 897,460 | 346,761 | |
MongoDB, Inc. Class A (a) | 299,914 | 121,498 | |
PayPal Holdings, Inc. (a) | 636,831 | 109,497 | |
Snowflake Computing, Inc. (a) | 21,000 | 5,794 | |
Twilio, Inc. Class A (a) | 1,273,603 | 262,515 | |
Visa, Inc. Class A | 46,237 | 10,457 | |
Wix.com Ltd. (a) | 742,806 | 97,582 | |
1,413,831 | |||
Semiconductors & Semiconductor Equipment - 8.2% | |||
Analog Devices, Inc. | 265,668 | 43,562 | |
Applied Materials, Inc. | 1,274,701 | 176,138 | |
ASML Holding NV | 418,259 | 283,245 | |
Lam Research Corp. | 237,101 | 139,871 | |
Marvell Technology, Inc. | 10,129,728 | 723,263 | |
NVIDIA Corp. | 2,915,119 | 713,796 | |
NXP Semiconductors NV | 189,327 | 38,895 | |
Skyworks Solutions, Inc. | 93,896 | 13,758 | |
Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR | 1,468,866 | 180,127 | |
2,312,655 | |||
Software - 18.6% | |||
Adobe, Inc. (a) | 637,490 | 340,611 | |
ANSYS, Inc. (a) | 186,454 | 63,396 | |
Aspen Technology, Inc. (a) | 760,147 | 114,144 | |
Atom Tickets LLC (a)(d)(e)(g) | 516,103 | 0 | |
Autodesk, Inc. (a) | 384,042 | 95,930 | |
Blend Labs, Inc. (b) | 178,619 | 1,422 | |
Cadence Design Systems, Inc. (a) | 964,695 | 146,769 | |
CCC Intelligent Solutions Holdings, Inc. Class A (a) | 2,671,122 | 28,474 | |
Dropbox, Inc. Class A (a) | 193,795 | 4,796 | |
Duck Creek Technologies, Inc. (a) | 24,893 | 636 | |
Dynatrace, Inc. (a) | 9,205 | 505 | |
Elastic NV (a) | 1,478,507 | 137,871 | |
Epic Games, Inc. (a)(d)(e) | 77,600 | 66,479 | |
HIVE Blockchain Technologies Ltd. (a)(b) | 2,528,743 | 4,973 | |
Intuit, Inc. | 387,060 | 214,907 | |
Manhattan Associates, Inc. (a) | 173,203 | 23,187 | |
Microsoft Corp. | 11,137,193 | 3,463,441 | |
Salesforce.com, Inc. (a) | 1,141,434 | 265,532 | |
Stripe, Inc. Class B (a)(d)(e) | 91,800 | 3,328 | |
Synopsys, Inc. (a) | 417,977 | 129,782 | |
Workday, Inc. Class A (a) | 70,782 | 17,909 | |
Zoom Video Communications, Inc. Class A (a) | 714,910 | 110,296 | |
5,234,388 | |||
Technology Hardware, Storage & Peripherals - 11.6% | |||
Apple, Inc. | 18,712,127 | 3,270,506 | |
Western Digital Corp. (a) | 287,154 | 14,857 | |
3,285,363 | |||
TOTAL INFORMATION TECHNOLOGY | 12,319,799 | ||
REAL ESTATE - 0.1% | |||
Equity Real Estate Investment Trusts (REITs) - 0.1% | |||
Equinix, Inc. | 44,968 | 32,597 | |
TOTAL COMMON STOCKS | |||
(Cost $14,169,749) | 27,476,398 | ||
Preferred Stocks - 1.3% | |||
Convertible Preferred Stocks - 1.2% | |||
COMMUNICATION SERVICES - 0.9% | |||
Diversified Telecommunication Services - 0.0% | |||
Starry, Inc. Series B (a)(d) | 1,811,120 | 2,762 | |
Interactive Media & Services - 0.9% | |||
Reddit, Inc.: | |||
Series B (a)(d)(e) | 1,337,584 | 82,655 | |
Series C (a)(d)(e) | 300,673 | 18,580 | |
Series D (a)(d)(e) | 929,200 | 57,419 | |
Series E (d)(e) | 33,800 | 2,089 | |
Series F (d)(e) | 1,250,100 | 77,249 | |
237,992 | |||
TOTAL COMMUNICATION SERVICES | 240,754 | ||
CONSUMER DISCRETIONARY - 0.0% | |||
Textiles, Apparel & Luxury Goods - 0.0% | |||
Discord, Inc. Series I (d)(e) | 3,300 | 1,817 | |
INDUSTRIALS - 0.2% | |||
Aerospace & Defense - 0.2% | |||
Space Exploration Technologies Corp.: | |||
Series G (a)(d)(e) | 62,037 | 34,741 | |
Series H (a)(d)(e) | 65,670 | 36,775 | |
71,516 | |||
INFORMATION TECHNOLOGY - 0.1% | |||
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 (a)(d)(e) | 174,336 | 25,917 | |
25,986 | |||
Semiconductors & Semiconductor Equipment - 0.0% | |||
Tenstorrent, Inc. Series C1 (d)(e) | 41,000 | 3,077 | |
Software - 0.0% | |||
Jet.Com, Inc. Series B1 (Escrow) (a)(d)(e) | 4,896,249 | 0 | |
Stripe, Inc. Series H (d)(e) | 39,000 | 1,414 | |
1,414 | |||
TOTAL INFORMATION TECHNOLOGY | 30,477 | ||
TOTAL CONVERTIBLE PREFERRED STOCKS | 344,564 | ||
Nonconvertible Preferred Stocks - 0.1% | |||
CONSUMER DISCRETIONARY - 0.1% | |||
Automobiles - 0.1% | |||
Waymo LLC: | |||
Series A2 (a)(d)(e) | 103,940 | 9,534 | |
Series B2 (d)(e) | 178,470 | 16,370 | |
25,904 | |||
HEALTH CARE - 0.0% | |||
Pharmaceuticals - 0.0% | |||
Castle Creek Pharmaceutical Holdings, Inc. Series A4 (a)(d)(e) | 30,303 | 11,333 | |
TOTAL NONCONVERTIBLE PREFERRED STOCKS | 37,237 | ||
TOTAL PREFERRED STOCKS | |||
(Cost $197,487) | 381,801 | ||
Principal Amount (000s) | Value (000s) | ||
Preferred Securities - 0.1% | |||
CONSUMER DISCRETIONARY - 0.1% | |||
Internet & Direct Marketing Retail - 0.1% | |||
Circle Internet Financial Ltd. 0% (d)(h) | 20,654 | 23,239 | |
INFORMATION TECHNOLOGY - 0.0% | |||
Semiconductors & Semiconductor Equipment - 0.0% | |||
Tenstorrent, Inc. 0% (d)(e)(h) | 2,280 | 2,280 | |
TOTAL PREFERRED SECURITIES | |||
(Cost $22,934) | 25,519 | ||
Shares | Value (000s) | ||
Money Market Funds - 2.1% | |||
Fidelity Cash Central Fund 0.08% (i) | 337,791,332 | 337,859 | |
Fidelity Securities Lending Cash Central Fund 0.08% (i)(j) | 246,671,338 | 246,696 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $584,555) | 584,555 | ||
TOTAL INVESTMENT IN SECURITIES - 101.0% | |||
(Cost $14,974,725) | 28,468,273 | ||
NET OTHER ASSETS (LIABILITIES) - (1.0)% | (274,383) | ||
NET ASSETS - 100% | $28,193,890 |
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 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 $376,088,000 or 1.3% of net assets.
(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 $621,366,000 or 2.2% of net assets.
(e) Level 3 security
(f) Affiliated company
(g) Investment is owned by a wholly-owned subsidiary (Subsidiary) that is treated as a corporation for U.S. tax purposes.
(h) Security is perpetual in nature with no stated maturity date.
(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) |
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 |
Circle Internet Financial Ltd. 0% | 5/11/21 | $20,654 |
Discord, Inc. Series I | 9/15/21 | $1,817 |
Epic Games, Inc. | 7/13/20 - 3/29/21 | $61,546 |
Jet.Com, Inc. Series B1 (Escrow) | 3/19/18 | $0 |
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 |
Reddit, Inc. Series E | 5/18/21 | $1,436 |
Reddit, Inc. Series F | 8/11/21 | $77,249 |
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 |
Stripe, Inc. Class B | 5/18/21 | $3,684 |
Stripe, Inc. Series H | 3/15/21 | $1,565 |
Tenstorrent, Inc. Series C1 | 4/23/21 | $2,438 |
Tenstorrent, Inc. 0% | 4/23/21 | $2,280 |
Waymo LLC Series A2 | 5/8/20 | $8,925 |
Waymo LLC Series B2 | 6/11/21 | $16,370 |
Zomato Ltd. | 12/9/20 - 2/5/21 | $4,734 |
Affiliated Central Funds
Fiscal year to date information regarding the Fund's investments in Fidelity Central Funds, including the ownership percentage, is presented below.
Fund (Amounts in thousands) | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Realized Gain/Loss | Change in Unrealized appreciation (depreciation) | Value, end of period | % ownership, end of period |
Fidelity Cash Central Fund 0.08% | $177,437 | $1,544,354 | $1,383,932 | $15 | $-- | $-- | $337,859 | 0.6% |
Fidelity Securities Lending Cash Central Fund 0.08% | 78,878 | 1,095,893 | 928,075 | 365 | -- | -- | 246,696 | 0.8% |
Total | $256,315 | $2,640,247 | $2,312,007 | $380 | $-- | $-- | $584,555 |
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. | $151,325 | $-- | $358 | $-- | $159 | $(66,530) | $84,596 |
Total | $151,325 | $-- | $358 | $-- | $159 | $(66,530) | $84,596 |
(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, 2022, 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 | $6,111,890 | $5,859,779 | $14,119 | $237,992 |
Consumer Discretionary | 4,432,197 | 3,921,638 | 482,838 | 27,721 |
Consumer Staples | 351,247 | 221,270 | 129,977 | -- |
Energy | 993,909 | 238,445 | 755,464 | -- |
Financials | 1,012,026 | 994,162 | -- | 17,864 |
Health Care | 1,975,129 | 1,962,793 | 1,003 | 11,333 |
Industrials | 598,928 | 409,423 | -- | 189,505 |
Information Technology | 12,350,276 | 12,249,992 | -- | 100,284 |
Real Estate | 32,597 | 32,597 | -- | -- |
Preferred Securities | 25,519 | -- | 23,239 | 2,280 |
Money Market Funds | 584,555 | 584,555 | -- | -- |
Total Investments in Securities: | $28,468,273 | $26,474,654 | $1,406,640 | $586,979 |
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 | $488,819 |
Net Realized Gain (Loss) on Investment Securities | (194) |
Net Unrealized Gain (Loss) on Investment Securities | 43,127 |
Cost of Purchases | 79,078 |
Proceeds of Sales | (207) |
Amortization/Accretion | -- |
Transfers into Level 3 | 53 |
Transfers out of Level 3 | (23,697) |
Ending Balance | $586,979 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2022 | $42,986 |
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 | 89.4% |
India | 2.7% |
Cayman Islands | 2.6% |
Netherlands | 2.1% |
United Kingdom | 1.0% |
Others (Individually Less Than 1%) | 2.2% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | January 31, 2022 (Unaudited) | |
Assets | ||
Investment in securities, at value (including securities loaned of $252,843) — See accompanying schedule: Unaffiliated issuers (cost $14,291,224) | $27,799,122 | |
Fidelity Central Funds (cost $584,555) | 584,555 | |
Other affiliated issuers (cost $98,946) | 84,596 | |
Total Investment in Securities (cost $14,974,725) | $28,468,273 | |
Receivable for investments sold | 75,322 | |
Receivable for fund shares sold | 22,681 | |
Dividends receivable | 8,503 | |
Distributions receivable from Fidelity Central Funds | 64 | |
Prepaid expenses | 23 | |
Other receivables | 529 | |
Total assets | 28,575,395 | |
Liabilities | ||
Payable for investments purchased | $65,241 | |
Payable for fund shares redeemed | 16,115 | |
Accrued management fee | 17,625 | |
Other affiliated payables | 2,692 | |
Other payables and accrued expenses | 33,160 | |
Collateral on securities loaned | 246,672 | |
Total liabilities | 381,505 | |
Net Assets | $28,193,890 | |
Net Assets consist of: | ||
Paid in capital | $13,620,593 | |
Total accumulated earnings (loss) | 14,573,297 | |
Net Assets | $28,193,890 | |
Net Asset Value and Maximum Offering Price | ||
OTC: | ||
Net Asset Value, offering price and redemption price per share ($20,842,939 ÷ 1,176,167 shares) | $17.72 | |
Class K: | ||
Net Asset Value, offering price and redemption price per share ($7,350,951 ÷ 406,364 shares) | $18.09 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Amounts in thousands | Six months ended January 31, 2022 (Unaudited) | |
Investment Income | ||
Dividends | $56,337 | |
Income from Fidelity Central Funds (including $365 from security lending) | 380 | |
Total income | 56,717 | |
Expenses | ||
Management fee | ||
Basic fee | $88,678 | |
Performance adjustment | 20,867 | |
Transfer agent fees | 15,366 | |
Accounting fees | 1,007 | |
Custodian fees and expenses | 476 | |
Independent trustees' fees and expenses | 54 | |
Registration fees | 134 | |
Audit | 68 | |
Legal | 23 | |
Interest | 11 | |
Miscellaneous | 52 | |
Total expenses before reductions | 126,736 | |
Expense reductions | (477) | |
Total expenses after reductions | 126,259 | |
Net investment income (loss) | (69,542) | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 2,035,272 | |
Affiliated issuers | 159 | |
Foreign currency transactions | (771) | |
Total net realized gain (loss) | 2,034,660 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers (net of increase in deferred foreign taxes of $9,993) | (3,124,235) | |
Affiliated issuers | (66,530) | |
Assets and liabilities in foreign currencies | (8) | |
Total change in net unrealized appreciation (depreciation) | (3,190,773) | |
Net gain (loss) | (1,156,113) | |
Net increase (decrease) in net assets resulting from operations | $(1,225,655) |
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, 2022 (Unaudited) | Year ended July 31, 2021 |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $(69,542) | $(84,064) |
Net realized gain (loss) | 2,034,660 | 3,914,563 |
Change in net unrealized appreciation (depreciation) | (3,190,773) | 5,606,765 |
Net increase (decrease) in net assets resulting from operations | (1,225,655) | 9,437,264 |
Distributions to shareholders | (3,357,390) | (1,653,656) |
Share transactions - net increase (decrease) | 2,432,569 | (1,330,230) |
Total increase (decrease) in net assets | (2,150,476) | 6,453,378 |
Net Assets | ||
Beginning of period | 30,344,366 | 23,890,988 |
End of period | $28,193,890 | $30,344,366 |
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, | |||||
2022 | 2021 | 2020 | 2019 | 2018 A | 2017 A | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $20.67 | $15.61 | $12.45 | $12.50 | $10.57 | $8.53 |
Income from Investment Operations | ||||||
Net investment income (loss)B,C | (.05) | (.06) | (.01) | (.01) | (.02) | (.02) |
Net realized and unrealized gain (loss) | (.64) | 6.21 | 4.14 | .75 | 2.48 | 2.33 |
Total from investment operations | (.69) | 6.15 | 4.13 | .74 | 2.46 | 2.31 |
Distributions from net investment income | – | (.01) | – | – | – | – |
Distributions from net realized gain | (2.26) | (1.08) | (.97) | (.79) | (.53) | (.27) |
Total distributions | (2.26) | (1.09) | (.97) | (.79) | (.53) | (.27) |
Net asset value, end of period | $17.72 | $20.67 | $15.61 | $12.45 | $12.50 | $10.57 |
Total ReturnD,E | (4.18)% | 41.90% | 35.79% | 6.43% | 24.34% | 27.97% |
Ratios to Average Net AssetsC,F,G | ||||||
Expenses before reductions | .84%H | .80% | .87% | .88% | .88% | .81% |
Expenses net of fee waivers, if any | .84%H | .80% | .87% | .88% | .88% | .81% |
Expenses net of all reductions | .84%H | .80% | .87% | .88% | .88% | .81% |
Net investment income (loss) | (.47)%H | (.33)% | (.07)% | (.10)% | (.17)% | (.16)% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $20,843 | $22,273 | $16,817 | $13,166 | $13,340 | $12,136 |
Portfolio turnover rateI,J | 29%H | 28% | 48% | 34% | 38% | 71% |
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 Net investment income (loss) is affected by the timing of the declaration of dividends by any underlying mutual funds or exchange-traded funds (ETFs). Net investment income (loss) of any such underlying funds is not included in the Fund's net investment income (loss) ratio.
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.
Fidelity OTC Portfolio Class K
Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
2022 | 2021 | 2020 | 2019 | 2018 A | 2017 A | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $21.06 | $15.88 | $12.64 | $12.67 | $10.70 | $8.62 |
Income from Investment Operations | ||||||
Net investment income (loss)B,C | (.04) | (.05) | –D | –D | (.01) | (.01) |
Net realized and unrealized gain (loss) | (.66) | 6.33 | 4.21 | .76 | 2.52 | 2.36 |
Total from investment operations | (.70) | 6.28 | 4.21 | .76 | 2.51 | 2.35 |
Distributions from net investment income | – | (.01) | –D | – | – | – |
Distributions from net realized gain | (2.27) | (1.09) | (.97) | (.79) | (.54) | (.27) |
Total distributions | (2.27) | (1.10) | (.97) | (.79) | (.54) | (.27) |
Net asset value, end of period | $18.09 | $21.06 | $15.88 | $12.64 | $12.67 | $10.70 |
Total ReturnE,F | (4.15)% | 42.05% | 35.94% | 6.50% | 24.48% | 28.12% |
Ratios to Average Net AssetsC,G,H | ||||||
Expenses before reductions | .76%I | .72% | .78% | .79% | .78% | .70% |
Expenses net of fee waivers, if any | .76%I | .71% | .78% | .79% | .78% | .70% |
Expenses net of all reductions | .76%I | .71% | .78% | .78% | .77% | .70% |
Net investment income (loss) | (.39)%I | (.25)% | .03% | (.01)% | (.07)% | (.05)% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $7,351 | $8,072 | $7,074 | $6,752 | $7,288 | $3,662 |
Portfolio turnover rateJ,K | 29%I | 28% | 48% | 34% | 38% | 71% |
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 Net investment income (loss) is affected by the timing of the declaration of dividends by any underlying mutual funds or exchange-traded funds (ETFs). Net investment income (loss) of any such underlying funds is not included in the Fund's net investment income (loss) ratio.
D Amount represents less than $.005 per share.
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 Portfolio turnover rate excludes securities received or delivered in-kind.
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, 2022
(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.
Funds may invest 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 Schedule of Investments lists any Fidelity Central Funds held as an investment as of period end, but does not include the underlying holdings of each Fidelity Central Fund. An investing fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
Based on its investment objective, each Fidelity Central Fund may invest or participate in various investment vehicles or strategies that are similar to those of the investing fund. These strategies are consistent with the investment objectives of the investing fund and may involve certain economic risks which may cause a decline in value of each of the Fidelity Central Funds and thus a decline in the value of the investing fund.
Fidelity Central Fund | Investment Manager | Investment Objective | Investment Practices | Expense Ratio(a) |
Fidelity Money Market Central Funds | Fidelity Management & Research Company LLC (FMR) | Each fund seeks to obtain a high level of current income consistent with the preservation of capital and liquidity. | Short-term Investments | Less than .005% |
(a) Expenses expressed as a percentage of average net assets and are as of each underlying Central Fund's most recent annual or semi-annual shareholder report.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds which contain the significant accounting policies (including investment valuation policies) of those funds, and are not covered by the Report of Independent Registered Public Accounting Firm, are available on the Securities and Exchange Commission 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 Fund's Schedule of Investments lists any underlying mutual funds or exchange-traded funds (ETFs) but does not include the underlying holdings of these funds. 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 – Unadjusted 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. 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 | $ 584,699 | Market comparable | Discount rate | 75.0% | Decrease |
Enterprise value/EBITDA multiple (EV/EBITDA) | 21.0 | Increase | |||
Enterprise value/Sales multiple (EV/S) | 3.0 – 5.5 / 4.4 | Increase | |||
Price/Earnings multiple (P/E) | 7.1 | Increase | |||
Discount for lack of marketability | 15.0% | Decrease | |||
Recovery value | Recovery value | 0.0% - 1.9% / 0.8% | Increase | ||
Discount for lack of marketability | 5.0% | Decrease | |||
Market approach | Transaction price | $59.45 - $560.00 / $274.77 | Increase | ||
Discount rate | 9.2% | Decrease | |||
Premium rate | 26.2% | Increase | |||
Preferred Securities | $2,280 | 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, 2022, 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. Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of a fund include an amount in addition to trade execution, which may be rebated back to a fund. Any such rebates are included in net realized gain (loss) on investments in the Statement of Operations. 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. Funds may file withholding tax reclaims in certain jurisdictions to recover a portion of amounts previously withheld. Any withholding tax reclaims income is included in the Statement of Operations in dividends. Any receivables for withholding tax reclaims are included in the Statement of Assets and Liabilities in dividends receivable.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of a 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 a fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred, as applicable. Certain expense reductions may also differ by class, if applicable. 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. Expenses included in the accompanying financial statements reflect the expenses of that fund and do not include any expenses associated with any underlying mutual funds or exchange-traded funds. Although not included in a fund's expenses, a fund indirectly bears its proportionate share of these expenses through the net asset value of each underlying mutual fund or exchange-traded fund. 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 | $504 |
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, net operating loss, certain foreign taxes, passive foreign investment companies (PFIC), deferred Trustee compensation, 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 | $14,977,985 |
Gross unrealized depreciation | (1,591,159) |
Net unrealized appreciation (depreciation) | $13,386,826 |
Tax cost | $15,081,447 |
Restricted Securities (including Private Placements). Funds 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 held at period end is included at the end of the Schedule of Investments, if applicable.
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 | –(a) | –(b) |
(a) In the amount of less than five hundred dollars
(b) In the amount of less than 0.005%
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, as applicable, are noted in the table below.
Purchases ($) | Sales ($) | |
Fidelity OTC Portfolio | 4,479,073 | 5,629,024 |
Unaffiliated Redemptions In-Kind. Shares that were redeemed in-kind for investments, including accrued interest and cash, if any, are shown in the table below. The net realized gain or loss 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. There was no gain or loss for federal income tax purposes.
Shares | Total net realized gain or loss ($) | Total Proceeds ($) | Participating classes | |
Fidelity OTC Portfolio | 3,473 | 47,704 | 68,931 | Class K |
Prior Fiscal Year Unaffiliated Redemptions In-Kind. Shares that were redeemed in-kind for investments, including accrued interest and cash, if any, are shown in the table below; along with realized gain or loss 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. There was no gain or loss for federal income tax purposes.
Shares | Total net realized gain or loss ($) | Total Proceeds ($) | Participating classes | |
Fidelity OTC Portfolio | 69,813 | 901,736 | 1,292,840 | OTC and Class K |
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 .22% 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 .71% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company 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 | $13,701 | .12 |
Class K | 1,665 | .04 |
$15,366 |
(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 | $52 |
Interfund Lending Program. Pursuant to an Exemptive Order issued by the Securities and Exchange Commission (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 | $21,075 | .32% | $11 |
Interfund Trades. Funds may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Any interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note. Interfund trades during the period are noted in the table below.
Purchases ($) | Sales ($) | Realized Gain (Loss) ($) | |
Fidelity OTC Portfolio | 375,115 | 367,458 | 90,815 |
Other. During the period, the investment adviser reimbursed the Fund for certain losses as follows:
Amount ($) | |
Fidelity OTC Portfolio | 3 |
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. During the period, there were no borrowings on this line of credit.
Amount | |
Fidelity OTC Portfolio | $25 |
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 Fees Paid to NFS | Security Lending Income From Securities Loaned to NFS | Value of Securities Loaned to NFS at Period End | |
Fidelity OTC Portfolio | $38 | $– | $– |
8. Expense Reductions.
During the period the investment adviser or an affiliate reimbursed and/or waived a portion of fund-level operating expenses in the amount of $477.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended January 31, 2022 | Year ended July 31, 2021 | |
Fidelity OTC Portfolio | ||
Distributions to shareholders | ||
OTC | $2,483,169 | $1,174,209 |
Class K | 874,221 | 479,447 |
Total | $3,357,390 | $1,653,656 |
10. Share Transactions.
Share transactions for each class were as follows and may contain in-kind transactions, automatic conversions between classes or exchanges between affiliated funds:
Shares | Shares | Dollars | Dollars | |
Six months ended January 31, 2022 | Year ended July 31, 2021 | Six months ended January 31, 2022 | Year ended July 31, 2021 | |
Fidelity OTC Portfolio | ||||
OTC | ||||
Shares sold | 73,503 | 167,526 | $1,448,508 | $2,960,401 |
Reinvestment of distributions | 119,609 | 72,811 | 2,344,241 | 1,115,245 |
Shares redeemed | (94,257) | (240,686) | (1,825,458) | (4,251,031) |
Net increase (decrease) | 98,855 | (349) | $1,967,291 | $(175,385) |
Class K | ||||
Shares sold | 13,136 | 40,584 | $264,094 | $730,836 |
Reinvestment of distributions | 43,712 | 30,755 | 874,221 | 479,447 |
Shares redeemed | (33,734) | (133,642) | (673,037) | (2,365,128) |
Net increase (decrease) | 23,114 | (62,303) | $465,278 | $(1,154,845) |
11. Other.
A 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, a fund may also enter into contracts that provide general indemnifications. A fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against a 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, 2021 to January 31, 2022).
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, 2021 | Ending Account Value January 31, 2022 | Expenses Paid During Period-B August 1, 2021 to January 31, 2022 | |
Fidelity OTC Portfolio | ||||
OTC | .84% | |||
Actual | $1,000.00 | $958.20 | $4.15 | |
Hypothetical-C | $1,000.00 | $1,020.97 | $4.28 | |
Class K | .76% | |||
Actual | $1,000.00 | $958.50 | $3.75 | |
Hypothetical-C | $1,000.00 | $1,021.37 | $3.87 |
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
OTC-SANN-0422
1.700332.124
Fidelity® OTC K6 Portfolio
Semi-Annual Report
January 31, 2022
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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. © 2022 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 COVID-19 emerged as a public health emergency that had a major influence on financial markets, primarily based on its impact on the global economy and corporate earnings. On March 11, 2020, the World Health Organization declared the COVID-19 outbreak a pandemic, citing sustained risk of further global spread. The pandemic prompted a number of measures to limit the spread of COVID-19, 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. To help stem the turmoil, the U.S. government took unprecedented action – in concert with the U.S. Federal Reserve and central banks around the world – to help support consumers, businesses, and the broader economy, and to limit disruption to the financial system.
In general, the overall impact of the pandemic lessened in 2021, amid a resilient economy and widespread distribution of three COVID-19 vaccines granted emergency use authorization from the U.S. Food and Drug Administration (FDA) early in the year. Still, the situation remains dynamic, and the extent and duration of its influence on financial markets and the economy is highly uncertain, due in part to a recent spike in cases based on highly contagious variants of the coronavirus.
Extreme events such as the COVID-19 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 continue to take extra steps to be responsive to customer needs. We encourage you to visit us online, where we offer ongoing updates, commentary, and analysis on the markets and our funds.
Investment Summary (Unaudited)
Top Ten Stocks as of January 31, 2022
% of fund's net assets | |
Microsoft Corp. | 12.5 |
Apple, Inc. | 12.0 |
Alphabet, Inc. Class A | 7.6 |
Amazon.com, Inc. | 6.8 |
Meta Platforms, Inc. Class A | 3.6 |
Alphabet, Inc. Class C | 3.1 |
Marvell Technology, Inc. | 2.6 |
NVIDIA Corp. | 2.6 |
Reliance Industries Ltd. | 2.2 |
Netflix, Inc. | 1.5 |
54.5 |
Top Five Market Sectors as of January 31, 2022
% of fund's net assets | |
Information Technology | 44.6 |
Communication Services | 21.5 |
Consumer Discretionary | 16.0 |
Health Care | 7.1 |
Financials | 3.6 |
Asset Allocation (% of fund's net assets)
As of January 31, 2022* | ||
Stocks | 98.7% | |
Convertible Securities | 0.3% | |
Other Investments | 0.1% | |
Short-Term Investments and Net Other Assets (Liabilities) | 0.9% |
* Foreign investments - 10.6%
Schedule of Investments January 31, 2022 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.6% | |||
Shares | Value | ||
COMMUNICATION SERVICES - 21.2% | |||
Entertainment - 2.8% | |||
Activision Blizzard, Inc. | 188,522 | $14,895,123 | |
Electronic Arts, Inc. | 179 | 23,746 | |
NetEase, Inc. ADR | 1,186 | 122,585 | |
Netflix, Inc. (a) | 84,734 | 36,193,281 | |
Roblox Corp. (a) | 68,900 | 4,537,754 | |
Sea Ltd. ADR (a) | 8,400 | 1,262,604 | |
Spotify Technology SA (a) | 4,753 | 932,824 | |
Take-Two Interactive Software, Inc. (a) | 1,722 | 281,271 | |
The Walt Disney Co. (a) | 64,445 | 9,213,702 | |
67,462,890 | |||
Interactive Media & Services - 18.4% | |||
Alphabet, Inc.: | |||
Class A (a) | 66,914 | 181,073,968 | |
Class C (a) | 26,880 | 72,951,514 | |
Match Group, Inc. (a) | 20,495 | 2,309,787 | |
Meta Platforms, Inc. Class A (a) | 275,231 | 86,218,863 | |
Snap, Inc. Class A (a) | 709,456 | 23,085,698 | |
Taboola.com Ltd. (a)(b) | 430,300 | 2,603,315 | |
Tencent Holdings Ltd. | 16,255 | 1,018,575 | |
Tencent Holdings Ltd. sponsored ADR (b) | 370,140 | 23,148,556 | |
Twitter, Inc. (a) | 829,968 | 31,132,100 | |
Vimeo, Inc. (a) | 25,821 | 378,278 | |
Yandex NV Series A (a) | 238,793 | 11,476,392 | |
435,397,046 | |||
Wireless Telecommunication Services - 0.0% | |||
T-Mobile U.S., Inc. (a) | 5,647 | 610,836 | |
TOTAL COMMUNICATION SERVICES | 503,470,772 | ||
CONSUMER DISCRETIONARY - 15.8% | |||
Automobiles - 1.5% | |||
Rivian Automotive, Inc. | 1,300 | 85,462 | |
Tesla, Inc. (a) | 37,000 | 34,658,640 | |
34,744,102 | |||
Hotels, Restaurants & Leisure - 1.7% | |||
Airbnb, Inc. Class A (a) | 166,244 | 25,596,589 | |
Churchill Downs, Inc. | 58,362 | 12,273,529 | |
Marriott International, Inc. Class A (a) | 4,239 | 682,988 | |
Vail Resorts, Inc. | 1,700 | 471,070 | |
Wynn Resorts Ltd. (a) | 9,565 | 817,329 | |
39,841,505 | |||
Internet & Direct Marketing Retail - 8.9% | |||
Alibaba Group Holding Ltd. sponsored ADR (a) | 59,120 | 7,436,705 | |
Amazon.com, Inc. (a) | 53,981 | 161,482,542 | |
ContextLogic, Inc. (a)(b) | 17,897 | 47,427 | |
Deliveroo PLC Class A (a)(c) | 1,829,275 | 3,843,241 | |
Etsy, Inc. (a) | 31,119 | 4,888,173 | |
Farfetch Ltd. Class A (a) | 159,319 | 3,458,815 | |
Global-e Online Ltd. (a) | 23,519 | 839,863 | |
JD.com, Inc. Class A (a) | 774 | 29,336 | |
Meituan Class B (a)(c) | 605,900 | 18,076,628 | |
Pinduoduo, Inc. ADR (a) | 167,760 | 10,038,758 | |
thredUP, Inc. (a) | 7,765 | 71,982 | |
Zomato Ltd. (a)(d) | 368,500 | 402,022 | |
210,615,492 | |||
Multiline Retail - 0.1%�� | |||
Dollar Tree, Inc. (a) | 24,817 | 3,256,487 | |
Specialty Retail - 1.8% | |||
Carvana Co. Class A (a) | 50,800 | 8,232,648 | |
Five Below, Inc. (a) | 89,513 | 14,680,132 | |
Lowe's Companies, Inc. | 80,309 | 19,061,341 | |
41,974,121 | |||
Textiles, Apparel & Luxury Goods - 1.8% | |||
Kontoor Brands, Inc. | 488 | 24,054 | |
lululemon athletica, Inc. (a) | 74,713 | 24,936,211 | |
LVMH Moet Hennessy Louis Vuitton SE | 22,450 | 18,439,924 | |
43,400,189 | |||
TOTAL CONSUMER DISCRETIONARY | 373,831,896 | ||
CONSUMER STAPLES - 1.3% | |||
Beverages - 1.1% | |||
Diageo PLC | 221,479 | 11,176,140 | |
Monster Beverage Corp. (a) | 155,624 | 13,495,713 | |
24,671,853 | |||
Food & Staples Retailing - 0.2% | |||
Costco Wholesale Corp. | 10,453 | 5,280,124 | |
TOTAL CONSUMER STAPLES | 29,951,977 | ||
ENERGY - 3.5% | |||
Oil, Gas & Consumable Fuels - 3.5% | |||
Cenovus Energy, Inc. (Canada) | 12,733 | 185,213 | |
Diamondback Energy, Inc. | 97,600 | 12,313,216 | |
EOG Resources, Inc. | 1,014 | 113,041 | |
Hess Corp. | 83,784 | 7,732,425 | |
Reliance Industries Ltd. | 1,606,813 | 51,815,465 | |
Reliance Industries Ltd. sponsored GDR (c) | 165,730 | 10,662,034 | |
82,821,394 | |||
FINANCIALS - 3.6% | |||
Banks - 2.4% | |||
Fifth Third Bancorp | 331,496 | 14,794,666 | |
Huntington Bancshares, Inc. | 1,520,883 | 22,904,498 | |
Signature Bank | 57,165 | 17,414,174 | |
Wintrust Financial Corp. | 26,838 | 2,632,003 | |
57,745,341 | |||
Capital Markets - 1.2% | |||
Coinbase Global, Inc. (a)(b) | 86,648 | 16,476,117 | |
S&P Global, Inc. | 25,792 | 10,709,354 | |
27,185,471 | |||
TOTAL FINANCIALS | 84,930,812 | ||
HEALTH CARE - 7.1% | |||
Biotechnology - 2.9% | |||
Alnylam Pharmaceuticals, Inc. (a) | 121,922 | 16,776,467 | |
Amgen, Inc. | 7,432 | 1,688,104 | |
Arcutis Biotherapeutics, Inc. (a) | 44,805 | 677,004 | |
Ascendis Pharma A/S sponsored ADR (a) | 22,715 | 2,763,053 | |
ChemoCentryx, Inc. (a) | 20,440 | 549,632 | |
GenSight Biologics SA (a)(b) | 16,325 | 76,545 | |
Ionis Pharmaceuticals, Inc. (a) | 2,477 | 78,769 | |
Regeneron Pharmaceuticals, Inc. (a) | 46,429 | 28,256,225 | |
Relay Therapeutics, Inc. (a) | 256,950 | 5,686,304 | |
Trevena, Inc. (a)(b) | 34,332 | 18,659 | |
Twist Bioscience Corp. (a) | 61,600 | 3,660,272 | |
Vertex Pharmaceuticals, Inc. (a) | 17,119 | 4,160,773 | |
Xencor, Inc. (a) | 97,788 | 3,360,974 | |
67,752,781 | |||
Health Care Equipment & Supplies - 1.6% | |||
DexCom, Inc. (a) | 36,365 | 15,654,405 | |
Figs, Inc. Class A (a) | 4,073 | 91,561 | |
Insulet Corp. (a) | 63,801 | 15,822,648 | |
Intuitive Surgical, Inc. (a) | 13,617 | 3,869,679 | |
Neuronetics, Inc. (a) | 2,974 | 10,647 | |
Outset Medical, Inc. (a) | 3,243 | 120,607 | |
Pulmonx Corp. (a)(b) | 3,042 | 74,073 | |
Tandem Diabetes Care, Inc. (a) | 15,741 | 1,859,170 | |
37,502,790 | |||
Health Care Providers & Services - 1.0% | |||
agilon health, Inc. (a) | 38,967 | 646,073 | |
Cigna Corp. | 5,853 | 1,348,882 | |
Guardant Health, Inc. (a) | 177,475 | 12,343,386 | |
Humana, Inc. | 21,593 | 8,475,253 | |
22,813,594 | |||
Health Care Technology - 0.0% | |||
Castlight Health, Inc. Class B (a) | 3,567 | 7,277 | |
Certara, Inc. (a) | 21,971 | 587,285 | |
594,562 | |||
Life Sciences Tools & Services - 1.3% | |||
10X Genomics, Inc. (a) | 76,934 | 7,406,436 | |
Bruker Corp. | 196,369 | 13,078,175 | |
Nanostring Technologies, Inc. (a) | 228,132 | 7,920,743 | |
Olink Holding AB ADR (a) | 84,628 | 1,369,281 | |
Pacific Biosciences of California, Inc. (a) | 88,300 | 987,194 | |
Seer, Inc. (a) | 46,825 | 736,557 | |
31,498,386 | |||
Pharmaceuticals - 0.3% | |||
AstraZeneca PLC sponsored ADR | 129,423 | 7,533,713 | |
Elanco Animal Health, Inc. (a) | 6,812 | 177,384 | |
TherapeuticsMD, Inc. (a) | 26,393 | 8,010 | |
7,719,107 | |||
TOTAL HEALTH CARE | 167,881,220 | ||
INDUSTRIALS - 1.4% | |||
Commercial Services & Supplies - 0.1% | |||
Copart, Inc. (a) | 24,418 | 3,156,027 | |
Electrical Equipment - 0.0% | |||
Array Technologies, Inc. (a) | 17,877 | 188,424 | |
Professional Services - 0.9% | |||
Verisk Analytics, Inc. | 104,039 | 20,405,169 | |
Road & Rail - 0.4% | |||
CSX Corp. | 21,966 | 751,677 | |
Lyft, Inc. (a) | 245,136 | 9,442,639 | |
10,194,316 | |||
TOTAL INDUSTRIALS | 33,943,936 | ||
INFORMATION TECHNOLOGY - 44.6% | |||
Communications Equipment - 0.3% | |||
Cisco Systems, Inc. | 115,200 | 6,413,184 | |
IT Services - 5.2% | |||
Block, Inc. Class A (a) | 75,924 | 9,284,746 | |
Cloudflare, Inc. (a) | 12,200 | 1,176,080 | |
Gartner, Inc. (a) | 98,152 | 28,845,891 | |
MasterCard, Inc. Class A | 76,760 | 29,658,529 | |
MongoDB, Inc. Class A (a) | 25,824 | 10,461,561 | |
PayPal Holdings, Inc. (a) | 54,472 | 9,365,916 | |
Snowflake Computing, Inc. (a) | 1,800 | 496,620 | |
Twilio, Inc. Class A (a) | 116,397 | 23,991,750 | |
Visa, Inc. Class A | 4,175 | 944,260 | |
Wix.com Ltd. (a) | 63,594 | 8,354,344 | |
122,579,697 | |||
Semiconductors & Semiconductor Equipment - 8.3% | |||
Analog Devices, Inc. | 23,021 | 3,774,753 | |
Applied Materials, Inc. | 108,952 | 15,054,987 | |
ASML Holding NV | 35,717 | 24,187,552 | |
Lam Research Corp. | 20,230 | 11,934,082 | |
Marvell Technology, Inc. | 866,045 | 61,835,613 | |
NVIDIA Corp. | 249,213 | 61,022,295 | |
NXP Semiconductors NV | 16,564 | 3,402,908 | |
Skyworks Solutions, Inc. | 8,492 | 1,244,248 | |
Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR | 125,184 | 15,351,314 | |
197,807,752 | |||
Software - 18.8% | |||
Adobe, Inc. (a) | 54,479 | 29,108,130 | |
ANSYS, Inc. (a) | 15,760 | 5,358,558 | |
Aspen Technology, Inc. (a) | 65,503 | 9,835,930 | |
Autodesk, Inc. (a) | 32,807 | 8,194,861 | |
Blend Labs, Inc. (b) | 16,081 | 128,005 | |
Cadence Design Systems, Inc. (a) | 82,042 | 12,481,870 | |
CCC Intelligent Solutions Holdings, Inc. Class A (a)(b) | 230,676 | 2,459,006 | |
Dropbox, Inc. Class A (a) | 10,755 | 266,186 | |
Duck Creek Technologies, Inc. (a) | 1,932 | 49,363 | |
Dynatrace, Inc. (a) | 3,350 | 183,781 | |
Elastic NV (a) | 130,874 | 12,204,001 | |
Epic Games, Inc. (a)(d)(e) | 5,200 | 4,454,788 | |
HIVE Blockchain Technologies Ltd. (a)(b) | 199,440 | 392,243 | |
Intuit, Inc. | 33,113 | 18,385,331 | |
Manhattan Associates, Inc. (a) | 14,391 | 1,926,523 | |
Microsoft Corp. | 952,225 | 296,122,924 | |
Salesforce.com, Inc. (a) | 97,571 | 22,697,942 | |
Stripe, Inc. Class B (a)(d)(e) | 7,800 | 282,750 | |
Synopsys, Inc. (a) | 35,683 | 11,079,572 | |
Workday, Inc. Class A (a) | 5,443 | 1,377,133 | |
Zoom Video Communications, Inc. Class A (a) | 61,590 | 9,502,105 | |
446,491,002 | |||
Technology Hardware, Storage & Peripherals - 12.0% | |||
Apple, Inc. | 1,626,737 | 284,321,093 | |
Western Digital Corp. (a) | 23,546 | 1,218,270 | |
285,539,363 | |||
TOTAL INFORMATION TECHNOLOGY | 1,058,830,998 | ||
REAL ESTATE - 0.1% | |||
Equity Real Estate Investment Trusts (REITs) - 0.1% | |||
Equinix, Inc. | 3,846 | 2,787,965 | |
TOTAL COMMON STOCKS | |||
(Cost $1,880,206,578) | 2,338,450,970 | ||
Preferred Stocks - 0.4% | |||
Convertible Preferred Stocks - 0.3% | |||
COMMUNICATION SERVICES - 0.3% | |||
Interactive Media & Services - 0.3% | |||
Reddit, Inc.: | |||
Series E (d)(e) | 2,900 | 179,204 | |
Series F (d)(e) | 108,712 | 6,717,793 | |
6,896,997 | |||
CONSUMER DISCRETIONARY - 0.0% | |||
Textiles, Apparel & Luxury Goods - 0.0% | |||
Discord, Inc. Series I (d)(e) | 300 | 165,187 | |
INFORMATION TECHNOLOGY - 0.0% | |||
IT Services - 0.0% | |||
ByteDance Ltd. Series E1 (a)(d)(e) | 8,180 | 1,216,039 | |
Semiconductors & Semiconductor Equipment - 0.0% | |||
Tenstorrent, Inc. Series C1 (d)(e) | 3,400 | 255,136 | |
Software - 0.0% | |||
Stripe, Inc. Series H (d)(e) | 3,000 | 108,750 | |
TOTAL INFORMATION TECHNOLOGY | 1,579,925 | ||
TOTAL CONVERTIBLE PREFERRED STOCKS | 8,642,109 | ||
Nonconvertible Preferred Stocks - 0.1% | |||
CONSUMER DISCRETIONARY - 0.1% | |||
Automobiles - 0.1% | |||
Waymo LLC: | |||
Series A2 (a)(d)(e) | 2,467 | 226,278 | |
Series B2 (d)(e) | 15,200 | 1,394,174 | |
1,620,452 | |||
TOTAL PREFERRED STOCKS | |||
(Cost $9,831,000) | 10,262,561 | ||
Principal Amount | Value | ||
Preferred Securities - 0.1% | |||
CONSUMER DISCRETIONARY - 0.1% | |||
Internet & Direct Marketing Retail - 0.1% | |||
Circle Internet Financial Ltd. 0% (d)(f) | 1,758,000 | 1,978,077 | |
INFORMATION TECHNOLOGY - 0.0% | |||
Semiconductors & Semiconductor Equipment - 0.0% | |||
Tenstorrent, Inc. 0% (d)(e)(f) | 190,000 | 190,000 | |
TOTAL PREFERRED SECURITIES | |||
(Cost $1,948,000) | 2,168,077 | ||
Shares | Value | ||
Money Market Funds - 2.4% | |||
Fidelity Cash Central Fund 0.08% (g) | 26,844,061 | 26,849,430 | |
Fidelity Securities Lending Cash Central Fund 0.08% (g)(h) | 30,251,769 | 30,254,794 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $57,104,224) | 57,104,224 | ||
TOTAL INVESTMENT IN SECURITIES - 101.5% | |||
(Cost $1,949,089,802) | 2,407,985,832 | ||
NET OTHER ASSETS (LIABILITIES) - (1.5)% | (36,486,003) | ||
NET ASSETS - 100% | $2,371,499,829 |
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 $32,581,903 or 1.4% of net assets.
(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 $17,570,198 or 0.7% of net assets.
(e) Level 3 security
(f) Security is perpetual in nature with no stated maturity date.
(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 |
Circle Internet Financial Ltd. 0% | 5/11/21 | $1,758,000 |
Discord, Inc. Series I | 9/15/21 | $165,187 |
Epic Games, Inc. | 7/13/20 - 3/29/21 | $4,292,000 |
Reddit, Inc. Series E | 5/18/21 | $123,175 |
Reddit, Inc. Series F | 8/11/21 | $6,717,793 |
Stripe, Inc. Class B | 5/18/21 | $313,001 |
Stripe, Inc. Series H | 3/15/21 | $120,375 |
Tenstorrent, Inc. Series C1 | 4/23/21 | $202,145 |
Tenstorrent, Inc. 0% | 4/23/21 | $190,000 |
Waymo LLC Series A2 | 5/8/20 | $211,834 |
Waymo LLC Series B2 | 6/11/21 | $1,394,174 |
Zomato Ltd. | 12/9/20 - 2/5/21 | $225,143 |
Affiliated Central Funds
Fiscal year to date information regarding the Fund's investments in Fidelity Central Funds, including the ownership percentage, is presented below.
Fund | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Realized Gain/Loss | Change in Unrealized appreciation (depreciation) | Value, end of period | % ownership, end of period |
Fidelity Cash Central Fund 0.08% | $7,857,015 | $286,138,980 | $267,146,565 | $2,464 | $-- | $-- | $26,849,430 | 0.0% |
Fidelity Securities Lending Cash Central Fund 0.08% | 24,430,254 | 518,479,309 | 512,654,769 | 75,472 | -- | -- | 30,254,794 | 0.1% |
Total | $32,287,269 | $804,618,289 | $779,801,334 | $77,936 | $-- | $-- | $57,104,224 |
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, 2022, 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 | $510,367,769 | $502,452,197 | $1,018,575 | $6,896,997 |
Consumer Discretionary | 375,617,535 | 333,040,745 | 40,791,151 | 1,785,639 |
Consumer Staples | 29,951,977 | 18,775,837 | 11,176,140 | -- |
Energy | 82,821,394 | 20,343,895 | 62,477,499 | -- |
Financials | 84,930,812 | 84,930,812 | -- | -- |
Health Care | 167,881,220 | 167,804,675 | 76,545 | -- |
Industrials | 33,943,936 | 33,943,936 | -- | -- |
Information Technology | 1,060,410,923 | 1,054,093,460 | -- | 6,317,463 |
Real Estate | 2,787,965 | 2,787,965 | -- | -- |
Preferred Securities | 2,168,077 | -- | 1,978,077 | 190,000 |
Money Market Funds | 57,104,224 | 57,104,224 | -- | -- |
Total Investments in Securities: | $2,407,985,832 | $2,275,277,746 | $117,517,987 | $15,190,099 |
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
United States of America | 89.4% |
India | 2.7% |
Cayman Islands | 2.7% |
Netherlands | 2.1% |
United Kingdom | 1.0% |
Others (Individually Less Than 1%) | 2.1% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
January 31, 2022 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $31,069,489) — See accompanying schedule: Unaffiliated issuers (cost $1,891,985,578) | $2,350,881,608 | |
Fidelity Central Funds (cost $57,104,224) | 57,104,224 | |
Total Investment in Securities (cost $1,949,089,802) | $2,407,985,832 | |
Receivable for investments sold | 6,622,084 | |
Receivable for fund shares sold | 2,404,214 | |
Dividends receivable | 734,016 | |
Distributions receivable from Fidelity Central Funds | 8,707 | |
Total assets | 2,417,754,853 | |
Liabilities | ||
Payable for investments purchased | $7,993,527 | |
Payable for fund shares redeemed | 5,442,886 | |
Accrued management fee | 1,031,591 | |
Other payables and accrued expenses | 1,531,945 | |
Collateral on securities loaned | 30,255,075 | |
Total liabilities | 46,255,024 | |
Net Assets | $2,371,499,829 | |
Net Assets consist of: | ||
Paid in capital | $1,859,731,321 | |
Total accumulated earnings (loss) | 511,768,508 | |
Net Assets | $2,371,499,829 | |
Net Asset Value, offering price and redemption price per share ($2,371,499,829 ÷ 126,175,265 shares) | $18.80 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended January 31, 2022 (Unaudited) | ||
Investment Income | ||
Dividends | $5,054,580 | |
Income from Fidelity Central Funds (including $75,472 from security lending) | 77,936 | |
Total income | 5,132,516 | |
Expenses | ||
Management fee | $6,778,871 | |
Independent trustees' fees and expenses | 4,734 | |
Interest | 1,605 | |
Total expenses before reductions | 6,785,210 | |
Expense reductions | (37) | |
Total expenses after reductions | 6,785,173 | |
Net investment income (loss) | (1,652,657) | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 82,367,402 | |
Foreign currency transactions | (65,574) | |
Total net realized gain (loss) | 82,301,828 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers (net of increase in deferred foreign taxes of $697,214) | (179,977,942) | |
Assets and liabilities in foreign currencies | (723) | |
Total change in net unrealized appreciation (depreciation) | (179,978,665) | |
Net gain (loss) | (97,676,837) | |
Net increase (decrease) in net assets resulting from operations | $(99,329,494) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended January 31, 2022 (Unaudited) | Year ended July 31, 2021 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $(1,652,657) | $(849,937) |
Net realized gain (loss) | 82,301,828 | 115,247,310 |
Change in net unrealized appreciation (depreciation) | (179,978,665) | 450,605,649 |
Net increase (decrease) in net assets resulting from operations | (99,329,494) | 565,003,022 |
Distributions to shareholders | (102,430,536) | (4,991,250) |
Share transactions | ||
Proceeds from sales of shares | 325,507,612 | 1,548,721,347 |
Reinvestment of distributions | 102,430,536 | 4,991,250 |
Cost of shares redeemed | (485,237,530) | (509,276,228) |
Net increase (decrease) in net assets resulting from share transactions | (57,299,382) | 1,044,436,369 |
Total increase (decrease) in net assets | (259,059,412) | 1,604,448,141 |
Net Assets | ||
Beginning of period | 2,630,559,241 | 1,026,111,100 |
End of period | $2,371,499,829 | $2,630,559,241 |
Other Information | ||
Shares | ||
Sold | 16,078,908 | 86,429,066 |
Issued in reinvestment of distributions | 4,958,146 | 329,033 |
Redeemed | (24,078,214) | (29,368,972) |
Net increase (decrease) | (3,041,160) | 57,389,127 |
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, | |||
2022 | 2021 | 2020 | 2019 A | |
Selected Per–Share Data | ||||
Net asset value, beginning of period | $20.36 | $14.29 | $10.50 | $10.00 |
Income from Investment Operations | ||||
Net investment income (loss)B,C | (.01) | (.01) | .02 | –D |
Net realized and unrealized gain (loss) | (.76) | 6.15 | 3.81 | .50 |
Total from investment operations | (.77) | 6.14 | 3.83 | .50 |
Distributions from net investment income | – | (.01) | (.01) | – |
Distributions from net realized gain | (.79) | (.06) | (.02) | – |
Total distributions | (.79) | (.07) | (.04)E | – |
Net asset value, end of period | $18.80 | $20.36 | $14.29 | $10.50 |
Total ReturnF,G | (4.10)% | 43.11% | 36.54% | 5.00% |
Ratios to Average Net AssetsC,H,I | ||||
Expenses before reductions | .50%J | .50% | .50% | .50%J |
Expenses net of fee waivers, if any | .50%J | .50% | .50% | .50%J |
Expenses net of all reductions | .50%J | .50% | .49% | .50%J |
Net investment income (loss) | (.12)%J | (.05)% | .16% | .08%J |
Supplemental Data | ||||
Net assets, end of period (000 omitted) | $2,371,500 | $2,630,559 | $1,026,111 | $1,050 |
Portfolio turnover rateK | 36%J,L | 36%L | 102%L | 5%M |
A For the period June 13, 2019 (commencement of operations) through July 31, 2019.
B Calculated based on average shares outstanding during the period.
C Net investment income (loss) is affected by the timing of the declaration of dividends by any underlying mutual funds or exchange-traded funds (ETFs). Net investment income (loss) of any such underlying funds is not included in the Fund's net investment income (loss) ratio.
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 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).
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, 2022
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.
Funds may invest 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 Schedule of Investments lists any Fidelity Central Funds held as an investment as of period end, but does not include the underlying holdings of each Fidelity Central Fund. An investing fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
Based on its investment objective, each Fidelity Central Fund may invest or participate in various investment vehicles or strategies that are similar to those of the investing fund. These strategies are consistent with the investment objectives of the investing fund and may involve certain economic risks which may cause a decline in value of each of the Fidelity Central Funds and thus a decline in the value of the investing fund.
Fidelity Central Fund | Investment Manager | Investment Objective | Investment Practices | Expense Ratio(a) |
Fidelity Money Market Central Funds | Fidelity Management & Research Company LLC (FMR) | Each fund seeks to obtain a high level of current income consistent with the preservation of capital and liquidity. | Short-term Investments | Less than .005% |
(a) Expenses expressed as a percentage of average net assets and are as of each underlying Central Fund's most recent annual or semi-annual shareholder report.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds which contain the significant accounting policies (including investment valuation policies) of those funds, and are not covered by the Report of Independent Registered Public Accounting Firm, are available on the Securities and Exchange Commission 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 Fund's Schedule of Investments lists any underlying mutual funds or exchange-traded funds (ETFs) but does not include the underlying holdings of these funds. 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 – Unadjusted 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, 2022 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. Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of a fund include an amount in addition to trade execution, which may be rebated back to a fund. Any such rebates are included in net realized gain (loss) on investments in the Statement of Operations. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expenses included in the accompanying financial statements reflect the expenses of that fund and do not include any expenses associated with any underlying mutual funds or exchange-traded funds. Although not included in a fund's expenses, a fund indirectly bears its proportionate share of these expenses through the net asset value of each underlying mutual fund or exchange-traded fund. 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, certain foreign taxes, redemptions in kind, net operating losses 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 | $608,945,150 |
Gross unrealized depreciation | (164,487,762) |
Net unrealized appreciation (depreciation) | $444,457,388 |
Tax cost | $1,963,528,444 |
Restricted Securities (including Private Placements). Funds may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities held at period end is included at the end of the Schedule of Investments, if applicable.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and in-kind transactions, as applicable, are noted in the table below.
Purchases ($) | Sales ($) | |
Fidelity OTC K6 Portfolio | 475,069,680 | 724,914,255 |
Unaffiliated Exchanges In-Kind. Shares that were exchanged for investments, including accrued interest and cash, if any, are shown in the table below. The amount of in-kind exchanges is included in share transactions in the accompanying Statement of Changes in Net Assets.
Shares | Total Proceeds ($) | |
Fidelity OTC K6 Portfolio | 3,409,453 | 68,930,768 |
Prior Fiscal Year Unaffiliated Redemptions In-Kind. Shares that were redeemed in-kind for investments, including accrued interest and cash, if any, are shown in the table below; along with realized gain or loss 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. There was no gain or loss for federal income tax purposes.
Shares | Total net realized gain or loss ($) | Total Proceeds ($) | |
Fidelity OTC K6 Portfolio | 4,189,900 | 33,010,502 | 73,155,655 |
Prior Year Unaffiliated Exchanges In-Kind. Shares that were exchanged for investments, including accrued interest and cash, if any, are shown in the table below. The amount of in-kind exchanges is included in share transactions in the accompanying Statement of Changes in Net Assets.
Shares | Total Proceeds ($) | |
Fidelity OTC K6 Portfolio | 47,775,932 | 884,784,797 |
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 | $5,512 |
Interfund Lending Program. Pursuant to an Exemptive Order issued by the Securities and Exchange Commission (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 | $14,024,615 | .32% | $1,605 |
Interfund Trades. Funds may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Any interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note. Interfund trades during the period are noted in the table below.
Purchases ($) | Sales ($) | Realized Gain (Loss) ($) | |
Fidelity OTC K6 Portfolio | 38,258,052 | 67,365,112 | 9,075,774 |
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 commitment fees on the pro-rata portion of the line of credit are borne by the investment adviser. 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 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 | $7,568 | $14 | $– |
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 $37.
9. Other.
A 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, a fund may also enter into contracts that provide general indemnifications. A fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against a 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, 2021 to January 31, 2022).
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, 2021 | Ending Account Value January 31, 2022 | Expenses Paid During Period-B August 1, 2021 to January 31, 2022 | |
Fidelity OTC K6 Portfolio | .50% | |||
Actual | $1,000.00 | $959.00 | $2.47 | |
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
OTC-K6-SANN-0422
1.9893896.102
Fidelity® Growth & Income Portfolio
Semi-Annual Report
January 31, 2022
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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. © 2022 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 COVID-19 emerged as a public health emergency that had a major influence on financial markets, primarily based on its impact on the global economy and corporate earnings. On March 11, 2020, the World Health Organization declared the COVID-19 outbreak a pandemic, citing sustained risk of further global spread. The pandemic prompted a number of measures to limit the spread of COVID-19, 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. To help stem the turmoil, the U.S. government took unprecedented action – in concert with the U.S. Federal Reserve and central banks around the world – to help support consumers, businesses, and the broader economy, and to limit disruption to the financial system.
In general, the overall impact of the pandemic lessened in 2021, amid a resilient economy and widespread distribution of three COVID-19 vaccines granted emergency use authorization from the U.S. Food and Drug Administration (FDA) early in the year. Still, the situation remains dynamic, and the extent and duration of its influence on financial markets and the economy is highly uncertain, due in part to a recent spike in cases based on highly contagious variants of the coronavirus.
Extreme events such as the COVID-19 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 continue to take extra steps to be responsive to customer needs. We encourage you to visit us online, where we offer ongoing updates, commentary, and analysis on the markets and our funds.
Investment Summary (Unaudited)
Top Ten Stocks as of January 31, 2022
% of fund's net assets | |
Microsoft Corp. | 6.7 |
Exxon Mobil Corp. | 5.5 |
Wells Fargo & Co.(a) | 5.3 |
General Electric Co. | 5.3 |
Bank of America Corp. | 3.7 |
Apple, Inc. | 3.7 |
Comcast Corp. Class A(a) | 2.6 |
Altria Group, Inc. | 2.5 |
Qualcomm, Inc.(a) | 1.9 |
Bristol-Myers Squibb Co.(a) | 1.8 |
39.0 |
(a) Security or a portion of the security is pledged as collateral for call options written.
Top Five Market Sectors as of January 31, 2022
% of fund's net assets | |
Information Technology | 20.5 |
Financials | 18.8 |
Industrials | 16.5 |
Health Care | 13.6 |
Energy | 10.1 |
Asset Allocation (% of fund's net assets)
As of January 31, 2022*,** | ||
Stocks | 99.3% | |
Convertible Securities | 0.3% | |
Other Investments | 0.1% | |
Short-Term Investments and Net Other Assets (Liabilities) | 0.3% |
* Foreign investments - 13.8%
** Written options - (0.0)%
Percentages shown as 0.0% may reflect amounts less than 0.05%.
Schedule of Investments January 31, 2022 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.3% | |||
Shares | Value (000s) | ||
COMMUNICATION SERVICES - 6.0% | |||
Diversified Telecommunication Services - 0.8% | |||
Cellnex Telecom SA (a) | 291,700 | $13,227 | |
Elisa Corp. (A Shares) | 113,800 | 6,685 | |
Verizon Communications, Inc. | 767,174 | 40,837 | |
60,749 | |||
Entertainment - 1.9% | |||
Activision Blizzard, Inc. | 168,450 | 13,309 | |
Nintendo Co. Ltd. ADR | 365,000 | 22,302 | |
The Walt Disney Co. (b) | 496,190 | 70,940 | |
Universal Music Group NV | 1,695,400 | 41,858 | |
Warner Music Group Corp. Class A | 180,300 | 7,663 | |
156,072 | |||
Media - 3.3% | |||
Comcast Corp. Class A (c) | 4,257,312 | 212,823 | |
Interpublic Group of Companies, Inc. | 1,603,231 | 56,979 | |
269,802 | |||
TOTAL COMMUNICATION SERVICES | 486,623 | ||
CONSUMER DISCRETIONARY - 3.3% | |||
Auto Components - 0.6% | |||
BorgWarner, Inc. | 1,068,052 | 46,834 | |
Hotels, Restaurants & Leisure - 0.6% | |||
Churchill Downs, Inc. | 85,000 | 17,876 | |
Marriott International, Inc. Class A (b) | 104,723 | 16,873 | |
Starbucks Corp. | 108,360 | 10,654 | |
45,403 | |||
Household Durables - 0.7% | |||
Sony Group Corp. sponsored ADR | 128,714 | 14,372 | |
Whirlpool Corp. | 192,594 | 40,481 | |
54,853 | |||
Specialty Retail - 1.3% | |||
Lowe's Companies, Inc. (c) | 453,314 | 107,594 | |
Williams-Sonoma, Inc. | 11,200 | 1,798 | |
109,392 | |||
Textiles, Apparel & Luxury Goods - 0.1% | |||
Puma AG | 70,254 | 7,514 | |
Tapestry, Inc. | 3,700 | 140 | |
7,654 | |||
TOTAL CONSUMER DISCRETIONARY | 264,136 | ||
CONSUMER STAPLES - 6.6% | |||
Beverages - 2.2% | |||
Diageo PLC sponsored ADR | 197,411 | 40,262 | |
Keurig Dr. Pepper, Inc. | 1,006,800 | 38,208 | |
Pernod Ricard SA | 62,400 | 13,347 | |
Remy Cointreau SA | 36,314 | 7,573 | |
The Coca-Cola Co. | 1,368,510 | 83,493 | |
182,883 | |||
Food & Staples Retailing - 0.9% | |||
Alimentation Couche-Tard, Inc. Class A (multi-vtg.) | 44,400 | 1,791 | |
Costco Wholesale Corp. | 4,500 | 2,273 | |
Sysco Corp. | 760,336 | 59,420 | |
Walmart, Inc. | 57,300 | 8,011 | |
71,495 | |||
Food Products - 0.3% | |||
Lamb Weston Holdings, Inc. | 338,360 | 21,726 | |
Household Products - 0.4% | |||
Colgate-Palmolive Co. | 62,300 | 5,137 | |
Kimberly-Clark Corp. | 12,500 | 1,721 | |
Procter & Gamble Co. | 10,200 | 1,637 | |
Spectrum Brands Holdings, Inc. | 241,983 | 21,628 | |
30,123 | |||
Tobacco - 2.8% | |||
Altria Group, Inc. | 3,921,167 | 199,509 | |
Swedish Match Co. AB | 3,719,400 | 28,778 | |
228,287 | |||
TOTAL CONSUMER STAPLES | 534,514 | ||
ENERGY - 10.0% | |||
Oil, Gas & Consumable Fuels - 10.0% | |||
Canadian Natural Resources Ltd. | 569,515 | 28,970 | |
Cenovus Energy, Inc. (Canada) | 6,511,273 | 94,712 | |
Enterprise Products Partners LP | 103,500 | 2,447 | |
Exxon Mobil Corp. | 5,874,599 | 446,235 | |
Hess Corp. (c) | 1,304,064 | 120,352 | |
Imperial Oil Ltd. | 405,526 | 16,592 | |
Kosmos Energy Ltd. (b) | 4,499,975 | 19,485 | |
Magellan Midstream Partners LP | 387,457 | 18,935 | |
Phillips 66 Co. | 284,987 | 24,164 | |
Tourmaline Oil Corp. | 915,900 | 32,654 | |
804,546 | |||
FINANCIALS - 18.8% | |||
Banks - 13.4% | |||
Bank of America Corp. | 6,481,536 | 299,058 | |
JPMorgan Chase & Co. | 522,075 | 77,580 | |
M&T Bank Corp. | 119,194 | 20,189 | |
PNC Financial Services Group, Inc. (c) | 541,901 | 111,626 | |
Truist Financial Corp. | 1,382,432 | 86,844 | |
U.S. Bancorp | 1,053,237 | 61,288 | |
Wells Fargo & Co. (c) | 8,006,770 | 430,764 | |
1,087,349 | |||
Capital Markets - 3.7% | |||
Ashmore Group PLC | 1,225,000 | 4,696 | |
Brookfield Asset Management, Inc. Class A | 300,902 | 16,580 | |
Intercontinental Exchange, Inc. | 12,600 | 1,596 | |
KKR & Co. LP | 505,852 | 35,996 | |
Morgan Stanley | 349,951 | 35,884 | |
Northern Trust Corp. | 797,253 | 92,992 | |
Raymond James Financial, Inc. | 406,570 | 43,044 | |
S&P Global, Inc. | 1,100 | 457 | |
State Street Corp. (c) | 683,591 | 64,599 | |
295,844 | |||
Consumer Finance - 0.4% | |||
Discover Financial Services | 276,268 | 31,978 | |
Insurance - 0.9% | |||
American Financial Group, Inc. | 40,800 | 5,315 | |
Brookfield Asset Management Reinsurance Partners Ltd. | 2,086 | 117 | |
Chubb Ltd. | 120,356 | 23,744 | |
Marsh & McLennan Companies, Inc. | 166,870 | 25,638 | |
Old Republic International Corp. | 213,800 | 5,480 | |
The Travelers Companies, Inc. | 82,627 | 13,731 | |
74,025 | |||
Thrifts & Mortgage Finance - 0.4% | |||
Essent Group Ltd. | 252,223 | 11,511 | |
Radian Group, Inc. | 758,568 | 16,984 | |
28,495 | |||
TOTAL FINANCIALS | 1,517,691 | ||
HEALTH CARE - 13.3% | |||
Biotechnology - 0.0% | |||
Intercept Pharmaceuticals, Inc. (b) | 230,704 | 3,781 | |
Health Care Equipment & Supplies - 1.5% | |||
Abbott Laboratories | 49,300 | 6,284 | |
Becton, Dickinson & Co. | 102,086 | 25,944 | |
Boston Scientific Corp. (b) | 1,255,096 | 53,844 | |
GN Store Nord A/S | 48,000 | 2,905 | |
Koninklijke Philips Electronics NV (depositary receipt) (NY Reg.) | 698,645 | 23,251 | |
Sonova Holding AG | 24,692 | 8,796 | |
121,024 | |||
Health Care Providers & Services - 5.7% | |||
Cardinal Health, Inc. | 789,011 | 40,689 | |
Cigna Corp. | 372,154 | 85,767 | |
CVS Health Corp. (c) | 1,067,412 | 113,690 | |
Humana, Inc. | 32,900 | 12,913 | |
McKesson Corp. (c) | 366,834 | 94,174 | |
UnitedHealth Group, Inc. | 238,387 | 112,655 | |
459,888 | |||
Life Sciences Tools & Services - 0.2% | |||
Danaher Corp. | 57,203 | 16,348 | |
Pharmaceuticals - 5.9% | |||
Bayer AG | 1,136,335 | 69,037 | |
Bristol-Myers Squibb Co. (c) | 2,216,336 | 143,818 | |
Eli Lilly & Co. | 85,448 | 20,968 | |
GlaxoSmithKline PLC sponsored ADR | 1,998,911 | 89,591 | |
Johnson & Johnson | 625,589 | 107,783 | |
Sanofi SA sponsored ADR | 329,697 | 17,144 | |
UCB SA | 248,600 | 24,737 | |
Viatris, Inc. | 86,400 | 1,293 | |
474,371 | |||
TOTAL HEALTH CARE | 1,075,412 | ||
INDUSTRIALS - 16.5% | |||
Aerospace & Defense - 2.7% | |||
Airbus Group NV (b) | 254,400 | 32,485 | |
General Dynamics Corp. | 138,461 | 29,368 | |
Huntington Ingalls Industries, Inc. | 103,184 | 19,316 | |
MTU Aero Engines AG | 51,500 | 10,959 | |
Raytheon Technologies Corp. | 189,325 | 17,075 | |
Safran SA | 117,300 | 14,201 | |
The Boeing Co. (b) | 464,100 | 92,931 | |
216,335 | |||
Air Freight & Logistics - 2.2% | |||
DSV A/S | 24,000 | 4,876 | |
Expeditors International of Washington, Inc. | 8,400 | 962 | |
FedEx Corp. | 106,674 | 26,227 | |
United Parcel Service, Inc. Class B (c) | 705,899 | 142,740 | |
174,805 | |||
Airlines - 0.0% | |||
Copa Holdings SA Class A (b) | 30,400 | 2,541 | |
Building Products - 0.4% | |||
A.O. Smith Corp. | 64,800 | 4,952 | |
Johnson Controls International PLC | 387,611 | 28,168 | |
33,120 | |||
Commercial Services & Supplies - 0.6% | |||
GFL Environmental, Inc. | 854,700 | 28,079 | |
Healthcare Services Group, Inc. | 778,598 | 14,163 | |
HNI Corp. | 130,636 | 5,479 | |
Ritchie Bros. Auctioneers, Inc. | 15,600 | 951 | |
48,672 | |||
Electrical Equipment - 1.1% | |||
Acuity Brands, Inc. | 142,015 | 27,200 | |
Hubbell, Inc. Class B | 130,472 | 24,436 | |
Regal Rexnord Corp. | 21,000 | 3,328 | |
Rockwell Automation, Inc. | 19,318 | 5,587 | |
Vertiv Holdings Co. | 1,471,100 | 30,687 | |
91,238 | |||
Industrial Conglomerates - 5.6% | |||
3M Co. | 132,566 | 22,009 | |
General Electric Co. | 4,542,111 | 429,139 | |
451,148 | |||
Machinery - 1.9% | |||
Allison Transmission Holdings, Inc. | 245,786 | 9,337 | |
Caterpillar, Inc. | 39,123 | 7,886 | |
Cummins, Inc. | 54,176 | 11,966 | |
Donaldson Co., Inc. | 597,312 | 33,246 | |
Epiroc AB (A Shares) | 32,700 | 698 | |
Flowserve Corp. | 342,178 | 11,162 | |
Fortive Corp. | 228,788 | 16,139 | |
Kardex AG | 6,600 | 1,832 | |
Nordson Corp. | 99,127 | 23,051 | |
Otis Worldwide Corp. | 87,573 | 7,481 | |
PACCAR, Inc. | 89,500 | 8,323 | |
Stanley Black & Decker, Inc. | 60,218 | 10,517 | |
Westinghouse Air Brake Tech Co. | 136,847 | 12,166 | |
153,804 | |||
Professional Services - 0.5% | |||
Equifax, Inc. | 58,223 | 13,960 | |
RELX PLC (London Stock Exchange) | 898,258 | 27,631 | |
Robert Half International, Inc. | 9,500 | 1,076 | |
42,667 | |||
Road & Rail - 0.6% | |||
Knight-Swift Transportation Holdings, Inc. Class A | 800,409 | 45,287 | |
Trading Companies & Distributors - 0.8% | |||
Brenntag SE | 43,300 | 3,710 | |
Fastenal Co. | 126,376 | 7,163 | |
MSC Industrial Direct Co., Inc. Class A | 7,200 | 588 | |
Watsco, Inc. | 199,391 | 56,340 | |
67,801 | |||
Transportation Infrastructure - 0.1% | |||
Aena SME SA (a)(b) | 43,700 | 7,061 | |
TOTAL INDUSTRIALS | 1,334,479 | ||
INFORMATION TECHNOLOGY - 20.5% | |||
Electronic Equipment & Components - 0.3% | |||
CDW Corp. | 105,964 | 20,032 | |
Vontier Corp. | 112,200 | 3,154 | |
23,186 | |||
IT Services - 4.5% | |||
Amadeus IT Holding SA Class A (b) | 527,700 | 36,285 | |
DXC Technology Co. (b) | 112,900 | 3,396 | |
Edenred SA | 711,800 | 30,574 | |
Fidelity National Information Services, Inc. | 457,732 | 54,891 | |
Genpact Ltd. | 548,871 | 27,306 | |
Global Payments, Inc. | 118,400 | 17,746 | |
IBM Corp. | 196,242 | 26,212 | |
MasterCard, Inc. Class A | 33,667 | 13,008 | |
Unisys Corp. (b) | 805,430 | 14,699 | |
Visa, Inc. Class A | 622,375 | 140,763 | |
364,880 | |||
Semiconductors & Semiconductor Equipment - 3.9% | |||
Analog Devices, Inc. | 148,108 | 24,285 | |
Applied Materials, Inc. | 139,500 | 19,276 | |
Intel Corp. | 699,316 | 34,141 | |
Lam Research Corp. | 26,730 | 15,769 | |
Marvell Technology, Inc. | 357,600 | 25,533 | |
NXP Semiconductors NV | 208,226 | 42,778 | |
Qualcomm, Inc. (c) | 882,972 | 155,191 | |
Teradyne, Inc. | 22,000 | 2,583 | |
319,556 | |||
Software - 7.9% | |||
Intuit, Inc. | 8,000 | 4,442 | |
Microsoft Corp. | 1,744,182 | 542,403 | |
Open Text Corp. | 165,128 | 7,903 | |
SAP SE sponsored ADR (d) | 570,145 | 71,388 | |
Temenos Group AG | 116,330 | 13,944 | |
640,080 | |||
Technology Hardware, Storage & Peripherals - 3.9% | |||
Apple, Inc. | 1,708,812 | 298,666 | |
FUJIFILM Holdings Corp. | 62,600 | 4,196 | |
Samsung Electronics Co. Ltd. | 162,180 | 10,086 | |
312,948 | |||
TOTAL INFORMATION TECHNOLOGY | 1,660,650 | ||
MATERIALS - 2.2% | |||
Chemicals - 0.8% | |||
DuPont de Nemours, Inc. | 729,498 | 55,880 | |
PPG Industries, Inc. | 73,722 | 11,515 | |
67,395 | |||
Metals & Mining - 1.4% | |||
First Quantum Minerals Ltd. | 1,244,300 | 30,649 | |
Freeport-McMoRan, Inc. | 1,712,712 | 63,747 | |
Glencore Xstrata PLC | 3,577,900 | 18,639 | |
113,035 | |||
TOTAL MATERIALS | 180,430 | ||
REAL ESTATE - 1.1% | |||
Equity Real Estate Investment Trusts (REITs) - 1.1% | |||
American Tower Corp. | 135,778 | 34,148 | |
Equinix, Inc. | 1,100 | 797 | |
Public Storage | 2,400 | 860 | |
Simon Property Group, Inc. | 381,560 | 56,166 | |
91,971 | |||
UTILITIES - 1.0% | |||
Electric Utilities - 0.9% | |||
Duke Energy Corp. | 116,721 | 12,263 | |
Entergy Corp. | 134,863 | 15,074 | |
Exelon Corp. | 143,440 | 8,312 | |
Southern Co. | 526,166 | 36,563 | |
72,212 | |||
Multi-Utilities - 0.1% | |||
Sempra Energy | 68,596 | 9,477 | |
TOTAL UTILITIES | 81,689 | ||
TOTAL COMMON STOCKS | |||
(Cost $5,104,142) | 8,032,141 | ||
Convertible Preferred Stocks - 0.2% | |||
HEALTH CARE - 0.2% | |||
Health Care Equipment & Supplies - 0.2% | |||
Becton, Dickinson & Co. 6.50% | 154,800 | 8,162 | |
Boston Scientific Corp. Series A, 5.50% | 92,400 | 10,779 | |
TOTAL CONVERTIBLE PREFERRED STOCKS | |||
(Cost $16,980) | 18,941 | ||
Principal Amount (000s) | Value (000s) | ||
Convertible Bonds - 0.1% | |||
HEALTH CARE - 0.1% | |||
Biotechnology - 0.1% | |||
Intercept Pharmaceuticals, Inc. 2% 5/15/26 (Cost $10,393) | 13,148 | 7,949 | |
Shares | Value (000s) | ||
Other - 0.1% | |||
ENERGY - 0.1% | |||
Oil, Gas & Consumable Fuels - 0.1% | �� | ||
Utica Shale Drilling Program (non-operating revenue interest) (e)(f)(g) | |||
(Cost $18,052) | 18,052,449 | 4,683 | |
Money Market Funds - 0.4% | |||
Fidelity Cash Central Fund 0.08% (h) | 9,087,038 | 9,089 | |
Fidelity Securities Lending Cash Central Fund 0.08% (h)(i) | 20,328,817 | 20,331 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $29,420) | 29,420 | ||
TOTAL INVESTMENT IN SECURITIES - 100.1% | |||
(Cost $5,178,987) | 8,093,134 | ||
NET OTHER ASSETS (LIABILITIES) - (0.1)% | (8,553) | ||
NET ASSETS - 100% | $8,084,581 |
Written Options | ||||||
Counterparty | Number of Contracts | Notional Amount (000s) | Exercise Price | Expiration Date | Value (000s) | |
Call Options | ||||||
Bristol-Myers Squibb Co. | Chicago Board Options Exchange | 2,238 | $14,522 | $70.00 | 3/18/22 | $(94) |
Comcast Corp. Class A | Chicago Board Options Exchange | 2,087 | 10,433 | 55.00 | 3/18/22 | (75) |
CVS Health Corp. | Chicago Board Options Exchange | 1,045 | 11,130 | 105.00 | 3/18/22 | (517) |
CVS Health Corp. | Chicago Board Options Exchange | 1,041 | 11,088 | 110.00 | 3/18/22 | (264) |
Hess Corp. | Chicago Board Options Exchange | 597 | 5,510 | 100.00 | 3/18/22 | (176) |
Lowe's Companies, Inc. | Chicago Board Options Exchange | 448 | 10,633 | 260.00 | 2/18/22 | (23) |
McKesson Corp. | Chicago Board Options Exchange | 374 | 9,601 | 240.00 | 2/18/22 | (761) |
PNC Financial Services Group, Inc. | Chicago Board Options Exchange | 225 | 4,635 | 240.00 | 2/18/22 | (3) |
Qualcomm, Inc. | Chicago Board Options Exchange | 449 | 7,892 | 200.00 | 2/18/22 | (63) |
Qualcomm, Inc. | Chicago Board Options Exchange | 449 | 7,892 | 210.00 | 2/18/22 | (28) |
State Street Corp. | Chicago Board Options Exchange | 671 | 6,341 | 110.00 | 2/18/22 | (5) |
United Parcel Service, Inc. Class B | Chicago Board Options Exchange | 671 | 13,568 | 230.00 | 3/18/22 | (96) |
Wells Fargo & Co. | Chicago Board Options Exchange | 4,017 | 21,611 | 60.00 | 3/18/22 | (167) |
TOTAL WRITTEN OPTIONS | $(2,272) |
Legend
(a) 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 $20,288,000 or 0.3% of net assets.
(b) Non-income producing
(c) 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 $134,856,000.
(d) Security or a portion of the security is on loan at period end.
(e) Investment is owned by a wholly-owned subsidiary (Subsidiary) that is treated as a corporation for U.S. tax purposes.
(f) 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 $4,683,000 or 0.1% of net assets.
(g) Level 3 security
(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) |
Utica Shale Drilling Program (non-operating revenue interest) | 10/5/16 - 09/1/17 | $18,052 |
Affiliated Central Funds
Fiscal year to date information regarding the Fund's investments in Fidelity Central Funds, including the ownership percentage, is presented below.
Fund (Amounts in thousands) | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Realized Gain/Loss | Change in Unrealized appreciation (depreciation) | Value, end of period | % ownership, end of period |
Fidelity Cash Central Fund 0.08% | $13,016 | $345,757 | $349,684 | $11 | $-- | $-- | $9,089 | 0.0% |
Fidelity Securities Lending Cash Central Fund 0.08% | 105,352 | 203,007 | 288,028 | 4,152 | -- | -- | 20,331 | 0.1% |
Total | $118,368 | $548,764 | $637,712 | $4,163 | $-- | $-- | $29,420 |
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, 2022, 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 | $486,623 | $424,853 | $61,770 | $-- |
Consumer Discretionary | 264,136 | 256,622 | 7,514 | -- |
Consumer Staples | 534,514 | 484,816 | 49,698 | -- |
Energy | 804,546 | 804,546 | -- | -- |
Financials | 1,517,691 | 1,512,995 | 4,696 | -- |
Health Care | 1,094,353 | 969,937 | 124,416 | -- |
Industrials | 1,334,479 | 1,231,026 | 103,453 | -- |
Information Technology | 1,660,650 | 1,565,565 | 95,085 | -- |
Materials | 180,430 | 161,791 | 18,639 | -- |
Real Estate | 91,971 | 91,971 | -- | -- |
Utilities | 81,689 | 81,689 | -- | -- |
Corporate Bonds | 7,949 | -- | 7,949 | -- |
Other | 4,683 | -- | -- | 4,683 |
Money Market Funds | 29,420 | 29,420 | -- | -- |
Total Investments in Securities: | $8,093,134 | $7,615,231 | $473,220 | $4,683 |
Derivative Instruments: | ||||
Liabilities | ||||
Written Options | $(2,272) | $(2,272) | $-- | $-- |
Total Liabilities | $(2,272) | $(2,272) | $-- | $-- |
Total Derivative Instruments: | $(2,272) | $(2,272) | $-- | $-- |
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, 2022. 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 | $(2,272) |
Total Equity Risk | 0 | (2,272) |
Total Value of Derivatives | $0 | $(2,272) |
(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 | 86.2% |
Canada | 3.2% |
Germany | 2.0% |
United Kingdom | 2.0% |
Netherlands | 1.7% |
France | 1.0% |
Others (Individually Less Than 1%) | 3.9% |
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, 2022 (Unaudited) | |
Assets | ||
Investment in securities, at value (including securities loaned of $20,447) — See accompanying schedule: Unaffiliated issuers (cost $5,149,567) | $8,063,714 | |
Fidelity Central Funds (cost $29,420) | 29,420 | |
Total Investment in Securities (cost $5,178,987) | $8,093,134 | |
Cash | 25 | |
Restricted cash | 339 | |
Receivable for investments sold | 4,368 | |
Receivable for fund shares sold | 16,134 | |
Dividends receivable | 6,679 | |
Interest receivable | 56 | |
Distributions receivable from Fidelity Central Funds | 4 | |
Prepaid expenses | 7 | |
Other receivables | 456 | |
Total assets | 8,121,202 | |
Liabilities | ||
Payable for investments purchased | $6,025 | |
Payable for fund shares redeemed | 3,672 | |
Accrued management fee | 2,900 | |
Written options, at value (premium received $2,919) | 2,272 | |
Other affiliated payables | 884 | |
Other payables and accrued expenses | 537 | |
Collateral on securities loaned | 20,331 | |
Total liabilities | 36,621 | |
Net Assets | $8,084,581 | |
Net Assets consist of: | ||
Paid in capital | $5,129,929 | |
Total accumulated earnings (loss) | 2,954,652 | |
Net Assets | $8,084,581 | |
Net Asset Value and Maximum Offering Price | ||
Growth and Income: | ||
Net Asset Value, offering price and redemption price per share ($7,722,966 ÷ 148,224 shares) | $52.10 | |
Class K: | ||
Net Asset Value, offering price and redemption price per share ($361,615 ÷ 6,948 shares) | $52.05 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Amounts in thousands | Six months ended January 31, 2022 (Unaudited) | |
Investment Income | ||
Dividends | $73,396 | |
Non-Cash dividends | 49,377 | |
Interest | 395 | |
Income from Fidelity Central Funds (including $4,152 from security lending) | 4,163 | |
Total income | 127,331 | |
Expenses | ||
Management fee | $17,013 | |
Transfer agent fees | 4,719 | |
Accounting fees | 603 | |
Custodian fees and expenses | 77 | |
Independent trustees' fees and expenses | 14 | |
Registration fees | 54 | |
Audit | 45 | |
Legal | 7 | |
Interest | 3 | |
Miscellaneous | 16 | |
Total expenses before reductions | 22,551 | |
Expense reductions | (121) | |
Total expenses after reductions | 22,430 | |
Net investment income (loss) | 104,901 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 145,995 | |
Foreign currency transactions | 13 | |
Written options | 3,581 | |
Total net realized gain (loss) | 149,589 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 198,153 | |
Assets and liabilities in foreign currencies | (64) | |
Written options | (1,247) | |
Total change in net unrealized appreciation (depreciation) | 196,842 | |
Net gain (loss) | 346,431 | |
Net increase (decrease) in net assets resulting from operations | $451,332 |
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, 2022 (Unaudited) | Year ended July 31, 2021 |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $104,901 | $129,001 |
Net realized gain (loss) | 149,589 | 282,937 |
Change in net unrealized appreciation (depreciation) | 196,842 | 2,126,751 |
Net increase (decrease) in net assets resulting from operations | 451,332 | 2,538,689 |
Distributions to shareholders | (424,407) | (256,518) |
Share transactions - net increase (decrease) | (11,488) | (684,045) |
Total increase (decrease) in net assets | 15,437 | 1,598,126 |
Net Assets | ||
Beginning of period | 8,069,144 | 6,471,018 |
End of period | $8,084,581 | $8,069,144 |
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, | |||||
2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $51.87 | $38.15 | $38.98 | $39.34 | $35.31 | $30.48 |
Income from Investment Operations | ||||||
Net investment income (loss)A,B | .67C | .78 | .83 | .87 | .65 | .61 |
Net realized and unrealized gain (loss) | 2.29 | 14.49 | (.37) | (.05)D | 4.12 | 4.68 |
Total from investment operations | 2.96 | 15.27 | .46 | .82 | 4.77 | 5.29 |
Distributions from net investment income | (.68) | (.79) | (.84) | (.77) | (.74) | (.46) |
Distributions from net realized gain | (2.05) | (.75) | (.46) | (.42) | – | – |
Total distributions | (2.73) | (1.55)E | (1.29)E | (1.18)E | (.74) | (.46) |
Net asset value, end of period | $52.10 | $51.87 | $38.15 | $38.98 | $39.34 | $35.31 |
Total ReturnF,G | 5.95% | 41.01% | 1.27% | 2.26%D | 13.66% | 17.48% |
Ratios to Average Net AssetsB,H,I | ||||||
Expenses before reductions | .57%J | .58% | .60% | .61% | .61% | .63% |
Expenses net of fee waivers, if any | .57%J | .58% | .60% | .61% | .61% | .63% |
Expenses net of all reductions | .57%J | .58% | .60% | .61% | .61% | .63% |
Net investment income (loss) | 1.99%C,J | 1.71% | 2.18% | 2.31% | 1.76% | 1.84% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $7,723 | $7,219 | $5,451 | $5,927 | $6,280 | $6,356 |
Portfolio turnover rateK | 14%J | 16% | 32% | 36% | 38% | 37% |
A Calculated based on average shares outstanding during the period.
B Net investment income (loss) is affected by the timing of the declaration of dividends by any underlying mutual funds or exchange-traded funds (ETFs). Net investment income (loss) of any such underlying funds is not included in the Fund's net investment income (loss) ratio.
C Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.32 per share. Such dividends are not annualized in the ratio of net investment income (loss) to average net assets. Excluding such non-recurring dividend(s) the ratio of net investment income (loss) to average net assets would have been 1.38%.
D 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%
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 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 Growth & Income Portfolio Class K
Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $51.82 | $38.11 | $38.94 | $39.31 | $35.28 | $30.46 |
Income from Investment Operations | ||||||
Net investment income (loss)A,B | .70C | .81 | .86 | .91 | .69 | .65 |
Net realized and unrealized gain (loss) | 2.28 | 14.48 | (.35) | (.06)D | 4.12 | 4.67 |
Total from investment operations | 2.98 | 15.29 | .51 | .85 | 4.81 | 5.32 |
Distributions from net investment income | (.70) | (.83) | (.88) | (.81) | (.78) | (.50) |
Distributions from net realized gain | (2.05) | (.75) | (.46) | (.42) | – | – |
Total distributions | (2.75) | (1.58) | (1.34) | (1.22)E | (.78) | (.50) |
Net asset value, end of period | $52.05 | $51.82 | $38.11 | $38.94 | $39.31 | $35.28 |
Total ReturnF,G | 6.00% | 41.15% | 1.39% | 2.35%D | 13.79% | 17.60% |
Ratios to Average Net AssetsB,H,I | ||||||
Expenses before reductions | .48%J | .49% | .50% | .51% | .51% | .52% |
Expenses net of fee waivers, if any | .48%J | .49% | .50% | .51% | .51% | .52% |
Expenses net of all reductions | .48%J | .49% | .50% | .50% | .50% | .52% |
Net investment income (loss) | 2.08%C,J | 1.80% | 2.28% | 2.41% | 1.86% | 1.95% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $362 | $850 | $1,020 | $497 | $591 | $890 |
Portfolio turnover rateK | 14%J | 16% | 32% | 36% | 38% | 37% |
A Calculated based on average shares outstanding during the period.
B Net investment income (loss) is affected by the timing of the declaration of dividends by any underlying mutual funds or exchange-traded funds (ETFs). Net investment income (loss) of any such underlying funds is not included in the Fund's net investment income (loss) ratio.
C Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.32 per share. Such dividends are not annualized in the ratio of net investment income (loss) to average net assets. Excluding such non-recurring dividend(s) the ratio of net investment income (loss) to average net assets would have been 1.46%.
D 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%
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 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, 2022
(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.
Funds may invest 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 Schedule of Investments lists any Fidelity Central Funds held as an investment as of period end, but does not include the underlying holdings of each Fidelity Central Fund. An investing fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
Based on its investment objective, each Fidelity Central Fund may invest or participate in various investment vehicles or strategies that are similar to those of the investing fund. These strategies are consistent with the investment objectives of the investing fund and may involve certain economic risks which may cause a decline in value of each of the Fidelity Central Funds and thus a decline in the value of the investing fund.
Fidelity Central Fund | Investment Manager | Investment Objective | Investment Practices | Expense Ratio(a) |
Fidelity Money Market Central Funds | Fidelity Management & Research Company LLC (FMR) | Each fund seeks to obtain a high level of current income consistent with the preservation of capital and liquidity. | Short-term Investments | Less than .005% |
(a) Expenses expressed as a percentage of average net assets and are as of each underlying Central Fund's most recent annual or semi-annual shareholder report.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds which contain the significant accounting policies (including investment valuation policies) of those funds, and are not covered by the Report of Independent Registered Public Accounting Firm, are available on the Securities and Exchange Commission 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 Fund's Schedule of Investments lists any underlying mutual funds or exchange-traded funds (ETFs) but does not include the underlying holdings of these funds. 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 – Unadjusted 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, 2022 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. Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of a fund include an amount in addition to trade execution, which may be rebated back to a fund. Any such rebates are included in net realized gain (loss) on investments in the Statement of Operations. 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. Large, non-recurring dividends recognized by the Fund are presented separately on the Statement of Operations in "Non-cash dividends" and the impact of these dividends is presented in the Financial Highlights. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain. Funds may file withholding tax reclaims in certain jurisdictions to recover a portion of amounts previously withheld. Any withholding tax reclaims income is included in the Statement of Operations in dividends. Any receivables for withholding tax reclaims are included in the Statement of Assets and Liabilities in dividends receivable.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of a 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 a fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred, as applicable. Certain expense reductions may also differ by class, if applicable. 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. Expenses included in the accompanying financial statements reflect the expenses of that fund and do not include any expenses associated with any underlying mutual funds or exchange-traded funds. Although not included in a fund's expenses, a fund indirectly bears its proportionate share of these expenses through the net asset value of each underlying mutual fund or exchange-traded fund. 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 | $456 |
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, certain foreign taxes, partnerships, passive foreign investment companies (PFIC), deferred Trustee compensation, 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 | $3,093,137 |
Gross unrealized depreciation | (192,873) |
Net unrealized appreciation (depreciation) | $2,900,264 |
Tax cost | $5,193,517 |
Restricted Securities (including Private Placements). Funds 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 held at period end is included at the end of the Schedule of Investments, if applicable.
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 | 5,022 | .06 |
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 and in-kind transactions, as applicable, are noted in the table below.
Purchases ($) | Sales ($) | |
Fidelity Growth & Income Portfolio | 560,245 | 895,092 |
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 .22% 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 .42% 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 | $4,594 | .12 |
Class K | 125 | .04 |
$4,719 |
(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 | $10 |
Interfund Lending Program. Pursuant to an Exemptive Order issued by the Securities and Exchange Commission (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 Growth & Income Portfolio | Borrower | $47,135 | .32% | $3 |
Interfund Trades. Funds may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Any interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note. Interfund trades during the period are noted in the table below.
Purchases ($) | Sales ($) | Realized Gain (Loss) ($) | |
Fidelity Growth & Income Portfolio | 49,337 | 60,130 | 12,691 |
Other. During the period, the investment adviser reimbursed the Fund for certain losses as follows:
Amount ($) | |
Fidelity Growth & Income Portfolio | 558 |
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. During the period, there were no borrowings on this line of credit.
Amount | |
Fidelity Growth & Income Portfolio | $6 |
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 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 | $187 | $– | $– |
9. Expense Reductions.
During the period the investment adviser or an affiliate reimbursed and/or waived a portion of fund-level operating expenses in the amount of $121.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended January 31, 2022 | Year ended July 31, 2021 | |
Fidelity Growth & Income Portfolio | ||
Distributions to shareholders | ||
Growth and Income | $385,353 | $217,556 |
Class K | 39,054 | 38,962 |
Total | $424,407 | $256,518 |
11. Share Transactions.
Share transactions for each class were as follows and may contain in-kind transactions, automatic conversions between classes or exchanges between affiliated funds:
Shares | Shares | Dollars | Dollars | |
Six months ended January 31, 2022 | Year ended July 31, 2021 | Six months ended January 31, 2022 | Year ended July 31, 2021 | |
Fidelity Growth & Income Portfolio | ||||
Growth and Income | ||||
Shares sold | 8,901 | 6,082 | $460,970 | $285,882 |
Reinvestment of distributions | 7,179 | 4,876 | 363,277 | 205,315 |
Shares redeemed | (7,039) | (14,649) | (361,421) | (650,432) |
Net increase (decrease) | 9,041 | (3,691) | $462,826 | $(159,235) |
Class K | ||||
Shares sold | 858 | 4,151 | $44,707 | $182,762 |
Reinvestment of distributions | 772 | 937 | 39,054 | 38,962 |
Shares redeemed | (11,088) | (15,439) | (558,075) | (746,534) |
Net increase (decrease) | (9,458) | (10,351) | $(474,314) | $(524,810) |
12. Other.
A 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, a fund may also enter into contracts that provide general indemnifications. A fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against a 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, 2021 to January 31, 2022).
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, 2021 | Ending Account Value January 31, 2022 | Expenses Paid During Period-B August 1, 2021 to January 31, 2022 | |
Fidelity Growth & Income Portfolio | ||||
Growth and Income | .57% | |||
Actual | $1,000.00 | $1,059.50 | $2.96 | |
Hypothetical-C | $1,000.00 | $1,022.33 | $2.91 | |
Class K | .48% | |||
Actual | $1,000.00 | $1,060.00 | $2.49 | |
Hypothetical-C | $1,000.00 | $1,022.79 | $2.45 |
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
GAI-SANN-0422
1.700483.125
Fidelity® Leveraged Company Stock Fund
Semi-Annual Report
January 31, 2022
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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. © 2022 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 COVID-19 emerged as a public health emergency that had a major influence on financial markets, primarily based on its impact on the global economy and corporate earnings. On March 11, 2020, the World Health Organization declared the COVID-19 outbreak a pandemic, citing sustained risk of further global spread. The pandemic prompted a number of measures to limit the spread of COVID-19, 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. To help stem the turmoil, the U.S. government took unprecedented action – in concert with the U.S. Federal Reserve and central banks around the world – to help support consumers, businesses, and the broader economy, and to limit disruption to the financial system.
In general, the overall impact of the pandemic lessened in 2021, amid a resilient economy and widespread distribution of three COVID-19 vaccines granted emergency use authorization from the U.S. Food and Drug Administration (FDA) early in the year. Still, the situation remains dynamic, and the extent and duration of its influence on financial markets and the economy is highly uncertain, due in part to a recent spike in cases based on highly contagious variants of the coronavirus.
Extreme events such as the COVID-19 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 continue to take extra steps to be responsive to customer needs. We encourage you to visit us online, where we offer ongoing updates, commentary, and analysis on the markets and our funds.
Investment Summary (Unaudited)
Top Ten Stocks as of January 31, 2022
% of fund's net assets | |
Alphabet, Inc. Class A | 4.0 |
Caesars Entertainment, Inc. | 4.0 |
IQVIA Holdings, Inc. | 3.5 |
JBS SA | 3.1 |
Adobe, Inc. | 3.0 |
Lam Research Corp. | 2.9 |
Meta Platforms, Inc. Class A | 2.9 |
Microsoft Corp. | 2.9 |
Boyd Gaming Corp. | 2.8 |
Thermo Fisher Scientific, Inc. | 2.7 |
31.8 |
Top Five Market Sectors as of January 31, 2022
% of fund's net assets | |
Information Technology | 27.2 |
Consumer Discretionary | 19.6 |
Health Care | 12.5 |
Communication Services | 10.6 |
Materials | 7.1 |
Asset Allocation (% of fund's net assets)
As of January 31, 2022* | ||
Stocks | 98.2% | |
Short-Term Investments and Net Other Assets (Liabilities) | 1.8% |
* Foreign investments - 6.0%
Schedule of Investments January 31, 2022 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.2% | |||
Shares | Value (000s) | ||
COMMUNICATION SERVICES - 10.6% | |||
Interactive Media & Services - 7.2% | |||
Alphabet, Inc. Class A (a) | 38,800 | $104,993 | |
Cars.com, Inc. (a) | 497,300 | 7,748 | |
Meta Platforms, Inc. Class A (a) | 240,300 | 75,276 | |
188,017 | |||
Media - 2.6% | |||
Nexstar Broadcasting Group, Inc. Class A | 409,098 | 67,657 | |
Wireless Telecommunication Services - 0.8% | |||
T-Mobile U.S., Inc. (a) | 182,500 | 19,741 | |
TOTAL COMMUNICATION SERVICES | 275,415 | ||
CONSUMER DISCRETIONARY - 19.6% | |||
Automobiles - 3.2% | |||
Ford Motor Co. | 787,900 | 15,994 | |
Tesla, Inc. (a) | 73,100 | 68,474 | |
84,468 | |||
Hotels, Restaurants & Leisure - 7.0% | |||
Airbnb, Inc. Class A (a) | 7,700 | 1,186 | |
Boyd Gaming Corp. | 1,200,900 | 71,406 | |
Caesars Entertainment, Inc. (a) | 1,369,780 | 104,295 | |
Studio City International Holdings Ltd. ADR (a) | 695,700 | 3,931 | |
180,818 | |||
Household Durables - 4.1% | |||
Lennar Corp. Class A | 137,000 | 13,167 | |
PulteGroup, Inc. | 380,600 | 20,054 | |
Tempur Sealy International, Inc. | 1,526,200 | 60,758 | |
Whirlpool Corp. | 55,774 | 11,723 | |
105,702 | |||
Internet & Direct Marketing Retail - 0.9% | |||
Amazon.com, Inc. (a) | 3,400 | 10,171 | |
eBay, Inc. | 209,000 | 12,555 | |
22,726 | |||
Specialty Retail - 3.4% | |||
Bath & Body Works, Inc. | 192,600 | 10,799 | |
Lowe's Companies, Inc. | 192,100 | 45,595 | |
RH (a) | 22,900 | 9,225 | |
Victoria's Secret & Co. (a) | 64,200 | 3,584 | |
Williams-Sonoma, Inc. (b) | 114,700 | 18,414 | |
87,617 | |||
Textiles, Apparel & Luxury Goods - 1.0% | |||
PVH Corp. | 134,900 | 12,817 | |
Tapestry, Inc. | 341,500 | 12,960 | |
25,777 | |||
TOTAL CONSUMER DISCRETIONARY | 507,108 | ||
CONSUMER STAPLES - 5.2% | |||
Food & Staples Retailing - 0.7% | |||
BJ's Wholesale Club Holdings, Inc. (a) | 285,000 | 17,519 | |
Food Products - 4.5% | |||
Darling Ingredients, Inc. (a) | 586,083 | 37,375 | |
JBS SA | 12,172,900 | 80,440 | |
117,815 | |||
TOTAL CONSUMER STAPLES | 135,334 | ||
ENERGY - 3.7% | |||
Oil, Gas & Consumable Fuels - 3.7% | |||
Antero Resources Corp. (a) | 829,200 | 16,194 | |
Cheniere Energy, Inc. | 313,000 | 35,025 | |
Chesapeake Energy Corp. (b) | 336,500 | 22,939 | |
Denbury, Inc. (a) | 285,900 | 21,483 | |
95,641 | |||
FINANCIALS - 4.8% | |||
Banks - 2.3% | |||
Bank of America Corp. | 652,399 | 30,102 | |
JPMorgan Chase & Co. | 199,700 | 29,675 | |
59,777 | |||
Consumer Finance - 1.5% | |||
OneMain Holdings, Inc. | 760,200 | 39,272 | |
Insurance - 1.0% | |||
Arthur J. Gallagher & Co. | 156,900 | 24,781 | |
TOTAL FINANCIALS | 123,830 | ||
HEALTH CARE - 12.5% | |||
Biotechnology - 0.6% | |||
Regeneron Pharmaceuticals, Inc. (a) | 25,000 | 15,215 | |
Health Care Providers & Services - 4.5% | |||
HCA Holdings, Inc. | 114,900 | 27,582 | |
Humana, Inc. | 90,400 | 35,482 | |
UnitedHealth Group, Inc. | 110,900 | 52,408 | |
115,472 | |||
Life Sciences Tools & Services - 6.9% | |||
Charles River Laboratories International, Inc. (a) | 58,900 | 19,423 | |
IQVIA Holdings, Inc. (a) | 370,100 | 90,637 | |
Thermo Fisher Scientific, Inc. | 119,900 | 69,698 | |
179,758 | |||
Pharmaceuticals - 0.5% | |||
Bristol-Myers Squibb Co. | 208,000 | 13,497 | |
TOTAL HEALTH CARE | 323,942 | ||
INDUSTRIALS - 4.7% | |||
Air Freight & Logistics - 0.3% | |||
GXO Logistics, Inc. (a) | 111,600 | 9,063 | |
Airlines - 0.3% | |||
Air Canada (a)(b) | 441,800 | 7,945 | |
Building Products - 1.6% | |||
Builders FirstSource, Inc. (a) | 416,300 | 28,304 | |
Carrier Global Corp. | 258,900 | 12,344 | |
40,648 | |||
Electrical Equipment - 0.0% | |||
Array Technologies, Inc. (a) | 45,100 | 475 | |
Machinery - 0.3% | |||
Allison Transmission Holdings, Inc. | 223,600 | 8,495 | |
Marine - 0.0% | |||
Genco Shipping & Trading Ltd. | 831 | 13 | |
Professional Services - 0.7% | |||
ASGN, Inc. (a) | 162,500 | 18,666 | |
Road & Rail - 0.3% | |||
XPO Logistics, Inc. (a) | 111,600 | 7,385 | |
Trading Companies & Distributors - 1.2% | |||
United Rentals, Inc. (a) | 93,200 | 29,835 | |
TOTAL INDUSTRIALS | 122,525 | ||
INFORMATION TECHNOLOGY - 27.2% | |||
Electronic Equipment & Components - 3.1% | |||
CDW Corp. | 138,400 | 26,165 | |
Zebra Technologies Corp. Class A (a) | 107,800 | 54,883 | |
81,048 | |||
IT Services - 6.1% | |||
EPAM Systems, Inc. (a) | 77,300 | 36,806 | |
Global Payments, Inc. | 357,200 | 53,537 | |
PayPal Holdings, Inc. (a) | 261,000 | 44,876 | |
Visa, Inc. Class A | 96,300 | 21,780 | |
156,999 | |||
Semiconductors & Semiconductor Equipment - 9.2% | |||
Lam Research Corp. | 127,700 | 75,333 | |
Marvell Technology, Inc. | 502,700 | 35,893 | |
Microchip Technology, Inc. | 509,000 | 39,437 | |
NVIDIA Corp. | 100,100 | 24,510 | |
NXP Semiconductors NV | 96,000 | 19,722 | |
onsemi (a) | 723,500 | 42,687 | |
237,582 | |||
Software - 8.8% | |||
Adobe, Inc. (a) | 144,400 | 77,153 | |
Microsoft Corp. | 240,900 | 74,915 | |
Palo Alto Networks, Inc. (a) | 81,400 | 42,116 | |
SS&C Technologies Holdings, Inc. | 438,297 | 35,007 | |
229,191 | |||
TOTAL INFORMATION TECHNOLOGY | 704,820 | ||
MATERIALS - 7.1% | |||
Chemicals - 3.3% | |||
CF Industries Holdings, Inc. | 574,500 | 39,566 | |
The Chemours Co. LLC | 1,387,728 | 45,393 | |
84,959 | |||
Containers & Packaging - 2.2% | |||
Berry Global Group, Inc. (a) | 407,300 | 27,460 | |
WestRock Co. | 659,700 | 30,452 | |
57,912 | |||
Metals & Mining - 1.6% | |||
First Quantum Minerals Ltd. | 1,634,200 | 40,252 | |
TOTAL MATERIALS | 183,123 | ||
UTILITIES - 2.8% | |||
Electric Utilities - 2.8% | |||
NRG Energy, Inc. | 805,800 | 32,176 | |
PG&E Corp. (a) | 3,118,902 | 39,891 | |
72,067 | |||
TOTAL COMMON STOCKS | |||
(Cost $1,374,585) | 2,543,805 | ||
Money Market Funds - 3.4% | |||
Fidelity Cash Central Fund 0.08% (c) | 51,961,503 | 51,972 | |
Fidelity Securities Lending Cash Central Fund 0.08% (c)(d) | 35,690,381 | 35,694 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $87,663) | 87,666 | ||
TOTAL INVESTMENT IN SECURITIES - 101.6% | |||
(Cost $1,462,248) | 2,631,471 | ||
NET OTHER ASSETS (LIABILITIES) - (1.6)% | (42,362) | ||
NET ASSETS - 100% | $2,589,109 |
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
Fiscal year to date information regarding the Fund's investments in Fidelity Central Funds, including the ownership percentage, is presented below.
Fund (Amounts in thousands) | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Realized Gain/Loss | Change in Unrealized appreciation (depreciation) | Value, end of period | % ownership, end of period |
Fidelity Cash Central Fund 0.08% | $81,374 | $311,814 | $341,216 | $28 | $-- | $-- | $51,972 | 0.1% |
Fidelity Securities Lending Cash Central Fund 0.08% | 12,633 | 198,950 | 175,889 | 8 | -- | -- | 35,694 | 0.1% |
Total | $94,007 | $510,764 | $517,105 | $36 | $-- | $-- | $87,666 |
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, 2022, 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 | $275,415 | $275,415 | $-- | $-- |
Consumer Discretionary | 507,108 | 507,108 | -- | -- |
Consumer Staples | 135,334 | 135,334 | -- | -- |
Energy | 95,641 | 95,641 | -- | -- |
Financials | 123,830 | 123,830 | -- | -- |
Health Care | 323,942 | 323,942 | -- | -- |
Industrials | 122,525 | 122,525 | -- | -- |
Information Technology | 704,820 | 704,820 | -- | -- |
Materials | 183,123 | 183,123 | -- | -- |
Utilities | 72,067 | 72,067 | -- | -- |
Money Market Funds | 87,666 | 87,666 | -- | -- |
Total Investments in Securities: | $2,631,471 | $2,631,471 | $-- | $-- |
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, 2022 (Unaudited) | |
Assets | ||
Investment in securities, at value (including securities loaned of $34,988) — See accompanying schedule: Unaffiliated issuers (cost $1,374,585) | $2,543,805 | |
Fidelity Central Funds (cost $87,663) | 87,666 | |
Total Investment in Securities (cost $1,462,248) | $2,631,471 | |
Receivable for investments sold | 22,659 | |
Receivable for fund shares sold | 638 | |
Dividends receivable | 900 | |
Distributions receivable from Fidelity Central Funds | 8 | |
Prepaid expenses | 2 | |
Total assets | 2,655,678 | |
Liabilities | ||
Payable for investments purchased | $21,627 | |
Payable for fund shares redeemed | 7,561 | |
Accrued management fee | 1,312 | |
Other affiliated payables | 338 | |
Other payables and accrued expenses | 37 | |
Collateral on securities loaned | 35,694 | |
Total liabilities | 66,569 | |
Net Assets | $2,589,109 | |
Net Assets consist of: | ||
Paid in capital | $1,301,108 | |
Total accumulated earnings (loss) | 1,288,001 | |
Net Assets | $2,589,109 | |
Net Asset Value and Maximum Offering Price | ||
Leveraged Company Stock: | ||
Net Asset Value, offering price and redemption price per share ($2,267,052 ÷ 51,666 shares) | $43.88 | |
Class K: | ||
Net Asset Value, offering price and redemption price per share ($322,057 ÷ 7,309 shares) | $44.06 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Amounts in thousands | Six months ended January 31, 2022 (Unaudited) | |
Investment Income | ||
Dividends | $15,469 | |
Income from Fidelity Central Funds (including $8 from security lending) | 36 | |
Total income | 15,505 | |
Expenses | ||
Management fee | $8,331 | |
Transfer agent fees | 1,655 | |
Accounting fees | 428 | |
Custodian fees and expenses | 32 | |
Independent trustees' fees and expenses | 5 | |
Registration fees | 38 | |
Audit | 32 | |
Legal | 3 | |
Miscellaneous | 7 | |
Total expenses before reductions | 10,531 | |
Expense reductions | (44) | |
Total expenses after reductions | 10,487 | |
Net investment income (loss) | 5,018 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 213,008 | |
Foreign currency transactions | (62) | |
Total net realized gain (loss) | 212,946 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | (250,264) | |
Assets and liabilities in foreign currencies | (2) | |
Total change in net unrealized appreciation (depreciation) | (250,266) | |
Net gain (loss) | (37,320) | |
Net increase (decrease) in net assets resulting from operations | $(32,302) |
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, 2022 (Unaudited) | Year ended July 31, 2021 |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $5,018 | $1,874 |
Net realized gain (loss) | 212,946 | 206,382 |
Change in net unrealized appreciation (depreciation) | (250,266) | 856,332 |
Net increase (decrease) in net assets resulting from operations | (32,302) | 1,064,588 |
Distributions to shareholders | (239,412) | (3,020) |
Share transactions - net increase (decrease) | (34,920) | (81,410) |
Total increase (decrease) in net assets | (306,634) | 980,158 |
Net Assets | ||
Beginning of period | 2,895,743 | 1,915,585 |
End of period | $2,589,109 | $2,895,743 |
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, | |||||
2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $48.37 | $30.88 | $29.94 | $34.31 | $37.25 | $40.68 |
Income from Investment Operations | ||||||
Net investment income (loss)A,B | .08 | .03C | .08D | (.02) | .02 | .19 |
Net realized and unrealized gain (loss) | (.57) | 17.50 | .89 | .42 | 3.42E | 5.53 |
Total from investment operations | (.49) | 17.53 | .97 | .40 | 3.44 | 5.72 |
Distributions from net investment income | (.12) | (.04) | (.03) | – | (.07) | (.37) |
Distributions from net realized gain | (3.89) | – | – | (4.77) | (6.32) | (8.78) |
Total distributions | (4.00)F | (.04) | (.03) | (4.77) | (6.38)F | (9.15) |
Redemption fees added to paid in capitalA | – | – | – | – | – | –G |
Net asset value, end of period | $43.88 | $48.37 | $30.88 | $29.94 | $34.31 | $37.25 |
Total ReturnH,I | (1.34)% | 56.84% | 3.24% | 1.93% | 10.91%E | 17.45% |
Ratios to Average Net AssetsB,J,K | ||||||
Expenses before reductions | .74%L | .75% | .78% | .78% | .78% | .80% |
Expenses net of fee waivers, if any | .73%L | .75% | .78% | .78% | .78% | .79% |
Expenses net of all reductions | .73%L | .75% | .77% | .78% | .77% | .78% |
Net investment income (loss) | .34%L | .06%C | .27%D | (.06)% | .07% | .51% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $2,267 | $2,534 | $1,631 | $1,945 | $2,372 | $2,644 |
Portfolio turnover rateM | 22%L | 15% | 31% | 53% | 67% | 100% |
A Calculated based on average shares outstanding during the period.
B Net investment income (loss) is affected by the timing of the declaration of dividends by any underlying mutual funds or exchange-traded funds (ETFs). Net investment income (loss) of any such underlying funds is not included in the Fund's net investment income (loss) ratio.
C Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.05 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been (.05) %.
D 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%.
E 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%.
F Total distributions per share do not sum due to rounding.
G Amount represents less than $.005 per share.
H Total returns for periods of less than one year are not annualized.
I Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
J Fees and expenses of any underlying 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 Leveraged Company Stock Fund Class K
Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $48.58 | $31.01 | $30.04 | $34.40 | $37.34 | $40.76 |
Income from Investment Operations | ||||||
Net investment income (loss)A,B | .10 | .06C | .11D | .01 | .06 | .23 |
Net realized and unrealized gain (loss) | (.58) | 17.59 | .91 | .42 | 3.42E | 5.55 |
Total from investment operations | (.48) | 17.65 | 1.02 | .43 | 3.48 | 5.78 |
Distributions from net investment income | (.16) | (.08) | (.05) | – | (.11) | (.42) |
Distributions from net realized gain | (3.89) | – | – | (4.79) | (6.32) | (8.78) |
Total distributions | (4.04)F | (.08) | (.05) | (4.79) | (6.42)F | (9.20) |
Redemption fees added to paid in capitalA | – | – | – | – | – | –G |
Net asset value, end of period | $44.06 | $48.58 | $31.01 | $30.04 | $34.40 | $37.34 |
Total ReturnH,I | (1.32)% | 57.00% | 3.38% | 2.03% | 11.01%E | 17.60% |
Ratios to Average Net AssetsB,J,K | ||||||
Expenses before reductions | .65%L | .66% | .67% | .67% | .67% | .68% |
Expenses net of fee waivers, if any | .65%L | .66% | .67% | .67% | .67% | .68% |
Expenses net of all reductions | .65%L | .66% | .66% | .67% | .66% | .67% |
Net investment income (loss) | .42%L | .15%C | .38%D | .05% | .18% | .63% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $322 | $362 | $285 | $347 | $431 | $489 |
Portfolio turnover rateM | 22%L | 15% | 31% | 53% | 67% | 100% |
A Calculated based on average shares outstanding during the period.
B Net investment income (loss) is affected by the timing of the declaration of dividends by any underlying mutual funds or exchange-traded funds (ETFs). Net investment income (loss) of any such underlying funds is not included in the Fund's net investment income (loss) ratio.
C Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.05 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been .05%.
D 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%.
E 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%.
F Total distributions per share do not sum due to rounding.
G Amount represents less than $.005 per share.
H Total returns for periods of less than one year are not annualized.
I Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
J Fees and expenses of any underlying 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.
Notes to Financial Statements (Unaudited)
For the period ended January 31, 2022
(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.
Funds may invest 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 Schedule of Investments lists any Fidelity Central Funds held as an investment as of period end, but does not include the underlying holdings of each Fidelity Central Fund. An investing fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
Based on its investment objective, each Fidelity Central Fund may invest or participate in various investment vehicles or strategies that are similar to those of the investing fund. These strategies are consistent with the investment objectives of the investing fund and may involve certain economic risks which may cause a decline in value of each of the Fidelity Central Funds and thus a decline in the value of the investing fund.
Fidelity Central Fund | Investment Manager | Investment Objective | Investment Practices | Expense Ratio(a) |
Fidelity Money Market Central Funds | Fidelity Management & Research Company LLC (FMR) | Each fund seeks to obtain a high level of current income consistent with the preservation of capital and liquidity. | Short-term Investments | Less than .005% |
(a) Expenses expressed as a percentage of average net assets and are as of each underlying Central Fund's most recent annual or semi-annual shareholder report.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds which contain the significant accounting policies (including investment valuation policies) of those funds, and are not covered by the Report of Independent Registered Public Accounting Firm, are available on the Securities and Exchange Commission 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 Fund's Schedule of Investments lists any underlying mutual funds or exchange-traded funds (ETFs) but does not include the underlying holdings of these funds. 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 – Unadjusted 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, 2022 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. Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of a fund include an amount in addition to trade execution, which may be rebated back to a fund. Any such rebates are included in net realized gain (loss) on investments in the Statement of Operations. 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. Funds may file withholding tax reclaims in certain jurisdictions to recover a portion of amounts previously withheld. Any withholding tax reclaims income is included in the Statement of Operations in dividends. Any receivables for withholding tax reclaims are included in the Statement of Assets and Liabilities in dividends receivable.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of a 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 a fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred, as applicable. Certain expense reductions may also differ by class, if applicable. 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. Expenses included in the accompanying financial statements reflect the expenses of that fund and do not include any expenses associated with any underlying mutual funds or exchange-traded funds. Although not included in a fund's expenses, a fund indirectly bears its proportionate share of these expenses through the net asset value of each underlying mutual fund or exchange-traded fund. 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 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 | $1,206,100 |
Gross unrealized depreciation | (37,373) |
Net unrealized appreciation (depreciation) | $1,168,727 |
Tax cost | $1,462,744 |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and in-kind transactions, as applicable, are noted in the table below.
Purchases ($) | Sales ($) | |
Fidelity Leveraged Company Stock Fund | 306,265 | 541,057 |
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 .22% 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 .57% 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 | $1,584 | .12 |
Class K | 71 | .04 |
$1,655 |
(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 | $6 |
Interfund Trades. Funds may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Any interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note. Interfund trades during the period are noted in the table below.
Purchases ($) | Sales ($) | Realized Gain (Loss) ($) | |
Fidelity Leveraged Company Stock Fund | 30,639 | 43,181 | 27,055 |
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. During the period, there were no borrowings on this line of credit.
Amount | |
Fidelity Leveraged Company Stock Fund | $2 |
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 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 | $1 | $– | $– |
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 and the amount represents less than five hundred dollars.
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 $44.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended January 31, 2022 | Year ended July 31, 2021 | |
Fidelity Leveraged Company Stock Fund | ||
Distributions to shareholders | ||
Leveraged Company Stock | $209,842 | $2,357 |
Class K | 29,570 | 663 |
Total | $239,412 | $3,020 |
10. Share Transactions.
Share transactions for each class were as follows and may contain in-kind transactions, automatic conversions between classes or exchanges between affiliated funds:
Shares | Shares | Dollars | Dollars | |
Six months ended January 31, 2022 | Year ended July 31, 2021 | Six months ended January 31, 2022 | Year ended July 31, 2021 | |
Fidelity Leveraged Company Stock Fund | ||||
Leveraged Company Stock | ||||
Shares sold | 1,318 | 7,227 | $61,706 | $292,008 |
Reinvestment of distributions | 4,268 | 65 | 199,178 | 2,241 |
Shares redeemed | (6,301) | (7,729) | (288,462) | (312,433) |
Net increase (decrease) | (715) | (437) | $(27,578) | $(18,184) |
Class K | ||||
Shares sold | 344 | 1,225 | $16,434 | $52,765 |
Reinvestment of distributions | 631 | 19 | 29,570 | 663 |
Shares redeemed | (1,118) | (2,968) | (53,346) | (116,654) |
Net increase (decrease) | (143) | (1,724) | $(7,342) | $(63,226) |
11. Other.
A 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, a fund may also enter into contracts that provide general indemnifications. A fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against a 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, 2021 to January 31, 2022).
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, 2021 | Ending Account Value January 31, 2022 | Expenses Paid During Period-B August 1, 2021 to January 31, 2022 | |
Fidelity Leveraged Company Stock Fund | ||||
Leveraged Company Stock | .73% | |||
Actual | $1,000.00 | $986.60 | $3.66 | |
Hypothetical-C | $1,000.00 | $1,021.53 | $3.72 | |
Class K | .65% | |||
Actual | $1,000.00 | $986.80 | $3.26 | |
Hypothetical-C | $1,000.00 | $1,021.93 | $3.31 |
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
LSF-SANN-0422
1.753758.122
Fidelity® Dividend Growth Fund
Semi-Annual Report
January 31, 2022
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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. © 2022 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 COVID-19 emerged as a public health emergency that had a major influence on financial markets, primarily based on its impact on the global economy and corporate earnings. On March 11, 2020, the World Health Organization declared the COVID-19 outbreak a pandemic, citing sustained risk of further global spread. The pandemic prompted a number of measures to limit the spread of COVID-19, 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. To help stem the turmoil, the U.S. government took unprecedented action – in concert with the U.S. Federal Reserve and central banks around the world – to help support consumers, businesses, and the broader economy, and to limit disruption to the financial system.
In general, the overall impact of the pandemic lessened in 2021, amid a resilient economy and widespread distribution of three COVID-19 vaccines granted emergency use authorization from the U.S. Food and Drug Administration (FDA) early in the year. Still, the situation remains dynamic, and the extent and duration of its influence on financial markets and the economy is highly uncertain, due in part to a recent spike in cases based on highly contagious variants of the coronavirus.
Extreme events such as the COVID-19 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 continue to take extra steps to be responsive to customer needs. We encourage you to visit us online, where we offer ongoing updates, commentary, and analysis on the markets and our funds.
Investment Summary (Unaudited)
Top Ten Stocks as of January 31, 2022
% of fund's net assets | |
Microsoft Corp. | 8.0 |
Apple, Inc. | 3.3 |
Visa, Inc. Class A | 2.1 |
UnitedHealth Group, Inc. | 1.8 |
General Electric Co. | 1.8 |
Bristol-Myers Squibb Co. | 1.5 |
Dollar General Corp. | 1.5 |
Wells Fargo & Co. | 1.4 |
Intercontinental Exchange, Inc. | 1.4 |
Verizon Communications, Inc. | 1.3 |
24.1 |
Top Five Market Sectors as of January 31, 2022
% of fund's net assets | |
Information Technology | 26.5 |
Health Care | 12.3 |
Industrials | 11.3 |
Consumer Discretionary | 10.7 |
Communication Services | 8.1 |
Asset Allocation (% of fund's net assets)
As of January 31, 2022* | ||
Stocks | 98.9% | |
Short-Term Investments and Net Other Assets (Liabilities) | 1.1% |
* Foreign investments - 17.6%
Schedule of Investments January 31, 2022 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.9% | |||
Shares | Value (000s) | ||
COMMUNICATION SERVICES - 8.1% | |||
Diversified Telecommunication Services - 2.5% | |||
Cellnex Telecom SA (a) | 969,500 | $43,963 | |
Deutsche Telekom AG | 1,620,300 | 30,590 | |
Verizon Communications, Inc. | 1,684,600 | 89,671 | |
164,224 | |||
Entertainment - 2.1% | |||
Activision Blizzard, Inc. | 692,600 | 54,722 | |
Electronic Arts, Inc. | 291,000 | 38,604 | |
The Walt Disney Co. (b) | 325,700 | 46,565 | |
139,891 | |||
Interactive Media & Services - 2.3% | |||
Alphabet, Inc. Class A (b) | 28,300 | 76,582 | |
Meta Platforms, Inc. Class A (b) | 234,800 | 73,553 | |
150,135 | |||
Media - 1.2% | |||
Comcast Corp. Class A | 1,655,892 | 82,778 | |
TOTAL COMMUNICATION SERVICES | 537,028 | ||
CONSUMER DISCRETIONARY - 10.7% | |||
Automobiles - 0.3% | |||
General Motors Co. (b) | 416,900 | 21,983 | |
Hotels, Restaurants & Leisure - 3.0% | |||
Aristocrat Leisure Ltd. | 155,317 | 4,502 | |
Churchill Downs, Inc. | 263,300 | 55,372 | |
Domino's Pizza, Inc. | 64,100 | 29,143 | |
Hilton Worldwide Holdings, Inc. (b) | 215,900 | 31,329 | |
Krispy Kreme, Inc. | 585,200 | 8,772 | |
Marriott International, Inc. Class A (b) | 189,400 | 30,516 | |
Restaurant Brands International, Inc. (c) | 670,600 | 37,533 | |
Starbucks Corp. | 800 | 79 | |
197,246 | |||
Household Durables - 2.4% | |||
D.R. Horton, Inc. | 231,200 | 20,628 | |
Lennar Corp. Class A | 705,900 | 67,844 | |
Sony Group Corp. | 270,600 | 30,272 | |
Whirlpool Corp. | 197,400 | 41,492 | |
160,236 | |||
Internet & Direct Marketing Retail - 0.4% | |||
eBay, Inc. | 439,700 | 26,413 | |
Multiline Retail - 1.7% | |||
Dollar General Corp. | 462,000 | 96,318 | |
Target Corp. | 66,500 | 14,659 | |
110,977 | |||
Specialty Retail - 2.3% | |||
American Eagle Outfitters, Inc. | 4,200 | 96 | |
Camping World Holdings, Inc. (c) | 1,311,200 | 43,532 | |
Lowe's Companies, Inc. | 359,500 | 85,327 | |
Williams-Sonoma, Inc. (c) | 142,400 | 22,861 | |
151,816 | |||
Textiles, Apparel & Luxury Goods - 0.6% | |||
adidas AG | 101,600 | 27,881 | |
PVH Corp. | 126,401 | 12,009 | |
39,890 | |||
TOTAL CONSUMER DISCRETIONARY | 708,561 | ||
CONSUMER STAPLES - 7.8% | |||
Beverages - 3.1% | |||
Constellation Brands, Inc. Class A (sub. vtg.) | 46,100 | 10,960 | |
Diageo PLC | 745,778 | 37,633 | |
Keurig Dr. Pepper, Inc. | 2,100,200 | 79,703 | |
The Coca-Cola Co. | 1,269,300 | 77,440 | |
205,736 | |||
Food & Staples Retailing - 1.8% | |||
Alimentation Couche-Tard, Inc. Class A (multi-vtg.) | 1,004,200 | 40,503 | |
BJ's Wholesale Club Holdings, Inc. (b) | 276,400 | 16,990 | |
Walmart, Inc. | 425,800 | 59,531 | |
117,024 | |||
Household Products - 1.1% | |||
Reynolds Consumer Products, Inc. | 552,200 | 16,715 | |
Spectrum Brands Holdings, Inc. | 644,975 | 57,648 | |
74,363 | |||
Tobacco - 1.8% | |||
Altria Group, Inc. | 1,350,214 | 68,699 | |
Swedish Match Co. AB | 6,819,700 | 52,766 | |
121,465 | |||
TOTAL CONSUMER STAPLES | 518,588 | ||
ENERGY - 2.9% | |||
Oil, Gas & Consumable Fuels - 2.9% | |||
Cameco Corp. (c) | 694,600 | 13,496 | |
Canadian Natural Resources Ltd. | 234,400 | 11,936 | |
Energy Transfer LP | 2,001,400 | 19,153 | |
Enterprise Products Partners LP | 2,218,600 | 52,448 | |
Exxon Mobil Corp. | 339,697 | 25,803 | |
Hess Corp. | 88,400 | 8,158 | |
Reliance Industries Ltd. sponsored GDR (a) | 973,100 | 62,603 | |
193,597 | |||
FINANCIALS - 7.5% | |||
Banks - 1.4% | |||
Wells Fargo & Co. | 1,729,393 | 93,041 | |
Capital Markets - 2.5% | |||
BlackRock, Inc. Class A | 61,400 | 50,529 | |
Brookfield Asset Management, Inc. Class A | 466,800 | 25,721 | |
Intercontinental Exchange, Inc. | 720,100 | 91,208 | |
167,458 | |||
Diversified Financial Services - 0.7% | |||
Apollo Global Management, Inc. (c) | 649,400 | 45,458 | |
Insurance - 2.9% | |||
Arthur J. Gallagher & Co. | 440,300 | 69,541 | |
Brookfield Asset Management Reinsurance Partners Ltd. | 2,825 | 159 | |
Marsh & McLennan Companies, Inc. | 271,400 | 41,698 | |
The Travelers Companies, Inc. | 469,800 | 78,071 | |
189,469 | |||
TOTAL FINANCIALS | 495,426 | ||
HEALTH CARE - 12.3% | |||
Biotechnology - 0.4% | |||
AbbVie, Inc. | 181,600 | 24,859 | |
Health Care Providers & Services - 4.4% | |||
Cigna Corp. | 353,300 | 81,422 | |
CVS Health Corp. | 321,800 | 34,275 | |
Humana, Inc. | 150,200 | 58,954 | |
UnitedHealth Group, Inc. | 256,606 | 121,264 | |
295,915 | |||
Life Sciences Tools & Services - 1.7% | |||
Danaher Corp. | 84,100 | 24,035 | |
Thermo Fisher Scientific, Inc. | 149,000 | 86,614 | |
110,649 | |||
Pharmaceuticals - 5.8% | |||
AstraZeneca PLC (United Kingdom) | 337,500 | 39,261 | |
Bristol-Myers Squibb Co. | 1,498,600 | 97,244 | |
Eli Lilly & Co. | 273,700 | 67,163 | |
Merck KGaA | 262,600 | 57,588 | |
Pfizer, Inc. | 237,900 | 12,535 | |
Roche Holding AG (participation certificate) | 159,680 | 61,796 | |
Sanofi SA | 126,400 | 13,217 | |
UCB SA | 382,200 | 38,031 | |
386,835 | |||
TOTAL HEALTH CARE | 818,258 | ||
INDUSTRIALS - 11.3% | |||
Aerospace & Defense - 2.2% | |||
Airbus Group NV (b) | 341,500 | 43,607 | |
HEICO Corp. Class A | 30,351 | 3,330 | |
L3Harris Technologies, Inc. | 14,800 | 3,097 | |
Northrop Grumman Corp. | 106,100 | 39,246 | |
The Boeing Co. (b) | 283,000 | 56,668 | |
145,948 | |||
Air Freight & Logistics - 0.2% | |||
United Parcel Service, Inc. Class B | 78,800 | 15,934 | |
Airlines - 0.2% | |||
Copa Holdings SA Class A (b) | 127,100 | 10,623 | |
Building Products - 0.2% | |||
Fortune Brands Home & Security, Inc. | 163,500 | 15,397 | |
Commercial Services & Supplies - 1.1% | |||
GFL Environmental, Inc. (c) | 2,136,500 | 70,189 | |
Electrical Equipment - 0.1% | |||
AMETEK, Inc. | 62,500 | 8,548 | |
Industrial Conglomerates - 2.3% | |||
General Electric Co. | 1,274,650 | 120,429 | |
Hitachi Ltd. | 480,900 | 24,995 | |
Roper Technologies, Inc. | 7,200 | 3,148 | |
148,572 | |||
Machinery - 2.4% | |||
Allison Transmission Holdings, Inc. | 1,595,402 | 60,609 | |
Deere & Co. | 113,900 | 42,872 | |
Fortive Corp. | 133,300 | 9,403 | |
PACCAR, Inc. | 115,100 | 10,703 | |
Toro Co. | 364,000 | 35,155 | |
158,742 | |||
Marine - 0.2% | |||
2020 Bulkers Ltd. (d) | 1,128,200 | 13,772 | |
Professional Services - 1.1% | |||
Cool Co. Ltd. (b) | 958,100 | 9,665 | |
Equifax, Inc. | 122,300 | 29,323 | |
IHS Markit Ltd. | 277,900 | 32,456 | |
71,444 | |||
Road & Rail - 1.2% | |||
Canadian Pacific Railway Ltd. | 544,100 | 38,849 | |
TFI International, Inc. (Canada) | 408,700 | 39,338 | |
78,187 | |||
Trading Companies & Distributors - 0.1% | |||
Watsco, Inc. | 30,400 | 8,590 | |
TOTAL INDUSTRIALS | 745,946 | ||
INFORMATION TECHNOLOGY - 26.5% | |||
Electronic Equipment & Components - 0.2% | |||
Jabil, Inc. | 247,000 | 15,188 | |
Vontier Corp. | 6,702 | 188 | |
15,376 | |||
IT Services - 6.2% | |||
Amadeus IT Holding SA Class A (b) | 223,300 | 15,354 | |
Cognizant Technology Solutions Corp. Class A | 467,900 | 39,968 | |
DXC Technology Co. (b) | 679,100 | 20,427 | |
Fidelity National Information Services, Inc. | 421,300 | 50,522 | |
Genpact Ltd. | 1,452,300 | 72,252 | |
Global Payments, Inc. | 115,600 | 17,326 | |
MasterCard, Inc. Class A | 134,700 | 52,045 | |
Visa, Inc. Class A | 621,500 | 140,565 | |
408,459 | |||
Semiconductors & Semiconductor Equipment - 5.1% | |||
Broadcom, Inc. | 100,200 | 58,705 | |
KLA Corp. | 83,300 | 32,426 | |
Lam Research Corp. | 53,100 | 31,325 | |
Marvell Technology, Inc. | 1,180,600 | 84,295 | |
Microchip Technology, Inc. | 109,100 | 8,453 | |
NVIDIA Corp. | 292,600 | 71,646 | |
NXP Semiconductors NV | 84,400 | 17,339 | |
Teradyne, Inc. | 221,300 | 25,987 | |
Universal Display Corp. | 60,000 | 9,211 | |
339,387 | |||
Software - 11.0% | |||
Intuit, Inc. | 149,900 | 83,229 | |
Microsoft Corp. | 1,710,300 | 531,867 | |
Oracle Corp. | 386,800 | 31,393 | |
SAP SE | 106,500 | 13,362 | |
SS&C Technologies Holdings, Inc. | 847,100 | 67,658 | |
727,509 | |||
Technology Hardware, Storage & Peripherals - 4.0% | |||
Apple, Inc. | 1,238,972 | 216,548 | |
Samsung Electronics Co. Ltd. | 802,150 | 49,886 | |
266,434 | |||
TOTAL INFORMATION TECHNOLOGY | 1,757,165 | ||
MATERIALS - 2.0% | |||
Chemicals - 0.9% | |||
Air Products & Chemicals, Inc. | 25,467 | 7,185 | |
Valvoline, Inc. | 1,492,800 | 49,173 | |
56,358 | |||
Metals & Mining - 1.1% | |||
Franco-Nevada Corp. | 300 | 40 | |
Freeport-McMoRan, Inc. | 784,600 | 29,203 | |
Glencore Xstrata PLC | 8,815,600 | 45,926 | |
75,169 | |||
TOTAL MATERIALS | 131,527 | ||
REAL ESTATE - 4.1% | |||
Equity Real Estate Investment Trusts (REITs) - 4.1% | |||
American Tower Corp. | 230,100 | 57,870 | |
Crown Castle International Corp. | 39,800 | 7,264 | |
CubeSmart | 104,300 | 5,292 | |
Digital Realty Trust, Inc. | 289,300 | 43,172 | |
Four Corners Property Trust, Inc. | 644,600 | 17,449 | |
National Retail Properties, Inc. | 212,800 | 9,444 | |
Park Hotels & Resorts, Inc. (b) | 1,032,800 | 18,797 | |
Public Storage | 65,400 | 23,448 | |
Simon Property Group, Inc. | 474,500 | 69,846 | |
The Macerich Co. | 1,313,500 | 21,725 | |
274,307 | |||
UTILITIES - 5.7% | |||
Electric Utilities - 2.9% | |||
Edison International | 919,100 | 57,710 | |
Exelon Corp. | 1,261,730 | 73,117 | |
FirstEnergy Corp. | 294,700 | 12,366 | |
Southern Co. | 741,200 | 51,506 | |
194,699 | |||
Gas Utilities - 0.3% | |||
Brookfield Infrastructure Corp. A Shares | 261,600 | 17,349 | |
Independent Power and Renewable Electricity Producers - 1.2% | |||
NextEra Energy Partners LP | 294,100 | 22,122 | |
The AES Corp. | 1,898,000 | 42,098 | |
Vistra Corp. | 805,300 | 17,564 | |
81,784 | |||
Multi-Utilities - 1.3% | |||
CenterPoint Energy, Inc. | 1,954,900 | 55,441 | |
Dominion Energy, Inc. | 357,400 | 28,828 | |
84,269 | |||
TOTAL UTILITIES | 378,101 | ||
TOTAL COMMON STOCKS | |||
(Cost $5,151,058) | 6,558,504 | ||
Money Market Funds - 2.2% | |||
Fidelity Cash Central Fund 0.08% (e) | 44,762,768 | 44,772 | |
Fidelity Securities Lending Cash Central Fund 0.08% (e)(f) | 99,436,166 | 99,446 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $144,218) | 144,218 | ||
TOTAL INVESTMENT IN SECURITIES - 101.1% | |||
(Cost $5,295,276) | 6,702,722 | ||
NET OTHER ASSETS (LIABILITIES) - (1.1)% | (71,780) | ||
NET ASSETS - 100% | $6,630,942 |
Legend
(a) 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 $106,566,000 or 1.6% of net assets.
(b) Non-income producing
(c) Security or a portion of the security is on loan at period end.
(d) Affiliated company
(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.
Affiliated Central Funds
Fiscal year to date information regarding the Fund's investments in Fidelity Central Funds, including the ownership percentage, is presented below.
Fund (Amounts in thousands) | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Realized Gain/Loss | Change in Unrealized appreciation (depreciation) | Value, end of period | % ownership, end of period |
Fidelity Cash Central Fund 0.08% | $3,046 | $335,493 | $293,767 | $4 | $-- | $-- | $44,772 | 0.1% |
Fidelity Securities Lending Cash Central Fund 0.08% | 62,875 | 551,864 | 515,293 | 132 | -- | -- | 99,446 | 0.3% |
Total | $65,921 | $887,357 | $809,060 | $136 | $-- | $-- | $144,218 |
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 | Dividend Income | Realized Gain (loss) | Change in Unrealized appreciation (depreciation) | Value, end of period |
2020 Bulkers Ltd. | $-- | $13,411 | $-- | $801 | $-- | $361 | $13,772 |
Total | $-- | $13,411 | $-- | $801 | $-- | $361 | $13,772 |
Investment Valuation
The following is a summary of the inputs used, as of January 31, 2022, 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 | $537,028 | $462,475 | $74,553 | $-- |
Consumer Discretionary | 708,561 | 645,906 | 62,655 | -- |
Consumer Staples | 518,588 | 428,189 | 90,399 | -- |
Energy | 193,597 | 130,994 | 62,603 | -- |
Financials | 495,426 | 495,426 | -- | -- |
Health Care | 818,258 | 608,365 | 209,893 | -- |
Industrials | 745,946 | 653,907 | 92,039 | -- |
Information Technology | 1,757,165 | 1,678,563 | 78,602 | -- |
Materials | 131,527 | 85,601 | 45,926 | -- |
Real Estate | 274,307 | 274,307 | -- | -- |
Utilities | 378,101 | 378,101 | -- | -- |
Money Market Funds | 144,218 | 144,218 | -- | -- |
Total Investments in Securities: | $6,702,722 | $5,986,052 | $716,670 | $-- |
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 | 82.4% |
Canada | 4.6% |
Germany | 2.0% |
Bermuda | 1.8% |
United Kingdom | 1.2% |
Others (Individually Less Than 1%) | 8.0% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | January 31, 2022 (Unaudited) | |
Assets | ||
Investment in securities, at value (including securities loaned of $99,127) — See accompanying schedule: Unaffiliated issuers (cost $5,137,647) | $6,544,732 | |
Fidelity Central Funds (cost $144,218) | 144,218 | |
Other affiliated issuers (cost $13,411) | 13,772 | |
Total Investment in Securities (cost $5,295,276) | $6,702,722 | |
Foreign currency held at value (cost $401) | 401 | |
Receivable for investments sold | 35,331 | |
Receivable for fund shares sold | 2,598 | |
Dividends receivable | 6,246 | |
Distributions receivable from Fidelity Central Funds | 51 | |
Prepaid expenses | 6 | |
Other receivables | 447 | |
Total assets | 6,747,802 | |
Liabilities | ||
Payable to custodian bank | $7 | |
Payable for investments purchased | 11,504 | |
Payable for fund shares redeemed | 2,801 | |
Accrued management fee | 1,836 | |
Other affiliated payables | 769 | |
Other payables and accrued expenses | 502 | |
Collateral on securities loaned | 99,441 | |
Total liabilities | 116,860 | |
Net Assets | $6,630,942 | |
Net Assets consist of: | ||
Paid in capital | $4,858,954 | |
Total accumulated earnings (loss) | 1,771,988 | |
Net Assets | $6,630,942 | |
Net Asset Value and Maximum Offering Price | ||
Dividend Growth: | ||
Net Asset Value, offering price and redemption price per share ($6,075,641 ÷ 175,904 shares) | $34.54 | |
Class K: | ||
Net Asset Value, offering price and redemption price per share ($555,301 ÷ 16,101 shares) | $34.49 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Amounts in thousands | Six months ended January 31, 2022 (Unaudited) | |
Investment Income | ||
Dividends (including $801 earned from other affiliated issuers) | $50,895 | |
Income from Fidelity Central Funds (including $132 from security lending) | 136 | |
Total income | 51,031 | |
Expenses | ||
Management fee | ||
Basic fee | $17,919 | |
Performance adjustment | (6,637) | |
Transfer agent fees | 4,060 | |
Accounting fees | 578 | |
Custodian fees and expenses | 57 | |
Independent trustees' fees and expenses | 12 | |
Registration fees | 30 | |
Audit | 38 | |
Legal | 6 | |
Interest | 4 | |
Miscellaneous | 13 | |
Total expenses before reductions | 16,080 | |
Expense reductions | (105) | |
Total expenses after reductions | 15,975 | |
Net investment income (loss) | 35,056 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 483,783 | |
Foreign currency transactions | (35) | |
Total net realized gain (loss) | 483,748 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | (409,902) | |
Affiliated issuers | 361 | |
Assets and liabilities in foreign currencies | (75) | |
Total change in net unrealized appreciation (depreciation) | (409,616) | |
Net gain (loss) | 74,132 | |
Net increase (decrease) in net assets resulting from operations | $109,188 |
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, 2022 (Unaudited) | Year ended July 31, 2021 |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $35,056 | $87,646 |
Net realized gain (loss) | 483,748 | 407,543 |
Change in net unrealized appreciation (depreciation) | (409,616) | 1,823,885 |
Net increase (decrease) in net assets resulting from operations | 109,188 | 2,319,074 |
Distributions to shareholders | (536,432) | (129,527) |
Share transactions - net increase (decrease) | 136,951 | (1,180,808) |
Total increase (decrease) in net assets | (290,293) | 1,008,739 |
Net Assets | ||
Beginning of period | 6,921,235 | 5,912,496 |
End of period | $6,630,942 | $6,921,235 |
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, | |||||
2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $36.80 | $26.38 | $29.59 | $33.79 | $35.06 | $31.51 |
Income from Investment Operations | ||||||
Net investment income (loss)A,B | .18 | .42 | .58 | .59 | .65 | .53 |
Net realized and unrealized gain (loss) | .42 | 10.59 | (2.29) | 1.01C | 3.72 | 3.53 |
Total from investment operations | .60 | 11.01 | (1.71) | 1.60 | 4.37 | 4.06 |
Distributions from net investment income | (.37) | (.59) | (.49) | (.60) | (.60) | (.51) |
Distributions from net realized gain | (2.50) | – | (1.01) | (5.20) | (5.04) | – |
Total distributions | (2.86)D | (.59) | (1.50) | (5.80) | (5.64) | (.51) |
Net asset value, end of period | $34.54 | $36.80 | $26.38 | $29.59 | $33.79 | $35.06 |
Total ReturnE,F | 1.68% | 42.42% | (6.24)% | 5.38%C | 13.60% | 13.06% |
Ratios to Average Net AssetsB,G,H | ||||||
Expenses before reductions | .48%I | .49% | .49% | .50% | .50% | .52% |
Expenses net of fee waivers, if any | .48%I | .49% | .49% | .50% | .50% | .52% |
Expenses net of all reductions | .48%I | .48% | .48% | .49% | .49% | .52% |
Net investment income (loss) | 1.02%I | 1.31% | 2.11% | 2.05% | 1.94% | 1.60% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $6,076 | $6,114 | $4,685 | $5,728 | $6,055 | $5,952 |
Portfolio turnover rateJ | 56%I | 93% | 69% | 101% | 115% | 43% |
A Calculated based on average shares outstanding during the period.
B Net investment income (loss) is affected by the timing of the declaration of dividends by any underlying mutual funds or exchange-traded funds (ETFs). Net investment income (loss) of any such underlying funds is not included in the Fund's net investment income (loss) ratio.
C 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%
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, | |||||
2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $36.76 | $26.36 | $29.56 | $33.76 | $35.04 | $31.50 |
Income from Investment Operations | ||||||
Net investment income (loss)A,B | .20 | .44 | .61 | .63 | .69 | .56 |
Net realized and unrealized gain (loss) | .42 | 10.57 | (2.28) | 1.01C | 3.71 | 3.53 |
Total from investment operations | .62 | 11.01 | (1.67) | 1.64 | 4.40 | 4.09 |
Distributions from net investment income | (.39) | (.61) | (.52) | (.63) | (.64) | (.55) |
Distributions from net realized gain | (2.50) | – | (1.01) | (5.20) | (5.04) | – |
Total distributions | (2.89) | (.61) | (1.53) | (5.84)D | (5.68) | (.55) |
Net asset value, end of period | $34.49 | $36.76 | $26.36 | $29.56 | $33.76 | $35.04 |
Total ReturnE,F | 1.73% | 42.53% | (6.11)% | 5.50%C | 13.70% | 13.16% |
Ratios to Average Net AssetsB,G,H | ||||||
Expenses before reductions | .39%I | .39% | .39% | .40% | .40% | .41% |
Expenses net of fee waivers, if any | .39%I | .39% | .39% | .39% | .40% | .41% |
Expenses net of all reductions | .39%I | .38% | .38% | .38% | .39% | .41% |
Net investment income (loss) | 1.10%I | 1.41% | 2.22% | 2.16% | 2.05% | 1.71% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $555 | $807 | $1,228 | $1,480 | $1,212 | $1,477 |
Portfolio turnover rateJ | 56%I | 93% | 69% | 101% | 115% | 43% |
A Calculated based on average shares outstanding during the period.
B Net investment income (loss) is affected by the timing of the declaration of dividends by any underlying mutual funds or exchange-traded funds (ETFs). Net investment income (loss) of any such underlying funds is not included in the Fund's net investment income (loss) ratio.
C 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%
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, 2022
(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.
Funds may invest 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 Schedule of Investments lists any Fidelity Central Funds held as an investment as of period end, but does not include the underlying holdings of each Fidelity Central Fund. An investing fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
Based on its investment objective, each Fidelity Central Fund may invest or participate in various investment vehicles or strategies that are similar to those of the investing fund. These strategies are consistent with the investment objectives of the investing fund and may involve certain economic risks which may cause a decline in value of each of the Fidelity Central Funds and thus a decline in the value of the investing fund.
Fidelity Central Fund | Investment Manager | Investment Objective | Investment Practices | Expense Ratio(a) |
Fidelity Money Market Central Funds | Fidelity Management & Research Company LLC (FMR) | Each fund seeks to obtain a high level of current income consistent with the preservation of capital and liquidity. | Short-term Investments | Less than .005% |
(a) Expenses expressed as a percentage of average net assets and are as of each underlying Central Fund's most recent annual or semi-annual shareholder report.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds which contain the significant accounting policies (including investment valuation policies) of those funds, and are not covered by the Report of Independent Registered Public Accounting Firm, are available on the Securities and Exchange Commission 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 Fund's Schedule of Investments lists any underlying mutual funds or exchange-traded funds (ETFs) but does not include the underlying holdings of these funds. 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 – Unadjusted 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, 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, 2022 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. Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of a fund include an amount in addition to trade execution, which may be rebated back to a fund. Any such rebates are included in net realized gain (loss) on investments in the Statement of Operations. 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. Funds may file withholding tax reclaims in certain jurisdictions to recover a portion of amounts previously withheld. Any withholding tax reclaims income is included in the Statement of Operations in dividends. Any receivables for withholding tax reclaims are included in the Statement of Assets and Liabilities in dividends receivable.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of a 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 a fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred, as applicable. Certain expense reductions may also differ by class, if applicable. 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. Expenses included in the accompanying financial statements reflect the expenses of that fund and do not include any expenses associated with any underlying mutual funds or exchange-traded funds. Although not included in a fund's expenses, a fund indirectly bears its proportionate share of these expenses through the net asset value of each underlying mutual fund or exchange-traded fund. 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 | $444 |
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 Trustee 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 | $1,511,790 |
Gross unrealized depreciation | (108,640) |
Net unrealized appreciation (depreciation) | $1,403,150 |
Tax cost | $5,299,572 |
Restricted Securities (including Private Placements). Funds may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities held at period end is included at the end of the Schedule of Investments, if applicable.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and in-kind transactions, as applicable, are noted in the table below.
Purchases ($) | Sales ($) | |
Fidelity Dividend Growth Fund | 1,903,788 | 2,333,946 |
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 .22% 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 .33% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company 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 | $3,930 | .13 |
Class K | 130 | .04 |
$4,060 |
(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 | $49 |
Interfund Lending Program. Pursuant to an Exemptive Order issued by the Securities and Exchange Commission (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 | $12,038 | .32% | $4 |
Interfund Trades. Funds may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Any interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note. Interfund trades during the period are noted in the table below.
Purchases ($) | Sales ($) | Realized Gain (Loss) ($) | |
Fidelity Dividend Growth Fund | 142,531 | 235,798 | 40,909 |
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. During the period, there were no borrowings on this line of credit.
Amount | |
Fidelity Dividend Growth Fund | $5 |
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 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 | $14 | $7 | $– |
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 | $1,935 | .58% | $–(a) |
(a) In the amount of less than five hundred dollars.
9. Expense Reductions.
During the period the investment adviser or an affiliate reimbursed and/or waived a portion of fund-level operating expenses in the amount of $105.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended January 31, 2022 | Year ended July 31, 2021 | |
Fidelity Dividend Growth Fund | ||
Distributions to shareholders | ||
Dividend Growth | $478,999 | $101,466 |
Class K | 57,433 | 28,061 |
Total | $536,432 | $129,527 |
11. Share Transactions.
Share transactions for each class were as follows and may contain in-kind transactions, automatic conversions between classes or exchanges between affiliated funds:
Shares | Shares | Dollars | Dollars | |
Six months ended January 31, 2022 | Year ended July 31, 2021 | Six months ended January 31, 2022 | Year ended July 31, 2021 | |
Fidelity Dividend Growth Fund | ||||
Dividend Growth | ||||
Shares sold | 5,502 | 8,974 | $196,248 | $287,945 |
Reinvestment of distributions | 13,105 | 3,455 | 457,667 | 96,813 |
Shares redeemed | (8,864) | (23,848) | (316,328) | (736,056) |
Net increase (decrease) | 9,743 | (11,419) | $337,587 | $(351,298) |
Class K | ||||
Shares sold | 1,529 | 7,248 | $55,055 | $222,321 |
Reinvestment of distributions | 1,648 | 1,002 | 57,433 | 28,061 |
Shares redeemed | (9,033) | (32,868) | (313,124) | (1,079,892) |
Net increase (decrease) | (5,856) | (24,618) | $(200,636) | $(829,510) |
12. Other.
A 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, a fund may also enter into contracts that provide general indemnifications. A fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against a 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, 2021 to January 31, 2022).
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, 2021 | Ending Account Value January 31, 2022 | Expenses Paid During Period-B August 1, 2021 to January 31, 2022 | |
Fidelity Dividend Growth Fund | ||||
Dividend Growth | .48% | |||
Actual | $1,000.00 | $1,016.80 | $2.44 | |
Hypothetical-C | $1,000.00 | $1,022.79 | $2.45 | |
Class K | .39% | |||
Actual | $1,000.00 | $1,017.30 | $1.98 | |
Hypothetical-C | $1,000.00 | $1,023.24 | $1.99 |
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
DGF-SANN-0422
1.470802.125
Fidelity® Blue Chip Growth Fund
Semi-Annual Report
January 31, 2022
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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. © 2022 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 COVID-19 emerged as a public health emergency that had a major influence on financial markets, primarily based on its impact on the global economy and corporate earnings. On March 11, 2020, the World Health Organization declared the COVID-19 outbreak a pandemic, citing sustained risk of further global spread. The pandemic prompted a number of measures to limit the spread of COVID-19, 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. To help stem the turmoil, the U.S. government took unprecedented action – in concert with the U.S. Federal Reserve and central banks around the world – to help support consumers, businesses, and the broader economy, and to limit disruption to the financial system.
In general, the overall impact of the pandemic lessened in 2021, amid a resilient economy and widespread distribution of three COVID-19 vaccines granted emergency use authorization from the U.S. Food and Drug Administration (FDA) early in the year. Still, the situation remains dynamic, and the extent and duration of its influence on financial markets and the economy is highly uncertain, due in part to a recent spike in cases based on highly contagious variants of the coronavirus.
Extreme events such as the COVID-19 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 continue to take extra steps to be responsive to customer needs. We encourage you to visit us online, where we offer ongoing updates, commentary, and analysis on the markets and our funds.
Investment Summary (Unaudited)
Top Ten Stocks as of January 31, 2022
% of fund's net assets | |
Apple, Inc. | 10.4 |
Microsoft Corp. | 7.3 |
Alphabet, Inc. Class A | 6.8 |
Amazon.com, Inc. | 6.6 |
NVIDIA Corp. | 5.6 |
Meta Platforms, Inc. Class A | 4.3 |
Tesla, Inc. | 3.6 |
Marvell Technology, Inc. | 3.2 |
Lowe's Companies, Inc. | 1.7 |
Salesforce.com, Inc. | 1.6 |
51.1 |
Top Five Market Sectors as of January 31, 2022
% of fund's net assets | |
Information Technology | 40.2 |
Consumer Discretionary | 27.8 |
Communication Services | 14.7 |
Health Care | 5.8 |
Industrials | 5.4 |
Asset Allocation (% of fund's net assets)
As of January 31, 2022* | ||
Stocks | 97.6% | |
Convertible Securities | 1.9% | |
Other Investments | 0.1% | |
Short-Term Investments and Net Other Assets (Liabilities) | 0.4% |
* Foreign investments - 7.9%
Schedule of Investments January 31, 2022 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.4% | |||
Shares | Value (000s) | ||
COMMUNICATION SERVICES - 14.5% | |||
Entertainment - 2.2% | |||
Endeavor Group Holdings, Inc. (a) | 1,021,359 | $32,040 | |
Endeavor Group Holdings, Inc. (b)(c) | 665,315 | 20,871 | |
Endeavor Group Holdings, Inc. Class A (d) | 769,401 | 24,136 | |
Netflix, Inc. (b) | 1,477,114 | 630,934 | |
Roblox Corp. (b)(c) | 1,125,913 | 74,153 | |
Roku, Inc. Class A (b) | 427,654 | 70,157 | |
Sea Ltd. ADR (b) | 2,293,049 | 344,668 | |
1,196,959 | |||
Interactive Media & Services - 12.1% | |||
Alphabet, Inc. Class A (b) | 1,342,462 | 3,632,796 | |
Bumble, Inc. | 521,200 | 15,381 | |
Meta Platforms, Inc. Class A (b) | 7,417,451 | 2,323,591 | |
Snap, Inc. Class A (b) | 12,010,307 | 390,815 | |
Tencent Holdings Ltd. | 2,174,883 | 136,283 | |
ZipRecruiter, Inc. (b) | 918,605 | 19,925 | |
6,518,791 | |||
Media - 0.2% | |||
Criteo SA sponsored ADR (b) | 856,553 | 28,951 | |
DISH Network Corp. Class A (b) | 1,795,075 | 56,365 | |
85,316 | |||
TOTAL COMMUNICATION SERVICES | 7,801,066 | ||
CONSUMER DISCRETIONARY - 27.3% | |||
Automobiles - 4.6% | |||
Ford Motor Co. | 2,288,577 | 46,458 | |
General Motors Co. (b) | 1,452,873 | 76,610 | |
Neutron Holdings, Inc. (b)(d)(e) | 7,152,433 | 501 | |
Rad Power Bikes, Inc. (b)(d)(e) | 928,091 | 8,895 | |
Rivian Automotive, Inc. | 3,588,326 | 212,307 | |
Rivian Automotive, Inc. (c) | 581,313 | 38,216 | |
Tesla, Inc. (b) | 2,097,478 | 1,964,750 | |
XPeng, Inc.: | |||
ADR (b) | 3,998,089 | 140,293 | |
Class A | 482,126 | 8,409 | |
2,496,439 | |||
Diversified Consumer Services - 0.0% | |||
Mister Car Wash, Inc. | 476,424 | 8,194 | |
Hotels, Restaurants & Leisure - 4.4% | |||
Airbnb, Inc. Class A (b) | 3,673,418 | 565,596 | |
Booking Holdings, Inc. (b) | 27,100 | 66,561 | |
Caesars Entertainment, Inc. (b) | 3,076,103 | 234,214 | |
Chipotle Mexican Grill, Inc. (b) | 135,268 | 200,951 | |
Churchill Downs, Inc. | 443,922 | 93,357 | |
Dutch Bros, Inc. (c) | 442,335 | 23,068 | |
Evolution AB (a) | 221,147 | 27,514 | |
Expedia, Inc. (b) | 736,816 | 135,051 | |
Flutter Entertainment PLC (b) | 45,752 | 6,971 | |
Hilton Worldwide Holdings, Inc. (b) | 1,109,342 | 160,977 | |
Marriott International, Inc. Class A (b) | 1,405,765 | 226,497 | |
MGM Resorts International | 1,375,868 | 58,777 | |
Penn National Gaming, Inc. (b) | 7,513,447 | 342,688 | |
Planet Fitness, Inc. (b) | 132,000 | 11,700 | |
Sweetgreen, Inc. | 4,495,729 | 122,396 | |
Sweetgreen, Inc. Class A (c) | 1,256,834 | 38,019 | |
Vail Resorts, Inc. | 136,120 | 37,719 | |
2,352,056 | |||
Household Durables - 0.2% | |||
Lennar Corp. Class A | 492,555 | 47,339 | |
Tempur Sealy International, Inc. | 1,455,218 | 57,932 | |
TRI Pointe Homes, Inc. (b) | 329,067 | 7,835 | |
113,106 | |||
Internet & Direct Marketing Retail - 7.8% | |||
Amazon.com, Inc. (b) | 1,185,610 | 3,546,717 | |
BARK, Inc. (d)(f) | 1,949,100 | 7,348 | |
BARK, Inc. (b)(c)(f) | 2,067,727 | 7,795 | |
Cazoo Group Ltd. | 4,096,720 | 18,448 | |
Chewy, Inc. (b)(c) | 1,638,350 | 78,002 | |
Deliveroo PLC Class A (a)(b) | 16,834,814 | 35,369 | |
Delivery Hero AG (a)(b) | 102,091 | 7,880 | |
Doordash, Inc. (b) | 558,232 | 63,354 | |
Etsy, Inc. (b) | 538,884 | 84,648 | |
FSN E-Commerce Ventures Private Ltd. (b)(d) | 6,140,430 | 115,588 | |
Global-e Online Ltd. (b) | 709,377 | 25,332 | |
JD.com, Inc.: | |||
Class A (b) | 129,756 | 4,918 | |
sponsored ADR (b) | 175,000 | 13,104 | |
Overstock.com, Inc. (b)(c) | 403,987 | 19,367 | |
Pinduoduo, Inc. ADR (b) | 396,700 | 23,739 | |
Wayfair LLC Class A (b) | 810,598 | 126,388 | |
Zomato Ltd. (b)(d) | 25,862,000 | 28,215 | |
4,206,212 | |||
Leisure Products - 0.0% | |||
Peloton Interactive, Inc. Class A (b) | 703,823 | 19,235 | |
Multiline Retail - 0.5% | |||
Dollar Tree, Inc. (b) | 1,600,653 | 210,038 | |
Ollie's Bargain Outlet Holdings, Inc. (b) | 824,196 | 39,512 | |
249,550 | |||
Specialty Retail - 5.9% | |||
American Eagle Outfitters, Inc. (c)(f) | 8,805,532 | 201,030 | |
Aritzia, Inc. (b) | 1,405,540 | 65,204 | |
Bath & Body Works, Inc. | 774,238 | 43,412 | |
Burlington Stores, Inc. (b) | 772,236 | 182,966 | |
Carvana Co. Class A (b) | 1,955,622 | 316,928 | |
Citi Trends, Inc. (b)(c) | 339,726 | 16,551 | |
Dick's Sporting Goods, Inc. | 1,280,481 | 147,768 | |
Fanatics, Inc. Class A (d)(e) | 1,693,889 | 114,913 | |
Five Below, Inc. (b) | 1,093,966 | 179,410 | |
Floor & Decor Holdings, Inc. Class A (b) | 1,548,564 | 168,360 | |
Foot Locker, Inc. | 956,315 | 42,728 | |
JD Sports Fashion PLC | 6,817,155 | 17,480 | |
Lowe's Companies, Inc. | 3,765,828 | 893,819 | |
RH (b)(c) | 714,723 | 287,905 | |
Signet Jewelers Ltd. (c) | 718,917 | 61,920 | |
The Children's Place, Inc. (b)(c) | 266,153 | 18,830 | |
TJX Companies, Inc. | 1,913,354 | 137,704 | |
Victoria's Secret & Co. (b) | 3,294,688 | 183,942 | |
Warby Parker, Inc. (b)(c) | 2,202,997 | 81,885 | |
3,162,755 | |||
Textiles, Apparel & Luxury Goods - 3.9% | |||
Allbirds, Inc.: | |||
Class A (c) | 120,468 | 1,489 | |
Class B | 423,500 | 4,711 | |
Capri Holdings Ltd. (b) | 4,766,555 | 286,327 | |
Crocs, Inc. (b) | 2,084,223 | 213,883 | |
Deckers Outdoor Corp. (b) | 583,654 | 186,904 | |
Hermes International SCA | 12,128 | 18,209 | |
lululemon athletica, Inc. (b) | 1,468,845 | 490,242 | |
LVMH Moet Hennessy Louis Vuitton SE | 126,159 | 103,624 | |
Moncler SpA | 674,410 | 43,283 | |
NIKE, Inc. Class B | 3,062,519 | 453,467 | |
On Holding AG | 436,354 | 11,507 | |
PVH Corp. | 1,730,075 | 164,374 | |
Tapestry, Inc. | 2,986,705 | 113,345 | |
Tory Burch LLC (b)(d)(e)(g) | 293,611 | 16,210 | |
2,107,575 | |||
TOTAL CONSUMER DISCRETIONARY | 14,715,122 | ||
CONSUMER STAPLES - 0.6% | |||
Beverages - 0.5% | |||
Boston Beer Co., Inc. Class A (b) | 172,500 | 72,593 | |
Celsius Holdings, Inc. (b)(c) | 3,618,739 | 172,722 | |
245,315 | |||
Food & Staples Retailing - 0.0% | |||
Blink Health, Inc. Series A1 (b)(d)(e) | 51,117 | 1,952 | |
Food Products - 0.0% | |||
Sovos Brands, Inc. (c) | 237,543 | 3,485 | |
The Real Good Food Co. LLC Class B unit (f) | 1,262,072 | 6,747 | |
The Real Good Food Co., Inc. | 50,902 | 302 | |
10,534 | |||
Household Products - 0.0% | |||
Procter & Gamble Co. | 147,800 | 23,715 | |
Personal Products - 0.1% | |||
Olaplex Holdings, Inc. | 1,094,894 | 23,912 | |
Tobacco - 0.0% | |||
JUUL Labs, Inc.: | |||
Class A (b)(d)(e) | 21,148 | 916 | |
Class B (b)(d)(e) | 6,625 | 287 | |
1,203 | |||
TOTAL CONSUMER STAPLES | 306,631 | ||
ENERGY - 2.3% | |||
Energy Equipment & Services - 0.1% | |||
Halliburton Co. | 609,600 | 18,739 | |
Oil, Gas & Consumable Fuels - 2.2% | |||
Cenovus Energy, Inc. (Canada) | 1,787,561 | 26,002 | |
Cheniere Energy, Inc. | 254,258 | 28,451 | |
Denbury, Inc. (b) | 729,636 | 54,825 | |
Devon Energy Corp. | 1,516,671 | 76,698 | |
Diamondback Energy, Inc. | 980,167 | 123,658 | |
EOG Resources, Inc. | 1,423,614 | 158,704 | |
Hess Corp. | 2,003,277 | 184,882 | |
Marathon Oil Corp. | 577,500 | 11,244 | |
PDC Energy, Inc. | 100,700 | 5,968 | |
Phillips 66 Co. | 723,907 | 61,380 | |
Pioneer Natural Resources Co. | 390,669 | 85,514 | |
Range Resources Corp. (b) | 523,053 | 10,069 | |
Reliance Industries Ltd. | 8,399,193 | 270,852 | |
Reliance Industries Ltd. sponsored GDR (a) | 434,814 | 27,973 | |
Tourmaline Oil Corp. | 337,151 | 12,020 | |
Valero Energy Corp. | 770,917 | 63,963 | |
1,202,203 | |||
TOTAL ENERGY | 1,220,942 | ||
FINANCIALS - 1.4% | |||
Banks - 0.6% | |||
Bank of America Corp. | 1,301,973 | 60,073 | |
Kotak Mahindra Bank Ltd. (b) | 779,186 | 19,542 | |
Wells Fargo & Co. | 4,291,405 | 230,878 | |
310,493 | |||
Capital Markets - 0.4% | |||
Goldman Sachs Group, Inc. | 255,557 | 90,641 | |
Morgan Stanley | 1,090,721 | 111,843 | |
202,484 | |||
Consumer Finance - 0.2% | |||
American Express Co. | 491,181 | 88,324 | |
LendingClub Corp. (b) | 960,303 | 18,015 | |
106,339 | |||
Diversified Financial Services - 0.2% | |||
Ant International Co. Ltd. Class C (b)(d)(e) | 6,428,801 | 11,443 | |
Rapyd Financial Network 2016 Ltd. (d)(e) | 204,327 | 24,879 | |
Sonder Holdings, Inc. (d) | 1,041,047 | 8,920 | |
Sonder Holdings, Inc. | 891,027 | 7,634 | |
Sonder Holdings, Inc. | 467,393 | 4,005 | |
Sonder Holdings, Inc.: | |||
rights 1/18/27 (b)(e) | 16,222 | 86 | |
rights 1/18/27 (b)(e) | 16,221 | 69 | |
rights 1/18/27 (b)(e) | 16,222 | 56 | |
rights 1/18/27 (b)(e) | 16,221 | 45 | |
rights 1/18/27 (b)(e) | 16,221 | 36 | |
rights 1/18/27 (b)(e) | 16,221 | 29 | |
WeWork, Inc. (d) | 3,697,057 | 27,469 | |
WeWork, Inc. (b) | 6,856,797 | 50,946 | |
135,617 | |||
Thrifts & Mortgage Finance - 0.0% | |||
Housing Development Finance Corp. Ltd. | 697,722 | 23,822 | |
TOTAL FINANCIALS | 778,755 | ||
HEALTH CARE - 5.8% | |||
Biotechnology - 1.0% | |||
ADC Therapeutics SA (b) | 396,015 | 6,293 | |
Alnylam Pharmaceuticals, Inc. (b) | 773,384 | 106,418 | |
Arcutis Biotherapeutics, Inc. (b) | 494,681 | 7,475 | |
Argenx SE ADR (b) | 94,386 | 25,414 | |
Ascendis Pharma A/S sponsored ADR (b) | 455,226 | 55,374 | |
Avidity Biosciences, Inc. (b) | 201,771 | 3,353 | |
Biohaven Pharmaceutical Holding Co. Ltd. (b) | 80,502 | 10,696 | |
Bolt Biotherapeutics, Inc. | 53,788 | 207 | |
Cerevel Therapeutics Holdings (b) | 614,784 | 16,009 | |
Cibus Corp.: | |||
Series C (b)(d)(e)(g) | 3,045,600 | 4,903 | |
Series D (b)(d)(e)(g) | 1,716,640 | 2,764 | |
Series E (b)(d)(e)(g) | 2,099,645 | 3,380 | |
CytomX Therapeutics, Inc. (a)(b) | 378,621 | 1,742 | |
Day One Biopharmaceuticals, Inc. (b)(c) | 646,573 | 9,537 | |
Erasca, Inc. | 332,547 | 3,941 | |
Generation Bio Co. (b) | 841,805 | 5,472 | |
Horizon Therapeutics PLC (b) | 1,720,770 | 160,599 | |
Instil Bio, Inc. (b) | 568,034 | 6,595 | |
Karuna Therapeutics, Inc. (b) | 180,093 | 20,001 | |
Passage Bio, Inc. (b) | 68,367 | 344 | |
Recursion Pharmaceuticals, Inc. (b)(c) | 467,900 | 5,540 | |
Regeneron Pharmaceuticals, Inc. (b) | 47,423 | 28,861 | |
Relay Therapeutics, Inc. (b) | 278,741 | 6,169 | |
Revolution Medicines, Inc. (b) | 442,995 | 9,533 | |
Taysha Gene Therapies, Inc. (b) | 125,390 | 997 | |
Turning Point Therapeutics, Inc. (b) | 460,853 | 17,158 | |
Twist Bioscience Corp. (b) | 38,954 | 2,315 | |
Verve Therapeutics, Inc. | 487,088 | 14,038 | |
Xencor, Inc. (b) | 391,967 | 13,472 | |
548,600 | |||
Health Care Equipment & Supplies - 1.8% | |||
Axonics Modulation Technologies, Inc. (b) | 752,710 | 35,701 | |
Boston Scientific Corp. (b) | 720,022 | 30,889 | |
DexCom, Inc. (b) | 645,158 | 277,728 | |
Edwards Lifesciences Corp. (b) | 148,500 | 16,216 | |
Figs, Inc. Class A (b) | 569,008 | 12,791 | |
Il Makiage Ltd. (d)(e) | 11,709 | 10,079 | |
InMode Ltd. (b)(c) | 349,594 | 16,861 | |
Insulet Corp. (b) | 328,333 | 81,427 | |
Intuitive Surgical, Inc. (b) | 980,238 | 278,564 | |
Outset Medical, Inc. (b) | 241,397 | 8,978 | |
Shockwave Medical, Inc. (b) | 914,366 | 132,556 | |
Tandem Diabetes Care, Inc. (b) | 721,169 | 85,177 | |
986,967 | |||
Health Care Providers & Services - 0.6% | |||
agilon health, Inc. (b) | 672,911 | 11,157 | |
Alignment Healthcare, Inc. (b) | 959,350 | 7,291 | |
Centene Corp. (b) | 192,100 | 14,938 | |
Guardant Health, Inc. (b) | 1,105,588 | 76,894 | |
LifeStance Health Group, Inc. | 2,506,885 | 19,128 | |
Surgery Partners, Inc. (b) | 608,522 | 25,966 | |
UnitedHealth Group, Inc. | 294,523 | 139,183 | |
294,557 | |||
Health Care Technology - 0.1% | |||
Certara, Inc. (b) | 402,074 | 10,747 | |
Doximity, Inc. | 852,371 | 38,843 | |
GoodRx Holdings, Inc. (b) | 87,400 | 2,098 | |
Medlive Technology Co. Ltd. (a) | 2,018,000 | 3,276 | |
MultiPlan Corp. warrants (b)(d) | 138,859 | 56 | |
55,020 | |||
Life Sciences Tools & Services - 0.8% | |||
10X Genomics, Inc. (b) | 335,454 | 32,294 | |
23andMe Holding Co. Class B (a) | 1,837,211 | 8,580 | |
Avantor, Inc. (b) | 1,802,866 | 67,301 | |
Bio-Rad Laboratories, Inc. Class A (b) | 40,495 | 24,286 | |
Danaher Corp. | 626,897 | 179,161 | |
ICON PLC (b) | 99,500 | 26,439 | |
Maravai LifeSciences Holdings, Inc. (b) | 712,794 | 20,614 | |
Nanostring Technologies, Inc. (b) | 306,689 | 10,648 | |
Olink Holding AB ADR (b) | 659,884 | 10,677 | |
Pacific Biosciences of California, Inc. (b) | 277,086 | 3,098 | |
Seer, Inc. (b) | 151,534 | 2,384 | |
Thermo Fisher Scientific, Inc. | 49,077 | 28,528 | |
Veterinary Emergency Group LLC Class A (d)(e)(g) | 288,400 | 9,270 | |
423,280 | |||
Pharmaceuticals - 1.5% | |||
Antengene Corp. (a)(b) | 358,072 | 281 | |
Asymchem Laboratories Tianjin Co. Ltd. (H Shares) (a) | 119,100 | 4,179 | |
Chiasma, Inc. warrants 12/16/24 (b)(e) | 55,391 | 0 | |
Eli Lilly & Co. | 1,400,355 | 343,633 | |
GH Research PLC | 263,955 | 4,482 | |
Intra-Cellular Therapies, Inc. (b) | 627,408 | 29,796 | |
Longboard Pharmaceuticals, Inc. (b) | 184,368 | 774 | |
Nuvation Bio, Inc. (b) | 1,605,687 | 9,795 | |
Zoetis, Inc. Class A | 2,028,528 | 405,280 | |
798,220 | |||
TOTAL HEALTH CARE | 3,106,644 | ||
INDUSTRIALS - 5.0% | |||
Aerospace & Defense - 0.6% | |||
Airbus Group NV (b) | 291,185 | 37,182 | |
Howmet Aerospace, Inc. | 1,329,887 | 41,346 | |
Space Exploration Technologies Corp.: | |||
Class A (b)(d)(e) | 262,745 | 147,137 | |
Class C (b)(d)(e) | 2,783 | 1,558 | |
The Boeing Co. (b) | 391,335 | 78,361 | |
305,584 | |||
Airlines - 0.1% | |||
Delta Air Lines, Inc. (b) | 197,200 | 7,827 | |
JetBlue Airways Corp. (b) | 543,300 | 7,948 | |
Ryanair Holdings PLC sponsored ADR (b) | 293,500 | 32,760 | |
48,535 | |||
Building Products - 0.0% | |||
The AZEK Co., Inc. (b) | 515,557 | 17,029 | |
Commercial Services & Supplies - 0.1% | |||
ACV Auctions, Inc. Class A (b) | 3,272,164 | 43,389 | |
Driven Brands Holdings, Inc. | 29,918 | 845 | |
Li-Cycle Holdings Corp. (b)(c) | 758,934 | 5,753 | |
49,987 | |||
Electrical Equipment - 0.4% | |||
Acuity Brands, Inc. | 735,617 | 140,893 | |
Array Technologies, Inc. (b) | 1,990,957 | 20,985 | |
ESS Tech, Inc. Class A (b) | 401,118 | 2,186 | |
Generac Holdings, Inc. (b) | 23,205 | 6,553 | |
Sunrun, Inc. (b) | 1,042,178 | 27,024 | |
197,641 | |||
Industrial Conglomerates - 0.3% | |||
General Electric Co. | 1,728,349 | 163,294 | |
Machinery - 0.2% | |||
AutoStore Holdings Ltd. (c) | 5,699,040 | 16,087 | |
Deere & Co. | 213,952 | 80,532 | |
96,619 | |||
Professional Services - 0.0% | |||
KBR, Inc. | 83,372 | 3,618 | |
Recruit Holdings Co. Ltd. | 374,380 | 18,505 | |
Sterling Check Corp. | 152,617 | 3,054 | |
YourPeople, Inc. (b)(e) | 2,074,892 | 21 | |
25,198 | |||
Road & Rail - 3.3% | |||
Avis Budget Group, Inc. (b) | 430,042 | 75,765 | |
Bird Global, Inc. (d) | 1,821,129 | 6,429 | |
Bird Global, Inc. | 6,781,848 | 21,546 | |
Bird Global, Inc.: | |||
rights 11/4/26 (b)(e) | 262,923 | 434 | |
rights 11/4/26 (b)(e) | 262,922 | 239 | |
rights 11/4/26 (b)(e) | 262,922 | 124 | |
Class A (b)(c) | 4,570,836 | 16,135 | |
Hertz Global Holdings, Inc. (c) | 2,199,069 | 42,354 | |
Lyft, Inc. (b) | 20,323,060 | 782,844 | |
Uber Technologies, Inc. (b) | 22,506,528 | 841,744 | |
1,787,614 | |||
Transportation Infrastructure - 0.0% | |||
Delhivery Private Ltd. (d)(e) | 2,469,600 | 19,447 | |
TOTAL INDUSTRIALS | 2,710,948 | ||
INFORMATION TECHNOLOGY - 39.4% | |||
Communications Equipment - 0.2% | |||
Arista Networks, Inc. (b) | 852,991 | 106,035 | |
IT Services - 3.5% | |||
Block, Inc. Class A (b) | 1,372,080 | 167,792 | |
CI&T, Inc. Class A | 727,842 | 9,214 | |
Digitalocean Holdings, Inc. (b)(c) | 2,356,879 | 135,143 | |
Endava PLC ADR (b) | 275,867 | 33,551 | |
Flywire Corp. (b)(c) | 1,339,845 | 37,770 | |
MasterCard, Inc. Class A | 556,400 | 214,982 | |
MongoDB, Inc. Class A (b) | 247,557 | 100,288 | |
Okta, Inc. (b) | 572,200 | 113,233 | |
PayPal Holdings, Inc. (b) | 2,767,621 | 475,865 | |
Shift4 Payments, Inc. (b) | 765,664 | 40,366 | |
Shopify, Inc. Class A (b) | 214,036 | 206,594 | |
TaskUs, Inc. | 787,552 | 25,202 | |
TDCX, Inc. ADR | 806,654 | 13,221 | |
Thoughtworks Holding, Inc. | 599,278 | 12,837 | |
Twilio, Inc. Class A (b) | 1,084,488 | 223,535 | |
Visa, Inc. Class A | 262,000 | 59,257 | |
1,868,850 | |||
Semiconductors & Semiconductor Equipment - 12.1% | |||
Advanced Micro Devices, Inc. (b) | 617,489 | 70,548 | |
Allegro MicroSystems LLC (b) | 258,900 | 7,348 | |
ASML Holding NV | 84,096 | 56,950 | |
Cirrus Logic, Inc. (b) | 722,899 | 64,656 | |
GlobalFoundries, Inc. | 2,671,768 | 131,825 | |
Lam Research Corp. | 68,648 | 40,497 | |
Marvell Technology, Inc. | 24,306,542 | 1,735,487 | |
Microchip Technology, Inc. | 209,738 | 16,251 | |
NVIDIA Corp. | 12,273,845 | 3,005,374 | |
NXP Semiconductors NV | 3,689,574 | 757,986 | |
onsemi (b) | 1,872,876 | 110,500 | |
Qualcomm, Inc. | 634,758 | 111,565 | |
Silergy Corp. | 91,000 | 12,310 | |
Synaptics, Inc. (b) | 172,414 | 36,267 | |
Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR | 697,168 | 85,494 | |
Teradyne, Inc. | 1,652,114 | 194,008 | |
Wolfspeed, Inc. (b)(c) | 342,297 | 32,258 | |
Xilinx, Inc. | 291,200 | 56,362 | |
6,525,686 | |||
Software - 13.2% | |||
Adobe, Inc. (b) | 1,155,814 | 617,551 | |
Amplitude, Inc. (b) | 1,107,464 | 43,534 | |
AppLovin Corp. (b)(c) | 955,970 | 61,584 | |
Atlassian Corp. PLC (b) | 267,315 | 86,701 | |
Atom Tickets LLC (b)(d)(e)(g) | 1,204,239 | 0 | |
AvidXchange Holdings, Inc. (c) | 726,192 | 7,523 | |
Braze, Inc. (c) | 49,697 | 2,486 | |
Cadence Design Systems, Inc. (b) | 384,692 | 58,527 | |
Cipher Mining, Inc. (b) | 935,769 | 2,845 | |
Confluent, Inc. | 481,931 | 31,513 | |
Coupa Software, Inc. (b) | 574,972 | 77,201 | |
Crowdstrike Holdings, Inc. (b) | 429,065 | 77,506 | |
Datadog, Inc. Class A (b) | 214,422 | 31,329 | |
DoubleVerify Holdings, Inc. (b) | 2,943,164 | 81,408 | |
EngageSmart, Inc. (c) | 1,811,527 | 39,600 | |
Epic Games, Inc. (b)(d)(e) | 6,131 | 5,252 | |
Expensify, Inc. (c) | 755,523 | 22,099 | |
Freshworks, Inc. (c) | 580,688 | 12,630 | |
GitLab, Inc. (c) | 232,007 | 14,851 | |
HashiCorp, Inc. | 196,200 | 13,026 | |
HubSpot, Inc. (b) | 424,730 | 207,608 | |
Intuit, Inc. | 393,085 | 218,253 | |
Microsoft Corp. | 12,574,239 | 3,910,337 | |
Pine Labs Private Ltd. (d)(e) | 9,912 | 6,040 | |
Qualtrics International, Inc. | 1,207,971 | 35,357 | |
Riskified Ltd.: | |||
Class A (a) | 462,112 | 3,221 | |
Class B (b) | 924,224 | 6,442 | |
Salesforce.com, Inc. (b) | 3,697,910 | 860,245 | |
Samsara, Inc. (c) | 900,300 | 16,295 | |
SentinelOne, Inc. (c) | 539,820 | 24,157 | |
ServiceNow, Inc. (b) | 203,244 | 119,056 | |
Stripe, Inc. Class B (b)(d)(e)�� | 173,600 | 6,293 | |
Tanium, Inc. Class B (b)(d)(e) | 554,900 | 6,587 | |
The Trade Desk, Inc. (b) | 706,999 | 49,165 | |
UiPath, Inc. Class A (b)(c) | 1,560,699 | 57,012 | |
Volue A/S (b) | 2,596,332 | 15,476 | |
Workday, Inc. Class A (b) | 351,533 | 88,941 | |
Zoom Video Communications, Inc. Class A (b) | 1,327,293 | 204,775 | |
7,122,426 | |||
Technology Hardware, Storage & Peripherals - 10.4% | |||
Apple, Inc. | 32,219,275 | 5,631,285 | |
TOTAL INFORMATION TECHNOLOGY | 21,254,282 | ||
MATERIALS - 1.0% | |||
Chemicals - 0.6% | |||
CF Industries Holdings, Inc. | 781,346 | 53,811 | |
Corteva, Inc. | 418,386 | 20,116 | |
LG Chemical Ltd. | 40,020 | 21,450 | |
Nutrien Ltd. | 1,911,138 | 133,478 | |
Olin Corp. | 68,192 | 3,455 | |
The Mosaic Co. | 2,570,955 | 102,710 | |
335,020 | |||
Metals & Mining - 0.4% | |||
Freeport-McMoRan, Inc. | 5,310,515 | 197,657 | |
TOTAL MATERIALS | 532,677 | ||
REAL ESTATE - 0.1% | |||
Equity Real Estate Investment Trusts (REITs) - 0.1% | |||
Simon Property Group, Inc. | 427,105 | 62,870 | |
TOTAL COMMON STOCKS | |||
(Cost $24,977,098) | 52,489,937 | ||
Preferred Stocks - 2.1% | |||
Convertible Preferred Stocks - 1.9% | |||
COMMUNICATION SERVICES - 0.2% | |||
Diversified Telecommunication Services - 0.1% | |||
Starry, Inc.: | |||
Series C (b)(d) | 5,833,836 | 8,896 | |
Series D (b)(d) | 6,810,656 | 10,386 | |
Series E3 (d) | 3,377,325 | 5,150 | |
24,432 | |||
Interactive Media & Services - 0.1% | |||
Reddit, Inc.: | |||
Series B (b)(d)(e) | 524,232 | 32,395 | |
Series E (d)(e) | 43,813 | 2,707 | |
Series F (d)(e) | 457,142 | 28,249 | |
63,351 | |||
TOTAL COMMUNICATION SERVICES | 87,783 | ||
CONSUMER DISCRETIONARY - 0.4% | |||
Automobiles - 0.0% | |||
Rad Power Bikes, Inc.: | |||
Series A (d)(e) | 120,997 | 1,160 | |
Series C (d)(e) | 476,111 | 4,563 | |
Series D (d)(e) | 867,000 | 8,309 | |
14,032 | |||
Hotels, Restaurants & Leisure - 0.0% | |||
MOD Super Fast Pizza Holdings LLC: | |||
Series 3 (b)(d)(e)(g) | 68,723 | 15,020 | |
Series 4 (b)(d)(e)(g) | 6,272 | 1,295 | |
Series 5 (b)(d)(e)(g) | 25,187 | 4,906 | |
21,221 | |||
Internet & Direct Marketing Retail - 0.3% | |||
GoBrands, Inc.: | |||
Series G (d)(e) | 166,200 | 64,567 | |
Series H (d)(e) | 104,029 | 40,414 | |
Instacart, Inc.: | |||
Series H (b)(d)(e) | 245,379 | 22,997 | |
Series I (d)(e) | 118,846 | 11,138 | |
139,116 | |||
Textiles, Apparel & Luxury Goods - 0.1% | |||
Algolia SAS Series D (d)(e) | 276,495 | 8,086 | |
CelLink Corp. Series D (d)(e) | 771,513 | 16,066 | |
Discord, Inc. Series I (d)(e) | 6,100 | 3,359 | |
27,511 | |||
TOTAL CONSUMER DISCRETIONARY | 201,880 | ||
CONSUMER STAPLES - 0.2% | |||
Food & Staples Retailing - 0.0% | |||
Blink Health, Inc. Series C (b)(d)(e) | 170,685 | 6,517 | |
Food Products - 0.0% | |||
AgBiome LLC Series C (b)(d)(e) | 1,091,300 | 6,469 | |
Bowery Farming, Inc. Series C1 (d)(e) | 161,262 | 9,716 | |
16,185 | |||
Tobacco - 0.2% | |||
JUUL Labs, Inc.: | |||
Series C (b)(d)(e) | 2,570,575 | 111,357 | |
Series D (b)(d)(e) | 13,822 | 599 | |
Series E (b)(d)(e) | 14,959 | 648 | |
112,604 | |||
TOTAL CONSUMER STAPLES | 135,306 | ||
HEALTH CARE - 0.0% | |||
Pharmaceuticals - 0.0% | |||
Castle Creek Pharmaceutical Holdings, Inc. Series B (b)(d)(e) | 3,301 | 1,235 | |
INDUSTRIALS - 0.4% | |||
Aerospace & Defense - 0.4% | |||
ABL Space Systems: | |||
Series B (d)(e) | 270,130 | 18,368 | |
Series B2 (d)(e) | 141,569 | 9,626 | |
Relativity Space, Inc. Series E (d)(e) | 2,480,614 | 56,645 | |
Space Exploration Technologies Corp.: | |||
Series G (b)(d)(e) | 97,277 | 54,475 | |
Series H (b)(d)(e) | 25,767 | 14,430 | |
Series N (b)(d)(e) | 79,406 | 44,467 | |
198,011 | |||
Construction & Engineering - 0.0% | |||
Beta Technologies, Inc. Series A (d)(e) | 101,010 | 7,401 | |
TOTAL INDUSTRIALS | 205,412 | ||
INFORMATION TECHNOLOGY - 0.6% | |||
Communications Equipment - 0.1% | |||
Meesho Series F (d)(e) | 546,589 | 41,908 | |
Xsight Labs Ltd. Series D (d)(e) | 1,192,000 | 11,896 | |
53,804 | |||
Electronic Equipment & Components - 0.0% | |||
Enevate Corp. Series E (d)(e) | 12,084,432 | 13,398 | |
IT Services - 0.1% | |||
AppNexus, Inc. Series E (Escrow) (b)(d)(e) | 646,522 | 20 | |
ByteDance Ltd. Series E1 (b)(d)(e) | 293,038 | 43,563 | |
Yanka Industries, Inc. Series F (d)(e) | 508,854 | 16,221 | |
59,804 | |||
Semiconductors & Semiconductor Equipment - 0.1% | |||
Astera Labs, Inc. Series C (d)(e) | 1,572,300 | 6,352 | |
GaN Systems, Inc.: | |||
Series F1 (d)(e) | 661,660 | 5,611 | |
Series F2 (d)(e) | 349,385 | 2,963 | |
SiMa.ai Series B (d)(e) | 2,821,200 | 18,422 | |
Tenstorrent, Inc. Series C1 (d)(e) | 77,800 | 5,838 | |
39,186 | |||
Software - 0.3% | |||
Bolt Technology OU Series E (d)(e) | 170,267 | 43,996 | |
Databricks, Inc.: | |||
Series G (d)(e) | 145,986 | 32,183 | |
Series H (d)(e) | 91,308 | 20,129 | |
Dataminr, Inc. Series D (b)(d)(e) | 277,250 | 9,454 | |
Delphix Corp. Series D (b)(d)(e) | 675,445 | 4,931 | |
Jet.Com, Inc. Series B1 (Escrow) (b)(d)(e) | 2,928,086 | 0 | |
Malwarebytes Corp. Series B (b)(d)(e) | 1,056,193 | 24,208 | |
Mountain Digital, Inc. Series D (d)(e) | 524,265 | 12,040 | |
Nuvia, Inc. Series B (b)(d) | 1,606,942 | 1,313 | |
Skyryse, Inc. Series B (d)(e) | 560,000 | 13,821 | |
Stripe, Inc. Series H (d)(e) | 73,100 | 2,650 | |
164,725 | |||
TOTAL INFORMATION TECHNOLOGY | 330,917 | ||
MATERIALS - 0.1% | |||
Metals & Mining - 0.1% | |||
Diamond Foundry, Inc. Series C (d)(e) | 2,271,329 | 62,439 | |
UTILITIES - 0.0% | |||
Independent Power and Renewable Electricity Producers - 0.0% | |||
Redwood Materials Series C (d)(e) | 341,408 | 16,184 | |
TOTAL CONVERTIBLE PREFERRED STOCKS | 1,041,156 | ||
Nonconvertible Preferred Stocks - 0.2% | |||
CONSUMER DISCRETIONARY - 0.1% | |||
Automobiles - 0.1% | |||
Neutron Holdings, Inc.: | |||
Series 1C (b)(d)(e) | 50,654,200 | 3,546 | |
Series 1D (b)(d)(e) | 85,315,542 | 5,972 | |
Waymo LLC Series A2 (b)(d)(e) | 81,316 | 7,458 | |
16,976 | |||
HEALTH CARE - 0.0% | |||
Pharmaceuticals - 0.0% | |||
Castle Creek Pharmaceutical Holdings, Inc. Series A4 (b)(d)(e) | 29,758 | 11,129 | |
INFORMATION TECHNOLOGY - 0.1% | |||
IT Services - 0.0% | |||
Gupshup, Inc. (d)(e) | 709,497 | 16,223 | |
Software - 0.1% | |||
Pine Labs Private Ltd.: | |||
Series 1 (d)(e) | 23,689 | 14,434 | |
Series A (d)(e) | 5,920 | 3,607 | |
Series B (d)(e) | 6,440 | 3,924 | |
Series B2 (d)(e) | 5,209 | 3,174 | |
Series C (d)(e) | 9,690 | 5,904 | |
Series C1 (d)(e) | 2,041 | 1,244 | |
Series D (d)(e) | 2,183 | 1,330 | |
33,617 | |||
TOTAL INFORMATION TECHNOLOGY | 49,840 | ||
TOTAL NONCONVERTIBLE PREFERRED STOCKS | 77,945 | ||
TOTAL PREFERRED STOCKS | |||
(Cost $806,970) | 1,119,101 | ||
Principal Amount (000s) | Value (000s) | ||
Convertible Bonds - 0.0% | |||
CONSUMER DISCRETIONARY - 0.0% | |||
Automobiles - 0.0% | |||
Neutron Holdings, Inc.: | |||
0% 10/27/25 (d)(e) | 20,045 | 20,045 | |
4% 5/22/27 (d)(e) | 2,433 | 2,433 | |
4% 6/12/27 (d)(e) | 647 | 647 | |
23,125 | |||
HEALTH CARE - 0.0% | |||
Pharmaceuticals - 0.0% | |||
Castle Creek Pharmaceutical Holdings, Inc. 0.13% (d)(e)(h) | 917 | 917 | |
TOTAL CONVERTIBLE BONDS | |||
(Cost $24,042) | 24,042 | ||
Preferred Securities - 0.1% | |||
CONSUMER DISCRETIONARY - 0.0% | |||
Internet & Direct Marketing Retail - 0.0% | |||
Circle Internet Financial Ltd. 0% (d)(h) | 20,193 | 22,721 | |
INFORMATION TECHNOLOGY - 0.1% | |||
Electronic Equipment & Components - 0.0% | |||
Enevate Corp. 0% 1/29/23 (d)(e) | 5,145 | 5,145 | |
Semiconductors & Semiconductor Equipment - 0.1% | |||
GaN Systems, Inc. 0% (d)(e)(h) | 15,508 | 15,508 | |
Tenstorrent, Inc. 0% (d)(e)(h) | 4,320 | 4,320 | |
19,828 | |||
TOTAL INFORMATION TECHNOLOGY | 24,973 | ||
TOTAL PREFERRED SECURITIES | |||
(Cost $45,166) | 47,694 | ||
Shares | Value (000s) | ||
Money Market Funds - 1.3% | |||
Fidelity Cash Central Fund 0.08% (i) | 167,728,054 | 167,762 | |
Fidelity Securities Lending Cash Central Fund 0.08% (i)(j) | 533,023,451 | 533,077 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $700,839) | 700,839 | ||
TOTAL INVESTMENT IN SECURITIES - 100.9% | |||
(Cost $26,554,115) | 54,381,613 | ||
NET OTHER ASSETS (LIABILITIES) - (0.9)% | (495,157) | ||
NET ASSETS - 100% | $53,886,456 |
Values shown as $0 in the Schedule of Investments may reflect amounts less than $500.
Legend
(a) 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 $152,055,000 or 0.3% of net assets.
(b) Non-income producing
(c) Security or a portion of the security is on loan at period end.
(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 $1,811,704,000 or 3.4% of net assets.
(e) Level 3 security
(f) Affiliated company
(g) Investment is owned by a wholly-owned subsidiary (Subsidiary) that is treated as a corporation for U.S. tax purposes.
(h) Security is perpetual in nature with no stated maturity date.
(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) |
ABL Space Systems Series B | 3/24/21 | $12,165 |
ABL Space Systems Series B2 | 10/22/21 | $9,626 |
AgBiome LLC Series C | 6/29/18 | $6,912 |
Algolia SAS Series D | 7/23/21 | $8,086 |
Ant International Co. Ltd. Class C | 5/16/18 | $24,503 |
AppNexus, Inc. Series E (Escrow) | 8/1/14 | $0 |
Astera Labs, Inc. Series C | 8/24/21 | $5,286 |
Atom Tickets LLC | 8/15/17 | $7,000 |
BARK, Inc. | 12/17/20 | $19,491 |
Beta Technologies, Inc. Series A | 4/9/21 | $7,401 |
Bird Global, Inc. | 5/11/21 | $18,211 |
Blink Health, Inc. Series A1 | 12/30/20 | $1,385 |
Blink Health, Inc. Series C | 11/7/19 - 7/14/21 | $6,515 |
Bolt Technology OU Series E | 1/3/22 | $44,235 |
Bowery Farming, Inc. Series C1 | 5/18/21 | $9,716 |
ByteDance Ltd. Series E1 | 11/18/20 | $32,109 |
Castle Creek Pharmaceutical Holdings, Inc. Series A4 | 9/29/16 | $9,831 |
Castle Creek Pharmaceutical Holdings, Inc. Series B | 10/9/18 | $1,360 |
Castle Creek Pharmaceutical Holdings, Inc. 0.13% | 6/28/21 | $917 |
CelLink Corp. Series D | 1/20/22 | $16,066 |
Cibus Corp. Series C | 2/16/18 | $6,396 |
Cibus Corp. Series D | 5/10/19 | $2,146 |
Cibus Corp. Series E | 6/23/21 | $3,695 |
Circle Internet Financial Ltd. 0% | 5/11/21 | $20,193 |
Databricks, Inc. Series G | 2/1/21 | $25,893 |
Databricks, Inc. Series H | 8/31/21 | $20,129 |
Dataminr, Inc. Series D | 3/6/15 | $3,535 |
Delhivery Private Ltd. | 5/20/21 | $12,055 |
Delphix Corp. Series D | 7/10/15 | $6,079 |
Diamond Foundry, Inc. Series C | 3/15/21 | $54,512 |
Discord, Inc. Series I | 9/15/21 | $3,359 |
Endeavor Group Holdings, Inc. Class A | 3/29/21 | $18,466 |
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. Class A | 8/13/20 - 12/15/21 | $60,327 |
FSN E-Commerce Ventures Private Ltd. | 10/7/20 - 10/26/20 | $16,851 |
GaN Systems, Inc. Series F1 | 11/30/21 | $5,611 |
GaN Systems, Inc. Series F2 | 11/30/21 | $2,963 |
GaN Systems, Inc. 0% | 11/30/21 | $15,508 |
GoBrands, Inc. Series G | 3/2/21 | $41,503 |
GoBrands, Inc. Series H | 7/22/21 | $40,414 |
Gupshup, Inc. | 6/8/21 | $16,223 |
Il Makiage Ltd. | 1/6/22 | $10,079 |
Instacart, Inc. Series H | 11/13/20 | $14,723 |
Instacart, Inc. Series I | 2/26/21 | $14,856 |
Jet.Com, Inc. Series B1 (Escrow) | 3/19/18 | $0 |
JUUL Labs, Inc. Class A | 12/20/17 | $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 | $321 |
Malwarebytes Corp. Series B | 12/21/15 | $10,958 |
Meesho Series F | 9/21/21 | $41,908 |
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 |
Mountain Digital, Inc. Series D | 11/5/21 | $12,040 |
MultiPlan Corp. warrants | 10/8/20 | $0 |
Neutron Holdings, Inc. | 2/4/21 | $72 |
Neutron Holdings, Inc. Series 1C | 7/3/18 | $9,262 |
Neutron Holdings, Inc. Series 1D | 1/25/19 | $20,689 |
Neutron Holdings, Inc. 0% 10/27/25 | 10/29/21 | $20,045 |
Neutron Holdings, Inc. 4% 5/22/27 | 6/4/20 | $2,433 |
Neutron Holdings, Inc. 4% 6/12/27 | 6/12/20 | $647 |
Nuvia, Inc. Series B | 3/16/21 | $1,313 |
Pine Labs Private Ltd. | 6/30/21 | $3,696 |
Pine Labs Private Ltd. Series 1 | 6/30/21 | $8,833 |
Pine Labs Private Ltd. Series A | 6/30/21 | $2,207 |
Pine Labs Private Ltd. Series B | 6/30/21 | $2,401 |
Pine Labs Private Ltd. Series B2 | 6/30/21 | $1,942 |
Pine Labs Private Ltd. Series C | 6/30/21 | $3,613 |
Pine Labs Private Ltd. Series C1 | 6/30/21 | $761 |
Pine Labs Private Ltd. Series D | 6/30/21 | $814 |
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 |
Rad Power Bikes, Inc. Series D | 9/17/21 | $8,309 |
Rapyd Financial Network 2016 Ltd. | 3/30/21 | $15,000 |
Reddit, Inc. Series B | 7/26/17 | $7,442 |
Reddit, Inc. Series E | 5/18/21 | $1,861 |
Reddit, Inc. Series F | 8/11/21 | $28,249 |
Redwood Materials Series C | 5/28/21 | $16,184 |
Relativity Space, Inc. Series E | 5/27/21 | $56,645 |
SiMa.ai Series B | 5/10/21 | $14,465 |
Skyryse, Inc. Series B | 10/21/21 | $13,821 |
Sonder Holdings, Inc. | 4/29/21 - 10/27/21 | $9,910 |
Space Exploration Technologies Corp. Class A | 10/16/15 - 2/16/21 | $31,999 |
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 |
Starry, Inc. Series E3 | 3/31/21 | $5,674 |
Stripe, Inc. Class B | 5/18/21 | $6,966 |
Stripe, Inc. Series H | 3/15/21 | $2,933 |
Tanium, Inc. Class B | 4/21/17 | $2,755 |
Tenstorrent, Inc. Series C1 | 4/23/21 | $4,626 |
Tenstorrent, Inc. 0% | 4/23/21 | $4,320 |
Tory Burch LLC | 5/14/15 | $20,890 |
Veterinary Emergency Group LLC Class A | 9/16/21 - 11/30/21 | $9,270 |
Waymo LLC Series A2 | 5/8/20 | $6,982 |
WeWork, Inc. | 3/25/21 | $36,971 |
Xsight Labs Ltd. Series D | 2/16/21 | $9,531 |
Yanka Industries, Inc. Series F | 4/8/21 | $16,221 |
Zomato Ltd. | 12/9/20 - 2/10/21 | $18,138 |
Affiliated Central Funds
Fiscal year to date information regarding the Fund's investments in Fidelity Central Funds, including the ownership percentage, is presented below.
Fund (Amounts in thousands) | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Realized Gain/Loss | Change in Unrealized appreciation (depreciation) | Value, end of period | % ownership, end of period |
Fidelity Cash Central Fund 0.08% | $21,837 | $1,594,466 | $1,448,541 | $7 | $-- | $-- | $167,762 | 0.3% |
Fidelity Securities Lending Cash Central Fund 0.08% | 726,752 | 2,201,581 | 2,395,256 | 2,652 | -- | -- | 533,077 | 1.7% |
Total | $748,589 | $3,796,047 | $3,843,797 | $2,659 | $-- | $-- | $700,839 |
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 |
American Eagle Outfitters, Inc. | $284,750 | $17,879 | $1,626 | $3,166 | $1,041 | $(101,014) | $201,030 |
BARK, Inc. | -- | 19,491 | -- | -- | -- | (12,143) | 7,348 |
BARK, Inc. | 15,731 | 15,341 | 19,564 | -- | (29) | (3,684) | 7,795 |
Switchback II Corp. Class A | -- | 27,269 | 17 | -- | -- | -- | -- |
The Real Good Food Co. LLC Class B unit | -- | -- | -- | -- | -- | (5,369) | 6,747 |
Tupperware Brands Corp. | 91,752 | -- | 76,724 | -- | (18,415) | 3,387 | -- |
Total | $392,233 | $79,980 | $97,931 | $3,166 | $(17,403) | $(118,823) | $222,920 |
(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, 2022, 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 | $7,888,849 | $7,664,783 | $160,715 | $63,351 |
Consumer Discretionary | 14,933,978 | 13,799,281 | 775,322 | 359,375 |
Consumer Staples | 441,937 | 296,729 | 6,747 | 138,461 |
Energy | 1,220,942 | 922,117 | 298,825 | -- |
Financials | 778,755 | 678,189 | 63,923 | 36,643 |
Health Care | 3,119,008 | 3,068,456 | 7,792 | 42,760 |
Industrials | 2,916,360 | 2,448,668 | 93,320 | 374,372 |
Information Technology | 21,635,039 | 21,203,637 | 27,786 | 403,616 |
Materials | 595,116 | 511,227 | 21,450 | 62,439 |
Real Estate | 62,870 | 62,870 | -- | -- |
Utilities | 16,184 | -- | -- | 16,184 |
Corporate Bonds | 24,042 | -- | -- | 24,042 |
Preferred Securities | 47,694 | -- | 22,721 | 24,973 |
Money Market Funds | 700,839 | 700,839 | -- | -- |
Total Investments in Securities: | $54,381,613 | $51,356,796 | $1,478,601 | $1,546,216 |
Net unrealized depreciation on unfunded commitments | $(179) | $-- | $(179) | $-- |
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 | $1,402,452 |
Net Realized Gain (Loss) on Investment Securities | -- |
Net Unrealized Gain (Loss) on Investment Securities | 129,723 |
Cost of Purchases | 311,494 |
Proceeds of Sales | (20,222) |
Amortization/Accretion | -- |
Transfers into Level 3 | 877 |
Transfers out of Level 3 | (278,108) |
Ending Balance | $1,546,216 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2022 | $129,723 |
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.
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, 2022 (Unaudited) | |
Assets | ||
Investment in securities, at value (including securities loaned of $557,679) — See accompanying schedule: Unaffiliated issuers (cost $25,639,959) | $53,457,854 | |
Fidelity Central Funds (cost $700,839) | 700,839 | |
Other affiliated issuers (cost $213,317) | 222,920 | |
Total Investment in Securities (cost $26,554,115) | $54,381,613 | |
Restricted cash | 2,173 | |
Foreign currency held at value (cost $5,364) | 5,364 | |
Receivable for investments sold | 192,183 | |
Receivable for fund shares sold | 195,665 | |
Dividends receivable | 9,142 | |
Interest receivable | 204 | |
Distributions receivable from Fidelity Central Funds | 570 | |
Prepaid expenses | 44 | |
Other receivables | 1,007 | |
Total assets | 54,787,965 | |
Liabilities | ||
Payable for investments purchased | $220,425 | |
Unrealized depreciation on unfunded commitments | 179 | |
Payable for fund shares redeemed | 83,482 | |
Accrued management fee | 30,740 | |
Other affiliated payables | 5,532 | |
Other payables and accrued expenses | 28,112 | |
Collateral on securities loaned | 533,039 | |
Total liabilities | 901,509 | |
Net Assets | $53,886,456 | |
Net Assets consist of: | ||
Paid in capital | $25,615,070 | |
Total accumulated earnings (loss) | 28,271,386 | |
Net Assets | $53,886,456 | |
Net Asset Value and Maximum Offering Price | ||
Blue Chip Growth: | ||
Net Asset Value, offering price and redemption price per share ($46,514,592 ÷ 285,928 shares) | $162.68 | |
Class K: | ||
Net Asset Value, offering price and redemption price per share ($7,371,864 ÷ 45,153 shares) | $163.26 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Amounts in thousands | Six months ended January 31, 2022 (Unaudited) | |
Investment Income | ||
Dividends (including $3,166 earned from other affiliated issuers) | $107,984 | |
Interest | 95 | |
Income from Fidelity Central Funds (including $2,652 from security lending) | 2,659 | |
Total income | 110,738 | |
Expenses | ||
Management fee | ||
Basic fee | $154,298 | |
Performance adjustment | 37,747 | |
Transfer agent fees | 31,823 | |
Accounting fees | 1,273 | |
Custodian fees and expenses | 452 | |
Independent trustees' fees and expenses | 103 | |
Registration fees | 449 | |
Audit | 89 | |
Legal | 43 | |
Interest | 46 | |
Miscellaneous | 103 | |
Total expenses before reductions | 226,426 | |
Expense reductions | (910) | |
Total expenses after reductions | 225,516 | |
Net investment income (loss) | (114,778) | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 1,485,979 | |
Affiliated issuers | (17,403) | |
Foreign currency transactions | 162 | |
Total net realized gain (loss) | 1,468,738 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers (net of increase in deferred foreign taxes of $13,556) | (4,518,636) | |
Affiliated issuers | (118,823) | |
Unfunded commitments | 16,981 | |
Assets and liabilities in foreign currencies | (3) | |
Total change in net unrealized appreciation (depreciation) | (4,620,481) | |
Net gain (loss) | (3,151,743) | |
Net increase (decrease) in net assets resulting from operations | $(3,266,521) |
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, 2022 (Unaudited) | Year ended July 31, 2021 |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $(114,778) | $(208,750) |
Net realized gain (loss) | 1,468,738 | 6,541,185 |
Change in net unrealized appreciation (depreciation) | (4,620,481) | 11,099,412 |
Net increase (decrease) in net assets resulting from operations | (3,266,521) | 17,431,847 |
Distributions to shareholders | (4,919,349) | (2,930,025) |
Share transactions - net increase (decrease) | 5,119,059 | 4,804,160 |
Total increase (decrease) in net assets | (3,066,811) | 19,305,982 |
Net Assets | ||
Beginning of period | 56,953,267 | 37,647,285 |
End of period | $53,886,456 | $56,953,267 |
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, | |||||
2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $187.79 | $138.12 | $103.05 | $99.75 | $83.20 | $69.52 |
Income from Investment Operations | ||||||
Net investment income (loss)A,B | (.37) | (.73) | (.17) | (.04) | .11C | .11 |
Net realized and unrealized gain (loss) | (8.71) | 60.84 | 39.23 | 8.65 | 20.20 | 16.30 |
Total from investment operations | (9.08) | 60.11 | 39.06 | 8.61 | 20.31 | 16.41 |
Distributions from net investment income | – | – | – | (.11) | (.08) | (.15) |
Distributions from net realized gain | (16.03) | (10.44) | (3.99) | (5.20) | (3.68) | (2.58) |
Total distributions | (16.03) | (10.44) | (3.99) | (5.31) | (3.76) | (2.73) |
Net asset value, end of period | $162.68 | $187.79 | $138.12 | $103.05 | $99.75 | $83.20 |
Total ReturnD,E | (5.59)% | 45.70% | 39.45% | 9.09% | 25.21% | 24.48% |
Ratios to Average Net AssetsB,F,G | ||||||
Expenses before reductions | .78%H | .79% | .79% | .80% | .72% | .70% |
Expenses net of fee waivers, if any | .78%H | .79% | .79% | .80% | .72% | .70% |
Expenses net of all reductions | .78%H | .78% | .78% | .80% | .72% | .69% |
Net investment income (loss) | (.40)%H | (.44)% | (.16)% | (.04)% | .12%C | .15% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $46,515 | $48,318 | $31,023 | $23,023 | $20,714 | $16,993 |
Portfolio turnover rateI | 36%H,J | 41%J | 49%J | 45%J | 41%J | 43%J |
A Calculated based on average shares outstanding during the period.
B Net investment income (loss) is affected by the timing of the declaration of dividends by any underlying mutual funds or exchange-traded funds (ETFs). Net investment income (loss) of any such underlying funds is not included in the Fund's net investment income (loss) ratio.
C 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%.
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 Blue Chip Growth Fund Class K
Six months ended (Unaudited) January 31, | Years endedJuly 31, | |||||
2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $188.45 | $138.50 | $103.24 | $99.92 | $83.34 | $69.67 |
Income from Investment Operations | ||||||
Net investment income (loss)A,B | (.30) | (.60) | (.08) | .05 | .20C | .19 |
Net realized and unrealized gain (loss) | (8.74) | 61.04 | 39.33 | 8.66 | 20.22 | 16.32 |
Total from investment operations | (9.04) | 60.44 | 39.25 | 8.71 | 20.42 | 16.51 |
Distributions from net investment income | – | – | – | (.19) | (.16) | (.27) |
Distributions from net realized gain | (16.15) | (10.49) | (3.99) | (5.20) | (3.68) | (2.58) |
Total distributions | (16.15) | (10.49) | (3.99) | (5.39) | (3.84) | (2.84)D |
Net asset value, end of period | $163.26 | $188.45 | $138.50 | $103.24 | $99.92 | $83.34 |
Total ReturnE,F | (5.55)% | 45.83% | 39.57% | 9.20% | 25.33% | 24.63% |
Ratios to Average Net AssetsB,G,H | ||||||
Expenses before reductions | .70%I | .71% | .70% | .70% | .62% | .59% |
Expenses net of fee waivers, if any | .70%I | .71% | .69% | .70% | .62% | .59% |
Expenses net of all reductions | .70%I | .70% | .69% | .70% | .62% | .58% |
Net investment income (loss) | (.32)%I | (.36)% | (.07)% | .05% | .22%C | .26% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $7,372 | $8,635 | $6,625 | $5,316 | $5,669 | $5,665 |
Portfolio turnover rateJ | 36%I,K | 41%K | 49%K | 45%K | 41%K | 43%K |
A Calculated based on average shares outstanding during the period.
B Net investment income (loss) is affected by the timing of the declaration of dividends by any underlying mutual funds or exchange-traded funds (ETFs). Net investment income (loss) of any such underlying funds is not included in the Fund's net investment income (loss) ratio.
C 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%.
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).
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, 2022
(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.
Funds may invest 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 Schedule of Investments lists any Fidelity Central Funds held as an investment as of period end, but does not include the underlying holdings of each Fidelity Central Fund. An investing fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
Based on its investment objective, each Fidelity Central Fund may invest or participate in various investment vehicles or strategies that are similar to those of the investing fund. These strategies are consistent with the investment objectives of the investing fund and may involve certain economic risks which may cause a decline in value of each of the Fidelity Central Funds and thus a decline in the value of the investing fund.
Fidelity Central Fund | Investment Manager | Investment Objective | Investment Practices | Expense Ratio(a) |
Fidelity Money Market Central Funds | Fidelity Management & Research Company LLC (FMR) | Each fund seeks to obtain a high level of current income consistent with the preservation of capital and liquidity. | Short-term Investments | Less than .005% |
(a) Expenses expressed as a percentage of average net assets and are as of each underlying Central Fund's most recent annual or semi-annual shareholder report.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds which contain the significant accounting policies (including investment valuation policies) of those funds, and are not covered by the Report of Independent Registered Public Accounting Firm, are available on the Securities and Exchange Commission 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 Fund's Schedule of Investments lists any underlying mutual funds or exchange-traded funds (ETFs) but does not include the underlying holdings of these funds. 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 – Unadjusted 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 | $ 1,497,201 | Market comparable | Discount rate | 40.0% - 75.0% / 40.1% | Decrease |
Enterprise value/EBITDA multiple (EV/EBITDA) | 9.7 - 21.2 / 16.8 | Increase | |||
Enterprise value/Sales multiple (EV/S) | 3.0 - 21.0 / 8.3 | Increase | |||
Price/Earnings multiple (P/E) | 7.1 | Increase | |||
Enterprise value/Gross profit (EV/GP) | 12.5 | Increase | |||
Discount for lack of marketability | 10.0% - 15.0% / 12.7% | Decrease | |||
Premium rate | 25.0% - 34.0% / 29.9% | Increase | |||
Liquidity preference | $194.79 - $218.56 / $206.61 | Increase | |||
Recovery value | Recovery value | 0.0% - 5.3% / 3.5% | Increase | ||
Discount for lack of marketability | 5.0% | Decrease | |||
Market approach | Transaction price | $1.11 - $860.82 / $252.50 | Increase | ||
Discount rate | 9.2% | Decrease | |||
Discount for lack of marketability | 10.0% | Decrease | |||
Premium rate | 20.2% - 27.4% / 25.4% | Increase | |||
Discounted cash flow | Weighted average cost of capital (WACC) | 45.0% | Decrease | ||
Growth rate | 5.0% | Increase | |||
Recovery value | Recovery value | 0.5% - 1.7% / 1.2% | Increase | ||
Discount for lack of marketability | 5.0% | Decrease | |||
Corporate Bonds | $24,042 | Market approach | Transaction price | $100.00 | Increase |
Preferred Securities | $24,973 | 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, 2022, 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. Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of a fund include an amount in addition to trade execution, which may be rebated back to a fund. Any such rebates are included in net realized gain (loss) on investments in the Statement of Operations. 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. Funds may file withholding tax reclaims in certain jurisdictions to recover a portion of amounts previously withheld. Any withholding tax reclaims income is included in the Statement of Operations in dividends. Any receivables for withholding tax reclaims are included in the Statement of Assets and Liabilities in dividends receivable.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of a 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 a fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred, as applicable. Certain expense reductions may also differ by class, if applicable. 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. Expenses included in the accompanying financial statements reflect the expenses of that fund and do not include any expenses associated with any underlying mutual funds or exchange-traded funds. Although not included in a fund's expenses, a fund indirectly bears its proportionate share of these expenses through the net asset value of each underlying mutual fund or exchange-traded fund. 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 | $963 |
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, certain foreign taxes, passive foreign investment companies (PFIC), defaulted bonds, redemptions in kind, partnerships, deferred Trustees compensation, net operating losses and losses deferred due to wash sales and excise tax regulations.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
Gross unrealized appreciation | $29,764,953 |
Gross unrealized depreciation | (2,009,876) |
Net unrealized appreciation (depreciation) | $27,755,077 |
Tax cost | $26,626,536 |
Restricted Securities (including Private Placements). Funds 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 held at period end is included at the end of the Schedule of Investments, if applicable.
Special Purpose Acquisition Companies. Funds may invest in stock, warrants, and other securities of special purpose acquisition companies (SPACs) or similar special purpose entities. A SPAC is a publicly traded company that raises investment capital via an initial public offering (IPO) for the purpose of acquiring the equity securities of one or more existing companies via merger, business combination, acquisition or other similar transactions within a designated time frame.
Private Investment in Public Equity. Funds may acquire equity securities of an issuer through a private investment in a public equity (PIPE) transaction, including through commitments to purchase securities on a when-issued basis. A PIPE typically involves the purchase of securities directly from a publicly traded company in a private placement transaction. Securities purchased through PIPE transactions will be restricted from trading and considered illiquid until a resale registration statement for the shares is filed and declared effective.
At the current and/or prior period end, the Fund had commitments to purchase when-issued securities through PIPE transactions with SPACs. The commitments are contingent upon the SPACs acquiring the securities of target companies. Unrealized appreciation (depreciation) on any commitments outstanding at period end is separately presented in the Statements of Assets and Liabilities as Unrealized appreciation (depreciation) on unfunded commitments, and any change in unrealized appreciation (depreciation) on unfunded commitments during the period is separately presented in the Statement of Operations, as applicable. The total amount of commitments outstanding at period end is presented in the table below.
Commitment Amount | |
Fidelity Blue Chip Growth Fund | $1,604 |
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 | 59,921 | .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. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and in-kind transactions, as applicable, are noted in the table below.
Purchases ($) | Sales ($) | |
Fidelity Blue Chip Growth Fund | 10,745,343 | 10,658,329 |
Unaffiliated Redemptions In-Kind. Shares that were redeemed in-kind for investments, including accrued interest and cash, if any, are shown in the table below. The net realized gain or loss 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. There was no gain or loss for federal income tax purposes.
Shares | Total net realized gain or loss ($) | Total Proceeds ($) | Participating classes | |
Fidelity Blue Chip Growth Fund | 1,250 | 155,214 | 233,881 | Blue Chip Growth, Class K |
Prior Fiscal Year Unaffiliated Redemptions In-Kind. Shares that were redeemed in-kind for investments, including accrued interest and cash, if any, are shown in the table below; along with realized gain or loss 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. There was no gain or loss for federal income tax purposes.
Shares | Total net realized gain or loss ($) | Total Proceeds ($) | Participating classes | |
Fidelity Blue Chip Growth Fund | 3,999 | 470,324 | 671,180 | Blue Chip Growth, Class K |
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 .22% 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 .65% 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, 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 | $30,132 | .12 |
Class K | 1,691 | .04 |
$31,823 |
(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 | –(a) |
(a) Amount represents less than 0.005%
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 | $233 |
Interfund Lending Program. Pursuant to an Exemptive Order issued by the Securities and Exchange Commission (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 Fund | Borrower | $23,889 | .32% | $41 |
Interfund Trades. Funds may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Any interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note. Interfund trades during the period are noted in the table below.
Purchases ($) | Sales ($) | Realized Gain (Loss) ($) | |
Fidelity Blue Chip Growth Fund | 949,501 | 617,846 | 78,245 |
Other. During the period, the investment adviser reimbursed the Fund for certain losses as follows:
Amount ($) | |
Fidelity Blue Chip Growth Fund | 118 |
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. During the period, there were no borrowings on this line of credit.
Amount | |
Fidelity Blue Chip Growth Fund | $46 |
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 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 | $280 | $49 | $1,392 |
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 Blue Chip Growth Fund | $16,210 | .58% | $5 |
9. Expense Reductions.
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 $910.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended January 31, 2022 | Year ended July 31, 2021 | |
Fidelity Blue Chip Growth Fund | ||
Distributions to shareholders | ||
Blue Chip Growth | $4,200,150 | $2,429,319 |
Class K | 719,199 | 500,706 |
Total | $4,919,349 | $2,930,025 |
11. Share Transactions.
Share transactions for each class were as follows and may contain in-kind transactions, automatic conversions between classes or exchanges between affiliated funds:
Shares | Shares | Dollars | Dollars | |
Six months ended January 31, 2022 | Year ended July 31, 2021 | Six months ended January 31, 2022 | Year ended July 31, 2021 | |
Fidelity Blue Chip Growth Fund | ||||
Blue Chip Growth | ||||
Shares sold | 33,691 | 70,865 | $6,110,471 | $11,644,088 |
Reinvestment of distributions | 21,852 | 15,428 | 3,946,135 | 2,291,021 |
Shares redeemed | (26,920) | (53,595) | (4,799,206) | (8,742,664) |
Net increase (decrease) | 28,623 | 32,698 | $5,257,400 | $5,192,445 |
Class K | ||||
Shares sold | 4,081 | 11,284 | $649,653 | $1,843,570 |
Reinvestment of distributions | 3,969 | 3,365 | 719,196 | 500,706 |
Shares redeemed | (8,719) | (16,657) | (1,507,190) | (2,732,561) |
Net increase (decrease) | (669) | (2,008) | $(138,341) | $(388,285) |
12. Other.
A 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, a fund may also enter into contracts that provide general indemnifications. A fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against a 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, 2021 to January 31, 2022).
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, 2021 | Ending Account Value January 31, 2022 | Expenses Paid During Period-B August 1, 2021 to January 31, 2022 | |
Fidelity Blue Chip Growth Fund | ||||
Blue Chip Growth | .78% | |||
Actual | $1,000.00 | $944.10 | $3.82 | |
Hypothetical-C | $1,000.00 | $1,021.27 | $3.97 | |
Class K | .70% | |||
Actual | $1,000.00 | $944.50 | $3.43 | |
Hypothetical-C | $1,000.00 | $1,021.68 | $3.57 |
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
BCF-SANN-0422
1.700126.125
Fidelity® Blue Chip Growth K6 Fund
Semi-Annual Report
January 31, 2022
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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. © 2022 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 COVID-19 emerged as a public health emergency that had a major influence on financial markets, primarily based on its impact on the global economy and corporate earnings. On March 11, 2020, the World Health Organization declared the COVID-19 outbreak a pandemic, citing sustained risk of further global spread. The pandemic prompted a number of measures to limit the spread of COVID-19, 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. To help stem the turmoil, the U.S. government took unprecedented action – in concert with the U.S. Federal Reserve and central banks around the world – to help support consumers, businesses, and the broader economy, and to limit disruption to the financial system.
In general, the overall impact of the pandemic lessened in 2021, amid a resilient economy and widespread distribution of three COVID-19 vaccines granted emergency use authorization from the U.S. Food and Drug Administration (FDA) early in the year. Still, the situation remains dynamic, and the extent and duration of its influence on financial markets and the economy is highly uncertain, due in part to a recent spike in cases based on highly contagious variants of the coronavirus.
Extreme events such as the COVID-19 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 continue to take extra steps to be responsive to customer needs. We encourage you to visit us online, where we offer ongoing updates, commentary, and analysis on the markets and our funds.
Investment Summary (Unaudited)
Top Ten Stocks as of January 31, 2022
% of fund's net assets | |
Apple, Inc. | 10.5 |
Microsoft Corp. | 6.6 |
Amazon.com, Inc. | 6.4 |
Alphabet, Inc. Class A | 6.1 |
NVIDIA Corp. | 5.8 |
Tesla, Inc. | 4.4 |
Meta Platforms, Inc. Class A | 4.3 |
Marvell Technology, Inc. | 3.6 |
Salesforce.com, Inc. | 1.7 |
Lowe's Companies, Inc. | 1.7 |
51.1 |
Top Five Market Sectors as of January 31, 2022
% of fund's net assets | |
Information Technology | 40.8 |
Consumer Discretionary | 28.2 |
Communication Services | 14.1 |
Health Care | 5.9 |
Industrials | 5.0 |
Asset Allocation (% of fund's net assets)
As of January 31, 2022* | ||
Stocks | 98.2% | |
Convertible Securities | 1.3% | |
Other Investments | 0.1% | |
Short-Term Investments and Net Other Assets (Liabilities) | 0.4% |
* Foreign investments - 7.8%
Schedule of Investments January 31, 2022 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.1% | |||
Shares | Value | ||
COMMUNICATION SERVICES - 14.0% | |||
Entertainment - 2.4% | |||
Endeavor Group Holdings, Inc. (a) | 75,492 | $2,368,184 | |
Endeavor Group Holdings, Inc. Class A (b) | 85,166 | 2,671,657 | |
Netflix, Inc. (a) | 189,428 | 80,912,276 | |
Roblox Corp. (a) | 131,720 | 8,675,079 | |
Roku, Inc. Class A (a) | 56,323 | 9,239,788 | |
Sea Ltd. ADR (a) | 328,266 | 49,341,662 | |
153,208,646 | |||
Interactive Media & Services - 11.4% | |||
Alphabet, Inc. Class A (a) | 146,385 | 396,128,057 | |
Bumble, Inc. | 62,300 | 1,838,473 | |
Meta Platforms, Inc. Class A (a) | 878,028 | 275,051,051 | |
Snap, Inc. Class A (a)(c) | 1,459,956 | 47,506,968 | |
Tencent Holdings Ltd. | 260,642 | 16,332,422 | |
ZipRecruiter, Inc. (a) | 110,395 | 2,394,468 | |
739,251,439 | |||
Media - 0.2% | |||
Criteo SA sponsored ADR (a) | 105,433 | 3,563,635 | |
DISH Network Corp. Class A (a) | 221,298 | 6,948,757 | |
10,512,392 | |||
TOTAL COMMUNICATION SERVICES | 902,972,477 | ||
CONSUMER DISCRETIONARY - 27.9% | |||
Automobiles - 5.4% | |||
Ford Motor Co. | 285,588 | 5,797,436 | |
General Motors Co. (a) | 187,426 | 9,882,973 | |
Neutron Holdings, Inc. (a)(b)(d) | 491,550 | 34,409 | |
Rad Power Bikes, Inc. (a)(b)(d) | 101,681 | 974,490 | |
Rivian Automotive, Inc. (c) | 63,987 | 4,206,505 | |
Rivian Automotive, Inc. | 369,880 | 21,884,320 | |
Tesla, Inc. (a) | 304,726 | 285,442,939 | |
XPeng, Inc.: | |||
ADR (a) | 483,746 | 16,974,647 | |
Class A | 57,010 | 994,332 | |
346,192,051 | |||
Diversified Consumer Services - 0.0% | |||
Mister Car Wash, Inc. | 52,365 | 900,678 | |
Hotels, Restaurants & Leisure - 4.4% | |||
Airbnb, Inc. Class A (a) | 454,508 | 69,980,597 | |
Booking Holdings, Inc. (a) | 3,000 | 7,368,390 | |
Caesars Entertainment, Inc. (a) | 391,732 | 29,826,474 | |
Chipotle Mexican Grill, Inc. (a) | 16,089 | 23,901,497 | |
Churchill Downs, Inc. | 52,434 | 11,026,870 | |
Dutch Bros, Inc. (c) | 53,671 | 2,798,943 | |
Evolution AB (e) | 21,740 | 2,704,830 | |
Expedia, Inc. (a) | 112,018 | 20,531,779 | |
Flutter Entertainment PLC (a) | 5,355 | 815,961 | |
Hilton Worldwide Holdings, Inc. (a) | 141,047 | 20,467,330 | |
Marriott International, Inc. Class A (a) | 169,270 | 27,272,782 | |
MGM Resorts International | 202,938 | 8,669,511 | |
Penn National Gaming, Inc. (a) | 908,838 | 41,452,101 | |
Planet Fitness, Inc. (a) | 15,800 | 1,400,512 | |
Sweetgreen, Inc. | 326,881 | 8,899,335 | |
Sweetgreen, Inc. Class A (c) | 150,266 | 4,545,547 | |
Vail Resorts, Inc. | 16,417 | 4,549,151 | |
286,211,610 | |||
Household Durables - 0.2% | |||
Lennar Corp. Class A | 51,714 | 4,970,233 | |
Tempur Sealy International, Inc. | 184,644 | 7,350,678 | |
TRI Pointe Homes, Inc. (a) | 40,926 | 974,448 | |
13,295,359 | |||
Internet & Direct Marketing Retail - 7.5% | |||
Amazon.com, Inc. (a) | 138,472 | 414,234,834 | |
BARK, Inc. (a)(c) | 251,313 | 947,450 | |
BARK, Inc. (b) | 220,630 | 831,775 | |
Cazoo Group Ltd. | 438,858 | 1,976,178 | |
Chewy, Inc. (a)(c) | 199,132 | 9,480,675 | |
Deliveroo PLC Class A (a)(e) | 1,042,122 | 2,189,461 | |
Delivery Hero AG (a)(e) | 9,579 | 739,403 | |
Doordash, Inc. (a) | 64,568 | 7,327,822 | |
Etsy, Inc. (a) | 65,658 | 10,313,559 | |
FSN E-Commerce Ventures Private Ltd. (a)(b) | 629,400 | 11,847,840 | |
Global-e Online Ltd. (a) | 79,585 | 2,841,980 | |
JD.com, Inc.: | |||
Class A (a) | 15,559 | 589,708 | |
sponsored ADR (a) | 21,100 | 1,579,968 | |
Overstock.com, Inc. (a)(c) | 44,617 | 2,138,939 | |
Pinduoduo, Inc. ADR (a) | 47,700 | 2,854,368 | |
Wayfair LLC Class A (a) | 86,919 | 13,552,410 | |
Zomato Ltd. (a)(b) | 2,860,900 | 3,121,155 | |
486,567,525 | |||
Leisure Products - 0.0% | |||
Peloton Interactive, Inc. Class A (a) | 82,542 | 2,255,873 | |
Multiline Retail - 0.5% | |||
Dollar Tree, Inc. (a) | 189,884 | 24,916,578 | |
Ollie's Bargain Outlet Holdings, Inc. (a) | 98,101 | 4,702,962 | |
29,619,540 | |||
Specialty Retail - 6.0% | |||
American Eagle Outfitters, Inc. (c) | 996,228 | 22,743,885 | |
Aritzia, Inc. (a) | 154,408 | 7,163,151 | |
Bath & Body Works, Inc. | 98,116 | 5,501,364 | |
Burlington Stores, Inc. (a) | 94,973 | 22,501,953 | |
Carvana Co. Class A (a) | 241,177 | 39,085,145 | |
Citi Trends, Inc. (a)(c) | 39,152 | 1,907,485 | |
Dick's Sporting Goods, Inc. | 151,447 | 17,476,984 | |
Fanatics, Inc. Class A (b)(d) | 183,732 | 12,464,379 | |
Five Below, Inc. (a) | 136,501 | 22,386,164 | |
Floor & Decor Holdings, Inc. Class A (a) | 194,779 | 21,176,373 | |
Foot Locker, Inc. | 114,751 | 5,127,075 | |
JD Sports Fashion PLC | 782,640 | 2,006,822 | |
Lowe's Companies, Inc. | 464,748 | 110,307,938 | |
RH (a) | 89,031 | 35,863,467 | |
Signet Jewelers Ltd. | 86,759 | 7,472,553 | |
The Children's Place, Inc. (a)(c) | 30,206 | 2,137,075 | |
TJX Companies, Inc. | 219,820 | 15,820,445 | |
Victoria's Secret & Co. (a) | 413,084 | 23,062,480 | |
Warby Parker, Inc. (a)(c) | 263,879 | 9,808,382 | |
384,013,120 | |||
Textiles, Apparel & Luxury Goods - 3.9% | |||
Allbirds, Inc.: | |||
Class A (c) | 14,632 | 180,852 | |
Class B | 27,500 | 305,910 | |
Capri Holdings Ltd. (a) | 560,923 | 33,694,645 | |
Crocs, Inc. (a) | 257,351 | 26,409,360 | |
Deckers Outdoor Corp. (a) | 69,829 | 22,361,341 | |
Hermes International SCA | 1,404 | 2,107,992 | |
lululemon athletica, Inc. (a) | 142,311 | 47,497,719 | |
LVMH Moet Hennessy Louis Vuitton SE | 14,440 | 11,860,690 | |
Moncler SpA | 92,131 | 5,912,927 | |
NIKE, Inc. Class B | 447,078 | 66,198,839 | |
On Holding AG | 54,690 | 1,442,175 | |
PVH Corp. | 218,478 | 20,757,595 | |
Tapestry, Inc. | 378,662 | 14,370,223 | |
253,100,268 | |||
TOTAL CONSUMER DISCRETIONARY | 1,802,156,024 | ||
CONSUMER STAPLES - 0.6% | |||
Beverages - 0.5% | |||
Boston Beer Co., Inc. Class A (a) | 20,700 | 8,711,181 | |
Celsius Holdings, Inc. (a)(c) | 428,169 | 20,436,506 | |
29,147,687 | |||
Food & Staples Retailing - 0.0% | |||
Blink Health, Inc. Series A1 (a)(b)(d) | 5,757 | 219,802 | |
Food Products - 0.0% | |||
Sovos Brands, Inc. | 28,366 | 416,129 | |
The Real Good Food Co. LLC Class B unit | 139,520 | 745,874 | |
The Real Good Food Co., Inc. | 6,198 | 36,816 | |
1,198,819 | |||
Household Products - 0.0% | |||
Procter & Gamble Co. | 17,800 | 2,856,010 | |
Personal Products - 0.1% | |||
Olaplex Holdings, Inc. | 132,273 | 2,888,842 | |
Tobacco - 0.0% | |||
JUUL Labs, Inc. Class A (a)(b)(d) | 23,134 | 1,002,165 | |
TOTAL CONSUMER STAPLES | 37,313,325 | ||
ENERGY - 2.3% | |||
Energy Equipment & Services - 0.1% | |||
Halliburton Co. | 73,100 | 2,247,094 | |
Oil, Gas & Consumable Fuels - 2.2% | |||
Cenovus Energy, Inc. (Canada) | 214,738 | 3,123,554 | |
Cheniere Energy, Inc. | 29,154 | 3,262,333 | |
Denbury, Inc. (a) | 87,564 | 6,579,559 | |
Devon Energy Corp. | 182,890 | 9,248,747 | |
Diamondback Energy, Inc. | 116,492 | 14,696,631 | |
EOG Resources, Inc. | 166,641 | 18,577,139 | |
Hess Corp. | 243,796 | 22,499,933 | |
Marathon Oil Corp. | 69,400 | 1,351,218 | |
PDC Energy, Inc. | 12,100 | 717,167 | |
Phillips 66 Co. | 87,485 | 7,417,853 | |
Pioneer Natural Resources Co. | 46,751 | 10,233,326 | |
Range Resources Corp. (a) | 64,253 | 1,236,870 | |
Reliance Industries Ltd. | 981,591 | 31,653,711 | |
Reliance Industries Ltd. sponsored GDR (e) | 47,278 | 3,041,571 | |
Tourmaline Oil Corp. | 40,745 | 1,452,672 | |
Valero Energy Corp. | 93,072 | 7,722,184 | |
142,814,468 | |||
TOTAL ENERGY | 145,061,562 | ||
FINANCIALS - 1.4% | |||
Banks - 0.6% | |||
Bank of America Corp. | 165,576 | 7,639,677 | |
Kotak Mahindra Bank Ltd. (a) | 72,602 | 1,820,905 | |
Wells Fargo & Co. | 517,186 | 27,824,607 | |
37,285,189 | |||
Capital Markets - 0.4% | |||
Goldman Sachs Group, Inc. | 31,151 | 11,048,637 | |
Morgan Stanley | 146,184 | 14,989,707 | |
26,038,344 | |||
Consumer Finance - 0.2% | |||
American Express Co. | 73,252 | 13,172,175 | |
LendingClub Corp. (a) | 100,238 | 1,880,465 | |
15,052,640 | |||
Diversified Financial Services - 0.2% | |||
Ant International Co. Ltd. Class C (a)(b)(d) | 403,977 | 719,079 | |
Sonder Holdings, Inc. (b) | 118,824 | 1,018,084 | |
Sonder Holdings, Inc. | 69,768 | 597,772 | |
Sonder Holdings, Inc. | 51,433 | 440,678 | |
Sonder Holdings, Inc.: | |||
rights 1/18/27 (a)(d) | 1,448 | 7,718 | |
rights 1/18/27 (a)(d) | 1,447 | 6,193 | |
rights 1/18/27 (a)(d) | 1,447 | 4,963 | |
rights 1/18/27 (a)(d) | 1,447 | 3,979 | |
rights 1/18/27 (a)(d) | 1,447 | 3,212 | |
rights 1/18/27 (a)(d) | 1,447 | 2,590 | |
WeWork, Inc. (a)(c) | 813,680 | 6,045,642 | |
WeWork, Inc. (b) | 407,536 | 3,027,992 | |
11,877,902 | |||
Thrifts & Mortgage Finance - 0.0% | |||
Housing Development Finance Corp. Ltd. | 65,160 | 2,224,700 | |
TOTAL FINANCIALS | 92,478,775 | ||
HEALTH CARE - 5.9% | |||
Biotechnology - 1.0% | |||
ADC Therapeutics SA (a) | 43,003 | 683,318 | |
Alnylam Pharmaceuticals, Inc. (a) | 84,351 | 11,606,698 | |
Arcutis Biotherapeutics, Inc. (a) | 53,032 | 801,314 | |
Argenx SE ADR (a) | 9,624 | 2,591,358 | |
Ascendis Pharma A/S sponsored ADR (a) | 46,232 | 5,623,660 | |
Avidity Biosciences, Inc. (a) | 21,841 | 362,997 | |
Biohaven Pharmaceutical Holding Co. Ltd. (a) | 9,598 | 1,275,286 | |
Cerevel Therapeutics Holdings (a) | 71,553 | 1,863,240 | |
Cibus Corp.: | |||
Series C (a)(b)(d)(f) | 133,810 | 215,434 | |
Series D (a)(b)(d)(f) | 134,400 | 216,384 | |
Series E (a)(b)(d)(f) | 232,441 | 374,230 | |
Day One Biopharmaceuticals, Inc. (a)(c) | 74,177 | 1,094,111 | |
Erasca, Inc. | 38,695 | 458,536 | |
Generation Bio Co. (a) | 73,359 | 476,834 | |
Horizon Therapeutics PLC (a) | 203,679 | 19,009,361 | |
Immunocore Holdings PLC ADR | 118 | 2,663 | |
Instil Bio, Inc. (a) | 64,714 | 751,330 | |
Karuna Therapeutics, Inc. (a) | 18,011 | 2,000,302 | |
Recursion Pharmaceuticals, Inc. (a)(c) | 53,209 | 629,995 | |
Regeneron Pharmaceuticals, Inc. (a) | 8,901 | 5,417,060 | |
Relay Therapeutics, Inc. (a) | 30,777 | 681,095 | |
Revolution Medicines, Inc. (a) | 48,533 | 1,044,430 | |
Turning Point Therapeutics, Inc. (a) | 51,741 | 1,926,317 | |
Twist Bioscience Corp. (a) | 4,456 | 264,776 | |
Verve Therapeutics, Inc. | 55,414 | 1,597,031 | |
Xencor, Inc. (a) | 36,250 | 1,245,913 | |
62,213,673 | |||
Health Care Equipment & Supplies - 1.9% | |||
Axonics Modulation Technologies, Inc. (a) | 77,558 | 3,678,576 | |
Boston Scientific Corp. (a) | 84,351 | 3,618,658 | |
DexCom, Inc. (a) | 78,253 | 33,686,351 | |
Edwards Lifesciences Corp. (a) | 11,600 | 1,266,720 | |
Figs, Inc. Class A (a)(c) | 65,006 | 1,461,335 | |
Il Makiage Ltd. (b)(d) | 1,393 | 1,199,122 | |
InMode Ltd. (a) | 36,937 | 1,781,472 | |
Insulet Corp. (a) | 31,178 | 7,732,144 | |
Intuitive Surgical, Inc. (a) | 148,655 | 42,244,778 | |
Outset Medical, Inc. (a) | 27,182 | 1,010,899 | |
Shockwave Medical, Inc. (a) | 93,921 | 13,615,727 | |
Tandem Diabetes Care, Inc. (a) | 83,207 | 9,827,579 | |
121,123,361 | |||
Health Care Providers & Services - 0.5% | |||
agilon health, Inc. (a) | 77,051 | 1,277,506 | |
Alignment Healthcare, Inc. (a) | 101,465 | 771,134 | |
Centene Corp. (a) | 22,800 | 1,772,928 | |
Guardant Health, Inc. (a) | 136,434 | 9,488,985 | |
LifeStance Health Group, Inc. | 297,445 | 2,269,505 | |
Surgery Partners, Inc. (a) | 70,683 | 3,016,044 | |
UnitedHealth Group, Inc. | 35,888 | 16,959,592 | |
35,555,694 | |||
Health Care Technology - 0.1% | |||
Certara, Inc. (a) | 46,721 | 1,248,852 | |
Doximity, Inc. | 100,945 | 4,600,064 | |
GoodRx Holdings, Inc. (a) | 10,500 | 252,105 | |
Medlive Technology Co. Ltd. (e) | 225,000 | 365,314 | |
MultiPlan Corp. warrants (a)(b) | 13,856 | 5,633 | |
6,471,968 | |||
Life Sciences Tools & Services - 0.8% | |||
10X Genomics, Inc. (a) | 37,678 | 3,627,261 | |
23andMe Holding Co. Class B (e) | 14,919 | 69,672 | |
Avantor, Inc. (a) | 221,429 | 8,265,945 | |
Bio-Rad Laboratories, Inc. Class A (a) | 4,408 | 2,643,610 | |
Danaher Corp. | 75,420 | 21,554,282 | |
ICON PLC (a) | 11,800 | 3,135,496 | |
Maravai LifeSciences Holdings, Inc. (a) | 93,682 | 2,709,283 | |
Nanostring Technologies, Inc. (a) | 33,063 | 1,147,947 | |
Olink Holding AB ADR (a) | 76,211 | 1,233,094 | |
Pacific Biosciences of California, Inc. (a) | 32,914 | 367,979 | |
Seer, Inc. (a) | 18,589 | 292,405 | |
Thermo Fisher Scientific, Inc. | 5,869 | 3,411,650 | |
Veterinary Emergency Group LLC Class A (b)(d)(f) | 33,700 | 1,083,260 | |
49,541,884 | |||
Pharmaceuticals - 1.6% | |||
Asymchem Laboratories Tianjin Co. Ltd. (H Shares) (e) | 14,100 | 494,720 | |
Eli Lilly & Co. | 204,189 | 50,105,939 | |
GH Research PLC | 29,983 | 509,111 | |
Intra-Cellular Therapies, Inc. (a) | 65,831 | 3,126,314 | |
Longboard Pharmaceuticals, Inc. (a) | 15,765 | 66,213 | |
Nuvation Bio, Inc. (a) | 131,943 | 804,852 | |
Zoetis, Inc. Class A | 247,514 | 49,450,822 | |
104,557,971 | |||
TOTAL HEALTH CARE | 379,464,551 | ||
INDUSTRIALS - 4.8% | |||
Aerospace & Defense - 0.3% | |||
Airbus Group NV (a) | 33,317 | 4,254,354 | |
Howmet Aerospace, Inc. | 151,803 | 4,719,555 | |
Space Exploration Technologies Corp. Class A (a)(b)(d) | 2,200 | 1,232,000 | |
The Boeing Co. (a) | 47,165 | 9,444,320 | |
19,650,229 | |||
Airlines - 0.1% | |||
Delta Air Lines, Inc. (a) | 23,700 | 940,653 | |
JetBlue Airways Corp. (a) | 65,100 | 952,413 | |
Ryanair Holdings PLC sponsored ADR (a) | 27,700 | 3,091,874 | |
4,984,940 | |||
Building Products - 0.0% | |||
The AZEK Co., Inc. (a) | 64,935 | 2,144,803 | |
Commercial Services & Supplies - 0.1% | |||
ACV Auctions, Inc. Class A (a) | 364,699 | 4,835,909 | |
Driven Brands Holdings, Inc. | 3,267 | 92,293 | |
Li-Cycle Holdings Corp. (a)(c) | 88,172 | 668,344 | |
5,596,546 | |||
Electrical Equipment - 0.4% | |||
Acuity Brands, Inc. | 85,105 | 16,300,161 | |
Array Technologies, Inc. (a) | 235,424 | 2,481,369 | |
ESS Tech, Inc. Class A (a) | 34,750 | 189,388 | |
Generac Holdings, Inc. (a) | 2,543 | 718,092 | |
Sunrun, Inc. (a) | 116,505 | 3,020,975 | |
22,709,985 | |||
Industrial Conglomerates - 0.3% | |||
General Electric Co. | 215,392 | 20,350,236 | |
Machinery - 0.2% | |||
AutoStore Holdings Ltd. | 690,560 | 1,949,330 | |
Deere & Co. | 29,673 | 11,168,917 | |
13,118,247 | |||
Professional Services - 0.0% | |||
KBR, Inc. | 7,777 | 337,522 | |
Recruit Holdings Co. Ltd. | 45,220 | 2,235,162 | |
Sterling Check Corp. | 17,863 | 357,439 | |
2,930,123 | |||
Road & Rail - 3.4% | |||
Avis Budget Group, Inc. (a) | 49,082 | 8,647,267 | |
Bird Global, Inc. (b) | 201,367 | 710,826 | |
Bird Global, Inc. | 663,983 | 2,109,474 | |
Bird Global, Inc.: | |||
rights 11/4/26 (a)(d) | 25,742 | 42,474 | |
rights 11/4/26 (a)(d) | 25,742 | 23,425 | |
rights 11/4/26 (a)(d) | 25,741 | 12,098 | |
Class A (a)(c) | 542,283 | 1,914,259 | |
Hertz Global Holdings, Inc. (c) | 265,731 | 5,117,979 | |
Lyft, Inc. (a) | 2,483,855 | 95,678,095 | |
Uber Technologies, Inc. (a)(c) | 2,765,685 | 103,436,619 | |
217,692,516 | |||
Transportation Infrastructure - 0.0% | |||
Delhivery Private Ltd. (b)(d) | 271,900 | 2,141,086 | |
TOTAL INDUSTRIALS | 311,318,711 | ||
INFORMATION TECHNOLOGY - 40.1% | |||
Communications Equipment - 0.2% | |||
Arista Networks, Inc. (a) | 102,009 | 12,680,739 | |
IT Services - 3.9% | |||
Block, Inc. Class A (a) | 163,897 | 20,042,964 | |
CI&T, Inc. Class A | 86,326 | 1,092,887 | |
Digitalocean Holdings, Inc. (a)(c) | 285,929 | 16,395,169 | |
Endava PLC ADR (a) | 32,279 | 3,925,772 | |
Flywire Corp. (a)(c) | 158,629 | 4,471,752 | |
MasterCard, Inc. Class A | 109,600 | 42,347,248 | |
MongoDB, Inc. Class A (a) | 31,773 | 12,871,560 | |
Okta, Inc. (a) | 68,800 | 13,614,832 | |
PayPal Holdings, Inc. (a) | 355,753 | 61,168,171 | |
Shift4 Payments, Inc. (a)(c) | 91,736 | 4,836,322 | |
Shopify, Inc. Class A (a) | 26,805 | 25,872,946 | |
TaskUs, Inc. | 92,584 | 2,962,688 | |
TDCX, Inc. ADR | 97,247 | 1,593,878 | |
Thoughtworks Holding, Inc. | 72,398 | 1,550,765 | |
Twilio, Inc. Class A (a) | 134,701 | 27,764,570 | |
Visa, Inc. Class A | 31,400 | 7,101,738 | |
247,613,262 | |||
Semiconductors & Semiconductor Equipment - 12.7% | |||
Advanced Micro Devices, Inc. (a) | 64,911 | 7,416,082 | |
Allegro MicroSystems LLC (a) | 31,000 | 879,780 | |
ASML Holding NV | 10,395 | 7,039,494 | |
Cirrus Logic, Inc. (a) | 79,763 | 7,134,003 | |
GlobalFoundries, Inc. | 323,222 | 15,947,773 | |
Lam Research Corp. | 7,052 | 4,160,116 | |
Marvell Technology, Inc. | 3,217,353 | 229,719,004 | |
Microchip Technology, Inc. | 17,262 | 1,337,460 | |
NVIDIA Corp. | 1,524,671 | 373,330,941 | |
NXP Semiconductors NV | 466,007 | 95,736,478 | |
onsemi (a) | 237,594 | 14,018,046 | |
Qualcomm, Inc. | 71,842 | 12,626,950 | |
Silergy Corp. | 10,000 | 1,352,714 | |
Synaptics, Inc. (a) | 18,264 | 3,841,832 | |
Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR | 86,280 | 10,580,516 | |
Teradyne, Inc. | 194,991 | 22,897,793 | |
Wolfspeed, Inc. (a)(c) | 41,229 | 3,885,421 | |
Xilinx, Inc. | 34,700 | 6,716,185 | |
818,620,588 | |||
Software - 12.8% | |||
Adobe, Inc. (a) | 150,724 | 80,531,833 | |
Amplitude, Inc. (a)(c) | 133,156 | 5,234,362 | |
AppLovin Corp. (a)(c) | 120,756 | 7,779,102 | |
Atlassian Corp. PLC (a) | 31,598 | 10,248,495 | |
AvidXchange Holdings, Inc. | 87,314 | 904,573 | |
Braze, Inc. | 5,375 | 268,858 | |
Cadence Design Systems, Inc. (a) | 48,137 | 7,323,563 | |
Cipher Mining, Inc. (a) | 98,992 | 300,936 | |
Confluent, Inc. | 55,767 | 3,646,604 | |
Coupa Software, Inc. (a) | 68,993 | 9,263,690 | |
Crowdstrike Holdings, Inc. (a) | 53,726 | 9,705,065 | |
Datadog, Inc. Class A (a) | 25,748 | 3,762,040 | |
DoubleVerify Holdings, Inc. (a) | 333,575 | 9,226,685 | |
EngageSmart, Inc. | 216,655 | 4,736,078 | |
Epic Games, Inc. (a)(b)(d) | 607 | 520,011 | |
Expensify, Inc. (c) | 90,477 | 2,646,452 | |
Freshworks, Inc. (c) | 70,126 | 1,525,241 | |
GitLab, Inc. (c) | 27,665 | 1,770,837 | |
HashiCorp, Inc. | 23,400 | 1,553,526 | |
HubSpot, Inc. (a) | 49,444 | 24,168,227 | |
Intuit, Inc. | 47,476 | 26,360,099 | |
Microsoft Corp. | 1,364,708 | 424,396,894 | |
Pine Labs Private Ltd. (b)(d) | 1,109 | 675,736 | |
Qualtrics International, Inc. | 144,129 | 4,218,656 | |
Riskified Ltd.: | |||
Class A (e) | 42,037 | 292,998 | |
Class B (a) | 84,074 | 585,996 | |
Salesforce.com, Inc. (a) | 481,938 | 112,113,237 | |
Samsara, Inc. (c) | 107,800 | 1,951,180 | |
SentinelOne, Inc. | 61,143 | 2,736,149 | |
ServiceNow, Inc. (a) | 28,344 | 16,603,348 | |
Stripe, Inc. Class B (a)(b)(d) | 19,200 | 696,000 | |
The Trade Desk, Inc. (a) | 112,683 | 7,835,976 | |
UiPath, Inc. Class A (a)(c) | 163,840 | 5,985,075 | |
Volue A/S (a) | 296,635 | 1,768,146 | |
Workday, Inc. Class A (a) | 45,397 | 11,485,895 | |
Zoom Video Communications, Inc. Class A (a) | 157,250 | 24,260,530 | |
827,082,093 | |||
Technology Hardware, Storage & Peripherals - 10.5% | |||
Apple, Inc. | 3,884,865 | 678,996,696 | |
TOTAL INFORMATION TECHNOLOGY | 2,584,993,378 | ||
MATERIALS - 1.0% | |||
Chemicals - 0.6% | |||
CF Industries Holdings, Inc. | 92,566 | 6,375,020 | |
Corteva, Inc. | 45,232 | 2,174,755 | |
LG Chemical Ltd. | 4,810 | 2,578,099 | |
Nutrien Ltd. | 238,909 | 16,685,947 | |
Olin Corp. | 9,038 | 457,955 | |
The Mosaic Co. | 316,633 | 12,649,488 | |
40,921,264 | |||
Metals & Mining - 0.4% | |||
Freeport-McMoRan, Inc. | 633,622 | 23,583,411 | |
TOTAL MATERIALS | 64,504,675 | ||
REAL ESTATE - 0.1% | |||
Equity Real Estate Investment Trusts (REITs) - 0.1% | |||
Simon Property Group, Inc. | 58,677 | 8,637,254 | |
TOTAL COMMON STOCKS | |||
(Cost $4,101,104,640) | 6,328,900,732 | ||
Preferred Stocks - 1.4% | |||
Convertible Preferred Stocks - 1.3% | |||
COMMUNICATION SERVICES - 0.1% | |||
Diversified Telecommunication Services - 0.0% | |||
Starry, Inc.: | |||
Series C (a)(b) | 158,250 | 241,319 | |
Series D (a)(b) | 553,263 | 843,682 | |
Series E3 (b) | 373,793 | 570,004 | |
1,655,005 | |||
Interactive Media & Services - 0.1% | |||
Reddit, Inc.: | |||
Series E (b)(d) | 4,835 | 298,776 | |
Series F (b)(d) | 51,156 | 3,161,154 | |
3,459,930 | |||
TOTAL COMMUNICATION SERVICES | 5,114,935 | ||
CONSUMER DISCRETIONARY - 0.3% | |||
Automobiles - 0.0% | |||
Rad Power Bikes, Inc.: | |||
Series A (b)(d) | 13,256 | 127,043 | |
Series C (b)(d) | 52,162 | 499,910 | |
Series D (b)(d) | 102,800 | 985,215 | |
1,612,168 | |||
Internet & Direct Marketing Retail - 0.2% | |||
GoBrands, Inc.: | |||
Series G (b)(d) | 18,300 | 7,109,367 | |
Series H (b)(d) | 11,467 | 4,454,815 | |
Instacart, Inc.: | |||
Series H (a)(b)(d) | 27,205 | 2,549,653 | |
Series I (b)(d) | 13,064 | 1,224,358 | |
15,338,193 | |||
Textiles, Apparel & Luxury Goods - 0.1% | |||
Algolia SAS Series D (b)(d) | 30,436 | 890,102 | |
CelLink Corp. Series D (b)(d) | 92,760 | 1,931,625 | |
Discord, Inc. Series I (b)(d) | 700 | 385,437 | |
3,207,164 | |||
TOTAL CONSUMER DISCRETIONARY | 20,157,525 | ||
CONSUMER STAPLES - 0.1% | |||
Food & Staples Retailing - 0.0% | |||
Blink Health, Inc. Series C (a)(b)(d) | 16,970 | 647,915 | |
Food Products - 0.1% | |||
AgBiome LLC Series C (a)(b)(d) | 68,700 | 407,239 | |
Bowery Farming, Inc. Series C1 (b)(d) | 17,874 | 1,076,896 | |
1,484,135 | |||
Tobacco - 0.0% | |||
JUUL Labs, Inc. Series E (a)(b)(d) | 12,508 | 541,847 | |
TOTAL CONSUMER STAPLES | 2,673,897 | ||
INDUSTRIALS - 0.2% | |||
Aerospace & Defense - 0.2% | |||
ABL Space Systems: | |||
Series B (b)(d) | 29,724 | 2,021,116 | |
Series B2 (b)(d) | 17,155 | 1,166,473 | |
Relativity Space, Inc. Series E (b)(d) | 276,014 | 6,302,807 | |
Space Exploration Technologies Corp. Series N (a)(b)(d) | 8,141 | 4,558,960 | |
14,049,356 | |||
Construction & Engineering - 0.0% | |||
Beta Technologies, Inc. Series A (b)(d) | 11,104 | 813,590 | |
TOTAL INDUSTRIALS | 14,862,946 | ||
INFORMATION TECHNOLOGY - 0.5% | |||
Communications Equipment - 0.1% | |||
Meesho Series F (b)(d) | 63,600 | 4,876,358 | |
Xsight Labs Ltd. Series D (b)(d) | 130,900 | 1,306,382 | |
6,182,740 | |||
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 (a)(b)(d) | 31,950 | 4,749,687 | |
Yanka Industries, Inc. Series F (b)(d) | 55,991 | 1,784,814 | |
6,534,501 | |||
Semiconductors & Semiconductor Equipment - 0.1% | |||
Astera Labs, Inc. Series C (b)(d) | 180,900 | 730,836 | |
GaN Systems, Inc.: | |||
Series F1 (b)(d) | 78,477 | 665,485 | |
Series F2 (b)(d) | 41,439 | 351,403 | |
SiMa.ai Series B (b)(d) | 313,000 | 2,043,890 | |
Tenstorrent, Inc. Series C1 (b)(d) | 8,600 | 645,344 | |
4,436,958 | |||
Software - 0.2% | |||
Bolt Technology OU Series E (b)(d) | 20,165 | 5,210,505 | |
Databricks, Inc.: | |||
Series G (b)(d) | 16,000 | 3,527,238 | |
Series H (b)(d) | 10,524 | 2,320,041 | |
Mountain Digital, Inc. Series D (b)(d) | 62,139 | 1,427,041 | |
Nuvia, Inc. Series B (a)(b) | 178,648 | 145,995 | |
Skyryse, Inc. Series B (b)(d) | 67,400 | 1,663,430 | |
Stripe, Inc. Series H (b)(d) | 8,086 | 293,118 | |
14,587,368 | |||
TOTAL INFORMATION TECHNOLOGY | 33,211,142 | ||
MATERIALS - 0.1% | |||
Metals & Mining - 0.1% | |||
Diamond Foundry, Inc. Series C (b)(d) | 249,802 | 6,867,057 | |
UTILITIES - 0.0% | |||
Independent Power and Renewable Electricity Producers - 0.0% | |||
Redwood Materials Series C (b)(d) | 37,990 | 1,800,858 | |
TOTAL CONVERTIBLE PREFERRED STOCKS | 84,688,360 | ||
Nonconvertible Preferred Stocks - 0.1% | |||
CONSUMER DISCRETIONARY - 0.0% | |||
Automobiles - 0.0% | |||
Neutron Holdings, Inc.: | |||
Series 1C (a)(b)(d) | 3,178,083 | 222,466 | |
Series 1D (a)(b)(d) | 5,904,173 | 413,292 | |
Waymo LLC Series A2 (a)(b)(d) | 7,817 | 716,991 | |
1,352,749 | |||
INFORMATION TECHNOLOGY - 0.1% | |||
IT Services - 0.0% | |||
Gupshup, Inc. (b)(d) | 78,911 | 1,804,316 | |
Software - 0.1% | |||
Pine Labs Private Ltd.: | |||
Series 1 (b)(d) | 2,652 | 1,615,917 | |
Series A (b)(d) | 663 | 403,979 | |
Series B (b)(d) | 721 | 439,320 | |
Series B2 (b)(d) | 583 | 355,234 | |
Series C (b)(d) | 1,085 | 661,112 | |
Series C1 (b)(d) | 228 | 138,925 | |
Series D (b)(d) | 244 | 148,674 | |
3,763,161 | |||
TOTAL INFORMATION TECHNOLOGY | 5,567,477 | ||
TOTAL NONCONVERTIBLE PREFERRED STOCKS | 6,920,226 | ||
TOTAL PREFERRED STOCKS | |||
(Cost $81,016,315) | 91,608,586 | ||
Principal Amount | Value | ||
Convertible Bonds - 0.0% | |||
CONSUMER DISCRETIONARY - 0.0% | |||
Automobiles - 0.0% | |||
Neutron Holdings, Inc.: | |||
0% 10/27/25 (b)(d) | 2,430,300 | 2,430,300 | |
4% 5/22/27 (b)(d) | 237,400 | 237,400 | |
4% 6/12/27 (b)(d) | 64,200 | 64,200 | |
TOTAL CONVERTIBLE BONDS | |||
(Cost $2,731,900) | 2,731,900 | ||
Preferred Securities - 0.1% | |||
CONSUMER DISCRETIONARY - 0.0% | |||
Internet & Direct Marketing Retail - 0.0% | |||
Circle Internet Financial Ltd. 0% (b)(g) | 2,232,400 | 2,511,865 | |
INFORMATION TECHNOLOGY - 0.1% | |||
Electronic Equipment & Components - 0.0% | |||
Enevate Corp. 0% 1/29/23 (b)(d) | 564,345 | 564,345 | |
Semiconductors & Semiconductor Equipment - 0.1% | |||
GaN Systems, Inc. 0% (b)(d)(g) | 1,839,388 | 1,839,388 | |
Tenstorrent, Inc. 0% (b)(d)(g) | 480,000 | 480,000 | |
2,319,388 | |||
TOTAL INFORMATION TECHNOLOGY | 2,883,733 | ||
TOTAL PREFERRED SECURITIES | |||
(Cost $5,116,133) | 5,395,598 | ||
Shares | Value | ||
Money Market Funds - 2.1% | |||
Fidelity Cash Central Fund 0.08% (h) | 55,480,147 | 55,491,243 | |
Fidelity Securities Lending Cash Central Fund 0.08% (h)(i) | 76,958,870 | 76,966,566 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $132,457,809) | 132,457,809 | ||
TOTAL INVESTMENT IN SECURITIES - 101.7% | |||
(Cost $4,322,426,797) | 6,561,094,625 | ||
NET OTHER ASSETS (LIABILITIES) - (1.7)% | (109,244,645) | ||
NET ASSETS - 100% | $6,451,849,980 |
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 $146,738,633 or 2.3% 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 $9,897,969 or 0.2% of net assets.
(f) Investment is owned by a wholly-owned subsidiary (Subsidiary) that is treated as a corporation for U.S. tax purposes.
(g) Security is perpetual in nature with no stated maturity date.
(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 |
ABL Space Systems Series B | 3/24/21 | $1,338,638 |
ABL Space Systems Series B2 | 10/22/21 | $1,166,473 |
AgBiome LLC Series C | 6/29/18 | $435,125 |
Algolia SAS Series D | 7/23/21 | $890,102 |
Ant International Co. Ltd. Class C | 5/16/18 | $1,539,709 |
Astera Labs, Inc. Series C | 8/24/21 | $608,150 |
BARK, Inc. | 12/17/20 | $2,206,300 |
Beta Technologies, Inc. Series A | 4/9/21 | $813,590 |
Bird Global, Inc. | 5/11/21 | $2,013,670 |
Blink Health, Inc. Series A1 | 12/30/20 | $155,957 |
Blink Health, Inc. Series C | 11/7/19 - 7/14/21 | $647,847 |
Bolt Technology OU Series E | 1/3/22 | $5,238,796 |
Bowery Farming, Inc. Series C1 | 5/18/21 | $1,076,896 |
ByteDance Ltd. Series E1 | 11/18/20 | $3,500,895 |
CelLink Corp. Series D | 1/20/22 | $1,931,625 |
Cibus Corp. Series C | 2/16/18 | $281,001 |
Cibus Corp. Series D | 5/10/19 | 168,000 |
Cibus Corp. Series E | 6/23/21 | 409,096 |
Circle Internet Financial Ltd. 0% | 5/11/21 | $2,232,400 |
Databricks, Inc. Series G | 2/1/21 | $2,837,886 |
Databricks, Inc. Series H | 8/31/21 | $2,320,041 |
Delhivery Private Ltd. | 5/20/21 | $1,327,209 |
Diamond Foundry, Inc. Series C | 3/15/21 | $5,995,248 |
Discord, Inc. Series I | 9/15/21 | $385,437 |
Endeavor Group Holdings, Inc. Class A | 3/29/21 | $2,043,984 |
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. Class A | 8/13/20 - 12/15/21 | $6,838,362 |
FSN E-Commerce Ventures Private Ltd. | 10/7/20 - 10/26/20 | $1,727,162 |
GaN Systems, Inc. Series F1 | 11/30/21 | $665,485 |
GaN Systems, Inc. Series F2 | 11/30/21 | $351,403 |
GaN Systems, Inc. 0% | 11/30/21 | $1,839,388 |
GoBrands, Inc. Series G | 3/2/21 | $4,569,827 |
GoBrands, Inc. Series H | 7/22/21 | $4,454,821 |
Gupshup, Inc. | 6/8/21 | $1,804,316 |
Il Makiage Ltd. | 1/6/22 | $1,199,122 |
Instacart, Inc. Series H | 11/13/20 | $1,632,300 |
Instacart, Inc. Series I | 2/26/21 | $1,633,000 |
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 |
Meesho Series F | 9/21/21 | $4,876,358 |
Mountain Digital, Inc. Series D | 11/5/21 | $1,427,041 |
MultiPlan Corp. warrants | 10/8/20 | $0 |
Neutron Holdings, Inc. | 2/4/21 | $4,916 |
Neutron Holdings, Inc. Series 1C | 7/3/18 | $581,081 |
Neutron Holdings, Inc. Series 1D | 1/25/19 | $1,431,762 |
Neutron Holdings, Inc. 0% 10/27/25 | 10/29/21 | $2,430,300 |
Neutron Holdings, Inc. 4% 5/22/27 | 6/4/20 | $237,400 |
Neutron Holdings, Inc. 4% 6/12/27 | 6/12/20 | $64,200 |
Nuvia, Inc. Series B | 3/16/21 | $145,994 |
Pine Labs Private Ltd. | 6/30/21 | $413,502 |
Pine Labs Private Ltd. Series 1 | 6/30/21 | $988,825 |
Pine Labs Private Ltd. Series A | 6/30/21 | $247,206 |
Pine Labs Private Ltd. Series B | 6/30/21 | $268,832 |
Pine Labs Private Ltd. Series B2 | 6/30/21 | $217,377 |
Pine Labs Private Ltd. Series C | 6/30/21 | $404,553 |
Pine Labs Private Ltd. Series C1 | 6/30/21 | $85,012 |
Pine Labs Private Ltd. Series D | 6/30/21 | $90,978 |
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 |
Rad Power Bikes, Inc. Series D | 9/17/21 | $985,215 |
Reddit, Inc. Series E | 5/18/21 | $205,363 |
Reddit, Inc. Series F | 8/11/21 | $3,161,154 |
Redwood Materials Series C | 5/28/21 | $1,800,858 |
Relativity Space, Inc. Series E | 5/27/21 | $6,302,807 |
SiMa.ai Series B | 5/10/21 | $1,604,876 |
Skyryse, Inc. Series B | 10/21/21 | $1,663,430 |
Sonder Holdings, Inc. | 4/29/21 - 10/27/21 | $1,128,795 |
Space Exploration Technologies Corp. Class A | 2/16/21 | $923,978 |
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 |
Starry, Inc. Series E3 | 3/31/21 | $627,972 |
Stripe, Inc. Class B | 5/18/21 | $770,465 |
Stripe, Inc. Series H | 3/15/21 | $324,451 |
Tenstorrent, Inc. Series C1 | 4/23/21 | $511,307 |
Tenstorrent, Inc. 0% | 4/23/21 | $480,000 |
Veterinary Emergency Group LLC Class A | 9/16/21 - 11/30/21 | $1,083,259 |
Waymo LLC Series A2 | 5/8/20 | $671,224 |
WeWork, Inc. | 3/25/21 | $4,075,360 |
Xsight Labs Ltd. Series D | 2/16/21 | $1,046,676 |
Yanka Industries, Inc. Series F | 4/8/21 | $1,784,814 |
Zomato Ltd. | 12/9/20 - 2/10/21 | $2,004,664 |
Affiliated Central Funds
Fiscal year to date information regarding the Fund's investments in Fidelity Central Funds, including the ownership percentage, is presented below.
Fund | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Realized Gain/Loss | Change in Unrealized appreciation (depreciation) | Value, end of period | % ownership, end of period |
Fidelity Cash Central Fund 0.08% | $145,904,096 | $673,522,383 | $763,935,236 | $19,954 | $-- | $-- | $55,491,243 | 0.1% |
Fidelity Securities Lending Cash Central Fund 0.08% | 76,396,587 | 526,956,399 | 526,386,420 | 344,749 | -- | -- | 76,966,566 | 0.2% |
Total | $222,300,683 | $1,200,478,782 | $1,290,321,656 | $364,703 | $-- | $-- | $132,457,809 |
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, 2022, 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 | $908,087,412 | $886,640,055 | $17,987,427 | $3,459,930 |
Consumer Discretionary | 1,823,666,298 | 1,710,725,882 | 77,956,864 | 34,983,552 |
Consumer Staples | 39,987,222 | 35,345,484 | 745,874 | 3,895,864 |
Energy | 145,061,562 | 110,366,280 | 34,695,282 | -- |
Financials | 92,478,775 | 85,628,902 | 6,102,139 | 747,734 |
Health Care | 379,464,551 | 375,510,454 | 865,667 | 3,088,430 |
Industrials | 326,181,657 | 297,319,308 | 10,548,320 | 18,314,029 |
Information Technology | 2,623,771,997 | 2,580,126,766 | 3,120,860 | 40,524,371 |
Materials | 71,371,732 | 61,926,576 | 2,578,099 | 6,867,057 |
Real Estate | 8,637,254 | 8,637,254 | -- | -- |
Utilities | 1,800,858 | -- | -- | 1,800,858 |
Corporate Bonds | 2,731,900 | -- | -- | 2,731,900 |
Preferred Securities | 5,395,598 | -- | 2,511,865 | 2,883,733 |
Money Market Funds | 132,457,809 | 132,457,809 | -- | -- |
Total Investments in Securities: | $6,561,094,625 | $6,284,684,770 | $157,112,397 | $119,297,458 |
Net realized depreciation on unfunded commitments | $(21,704) | $-- | $(21,704) | $-- |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value:
Investments in Securities: | |
Beginning Balance | $99,867,208 |
Net Realized Gain (Loss) on Investment Securities | -- |
Net Unrealized Gain (Loss) on Investment Securities | 11,060,095 |
Cost of Purchases | 36,495,588 |
Proceeds of Sales | (2,713,080) |
Amortization/Accretion | -- |
Transfers into Level 3 | 33,000 |
Transfers out of Level 3 | (25,445,353) |
Ending Balance | $119,297,458 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2022 | $11,060,095 |
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.
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
January 31, 2022 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $80,427,775) — See accompanying schedule: Unaffiliated issuers (cost $4,189,968,988) | $6,428,636,816 | |
Fidelity Central Funds (cost $132,457,809) | 132,457,809 | |
Total Investment in Securities (cost $4,322,426,797) | $6,561,094,625 | |
Receivable for investments sold | 24,321,521 | |
Receivable for fund shares sold | 9,581,240 | |
Dividends receivable | 918,330 | |
Interest receivable | 20,028 | |
Distributions receivable from Fidelity Central Funds | 69,109 | |
Total assets | 6,596,004,853 | |
Liabilities | ||
Payable to custodian bank | $1,523,441 | |
Payable for investments purchased | 25,780,168 | |
Unrealized depreciation on unfunded commitments | 21,704 | |
Payable for fund shares redeemed | 34,404,998 | |
Accrued management fee | 2,504,404 | |
Other payables and accrued expenses | 2,950,864 | |
Collateral on securities loaned | 76,969,294 | |
Total liabilities | 144,154,873 | |
Net Assets | $6,451,849,980 | |
Net Assets consist of: | ||
Paid in capital | $4,182,830,295 | |
Total accumulated earnings (loss) | 2,269,019,685 | |
Net Assets | $6,451,849,980 | |
Net Asset Value, offering price and redemption price per share ($6,451,849,980 ÷ 261,428,856 shares) | $24.68 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended January 31, 2022 (Unaudited) | ||
Investment Income | ||
Dividends | $12,490,730 | |
Interest | 2,951 | |
Income from Fidelity Central Funds (including $344,749 from security lending) | 364,703 | |
Total income | 12,858,384 | |
Expenses | ||
Management fee | $15,726,712 | |
Independent trustees' fees and expenses | 11,967 | |
Interest | 420 | |
Total expenses before reductions | 15,739,099 | |
Expense reductions | (16) | |
Total expenses after reductions | 15,739,083 | |
Net investment income (loss) | (2,880,699) | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers (net of foreign taxes of $18) | 95,653,167 | |
Foreign currency transactions | 15,765 | |
Total net realized gain (loss) | 95,668,932 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers (net of increase in deferred foreign taxes of $1,299,463) | (488,006,016) | |
Unfunded commitments | 1,863,839 | |
Assets and liabilities in foreign currencies | 7,795 | |
Total change in net unrealized appreciation (depreciation) | (486,134,382) | |
Net gain (loss) | (390,465,450) | |
Net increase (decrease) in net assets resulting from operations | $(393,346,149) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended January 31, 2022 (Unaudited) | Year ended July 31, 2021 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $(2,880,699) | $(5,562,556) |
Net realized gain (loss) | 95,668,932 | 624,106,868 |
Change in net unrealized appreciation (depreciation) | (486,134,382) | 1,305,751,766 |
Net increase (decrease) in net assets resulting from operations | (393,346,149) | 1,924,296,078 |
Distributions to shareholders | (450,387,568) | (67,572,204) |
Share transactions | ||
Proceeds from sales of shares | 1,457,458,048 | 2,518,663,293 |
Reinvestment of distributions | 450,387,568 | 67,572,204 |
Cost of shares redeemed | (1,067,950,838) | (1,841,618,316) |
Net increase (decrease) in net assets resulting from share transactions | 839,894,778 | 744,617,181 |
Total increase (decrease) in net assets | (3,838,939) | 2,601,341,055 |
Net Assets | ||
Beginning of period | 6,455,688,919 | 3,854,347,864 |
End of period | $6,451,849,980 | $6,455,688,919 |
Other Information | ||
Shares | ||
Sold | 56,328,478 | 104,587,712 |
Issued in reinvestment of distributions | 16,489,637 | 2,932,429 |
Redeemed | (42,889,400) | (75,489,262) |
Net increase (decrease) | 29,928,715 | 32,030,879 |
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, | |||||
2022 | 2021 | 2020 | 2019 | 2018 | 2017 A | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $27.89 | $19.32 | $13.69 | $12.79 | $10.32 | $10.00 |
Income from Investment Operations | ||||||
Net investment income (loss)B,C | (.01) | (.03) | .03 | .04 | .05D | –E |
Net realized and unrealized gain (loss) | (1.33) | 8.91 | 5.64 | .91 | 2.44 | .32 |
Total from investment operations | (1.34) | 8.88 | 5.67 | .95 | 2.49 | .32 |
Distributions from net investment income | – | (.02) | (.04) | (.05) | (.01) | – |
Distributions from net realized gain | (1.87) | (.29) | –E | – | –E | – |
Total distributions | (1.87) | (.31) | (.04) | (.05) | (.02)F | – |
Net asset value, end of period | $24.68 | $27.89 | $19.32 | $13.69 | $12.79 | $10.32 |
Total ReturnG,H | (5.41)% | 46.28% | 41.55% | 7.48% | 24.10% | 3.20% |
Ratios to Average Net AssetsC,I,J | ||||||
Expenses before reductions | .45%K | .45% | .45% | .45% | .45% | .45%K |
Expenses net of fee waivers, if any | .45%K | .45% | .45% | .45% | .45% | .45%K |
Expenses net of all reductions | .45%K | .45% | .45% | .45% | .45% | .45%K |
Net investment income (loss) | (.08)%K | (.10)% | .19% | .34% | .45%D | (.24)%K |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $6,451,850 | $6,455,689 | $3,854,348 | $2,290,237 | $1,680,044 | $180,223 |
Portfolio turnover rateL | 34%K,M | 44%M | 49%M | 51%M | 40%M | 3%M,N |
A For the period May 25, 2017 (commencement of operations) through July 31, 2017.
B Calculated based on average shares outstanding during the period.
C Net investment income (loss) is affected by the timing of the declaration of dividends by any underlying mutual funds or exchange-traded funds (ETFs). Net investment income (loss) of any such underlying funds is not included in the Fund's net investment income (loss) ratio.
D 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%.
E Amount represents less than $.005 per share.
F Total distributions per share do not sum due to rounding.
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 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.
J 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.
K Annualized
L Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
M Portfolio turnover rate excludes securities received or delivered in-kind.
N 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, 2022
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.
Funds may invest 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 Schedule of Investments lists any Fidelity Central Funds held as an investment as of period end, but does not include the underlying holdings of each Fidelity Central Fund. An investing fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
Based on its investment objective, each Fidelity Central Fund may invest or participate in various investment vehicles or strategies that are similar to those of the investing fund. These strategies are consistent with the investment objectives of the investing fund and may involve certain economic risks which may cause a decline in value of each of the Fidelity Central Funds and thus a decline in the value of the investing fund.
Fidelity Central Fund | Investment Manager | Investment Objective | Investment Practices | Expense Ratio(a) |
Fidelity Money Market Central Funds | Fidelity Management & Research Company LLC (FMR) | Each fund seeks to obtain a high level of current income consistent with the preservation of capital and liquidity. | Short-term Investments | Less than .005% |
(a) Expenses expressed as a percentage of average net assets and are as of each underlying Central Fund's most recent annual or semi-annual shareholder report.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds which contain the significant accounting policies (including investment valuation policies) of those funds, and are not covered by the Report of Independent Registered Public Accounting Firm, are available on the Securities and Exchange Commission 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 Fund's Schedule of Investments lists any underlying mutual funds or exchange-traded funds (ETFs) but does not include the underlying holdings of these funds. 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 – Unadjusted 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) |
Asset Type | Fair Value | Valuation Technique(s) | Unobservable Input | Amount or Range/Weighted Average | Impact to Valuation from an Increase in Input(a) |
Equities | $ 113,681,825 | Market comparable | Discount rate | 40.0% | Decrease |
Enterprise value/EBITDA multiple (EV/EBITDA) | 21.0 | Increase | |||
Enterprise value/Sales multiple (EV/S) | 3.1 - 12.0 / 8.0 | Increase | |||
Price/Earnings multiple (P/E) | 7.1 | Increase | |||
Enterprise value/Gross profit (EV/GP) | 12.5 | Increase | |||
Discount for lack of marketability | 15.0% | Decrease | |||
Recovery value | Recovery value | 1.8% - 5.3% / 3.7% | Increase | ||
Discount for lack of marketability | 5.0% | Decrease | |||
Market approach | Transaction price | $1.11 - $860.82 / $180.92 | Increase | ||
Discount for lack of marketability | 10.0% | Decrease | |||
Premium rate | 20.2% - 27.4% / 25.4% | Increase | |||
Discounted cash flow | Weighted average cost of capital (WACC) | 45.0% | Decrease | ||
Growth rate | 5.0% | Increase | |||
Recovery value | Recovery value | 0.5% - 1.7% / 1.2% | Increase | ||
Discount for lack of marketability | 5.0% | Decrease | |||
Corporate Bonds | $2,731,900 | Market approach | Market approach | $100.00 | Increase |
Preferred Securities | $2,883,733 | Market approach | Market approach | $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, 2022, 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. Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of a fund include an amount in addition to trade execution, which may be rebated back to a fund. Any such rebates are included in net realized gain (loss) on investments in the Statement of Operations. 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. Funds may file withholding tax reclaims in certain jurisdictions to recover a portion of amounts previously withheld. Any withholding tax reclaims income is included in the Statement of Operations in dividends. Any receivables for withholding tax reclaims are included in the Statement of Assets and Liabilities in dividends receivable.
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. Expenses included in the accompanying financial statements reflect the expenses of that fund and do not include any expenses associated with any underlying mutual funds or exchange-traded funds. Although not included in a fund's expenses, a fund indirectly bears its proportionate share of these expenses through the net asset value of each underlying mutual fund or exchange-traded fund. 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, foreign currency transactions, certain foreign taxes, passive foreign investment companies (PFIC), defaulted bonds, redemptions in kind, partnerships, net operating losses, 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 | $2,529,023,599 |
Gross unrealized depreciation | (307,080,557) |
Net unrealized appreciation (depreciation) | $2,221,943,042 |
Tax cost | $4,339,151,583 |
Restricted Securities (including Private Placements). Funds 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 held at period end is included at the end of the Schedule of Investments, if applicable.
Special Purpose Acquisition Companies. Funds may invest in stock, warrants, and other securities of special purpose acquisition companies (SPACs) or similar special purpose entities. A SPAC is a publicly traded company that raises investment capital via an initial public offering (IPO) for the purpose of acquiring the equity securities of one or more existing companies via merger, business combination, acquisition or other similar transactions within a designated time frame.
Private Investment in Public Equity. Funds may acquire equity securities of an issuer through a private investment in a public equity (PIPE) transaction, including through commitments to purchase securities on a when-issued basis. A PIPE typically involves the purchase of securities directly from a publicly traded company in a private placement transaction. Securities purchased through PIPE transactions will be restricted from trading and considered illiquid until a resale registration statement for the shares is filed and declared effective.
At the current and/or prior period end, the Fund had commitments to purchase when-issued securities through PIPE transactions with SPACs. The commitments are contingent upon the SPACs acquiring the securities of target companies. Unrealized appreciation (depreciation) on any commitments outstanding at period end is separately presented in the Statements of Assets and Liabilities as Unrealized appreciation (depreciation) on unfunded commitments, and any change in unrealized appreciation (depreciation) on unfunded commitments during the period is separately presented in the Statement of Operations, as applicable. The total amount of commitments outstanding at period end is presented in the table below.
Commitment Amount | |
Fidelity Blue Chip Growth K6 Fund | $194,310 |
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 | 1,889,308 | .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, as applicable, are noted in the table below.
Purchases ($) | Sales ($) | |
Fidelity Blue Chip Growth K6 Fund | 1,533,193,676 | 1,163,272,487 |
Unaffiliated Redemptions In-Kind. Shares that were redeemed in-kind for investments, including accrued interest and cash, if any, are shown in the table below. The net realized gain or loss 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. There was no gain or loss for federal income tax purposes.
Shares | Total net realized gain or loss ($) | Total Proceeds ($) | |
Fidelity Blue Chip Growth K6 Fund | 3,743,610 | 60,349,449 | 101,901,059 |
Unaffiliated Exchanges In-Kind. Shares that were exchanged for investments, including accrued interest and cash, if any, are shown in the table below. The amount of in-kind exchanges is included in share transactions in the accompanying Statement of Changes in Net Assets.
Shares | Total Proceeds ($) | |
Fidelity Blue Chip Growth K6 Fund | 8,395,113 | 233,881,043 |
Prior Fiscal Year Unaffiliated Redemptions In-Kind. Shares that were redeemed in-kind for investments, including accrued interest and cash, if any, are shown in the table below; along with realized gain or loss on investments delivered through in-kind redemptions. The amount of the in-kind redemptions is included in share transactions in the accompanying Statement of Changes in Net Assets. There was no gain or loss for federal income tax purposes.
Shares | Total net realized gain or loss ($) | Total Proceeds ($) | |
Fidelity Blue Chip Growth K6 Fund | 8,383,867 | 140,556,215 | 228,833,036 |
Prior Year Unaffiliated Exchanges In-Kind. Shares that were exchanged for investments, including accrued interest and cash, if any, are shown in the table below. The amount of in-kind exchanges is included in share transactions in the accompanying Statement of Changes in Net Assets.
Shares | Total Proceeds ($) | |
Fidelity Blue Chip Growth K6 Fund | 9,520,954 | 232,997,303 |
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 .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 | $27,161 |
Interfund Lending Program. Pursuant to an Exemptive Order issued by the Securities and Exchange Commission (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 | $9,608,800 | .32% | $420 |
Interfund Trades. Funds may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Any interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note. Interfund trades during the period are noted in the table below.
Purchases ($) | Sales ($) | Realized Gain (Loss) ($) | |
Fidelity Blue Chip Growth K6 Fund | 114,208,308 | 62,957,665 | (125,750) |
Other. During the period, the investment adviser reimbursed the Fund for certain losses as follows:
Amount ($) | |
Fidelity Blue Chip Growth K6 Fund | 12,405 |
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 commitment fees on the pro-rata portion of the line of credit are borne by the investment adviser. 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 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 | $36,776 | $20,767 | $3,102,963 |
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 $16.
9. Other.
A 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, a fund may also enter into contracts that provide general indemnifications. A fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against a 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, 2021 to January 31, 2022).
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, 2021 | Ending Account Value January 31, 2022 | Expenses Paid During Period-B August 1, 2021 to January 31, 2022 | |
Fidelity Blue Chip Growth K6 Fund | .45% | |||
Actual | $1,000.00 | $945.90 | $2.21 | |
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
BCFK6-SANN-0422
1.9884006.104
Fidelity® Blue Chip Value Fund
Semi-Annual Report
January 31, 2022
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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. © 2022 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 COVID-19 emerged as a public health emergency that had a major influence on financial markets, primarily based on its impact on the global economy and corporate earnings. On March 11, 2020, the World Health Organization declared the COVID-19 outbreak a pandemic, citing sustained risk of further global spread. The pandemic prompted a number of measures to limit the spread of COVID-19, 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. To help stem the turmoil, the U.S. government took unprecedented action – in concert with the U.S. Federal Reserve and central banks around the world – to help support consumers, businesses, and the broader economy, and to limit disruption to the financial system.
In general, the overall impact of the pandemic lessened in 2021, amid a resilient economy and widespread distribution of three COVID-19 vaccines granted emergency use authorization from the U.S. Food and Drug Administration (FDA) early in the year. Still, the situation remains dynamic, and the extent and duration of its influence on financial markets and the economy is highly uncertain, due in part to a recent spike in cases based on highly contagious variants of the coronavirus.
Extreme events such as the COVID-19 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 continue to take extra steps to be responsive to customer needs. We encourage you to visit us online, where we offer ongoing updates, commentary, and analysis on the markets and our funds.
Investment Summary (Unaudited)
Top Ten Stocks as of January 31, 2022
% of fund's net assets | |
Berkshire Hathaway, Inc. Class B | 4.9 |
Centene Corp. | 3.9 |
Exxon Mobil Corp. | 3.8 |
Cigna Corp. | 3.7 |
Bank of America Corp. | 3.4 |
Samsung Electronics Co. Ltd. | 3.4 |
UnitedHealth Group, Inc. | 2.9 |
Comcast Corp. Class A | 2.8 |
Chubb Ltd. | 2.5 |
Exelon Corp. | 2.5 |
33.8 |
Top Five Market Sectors as of January 31, 2022
% of fund's net assets | |
Health Care | 21.5 |
Financials | 20.4 |
Utilities | 10.0 |
Communication Services | 8.9 |
Consumer Staples | 8.7 |
Asset Allocation (% of fund's net assets)
As of January 31, 2022* | ||
Stocks | 95.5% | |
Short-Term Investments and Net Other Assets (Liabilities) | 4.5% |
* Foreign investments - 20.6%
Schedule of Investments January 31, 2022 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 92.1% | |||
Shares | Value | ||
COMMUNICATION SERVICES - 8.9% | |||
Diversified Telecommunication Services - 2.0% | |||
Verizon Communications, Inc. | 215,000 | $11,444,450 | |
Interactive Media & Services - 2.4% | |||
Alphabet, Inc. Class A (a) | 5,100 | 13,800,957 | |
Media - 4.5% | |||
Comcast Corp. Class A | 327,600 | 16,376,724 | |
Interpublic Group of Companies, Inc. | 289,000 | 10,271,060 | |
26,647,784 | |||
TOTAL COMMUNICATION SERVICES | 51,893,191 | ||
CONSUMER DISCRETIONARY - 2.8% | |||
Internet & Direct Marketing Retail - 1.0% | |||
eBay, Inc. | 97,300 | 5,844,811 | |
Multiline Retail - 1.8% | |||
Dollar General Corp. | 49,400 | 10,298,912 | |
TOTAL CONSUMER DISCRETIONARY | 16,143,723 | ||
CONSUMER STAPLES - 8.7% | |||
Food Products - 2.4% | |||
Mondelez International, Inc. | 211,100 | 14,150,033 | |
Household Products - 6.3% | |||
Procter & Gamble Co. | 88,200 | 14,151,690 | |
Reckitt Benckiser Group PLC | 162,400 | 13,158,001 | |
The Clorox Co. | 54,900 | 9,215,514 | |
36,525,205 | |||
TOTAL CONSUMER STAPLES | 50,675,238 | ||
ENERGY - 5.1% | |||
Oil, Gas & Consumable Fuels - 5.1% | |||
Exxon Mobil Corp. | 294,100 | 22,339,836 | |
Parex Resources, Inc. (b) | 350,200 | 7,449,481 | |
29,789,317 | |||
FINANCIALS - 20.4% | |||
Banks - 9.6% | |||
Bank of America Corp. | 437,000 | 20,163,180 | |
JPMorgan Chase & Co. | 96,400 | 14,325,040 | |
M&T Bank Corp. | 66,100 | 11,196,018 | |
PNC Financial Services Group, Inc. | 51,600 | 10,629,084 | |
56,313,322 | |||
Diversified Financial Services - 4.9% | |||
Berkshire Hathaway, Inc. Class B (a) | 91,400 | 28,610,028 | |
Insurance - 5.9% | |||
Chubb Ltd. | 75,600 | 14,914,368 | |
The Travelers Companies, Inc. | 67,700 | 11,250,386 | |
Willis Towers Watson PLC | 36,600 | 8,562,936 | |
34,727,690 | |||
TOTAL FINANCIALS | 119,651,040 | ||
HEALTH CARE - 21.5% | |||
Biotechnology - 1.1% | |||
Regeneron Pharmaceuticals, Inc. (a) | 10,500 | 6,390,195 | |
Health Care Providers & Services - 14.9% | |||
Anthem, Inc. | 31,400 | 13,847,086 | |
Centene Corp. (a) | 293,200 | 22,799,232 | |
Cigna Corp. | 93,100 | 21,455,826 | |
CVS Health Corp. | 117,900 | 12,557,529 | |
UnitedHealth Group, Inc. | 35,700 | 16,870,749 | |
87,530,422 | |||
Pharmaceuticals - 5.5% | |||
AstraZeneca PLC sponsored ADR | 175,467 | 10,213,934 | |
Roche Holding AG (participation certificate) | 28,260 | 10,936,603 | |
Sanofi SA sponsored ADR | 211,100 | 10,977,200 | |
32,127,737 | |||
TOTAL HEALTH CARE | 126,048,354 | ||
INDUSTRIALS - 7.5% | |||
Aerospace & Defense - 1.9% | |||
Northrop Grumman Corp. | 29,400 | 10,875,060 | |
Electrical Equipment - 1.8% | |||
Regal Rexnord Corp. | 67,000 | 10,618,160 | |
Industrial Conglomerates - 1.2% | |||
Siemens AG | 42,900 | 6,811,284 | |
Machinery - 2.6% | |||
ITT, Inc. | 84,300 | 7,748,856 | |
Oshkosh Corp. | 67,600 | 7,693,556 | |
15,442,412 | |||
TOTAL INDUSTRIALS | 43,746,916 | ||
INFORMATION TECHNOLOGY - 4.7% | |||
IT Services - 3.3% | |||
Amdocs Ltd. | 113,700 | 8,628,693 | |
Cognizant Technology Solutions Corp. Class A | 126,600 | 10,814,172 | |
19,442,865 | |||
Software - 1.4% | |||
NortonLifeLock, Inc. | 309,700 | 8,055,297 | |
TOTAL INFORMATION TECHNOLOGY | 27,498,162 | ||
MATERIALS - 1.4% | |||
Metals & Mining - 1.4% | |||
Lundin Mining Corp. | 984,500 | 8,201,908 | |
REAL ESTATE - 1.1% | |||
Real Estate Management & Development - 1.1% | |||
CBRE Group, Inc. | 65,400 | 6,627,636 | |
UTILITIES - 10.0% | |||
Electric Utilities - 10.0% | |||
Entergy Corp. | 47,100 | 5,264,367 | |
Evergy, Inc. | 109,900 | 7,139,104 | |
Exelon Corp. | 254,500 | 14,748,275 | |
PG&E Corp. (a) | 1,012,500 | 12,949,875 | |
PPL Corp. | 208,100 | 6,176,408 | |
Southern Co. | 178,000 | 12,369,220 | |
58,647,249 | |||
TOTAL COMMON STOCKS | |||
(Cost $418,943,882) | 538,922,734 | ||
Nonconvertible Preferred Stocks - 3.4% | |||
INFORMATION TECHNOLOGY - 3.4% | |||
Technology Hardware, Storage & Peripherals - 3.4% | |||
Samsung Electronics Co. Ltd. | |||
(Cost $15,932,202) | 357,540 | 20,107,899 | |
Money Market Funds - 4.4% | |||
Fidelity Cash Central Fund 0.08% (c) | 25,015,319 | 25,020,322 | |
Fidelity Securities Lending Cash Central Fund 0.08% (c)(d) | 540,020 | 540,074 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $25,560,396) | 25,560,396 | ||
TOTAL INVESTMENT IN SECURITIES - 99.9% | |||
(Cost $460,436,480) | 584,591,029 | ||
NET OTHER ASSETS (LIABILITIES) - 0.1% | 317,756 | ||
NET ASSETS - 100% | $584,908,785 |
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
Fiscal year to date information regarding the Fund's investments in Fidelity Central Funds, including the ownership percentage, is presented below.
Fund | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Realized Gain/Loss | Change in Unrealized appreciation (depreciation) | Value, end of period | % ownership, end of period |
Fidelity Cash Central Fund 0.08% | $16,453,065 | $67,045,705 | $58,478,448 | $2,911 | $-- | $-- | $25,020,322 | 0.0% |
Fidelity Securities Lending Cash Central Fund 0.08% | 508,500 | 11,480,249 | 11,448,675 | 2,302 | -- | -- | 540,074 | 0.0% |
Total | $16,961,565 | $78,525,954 | $69,927,123 | $5,213 | $-- | $-- | $25,560,396 |
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, 2022, 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 | $51,893,191 | $51,893,191 | $-- | $-- |
Consumer Discretionary | 16,143,723 | 16,143,723 | -- | -- |
Consumer Staples | 50,675,238 | 37,517,237 | 13,158,001 | -- |
Energy | 29,789,317 | 29,789,317 | -- | -- |
Financials | 119,651,040 | 119,651,040 | -- | -- |
Health Care | 126,048,354 | 115,111,751 | 10,936,603 | -- |
Industrials | 43,746,916 | 36,935,632 | 6,811,284 | -- |
Information Technology | 47,606,061 | 27,498,162 | 20,107,899 | -- |
Materials | 8,201,908 | 8,201,908 | -- | -- |
Real Estate | 6,627,636 | 6,627,636 | -- | -- |
Utilities | 58,647,249 | 58,647,249 | -- | -- |
Money Market Funds | 25,560,396 | 25,560,396 | -- | -- |
Total Investments in Securities: | $584,591,029 | $533,577,242 | $51,013,787 | $-- |
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 | 79.4% |
United Kingdom | 5.5% |
Switzerland | 4.4% |
Korea (South) | 3.4% |
Canada | 2.7% |
France | 1.9% |
Bailiwick of Guernsey | 1.5% |
Germany | 1.2% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
January 31, 2022 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $527,937) — See accompanying schedule: Unaffiliated issuers (cost $434,876,084) | $559,030,633 | |
Fidelity Central Funds (cost $25,560,396) | 25,560,396 | |
Total Investment in Securities (cost $460,436,480) | $584,591,029 | |
Receivable for fund shares sold | 918,968 | |
Dividends receivable | 771,222 | |
Distributions receivable from Fidelity Central Funds | 955 | |
Prepaid expenses | 430 | |
Other receivables | 5 | |
Total assets | 586,282,609 | |
Liabilities | ||
Payable for fund shares redeemed | $533,095 | |
Accrued management fee | 174,524 | |
Transfer agent fee payable | 73,177 | |
Other affiliated payables | 18,018 | |
Other payables and accrued expenses | 34,936 | |
Collateral on securities loaned | 540,074 | |
Total liabilities | 1,373,824 | |
Net Assets | $584,908,785 | |
Net Assets consist of: | ||
Paid in capital | $455,718,058 | |
Total accumulated earnings (loss) | 129,190,727 | |
Net Assets | $584,908,785 | |
Net Asset Value, offering price and redemption price per share ($584,908,785 ÷ 24,079,843 shares) | $24.29 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended January 31, 2022 (Unaudited) | ||
Investment Income | ||
Dividends | $4,916,055 | |
Income from Fidelity Central Funds (including $2,302 from security lending) | 5,213 | |
Total income | 4,921,268 | |
Expenses | ||
Management fee | ||
Basic fee | $1,434,527 | |
Performance adjustment | (459,464) | |
Transfer agent fees | 433,937 | |
Accounting fees | 103,796 | |
Custodian fees and expenses | 11,198 | |
Independent trustees' fees and expenses | 940 | |
Registration fees | 16,462 | |
Audit | 30,564 | |
Legal | 1,234 | |
Miscellaneous | 1,029 | |
Total expenses before reductions | 1,574,223 | |
Expense reductions | (8,274) | |
Total expenses after reductions | 1,565,949 | |
Net investment income (loss) | 3,355,319 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 35,447,087 | |
Foreign currency transactions | 11,857 | |
Total net realized gain (loss) | 35,458,944 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | (4,123,927) | |
Assets and liabilities in foreign currencies | (7,827) | |
Total change in net unrealized appreciation (depreciation) | (4,131,754) | |
Net gain (loss) | 31,327,190 | |
Net increase (decrease) in net assets resulting from operations | $34,682,509 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended January 31, 2022 (Unaudited) | Year ended July 31, 2021 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $3,355,319 | $6,251,929 |
Net realized gain (loss) | 35,458,944 | (6,264,172) |
Change in net unrealized appreciation (depreciation) | (4,131,754) | 142,840,460 |
Net increase (decrease) in net assets resulting from operations | 34,682,509 | 142,828,217 |
Distributions to shareholders | (7,053,848) | (4,701,233) |
Share transactions | ||
Proceeds from sales of shares | 89,224,284 | 195,046,443 |
Reinvestment of distributions | 5,127,250 | 3,381,384 |
Cost of shares redeemed | (62,880,613) | (186,531,345) |
Net increase (decrease) in net assets resulting from share transactions | 31,470,921 | 11,896,482 |
Total increase (decrease) in net assets | 59,099,582 | 150,023,466 |
Net Assets | ||
Beginning of period | 525,809,203 | 375,785,737 |
End of period | $584,908,785 | $525,809,203 |
Other Information | ||
Shares | ||
Sold | 3,782,377 | 9,600,833 |
Issued in reinvestment of distributions | 216,360 | 185,697 |
Redeemed | (2,675,963) | (9,106,809) |
Net increase (decrease) | 1,322,774 | 679,721 |
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, | |||||
2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $23.11 | $17.02 | $19.71 | $19.90 | $18.85 | $16.19 |
Income from Investment Operations | ||||||
Net investment income (loss)A,B | .15 | .27 | .31 | .32 | .26 | .18 |
Net realized and unrealized gain (loss) | 1.34 | 6.03 | (2.63) | (.14)C,D | 1.01 | 2.66 |
Total from investment operations | 1.49 | 6.30 | (2.32) | .18 | 1.27 | 2.84 |
Distributions from net investment income | (.31) | (.21) | (.31) | (.29) | (.21) | (.18) |
Distributions from net realized gain | – | – | (.06) | (.09) | –E | – |
Total distributions | (.31) | (.21) | (.37) | (.37)F | (.22)F | (.18) |
Net asset value, end of period | $24.29 | $23.11 | $17.02 | $19.71 | $19.90 | $18.85 |
Total ReturnG,H | 6.48% | 37.36% | (12.03)% | .99%D | 6.79% | 17.68% |
Ratios to Average Net AssetsB,I,J | ||||||
Expenses before reductions | .58%K | .58% | .63% | .65% | .70% | .79% |
Expenses net of fee waivers, if any | .57%K | .58% | .63% | .65% | .70% | .79% |
Expenses net of all reductions | .57%K | .58% | .61% | .65% | .70% | .78% |
Net investment income (loss) | 1.23%K | 1.35% | 1.71% | 1.67% | 1.34% | 1.04% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $584,909 | $525,809 | $375,786 | $477,706 | $393,503 | $412,230 |
Portfolio turnover rateL | 54%K | 52% | 119% | 44% | 45% | 32% |
A Calculated based on average shares outstanding during the period.
B Net investment income (loss) is affected by the timing of the declaration of dividends by any underlying mutual funds or exchange-traded funds (ETFs). Net investment income (loss) of any such underlying funds is not included in the Fund's net investment income (loss) ratio.
C The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund.
D Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.02 per share. Excluding these litigation proceeds, the total return would have been .91%.
E Amount represents less than $.005 per share.
F Total distributions per share do not sum due to rounding.
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 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.
J 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.
K Annualized
L 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, 2022
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.
Funds may invest 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 Schedule of Investments lists any Fidelity Central Funds held as an investment as of period end, but does not include the underlying holdings of each Fidelity Central Fund. An investing fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
Based on its investment objective, each Fidelity Central Fund may invest or participate in various investment vehicles or strategies that are similar to those of the investing fund. These strategies are consistent with the investment objectives of the investing fund and may involve certain economic risks which may cause a decline in value of each of the Fidelity Central Funds and thus a decline in the value of the investing fund.
Fidelity Central Fund | Investment Manager | Investment Objective | Investment Practices | Expense Ratio(a) |
Fidelity Money Market Central Funds | Fidelity Management & Research Company LLC (FMR) | Each fund seeks to obtain a high level of current income consistent with the preservation of capital and liquidity. | Short-term Investments | Less than .005% |
(a) Expenses expressed as a percentage of average net assets and are as of each underlying Central Fund's most recent annual or semi-annual shareholder report.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds which contain the significant accounting policies (including investment valuation policies) of those funds, and are not covered by the Report of Independent Registered Public Accounting Firm, are available on the Securities and Exchange Commission 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 Fund's Schedule of Investments lists any underlying mutual funds or exchange-traded funds (ETFs) but does not include the underlying holdings of these funds. 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 – Unadjusted 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, 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, 2022 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. Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of a fund include an amount in addition to trade execution, which may be rebated back to a fund. Any such rebates are included in net realized gain (loss) on investments in the Statement of Operations. 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. Funds may file withholding tax reclaims in certain jurisdictions to recover a portion of amounts previously withheld. Any withholding tax reclaims income is included in the Statement of Operations in dividends. Any receivables for withholding tax reclaims are included in the Statement of Assets and Liabilities in dividends receivable.
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. Expenses included in the accompanying financial statements reflect the expenses of that fund and do not include any expenses associated with any underlying mutual funds or exchange-traded funds. Although not included in a fund's expenses, a fund indirectly bears its proportionate share of these expenses through the net asset value of each underlying mutual fund or exchange-traded fund. 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, 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 | $127,519,296 |
Gross unrealized depreciation | (3,487,710) |
Net unrealized appreciation (depreciation) | $124,031,586 |
Tax cost | $460,559,443 |
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 | $(24,649,237) |
Long-term | (3,664,127) |
Total capital loss carryforward | $(28,313,364) |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and in-kind transactions, as applicable, are noted in the table below.
Purchases ($) | Sales ($) | |
Fidelity Blue Chip Value Fund | 162,838,621 | 143,539,955 |
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 .22% 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 .36% 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 .16% 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 | $1,151 |
Interfund Trades. Funds may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Any interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note. Interfund trades during the period are noted in the table below.
Purchases ($) | Sales ($) | Realized Gain (Loss) ($) | |
Fidelity Blue Chip Value Fund | 4,001,012 | 12,145,110 | 2,800,091 |
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. During the period, there were no borrowings on this line of credit.
Amount | |
Fidelity Blue Chip Value Fund | $423 |
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 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 | $218 | $– | $– |
8. Expense Reductions.
During the period the investment adviser or an affiliate reimbursed and/or waived a portion of operating expenses in the amount of $8,274.
9. Other.
A 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, a fund may also enter into contracts that provide general indemnifications. A fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against a 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, 2021 to January 31, 2022).
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, 2021 | Ending Account Value January 31, 2022 | Expenses Paid During Period-B August 1, 2021 to January 31, 2022 | |
Fidelity Blue Chip Value Fund | .57% | |||
Actual | $1,000.00 | $1,064.80 | $2.97 | |
Hypothetical-C | $1,000.00 | $1,022.33 | $2.91 |
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
BCV-SANN-0422
1.789715.119
Fidelity® Small Cap Growth Fund
Semi-Annual Report
January 31, 2022
Includes Fidelity and Fidelity Advisor share classes
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Contents
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This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-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 COVID-19 emerged as a public health emergency that had a major influence on financial markets, primarily based on its impact on the global economy and corporate earnings. On March 11, 2020, the World Health Organization declared the COVID-19 outbreak a pandemic, citing sustained risk of further global spread. The pandemic prompted a number of measures to limit the spread of COVID-19, 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. To help stem the turmoil, the U.S. government took unprecedented action – in concert with the U.S. Federal Reserve and central banks around the world – to help support consumers, businesses, and the broader economy, and to limit disruption to the financial system.
In general, the overall impact of the pandemic lessened in 2021, amid a resilient economy and widespread distribution of three COVID-19 vaccines granted emergency use authorization from the U.S. Food and Drug Administration (FDA) early in the year. Still, the situation remains dynamic, and the extent and duration of its influence on financial markets and the economy is highly uncertain, due in part to a recent spike in cases based on highly contagious variants of the coronavirus.
Extreme events such as the COVID-19 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 continue to take extra steps to be responsive to customer needs. We encourage you to visit us online, where we offer ongoing updates, commentary, and analysis on the markets and our funds.
Investment Summary (Unaudited)
Top Ten Stocks as of January 31, 2022
% of fund's net assets | |
Crocs, Inc. | 1.8 |
BJ's Wholesale Club Holdings, Inc. | 1.7 |
TechTarget, Inc. | 1.6 |
Figs, Inc. Class A | 1.6 |
KBR, Inc. | 1.4 |
Willscot Mobile Mini Holdings | 1.4 |
SiTime Corp. | 1.3 |
Insulet Corp. | 1.3 |
Lindblad Expeditions Holdings | 1.2 |
CACI International, Inc. Class A | 1.2 |
14.5 |
Top Five Market Sectors as of January 31, 2022
% of fund's net assets | |
Health Care | 24.3 |
Information Technology | 18.8 |
Industrials | 16.4 |
Consumer Discretionary | 14.6 |
Financials | 6.7 |
Asset Allocation (% of fund's net assets)
As of January 31, 2022* | ||
Stocks | 96.5% | |
Convertible Securities | 2.4% | |
Short-Term Investments and Net Other Assets (Liabilities) | 1.1% |
* Foreign investments - 11.5%
Schedule of Investments January 31, 2022 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 95.5% | |||
Shares | Value | ||
COMMUNICATION SERVICES - 4.1% | |||
Diversified Telecommunication Services - 0.2% | |||
IDT Corp. Class B (a) | 334,244 | $12,544,177 | |
Interactive Media & Services - 1.4% | |||
Bumble, Inc. | 397,400 | 11,727,274 | |
CarGurus, Inc. Class A (a) | 1,200,603 | 38,299,236 | |
ZipRecruiter, Inc. (a) | 1,672,500 | 36,276,525 | |
86,303,035 | |||
Media - 1.9% | |||
Integral Ad Science Holding Corp. (b) | 930,812 | 15,581,793 | |
TechTarget, Inc. (a) | 1,154,696 | 95,770,486 | |
111,352,279 | |||
Wireless Telecommunication Services - 0.6% | |||
Gogo, Inc. (a)(b) | 2,731,498 | 34,007,150 | |
TOTAL COMMUNICATION SERVICES | 244,206,641 | ||
CONSUMER DISCRETIONARY - 14.6% | |||
Auto Components - 0.7% | |||
Gentherm, Inc. (a) | 437,800 | 38,259,342 | |
Diversified Consumer Services - 0.4% | |||
Duolingo, Inc. (a)(b) | 178,300 | 17,831,783 | |
Rover Group, Inc. Class A (a)(b) | 1,050,000 | 6,856,500 | |
24,688,283 | |||
Hotels, Restaurants & Leisure - 3.1% | |||
Churchill Downs, Inc. | 232,604 | 48,916,621 | |
Dutch Bros, Inc. (b) | 287,800 | 15,008,770 | |
Everi Holdings, Inc. (a) | 885,995 | 17,516,121 | |
Lindblad Expeditions Holdings (a)(c) | 4,201,213 | 70,874,463 | |
NeoGames SA (a) | 271,800 | 6,433,506 | |
Planet Fitness, Inc. (a) | 302,400 | 26,804,736 | |
185,554,217 | |||
Household Durables - 1.6% | |||
GoPro, Inc. Class A (a)(b) | 1,642,998 | 14,556,962 | |
Helen of Troy Ltd. (a) | 47,502 | 9,943,594 | |
Lovesac (a)(b)(c) | 984,732 | 53,027,818 | |
Sonos, Inc. (a) | 632,666 | 15,955,837 | |
93,484,211 | |||
Internet & Direct Marketing Retail - 1.3% | |||
BARK, Inc. (a)(b)(c) | 2,556,295 | 9,637,232 | |
BARK, Inc. (c)(d) | 1,195,200 | 4,505,904 | |
BARK, Inc. warrants 8/29/25 (a)(c) | 579,928 | 354,916 | |
Porch Group, Inc. Class A (a)(b) | 3,967,291 | 41,854,920 | |
Revolve Group, Inc. (a) | 288,975 | 14,252,247 | |
thredUP, Inc. (a)(b) | 938,853 | 8,703,167 | |
79,308,386 | |||
Leisure Products - 0.2% | |||
Callaway Golf Co. (a)(b) | 432,000 | 10,307,520 | |
Specialty Retail - 3.7% | |||
American Eagle Outfitters, Inc. (b) | 2,672,325 | 61,009,180 | |
Dick's Sporting Goods, Inc. (b) | 191,403 | 22,087,906 | |
Fanatics, Inc. Class A (d)(e) | 726,062 | 49,256,046 | |
Floor & Decor Holdings, Inc. Class A (a) | 158,717 | 17,255,712 | |
Lithia Motors, Inc. Class A (sub. vtg.) | 65,351 | 19,090,988 | |
Musti Group OYJ | 403,932 | 12,072,121 | |
Warby Parker, Inc. (a)(b) | 276,300 | 10,270,071 | |
Williams-Sonoma, Inc. | 161,295 | 25,894,299 | |
216,936,323 | |||
Textiles, Apparel & Luxury Goods - 3.6% | |||
Algolia, Inc. (d)(e) | 234,640 | 6,862,059 | |
Crocs, Inc. (a) | 1,027,790 | 105,471,813 | |
Deckers Outdoor Corp. (a) | 113,418 | 36,319,846 | |
Kontoor Brands, Inc. | 722,300 | 35,602,167 | |
Tapestry, Inc. | 735,542 | 27,913,819 | |
212,169,704 | |||
TOTAL CONSUMER DISCRETIONARY | 860,707,986 | ||
CONSUMER STAPLES - 2.7% | |||
Food & Staples Retailing - 2.0% | |||
BJ's Wholesale Club Holdings, Inc. (a) | 1,661,285 | 102,119,189 | |
Grocery Outlet Holding Corp. (a)(b) | 622,900 | 15,809,202 | |
117,928,391 | |||
Food Products - 0.4% | |||
Darling Ingredients, Inc. (a) | 372,756 | 23,770,650 | |
The Real Good Food Co. LLC Class B unit | 248,958 | 1,330,929 | |
25,101,579 | |||
Personal Products - 0.3% | |||
The Beauty Health Co. (a)(b) | 1,143,889 | 16,243,224 | |
TOTAL CONSUMER STAPLES | 159,273,194 | ||
ENERGY - 3.5% | |||
Energy Equipment & Services - 0.4% | |||
TechnipFMC PLC (a) | 3,526,600 | 22,887,634 | |
Oil, Gas & Consumable Fuels - 3.1% | |||
Antero Resources Corp. (a) | 2,647,655 | 51,708,702 | |
Enviva, Inc. | 705,949 | 49,402,311 | |
Genesis Energy LP | 3,240,106 | 36,580,797 | |
Northern Oil & Gas, Inc. | 491,951 | 11,570,688 | |
PDC Energy, Inc. | 152,626 | 9,046,143 | |
Range Resources Corp. (a) | 1,201,481 | 23,128,509 | |
181,437,150 | |||
TOTAL ENERGY | 204,324,784 | ||
FINANCIALS - 6.7% | |||
Banks - 2.3% | |||
East West Bancorp, Inc. | 134,000 | 11,569,560 | |
Glacier Bancorp, Inc. | 375,753 | 19,512,853 | |
Independent Bank Group, Inc. | 153,900 | 11,684,088 | |
Meta Financial Group, Inc. | 230,574 | 13,709,930 | |
Metropolitan Bank Holding Corp. (a) | 115,500 | 11,550,000 | |
PacWest Bancorp | 391,058 | 18,156,823 | |
Pinnacle Financial Partners, Inc. | 167,500 | 16,198,925 | |
Signature Bank | 59,545 | 18,139,193 | |
Silvergate Capital Corp. (a) | 87,267 | 9,402,147 | |
Starling Bank Ltd. Series D (a)(d)(e) | 1,746,100 | 5,354,192 | |
135,277,711 | |||
Capital Markets - 1.9% | |||
Impax Asset Management Group PLC | 643,530 | 9,520,044 | |
Lazard Ltd. Class A | 382,919 | 16,710,585 | |
LPL Financial | 174,709 | 30,105,855 | |
Morningstar, Inc. | 40,961 | 11,772,601 | |
Perella Weinberg Partners (d) | 2,039,500 | 22,148,970 | |
StepStone Group, Inc. Class A | 603,926 | 21,143,449 | |
111,401,504 | |||
Consumer Finance - 0.3% | |||
OneMain Holdings, Inc. | 342,778 | 17,707,911 | |
Insurance - 1.8% | |||
American Financial Group, Inc. | 205,662 | 26,793,645 | |
Assurant, Inc. | 238,636 | 36,394,376 | |
BRP Group, Inc. (a)(b) | 1,128,337 | 34,436,845 | |
HCI Group, Inc. (b) | 78,900 | 5,354,943 | |
102,979,809 | |||
Thrifts & Mortgage Finance - 0.4% | |||
Walker & Dunlop, Inc. | 198,600 | 26,296,626 | |
TOTAL FINANCIALS | 393,663,561 | ||
HEALTH CARE - 23.9% | |||
Biotechnology - 9.8% | |||
4D Molecular Therapeutics, Inc. (a)(b) | 307,190 | 4,853,602 | |
ADC Therapeutics SA (a) | 214,727 | 3,412,012 | |
Agios Pharmaceuticals, Inc. (a) | 356,536 | 11,013,397 | |
Allovir, Inc. (a)(b) | 615,152 | 5,019,640 | |
ALX Oncology Holdings, Inc. (a) | 805,077 | 12,881,232 | |
Argenx SE ADR (a) | 93,082 | 25,063,259 | |
Ascendis Pharma A/S sponsored ADR (a) | 228,796 | 27,830,745 | |
Avid Bioservices, Inc. (a) | 698,199 | 13,175,015 | |
Bicycle Therapeutics PLC ADR (a) | 173,400 | 8,467,122 | |
BioCryst Pharmaceuticals, Inc. (a) | 620,600 | 9,588,270 | |
Biohaven Pharmaceutical Holding Co. Ltd. (a) | 118,042 | 15,684,241 | |
Bolt Biotherapeutics, Inc. (b) | 119,609 | 459,299 | |
Celldex Therapeutics, Inc. (a) | 548,666 | 17,014,133 | |
Century Therapeutics, Inc. (b) | 437,714 | 5,703,413 | |
Cyteir Therapeutics, Inc. | 645,438 | 3,924,263 | |
Cytokinetics, Inc. (a) | 1,039,908 | 34,514,547 | |
Erasca, Inc. | 792,023 | 9,385,473 | |
Exelixis, Inc. (a) | 679,903 | 12,306,244 | |
Forma Therapeutics Holdings, Inc. (a) | 447,076 | 5,293,380 | |
Global Blood Therapeutics, Inc. (a) | 643,400 | 18,562,090 | |
Graphite Bio, Inc. | 455,990 | 4,258,947 | |
Halozyme Therapeutics, Inc. (a) | 354,301 | 12,262,358 | |
Imago BioSciences, Inc. | 235,177 | 4,755,279 | |
Immunocore Holdings PLC ADR (b) | 323,189 | 7,294,376 | |
ImmunoGen, Inc. (a) | 1,298,111 | 7,334,327 | |
Instil Bio, Inc. (a) | 341,458 | 3,964,327 | |
Instil Bio, Inc. (f) | 1,253,977 | 14,558,673 | |
Janux Therapeutics, Inc. | 432,538 | 6,587,554 | |
Keros Therapeutics, Inc. (a) | 268,993 | 12,473,205 | |
Kura Oncology, Inc. (a)(b) | 734,846 | 10,353,980 | |
Kymera Therapeutics, Inc. (a) | 292,961 | 12,304,362 | |
Monte Rosa Therapeutics, Inc. (b) | 645,934 | 8,177,524 | |
Morphic Holding, Inc. (a) | 371,306 | 15,754,514 | |
Nuvalent, Inc. (f) | 548,468 | 7,398,833 | |
Passage Bio, Inc. (a) | 109,830 | 552,445 | |
Prelude Therapeutics, Inc. (a)(b) | 697,681 | 6,927,972 | |
ProQR Therapeutics BV (a)(b) | 3,305,946 | 18,017,406 | |
Protagonist Therapeutics, Inc. (a) | 766,394 | 22,447,680 | |
PTC Therapeutics, Inc. (a) | 431,687 | 17,362,451 | |
Relay Therapeutics, Inc. (a)(b) | 1,036,948 | 22,947,659 | |
Repare Therapeutics, Inc. (a)(b) | 505,303 | 7,796,825 | |
Revolution Medicines, Inc. (a) | 486,932 | 10,478,777 | |
Tango Therapeutics, Inc. (a) | 499,400 | 4,259,882 | |
Taysha Gene Therapies, Inc. (a) | 45,432 | 361,184 | |
Tenaya Therapeutics, Inc. (a) | 817,506 | 9,744,672 | |
TG Therapeutics, Inc. (a) | 1,035,509 | 11,980,839 | |
Tyra Biosciences, Inc. | 704,408 | 9,234,789 | |
United Therapeutics Corp. (a) | 142,120 | 28,689,764 | |
Vaxcyte, Inc. (a) | 22,620 | 430,685 | |
Vericel Corp. (a)(b) | 299,199 | 10,645,500 | |
Verve Therapeutics, Inc. (b) | 421,296 | 12,141,751 | |
Xenon Pharmaceuticals, Inc. (a) | 354,074 | 9,602,487 | |
575,252,404 | |||
Health Care Equipment & Supplies - 5.5% | |||
Envista Holdings Corp. (a) | 847,002 | 36,624,366 | |
Figs, Inc. Class A (a)(b) | 4,209,600 | 94,631,808 | |
Globus Medical, Inc. (a) | 329,461 | 21,984,933 | |
Insulet Corp. (a) | 298,106 | 73,930,288 | |
Integer Holdings Corp. (a) | 322,599 | 25,294,988 | |
LivaNova PLC (a) | 267,600 | 20,099,436 | |
Minerva Surgical, Inc. | 831,607 | 3,883,605 | |
Neuronetics, Inc. (a) | 175,912 | 629,765 | |
NeuroPace, Inc. (a)(b) | 1,170,605 | 9,435,076 | |
OrthoPediatrics Corp. (a) | 241,435 | 11,417,461 | |
TransMedics Group, Inc. (a) | 561,520 | 8,911,322 | |
ViewRay, Inc. (a)(b) | 3,321,961 | 14,450,530 | |
321,293,578 | |||
Health Care Providers & Services - 4.1% | |||
Acadia Healthcare Co., Inc. (a) | 628,688 | 33,100,423 | |
Accolade, Inc. (a)(b) | 147,751 | 2,822,044 | |
agilon health, Inc. (a) | 1,293,300 | 21,442,914 | |
Guardant Health, Inc. (a) | 64,800 | 4,506,840 | |
LifeStance Health Group, Inc. | 787,139 | 6,005,871 | |
Molina Healthcare, Inc. (a) | 128,254 | 37,255,222 | |
Option Care Health, Inc. (a) | 1,415,004 | 33,068,643 | |
Owens & Minor, Inc. | 249,815 | 10,514,713 | |
R1 RCM, Inc. (a) | 2,134,830 | 50,766,257 | |
Surgery Partners, Inc. (a) | 806,781 | 34,425,345 | |
The Joint Corp. (a) | 178,795 | 9,662,082 | |
243,570,354 | |||
Health Care Technology - 2.1% | |||
Certara, Inc. (a)(b) | 460,078 | 12,297,885 | |
Definitive Healthcare Corp. | 292,755 | 6,405,479 | |
Doximity, Inc. | 254,400 | 11,593,008 | |
Evolent Health, Inc. (a) | 872,702 | 20,691,764 | |
Health Catalyst, Inc. (a) | 449,601 | 13,420,590 | |
Inspire Medical Systems, Inc. (a) | 162,516 | 35,963,166 | |
OptimizeRx Corp. (a) | 187,200 | 8,410,896 | |
Phreesia, Inc. (a) | 348,517 | 10,870,245 | |
Schrodinger, Inc. (a) | 223,274 | 6,329,818 | |
125,982,851 | |||
Life Sciences Tools & Services - 1.5% | |||
Absci Corp. (b) | 694,456 | 4,673,689 | |
Absci Corp. (f) | 145,599 | 979,881 | |
Nanostring Technologies, Inc. (a) | 429,421 | 14,909,497 | |
Olink Holding AB ADR (a)(b) | 881,062 | 14,255,583 | |
Pacific Biosciences of California, Inc. (a) | 143,500 | 1,604,330 | |
Syneos Health, Inc. (a) | 579,486 | 52,478,252 | |
Veterinary Emergency Group LLC Class A (d)(e)(g) | 32,200 | 1,035,043 | |
89,936,275 | |||
Pharmaceuticals - 0.9% | |||
Arvinas Holding Co. LLC (a) | 287,915 | 20,583,043 | |
Edgewise Therapeutics, Inc. (a) | 801,988 | 10,907,037 | |
Ikena Oncology, Inc. (a) | 192,541 | 1,873,424 | |
Ikena Oncology, Inc. (f) | 509,561 | 4,958,029 | |
NGM Biopharmaceuticals, Inc. (a) | 268,800 | 4,249,728 | |
Pharvaris BV (b) | 702,425 | 12,074,686 | |
54,645,947 | |||
TOTAL HEALTH CARE | 1,410,681,409 | ||
INDUSTRIALS - 15.8% | |||
Aerospace & Defense - 0.3% | |||
BWX Technologies, Inc. | 402,177 | 17,900,898 | |
Air Freight & Logistics - 0.7% | |||
Air Transport Services Group, Inc. (a) | 466,200 | 12,517,470 | |
Hub Group, Inc. Class A (a) | 366,719 | 27,767,963 | |
40,285,433 | |||
Building Products - 2.0% | |||
Builders FirstSource, Inc. (a) | 704,513 | 47,899,839 | |
Simpson Manufacturing Co. Ltd. | 147,102 | 16,591,635 | |
The AZEK Co., Inc. (a) | 575,151 | 18,997,238 | |
UFP Industries, Inc. | 424,338 | 33,887,633 | |
117,376,345 | |||
Commercial Services & Supplies - 0.8% | |||
Driven Brands Holdings, Inc. | 870,205 | 24,583,291 | |
HNI Corp. | 473,900 | 19,875,366 | |
44,458,657 | |||
Construction & Engineering - 1.6% | |||
NV5 Global, Inc. (a) | 105,700 | 11,055,163 | |
Willscot Mobile Mini Holdings (a) | 2,232,612 | 82,695,948 | |
93,751,111 | |||
Electrical Equipment - 2.1% | |||
Acuity Brands, Inc. | 114,889 | 22,004,690 | |
nVent Electric PLC | 836,000 | 28,917,240 | |
Regal Rexnord Corp. | 284,825 | 45,139,066 | |
Sensata Technologies, Inc. PLC (a) | 498,012 | 28,565,968 | |
124,626,964 | |||
Machinery - 1.7% | |||
Crane Co. | 468,084 | 48,451,375 | |
ITT, Inc. | 319,087 | 29,330,477 | |
Kornit Digital Ltd. (a) | 84,528 | 8,880,512 | |
Mueller Industries, Inc. | 262,982 | 13,585,650 | |
100,248,014 | |||
Professional Services - 4.8% | |||
Alight, Inc. Class A (a) | 3,368,300 | 32,537,778 | |
ASGN, Inc. (a) | 532,255 | 61,140,132 | |
CACI International, Inc. Class A (a) | 276,154 | 68,337,069 | |
First Advantage Corp. | 355,658 | 6,017,733 | |
KBR, Inc. | 1,909,944 | 82,891,570 | |
Korn Ferry | 292,374 | 19,407,786 | |
Sterling Check Corp. (b) | 239,900 | 4,800,399 | |
TriNet Group, Inc. (a) | 111,690 | 9,515,988 | |
284,648,455 | |||
Trading Companies & Distributors - 1.8% | |||
Applied Industrial Technologies, Inc. | 301,252 | 29,516,671 | |
Beacon Roofing Supply, Inc. (a) | 615,875 | 33,793,061 | |
Custom Truck One Source, Inc. Class A (a)(b) | 2,650,170 | 21,784,397 | |
Univar, Inc. (a) | 842,900 | 22,336,850 | |
107,430,979 | |||
TOTAL INDUSTRIALS | 930,726,856 | ||
INFORMATION TECHNOLOGY - 17.7% | |||
Communications Equipment - 0.7% | |||
Lumentum Holdings, Inc. (a) | 394,100 | 39,993,268 | |
Electronic Equipment & Components - 1.1% | |||
Fabrinet (a) | 422,693 | 47,831,940 | |
TD SYNNEX Corp. | 184,877 | 19,332,588 | |
67,164,528 | |||
IT Services - 3.3% | |||
Concentrix Corp. | 219,100 | 44,036,909 | |
Digital Hearts Holdings Co. Ltd. | 386,988 | 5,830,315 | |
Digitalocean Holdings, Inc. (a) | 302,395 | 17,339,329 | |
Dlocal Ltd. | 299,218 | 8,952,603 | |
Flywire Corp. (a)(b) | 208,382 | 5,874,289 | |
Genpact Ltd. | 920,285 | 45,784,179 | |
Perficient, Inc. (a) | 208,329 | 21,837,046 | |
Thoughtworks Holding, Inc. | 368,026 | 7,883,117 | |
Verra Mobility Corp. (a) | 1,441,696 | 22,836,465 | |
Wix.com Ltd. (a) | 117,800 | 15,475,386 | |
195,849,638 | |||
Semiconductors & Semiconductor Equipment - 3.9% | |||
AEHR Test Systems (a) | 688,900 | 8,783,475 | |
Ambarella, Inc. (a) | 107,200 | 15,024,080 | |
Cirrus Logic, Inc. (a) | 353,065 | 31,578,134 | |
eMemory Technology, Inc. | 278,000 | 16,242,507 | |
MACOM Technology Solutions Holdings, Inc. (a) | 300,500 | 18,393,605 | |
Nova Ltd. (a) | 256,174 | 30,305,384 | |
Semtech Corp. (a) | 430,213 | 30,588,144 | |
SiTime Corp. (a) | 326,315 | 76,060,763 | |
226,976,092 | |||
Software - 7.8% | |||
Alkami Technology, Inc. (a)(b) | 896,332 | 13,749,733 | |
AvidXchange Holdings, Inc. (b) | 529,600 | 5,486,656 | |
CCC Intelligent Solutions Holdings, Inc. (d) | 48,511 | 517,127 | |
CyberArk Software Ltd. (a)(b) | 287,988 | 39,497,554 | |
DoubleVerify Holdings, Inc. (a) | 1,114,429 | 30,825,106 | |
Dynatrace, Inc. (a) | 736,855 | 40,423,865 | |
Elastic NV (a) | 326,784 | 30,472,608 | |
EngageSmart, Inc. (b) | 290,000 | 6,339,400 | |
Fortnox AB | 1,327,220 | 6,689,653 | |
GitLab, Inc. (b) | 145,700 | 9,326,257 | |
KnowBe4, Inc. (a) | 1,784,068 | 42,674,907 | |
Matterport, Inc. (a)(b) | 194,400 | 1,891,512 | |
Matterport, Inc. (d) | 56,700 | 551,691 | |
Monday.com Ltd. | 60,550 | 12,674,326 | |
Rapid7, Inc. (a) | 570,641 | 54,969,848 | |
Sprout Social, Inc. (a) | 440,559 | 30,332,487 | |
TECSYS, Inc. | 710,335 | 23,889,251 | |
Telos Corp. (a) | 1,342,699 | 15,696,151 | |
Tenable Holdings, Inc. (a) | 1,166,807 | 59,973,880 | |
Upsales Technology AB (a) | 233,819 | 1,773,112 | |
WalkMe Ltd. (b) | 691,234 | 12,048,209 | |
Yext, Inc. (a) | 2,470,964 | 20,014,808 | |
459,818,141 | |||
Technology Hardware, Storage & Peripherals - 0.9% | |||
Avid Technology, Inc. (a) | 1,690,846 | 53,024,931 | |
TOTAL INFORMATION TECHNOLOGY | 1,042,826,598 | ||
MATERIALS - 4.6% | |||
Chemicals - 2.8% | |||
Axalta Coating Systems Ltd. (a) | 570,549 | 16,893,956 | |
Element Solutions, Inc. | 1,793,906 | 40,255,251 | |
The Chemours Co. LLC | 1,190,958 | 38,956,236 | |
Trinseo PLC | 712,469 | 38,145,590 | |
Valvoline, Inc. | 870,028 | 28,658,722 | |
162,909,755 | |||
Construction Materials - 0.4% | |||
Eagle Materials, Inc. | 156,526 | 22,829,317 | |
Containers & Packaging - 0.7% | |||
Ardagh Metal Packaging SA (d) | 1,634,000 | 15,735,420 | |
Avery Dennison Corp. | 130,363 | 26,779,167 | |
42,514,587 | |||
Metals & Mining - 0.7% | |||
Iluka Resources Ltd. | 3,607,842 | 26,827,664 | |
Lynas Rare Earths Ltd. (a) | 2,531,151 | 16,348,964 | |
43,176,628 | |||
TOTAL MATERIALS | 271,430,287 | ||
REAL ESTATE - 1.3% | |||
Equity Real Estate Investment Trusts (REITs) - 0.5% | |||
Rexford Industrial Realty, Inc. | 204,776 | 14,983,460 | |
Terreno Realty Corp. | 195,056 | 14,584,337 | |
29,567,797 | |||
Real Estate Management & Development - 0.8% | |||
Compass, Inc. (a)(b) | 1,425,414 | 12,230,052 | |
Jones Lang LaSalle, Inc. (a) | 149,778 | 37,562,825 | |
49,792,877 | |||
TOTAL REAL ESTATE | 79,360,674 | ||
UTILITIES - 0.6% | |||
Independent Power and Renewable Electricity Producers - 0.6% | |||
NextEra Energy Partners LP | 298,411 | 22,446,475 | |
Sunnova Energy International, Inc. (a) | 598,492 | 11,766,353 | |
34,212,828 | |||
TOTAL COMMON STOCKS | |||
(Cost $5,180,066,827) | 5,631,414,818 | ||
Convertible Preferred Stocks - 2.4% | |||
COMMUNICATION SERVICES - 0.3% | |||
Interactive Media & Services - 0.3% | |||
Reddit, Inc. Series F (d)(e) | 253,500 | 15,664,880 | |
CONSUMER DISCRETIONARY - 0.0% | |||
Textiles, Apparel & Luxury Goods - 0.0% | |||
Algolia SAS Series D (d)(e) | 53,800 | 1,573,384 | |
HEALTH CARE - 0.4% | |||
Biotechnology - 0.3% | |||
Bright Peak Therapeutics AG Series B (d)(e) | 1,079,522 | 3,260,156 | |
Caris Life Sciences, Inc. Series D (d)(e) | 780,603 | 5,198,816 | |
Sonoma Biotherapeutics, Inc.: | |||
Series B (d)(e) | 2,370,360 | 4,337,759 | |
Series B1 (d)(e) | 1,264,171 | 2,313,433 | |
T-Knife Therapeutics, Inc. Series B (d)(e) | 1,097,257 | 4,575,562 | |
Treeline Biosciences Series A (d)(e) | 115,000 | 715,300 | |
20,401,026 | |||
Health Care Providers & Services - 0.1% | |||
Boundless Bio, Inc. Series B (d)(e) | 3,017,761 | 2,987,583 | |
Health Care Technology - 0.0% | |||
Wugen, Inc. Series B (d)(e) | 326,496 | 1,854,497 | |
TOTAL HEALTH CARE | 25,243,106 | ||
INDUSTRIALS - 0.6% | |||
Construction & Engineering - 0.3% | |||
Beta Technologies, Inc. Series A (d)(e) | 278,129 | 20,378,512 | |
Road & Rail - 0.3% | |||
Convoy, Inc. Series D (a)(d)(e) | 913,444 | 15,069,908 | |
TOTAL INDUSTRIALS | 35,448,420 | ||
INFORMATION TECHNOLOGY - 1.1% | |||
Communications Equipment - 0.3% | |||
Astranis Space Technologies Corp. Series C (d)(e) | 557,717 | 16,095,713 | |
IT Services - 0.5% | |||
Yanka Industries, Inc.: | |||
Series E (a)(d)(e) | 869,641 | 27,721,372 | |
Series F (d)(e) | 127,716 | 4,071,177 | |
31,792,549 | |||
Software - 0.3% | |||
Mountain Digital, Inc. Series D (d)(e) | 729,676 | 16,757,228 | |
Skyryse, Inc. Series B (d)(e) | 62,100 | 1,532,626 | |
18,289,854 | |||
TOTAL INFORMATION TECHNOLOGY | 66,178,116 | ||
TOTAL CONVERTIBLE PREFERRED STOCKS | |||
(Cost $127,883,696) | 144,107,906 | ||
Investment Companies - 1.0% | |||
iShares Russell 2000 Growth Index ETF (b) | |||
(Cost $65,059,199) | 225,100 | 57,114,623 | |
Money Market Funds - 7.9% | |||
Fidelity Cash Central Fund 0.08% (h) | 106,336,031 | 106,357,299 | |
Fidelity Securities Lending Cash Central Fund 0.08% (h)(i) | 359,563,291 | 359,599,247 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $465,956,546) | 465,956,546 | ||
TOTAL INVESTMENT IN SECURITIES - 106.8% | |||
(Cost $5,838,966,268) | 6,298,593,893 | ||
NET OTHER ASSETS (LIABILITIES) - (6.8)% | (403,744,555) | ||
NET ASSETS - 100% | $5,894,849,338 |
Security Type Abbreviations
ETF – Exchange-Traded Fund
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 $250,074,358 or 4.2% 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 $27,895,416 or 0.5% 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 |
Algolia SAS Series D | 7/23/21 | $1,573,384 |
Algolia, Inc. | 10/27/21 | $6,862,059 |
Ardagh Metal Packaging SA | 2/22/21 | $16,340,000 |
Astranis Space Technologies Corp. Series C | 3/19/21 | $12,225,675 |
BARK, Inc. | 12/17/20 | $11,952,000 |
Beta Technologies, Inc. Series A | 4/9/21 | $20,378,512 |
Boundless Bio, Inc. Series B | 4/23/21 | $4,073,977 |
Bright Peak Therapeutics AG Series B | 5/14/21 | $4,216,613 |
Caris Life Sciences, Inc. Series D | 5/11/21 | $6,322,884 |
CCC Intelligent Solutions Holdings, Inc. | 2/2/21 | $485,110 |
Convoy, Inc. Series D | 10/30/19 | $12,368,032 |
Fanatics, Inc. Class A | 8/13/20 - 3/22/21 | $12,874,623 |
Matterport, Inc. | 2/8/21 | $567,000 |
Mountain Digital, Inc. Series D | 11/5/21 | $16,757,228 |
Perella Weinberg Partners | 12/29/20 | $20,395,000 |
Reddit, Inc. Series F | 8/11/21 | $15,664,880 |
Skyryse, Inc. Series B | 10/21/21 | $1,532,626 |
Sonoma Biotherapeutics, Inc. Series B | 7/26/21 | $4,684,542 |
Sonoma Biotherapeutics, Inc. Series B1 | 7/26/21 | $3,747,635 |
Starling Bank Ltd. Series D | 6/18/21 | $3,121,827 |
T-Knife Therapeutics, Inc. Series B | 6/30/21 | $6,329,856 |
Treeline Biosciences Series A | 7/30/21 | $900,163 |
Veterinary Emergency Group LLC Class A | 9/16/21 - 11/30/21 | $1,035,043 |
Wugen, Inc. Series B | 7/9/21 | $2,531,944 |
Yanka Industries, Inc. Series E | 5/15/20 | $10,504,568 |
Yanka Industries, Inc. Series F | 4/8/21 | $4,071,177 |
Affiliated Central Funds
Fiscal year to date information regarding the Fund's investments in Fidelity Central Funds, including the ownership percentage, is presented below.
Fund | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Realized Gain/Loss | Change in Unrealized appreciation (depreciation) | Value, end of period | % ownership, end of period |
Fidelity Cash Central Fund 0.08% | $26,240,913 | $1,394,349,373 | $1,314,232,987 | $14,019 | $-- | $-- | $106,357,299 | 0.2% |
Fidelity Securities Lending Cash Central Fund 0.08% | 318,547,474 | 1,030,646,533 | 989,594,760 | 1,410,412 | -- | -- | 359,599,247 | 1.1% |
Total | $344,788,387 | $2,424,995,906 | $2,303,827,747 | $1,424,431 | $-- | $-- | $465,956,546 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable. Amount for Fidelity Securities Lending Cash Central Fund represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities.
Other Affiliated Issuers
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows:
Affiliate | Value, beginning of period | Purchases | Sales Proceeds(a) | Dividend Income | Realized Gain (loss) | Change in Unrealized appreciation (depreciation) | Value, end of period |
BARK, Inc. | $14,024,018 | $12,546,364 | $3,070,138 | $-- | $(3,895,134) | $(9,967,878) | $9,637,232 |
BARK, Inc. | 9,621,360 | -- | -- | -- | -- | (5,115,456) | 4,505,904 |
BARK, Inc. warrants 8/29/25 | 1,184,462 | -- | 1,397 | -- | (633) | (827,516) | 354,916 |
Lindblad Expeditions Holdings | 57,591,585 | -- | 75,911 | -- | 33,887 | 13,324,902 | 70,874,463 |
Lovesac | 56,334,031 | 4,084,596 | 1,342,658 | -- | 64,653 | (6,112,804) | 53,027,818 |
ProQR Therapeutics BV | 18,598,393 | 582,603 | 2,454,321 | -- | (569,711) | 1,860,444 | -- |
Total | $157,353,849 | $17,213,563 | $6,944,425 | $-- | $(4,366,938) | $(6,838,308) | $138,400,333 |
(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, 2022, 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 | $259,871,521 | $244,206,641 | $-- | $15,664,880 |
Consumer Discretionary | 862,281,370 | 792,517,760 | 12,072,121 | 57,691,489 |
Consumer Staples | 159,273,194 | 157,942,265 | 1,330,929 | -- |
Energy | 204,324,784 | 204,324,784 | -- | -- |
Financials | 393,663,561 | 378,789,325 | 9,520,044 | 5,354,192 |
Health Care | 1,435,924,515 | 1,409,646,366 | -- | 26,278,149 |
Industrials | 966,175,276 | 930,726,856 | -- | 35,448,420 |
Information Technology | 1,109,004,714 | 1,018,980,664 | 23,845,934 | 66,178,116 |
Materials | 271,430,287 | 228,253,659 | 43,176,628 | -- |
Real Estate | 79,360,674 | 79,360,674 | -- | -- |
Utilities | 34,212,828 | 34,212,828 | -- | -- |
Investment Companies | 57,114,623 | 57,114,623 | -- | -- |
Money Market Funds | 465,956,546 | 465,956,546 | -- | -- |
Total Investments in Securities: | $6,298,593,893 | $6,002,032,991 | $89,945,656 | $206,615,246 |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value:
Investments in Securities: | |
Equities - Information Technology | |
Beginning Balance | $44,018,224 |
Net Realized Gain (Loss) on Investment Securities | -- |
Net Unrealized Gain (Loss) on Investment Securities | 3,870,038 |
Cost of Purchases | 18,289,854 |
Proceeds of Sales | -- |
Amortization/Accretion | -- |
Transfers into Level 3 | -- |
Transfers out of Level 3 | -- |
Ending Balance | $66,178,116 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2022 | $3,870,038 |
Other Investments in Securities | |
Beginning Balance | $97,848,867 |
Net Realized Gain (Loss) on Investment Securities | -- |
Net Unrealized Gain (Loss) on Investment Securities | 21,416,281 |
Cost of Purchases | 23,561,982 |
Proceeds of Sales | -- |
Amortization/Accretion | -- |
Transfers into Level 3 | -- |
Transfers out of Level 3 | (2,390,000) |
Ending Balance | $140,437,130 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2022 | $21,416,281 |
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 | 88.5% |
Israel | 1.9% |
Bermuda | 1.6% |
United Kingdom | 1.5% |
Netherlands | 1.2% |
Ireland | 1.1% |
Cayman Islands | 1.1% |
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, 2022 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $372,408,271) — See accompanying schedule: Unaffiliated issuers (cost $5,220,788,379) | $5,694,237,014 | |
Fidelity Central Funds (cost $465,956,546) | 465,956,546 | |
Other affiliated issuers (cost $152,221,343) | 138,400,333 | |
Total Investment in Securities (cost $5,838,966,268) | $6,298,593,893 | |
Receivable for investments sold | 24,009,789 | |
Receivable for fund shares sold | 27,255,186 | |
Dividends receivable | 1,148,487 | |
Distributions receivable from Fidelity Central Funds | 190,480 | |
Prepaid expenses | 5,084 | |
Total assets | 6,351,202,919 | |
Liabilities | ||
Payable for investments purchased | $85,539,002 | |
Payable for fund shares redeemed | 6,076,346 | |
Accrued management fee | 4,152,405 | |
Distribution and service plan fees payable | 171,841 | |
Other affiliated payables | 779,474 | |
Other payables and accrued expenses | 46,215 | |
Collateral on securities loaned | 359,588,298 | |
Total liabilities | 456,353,581 | |
Net Assets | $5,894,849,338 | |
Net Assets consist of: | ||
Paid in capital | $5,354,999,031 | |
Total accumulated earnings (loss) | 539,850,307 | |
Net Assets | $5,894,849,338 | |
Net Asset Value and Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($332,148,265 ÷ 12,873,767 shares)(a) | $25.80 | |
Maximum offering price per share (100/94.25 of $25.80) | $27.37 | |
Class M: | ||
Net Asset Value and redemption price per share ($82,514,575 ÷ 3,382,312 shares)(a) | $24.40 | |
Maximum offering price per share (100/96.50 of $24.40) | $25.28 | |
Class C: | ||
Net Asset Value and offering price per share ($72,955,577 ÷ 3,445,035 shares)(a) | $21.18 | |
Small Cap Growth: | ||
Net Asset Value, offering price and redemption price per share ($3,237,233,379 ÷ 117,058,852 shares) | $27.65 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($676,804,535 ÷ 24,391,355 shares) | $27.75 | |
Class Z: | ||
Net Asset Value, offering price and redemption price per share ($1,493,193,007 ÷ 53,532,323 shares) | $27.89 |
(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, 2022 (Unaudited) | ||
Investment Income | ||
Dividends | $18,691,240 | |
Interest | 6,365 | |
Income from Fidelity Central Funds (including $1,410,412 from security lending) | 1,424,431 | |
Total income | 20,122,036 | |
Expenses | ||
Management fee | ||
Basic fee | $21,583,727 | |
Performance adjustment | 4,648,417 | |
Transfer agent fees | 4,197,240 | |
Distribution and service plan fees | 1,163,551 | |
Accounting fees | 569,309 | |
Custodian fees and expenses | 35,473 | |
Independent trustees' fees and expenses | 11,248 | |
Registration fees | 135,034 | |
Audit | 30,939 | |
Legal | 9,575 | |
Interest | 3,131 | |
Miscellaneous | 11,475 | |
Total expenses before reductions | 32,399,119 | |
Expense reductions | (98,292) | |
Total expenses after reductions | 32,300,827 | |
Net investment income (loss) | (12,178,791) | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 330,759,383 | |
Affiliated issuers | (4,366,938) | |
Foreign currency transactions | (12,426) | |
Total net realized gain (loss) | 326,380,019 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | (1,046,547,233) | |
Affiliated issuers | (6,838,308) | |
Unfunded commitments | 2,227,006 | |
Assets and liabilities in foreign currencies | 3,200 | |
Total change in net unrealized appreciation (depreciation) | (1,051,155,335) | |
Net gain (loss) | (724,775,316) | |
Net increase (decrease) in net assets resulting from operations | $(736,954,107) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended January 31, 2022 (Unaudited) | Year ended July 31, 2021 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $(12,178,791) | $(31,333,822) |
Net realized gain (loss) | 326,380,019 | 1,190,258,956 |
Change in net unrealized appreciation (depreciation) | (1,051,155,335) | 630,831,031 |
Net increase (decrease) in net assets resulting from operations | (736,954,107) | 1,789,756,165 |
Distributions to shareholders | (1,068,881,890) | (414,291,138) |
Share transactions - net increase (decrease) | 1,443,588,060 | 886,906,306 |
Total increase (decrease) in net assets | (362,247,937) | 2,262,371,333 |
Net Assets | ||
Beginning of period | 6,257,097,275 | 3,994,725,942 |
End of period | $5,894,849,338 | $6,257,097,275 |
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, | |||||
2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $34.89 | $26.64 | $26.03 | $27.45 | $22.99 | $19.17 |
Income from Investment Operations | ||||||
Net investment income (loss)A,B | (.10) | (.26)C | (.20) | (.21) | (.18) | (.14) |
Net realized and unrealized gain (loss) | (2.97) | 11.27 | 2.26 | 1.79 | 6.32 | 4.12 |
Total from investment operations | (3.07) | 11.01 | 2.06 | 1.58 | 6.14 | 3.98 |
Distributions from net realized gain | (6.02) | (2.76) | (1.45) | (3.00) | (1.68) | (.16) |
Total distributions | (6.02) | (2.76) | (1.45) | (3.00) | (1.68) | (.16) |
Redemption fees added to paid in capitalA | – | – | – | – | –D | –D |
Net asset value, end of period | $25.80 | $34.89 | $26.64 | $26.03 | $27.45 | $22.99 |
Total ReturnE,F,G | (11.42)% | 44.21% | 8.39% | 5.88% | 28.47% | 20.90% |
Ratios to Average Net AssetsB,H,I | ||||||
Expenses before reductions | 1.27%J | 1.29% | 1.37% | 1.33% | 1.31% | 1.35% |
Expenses net of fee waivers, if any | 1.27%J | 1.29% | 1.37% | 1.33% | 1.31% | 1.35% |
Expenses net of all reductions | 1.27%J | 1.28% | 1.36% | 1.32% | 1.30% | 1.34% |
Net investment income (loss) | (.64)%J | (.82)%C | (.80)% | (.85)% | (.74)% | (.66)% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $332,148 | $387,793 | $268,448 | $285,554 | $315,894 | $218,905 |
Portfolio turnover rateK | 75%J,L | 107% | 126%L | 91%L | 106%L | 140%L |
A Calculated based on average shares outstanding during the period.
B Net investment income (loss) is affected by the timing of the declaration of dividends by any underlying mutual funds or exchange-traded funds (ETFs). Net investment income (loss) of any such underlying funds is not included in the Fund's net investment income (loss) ratio.
C 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 (.91) %.
D Amount represents less than $.005 per share.
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 Total returns do not include the effect of the sales charges.
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).
L 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, | |||||
2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $33.27 | $25.56 | $25.09 | $26.59 | $22.35 | $18.69 |
Income from Investment Operations | ||||||
Net investment income (loss)A,B | (.13) | (.33)C | (.25) | (.26) | (.24) | (.19) |
Net realized and unrealized gain (loss) | (2.80) | 10.77 | 2.17 | 1.72 | 6.13 | 4.01 |
Total from investment operations | (2.93) | 10.44 | 1.92 | 1.46 | 5.89 | 3.82 |
Distributions from net realized gain | (5.94) | (2.73) | (1.45) | (2.96) | (1.65) | (.16) |
Total distributions | (5.94) | (2.73) | (1.45) | (2.96) | (1.65) | (.16) |
Redemption fees added to paid in capitalA | – | – | – | – | –D | –D |
Net asset value, end of period | $24.40 | $33.27 | $25.56 | $25.09 | $26.59 | $22.35 |
Total ReturnE,F,G | (11.53)% | 43.82% | 8.14% | 5.60% | 28.15% | 20.57% |
Ratios to Average Net AssetsB,H,I | ||||||
Expenses before reductions | 1.52%J | 1.55% | 1.63% | 1.60% | 1.58% | 1.62% |
Expenses net of fee waivers, if any | 1.52%J | 1.55% | 1.63% | 1.60% | 1.58% | 1.62% |
Expenses net of all reductions | 1.52%J | 1.53% | 1.62% | 1.59% | 1.57% | 1.61% |
Net investment income (loss) | (.89)%J | (1.08)%C | (1.06)% | (1.12)% | (1.01)% | (.94)% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $82,515 | $98,005 | $70,605 | $75,030 | $82,567 | $64,034 |
Portfolio turnover rateK | 75%J,L | 107% | 126%L | 91%L | 106%L | 140%L |
A Calculated based on average shares outstanding during the period.
B Net investment income (loss) is affected by the timing of the declaration of dividends by any underlying mutual funds or exchange-traded funds (ETFs). Net investment income (loss) of any such underlying funds is not included in the Fund's net investment income (loss) ratio.
C 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 (1.17) %.
D Amount represents less than $.005 per share.
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 Total returns do not include the effect of the sales charges.
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).
L 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, | |||||
2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $29.58 | $23.07 | $22.89 | $24.56 | $20.83 | $17.52 |
Income from Investment Operations | ||||||
Net investment income (loss)A,B | (.18) | (.43)C | (.34) | (.35) | (.34) | (.27) |
Net realized and unrealized gain (loss) | (2.39) | 9.62 | 1.97 | 1.58 | 5.69 | 3.74 |
Total from investment operations | (2.57) | 9.19 | 1.63 | 1.23 | 5.35 | 3.47 |
Distributions from net realized gain | (5.83) | (2.68) | (1.45) | (2.90) | (1.62) | (.16) |
Total distributions | (5.83) | (2.68) | (1.45) | (2.90) | (1.62) | (.16) |
Redemption fees added to paid in capitalA | – | – | – | – | –D | –D |
Net asset value, end of period | $21.18 | $29.58 | $23.07 | $22.89 | $24.56 | $20.83 |
Total ReturnE,F,G | (11.74)% | 43.07% | 7.62% | 5.06% | 27.51% | 19.95% |
Ratios to Average Net AssetsB,H,I | ||||||
Expenses before reductions | 2.03%J | 2.06% | 2.13% | 2.09% | 2.07% | 2.11% |
Expenses net of fee waivers, if any | 2.03%J | 2.06% | 2.13% | 2.09% | 2.07% | 2.11% |
Expenses net of all reductions | 2.03%J | 2.05% | 2.12% | 2.08% | 2.06% | 2.10% |
Net investment income (loss) | (1.40)%J | (1.59)%C | (1.56)% | (1.61)% | (1.50)% | (1.43)% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $72,956 | $88,239 | $77,850 | $96,449 | $139,375 | $102,669 |
Portfolio turnover rateK | 75%J,L | 107% | 126%L | 91%L | 106%L | 140%L |
A Calculated based on average shares outstanding during the period.
B Net investment income (loss) is affected by the timing of the declaration of dividends by any underlying mutual funds or exchange-traded funds (ETFs). Net investment income (loss) of any such underlying funds is not included in the Fund's net investment income (loss) ratio.
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 (1.68) %.
D Amount represents less than $.005 per share.
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 Total returns do not include the effect of the contingent deferred sales charge.
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).
L 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, | |||||
2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $37.02 | $28.07 | $27.27 | $28.59 | $23.84 | $19.82 |
Income from Investment Operations | ||||||
Net investment income (loss)A,B | (.06) | (.18)C | (.13) | (.15) | (.12) | (.09) |
Net realized and unrealized gain (loss) | (3.20) | 11.92 | 2.38 | 1.87 | 6.57 | 4.27 |
Total from investment operations | (3.26) | 11.74 | 2.25 | 1.72 | 6.45 | 4.18 |
Distributions from net realized gain | (6.11) | (2.79) | (1.45) | (3.04) | (1.70) | (.16) |
Total distributions | (6.11) | (2.79) | (1.45) | (3.04) | (1.70) | (.16) |
Redemption fees added to paid in capitalA | – | – | – | – | –D | –D |
Net asset value, end of period | $27.65 | $37.02 | $28.07 | $27.27 | $28.59 | $23.84 |
Total ReturnE,F | (11.31)% | 44.60% | 8.72% | 6.17% | 28.81% | 21.22% |
Ratios to Average Net AssetsB,G,H | ||||||
Expenses before reductions | .99%I | 1.00% | 1.08% | 1.05% | 1.02% | 1.08% |
Expenses net of fee waivers, if any | .99%I | 1.00% | 1.08% | 1.05% | 1.02% | 1.08% |
Expenses net of all reductions | .99%I | .99% | 1.07% | 1.04% | 1.01% | 1.07% |
Net investment income (loss) | (.36)%I | (.53)%C | (.52)% | (.57)% | (.45)% | (.40)% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $3,237,233 | $4,540,695 | $2,839,506 | $2,888,038 | $3,269,548 | $2,336,762 |
Portfolio turnover rateJ | 75%I,K | 107% | 126%K | 91%K | 106%K | 140%K |
A Calculated based on average shares outstanding during the period.
B Net investment income (loss) is affected by the timing of the declaration of dividends by any underlying mutual funds or exchange-traded funds (ETFs). Net investment income (loss) of any such underlying funds is not included in the Fund's net investment income (loss) ratio.
C 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 (.62) %.
D Amount represents less than $.005 per share.
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).
K 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, | |||||
2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $37.13 | $28.15 | $27.35 | $28.66 | $23.90 | $19.86 |
Income from Investment Operations | ||||||
Net investment income (loss)A,B | (.06) | (.19)C | (.14) | (.15) | (.12) | (.08) |
Net realized and unrealized gain (loss) | (3.22) | 11.96 | 2.39 | 1.88 | 6.58 | 4.28 |
Total from investment operations | (3.28) | 11.77 | 2.25 | 1.73 | 6.46 | 4.20 |
Distributions from net realized gain | (6.10) | (2.79) | (1.45) | (3.04) | (1.70) | (.16) |
Total distributions | (6.10) | (2.79) | (1.45) | (3.04) | (1.70) | (.16) |
Redemption fees added to paid in capitalA | – | – | – | – | –D | –D |
Net asset value, end of period | $27.75 | $37.13 | $28.15 | $27.35 | $28.66 | $23.90 |
Total ReturnE,F | (11.31)% | 44.57% | 8.70% | 6.18% | 28.78% | 21.28% |
Ratios to Average Net AssetsB,G,H | ||||||
Expenses before reductions | 1.02%I | 1.04% | 1.11% | 1.06% | 1.03% | 1.06% |
Expenses net of fee waivers, if any | 1.01%I | 1.04% | 1.11% | 1.06% | 1.03% | 1.06% |
Expenses net of all reductions | 1.01%I | 1.03% | 1.10% | 1.06% | 1.02% | 1.05% |
Net investment income (loss) | (.39)%I | (.57)%C | (.54)% | (.58)% | (.46)% | (.38)% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $676,805 | $775,746 | $540,553 | $590,311 | $678,576 | $390,032 |
Portfolio turnover rateJ | 75%I,K | 107% | 126%K | 91%K | 106%K | 140%K |
A Calculated based on average shares outstanding during the period.
B Net investment income (loss) is affected by the timing of the declaration of dividends by any underlying mutual funds or exchange-traded funds (ETFs). Net investment income (loss) of any such underlying funds is not included in the Fund's net investment income (loss) ratio.
C 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 (.66) %.
D Amount represents less than $.005 per share.
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).
K 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, | |||||
2022 | 2021 | 2020 | 2019 | 2018 | 2017 A | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $37.32 | $28.26 | $27.41 | $28.71 | $23.91 | $21.39 |
Income from Investment Operations | ||||||
Net investment income (loss)B,C | (.04) | (.15)D | (.10) | (.11) | (.09) | (.05) |
Net realized and unrealized gain (loss) | (3.23) | 12.01 | 2.40 | 1.87 | 6.61 | 2.57 |
Total from investment operations | (3.27) | 11.86 | 2.30 | 1.76 | 6.52 | 2.52 |
Distributions from net realized gain | (6.16) | (2.80) | (1.45) | (3.06) | (1.72) | – |
Total distributions | (6.16) | (2.80) | (1.45) | (3.06) | (1.72) | – |
Redemption fees added to paid in capitalB | – | – | – | – | –E | –E |
Net asset value, end of period | $27.89 | $37.32 | $28.26 | $27.41 | $28.71 | $23.91 |
Total ReturnF,G | (11.26)% | 44.75% | 8.87% | 6.29% | 29.02% | 11.78% |
Ratios to Average Net AssetsC,H,I | ||||||
Expenses before reductions | .88%J | .90% | .97% | .92% | .89% | .90%J |
Expenses net of fee waivers, if any | .88%J | .90% | .96% | .92% | .89% | .90%J |
Expenses net of all reductions | .88%J | .89% | .95% | .92% | .88% | .89%J |
Net investment income (loss) | (.25)%J | (.43)%D | (.40)% | (.44)% | (.32)% | (.44)%J |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $1,493,193 | $366,620 | $197,764 | $183,552 | $132,928 | $18,447 |
Portfolio turnover rateK | 75%J,L | 107% | 126%L | 91%L | 106%L | 140%L |
A For the period February 1, 2017 (commencement of sale of shares) through July 31, 2017.
B Calculated based on average shares outstanding during the period.
C Net investment income (loss) is affected by the timing of the declaration of dividends by any underlying mutual funds or exchange-traded funds (ETFs). Net investment income (loss) of any such underlying funds is not included in the Fund's net investment income (loss) ratio.
D 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 (.52) %.
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).
L 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, 2022
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, 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 eight years from the initial date of purchase, with certain exceptions.
2. Investments in Fidelity Central Funds.
Funds may invest 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 Schedule of Investments lists any Fidelity Central Funds held as an investment as of period end, but does not include the underlying holdings of each Fidelity Central Fund. An investing fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
Based on its investment objective, each Fidelity Central Fund may invest or participate in various investment vehicles or strategies that are similar to those of the investing fund. These strategies are consistent with the investment objectives of the investing fund and may involve certain economic risks which may cause a decline in value of each of the Fidelity Central Funds and thus a decline in the value of the investing fund.
Fidelity Central Fund | Investment Manager | Investment Objective | Investment Practices | Expense Ratio(a) |
Fidelity Money Market Central Funds | Fidelity Management & Research Company LLC (FMR) | Each fund seeks to obtain a high level of current income consistent with the preservation of capital and liquidity. | Short-term Investments | Less than .005% |
(a) Expenses expressed as a percentage of average net assets and are as of each underlying Central Fund's most recent annual or semi-annual shareholder report.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds which contain the significant accounting policies (including investment valuation policies) of those funds, and are not covered by the Report of Independent Registered Public Accounting Firm, are available on the Securities and Exchange Commission 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 Fund's Schedule of Investments lists any underlying mutual funds or exchange-traded funds (ETFs) but does not include the underlying holdings of these funds. 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 – Unadjusted 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.
ETFs are valued at their last sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day but the exchange reports a closing bid level, ETFs are valued at the closing bid and would be categorized as Level 1 in the hierarchy. In the event there was no closing bid, ETFs may be valued by another method that the Board believes reflects fair value in accordance with the Board's fair value pricing policies and may be categorized as Level 2 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
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 | $ 206,615,246 | Market approach | Transaction price | $1.35 - $73.27 / $41.49 | Increase |
Discount rate | 17.8% - 27.7% / 22.9% | Decrease | |||
Discounted cash flow | Weighted average cost of capital (WACC) | 19.6% | Decrease | ||
Discount for lack of marketability | 10.0% | Decrease | |||
Growth rate | 2.0% | Increase |
(a) Represents the directional change in the fair value of the Level 3 investments that could have resulted from an increase in the corresponding input as of period end. A decrease to the unobservable input would have had the opposite effect. Significant changes in these inputs may have resulted in a significantly higher or lower fair value measurement at period end.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of January 31, 2022, 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. Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of a fund include an amount in addition to trade execution, which may be rebated back to a fund. Any such rebates are included in net realized gain (loss) on investments in the Statement of Operations. 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. Funds may file withholding tax reclaims in certain jurisdictions to recover a portion of amounts previously withheld. Any withholding tax reclaims income is included in the Statement of Operations in dividends. Any receivables for withholding tax reclaims are included in the Statement of Assets and Liabilities in dividends receivable.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of a 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 a fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred, as applicable. Certain expense reductions may also differ by class, if applicable. 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. Expenses included in the accompanying financial statements reflect the expenses of that fund and do not include any expenses associated with any underlying mutual funds or exchange-traded funds. Although not included in a fund's expenses, a fund indirectly bears its proportionate share of these expenses through the net asset value of each underlying mutual fund or exchange-traded fund. 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), partnerships, net operating losses and losses deferred due to wash sales and excise tax regulations.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
Gross unrealized appreciation | $1,098,193,407 |
Gross unrealized depreciation | (649,256,797) |
Net unrealized appreciation (depreciation) | $448,936,610 |
Tax cost | $5,849,657,283 |
Restricted Securities (including Private Placements). Funds 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 held at period end is included at the end of the Schedule of Investments, if applicable.
Special Purpose Acquisition Companies. Funds may invest in stock, warrants, and other securities of special purpose acquisition companies (SPACs) or similar special purpose entities. A SPAC is a publicly traded company that raises investment capital via an initial public offering (IPO) for the purpose of acquiring the equity securities of one or more existing companies via merger, business combination, acquisition or other similar transactions within a designated time frame.
Private Investment in Public Equity. Funds may acquire equity securities of an issuer through a private investment in a public equity (PIPE) transaction, including through commitments to purchase securities on a when-issued basis. A PIPE typically involves the purchase of securities directly from a publicly traded company in a private placement transaction. Securities purchased through PIPE transactions will be restricted from trading and considered illiquid until a resale registration statement for the shares is filed and declared effective.
At the current and/or prior period end, the Fund had commitments to purchase when-issued securities through PIPE transactions with SPACs. The commitments are contingent upon the SPACs acquiring the securities of target companies. Unrealized appreciation (depreciation) on any commitments outstanding at period end is separately presented in the Statements of Assets and Liabilities as Unrealized appreciation (depreciation) on unfunded commitments, and any change in unrealized appreciation (depreciation) on unfunded commitments during the period is separately presented in the Statement of Operations, as applicable.
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 Small Cap Growth Fund | 1,035,043 | .02 |
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, as applicable, are noted in the table below.
Purchases ($) | Sales ($) | |
Fidelity Small Cap Growth Fund | 2,672,708,458 | 2,368,178,831 |
Unaffiliated Redemptions In-Kind. Shares that were redeemed in-kind for investments, including accrued interest and cash, if any, are shown in the table below. The net realized gain or loss 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. There was no gain or loss for federal income tax purposes.
Shares | Total net realized gain or loss ($) | Total Proceeds ($) | Participating classes | |
Fidelity Small Cap Growth Fund | 242,137 | 3,208,262 | 8,288,363 | Small Cap Growth |
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 .22% 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 .82% 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% | $485,916 | $15,983 |
Class M | .25% | .25% | 245,738 | – |
Class C | .75% | .25% | 431,897 | 50,404 |
$1,163,551 | $66,387 |
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 | $66,897 |
Class M | 4,283 |
Class C(a) | 480 |
$71,660 |
(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 | $340,765 | .18 |
Class M | 85,825 | .17 |
Class C | 80,386 | .19 |
Small Cap Growth | 2,768,042 | .14 |
Class I | 674,480 | .17 |
Class Z | 247,742 | .04 |
$4,197,240 |
(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 | $85,984 |
Interfund Lending Program. Pursuant to an Exemptive Order issued by the Securities and Exchange Commission (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 | $12,713,286 | .32% | $3,131 |
Interfund Trades. Funds may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Any interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note. Interfund trades during the period are noted in the table below.
Purchases ($) | Sales ($) | Realized Gain (Loss) ($) | |
Fidelity Small Cap Growth Fund | 121,444,781 | 159,198,500 | 16,494,031 |
Other. During the period, the investment adviser reimbursed the Fund for certain losses as follows:
Amount ($) | |
Fidelity Small Cap Growth Fund | 10,419 |
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. During the period, there were no borrowings on this line of credit.
Amount | |
Fidelity Small Cap Growth Fund | $5,103 |
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 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 | $138,403 | $247,697 | $5,759,194 |
8. Expense Reductions.
Through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses. During the period, custodian credits reduced the Fund's expenses by $153.
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 $98,139.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended January 31, 2022 | Year ended July 31, 2021 | |
Fidelity Small Cap Growth Fund | ||
Distributions to shareholders | ||
Class A | $67,979,799 | $28,072,163 |
Class M | 17,907,882 | 7,663,523 |
Class C | 17,539,783 | 8,833,078 |
Small Cap Growth | 638,250,356 | 295,452,508 |
Class I | 130,451,281 | 54,275,270 |
Class Z | 196,752,789 | 19,994,596 |
Total | $1,068,881,890 | $414,291,138 |
10. Share Transactions.
Share transactions for each class were as follows and may contain in-kind transactions, automatic conversions between classes or exchanges between affiliated funds:
Shares | Shares | Dollars | Dollars | |
Six months ended January 31, 2022 | Year ended July 31, 2021 | Six months ended January 31, 2022 | Year ended July 31, 2021 | |
Fidelity Small Cap Growth Fund | ||||
Class A | ||||
Shares sold | 1,372,746 | 2,866,158 | $43,005,139 | $94,142,976 |
Reinvestment of distributions | 2,151,573 | 992,952 | 67,245,012 | 27,768,422 |
Shares redeemed | (1,764,644) | (2,820,344) | (54,810,050) | (90,226,445) |
Net increase (decrease) | 1,759,675 | 1,038,766 | $55,440,101 | $31,684,953 |
Class M | ||||
Shares sold | 230,319 | 490,758 | $6,756,899 | $15,299,858 |
Reinvestment of distributions | 597,534 | 283,607 | 17,701,288 | 7,574,791 |
Shares redeemed | (391,567) | (590,978) | (11,152,075) | (18,376,525) |
Net increase (decrease) | 436,286 | 183,387 | $13,306,112 | $4,498,124 |
Class C | ||||
Shares sold | 370,835 | 545,845 | $9,604,258 | $15,197,876 |
Reinvestment of distributions | 673,112 | 368,546 | 17,397,814 | 8,764,070 |
Shares redeemed | (581,615) | (1,306,378) | (15,013,902) | (35,873,924) |
Net increase (decrease) | 462,332 | (391,987) | $11,988,170 | $(11,911,978) |
Small Cap Growth | ||||
Shares sold | 11,659,580 | 40,178,307 | $382,874,176 | $1,388,678,427 |
Reinvestment of distributions | 18,119,358 | 9,508,156 | 605,852,496 | 282,245,288 |
Shares redeemed | (35,361,416) | (28,193,491) | (1,257,405,731) | (959,494,567) |
Net increase (decrease) | (5,582,478) | 21,492,972 | $(268,679,059) | $711,429,148 |
Class I | ||||
Shares sold | 3,711,909 | 6,856,746 | $122,177,480 | $232,528,912 |
Reinvestment of distributions | 3,793,722 | 1,777,184 | 127,231,880 | 52,852,239 |
Shares redeemed | (4,008,369) | (6,942,425) | (131,268,162) | (235,475,367) |
Net increase (decrease) | 3,497,262 | 1,691,505 | $118,141,198 | $49,905,784 |
Class Z | ||||
Shares sold | 39,727,001 | 4,788,627 | $1,378,807,941 | $170,967,105 |
Reinvestment of distributions | 5,572,104 | 549,462 | 186,739,643 | 16,414,402 |
Shares redeemed | (1,589,626) | (2,512,801) | (52,156,046) | (86,081,232) |
Net increase (decrease) | 43,709,479 | 2,825,288 | $1,513,391,538 | $101,300,275 |
11. Other.
A 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, a fund may also enter into contracts that provide general indemnifications. A fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against a fund. The risk of material loss from such claims is considered remote.
At the end of the period, the following mutual funds managed by the investment adviser or its affiliates were the owners of record of 10% or more of the total outstanding shares.
Strategic Advisers Fidelity U.S. Total Stock Fund | |
Fidelity Small Cap Growth Fund | 11% |
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, 2021 to January 31, 2022).
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, 2021 | Ending Account Value January 31, 2022 | Expenses Paid During Period-B August 1, 2021 to January 31, 2022 | |
Fidelity Small Cap Growth Fund | ||||
Class A | 1.27% | |||
Actual | $1,000.00 | $885.80 | $6.04 | |
Hypothetical-C | $1,000.00 | $1,018.80 | $6.46 | |
Class M | 1.52% | |||
Actual | $1,000.00 | $884.70 | $7.22 | |
Hypothetical-C | $1,000.00 | $1,017.54 | $7.73 | |
Class C | 2.03% | |||
Actual | $1,000.00 | $882.60 | $9.63 | |
Hypothetical-C | $1,000.00 | $1,014.97 | $10.31 | |
Small Cap Growth | .99% | |||
Actual | $1,000.00 | $886.90 | $4.71 | |
Hypothetical-C | $1,000.00 | $1,020.21 | $5.04 | |
Class I | 1.01% | |||
Actual | $1,000.00 | $886.90 | $4.80 | |
Hypothetical-C | $1,000.00 | $1,020.11 | $5.14 | |
Class Z | .88% | |||
Actual | $1,000.00 | $887.40 | $4.19 | |
Hypothetical-C | $1,000.00 | $1,020.77 | $4.48 |
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
SCP-SANN-0422
1.803700.117
Fidelity® Small Cap Growth K6 Fund
Semi-Annual Report
January 31, 2022
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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. © 2022 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 COVID-19 emerged as a public health emergency that had a major influence on financial markets, primarily based on its impact on the global economy and corporate earnings. On March 11, 2020, the World Health Organization declared the COVID-19 outbreak a pandemic, citing sustained risk of further global spread. The pandemic prompted a number of measures to limit the spread of COVID-19, 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. To help stem the turmoil, the U.S. government took unprecedented action – in concert with the U.S. Federal Reserve and central banks around the world – to help support consumers, businesses, and the broader economy, and to limit disruption to the financial system.
In general, the overall impact of the pandemic lessened in 2021, amid a resilient economy and widespread distribution of three COVID-19 vaccines granted emergency use authorization from the U.S. Food and Drug Administration (FDA) early in the year. Still, the situation remains dynamic, and the extent and duration of its influence on financial markets and the economy is highly uncertain, due in part to a recent spike in cases based on highly contagious variants of the coronavirus.
Extreme events such as the COVID-19 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 continue to take extra steps to be responsive to customer needs. We encourage you to visit us online, where we offer ongoing updates, commentary, and analysis on the markets and our funds.
Investment Summary (Unaudited)
Top Ten Stocks as of January 31, 2022
% of fund's net assets | |
Crocs, Inc. | 1.8 |
BJ's Wholesale Club Holdings, Inc. | 1.7 |
TechTarget, Inc. | 1.6 |
Figs, Inc. Class A | 1.6 |
KBR, Inc. | 1.4 |
Willscot Mobile Mini Holdings | 1.4 |
SiTime Corp. | 1.3 |
Insulet Corp. | 1.2 |
Lindblad Expeditions Holdings | 1.2 |
CACI International, Inc. Class A | 1.2 |
14.4 |
Top Five Market Sectors as of January 31, 2022
% of fund's net assets | |
Health Care | 24.5 |
Information Technology | 19.0 |
Industrials | 16.3 |
Consumer Discretionary | 14.7 |
Financials | 6.7 |
Asset Allocation (% of fund's net assets)
As of January 31, 2022* | ||
Stocks | 96.6% | |
Convertible Securities | 2.7% | |
Short-Term Investments and Net Other Assets (Liabilities) | 0.7% |
* Foreign investments - 11.7%
Schedule of Investments January 31, 2022 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 95.6% | |||
Shares | Value | ||
COMMUNICATION SERVICES - 4.1% | |||
Diversified Telecommunication Services - 0.2% | |||
IDT Corp. Class B (a) | 65,222 | $2,447,782 | |
Interactive Media & Services - 1.4% | |||
Bumble, Inc. | 77,100 | 2,275,221 | |
CarGurus, Inc. Class A (a) | 227,754 | 7,265,353 | |
ZipRecruiter, Inc. (a) | 317,048 | 6,876,771 | |
16,417,345 | |||
Media - 1.9% | |||
Integral Ad Science Holding Corp. (b) | 180,738 | 3,025,554 | |
TechTarget, Inc. (a) | 218,086 | 18,088,053 | |
21,113,607 | |||
Wireless Telecommunication Services - 0.6% | |||
Gogo, Inc. (a)(b) | 517,888 | 6,447,706 | |
TOTAL COMMUNICATION SERVICES | 46,426,440 | ||
CONSUMER DISCRETIONARY - 14.7% | |||
Auto Components - 0.6% | |||
Gentherm, Inc. (a) | 83,072 | 7,259,662 | |
Diversified Consumer Services - 0.4% | |||
Duolingo, Inc. (a) | 34,350 | 3,435,344 | |
Rover Group, Inc. Class A (a)(b) | 199,259 | 1,301,161 | |
4,736,505 | |||
Hotels, Restaurants & Leisure - 3.1% | |||
Churchill Downs, Inc. | 44,734 | 9,407,560 | |
Dutch Bros, Inc. (b) | 55,698 | 2,904,651 | |
Everi Holdings, Inc. (a) | 166,099 | 3,283,777 | |
Lindblad Expeditions Holdings (a) | 788,337 | 13,299,245 | |
NeoGames SA (a) | 50,286 | 1,190,270 | |
Planet Fitness, Inc. (a) | 56,968 | 5,049,644 | |
35,135,147 | |||
Household Durables - 1.6% | |||
GoPro, Inc. Class A (a) | 316,831 | 2,807,123 | |
Helen of Troy Ltd. (a) | 9,340 | 1,955,142 | |
Lovesac (a)(b) | 187,130 | 10,076,951 | |
Sonos, Inc. (a)(b) | 120,050 | 3,027,661 | |
17,866,877 | |||
Internet & Direct Marketing Retail - 1.3% | |||
BARK, Inc. (a)(b) | 482,009 | 1,817,174 | |
BARK, Inc. (c) | 267,300 | 1,007,721 | |
BARK, Inc. warrants 8/29/25 (a) | 130,921 | 80,124 | |
Porch Group, Inc. Class A (a)(b) | 770,098 | 8,124,534 | |
Revolve Group, Inc. (a) | 51,590 | 2,544,419 | |
thredUP, Inc. (a)(b) | 170,922 | 1,584,447 | |
15,158,419 | |||
Leisure Products - 0.2% | |||
Callaway Golf Co. (a) | 81,300 | 1,939,818 | |
Specialty Retail - 3.9% | |||
American Eagle Outfitters, Inc. (b) | 556,283 | 12,699,941 | |
Dick's Sporting Goods, Inc. | 35,907 | 4,143,668 | |
Fanatics, Inc. Class A (c)(d) | 163,048 | 11,061,176 | |
Floor & Decor Holdings, Inc. Class A (a) | 30,652 | 3,332,485 | |
Lithia Motors, Inc. Class A (sub. vtg.) | 12,351 | 3,608,098 | |
Musti Group OYJ | 77,159 | 2,306,014 | |
Warby Parker, Inc. (a)(b) | 51,352 | 1,908,754 | |
Williams-Sonoma, Inc. | 30,361 | 4,874,155 | |
43,934,291 | |||
Textiles, Apparel & Luxury Goods - 3.6% | |||
Algolia, Inc. (c)(d) | 43,269 | 1,265,404 | |
Crocs, Inc. (a) | 195,309 | 20,042,601 | |
Deckers Outdoor Corp. (a) | 21,082 | 6,751,089 | |
Kontoor Brands, Inc. | 136,976 | 6,751,547 | |
Tapestry, Inc. | 138,872 | 5,270,192 | |
40,080,833 | |||
TOTAL CONSUMER DISCRETIONARY | 166,111,552 | ||
CONSUMER STAPLES - 2.7% | |||
Food & Staples Retailing - 2.0% | |||
BJ's Wholesale Club Holdings, Inc. (a) | 315,678 | 19,404,727 | |
Grocery Outlet Holding Corp. (a)(b) | 120,003 | 3,045,676 | |
22,450,403 | |||
Food Products - 0.4% | |||
Darling Ingredients, Inc. (a) | 70,098 | 4,470,149 | |
The Real Good Food Co. LLC Class B unit | 45,833 | 245,023 | |
4,715,172 | |||
Personal Products - 0.3% | |||
The Beauty Health Co. (a)(b) | 214,511 | 3,046,056 | |
TOTAL CONSUMER STAPLES | 30,211,631 | ||
ENERGY - 3.4% | |||
Energy Equipment & Services - 0.4% | |||
TechnipFMC PLC (a) | 662,782 | 4,301,455 | |
Oil, Gas & Consumable Fuels - 3.0% | |||
Antero Resources Corp. (a) | 503,103 | 9,825,602 | |
Enviva, Inc. | 134,154 | 9,388,097 | |
Genesis Energy LP | 614,119 | 6,933,404 | |
Northern Oil & Gas, Inc. | 92,599 | 2,177,928 | |
PDC Energy, Inc. | 28,600 | 1,695,122 | |
Range Resources Corp. (a) | 227,591 | 4,381,127 | |
34,401,280 | |||
TOTAL ENERGY | 38,702,735 | ||
FINANCIALS - 6.7% | |||
Banks - 2.3% | |||
East West Bancorp, Inc. | 26,386 | 2,278,167 | |
Glacier Bancorp, Inc. | 70,385 | 3,655,093 | |
Independent Bank Group, Inc. | 28,900 | 2,194,088 | |
Meta Financial Group, Inc. | 42,421 | 2,522,353 | |
Metropolitan Bank Holding Corp. (a) | 22,727 | 2,272,700 | |
PacWest Bancorp | 73,376 | 3,406,848 | |
Pinnacle Financial Partners, Inc. | 32,290 | 3,122,766 | |
Signature Bank | 11,113 | 3,385,353 | |
Silvergate Capital Corp. (a) | 16,833 | 1,813,587 | |
Starling Bank Ltd. Series D (a)(c)(d) | 391,300 | 1,199,871 | |
25,850,826 | |||
Capital Markets - 2.0% | |||
Impax Asset Management Group PLC | 117,858 | 1,743,529 | |
Lazard Ltd. Class A | 74,422 | 3,247,776 | |
LPL Financial | 33,004 | 5,687,249 | |
Morningstar, Inc. | 8,039 | 2,310,489 | |
Perella Weinberg Partners (c) | 457,262 | 4,965,865 | |
StepStone Group, Inc. Class A | 113,457 | 3,972,130 | |
21,927,038 | |||
Consumer Finance - 0.3% | |||
OneMain Holdings, Inc. | 62,222 | 3,214,389 | |
Insurance - 1.7% | |||
American Financial Group, Inc. | 38,774 | 5,051,477 | |
Assurant, Inc. | 45,261 | 6,902,755 | |
BRP Group, Inc. (a) | 209,436 | 6,391,987 | |
HCI Group, Inc. | 15,200 | 1,031,624 | |
19,377,843 | |||
Thrifts & Mortgage Finance - 0.4% | |||
Walker & Dunlop, Inc. | 37,375 | 4,948,824 | |
TOTAL FINANCIALS | 75,318,920 | ||
HEALTH CARE - 24.1% | |||
Biotechnology - 9.9% | |||
4D Molecular Therapeutics, Inc. (a) | 59,180 | 935,044 | |
ADC Therapeutics SA (a) | 56,818 | 902,838 | |
Agios Pharmaceuticals, Inc. (a) | 68,688 | 2,121,772 | |
Allovir, Inc. (a)(b) | 114,617 | 935,275 | |
ALX Oncology Holdings, Inc. (a) | 150,189 | 2,403,024 | |
Argenx SE ADR (a) | 17,509 | 4,714,473 | |
Ascendis Pharma A/S sponsored ADR (a) | 53,351 | 6,489,616 | |
Avid Bioservices, Inc. (a) | 136,847 | 2,582,303 | |
Bicycle Therapeutics PLC ADR (a) | 33,600 | 1,640,688 | |
BioCryst Pharmaceuticals, Inc. (a)(b) | 117,000 | 1,807,650 | |
Biohaven Pharmaceutical Holding Co. Ltd. (a) | 22,741 | 3,021,597 | |
Bolt Biotherapeutics, Inc. | 10,363 | 39,794 | |
Celldex Therapeutics, Inc. (a) | 105,637 | 3,275,803 | |
Century Therapeutics, Inc. | 80,986 | 1,055,248 | |
Cyteir Therapeutics, Inc. | 120,462 | 732,409 | |
Cytokinetics, Inc. (a) | 193,792 | 6,431,956 | |
Erasca, Inc. | 149,339 | 1,769,667 | |
Exelixis, Inc. (a) | 130,985 | 2,370,829 | |
Forma Therapeutics Holdings, Inc. (a) | 86,521 | 1,024,409 | |
Global Blood Therapeutics, Inc. (a) | 120,261 | 3,469,530 | |
Graphite Bio, Inc. | 84,810 | 792,125 | |
Halozyme Therapeutics, Inc. (a) | 68,257 | 2,362,375 | |
Imago BioSciences, Inc. | 48,084 | 972,258 | |
Immunocore Holdings PLC ADR | 62,225 | 1,404,418 | |
ImmunoGen, Inc. (a) | 255,387 | 1,442,937 | |
Instil Bio, Inc. (a) | 20,497 | 237,970 | |
Instil Bio, Inc. (e) | 277,674 | 3,223,795 | |
Janux Therapeutics, Inc. (b) | 81,962 | 1,248,281 | |
Keros Therapeutics, Inc. (a) | 48,507 | 2,249,270 | |
Kura Oncology, Inc. (a) | 133,280 | 1,877,915 | |
Kymera Therapeutics, Inc. (a) | 56,968 | 2,392,656 | |
Monte Rosa Therapeutics, Inc. (b) | 120,166 | 1,521,302 | |
Morphic Holding, Inc. (a) | 84,604 | 3,589,748 | |
Nuvalent, Inc. (e) | 124,141 | 1,674,662 | |
Passage Bio, Inc. (a) | 4,525 | 22,761 | |
Prelude Therapeutics, Inc. (a)(b) | 134,262 | 1,333,222 | |
ProQR Therapeutics BV (a)(b) | 597,311 | 3,255,345 | |
Protagonist Therapeutics, Inc. (a) | 143,737 | 4,210,057 | |
PTC Therapeutics, Inc. (a) | 96,578 | 3,884,367 | |
Relay Therapeutics, Inc. (a)(b) | 193,380 | 4,279,499 | |
Repare Therapeutics, Inc. (a)(b) | 101,197 | 1,561,470 | |
Revolution Medicines, Inc. (a) | 89,599 | 1,928,170 | |
Tango Therapeutics, Inc. (a) | 113,500 | 968,155 | |
Tenaya Therapeutics, Inc. (a) | 152,945 | 1,823,104 | |
TG Therapeutics, Inc. (a) | 192,814 | 2,230,858 | |
Tyra Biosciences, Inc. (b) | 131,983 | 1,730,297 | |
United Therapeutics Corp. (a) | 26,841 | 5,418,393 | |
Vaxcyte, Inc. (a) | 4,900 | 93,296 | |
Vericel Corp. (a)(b) | 57,953 | 2,061,968 | |
Verve Therapeutics, Inc. | 79,726 | 2,297,703 | |
Xenon Pharmaceuticals, Inc. (a) | 78,313 | 2,123,849 | |
111,936,151 | |||
Health Care Equipment & Supplies - 5.5% | |||
Envista Holdings Corp. (a) | 179,234 | 7,750,078 | |
Figs, Inc. Class A (a)(b) | 796,108 | 17,896,508 | |
Globus Medical, Inc. (a) | 62,474 | 4,168,890 | |
Insulet Corp. (a) | 56,024 | 13,893,952 | |
Integer Holdings Corp. (a) | 60,743 | 4,762,859 | |
LivaNova PLC (a) | 50,124 | 3,764,814 | |
Minerva Surgical, Inc. (b) | 159,805 | 746,289 | |
Neuronetics, Inc. (a) | 32,013 | 114,607 | |
NeuroPace, Inc. (a)(b) | 219,577 | 1,769,791 | |
OrthoPediatrics Corp. (a) | 44,617 | 2,109,938 | |
TransMedics Group, Inc. (a) | 128,134 | 2,033,487 | |
ViewRay, Inc. (a) | 615,101 | 2,675,689 | |
61,686,902 | |||
Health Care Providers & Services - 4.1% | |||
Acadia Healthcare Co., Inc. (a) | 119,057 | 6,268,351 | |
Accolade, Inc. (a) | 27,261 | 520,685 | |
agilon health, Inc. (a) | 244,924 | 4,060,840 | |
Guardant Health, Inc. (a) | 12,300 | 855,465 | |
LifeStance Health Group, Inc. | 146,678 | 1,119,153 | |
Molina Healthcare, Inc. (a) | 24,324 | 7,065,636 | |
Option Care Health, Inc. (a) | 267,865 | 6,260,005 | |
Owens & Minor, Inc. | 46,917 | 1,974,737 | |
R1 RCM, Inc. (a) | 405,732 | 9,648,307 | |
Surgery Partners, Inc. (a) | 152,828 | 6,521,171 | |
The Joint Corp. (a) | 33,522 | 1,811,529 | |
46,105,879 | |||
Health Care Technology - 2.1% | |||
Certara, Inc. (a) | 87,150 | 2,329,520 | |
Definitive Healthcare Corp. | 56,403 | 1,234,098 | |
Doximity, Inc. | 49,771 | 2,268,064 | |
Evolent Health, Inc. (a) | 165,452 | 3,922,867 | |
Health Catalyst, Inc. (a) | 86,617 | 2,585,517 | |
Inspire Medical Systems, Inc. (a) | 30,770 | 6,809,093 | |
OptimizeRx Corp. (a)(b) | 35,300 | 1,586,029 | |
Phreesia, Inc. (a) | 68,430 | 2,134,332 | |
Schrodinger, Inc. (a) | 42,988 | 1,218,710 | |
24,088,230 | |||
Life Sciences Tools & Services - 1.6% | |||
Absci Corp. (b) | 141,135 | 949,839 | |
Absci Corp. (e) | 32,701 | 220,078 | |
Nanostring Technologies, Inc. (a) | 94,465 | 3,279,825 | |
Olink Holding AB ADR (a)(b) | 167,639 | 2,712,399 | |
Pacific Biosciences of California, Inc. (a) | 27,100 | 302,978 | |
Syneos Health, Inc. (a) | 110,118 | 9,972,286 | |
Veterinary Emergency Group LLC Class A (c)(d)(f) | 6,000 | 192,865 | |
17,630,270 | |||
Pharmaceuticals - 0.9% | |||
Arvinas Holding Co. LLC (a) | 53,893 | 3,852,811 | |
Edgewise Therapeutics, Inc. (a) | 157,676 | 2,144,394 | |
Ikena Oncology, Inc. (a) | 15,508 | 150,893 | |
Ikena Oncology, Inc. (e) | 114,928 | 1,118,249 | |
NGM Biopharmaceuticals, Inc. (a) | 49,300 | 779,433 | |
Pharvaris BV (b) | 123,453 | 2,122,157 | |
10,167,937 | |||
TOTAL HEALTH CARE | 271,615,369 | ||
INDUSTRIALS - 15.6% | |||
Aerospace & Defense - 0.3% | |||
BWX Technologies, Inc. | 75,077 | 3,341,677 | |
Air Freight & Logistics - 0.7% | |||
Air Transport Services Group, Inc. (a) | 88,400 | 2,373,540 | |
Hub Group, Inc. Class A (a) | 69,205 | 5,240,203 | |
7,613,743 | |||
Building Products - 1.9% | |||
Builders FirstSource, Inc. (a) | 133,877 | 9,102,297 | |
Simpson Manufacturing Co. Ltd. | 27,461 | 3,097,326 | |
The AZEK Co., Inc. (a) | 107,298 | 3,544,053 | |
UFP Industries, Inc. | 80,382 | 6,419,307 | |
22,162,983 | |||
Commercial Services & Supplies - 0.7% | |||
Driven Brands Holdings, Inc. | 163,679 | 4,623,932 | |
HNI Corp. | 89,321 | 3,746,123 | |
8,370,055 | |||
Construction & Engineering - 1.6% | |||
NV5 Global, Inc. (a) | 20,100 | 2,102,259 | |
Willscot Mobile Mini Holdings (a) | 424,261 | 15,714,627 | |
17,816,886 | |||
Electrical Equipment - 2.1% | |||
Acuity Brands, Inc. | 21,644 | 4,145,475 | |
nVent Electric PLC | 157,860 | 5,460,377 | |
Regal Rexnord Corp. | 54,121 | 8,577,096 | |
Sensata Technologies, Inc. PLC (a) | 93,998 | 5,391,725 | |
23,574,673 | |||
Machinery - 1.7% | |||
Crane Co. | 87,303 | 9,036,734 | |
ITT, Inc. | 60,279 | 5,540,846 | |
Kornit Digital Ltd. (a) | 15,739 | 1,653,539 | |
Mueller Industries, Inc. | 50,963 | 2,632,749 | |
18,863,868 | |||
Professional Services - 4.8% | |||
Alight, Inc. Class A (a) | 637,121 | 6,154,589 | |
ASGN, Inc. (a) | 101,153 | 11,619,445 | |
CACI International, Inc. Class A (a) | 52,489 | 12,988,928 | |
First Advantage Corp. | 65,976 | 1,116,314 | |
KBR, Inc. | 362,927 | 15,751,032 | |
Korn Ferry | 56,294 | 3,736,796 | |
Sterling Check Corp. (b) | 45,000 | 900,450 | |
TriNet Group, Inc. (a) | 20,861 | 1,777,357 | |
54,044,911 | |||
Trading Companies & Distributors - 1.8% | |||
Applied Industrial Technologies, Inc. | 56,958 | 5,580,745 | |
Beacon Roofing Supply, Inc. (a) | 116,627 | 6,399,323 | |
Custom Truck One Source, Inc. Class A (a)(b) | 497,423 | 4,088,817 | |
Univar, Inc. (a) | 158,894 | 4,210,691 | |
20,279,576 | |||
TOTAL INDUSTRIALS | 176,068,372 | ||
INFORMATION TECHNOLOGY - 17.7% | |||
Communications Equipment - 0.7% | |||
Lumentum Holdings, Inc. (a) | 74,827 | 7,593,444 | |
Electronic Equipment & Components - 1.1% | |||
Fabrinet (a) | 80,335 | 9,090,709 | |
TD SYNNEX Corp. | 34,539 | 3,611,743 | |
12,702,452 | |||
IT Services - 3.3% | |||
Concentrix Corp. | 41,633 | 8,367,817 | |
Digital Hearts Holdings Co. Ltd. | 72,806 | 1,096,886 | |
Digitalocean Holdings, Inc. (a)(b) | 59,198 | 3,394,413 | |
Dlocal Ltd. (b) | 56,698 | 1,696,404 | |
Flywire Corp. (a)(b) | 40,405 | 1,139,017 | |
Genpact Ltd. | 174,868 | 8,699,683 | |
Perficient, Inc. (a) | 39,037 | 4,091,858 | |
Thoughtworks Holding, Inc. | 68,800 | 1,473,696 | |
Verra Mobility Corp. (a) | 270,772 | 4,289,028 | |
Wix.com Ltd. (a) | 22,747 | 2,988,273 | |
37,237,075 | |||
Semiconductors & Semiconductor Equipment - 3.9% | |||
AEHR Test Systems (a) | 136,658 | 1,742,390 | |
Ambarella, Inc. (a) | 20,309 | 2,846,306 | |
Cirrus Logic, Inc. (a) | 80,071 | 7,161,550 | |
eMemory Technology, Inc. | 52,000 | 3,038,167 | |
MACOM Technology Solutions Holdings, Inc. (a) | 56,585 | 3,463,568 | |
Nova Ltd. (a) | 48,351 | 5,719,923 | |
Semtech Corp. (a) | 80,432 | 5,718,715 | |
SiTime Corp. (a) | 62,018 | 14,455,776 | |
44,146,395 | |||
Software - 7.8% | |||
Alkami Technology, Inc. (a)(b) | 174,048 | 2,669,896 | |
AvidXchange Holdings, Inc. | 106,577 | 1,104,138 | |
CCC Intelligent Solutions Holdings, Inc. (c) | 10,832 | 115,469 | |
CyberArk Software Ltd. (a)(b) | 54,634 | 7,493,053 | |
DoubleVerify Holdings, Inc. (a) | 210,305 | 5,817,036 | |
Dynatrace, Inc. (a) | 139,896 | 7,674,695 | |
Elastic NV (a) | 62,279 | 5,807,517 | |
EngageSmart, Inc. (b) | 55,100 | 1,204,486 | |
Fortnox AB | 246,780 | 1,243,857 | |
GitLab, Inc. (b) | 27,200 | 1,741,072 | |
KnowBe4, Inc. (a)(b) | 334,868 | 8,010,043 | |
Matterport, Inc. (a)(b) | 32,938 | 320,487 | |
Matterport, Inc. (c) | 12,700 | 123,571 | |
Monday.com Ltd. | 11,782 | 2,466,208 | |
Rapid7, Inc. (a)(b) | 108,433 | 10,445,351 | |
Sprout Social, Inc. (a) | 83,141 | 5,724,258 | |
TECSYS, Inc. (b) | 133,534 | 4,490,877 | |
Telos Corp. (a) | 258,674 | 3,023,899 | |
Tenable Holdings, Inc. (a) | 221,725 | 11,396,665 | |
Upsales Technology AB (a) | 41,696 | 316,192 | |
WalkMe Ltd. (b) | 133,957 | 2,334,871 | |
Yext, Inc. (a) | 462,107 | 3,743,067 | |
87,266,708 | |||
Technology Hardware, Storage & Peripherals - 0.9% | |||
Avid Technology, Inc. (a) | 321,295 | 10,075,811 | |
TOTAL INFORMATION TECHNOLOGY | 199,021,885 | ||
MATERIALS - 4.6% | |||
Chemicals - 2.7% | |||
Axalta Coating Systems Ltd. (a) | 111,367 | 3,297,577 | |
Element Solutions, Inc. | 340,649 | 7,644,164 | |
The Chemours Co. LLC | 226,147 | 7,397,268 | |
Trinseo PLC | 135,236 | 7,240,535 | |
Valvoline, Inc. | 164,338 | 5,413,294 | |
30,992,838 | |||
Construction Materials - 0.4% | |||
Eagle Materials, Inc. | 29,430 | 4,292,366 | |
Containers & Packaging - 0.8% | |||
Ardagh Metal Packaging SA (c) | 364,084 | 3,506,129 | |
Avery Dennison Corp. | 24,576 | 5,048,402 | |
8,554,531 | |||
Metals & Mining - 0.7% | |||
Iluka Resources Ltd. | 680,215 | 5,058,032 | |
Lynas Rare Earths Ltd. (a) | 472,056 | 3,049,058 | |
8,107,090 | |||
TOTAL MATERIALS | 51,946,825 | ||
REAL ESTATE - 1.4% | |||
Equity Real Estate Investment Trusts (REITs) - 0.5% | |||
Rexford Industrial Realty, Inc. | 39,917 | 2,920,727 | |
Terreno Realty Corp. | 38,104 | 2,849,036 | |
5,769,763 | |||
Real Estate Management & Development - 0.9% | |||
Compass, Inc. (a)(b) | 270,534 | 2,321,182 | |
Jones Lang LaSalle, Inc. (a) | 28,393 | 7,120,680 | |
9,441,862 | |||
TOTAL REAL ESTATE | 15,211,625 | ||
UTILITIES - 0.6% | |||
Independent Power and Renewable Electricity Producers - 0.6% | |||
NextEra Energy Partners LP | 55,972 | 4,210,214 | |
Sunnova Energy International, Inc. (a)(b) | 113,509 | 2,231,587 | |
6,441,801 | |||
TOTAL COMMON STOCKS | |||
(Cost $979,478,210) | 1,077,077,155 | ||
Convertible Preferred Stocks - 2.7% | |||
COMMUNICATION SERVICES - 0.3% | |||
Interactive Media & Services - 0.3% | |||
Reddit, Inc. Series F (c)(d) | 46,800 | 2,891,978 | |
CONSUMER DISCRETIONARY - 0.0% | |||
Textiles, Apparel & Luxury Goods - 0.0% | |||
Algolia SAS Series D (c)(d) | 9,900 | 289,526 | |
HEALTH CARE - 0.4% | |||
Biotechnology - 0.3% | |||
Bright Peak Therapeutics AG Series B (c)(d) | 199,331 | 601,980 | |
Caris Life Sciences, Inc. Series D (c)(d) | 144,435 | 961,937 | |
Sonoma Biotherapeutics, Inc.: | |||
Series B (c)(d) | 438,013 | 801,564 | |
Series B1 (c)(d) | 233,603 | 427,493 | |
T-Knife Therapeutics, Inc. Series B (c)(d) | 201,583 | 840,601 | |
Treeline Biosciences Series A (c)(d) | 21,246 | 132,150 | |
3,765,725 | |||
Health Care Providers & Services - 0.1% | |||
Boundless Bio, Inc. Series B (c)(d) | 682,407 | 675,583 | |
Health Care Technology - 0.0% | |||
Wugen, Inc. Series B (c)(d) | 59,982 | 340,698 | |
TOTAL HEALTH CARE | 4,782,006 | ||
INDUSTRIALS - 0.7% | |||
Construction & Engineering - 0.4% | |||
Beta Technologies, Inc. Series A (c)(d) | 62,752 | 4,597,839 | |
Road & Rail - 0.3% | |||
Convoy, Inc. Series D (a)(c)(d) | 192,936 | 3,183,039 | |
TOTAL INDUSTRIALS | 7,780,878 | ||
INFORMATION TECHNOLOGY - 1.3% | |||
Communications Equipment - 0.3% | |||
Astranis Space Technologies Corp. Series C (c)(d) | 125,912 | 3,633,820 | |
IT Services - 0.7% | |||
Yanka Industries, Inc.: | |||
Series E (a)(c)(d) | 191,029 | 6,089,393 | |
Series F (c)(d) | 28,989 | 924,077 | |
7,013,470 | |||
Software - 0.3% | |||
Mountain Digital, Inc. Series D (c)(d) | 140,383 | 3,223,938 | |
Skyryse, Inc. Series B (c)(d) | 12,000 | 296,160 | |
3,520,098 | |||
TOTAL INFORMATION TECHNOLOGY | 14,167,388 | ||
TOTAL CONVERTIBLE PREFERRED STOCKS | |||
(Cost $26,125,727) | 29,911,776 | ||
Investment Companies - 1.0% | |||
iShares Russell 2000 Growth Index ETF | |||
(Cost $11,325,450) | 46,200 | 11,722,326 | |
Money Market Funds - 7.3% | |||
Fidelity Cash Central Fund 0.08% (g) | 20,553,252 | 20,557,362 | |
Fidelity Securities Lending Cash Central Fund 0.08% (g)(h) | 61,226,731 | 61,232,853 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $81,790,215) | 81,790,215 | ||
TOTAL INVESTMENT IN SECURITIES - 106.6% | |||
(Cost $1,098,719,602) | 1,200,501,472 | ||
NET OTHER ASSETS (LIABILITIES) - (6.6)% | (74,157,587) | ||
NET ASSETS - 100% | $1,126,343,885 |
Security Type Abbreviations
ETF – Exchange-Traded Fund
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 $53,349,847 or 4.7% of net assets.
(d) Level 3 security
(e) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $6,236,784 or 0.6% of net assets.
(f) Investment is owned by a wholly-owned subsidiary (Subsidiary) that is treated as a corporation for U.S. tax purposes.
(g) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements 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 |
Algolia SAS Series D | 7/23/21 | $289,526 |
Algolia, Inc. | 10/27/21 | $1,265,404 |
Ardagh Metal Packaging SA | 2/22/21 | $3,640,840 |
Astranis Space Technologies Corp. Series C | 3/19/21 | $2,760,108 |
BARK, Inc. | 12/17/20 | $2,673,000 |
Beta Technologies, Inc. Series A | 4/9/21 | $4,597,839 |
Boundless Bio, Inc. Series B | 4/23/21 | $921,249 |
Bright Peak Therapeutics AG Series B | 5/14/21 | $778,587 |
Caris Life Sciences, Inc. Series D | 5/11/21 | $1,169,924 |
CCC Intelligent Solutions Holdings, Inc. | 2/2/21 | $108,320 |
Convoy, Inc. Series D | 10/30/19 | $2,612,353 |
Fanatics, Inc. Class A | 8/13/20 - 3/22/21 | $2,891,600 |
Matterport, Inc. | 2/8/21 | $127,000 |
Mountain Digital, Inc. Series D | 11/5/21 | $3,223,938 |
Perella Weinberg Partners | 12/29/20 | $4,572,620 |
Reddit, Inc. Series F | 8/11/21 | $2,891,978 |
Skyryse, Inc. Series B | 10/21/21 | $296,160 |
Sonoma Biotherapeutics, Inc. Series B | 7/26/21 | $865,645 |
Sonoma Biotherapeutics, Inc. Series B1 | 7/26/21 | $692,516 |
Starling Bank Ltd. Series D | 6/18/21 | $699,600 |
T-Knife Therapeutics, Inc. Series B | 6/30/21 | $1,162,892 |
Treeline Biosciences Series A | 7/30/21 | $166,303 |
Veterinary Emergency Group LLC Class A | 9/16/21 - 11/30/21 | $192,865 |
Wugen, Inc. Series B | 7/9/21 | $465,154 |
Yanka Industries, Inc. Series E | 5/15/20 | $2,307,478 |
Yanka Industries, Inc. Series F | 4/8/21 | $924,077 |
Affiliated Central Funds
Fiscal year to date information regarding the Fund's investments in Fidelity Central Funds, including the ownership percentage, is presented below.
Fund | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Realized Gain/Loss | Change in Unrealized appreciation (depreciation) | Value, end of period | % ownership, end of period |
Fidelity Cash Central Fund 0.08% | $4,152,847 | $248,645,744 | $232,241,229 | $2,123 | $-- | $-- | $20,557,362 | 0.0% |
Fidelity Securities Lending Cash Central Fund 0.08% | 107,112,980 | 213,854,491 | 259,734,618 | 282,493 | -- | -- | 61,232,853 | 0.2% |
Total | $111,265,827 | $462,500,235 | $491,975,847 | $284,616 | $-- | $-- | $81,790,215 |
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, 2022, 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 | $49,318,418 | $46,426,440 | $-- | $2,891,978 |
Consumer Discretionary | 166,401,078 | 151,478,958 | 2,306,014 | 12,616,106 |
Consumer Staples | 30,211,631 | 29,966,608 | 245,023 | -- |
Energy | 38,702,735 | 38,702,735 | -- | -- |
Financials | 75,318,920 | 72,375,520 | 1,743,529 | 1,199,871 |
Health Care | 276,397,375 | 271,422,504 | -- | 4,974,871 |
Industrials | 183,849,250 | 176,068,372 | -- | 7,780,878 |
Information Technology | 213,189,273 | 194,570,640 | 4,451,245 | 14,167,388 |
Materials | 51,946,825 | 43,839,735 | 8,107,090 | -- |
Real Estate | 15,211,625 | 15,211,625 | -- | -- |
Utilities | 6,441,801 | 6,441,801 | -- | -- |
Investment Companies | 11,722,326 | 11,722,326 | -- | -- |
Money Market Funds | 81,790,215 | 81,790,215 | -- | -- |
Total Investments in Securities: | $1,200,501,472 | $1,140,017,479 | $16,852,901 | $43,631,092 |
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 | $6,141,313 |
Net Realized Gain (Loss) on Investment Securities | -- |
Net Unrealized Gain (Loss) on Investment Securities | 5,209,389 |
Cost of Purchases | 1,265,404 |
Proceeds of Sales | -- |
Amortization/Accretion | -- |
Transfers into Level 3 | -- |
Transfers out of Level 3 | -- |
Ending Balance | $12,616,106 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2022 | $5,209,389 |
Equities - Information Technology | |
Beginning Balance | $9,773,578 |
Net Realized Gain (Loss) on Investment Securities | -- |
Net Unrealized Gain (Loss) on Investment Securities | 873,713 |
Cost of Purchases | 3,520,097 |
Proceeds of Sales | -- |
Amortization/Accretion | -- |
Transfers into Level 3 | -- |
Transfers out of Level 3 | -- |
Ending Balance | $14,167,388 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2022 | $873,713 |
Other Investments in Securities | |
Beginning Balance | $14,383,142 |
Net Realized Gain (Loss) on Investment Securities | -- |
Net Unrealized Gain (Loss) on Investment Securities | (180,387) |
Cost of Purchases | 3,084,843 |
Proceeds of Sales | -- |
Amortization/Accretion | -- |
Transfers into Level 3 | -- |
Transfers out of Level 3 | (440,000) |
Ending Balance | $16,847,598 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2022 | $(180,387) |
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 | 88.3% |
Israel | 1.9% |
Bermuda | 1.6% |
United Kingdom | 1.5% |
Netherlands | 1.2% |
Ireland | 1.1% |
Cayman Islands | 1.0% |
Others (Individually Less Than 1%) | 3.4% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
January 31, 2022 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $63,842,326) — See accompanying schedule: Unaffiliated issuers (cost $1,016,929,387) | $1,118,711,257 | |
Fidelity Central Funds (cost $81,790,215) | 81,790,215 | |
Total Investment in Securities (cost $1,098,719,602) | $1,200,501,472 | |
Receivable for investments sold | 4,838,427 | |
Receivable for fund shares sold | 1,318,461 | |
Dividends receivable | 193,196 | |
Distributions receivable from Fidelity Central Funds | 43,108 | |
Total assets | 1,206,894,664 | |
Liabilities | ||
Payable for investments purchased | $16,689,563 | |
Payable for fund shares redeemed | 2,069,559 | |
Accrued management fee | 560,213 | |
Collateral on securities loaned | 61,231,444 | |
Total liabilities | 80,550,779�� | |
Net Assets | $1,126,343,885 | |
Net Assets consist of: | ||
Paid in capital | $1,017,017,772 | |
Total accumulated earnings (loss) | 109,326,113 | |
Net Assets | $1,126,343,885 | |
Net Asset Value, offering price and redemption price per share ($1,126,343,885 ÷ 76,520,101 shares) | $14.72 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended January 31, 2022 (Unaudited) | ||
Investment Income | ||
Dividends | $3,525,365 | |
Interest | 1,172 | |
Income from Fidelity Central Funds (including $282,493 from security lending) | 284,616 | |
Total income | 3,811,153 | |
Expenses | ||
Management fee | $3,623,232 | |
Independent trustees' fees and expenses | 2,121 | |
Interest | 1,146 | |
Total expenses before reductions | 3,626,499 | |
Expense reductions | (42) | |
Total expenses after reductions | 3,626,457 | |
Net investment income (loss) | 184,696 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 56,943,241 | |
Foreign currency transactions | 461 | |
Total net realized gain (loss) | 56,943,702 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | (195,397,598) | |
Unfunded commitments | 498,561 | |
Assets and liabilities in foreign currencies | (28) | |
Total change in net unrealized appreciation (depreciation) | (194,899,065) | |
Net gain (loss) | (137,955,363) | |
Net increase (decrease) in net assets resulting from operations | $(137,770,667) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended January 31, 2022 (Unaudited) | Year ended July 31, 2021 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $184,696 | $(1,648,598) |
Net realized gain (loss) | 56,943,702 | 291,358,606 |
Change in net unrealized appreciation (depreciation) | (194,899,065) | 111,070,616 |
Net increase (decrease) in net assets resulting from operations | (137,770,667) | 400,780,624 |
Distributions to shareholders | (287,761,100) | (32,449,496) |
Share transactions | ||
Proceeds from sales of shares | 260,327,166 | 442,975,177 |
Reinvestment of distributions | 287,761,100 | 32,449,496 |
Cost of shares redeemed | (150,592,162) | (589,302,011) |
Net increase (decrease) in net assets resulting from share transactions | 397,496,104 | (113,877,338) |
Total increase (decrease) in net assets | (28,035,663) | 254,453,790 |
Net Assets | ||
Beginning of period | 1,154,379,548 | 899,925,758 |
End of period | $1,126,343,885 | $1,154,379,548 |
Other Information | ||
Shares | ||
Sold | 15,418,057 | 22,367,069 |
Issued in reinvestment of distributions | 15,979,576 | 1,720,546 |
Redeemed | (8,451,853) | (29,251,232) |
Net increase (decrease) | 22,945,780 | (5,163,617) |
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, | |||||
2022 | 2021 | 2020 | 2019 | 2018 | 2017 A | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $21.55 | $15.32 | $13.96 | $13.40 | $10.42 | $10.00 |
Income from Investment Operations | ||||||
Net investment income (loss)B,C | –D | (.03)E | –D | (.01) | (.01) | (.01) |
Net realized and unrealized gain (loss) | (1.60) | 6.81 | 1.36 | .84 | 3.00 | .43 |
Total from investment operations | (1.60) | 6.78 | 1.36 | .83 | 2.99 | .42 |
Distributions from net investment income | – | – | – | – | –D | – |
Distributions from net realized gain | (5.23) | (.55) | – | (.27) | (.01) | – |
Total distributions | (5.23) | (.55) | – | (.27) | (.01) | – |
Net asset value, end of period | $14.72 | $21.55 | $15.32 | $13.96 | $13.40 | $10.42 |
Total ReturnF,G | (11.26)% | 44.76% | 9.74% | 6.14% | 28.72% | 4.20% |
Ratios to Average Net AssetsC,H,I | ||||||
Expenses before reductions | .60%J | .60% | .60% | .60% | .60% | .60%J |
Expenses net of fee waivers, if any | .60%J | .60% | .60% | .60% | .60% | .60%J |
Expenses net of all reductions | .60%J | .59% | .59% | .59% | .59% | .60%J |
Net investment income (loss) | .03%J | (.14)%E | (.02)% | (.09)% | (.06)% | (.45)%J |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $1,126,344 | $1,154,380 | $899,926 | $833,744 | $562,817 | $74,821 |
Portfolio turnover rateK | 83%J,L | 119% | 137%L | 108%L | 114%L | 79%L,M |
A For the period May 25, 2017 (commencement of operations) through July 31, 2017.
B Calculated based on average shares outstanding during the period.
C Net investment income (loss) is affected by the timing of the declaration of dividends by any underlying mutual funds or exchange-traded funds (ETFs). Net investment income (loss) of any such underlying funds is not included in the Fund's net investment income (loss) ratio.
D Amount represents less than $.005 per share.
E 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 (.22) %.
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).
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, 2022
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.
Funds may invest 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 Schedule of Investments lists any Fidelity Central Funds held as an investment as of period end, but does not include the underlying holdings of each Fidelity Central Fund. An investing fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
Based on its investment objective, each Fidelity Central Fund may invest or participate in various investment vehicles or strategies that are similar to those of the investing fund. These strategies are consistent with the investment objectives of the investing fund and may involve certain economic risks which may cause a decline in value of each of the Fidelity Central Funds and thus a decline in the value of the investing fund.
Fidelity Central Fund | Investment Manager | Investment Objective | Investment Practices | Expense Ratio(a) |
Fidelity Money Market Central Funds | Fidelity Management & Research Company LLC (FMR) | Each fund seeks to obtain a high level of current income consistent with the preservation of capital and liquidity. | Short-term Investments | Less than .005% |
(a) Expenses expressed as a percentage of average net assets and are as of each underlying Central Fund's most recent annual or semi-annual shareholder report.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds which contain the significant accounting policies (including investment valuation policies) of those funds, and are not covered by the Report of Independent Registered Public Accounting Firm, are available on the Securities and Exchange Commission 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 Fund's Schedule of Investments lists any underlying mutual funds or exchange-traded funds (ETFs) but does not include the underlying holdings of these funds. 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 – Unadjusted 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.
Exchange-Traded Funds (ETFs) are valued at their last sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day but the exchange reports a closing bid level, ETFs are valued at the closing bid and would be categorized as Level 1 in the hierarchy. In the event there was no closing bid, ETFs may be valued by another method that the Board believes reflects fair value in accordance with the Board's fair value pricing policies and may be categorized as Level 2 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
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 | $43,631,092 | Market approach | Transaction price | $1.35 - $73.27 / $42.53 | Increase |
Discount rate | 17.8% - 27.7% / 23.0% | Decrease | |||
Discounted cash flow | Weighted average cost of capital (WACC) | 19.6% | Decrease | ||
Discount for lack of marketability | 10.0% | Decrease | |||
Growth rate | 2.0% | Increase |
(a) Represents the directional change in the fair value of the Level 3 investments that could have resulted from an increase in the corresponding input as of period end. A decrease to the unobservable input would have had the opposite effect. Significant changes in these inputs may have resulted in a significantly higher or lower fair value measurement at period end.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of January 31, 2022, 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. Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of a fund include an amount in addition to trade execution, which may be rebated back to a fund. Any such rebates are included in net realized gain (loss) on investments in the Statement of Operations. 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. Funds may file withholding tax reclaims in certain jurisdictions to recover a portion of amounts previously withheld. Any withholding tax reclaims income is included in the Statement of Operations in dividends. Any receivables for withholding tax reclaims are included in the Statement of Assets and Liabilities in dividends receivable.
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. Expenses included in the accompanying financial statements reflect the expenses of that fund and do not include any expenses associated with any underlying mutual funds or exchange-traded funds. Although not included in a fund's expenses, a fund indirectly bears its proportionate share of these expenses through the net asset value of each underlying mutual fund or exchange-traded fund. 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.
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 | $215,008,308 |
Gross unrealized depreciation | (117,623,953) |
Net unrealized appreciation (depreciation) | $97,384,355 |
Tax cost | $1,103,117,117 |
Restricted Securities (including Private Placements). Funds 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 held at period end is included at the end of the Schedule of Investments, if applicable.
Special Purpose Acquisition Companies. Funds may invest in stock, warrants, and other securities of special purpose acquisition companies (SPACs) or similar special purpose entities. A SPAC is a publicly traded company that raises investment capital via an initial public offering (IPO) for the purpose of acquiring the equity securities of one or more existing companies via merger, business combination, acquisition or other similar transactions within a designated time frame.
Private Investment in Public Equity. Funds may acquire equity securities of an issuer through a private investment in a public equity (PIPE) transaction, including through commitments to purchase securities on a when-issued basis. A PIPE typically involves the purchase of securities directly from a publicly traded company in a private placement transaction. Securities purchased through PIPE transactions will be restricted from trading and considered illiquid until a resale registration statement for the shares is filed and declared effective.
At the current and/or prior period end, the Fund had commitments to purchase when-issued securities through PIPE transactions with SPACs. The commitments are contingent upon the SPACs acquiring the securities of target companies. Unrealized appreciation (depreciation) on any commitments outstanding at period end is separately presented in the Statements of Assets and Liabilities as Unrealized appreciation (depreciation) on unfunded commitments, and any change in unrealized appreciation (depreciation) on unfunded commitments during the period is separately presented in the Statement of Operations, as applicable.
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 Small Cap Growth K6 Fund | 192,865 | .02 |
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, as applicable, are noted in the table below.
Purchases ($) | Sales ($) | |
Fidelity Small Cap Growth K6 Fund | 592,223,121 | 500,024,991 |
Unaffiliated Exchanges In-Kind. Shares that were exchanged for investments, including accrued interest and cash, if any, are shown in the table below. The amount of in-kind exchanges is included in share transactions in the accompanying Statement of Changes in Net Assets.
Shares | Total Proceeds ($) | |
Fidelity Small Cap Growth K6 Fund | 453,412 | 8,288,363 |
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 | $17,247 |
Interfund Lending Program. Pursuant to an Exemptive Order issued by the Securities and Exchange Commission (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 | $5,005,885 | .32% | $1,146 |
Interfund Trades. Funds may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Any interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note. Interfund trades during the period are noted in the table below.
Purchases ($) | Sales ($) | Realized Gain (Loss) ($) | |
Fidelity Small Cap Growth K6 Fund | 26,283,740 | 33,908,392 | 4,576,411 |
Other. During the period, the investment adviser reimbursed the Fund for certain losses as follows:
Amount ($) | |
Fidelity Small Cap Growth K6 Fund | 2,207 |
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 commitment fees on the pro-rata portion of the line of credit are borne by the investment adviser. 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 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 | $28,197 | $6,933 | $223,434 |
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 $42.
9. Other.
A 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, a fund may also enter into contracts that provide general indemnifications. A fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against a 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, 2021 to January 31, 2022).
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, 2021 | Ending Account Value January 31, 2022 | Expenses Paid During Period-B August 1, 2021 to January 31, 2022 | |
Fidelity Small Cap Growth K6 Fund | .60% | |||
Actual | $1,000.00 | $887.40 | $2.85 | |
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
SCPK6-SANN-0422
1.9884010.104
Fidelity® Small Cap Value Fund
Semi-Annual Report
January 31, 2022
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. © 2022 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 COVID-19 emerged as a public health emergency that had a major influence on financial markets, primarily based on its impact on the global economy and corporate earnings. On March 11, 2020, the World Health Organization declared the COVID-19 outbreak a pandemic, citing sustained risk of further global spread. The pandemic prompted a number of measures to limit the spread of COVID-19, 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. To help stem the turmoil, the U.S. government took unprecedented action – in concert with the U.S. Federal Reserve and central banks around the world – to help support consumers, businesses, and the broader economy, and to limit disruption to the financial system.
In general, the overall impact of the pandemic lessened in 2021, amid a resilient economy and widespread distribution of three COVID-19 vaccines granted emergency use authorization from the U.S. Food and Drug Administration (FDA) early in the year. Still, the situation remains dynamic, and the extent and duration of its influence on financial markets and the economy is highly uncertain, due in part to a recent spike in cases based on highly contagious variants of the coronavirus.
Extreme events such as the COVID-19 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 continue to take extra steps to be responsive to customer needs. We encourage you to visit us online, where we offer ongoing updates, commentary, and analysis on the markets and our funds.
Investment Summary (Unaudited)
Top Ten Stocks as of January 31, 2022
% of fund's net assets | |
Brookfield Infrastructure Corp. A Shares | 2.2 |
Eastern Bankshares, Inc. | 2.1 |
U.S. Foods Holding Corp. | 1.8 |
Cushman & Wakefield PLC | 1.8 |
CACI International, Inc. Class A | 1.7 |
Adient PLC | 1.7 |
Churchill Downs, Inc. | 1.7 |
Old Republic International Corp. | 1.7 |
Encore Capital Group, Inc. | 1.6 |
TD SYNNEX Corp. | 1.6 |
17.9 |
Top Five Market Sectors as of January 31, 2022
% of fund's net assets | |
Financials | 27.3 |
Industrials | 16.2 |
Consumer Discretionary | 8.6 |
Information Technology | 8.4 |
Real Estate | 8.3 |
Asset Allocation (% of fund's net assets)
As of January 31, 2022* | ||
Stocks | 97.0% | |
Short-Term Investments and Net Other Assets (Liabilities) | 3.0% |
* Foreign investments - 17.1%
Schedule of Investments January 31, 2022 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 92.9% | |||
Shares | Value | ||
COMMUNICATION SERVICES - 1.4% | |||
Media - 1.4% | |||
Cogeco Communications, Inc. | 145,400 | $11,934,890 | |
Nexstar Broadcasting Group, Inc. Class A | 351,800 | 58,180,684 | |
70,115,574 | |||
CONSUMER DISCRETIONARY - 8.6% | |||
Auto Components - 1.7% | |||
Adient PLC (a) | 2,040,000 | 85,618,800 | |
Hotels, Restaurants & Leisure - 3.6% | |||
Brinker International, Inc. (a)(b) | 1,500,000 | 49,815,000 | |
Churchill Downs, Inc. | 397,700 | 83,636,310 | |
Hilton Grand Vacations, Inc. (a) | 985,000 | 48,127,100 | |
181,578,410 | |||
Household Durables - 0.3% | |||
Traeger, Inc. (a)(b) | 1,600,000 | 16,304,000 | |
Leisure Products - 0.7% | |||
Hayward Holdings, Inc. (b) | 1,625,160 | 31,999,400 | |
Specialty Retail - 2.0% | |||
Rent-A-Center, Inc. (b) | 1,350,000 | 56,902,500 | |
Williams-Sonoma, Inc. (b) | 275,100 | 44,164,554 | |
101,067,054 | |||
Textiles, Apparel & Luxury Goods - 0.3% | |||
Crocs, Inc. (a) | 160,000 | 16,419,200 | |
TOTAL CONSUMER DISCRETIONARY | 432,986,864 | ||
CONSUMER STAPLES - 3.9% | |||
Food & Staples Retailing - 2.9% | |||
BJ's Wholesale Club Holdings, Inc. (a) | 930,000 | 57,167,100 | |
U.S. Foods Holding Corp. (a) | 2,480,000 | 87,444,800 | |
144,611,900 | |||
Food Products - 1.0% | |||
Lamb Weston Holdings, Inc. | 750,000 | 48,157,500 | |
TOTAL CONSUMER STAPLES | 192,769,400 | ||
ENERGY - 3.4% | |||
Energy Equipment & Services - 0.9% | |||
TechnipFMC PLC (a) | 7,000,000 | 45,430,000 | |
Oil, Gas & Consumable Fuels - 2.5% | |||
Antero Resources Corp. (a)(b) | 3,652,000 | 71,323,560 | |
Brigham Minerals, Inc. Class A | 2,530,100 | 54,751,364 | |
126,074,924 | |||
TOTAL ENERGY | 171,504,924 | ||
FINANCIALS - 27.3% | |||
Banks - 13.0% | |||
BOK Financial Corp. | 440,000 | 45,122,000 | |
Camden National Corp. | 187,830 | 9,327,638 | |
Comerica, Inc. | 608,300 | 56,438,074 | |
Cullen/Frost Bankers, Inc. | 375,000 | 52,878,750 | |
Eastern Bankshares, Inc. | 4,910,000 | 104,533,900 | |
First Foundation, Inc. | 2,177,275 | 56,935,741 | |
Independent Bank Group, Inc. (b) | 771,196 | 58,549,200 | |
Sterling Bancorp | 2,157,300 | 56,715,417 | |
Synovus Financial Corp. | 976,700 | 48,600,592 | |
The Bank of NT Butterfield & Son Ltd. | 1,760,000 | 64,504,000 | |
Trico Bancshares | 1,199,400 | 52,137,918 | |
Western Alliance Bancorp. | 479,700 | 47,581,443 | |
653,324,673 | |||
Capital Markets - 1.7% | |||
AllianceBernstein Holding LP | 888,200 | 41,700,990 | |
Lazard Ltd. Class A | 983,300 | 42,911,212 | |
84,612,202 | |||
Consumer Finance - 2.9% | |||
Encore Capital Group, Inc. (a)(b)(c) | 1,250,200 | 80,637,900 | |
FirstCash Holdings, Inc. | 955,000 | 66,563,500 | |
147,201,400 | |||
Diversified Financial Services - 0.8% | |||
ECN Capital Corp. | 9,302,051 | 39,077,176 | |
Insurance - 8.9% | |||
Assurant, Inc. | 500,000 | 76,255,000 | |
Axis Capital Holdings Ltd. | 744,600 | 42,427,308 | |
Enstar Group Ltd. (a) | 284,649 | 75,454,757 | |
First American Financial Corp. | 650,000 | 48,431,500 | |
Old Republic International Corp. | 3,258,700 | 83,520,481 | |
Primerica, Inc. | 500,000 | 77,170,000 | |
Reinsurance Group of America, Inc. | 350,000 | 40,190,500 | |
443,449,546 | |||
TOTAL FINANCIALS | 1,367,664,997 | ||
HEALTH CARE - 5.9% | |||
Biotechnology - 1.6% | |||
Agios Pharmaceuticals, Inc. (a) | 310,000 | 9,575,900 | |
ALX Oncology Holdings, Inc. (a) | 325,000 | 5,200,000 | |
Aurinia Pharmaceuticals, Inc. (a)(b) | 655,000 | 10,912,300 | |
Celldex Therapeutics, Inc. (a) | 200,000 | 6,202,000 | |
Erasca, Inc. | 705,000 | 8,354,250 | |
Exelixis, Inc. (a) | 375,000 | 6,787,500 | |
Global Blood Therapeutics, Inc. (a) | 225,000 | 6,491,250 | |
Imago BioSciences, Inc. | 195,757 | 3,958,207 | |
Instil Bio, Inc. (a) | 470,000 | 5,456,700 | |
Keros Therapeutics, Inc. (a) | 117,285 | 5,438,505 | |
Relay Therapeutics, Inc. (a) | 250,000 | 5,532,500 | |
TG Therapeutics, Inc. (a) | 340,000 | 3,933,800 | |
77,842,912 | |||
Health Care Equipment & Supplies - 1.2% | |||
Envista Holdings Corp. (a) | 1,400,000 | 60,536,000 | |
Health Care Providers & Services - 1.6% | |||
Owens & Minor, Inc. (b) | 1,000,000 | 42,090,000 | |
Premier, Inc. | 1,000,000 | 38,220,000 | |
80,310,000 | |||
Pharmaceuticals - 1.5% | |||
Jazz Pharmaceuticals PLC (a) | 133,600 | 18,558,376 | |
Prestige Brands Holdings, Inc. (a) | 1,000,000 | 56,450,000 | |
75,008,376 | |||
TOTAL HEALTH CARE | 293,697,288 | ||
INDUSTRIALS - 16.2% | |||
Aerospace & Defense - 1.3% | |||
Curtiss-Wright Corp. | 500,000 | 66,395,000 | |
Building Products - 2.4% | |||
Builders FirstSource, Inc. (a) | 840,000 | 57,111,600 | |
Jeld-Wen Holding, Inc. (a)(b) | 2,663,321 | 62,854,376 | |
119,965,976 | |||
Commercial Services & Supplies - 0.5% | |||
KAR Auction Services, Inc. (a)(b) | 1,700,600 | 24,182,532 | |
Construction & Engineering - 0.6% | |||
Arcosa, Inc. | 600,000 | 27,996,000 | |
Electrical Equipment - 0.7% | |||
Atkore, Inc. (a) | 336,100 | 36,224,858 | |
Machinery - 3.8% | |||
Crane Co. | 617,300 | 63,896,723 | |
EnPro Industries, Inc. | 455,000 | 47,784,100 | |
ITT, Inc. | 650,000 | 59,748,000 | |
Luxfer Holdings PLC sponsored | 1,191,600 | 20,352,528 | |
191,781,351 | |||
Professional Services - 4.3% | |||
ASGN, Inc. (a) | 550,000 | 63,178,500 | |
CACI International, Inc. Class A (a) | 350,000 | 86,611,000 | |
KBR, Inc. | 1,010,000 | 43,834,000 | |
TriNet Group, Inc. (a) | 235,000 | 20,022,000 | |
213,645,500 | |||
Trading Companies & Distributors - 2.6% | |||
Beacon Roofing Supply, Inc. (a) | 1,343,000 | 73,690,410 | |
Univar, Inc. (a) | 2,200,000 | 58,300,000 | |
131,990,410 | |||
TOTAL INDUSTRIALS | 812,181,627 | ||
INFORMATION TECHNOLOGY - 8.4% | |||
Communications Equipment - 1.1% | |||
Lumentum Holdings, Inc. (a) | 545,000 | 55,306,600 | |
Electronic Equipment & Components - 3.6% | |||
Insight Enterprises, Inc. (a) | 648,000 | 61,009,200 | |
TD SYNNEX Corp. | 765,000 | 79,996,050 | |
TTM Technologies, Inc. (a) | 3,000,000 | 40,380,000 | |
181,385,250 | |||
IT Services - 3.5% | |||
Concentrix Corp. | 385,000 | 77,381,150 | |
Cyxtera Technologies, Inc. Class A (a)(b) | 3,994,489 | 47,814,033 | |
Genpact Ltd. | 1,000,000 | 49,750,000 | |
174,945,183 | |||
Software - 0.2% | |||
Xperi Holding Corp. | 644,906 | 10,879,564 | |
TOTAL INFORMATION TECHNOLOGY | 422,516,597 | ||
MATERIALS - 6.2% | |||
Chemicals - 2.6% | |||
Tronox Holdings PLC | 2,125,000 | 48,237,500 | |
Valvoline, Inc. | 1,395,800 | 45,977,652 | |
Westlake Chemical Corp. | 350,000 | 34,527,500 | |
128,742,652 | |||
Construction Materials - 1.7% | |||
Eagle Materials, Inc. | 180,200 | 26,282,170 | |
RHI Magnesita NV | 500,000 | 23,062,323 | |
Summit Materials, Inc. (a) | 1,000,000 | 35,560,000 | |
84,904,493 | |||
Containers & Packaging - 1.9% | |||
Ardagh Group SA | 926,244 | 19,038,945 | |
O-I Glass, Inc. (a) | 3,800,000 | 50,578,000 | |
WestRock Co. | 590,000 | 27,234,400 | |
96,851,345 | |||
TOTAL MATERIALS | 310,498,490 | ||
REAL ESTATE - 8.3% | |||
Equity Real Estate Investment Trusts (REITs) - 3.2% | |||
Corporate Office Properties Trust (SBI) | 1,000,000 | 25,260,000 | |
Douglas Emmett, Inc. | 2,000,000 | 62,440,000 | |
LXP Industrial Trust (REIT) (b) | 5,000,000 | 74,450,000 | |
162,150,000 | |||
Real Estate Management & Development - 5.1% | |||
Cushman & Wakefield PLC (a) | 4,163,779 | 87,397,721 | |
DIC Asset AG | 3,000,000 | 51,606,362 | |
Jones Lang LaSalle, Inc. (a) | 262,400 | 65,807,296 | |
Realogy Holdings Corp. (a) | 3,083,900 | 50,884,350 | |
255,695,729 | |||
TOTAL REAL ESTATE | 417,845,729 | ||
UTILITIES - 3.3% | |||
Gas Utilities - 2.2% | |||
Brookfield Infrastructure Corp. A Shares | 1,651,900 | 109,554,008 | |
Independent Power and Renewable Electricity Producers - 1.1% | |||
NextEra Energy Partners LP (b) | 766,600 | 57,663,652 | |
TOTAL UTILITIES | 167,217,660 | ||
TOTAL COMMON STOCKS | |||
(Cost $3,909,649,230) | 4,658,999,150 | ||
Money Market Funds - 7.4% | |||
Fidelity Cash Central Fund 0.08% (d) | 153,630,092 | 153,660,818 | |
Fidelity Securities Lending Cash Central Fund 0.08% (d)(e) | 218,890,609 | 218,912,498 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $372,573,316) | 372,573,316 | ||
Equity Funds - 4.1% | |||
Domestic Equity Funds - 4.1% | |||
iShares Russell 2000 Value ETF (b) | |||
(Cost $213,953,812) | 1,300,000 | 203,242,002 | |
TOTAL INVESTMENT IN SECURITIES - 104.4% | |||
(Cost $4,496,176,358) | 5,234,814,468 | ||
NET OTHER ASSETS (LIABILITIES) - (4.4)% | (221,482,905) | ||
NET ASSETS - 100% | $5,013,331,563 |
Security Type Abbreviations
ETF – Exchange-Traded Fund
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Affiliated company
(d) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
(e) Investment made with cash collateral received from securities on loan.
Affiliated Central Funds
Fiscal year to date information regarding the Fund's investments in Fidelity Central Funds, including the ownership percentage, is presented below.
Fund | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Realized Gain/Loss | Change in Unrealized appreciation (depreciation) | Value, end of period | % ownership, end of period |
Fidelity Cash Central Fund 0.08% | $24,411,882 | $1,418,867,511 | $1,289,618,575 | $44,189 | $-- | $-- | $153,660,818 | 0.3% |
Fidelity Securities Lending Cash Central Fund 0.08% | 63,724,657 | 580,967,490 | 425,779,649 | 930,414 | -- | -- | 218,912,498 | 0.7% |
Total | $88,136,539 | $1,999,835,001 | $1,715,398,224 | $974,603 | $-- | $-- | $372,573,316 |
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 |
Encore Capital Group, Inc. | $43,198,787 | $-- | $-- | $-- | $-- | $37,439,113 | $80,637,900 |
Total | $43,198,787 | $-- | $-- | $-- | $-- | $37,439,113 | $80,637,900 |
Investment Valuation
The following is a summary of the inputs used, as of January 31, 2022, 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 | $70,115,574 | $70,115,574 | $-- | $-- |
Consumer Discretionary | 432,986,864 | 432,986,864 | -- | -- |
Consumer Staples | 192,769,400 | 192,769,400 | -- | -- |
Energy | 171,504,924 | 171,504,924 | -- | -- |
Financials | 1,367,664,997 | 1,367,664,997 | -- | -- |
Health Care | 293,697,288 | 293,697,288 | -- | -- |
Industrials | 812,181,627 | 812,181,627 | -- | -- |
Information Technology | 422,516,597 | 422,516,597 | -- | -- |
Materials | 310,498,490 | 287,436,167 | 23,062,323 | -- |
Real Estate | 417,845,729 | 366,239,367 | 51,606,362 | -- |
Utilities | 167,217,660 | 167,217,660 | -- | -- |
Money Market Funds | 372,573,316 | 372,573,316 | -- | -- |
Equity Funds | 203,242,002 | 203,242,002 | -- | -- |
Total Investments in Securities: | $5,234,814,468 | $5,160,145,783 | $74,668,685 | $-- |
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 | 82.9% |
Bermuda | 5.6% |
United Kingdom | 4.1% |
Canada | 3.4% |
Ireland | 2.1% |
Germany | 1.0% |
Others (Individually Less Than 1%) | 0.9% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
January 31, 2022 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $217,912,109) — See accompanying schedule: Unaffiliated issuers (cost $4,080,404,255) | $4,781,603,252 | |
Fidelity Central Funds (cost $372,573,316) | 372,573,316 | |
Other affiliated issuers (cost $43,198,787) | 80,637,900 | |
Total Investment in Securities (cost $4,496,176,358) | $5,234,814,468 | |
Cash | 806,846 | |
Foreign currency held at value (cost $413,699) | 397,019 | |
Receivable for investments sold | 547,699 | |
Receivable for fund shares sold | 13,226,280 | |
Dividends receivable | 1,251,334 | |
Distributions receivable from Fidelity Central Funds | 84,985 | |
Prepaid expenses | 3,684 | |
Total assets | 5,251,132,315 | |
Liabilities | ||
Payable for investments purchased | $3,644,758 | |
Payable for fund shares redeemed | 11,086,398 | |
Accrued management fee | 3,276,403 | |
Distribution and service plan fees payable | 124,700 | |
Other affiliated payables | 688,077 | |
Other payables and accrued expenses | 73,500 | |
Collateral on securities loaned | 218,906,916 | |
Total liabilities | 237,800,752 | |
Net Assets | $5,013,331,563 | |
Net Assets consist of: | ||
Paid in capital | $4,094,492,339 | |
Total accumulated earnings (loss) | 918,839,224 | |
Net Assets | $5,013,331,563 | |
Net Asset Value and Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($273,887,040 ÷ 13,492,226 shares)(a) | $20.30 | |
Maximum offering price per share (100/94.25 of $20.30) | $21.54 | |
Class M: | ||
Net Asset Value and redemption price per share ($83,721,867 ÷ 4,277,208 shares)(a) | $19.57 | |
Maximum offering price per share (100/96.50 of $19.57) | $20.28 | |
Class C: | ||
Net Asset Value and offering price per share ($39,372,438 ÷ 2,256,270 shares)(a) | $17.45 | |
Small Cap Value: | ||
Net Asset Value, offering price and redemption price per share ($2,893,696,276 ÷ 138,692,921 shares) | $20.86 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($1,244,509,839 ÷ 59,651,205 shares) | $20.86 | |
Class Z: | ||
Net Asset Value, offering price and redemption price per share ($478,144,103 ÷ 22,928,671 shares) | $20.85 |
(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, 2022 (Unaudited) | ||
Investment Income | ||
Dividends | $30,111,970 | |
Special dividends | 36,917,428 | |
Income from Fidelity Central Funds (including $930,414 from security lending) | 974,603 | |
Total income | 68,004,001 | |
Expenses | ||
Management fee | ||
Basic fee | $15,812,043 | |
Performance adjustment | 2,544,286 | |
Transfer agent fees | 3,469,499 | |
Distribution and service plan fees | 709,120 | |
Accounting fees | 534,198 | |
Custodian fees and expenses | 63,196 | |
Independent trustees' fees and expenses | 7,919 | |
Registration fees | 215,050 | |
Audit | 31,320 | |
Legal | 4,007 | |
Miscellaneous | 8,454 | |
Total expenses before reductions | 23,399,092 | |
Expense reductions | (70,608) | |
Total expenses after reductions | 23,328,484 | |
Net investment income (loss) | 44,675,517 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 306,644,796 | |
Foreign currency transactions | 95,513 | |
Total net realized gain (loss) | 306,740,309 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | (202,943,277) | |
Affiliated issuers | 37,439,113 | |
Assets and liabilities in foreign currencies | (41,145) | |
Total change in net unrealized appreciation (depreciation) | (165,545,309) | |
Net gain (loss) | 141,195,000 | |
Net increase (decrease) in net assets resulting from operations | $185,870,517 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended January 31, 2022 (Unaudited) | Year ended July 31, 2021 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $44,675,517 | $21,998,088 |
Net realized gain (loss) | 306,740,309 | 431,506,266 |
Change in net unrealized appreciation (depreciation) | (165,545,309) | 808,798,720 |
Net increase (decrease) in net assets resulting from operations | 185,870,517 | 1,262,303,074 |
Distributions to shareholders | (359,250,618) | (10,614,922) |
Share transactions - net increase (decrease) | 915,861,042 | 1,325,877,253 |
Total increase (decrease) in net assets | 742,480,941 | 2,577,565,405 |
Net Assets | ||
Beginning of period | 4,270,850,622 | 1,693,285,217 |
End of period | $5,013,331,563 | $4,270,850,622 |
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, | |||||
2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $21.03 | $12.33 | $14.68 | $20.33 | $19.05 | $17.92 |
Income from Investment Operations | ||||||
Net investment income (loss)A,B | .17C | .09D | .11 | .14E | .10F | .20G |
Net realized and unrealized gain (loss) | .77 | 8.66 | (1.96) | (.98) | 1.87 | 2.23 |
Total from investment operations | .94 | 8.75 | (1.85) | (.84) | 1.97 | 2.43 |
Distributions from net investment income | (.39) | (.05) | (.09) | (.10) | (.17) | (.10) |
Distributions from net realized gain | (1.28) | – | (.41) | (4.71) | (.52) | (1.20) |
Total distributions | (1.67) | (.05) | (.50) | (4.81) | (.69) | (1.30) |
Redemption fees added to paid in capitalA | – | – | – | – | –H | –H |
Net asset value, end of period | $20.30 | $21.03 | $12.33 | $14.68 | $20.33 | $19.05 |
Total ReturnI,J,K | 4.53% | 71.07% | (13.09)% | (4.85)% | 10.65% | 14.61% |
Ratios to Average Net AssetsB,L,M | ||||||
Expenses before reductions | 1.25%N | 1.24% | 1.22% | .92% | 1.18% | 1.24% |
Expenses net of fee waivers, if any | 1.25%N | 1.24% | 1.22% | .92% | 1.17% | 1.24% |
Expenses net of all reductions | 1.25%N | 1.23% | 1.20% | .91% | 1.17% | 1.24% |
Net investment income (loss) | .87%C,N | .50%D | .84% | .91%E | .49%F | 1.10%G |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $273,887 | $232,920 | $101,675 | $129,115 | $162,572 | $184,306 |
Portfolio turnover rateO | 39%N | 54% | 109% | 79% | 55% | 26% |
A Calculated based on average shares outstanding during the period.
B Net investment income (loss) is affected by the timing of the declaration of dividends by any underlying mutual funds or exchange-traded funds (ETFs). Net investment income (loss) of any such underlying funds is not included in the Fund's net investment income (loss) ratio.
C Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.17 per share. Such dividends are not annualized in the ratio of net investment income (loss) to average net assets. Excluding such non-recurring dividend(s) the ratio of net investment income (loss) to average net assets would have been .08%.
D Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.07 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been .13%.
E 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%.
F 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%.
G 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%.
H Amount represents less than $.005 per share.
I Total returns for periods of less than one year are not annualized.
J Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
K Total returns do not include the effect of the sales charges.
L 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.
M 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.
N Annualized
O 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, | |||||
2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $20.31 | $11.93 | $14.22 | $19.84 | $18.61 | $17.54 |
Income from Investment Operations | ||||||
Net investment income (loss)A,B | .14C | .05D | .08 | .10E | .05F | .15G |
Net realized and unrealized gain (loss) | .74 | 8.37 | (1.91) | (.96) | 1.82 | 2.18 |
Total from investment operations | .88 | 8.42 | (1.83) | (.86) | 1.87 | 2.33 |
Distributions from net investment income | (.35) | (.04) | (.05) | (.05) | (.13) | (.07) |
Distributions from net realized gain | (1.28) | – | (.41) | (4.71) | (.52) | (1.20) |
Total distributions | (1.62)H | (.04) | (.46) | (4.76) | (.64)H | (1.26)H |
Redemption fees added to paid in capitalA | – | – | – | – | –I | –I |
Net asset value, end of period | $19.57 | $20.31 | $11.93 | $14.22 | $19.84 | $18.61 |
Total ReturnJ,K,L | 4.40% | 70.63% | (13.29)% | (5.08)% | 10.39% | 14.35% |
Ratios to Average Net AssetsB,M,N | ||||||
Expenses before reductions | 1.49%O | 1.48% | 1.46% | 1.17% | 1.42% | 1.49% |
Expenses net of fee waivers, if any | 1.49%O | 1.48% | 1.46% | 1.17% | 1.42% | 1.49% |
Expenses net of all reductions | 1.49%O | 1.47% | 1.44% | 1.16% | 1.41% | 1.49% |
Net investment income (loss) | .63%C,O | .26%D | .59% | .66%E | .25%F | .86%G |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $83,722 | $80,182 | $38,049 | $53,612 | $69,380 | $78,852 |
Portfolio turnover rateP | 39%O | 54% | 109% | 79% | 55% | 26% |
A Calculated based on average shares outstanding during the period.
B Net investment income (loss) is affected by the timing of the declaration of dividends by any underlying mutual funds or exchange-traded funds (ETFs). Net investment income (loss) of any such underlying funds is not included in the Fund's net investment income (loss) ratio.
C Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.16 per share. Such dividends are not annualized in the ratio of net investment income (loss) to average net assets. Excluding such non-recurring dividend(s) the ratio of net investment income (loss) to average net assets would have been (.16) %.
D Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.06 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been (.11) %.
E 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%.
F 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%.
G 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%.
H Total distributions per share do not sum due to rounding.
I Amount represents less than $.005 per share.
J Total returns for periods of less than one year are not annualized.
K Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
L Total returns do not include the effect of the sales charges.
M 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.
N 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.
O Annualized
P 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, | |||||
2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $18.25 | $10.76 | $12.91 | $18.50 | $17.39 | $16.52 |
Income from Investment Operations | ||||||
Net investment income (loss)A,B | .08C | (.04)D | .01 | .02E | (.05)F | .06G |
Net realized and unrealized gain (loss) | .66 | 7.55 | (1.72) | (.89) | 1.71 | 2.04 |
Total from investment operations | .74 | 7.51 | (1.71) | (.87) | 1.66 | 2.10 |
Distributions from net investment income | (.31) | (.02) | (.03) | (.02) | (.03) | (.04) |
Distributions from net realized gain | (1.24) | – | (.41) | (4.71) | (.52) | (1.20) |
Total distributions | (1.54)H | (.02) | (.44) | (4.72)H | (.55) | (1.23)H |
Redemption fees added to paid in capitalA | – | – | – | – | –I | –I |
Net asset value, end of period | $17.45 | $18.25 | $10.76 | $12.91 | $18.50 | $17.39 |
Total ReturnJ,K,L | 4.12% | 69.84% | (13.74)% | (5.63)% | 9.84% | 13.79% |
Ratios to Average Net AssetsB,M,N | ||||||
Expenses before reductions | 2.01%O | 2.01% | 2.00% | 1.68% | 1.93% | 2.00% |
Expenses net of fee waivers, if any | 2.00%O | 2.01% | 1.99% | 1.68% | 1.93% | 2.00% |
Expenses net of all reductions | 2.00%O | 2.00% | 1.97% | 1.67% | 1.92% | 2.00% |
Net investment income (loss) | .11%C,O | (.26)%D | .06% | .15%E | (.26)%F | .35%G |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $39,372 | $32,469 | $13,748 | $22,187 | $44,396 | $52,227 |
Portfolio turnover rateP | 39%O | 54% | 109% | 79% | 55% | 26% |
A Calculated based on average shares outstanding during the period.
B Net investment income (loss) is affected by the timing of the declaration of dividends by any underlying mutual funds or exchange-traded funds (ETFs). Net investment income (loss) of any such underlying funds is not included in the Fund's net investment income (loss) ratio.
C Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.14 per share. Such dividends are not annualized in the ratio of net investment income (loss) to average net assets. Excluding such non-recurring dividend(s) the ratio of net investment income (loss) to average net assets would have been (.68) %.
D Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.06 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been (.64) %.
E 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) %.
F 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) %.
G 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) %.
H Total distributions per share do not sum due to rounding.
I Amount represents less than $.005 per share.
J Total returns for periods of less than one year are not annualized.
K Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
L Total returns do not include the effect of the contingent deferred sales charge.
M 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.
N 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.
O Annualized
P 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, | |||||
2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $21.59 | $12.64 | $15.04 | $20.71 | $19.41 | $18.22 |
Income from Investment Operations | ||||||
Net investment income (loss)A,B | .21C | .14D | .15 | .18E | .15F | .25G |
Net realized and unrealized gain (loss) | .78 | 8.89 | (2.01) | (1.00) | 1.89 | 2.28 |
Total from investment operations | .99 | 9.03 | (1.86) | (.82) | 2.04 | 2.53 |
Distributions from net investment income | (.44) | (.08) | (.12) | (.15) | (.22) | (.15) |
Distributions from net realized gain | (1.28) | – | (.41) | (4.71) | (.52) | (1.20) |
Total distributions | (1.72) | (.08) | (.54)H | (4.85)H | (.74) | (1.34)H |
Redemption fees added to paid in capitalA | – | – | – | – | –I | –I |
Net asset value, end of period | $20.86 | $21.59 | $12.64 | $15.04 | $20.71 | $19.41 |
Total ReturnJ,K | 4.64% | 71.64% | (12.88)% | (4.58)% | 10.88% | 14.99% |
Ratios to Average Net AssetsB,L,M | ||||||
Expenses before reductions | .98%N | .97% | .96% | .66% | .91% | .99% |
Expenses net of fee waivers, if any | .97%N | .97% | .96% | .66% | .91% | .99% |
Expenses net of all reductions | .97%N | .96% | .94% | .64% | .91% | .99% |
Net investment income (loss) | 1.14%C,N | .77%D | 1.10% | 1.17%E | .76%F | 1.36%G |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $2,893,696 | $2,715,703 | $1,231,427 | $1,611,032 | $2,052,664 | $2,637,843 |
Portfolio turnover rateO | 39%N | 54% | 109% | 79% | 55% | 26% |
A Calculated based on average shares outstanding during the period.
B Net investment income (loss) is affected by the timing of the declaration of dividends by any underlying mutual funds or exchange-traded funds (ETFs). Net investment income (loss) of any such underlying funds is not included in the Fund's net investment income (loss) ratio.
C Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.17 per share. Such dividends are not annualized in the ratio of net investment income (loss) to average net assets. Excluding such non-recurring dividend(s) the ratio of net investment income (loss) to average net assets would have been .35%.
D Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.07 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been .40%.
E 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%.
F 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%.
G 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%.
H Total distributions per share do not sum due to rounding.
I Amount represents less than $.005 per share.
J Total returns for periods of less than one year are not annualized.
K Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
L 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.
M 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.
N Annualized
O 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, | |||||
2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $21.59 | $12.65 | $15.04 | $20.72 | $19.41 | $18.23 |
Income from Investment Operations | ||||||
Net investment income (loss)A,B | .21C | .15D | .15 | .18E | .15F | .25G |
Net realized and unrealized gain (loss) | .78 | 8.87 | (2.01) | (1.01) | 1.90 | 2.28 |
Total from investment operations | .99 | 9.02 | (1.86) | (.83) | 2.05 | 2.53 |
Distributions from net investment income | (.44) | (.08) | (.12) | (.15) | (.22) | (.15) |
Distributions from net realized gain | (1.28) | – | (.41) | (4.71) | (.52) | (1.20) |
Total distributions | (1.72) | (.08) | (.53) | (4.85)H | (.74) | (1.35) |
Redemption fees added to paid in capitalA | – | – | – | – | –I | –I |
Net asset value, end of period | $20.86 | $21.59 | $12.65 | $15.04 | $20.72 | $19.41 |
Total ReturnJ,K | 4.65% | 71.55% | (12.82)% | (4.63)% | 10.93% | 14.96% |
Ratios to Average Net AssetsB,L,M | ||||||
Expenses before reductions | .98%N | .97% | .95% | .66% | .91% | .98% |
Expenses net of fee waivers, if any | .98%N | .97% | .95% | .66% | .91% | .97% |
Expenses net of all reductions | .98%N | .96% | .93% | .65% | .90% | .97% |
Net investment income (loss) | 1.14%C,N | .77%D | 1.10% | 1.17%E | .76%F | 1.37%G |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $1,244,510 | $845,012 | $214,538 | $243,571 | $459,332 | $466,730 |
Portfolio turnover rateO | 39%N | 54% | 109% | 79% | 55% | 26% |
A Calculated based on average shares outstanding during the period.
B Net investment income (loss) is affected by the timing of the declaration of dividends by any underlying mutual funds or exchange-traded funds (ETFs). Net investment income (loss) of any such underlying funds is not included in the Fund's net investment income (loss) ratio.
C Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.17 per share. Such dividends are not annualized in the ratio of net investment income (loss) to average net assets. Excluding such non-recurring dividend(s) the ratio of net investment income (loss) to average net assets would have been .35%.
D Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.07 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been .40%.
E 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%.
F 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%.
G 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%.
H Total distributions per share do not sum due to rounding.
I Amount represents less than $.005 per share.
J Total returns for periods of less than one year are not annualized.
K Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
L 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.
M 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.
N Annualized
O 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, | |||
2022 | 2021 | 2020 | 2019 A | |
Selected Per–Share Data | ||||
Net asset value, beginning of period | $21.59 | $12.65 | $15.05 | $16.90 |
Income from Investment Operations | ||||
Net investment income (loss)B,C | .22D | .17E | .17 | (.08)F |
Net realized and unrealized gain (loss) | .78 | 8.87 | (2.01) | (.66) |
Total from investment operations | 1.00 | 9.04 | (1.84) | (.74) |
Distributions from net investment income | (.47) | (.10) | (.15) | (.09) |
Distributions from net realized gain | (1.28) | – | (.41) | (1.02) |
Total distributions | (1.74)G | (.10) | (.56) | (1.11) |
Net asset value, end of period | $20.85 | $21.59 | $12.65 | $15.05 |
Total ReturnH,I | 4.71% | 71.75% | (12.73)% | (3.75)% |
Ratios to Average Net AssetsC,J,K | ||||
Expenses before reductions | .86%L | .84% | .81% | .52%L |
Expenses net of fee waivers, if any | .86%L | .84% | .81% | .52%L |
Expenses net of all reductions | .86%L | .83% | .79% | .51%L |
Net investment income (loss) | 1.26%D,L | .90%E | 1.25% | (.63)%F,L |
Supplemental Data | ||||
Net assets, end of period (000 omitted) | $478,144 | $364,564 | $93,849 | $26,006 |
Portfolio turnover rateM | 39%L | 54% | 109% | 79% |
A For the period October 2, 2018 (commencement of sale of shares) through July 31, 2019.
B Calculated based on average shares outstanding during the period.
C Net investment income (loss) is affected by the timing of the declaration of dividends by any underlying mutual funds or exchange-traded funds (ETFs). Net investment income (loss) of any such underlying funds is not included in the Fund's net investment income (loss) ratio.
D Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.17 per share. Such dividends are not annualized in the ratio of net investment income (loss) to average net assets. Excluding such non-recurring dividend(s) the ratio of net investment income (loss) to average net assets would have been .47%.
E Net investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.07 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been .53%.
F 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) %.
G Total distributions per share do not sum due to rounding.
H Total returns for periods of less than one year are not annualized.
I Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
J Fees and expenses of any underlying 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.
Notes to Financial Statements (Unaudited)
For the period ended January 31, 2022
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 eight years from the initial date of purchase, with certain exceptions.
2. Investments in Fidelity Central Funds.
Funds may invest 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 Schedule of Investments lists any Fidelity Central Funds held as an investment as of period end, but does not include the underlying holdings of each Fidelity Central Fund. An investing fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
Based on its investment objective, each Fidelity Central Fund may invest or participate in various investment vehicles or strategies that are similar to those of the investing fund. These strategies are consistent with the investment objectives of the investing fund and may involve certain economic risks which may cause a decline in value of each of the Fidelity Central Funds and thus a decline in the value of the investing fund.
Fidelity Central Fund | Investment Manager | Investment Objective | Investment Practices | Expense Ratio(a) |
Fidelity Money Market Central Funds | Fidelity Management & Research Company LLC (FMR) | Each fund seeks to obtain a high level of current income consistent with the preservation of capital and liquidity. | Short-term Investments | Less than .005% |
(a) Expenses expressed as a percentage of average net assets and are as of each underlying Central Fund's most recent annual or semi-annual shareholder report.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds which contain the significant accounting policies (including investment valuation policies) of those funds, and are not covered by the Report of Independent Registered Public Accounting Firm, are available on the Securities and Exchange Commission 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 Fund's Schedule of Investments lists any underlying mutual funds or exchange-traded funds (ETFs) but does not include the underlying holdings of these funds. 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 – Unadjusted 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.
ETFs are valued at their last sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day but the exchange reports a closing bid level, ETFs are valued at the closing bid and would be categorized as Level 1 in the hierarchy. In the event there was no closing bid, ETFs may be valued by another method that the Board believes reflects fair value in accordance with the Board's fair value pricing policies and may be categorized as Level 2 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of January 31, 2022 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. Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of a fund include an amount in addition to trade execution, which may be rebated back to a fund. Any such rebates are included in net realized gain (loss) on investments in the Statement of Operations. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. Large, non-recurring dividends recognized by the Fund are presented separately on the Statement of Operations as "Special Dividends" and the impact of these dividends is presented in the Financial Highlights. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain. Funds may file withholding tax reclaims in certain jurisdictions to recover a portion of amounts previously withheld. Any withholding tax reclaims income is included in the Statement of Operations in dividends. Any receivables for withholding tax reclaims are included in the Statement of Assets and Liabilities in dividends receivable.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of a 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 a fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred, as applicable. Certain expense reductions may also differ by class, if applicable. 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. Expenses included in the accompanying financial statements reflect the expenses of that fund and do not include any expenses associated with any underlying mutual funds or exchange-traded funds. Although not included in a fund's expenses, a fund indirectly bears its proportionate share of these expenses through the net asset value of each underlying mutual fund or exchange-traded fund. 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 | $899,821,964 |
Gross unrealized depreciation | (163,236,380) |
Net unrealized appreciation (depreciation) | $736,585,584 |
Tax cost | $4,498,228,884 |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and in-kind transactions, as applicable, are noted in the table below.
Purchases ($) | Sales ($) | |
Fidelity Small Cap Value Fund | 1,393,376,633 | 892,297,568 |
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 .22% 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 .78% 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% | $323,177 | $19,898 |
Class M | .25% | .25% | 207,838 | – |
Class C | .75% | .25% | 178,105 | 77,801 |
$709,120 | $97,699 |
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 | $69,446 |
Class M | 4,903 |
Class C(a) | 588 |
$74,937 |
(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 | $233,884 | .18 |
Class M | 70,374 | .17 |
Class C | 33,055 | .19 |
Small Cap Value | 2,210,865 | .16 |
Class I | 835,642 | .16 |
Class Z | 85,679 | .04 |
$3,469,499 |
(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 | .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 Value Fund | $23,980 |
Interfund Trades. Funds may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Any interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note. Interfund trades during the period are noted in the table below.
Purchases ($) | Sales ($) | Realized Gain (Loss) ($) | |
Fidelity Small Cap Value Fund | 90,641,594 | 64,480,711 | 27,427,522 |
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. During the period, there were no borrowings on this line of credit.
Amount | |
Fidelity Small Cap Value Fund | $3,567 |
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 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 | $89,772 | $18,748 | $2,702,388 |
8. Expense Reductions.
Through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses. During the period, custodian credits reduced the Fund's expenses by $57.
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 $70,551.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended January 31, 2022 | Year ended July 31, 2021 | |
Fidelity Small Cap Value Fund | ||
Distributions to shareholders | ||
Class A | $19,708,729 | $407,443 |
Class M | 6,431,449 | 113,565 |
Class C | 2,894,695 | 26,709 |
Small Cap Value | 219,284,324 | 7,606,520 |
Class I | 78,004,957 | 1,593,887 |
Class Z | 32,926,464 | 866,798 |
Total | $359,250,618 | $10,614,922 |
10. Share Transactions.
Share transactions for each class were as follows and may contain in-kind transactions, automatic conversions between classes or exchanges between affiliated funds:
Shares | Shares | Dollars | Dollars | |
Six months ended January 31, 2022 | Year ended July 31, 2021 | Six months ended January 31, 2022 | Year ended July 31, 2021 | |
Fidelity Small Cap Value Fund | ||||
Class A | ||||
Shares sold | 3,029,895 | 5,515,402 | $63,884,206 | $105,357,330 |
Reinvestment of distributions | 931,850 | 24,428 | 19,175,840 | 399,404 |
Shares redeemed | (1,545,693) | (2,711,145) | (32,487,497) | (47,316,784) |
Net increase (decrease) | 2,416,052 | 2,828,685 | $50,572,549 | $58,439,950 |
Class M | ||||
Shares sold | 644,844 | 1,737,851 | $13,152,785 | $33,058,379 |
Reinvestment of distributions | 320,888 | 7,107 | 6,376,814 | 112,433 |
Shares redeemed | (635,975) | (987,198) | (12,846,781) | (17,372,101) |
Net increase (decrease) | 329,757 | 757,760 | $6,682,818 | $15,798,711 |
Class C | ||||
Shares sold | 665,886 | 1,480,989 | $12,137,676 | $24,653,857 |
Reinvestment of distributions | 159,930 | 1,866 | 2,839,428 | 26,596 |
Shares redeemed | (348,941) | (980,897) | (6,328,801) | (16,135,958) |
Net increase (decrease) | 476,875 | 501,958 | $8,648,303 | $8,544,495 |
Small Cap Value | ||||
Shares sold | 29,885,549 | 70,129,869 | $648,392,123 | $1,400,537,590 |
Reinvestment of distributions | 9,867,950 | 450,885 | 208,631,717 | 7,216,719 |
Shares redeemed | (26,865,367) | (42,160,543) | (581,344,513) | (796,634,527) |
Net increase (decrease) | 12,888,132 | 28,420,211 | $275,679,327 | $611,119,782 |
Class I | ||||
Shares sold | 26,207,204 | 33,704,033 | $566,390,135 | $671,155,072 |
Reinvestment of distributions | 3,478,382 | 94,656 | 73,471,142 | 1,516,743 |
Shares redeemed | (9,174,886) | (11,618,016) | (197,621,549) | (228,753,739) |
Net increase (decrease) | 20,510,700 | 22,180,673 | $442,239,728 | $443,918,076 |
Class Z | ||||
Shares sold | 7,784,616 | 13,699,777 | $170,189,741 | $269,713,242 |
Reinvestment of distributions | 1,279,957 | 47,848 | 27,023,961 | 752,829 |
Shares redeemed | (3,021,701) | (4,281,250) | (65,175,385) | (82,409,832) |
Net increase (decrease) | 6,042,872 | 9,466,375 | $132,038,317 | $188,056,239 |
11. Other.
A 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, a fund may also enter into contracts that provide general indemnifications. A fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against a 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, 2021 to January 31, 2022).
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, 2021 | Ending Account Value January 31, 2022 | Expenses Paid During Period-B August 1, 2021 to January 31, 2022 | |
Fidelity Small Cap Value Fund | ||||
Class A | 1.25% | |||
Actual | $1,000.00 | $1,045.30 | $6.44 | |
Hypothetical-C | $1,000.00 | $1,018.90 | $6.36 | |
Class M | 1.49% | |||
Actual | $1,000.00 | $1,044.00 | $7.68 | |
Hypothetical-C | $1,000.00 | $1,017.69 | $7.58 | |
Class C | 2.00% | |||
Actual | $1,000.00 | $1,041.20 | $10.29 | |
Hypothetical-C | $1,000.00 | $1,015.12 | $10.16 | |
Small Cap Value | .97% | |||
Actual | $1,000.00 | $1,046.40 | $5.00 | |
Hypothetical-C | $1,000.00 | $1,020.32 | $4.94 | |
Class I | .98% | |||
Actual | $1,000.00 | $1,046.50 | $5.06 | |
Hypothetical-C | $1,000.00 | $1,020.27 | $4.99 | |
Class Z | .86% | |||
Actual | $1,000.00 | $1,047.10 | $4.44 | |
Hypothetical-C | $1,000.00 | $1,020.87 | $4.38 |
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
SCV-SANN-0422
1.803709.117
Fidelity® Real Estate Income Fund
Semi-Annual Report
January 31, 2022
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. © 2022 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 COVID-19 emerged as a public health emergency that had a major influence on financial markets, primarily based on its impact on the global economy and corporate earnings. On March 11, 2020, the World Health Organization declared the COVID-19 outbreak a pandemic, citing sustained risk of further global spread. The pandemic prompted a number of measures to limit the spread of COVID-19, 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. To help stem the turmoil, the U.S. government took unprecedented action – in concert with the U.S. Federal Reserve and central banks around the world – to help support consumers, businesses, and the broader economy, and to limit disruption to the financial system.
In general, the overall impact of the pandemic lessened in 2021, amid a resilient economy and widespread distribution of three COVID-19 vaccines granted emergency use authorization from the U.S. Food and Drug Administration (FDA) early in the year. Still, the situation remains dynamic, and the extent and duration of its influence on financial markets and the economy is highly uncertain, due in part to a recent spike in cases based on highly contagious variants of the coronavirus.
Extreme events such as the COVID-19 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 continue to take extra steps to be responsive to customer needs. We encourage you to visit us online, where we offer ongoing updates, commentary, and analysis on the markets and our funds.
Investment Summary (Unaudited)
Top Five Stocks as of January 31, 2022
% of fund's net assets | |
Equity Lifestyle Properties, Inc. | 3.2 |
American Tower Corp. | 2.6 |
LXP Industrial Trust (REIT) | 1.3 |
MFA Financial, Inc. | 1.3 |
Crown Castle International Corp. | 1.2 |
9.6 |
Top 5 Bonds as of January 31, 2022
% of fund's net assets | |
Redwood Trust, Inc. 5.625% 7/15/24 | 0.8 |
DTZ U.S. Borrower LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.750% 2.855% 8/21/25 | 0.7 |
BX Trust floater Series 2021-XL2 Class J, 1 month U.S. LIBOR + 3.890% 3.996% 10/15/38 | 0.6 |
Senior Housing Properties Trust 4.75% 5/1/24 | 0.6 |
SBA Senior Finance II, LLC Tranche B, term loan 3 month U.S. LIBOR + 1.750% 1.86% 4/11/25 | 0.6 |
3.3 |
Top Five REIT Sectors as of January 31, 2022
% of fund's net assets | |
REITs - Mortgage | 16.4 |
REITs - Diversified | 12.0 |
REITs - Management/Investment | 6.1 |
REITs - Health Care | 4.2 |
REITs - Apartments | 3.2 |
Asset Allocation (% of fund's net assets)
As of January 31, 2022* | ||
Stocks | 44.9% | |
Bonds | 38.2% | |
Convertible Securities | 4.5% | |
Other Investments | 5.6% | |
Short-Term Investments and Net Other Assets (Liabilities) | 6.8% |
* Foreign investments - 1.7%
Schedule of Investments January 31, 2022 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 25.5% | |||
Shares | Value | ||
FINANCIALS - 2.4% | |||
Capital Markets - 0.2% | |||
Brookfield Asset Management, Inc. (Canada) Class A | 235,800 | $12,985,092 | |
Insurance - 0.0% | |||
Brookfield Asset Management Reinsurance Partners Ltd. | 6,722 | 375,087 | |
Mortgage Real Estate Investment Trusts - 2.2% | |||
BrightSpire Capital, Inc. | 253,450 | 2,379,896 | |
Chimera Investment Corp. | 677,400 | 9,822,300 | |
Great Ajax Corp. (a) | 1,663,364 | 21,690,267 | |
MFA Financial, Inc. | 21,329,541 | 98,755,775 | |
New Residential Investment Corp. | 3,136,399 | 33,402,649 | |
166,050,887 | |||
TOTAL FINANCIALS | 179,411,066 | ||
INDUSTRIALS - 0.2% | |||
Construction & Engineering - 0.2% | |||
Willscot Mobile Mini Holdings (b) | 461,400 | 17,090,256 | |
INFORMATION TECHNOLOGY - 0.1% | |||
IT Services - 0.1% | |||
Cyxtera Technologies, Inc. Class A (b) | 803,700 | 9,620,289 | |
REAL ESTATE - 22.8% | |||
Equity Real Estate Investment Trusts (REITs) - 22.8% | |||
Acadia Realty Trust (SBI) | 889,626 | 17,605,699 | |
American Homes 4 Rent Class A | 866,200 | 33,894,406 | |
American Tower Corp. | 768,000 | 193,152,000 | |
Apartment Income (REIT) Corp. | 318,340 | 16,814,719 | |
AvalonBay Communities, Inc. | 160,700 | 39,247,761 | |
Crown Castle International Corp. | 502,310 | 91,676,598 | |
CubeSmart | 373,300 | 18,941,242 | |
Digital Realty Trust, Inc. | 102,400 | 15,281,152 | |
Digitalbridge Group, Inc. (b) | 609,855 | 4,451,942 | |
Douglas Emmett, Inc. | 548,100 | 17,111,682 | |
Easterly Government Properties, Inc. | 1,276,400 | 26,766,108 | |
Equinix, Inc. | 105,100 | 76,186,990 | |
Equity Lifestyle Properties, Inc. | 2,999,596 | 234,838,351 | |
Essex Property Trust, Inc. | 145,000 | 48,212,500 | |
Extra Space Storage, Inc. | 133,900 | 26,537,641 | |
Farmland Partners, Inc. | 1,084,656 | 12,354,232 | |
Gaming & Leisure Properties | 1,304,246 | 58,925,834 | |
Healthcare Trust of America, Inc. | 310,260 | 10,098,963 | |
Invitation Homes, Inc. | 397,200 | 16,674,456 | |
iStar Financial, Inc. (a)(c) | 3,982,313 | 85,500,260 | |
Lamar Advertising Co. Class A | 301,000 | 33,338,760 | |
Life Storage, Inc. | 17,400 | 2,348,130 | |
LXP Industrial Trust (REIT) | 6,634,874 | 98,793,274 | |
Mid-America Apartment Communities, Inc. | 370,806 | 76,638,184 | |
Monmouth Real Estate Investment Corp. Class A | 2,018,169 | 42,361,367 | |
National Retail Properties, Inc. | 259,900 | 11,534,362 | |
NexPoint Residential Trust, Inc. | 69,600 | 5,519,280 | |
Postal Realty Trust, Inc. | 920,300 | 16,454,964 | |
Public Storage | 78,100 | 28,001,193 | |
Retail Value, Inc. | 274,131 | 863,513 | |
Sabra Health Care REIT, Inc. | 1,554,475 | 21,156,405 | |
SITE Centers Corp. | 1,602,638 | 23,735,069 | |
Spirit Realty Capital, Inc. | 876,700 | 41,608,182 | |
Terreno Realty Corp. | 371,028 | 27,741,764 | |
UMH Properties, Inc. | 401,423 | 9,473,583 | |
Ventas, Inc. | 1,420,086 | 75,292,960 | |
VICI Properties, Inc. | 1,441,400 | 41,252,868 | |
Washington REIT (SBI) | 1,190,347 | 29,306,343 | |
Welltower, Inc. | 686,100 | 59,436,843 | |
Weyerhaeuser Co. | 193,700 | 7,831,291 | |
1,696,960,871 | |||
Real Estate Management & Development - 0.0% | |||
Cushman & Wakefield PLC (b) | 2,400 | 50,376 | |
TOTAL REAL ESTATE | 1,697,011,247 | ||
TOTAL COMMON STOCKS | |||
(Cost $1,215,021,043) | 1,903,132,858 | ||
Preferred Stocks - 20.2% | |||
Convertible Preferred Stocks - 0.8% | |||
FINANCIALS - 0.4% | |||
Mortgage Real Estate Investment Trusts - 0.4% | |||
Great Ajax Corp. 7.25% | 611,442 | 15,646,801 | |
Ready Capital Corp. 7.00% | 404,062 | 10,606,628 | |
26,253,429 | |||
REAL ESTATE - 0.4% | |||
Equity Real Estate Investment Trusts (REITs) - 0.4% | |||
Braemar Hotels & Resorts, Inc. 5.50% | 98,091 | 1,898,061 | |
LXP Industrial Trust (REIT) Series C, 6.50% | 440,102 | 24,810,689 | |
RLJ Lodging Trust Series A, 1.95% | 31,585 | 881,222 | |
Wheeler REIT, Inc. 8.75% (b) | 133,886 | 1,727,129 | |
29,317,101 | |||
TOTAL CONVERTIBLE PREFERRED STOCKS | 55,570,530 | ||
Nonconvertible Preferred Stocks - 19.4% | |||
ENERGY - 0.6% | |||
Oil, Gas & Consumable Fuels - 0.6% | |||
DCP Midstream Partners LP: | |||
7.95% (d) | 328,262 | 8,094,941 | |
Series B, 7.875% (d) | 256,314 | 6,274,567 | |
Enbridge, Inc.: | |||
Series 1, 5 year U.S. Treasury Index + 3.140% 5.949% (d)(e) | 498,275 | 11,938,669 | |
Series L, 5 year U.S. Treasury Index + 3.150% 4.959% (d)(e) | 111,400 | 2,538,806 | |
Energy Transfer LP 7.60% (d) | 525,651 | 13,088,710 | |
Global Partners LP: | |||
9.75% (d) | 161,507 | 4,231,483 | |
Series B, 9.50% | 67,800 | 1,793,744 | |
47,960,920 | |||
FINANCIALS - 11.8% | |||
Mortgage Real Estate Investment Trusts - 11.6% | |||
Acres Commercial Realty Corp. 8.625% (d) | 236,708 | 5,941,371 | |
AG Mortgage Investment Trust, Inc.: | |||
8.00% | 611,362 | 14,856,097 | |
8.25% | 38,510 | 963,135 | |
Series C, 8.00% (d) | 638,138 | 15,585,053 | |
AGNC Investment Corp.: | |||
6.125% (d) | 1,046,700 | 25,675,551 | |
6.875% (d) | 874,072 | 21,764,393 | |
Series C, 7.00% (d) | 958,602 | 24,089,668 | |
Series E, 6.50% (d) | 1,669,083 | 41,860,602 | |
Annaly Capital Management, Inc.: | |||
6.75% (d) | 535,092 | 13,671,601 | |
Series F, 6.95% (d) | 2,151,343 | 53,482,387 | |
Series G, 6.50% (d) | 1,329,790 | 33,005,388 | |
Arbor Realty Trust, Inc.: | |||
Series D, 6.375% | 85,700 | 2,123,646 | |
Series F, 6.25% (b)(d) | 560,000 | 13,608,000 | |
Arlington Asset Investment Corp. 8.25% (d) | 147,125 | 3,648,700 | |
Armour Residential REIT, Inc. Series C 7.00% | 102,500 | 2,585,050 | |
Cherry Hill Mortgage Investment Corp.: | |||
8.25% (d) | 245,925 | 6,209,606 | |
Series A, 8.20% | 248,750 | 6,349,767 | |
Chimera Investment Corp.: | |||
8.00% (d) | 1,018,131 | 25,504,182 | |
Series A, 8.00% | 202,500 | 5,123,250 | |
Series B, 8.00% (d) | 2,133,504 | 54,020,321 | |
Series C, 7.75% (d) | 2,359,586 | 58,942,458 | |
Dynex Capital, Inc. Series C 6.90% (d) | 372,483 | 9,401,471 | |
Ellington Financial LLC 6.75% (d) | 368,770 | 9,256,127 | |
Franklin BSP Realty Trust, Inc. 7.50% | 488,533 | 12,203,554 | |
Invesco Mortgage Capital, Inc.: | |||
7.50% (d) | 2,624,692 | 63,202,583 | |
Series B, 7.75% (d) | 1,419,346 | 34,475,914 | |
KKR Real Estate Finance Trust, Inc. 6.50% | 240,000 | 6,067,200 | |
MFA Financial, Inc.: | |||
6.50% (d) | 1,412,051 | 32,604,258 | |
Series B, 7.50% | 609,332 | 15,318,606 | |
New Residential Investment Corp.: | |||
7.125% (d) | 1,524,162 | 37,433,419 | |
Series A, 7.50% (d) | 964,527 | 24,228,918 | |
Series C, 6.375% (d) | 1,257,554 | 28,294,965 | |
Series D, 7.00% (d) | 514,400 | 12,818,848 | |
New York Mortgage Trust, Inc. Series D, 8.00% (d) | 317,918 | 7,973,383 | |
PennyMac Mortgage Investment Trust: | |||
6.75% | 240,000 | 5,990,400 | |
8.125% (d) | 414,254 | 10,878,310 | |
Series B, 8.00% (d) | 750,508 | 19,520,713 | |
Ready Capital Corp.: | |||
5.75% | 120,000 | 3,060,000 | |
6.50% | 34,400 | 830,072 | |
Series C, 6.20% | 378,550 | 9,690,880 | |
Two Harbors Investment Corp.: | |||
Series A, 8.125% (d) | 697,850 | 18,206,907 | |
Series B, 7.625% (d) | 1,483,255 | 36,680,896 | |
Series C, 7.25% (d) | 1,697,415 | 41,790,357 | |
868,938,007 | |||
Real Estate Management & Development - 0.2% | |||
Brookfield Properties Corp. Series EE, 5.10% (d) | 679,025 | 13,044,716 | |
TOTAL FINANCIALS | 881,982,723 | ||
REAL ESTATE - 7.0% | |||
Equity Real Estate Investment Trusts (REITs) - 7.0% | |||
Agree Realty Corp. 4.375% | 240,000 | 5,556,000 | |
American Finance Trust, Inc.: | |||
7.50% | 874,787 | 23,601,753 | |
Series C 7.375% | 379,839 | 10,141,701 | |
American Homes 4 Rent: | |||
6.25% | 98,905 | 2,641,317 | |
Series F, 5.875% | 248,009 | 6,279,588 | |
Series G, 5.875% | 199,750 | 5,043,688 | |
Armada Hoffler Properties, Inc. 6.75% | 213,694 | 5,626,563 | |
Ashford Hospitality Trust, Inc.: | |||
Series D, 8.45% | 190,073 | 4,648,805 | |
Series F, 7.375% | 327,400 | 7,350,130 | |
Series G, 7.375% | 238,068 | 5,289,871 | |
Series H, 7.50% | 231,565 | 5,175,478 | |
Series I, 7.50% | 323,909 | 7,527,645 | |
Bluerock Residential Growth (REIT), Inc.: | |||
Series C, 7.625% | 252,994 | 6,431,107 | |
Series D, 7.125% | 168,100 | 4,249,568 | |
Braemar Hotels & Resorts, Inc. Series D, 8.25% | 173,050 | 4,430,945 | |
Cedar Realty Trust, Inc.: | |||
Series B, 7.25% | 181,872 | 4,623,168 | |
Series C, 6.50% | 291,600 | 7,319,160 | |
Centerspace Series C, 6.625% | 317,300 | 8,297,395 | |
City Office REIT, Inc. Series A, 6.625% | 178,475 | 4,485,077 | |
CTO Realty Growth, Inc. 6.375% | 120,000 | 3,102,000 | |
DiamondRock Hospitality Co. 8.25% | 441,331 | 12,110,123 | |
Digitalbridge Group, Inc.: | |||
Series H, 7.125% | 965,305 | 24,267,768 | |
Series I, 7.15% | 1,074,492 | 27,249,117 | |
Series J, 7.15% | 1,387,346 | 35,238,588 | |
Gladstone Commercial Corp.: | |||
6.625% | 98,875 | 2,610,300 | |
Series G, 6.00% | 516,000 | 13,410,840 | |
Gladstone Land Corp. Series D, 5.00% | 30,000 | 769,200 | |
Global Medical REIT, Inc. Series A, 7.50% | 150,848 | 3,902,438 | |
Global Net Lease, Inc.: | |||
Series A, 7.25% | 531,595 | 13,741,731 | |
Series B 6.875% | 294,000 | 7,743,960 | |
Healthcare Trust, Inc.: | |||
7.125% | 190,000 | 4,788,000 | |
Series A 7.375% | 364,800 | 9,163,411 | |
Hersha Hospitality Trust: | |||
Series C, 6.875% | 49,450 | 1,149,713 | |
Series D, 6.50% | 197,750 | 4,524,520 | |
Hudson Pacific Properties, Inc. Series C, 4.75% (b) | 760,475 | 19,194,389 | |
iStar Financial, Inc.: | |||
Series D, 8.00% | 340,621 | 8,781,209 | |
Series G, 7.65% | 385,473 | 9,829,562 | |
Series I, 7.50% | 552,696 | 14,032,951 | |
Monmouth Real Estate Investment Corp. Series C, 6.125% | 342,800 | 8,631,704 | |
National Storage Affiliates Trust Series A, 6.00% | 91,575 | 2,367,214 | |
Pebblebrook Hotel Trust: | |||
6.30% | 269,997 | 6,428,629 | |
6.375% | 371,094 | 8,817,193 | |
6.375% | 532,053 | 13,306,646 | |
Series H, 5.70% | 692,200 | 16,266,631 | |
Pennsylvania (REIT): | |||
Series B, 7.375% (b) | 99,385 | 557,550 | |
Series C, 7.20% (b) | 50,325 | 295,156 | |
Series D, 6.875% (b) | 150,100 | 755,003 | |
Plymouth Industrial REIT, Inc. Series A, 7.50% | 171,625 | 4,505,156 | |
Prologis (REIT), Inc. Series Q, 8.54% | 93,396 | 5,982,948 | |
PS Business Parks, Inc. Series Z 4.875% | 52,000 | 1,323,920 | |
Public Storage: | |||
4.00% (b) | 320,000 | 7,494,400 | |
Series S, 4.10% (b) | 200,000 | 4,833,000 | |
Rexford Industrial Realty, Inc.: | |||
Series B, 5.875% | 78,600 | 2,012,946 | |
Series C, 5.625% | 68,225 | 1,749,289 | |
Saul Centers, Inc.: | |||
Series D, 6.125% | 82,775 | 2,107,452 | |
Series E, 6.00% | 76,841 | 2,013,234 | |
Seritage Growth Properties Series A, 7.00% | 91,986 | 1,981,378 | |
SITE Centers Corp. 6.375% | 102,400 | 2,579,456 | |
Sotherly Hotels, Inc.: | |||
Series B, 8.00% (b) | 67,250 | 1,227,313 | |
Series C, 7.875% (b) | 107,000 | 1,995,550 | |
Spirit Realty Capital, Inc. Series A, 6.00% | 94,125 | 2,392,658 | |
Summit Hotel Properties, Inc.: | |||
Series E, 6.25% | 310,763 | 7,458,312 | |
Series F, 5.875% | 377,000 | 9,274,200 | |
Sunstone Hotel Investors, Inc.: | |||
Series H, 6.125% | 180,000 | 4,586,256 | |
Series I, 5.70% | 240,000 | 5,796,000 | |
UMH Properties, Inc.: | |||
Series C, 6.75% | 471,265 | 12,036,108 | |
Series D, 6.375% | 601,125 | 15,460,935 | |
Urstadt Biddle Properties, Inc.: | |||
Series H, 6.25% | 281,325 | 7,069,697 | |
Series K 5.875% | 69,225 | 1,786,005 | |
Vornado Realty Trust: | |||
Series N, 5.25% | 75,446 | 1,935,944 | |
Series O, 4.45% | 342,900 | 7,845,552 | |
517,202,214 | |||
Real Estate Management & Development - 0.0% | |||
Brookfield Property Partners LP: | |||
5.75% | 43,000 | 978,250 | |
6.50% | 34,125 | 836,063 | |
1,814,313 | |||
TOTAL REAL ESTATE | 519,016,527 | ||
TOTAL NONCONVERTIBLE PREFERRED STOCKS | 1,448,960,170 | ||
TOTAL PREFERRED STOCKS | |||
(Cost $1,475,907,738) | 1,504,530,700 | ||
Principal Amount(f) | Value | ||
Corporate Bonds - 14.4% | |||
Convertible Bonds - 3.7% | |||
FINANCIALS - 3.3% | |||
Mortgage Real Estate Investment Trusts - 3.3% | |||
Arbor Realty Trust, Inc. 4.75% 11/1/22 | 17,276,000 | 18,441,955 | |
Granite Point Mortgage Trust, Inc.: | |||
5.625% 12/1/22 (g) | 6,694,000 | 6,666,127 | |
6.375% 10/1/23 | 10,099,000 | 10,200,536 | |
KKR Real Estate Finance Trust, Inc. 6.125% 5/15/23 | 15,629,000 | 16,611,759 | |
MFA Financial, Inc. 6.25% 6/15/24 | 25,352,000 | 26,105,506 | |
PennyMac Corp.: | |||
5.5% 11/1/24 | 33,934,000 | 34,273,340 | |
5.5% 3/15/26 (g) | 2,000,000 | 1,971,362 | |
Redwood Trust, Inc.: | |||
4.75% 8/15/23 | 13,805,000 | 13,977,563 | |
5.625% 7/15/24 | 56,618,000 | 57,113,408 | |
RWT Holdings, Inc. 5.75% 10/1/25 | 38,299,000 | 38,749,479 | |
Two Harbors Investment Corp. 6.25% 1/15/26 | 18,400,000 | 18,555,330 | |
242,666,365 | |||
REAL ESTATE - 0.4% | |||
Equity Real Estate Investment Trusts (REITs) - 0.4% | |||
CBL & Associates HoldCo II LLC 7% 11/15/28 | 3,614,040 | 7,022,380 | |
Digitalbridge Group, Inc. 5% 4/15/23 | 25,791,000 | 26,253,963 | |
33,276,343 | |||
TOTAL CONVERTIBLE BONDS | 275,942,708 | ||
Nonconvertible Bonds - 10.7% | |||
COMMUNICATION SERVICES - 0.5% | |||
Diversified Telecommunication Services - 0.1% | |||
Switch Ltd. 4.125% 6/15/29 (g) | 7,000,000 | 6,817,860 | |
Media - 0.4% | |||
Clear Channel Outdoor Holdings, Inc.: | |||
7.5% 6/1/29 (g) | 17,830,000 | 18,476,338 | |
7.75% 4/15/28 (g) | 14,000,000 | 14,525,000 | |
33,001,338 | |||
TOTAL COMMUNICATION SERVICES | 39,819,198 | ||
CONSUMER DISCRETIONARY - 2.2% | |||
Hotels, Restaurants & Leisure - 0.5% | |||
Hilton Grand Vacations Borrower Escrow LLC 4.875% 7/1/31 (g) | 15,000,000 | 14,517,300 | |
Marriott Ownership Resorts, Inc. 4.5% 6/15/29 (g) | 15,350,000 | 15,058,964 | |
Sugarhouse HSP Gaming Prop Mezz LP/Sugarhouse HSP Gaming Finance Corp. 5.875% 5/15/25 (g) | 5,000,000 | 4,987,500 | |
Times Square Hotel Trust 8.528% 8/1/26 (g)(h) | 4,162,735 | 4,385,237 | |
38,949,001 | |||
Household Durables - 1.7% | |||
Adams Homes, Inc. 7.5% 2/15/25 (g) | 9,530,000 | 9,815,900 | |
Ashton Woods U.S.A. LLC/Ashton Woods Finance Co.: | |||
4.625% 8/1/29 (g) | 4,015,000 | 3,954,775 | |
4.625% 4/1/30 (g) | 13,005,000 | 12,824,100 | |
6.625% 1/15/28 (g) | 9,925,000 | 10,435,244 | |
Brookfield Residential Properties, Inc./Brookfield Residential U.S. Corp.: | |||
4.875% 2/15/30 (g) | 1,590,000 | 1,544,717 | |
5% 6/15/29 (g) | 5,000,000 | 4,936,000 | |
6.25% 9/15/27 (g) | 8,533,000 | 8,799,656 | |
Century Communities, Inc.: | |||
3.875% 8/15/29 (g) | 13,005,000 | 12,481,549 | |
6.75% 6/1/27 | 6,230,000 | 6,482,393 | |
LGI Homes, Inc. 4% 7/15/29 (g) | 13,310,000 | 12,578,482 | |
M/I Homes, Inc. 3.95% 2/15/30 | 20,000,000 | 19,000,000 | |
New Home Co., Inc. 7.25% 10/15/25 (g) | 8,180,000 | 8,282,250 | |
Picasso Finance Sub, Inc. 6.125% 6/15/25 (g) | 3,240,000 | 3,358,195 | |
TRI Pointe Homes, Inc. 5.25% 6/1/27 | 11,458,000 | 11,816,063 | |
126,309,324 | |||
TOTAL CONSUMER DISCRETIONARY | 165,258,325 | ||
ENERGY - 0.2% | |||
Oil, Gas & Consumable Fuels - 0.2% | |||
EG Global Finance PLC: | |||
6.75% 2/7/25 (g) | 7,750,000 | 7,723,844 | |
8.5% 10/30/25 (g) | 1,682,000 | 1,705,254 | |
Global Partners LP/GLP Finance Corp. 7% 8/1/27 | 3,955,000 | 4,083,538 | |
13,512,636 | |||
FINANCIALS - 0.1% | |||
Diversified Financial Services - 0.1% | |||
Icahn Enterprises LP/Icahn Enterprises Finance Corp. 5.25% 5/15/27 | 5,000,000 | 5,018,750 | |
HEALTH CARE - 0.3% | |||
Health Care Providers & Services - 0.3% | |||
Sabra Health Care LP: | |||
3.9% 10/15/29 | 989,000 | 1,009,079 | |
5.125% 8/15/26 | 20,264,000 | 21,920,452 | |
22,929,531 | |||
INDUSTRIALS - 0.1% | |||
Trading Companies & Distributors - 0.1% | |||
Williams Scotsman International, Inc. 4.625% 8/15/28 (g) | 4,250,000 | 4,287,188 | |
REAL ESTATE - 7.3% | |||
Equity Real Estate Investment Trusts (REITs) - 4.7% | |||
American Finance Trust, Inc./American Finance Operating Partnership LP 4.5% 9/30/28 (g) | 27,255,000 | 26,437,350 | |
CBL & Associates HoldCo II LLC 10% 11/15/29 | 9,212,904 | 9,212,904 | |
CBL & Associates LP: | |||
4.6% 10/15/24 (h)(i) | 18,229,000 | 2 | |
5.25% 12/1/23 (h)(i) | 11,371,000 | 1 | |
5.95% 12/15/26 (h)(i) | 10,317,000 | 1 | |
CTR Partnership LP/CareTrust Capital Corp. 3.875% 6/30/28 (g) | 20,610,000 | 20,403,900 | |
Global Net Lease, Inc. / Global Net Lease Operating Partnership LP 3.75% 12/15/27 (g) | 5,075,000 | 4,883,441 | |
iStar Financial, Inc.: | |||
4.25% 8/1/25 | 16,925,000 | 16,809,665 | |
4.75% 10/1/24 | 25,920,000 | 26,244,000 | |
5.5% 2/15/26 | 16,985,000 | 17,282,238 | |
MPT Operating Partnership LP/MPT Finance Corp. 4.625% 8/1/29�� | 11,935,000 | 12,272,641 | |
Office Properties Income Trust: | |||
4.25% 5/15/24 | 4,974,000 | 5,140,586 | |
4.5% 2/1/25 | 21,056,000 | 21,949,036 | |
Omega Healthcare Investors, Inc.: | |||
4.5% 4/1/27 | 2,434,000 | 2,632,090 | |
4.95% 4/1/24 | 2,866,000 | 3,029,034 | |
Park Intermediate Holdings LLC 4.875% 5/15/29 (g) | 12,000,000 | 11,861,040 | |
Realty Income Corp. 4.875% 6/1/26 | 436,000 | 482,910 | |
RLJ Lodging Trust LP: | |||
3.75% 7/1/26 (g) | 10,000,000 | 9,700,000 | |
4% 9/15/29 (g) | 15,675,000 | 14,773,688 | |
Senior Housing Properties Trust: | |||
4.75% 5/1/24 | 44,393,000 | 44,393,000 | |
4.75% 2/15/28 | 9,933,000 | 9,328,378 | |
9.75% 6/15/25 | 21,500,000 | 22,805,480 | |
Service Properties Trust: | |||
4.65% 3/15/24 | 3,500,000 | 3,403,750 | |
5% 8/15/22 | 3,141,000 | 3,129,127 | |
7.5% 9/15/25 | 7,950,000 | 8,377,949 | |
Uniti Group LP / Uniti Group Finance, Inc. 6.5% 2/15/29 (g) | 24,920,000 | 23,574,071 | |
Uniti Group, Inc.: | |||
6% 1/15/30 (g) | 18,035,000 | 16,502,025 | |
7.875% 2/15/25 (g) | 5,000,000 | 5,207,500 | |
XHR LP: | |||
4.875% 6/1/29 (g) | 10,000,000 | 9,805,000 | |
6.375% 8/15/25 (g) | 4,250,000 | 4,393,438 | |
354,034,245 | |||
Real Estate Management & Development - 2.6% | |||
DTZ U.S. Borrower LLC 6.75% 5/15/28 (g) | 8,165,000 | 8,624,363 | |
Five Point Operation Co. LP 7.875% 11/15/25 (g) | 18,463,000 | 19,039,969 | |
Forestar Group, Inc.: | |||
3.85% 5/15/26 (g) | 9,000,000 | 8,820,000 | |
5% 3/1/28 (g) | 7,000,000 | 7,052,500 | |
Greystar Real Estate Partners 5.75% 12/1/25 (g) | 13,480,000 | 13,703,633 | |
Howard Hughes Corp.: | |||
4.125% 2/1/29 (g) | 14,970,000 | 14,389,613 | |
4.375% 2/1/31 (g) | 15,730,000 | 14,963,163 | |
5.375% 8/1/28 (g) | 12,625,000 | 12,860,646 | |
Kennedy-Wilson, Inc.: | |||
4.75% 3/1/29 | 24,385,000 | 24,218,207 | |
4.75% 2/1/30 | 25,385,000 | 24,940,763 | |
5% 3/1/31 | 6,960,000 | 6,866,388 | |
Mattamy Group Corp. 5.25% 12/15/27 (g) | 13,411,000 | 13,647,436 | |
Realogy Group LLC/Realogy Co-Issuer Corp. 7.625% 6/15/25 (g) | 3,025,000 | 3,208,920 | |
Realogy Group LLC/Realogy Co.-Issuer Corp. 5.25% 4/15/30 (g) | 15,000,000 | 14,362,500 | |
Taylor Morrison Communities, Inc./Monarch Communities, Inc.: | |||
5.875% 6/15/27 (g) | 1,798,000 | 1,928,355 | |
6.625% 7/15/27 (g) | 4,573,000 | 4,755,920 | |
193,382,376 | |||
TOTAL REAL ESTATE | 547,416,621 | ||
TOTAL NONCONVERTIBLE BONDS | 798,242,249 | ||
TOTAL CORPORATE BONDS | |||
(Cost $1,062,043,554) | 1,074,184,957 | ||
Asset-Backed Securities - 2.7% | |||
American Homes 4 Rent: | |||
Series 2015-SFR1 Class F, 5.885% 4/17/52 (g) | 2,000,000 | 2,122,562 | |
Series 2015-SFR2: | |||
Class E, 6.07% 10/17/52 (g) | 8,259,000 | 8,908,252 | |
Class XS, 0% 10/17/52 (d)(g)(h)(j) | 4,567,908 | 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)(g)(h) | 2,250,000 | 225 | |
Conseco Finance Securitizations Corp. Series 2002-2 Class M2, 9.163% 3/1/33 | 370,679 | 345,861 | |
DataBank Issuer, LLC Series 2021-1A Class C, 4.43% 2/27/51 (g) | 2,300,000 | 2,173,385 | |
Diamond Infrastructure Funding LLC Series 2021-1A Class C, 3.475% 4/15/49 (g) | 6,311,000 | 6,185,891 | |
DigitalBridge Issuer, LLC / DigitalBridge Co.-Issuer, LLC Series 2021-1A Class A2, 3.933% 9/25/51 (g) | 15,915,000 | 15,886,385 | |
FirstKey Homes Trust: | |||
Series 2021-SFR1 Class F1, 3.238% 8/17/38 (g) | 7,916,000 | 7,660,655 | |
Series 2021-SFR2 Class F1, 2.908% 9/17/38 (g) | 12,677,000 | 12,130,502 | |
FRTKL Series 2021-SFR1: | |||
Class F, 3.171% 9/17/38 (g) | 3,900,000 | 3,752,506 | |
Class G, 4.105% 9/17/38 (g) | 4,976,000 | 4,809,512 | |
GPMT Ltd. Series 2019-FL2 Class D, 1 month U.S. LIBOR + 2.950% 3.0593% 2/22/36 (d)(e)(g) | 2,142,000 | 2,141,372 | |
Green Tree Financial Corp.: | |||
Series 1996-4 Class M1, 7.75% 6/15/27 (d) | 340,289 | 349,253 | |
Series 1997-3 Class M1, 7.53% 3/15/28 | 2,888,914 | 2,900,131 | |
Home Partners of America Trust: | |||
Series 2019-2 Class F, 3.866% 10/19/39 (g) | 2,812,650 | 2,761,216 | |
Series 2021-1 Class F, 3.325% 9/17/41 (g) | 7,359,493 | 7,068,660 | |
Series 2021-2 Class G, 4.505% 12/17/26 (g) | 33,733,607 | 33,281,877 | |
Series 2021-3 Class F, 4.242% 1/17/41 (g) | 10,822,000 | 10,672,347 | |
Lehman ABS Manufactured Housing Contract Trust Series 2001-B Class M2, 7.17% 4/15/40 | 518,735 | 387,709 | |
Merit Securities Corp. Series 13 Class M1, 7.88% 12/28/33 (d) | 952,519 | 994,878 | |
Progress Residential Trust: | |||
Series 2019-SFR1 Class F, 5.061% 8/17/35 (g) | 3,000,000 | 2,985,444 | |
Series 2019-SFR2 Class F, 4.837% 5/17/36 (g) | 3,902,000 | 3,910,666 | |
Series 2019-SFR3 Class F, 3.867% 9/17/36 (g) | 1,000,000 | 998,250 | |
Series 2020-SFR1 Class H, 5.268% 4/17/37 (g) | 3,633,000 | 3,660,988 | |
Series 2021-SFR2 Class H, 4.998% 4/19/38 (g) | 8,467,000 | 8,310,149 | |
Series 2021-SFR3 Class G, 4.254% 5/17/26 (g) | 7,492,000 | 7,407,158 | |
Series 2021-SFR6: | |||
Class F, 3.422% 7/17/38 (g) | 9,198,000 | 8,867,551 | |
Class G, 4.003% 7/17/38 (g) | 6,466,000 | 6,232,765 | |
Series 2021-SFR8: | |||
Class F, 3.181% 10/17/38 (g) | 6,406,000 | 6,161,242 | |
Class G, 4.005% 10/17/38 (g) | 16,129,000 | 15,753,888 | |
Tricon American Homes: | |||
Series 2017-SFR2 Class F, 5.104% 1/17/36 (g) | 3,785,000 | 3,828,918 | |
Series 2018-SFR1 Class F, 4.96% 5/17/37 (g) | 8,282,000 | 8,505,291 | |
Tricon Residential Trust Series 2021-SFR1 Class G, 4.133% 7/17/38 (g) | 3,000,000 | 2,889,900 | |
VB-S1 Issuer LLC Series 2018-1A Class F, 5.25% 2/15/48 (g) | 1,354,000 | 1,353,639 | |
TOTAL ASSET-BACKED SECURITIES | |||
(Cost $209,666,569) | 205,399,074 | ||
Collateralized Mortgage Obligations - 0.0% | |||
U.S. Government Agency - 0.0% | |||
Fannie Mae REMIC Trust: (Cost $60,981) | |||
Series 2002-W1 subordinate REMIC pass thru certificates, Class 3B3, 3.2633% 2/25/42 (d)(g) | 26,661 | 7,725 | |
Series 2003-W10 subordinate REMIC pass thru certificates, Class 2B3, 3.2282% 6/25/43 (d)(g) | 51,348 | 30,481 | |
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS | |||
(Cost $60,981) | 38,206 | ||
Commercial Mortgage Securities - 24.8% | |||
ALEN Mortgage Trust floater Series 2021-ACEN Class F, 1 month U.S. LIBOR + 5.000% 5.106% 4/15/34 (d)(e)(g) | 3,384,000 | 3,341,608 | |
Ashford Hospitality Trust floater Series 2018-ASHF Class E, 1 month U.S. LIBOR + 3.100% 3.206% 4/15/35 (d)(e)(g) | 3,000,000 | 2,911,631 | |
BAMLL Commercial Mortgage Securities Trust floater: | |||
Series 2019-AHT Class C, 1 month U.S. LIBOR + 2.000% 2.106% 3/15/34 (d)(e)(g) | 7,168,000 | 7,132,173 | |
Series 2021-JACX Class E, 1 month U.S. LIBOR + 3.750% 3.856% 9/15/38 (d)(e)(g) | 19,979,000 | 19,937,438 | |
BANK: | |||
Series 2017-BNK8 Class E, 2.8% 11/15/50 (g) | 11,374,393 | 8,028,091 | |
Series 2018-BN12 Class D, 3% 5/15/61 (g) | 1,682,000 | 1,416,194 | |
BCP Trust: | |||
floater Series 2021-330N Class F, 1 month U.S. LIBOR + 4.630% 4.74% 6/15/38 (d)(e)(g) | 9,000,000 | 8,876,435 | |
Series 2021-330N Class E, 1 month U.S. LIBOR + 3.630% 3.744% 6/15/38 (d)(e)(g) | 10,000,000 | 9,884,803 | |
Benchmark Mortgage Trust: | |||
sequential payer: | |||
Series 2019-B13 Class A4, 2.952% 8/15/57 | 19,715,000 | 20,274,210 | |
Series 2019-B14: | |||
Class 225D, 3.2943% 12/15/62 (d)(g) | 3,427,000 | 3,177,245 | |
Class 225E, 3.2943% 12/15/62 (d)(g) | 5,141,000 | 4,526,266 | |
Series 2020-B18 Class AGNG, 4.3885% 7/15/53 (d)(g) | 11,379,000 | 10,944,932 | |
BLOX Trust floater Series 2021-BLOX Class E, 1 month U.S. LIBOR + 2.500% 2.606% 9/15/26 (d)(e)(g) | 5,126,000 | 5,112,456 | |
BPR Trust floater Series 2021-TY: | |||
Class E, 1 month U.S. LIBOR + 3.600% 3.706% 9/15/38 (d)(e)(g) | 10,400,000 | 10,380,199 | |
Class F, 1 month U.S. LIBOR + 4.200% 4.306% 9/15/38 (d)(e)(g) | 1,996,000 | 1,990,995 | |
Braemar Hotels & Resorts Trust floater Series 2018-PRME Class E, 1 month U.S. LIBOR + 2.400% 2.506% 6/15/35 (d)(e)(g) | 1,500,000 | 1,460,727 | |
BSREP Commercial Mortgage Trust floater Series 2021-DC: | |||
Class F, 1 month U.S. LIBOR + 2.850% 2.957% 8/15/38 (d)(e)(g) | 8,489,000 | 8,383,066 | |
Class G, 1 month U.S. LIBOR + 3.850% 3.957% 8/15/38 (d)(e)(g) | 6,594,000 | 6,498,086 | |
BX Commercial Mortgage Trust: | |||
floater: | |||
Series 2019-CALM Class E, 1 month U.S. LIBOR + 2.000% 2.106% 11/15/32 (d)(e)(g) | 6,426,000 | 6,385,150 | |
Series 2020-BXLP: | |||
Class F, 1 month U.S. LIBOR + 2.000% 2.106% 12/15/36 (d)(e)(g) | 25,326,042 | 25,135,542 | |
Class G, 1 month U.S. LIBOR + 2.500% 2.606% 12/15/36 (d)(e)(g) | 4,943,532 | 4,893,955 | |
Series 2021-CIP: | |||
Class F, 1 month U.S. LIBOR + 3.210% 3.325% 12/15/38 (d)(e)(g) | 7,790,000 | 7,780,644 | |
Class G, 1 month U.S. LIBOR + 3.960% 4.075% 12/15/38 (d)(e)(g) | 36,246,000 | 36,177,024 | |
Series 2021-FOX Class F, 1 month U.S. LIBOR + 4.250% 4.356% 11/15/32 (d)(e)(g) | 6,742,429 | 6,736,352 | |
Series 2021-PAC Class G, 1 month U.S. LIBOR + 2.940% 3.0531% 10/15/36 (d)(e)(g) | 27,232,000 | 27,110,466 | |
Series 2021-SOAR Class F, 2.456% 6/15/38 (d)(g) | 16,093,000 | 15,931,795 | |
Series 2021-VINO Class G, 1 month U.S. LIBOR + 3.950% 4.0583% 5/15/38 (d)(e)(g) | 33,979,000 | 33,680,450 | |
Series 2020-VIVA Class E, 3.5488% 3/11/44 (d)(g) | 7,832,990 | 7,209,042 | |
BX Trust: | |||
floater: | |||
Series 2018-IND: | |||
Class G, 1 month U.S. LIBOR + 2.050% 2.156% 11/15/35 (d)(e)(g) | 15,990,800 | 15,929,862 | |
Class H, 1 month U.S. LIBOR + 3.000% 3.106% 11/15/35 (d)(e)(g) | 6,206,900 | 6,175,774 | |
Series 2019-ATL Class E, 1 month U.S. LIBOR + 2.230% 2.3426% 10/15/36 (d)(e)(g) | 2,500,000 | 2,443,579 | |
Series 2019-IMC Class G, 1 month U.S. LIBOR + 3.600% 3.706% 4/15/34 (d)(e)(g) | 5,181,000 | 5,077,989 | |
Series 2019-XL: | |||
Class G, 1 month U.S. LIBOR + 2.300% 2.406% 10/15/36 (d)(e)(g) | 13,391,750 | 13,223,839 | |
Class J, 1 month U.S. LIBOR + 2.650% 2.756% 10/15/36 (d)(e)(g) | 15,217,550 | 14,988,565 | |
Series 2021-21M Class H, 1 month U.S. LIBOR + 4.010% 4.116% 10/15/36 (d)(e)(g) | 16,916,000 | 16,723,383 | |
Series 2021-ACNT Class G, 1 month U.S. LIBOR + 3.290% 3.402% 11/15/26 (d)(e)(g) | 20,581,000 | 20,493,588 | |
Series 2021-ARIA: | |||
Class F, 1 month U.S. LIBOR + 2.590% 2.6995% 10/15/36 (d)(e)(g) | 4,973,000 | 4,929,134 | |
Class G, 1 month U.S. LIBOR + 3.140% 3.2481% 10/15/36 (d)(e)(g) | 21,226,000 | 21,066,461 | |
Series 2021-BXMF Class G, 1 month U.S. LIBOR + 3.340% 3.4555% 10/15/26 (d)(e)(g) | 23,874,000 | 23,337,842 | |
Series 2021-SDMF Class F, 1 month U.S. LIBOR + 1.930% 2.043% 9/15/34 (d)(e)(g) | 9,650,000 | 9,470,593 | |
Series 2021-SOAR: | |||
Class G, 2.906% 6/15/38 (d)(g) | 5,000,000 | 4,912,291 | |
Class J, 3.856% 6/15/38 (d)(g) | 19,005,000 | 18,671,947 | |
Series 2021-VOLT: | |||
Class F, 1 month U.S. LIBOR + 2.400% 2.5063% 9/15/36 (d)(e)(g) | 10,443,000 | 10,338,352 | |
Class G, 1 month U.S. LIBOR + 2.850% 2.9563% 9/15/36 (d)(e)(g) | 19,446,000 | 19,251,085 | |
Series 2021-XL2 Class J, 1 month U.S. LIBOR + 3.890% 3.996% 10/15/38 (d)(e)(g) | 45,008,000 | 44,444,531 | |
Series 2022-LBA6: | |||
Class F, U.S. 30-Day Avg. Secured Overnight Fin. Rate (SOFR) Indx + 3.350% 3.4084% 1/15/39 (d)(e)(g) | 6,200,000 | 6,200,000 | |
Class G, U.S. 30-Day Avg. Secured Overnight Fin. Rate (SOFR) Indx + 4.200% 4.2584% 1/15/39 (d)(e)(g) | 11,340,000 | 11,340,000 | |
Series 2022-VAMF Class F, U.S. 30-Day Avg. Secured Overnight Fin. Rate (SOFR) Indx + 3.290% 3.359% 1/15/39 (d)(e)(g) | 2,550,000 | 2,540,441 | |
floater sequential payer Series 2021-LGCY Class J, 1 month U.S. LIBOR + 3.190% 3.299% 10/15/23 (d)(e)(g) | 19,151,000 | 18,941,588 | |
Series 2019-OC11 Class E, 4.0755% 12/9/41 (d)(g) | 22,122,000 | 21,271,225 | |
BXHPP Trust floater Series 2021-FILM Class E, 1 month U.S. LIBOR + 2.000% 2.106% 8/15/36 (d)(e)(g) | 2,403,000 | 2,379,013 | |
BXP Trust Series 2021-601L Class E, 2.7755% 1/15/44 (d)(g) | 5,754,000 | 4,847,312 | |
CALI Mortgage Trust Series 2019-101C Class F, 4.3244% 3/10/39 (d)(g) | 4,099,000 | 3,772,339 | |
CAMB Commercial Mortgage Trust floater Series 2019-LIFE Class G, 1 month U.S. LIBOR + 3.250% 3.356% 12/15/37 (d)(e)(g) | 14,973,000 | 14,920,797 | |
CD Mortgage Trust Series 2017-CD3 Class D, 3.25% 2/10/50 (g) | 3,353,000 | 2,535,896 | |
CGMS Commercial Mortgage Trust Series 2017-MDRB: | |||
Class D, 1 month U.S. LIBOR + 3.250% 3.356% 7/15/30 (d)(e)(g) | 6,131,000 | 6,106,000 | |
Class E, 1 month U.S. LIBOR + 3.870% 3.9775% 7/15/30 (d)(e)(g) | 6,666,000 | 6,425,673 | |
CHC Commercial Mortgage Trust floater Series 2019-CHC Class F, 1 month U.S. LIBOR + 2.600% 2.7142% 6/15/34 (d)(e)(g) | 1,489,131 | 1,408,953 | |
Citigroup Commercial Mortgage Trust: | |||
Series 2013-GC15 Class D, 5.178% 9/10/46 (d)(g) | 5,254,000 | 5,192,067 | |
Series 2016-C3 Class D, 3% 11/15/49 (g) | 7,010,000 | 5,550,234 | |
Cologix Data Centers U.S. Issuer, LLC / Cologix Data Centers U.S. Co.-Issuer, LLC: | |||
sequential payer Series 2021-1A Class A2, 3.3% 12/26/51 (g) | 10,000,000 | 9,983,603 | |
Series 2021-1A Class C, 5.99% 12/26/51 (g) | 6,400,000 | 6,366,637 | |
COMM Mortgage Trust: | |||
floater Series 2018-HCLV: | |||
Class F, 1 month U.S. LIBOR + 3.050% 3.156% 9/15/33 (d)(e)(g) | 4,265,000 | 3,898,353 | |
Class G, 1 month U.S. LIBOR + 5.050% 5.1623% 9/15/33 (d)(e)(g) | 4,265,000 | 3,706,672 | |
sequential payer Series 2013-LC6 Class E, 3.5% 1/10/46 (g) | 4,741,000 | 3,899,144 | |
Series 2012-CR1: | |||
Class D, 5.4512% 5/15/45 (d)(g) | 5,550,000 | 5,044,201 | |
Class G, 2.462% 5/15/45 (g)(h) | 6,346,000 | 1,263,385 | |
Series 2012-LC4 Class C, 5.5581% 12/10/44 (d) | 1,978,000 | 1,920,569 | |
Series 2013-CR10 Class D, 4.8999% 8/10/46 (d)(g) | 4,544,000 | 4,569,821 | |
Series 2013-LC6 Class D, 4.2884% 1/10/46 (d)(g) | 8,301,000 | 8,215,118 | |
Series 2014-CR17 Class E, 4.8476% 5/10/47 (d)(g) | 3,098,000 | 2,277,650 | |
Series 2014-UBS2 Class D, 5.0039% 3/10/47 (d)(g) | 3,713,000 | 3,651,819 | |
Series 2017-CD4 Class D, 3.3% 5/10/50 (g) | 2,769,000 | 2,482,950 | |
COMM Trust Series 2017-COR2 Class D, 3% 9/10/50 (g) | 2,769,000 | 2,523,972 | |
Commercial Mortgage Trust pass-thru certificates Series 2012-CR2: | |||
Class D, 4.8305% 8/15/45 (d)(g) | 4,500,000 | 4,428,720 | |
Class E, 4.8305% 8/15/45 (d)(g) | 8,000,000 | 7,147,200 | |
Class F, 4.25% 8/15/45 (g) | 2,000,000 | 1,593,940 | |
Credit Suisse Commercial Mortgage Trust floater Series 2021-SOP2 Class F, 1 month U.S. LIBOR + 4.210% 4.3232% 6/15/34 (e)(g) | 8,900,000 | 8,788,916 | |
Credit Suisse Mortgage Trust: | |||
floater: | |||
Series 2019-ICE4 Class E, 1 month U.S. LIBOR + 2.150% 2.256% 5/15/36 (d)(e)(g) | 7,090,000 | 7,083,302 | |
Series 2021-4SZN Class A, U.S. 30-Day Avg. Secured Overnight Fin. Rate (SOFR) Indx + 3.960% 4.0665% 11/15/23 (d)(e)(g) | 24,906,000 | 24,823,967 | |
Series 2021-BPNY Class A, 1 month U.S. LIBOR + 3.710% 3.8214% 8/15/23 (d)(e)(g) | 18,000,000 | 17,999,953 | |
Series 2020-NET: | |||
Class E, 3.7042% 8/15/37 (d)(g) | 9,400,000 | 9,447,136 | |
Class F, 3.7042% 8/15/37 (d)(g) | 7,050,000 | 6,973,215 | |
Series 2021-BRIT Class A, 1 month U.S. LIBOR + 3.450% 3.7092% 5/15/23 (d)(e)(g) | 9,280,000 | 9,233,258 | |
CRSNT Trust floater Series 2021-MOON: | |||
Class E, 1 month U.S. LIBOR + 2.550% 2.66% 4/15/36 (d)(e)(g) | 12,201,000 | 12,181,857 | |
Class F, 1 month U.S. LIBOR + 3.500% 3.61% 4/15/36 (d)(e)(g) | 4,844,000 | 4,836,544 | |
Class G, 1 month U.S. LIBOR + 4.500% 4.61% 4/15/36 (d)(e)(g) | 2,787,000 | 2,782,794 | |
CSAIL Commercial Mortgage Trust: | |||
sequential payer Series 2019-C15 Class A4, 4.0529% 3/15/52 | 9,425,000 | 10,286,602 | |
Series 2017-C8 Class D, 4.4754% 6/15/50 (d)(g) | 4,297,000 | 3,775,758 | |
Series 2017-CX10 Class UESD, 4.2366% 10/15/32 (d)(g) | 7,129,000 | 6,994,948 | |
Series 2017-CX9 Class D, 4.1315% 9/15/50 (d)(g) | 2,539,000 | 2,249,666 | |
CSMC Trust floater Series 2017-CHOP Class F, 1 month U.S. LIBOR + 4.600% 4.706% 7/15/32 (d)(e)(g) | 6,000,000 | 5,683,743 | |
DBCCRE Mortgage Trust Series 2014-ARCP Class E, 4.9345% 1/10/34 (d)(g) | 10,732,000 | 10,766,701 | |
DBUBS Mortgage Trust Series 2011-LC3A Class D, 5.3651% 8/10/44 (d)(g) | 3,789,692 | 3,681,686 | |
ELP Commercial Mortgage Trust floater Series 2021-ELP Class J, 1 month U.S. LIBOR + 3.610% 3.7219% 11/15/38 (d)(e)(g) | 15,448,000 | 15,369,313 | |
Extended Stay America Trust floater Series 2021-ESH: | |||
Class E, 1 month U.S. LIBOR + 2.850% 2.957% 7/15/38 (d)(e)(g) | 18,213,902 | 18,202,958 | |
Class F, 1 month U.S. LIBOR + 3.700% 3.807% 7/15/38 (d)(e)(g) | 20,814,895 | 20,808,382 | |
GPMT, Ltd. / GPMT LLC floater Series 2018-FL1 Class D, 1 month U.S. LIBOR + 2.950% 3.0593% 11/21/35 (d)(e)(g) | 2,500,000 | 2,497,835 | |
GS Mortgage Securities Corp. Trust floater Series 2019-70P Class E, 1 month U.S. LIBOR + 2.200% 2.306% 10/15/36 (d)(e)(g) | 7,437,000 | 7,026,670 | |
GS Mortgage Securities Trust: | |||
floater Series 2018-RIVR Class G, 1 month U.S. LIBOR + 2.600% 2.706% 7/15/35 (d)(e)(g) | 3,808,000 | 3,425,863 | |
Series 2011-GC5: | |||
Class C, 5.158% 8/10/44 (d)(g)(h) | 8,899,000 | 7,630,893 | |
Class D, 5.158% 8/10/44 (d)(g) | 2,733,635 | 1,318,979 | |
Class E, 5.158% 8/10/44 (d)(g)(h) | 8,138,000 | 834,145 | |
Class F, 4.5% 8/10/44 (g)(h) | 7,897,000 | 86,952 | |
Series 2012-GC6 Class E, 5% 1/10/45 (d)(g) | 2,450,111 | 2,401,109 | |
Series 2012-GCJ9: | |||
Class D, 4.7376% 11/10/45 (d)(g) | 5,503,000 | 5,497,389 | |
Class E, 4.7376% 11/10/45 (d)(g)(h) | 1,908,000 | 1,667,596 | |
Series 2013-GC16: | |||
Class D, 5.3107% 11/10/46 (d)(g) | 3,708,000 | 3,700,705 | |
Class F, 3.5% 11/10/46 (g) | 7,221,000 | 5,376,829 | |
Series 2021-RENT Class G, 1 month U.S. LIBOR + 5.700% 5.8091% 11/21/35 (d)(e)(g) | 19,794,905 | 19,943,814 | |
Hilton U.S.A. Trust Series 2016-HHV Class F, 4.1935% 11/5/38 (d)(g) | 20,270,000 | 19,267,809 | |
IMT Trust Series 2017-APTS: | |||
Class EFX, 3.4966% 6/15/34 (d)(g) | 9,213,000 | 9,108,230 | |
Class FFL, 1 month U.S. LIBOR + 2.850% 2.9563% 6/15/34 (d)(e)(g) | 2,752,375 | 2,743,106 | |
Independence Plaza Trust Series 2018-INDP Class E, 4.996% 7/10/35 (g) | 2,896,000 | 2,791,940 | |
JPMBB Commercial Mortgage Securities Trust: | |||
Series 2014-C23 Class UH5, 4.7094% 9/15/47 (g) | 8,640,000 | 7,416,379 | |
Series 2014-C26 Class D, 3.8771% 1/15/48 (d)(g) | 3,398,000 | 3,232,928 | |
JPMCC Commercial Mortgage Securities Trust Series 2016-JP4 Class D, 3.3883% 12/15/49 (d)(g) | 10,126,000 | 8,691,526 | |
JPMDB Commercial Mortgage Securities Trust: | |||
sequential payer Series 2019-COR6 Class A4, 3.0565% 11/13/52 | 13,000,000 | 13,447,109 | |
Series 2016-C4 Class D, 3.0707% 12/15/49 (d)(g) | 4,388,000 | 3,831,670 | |
Series 2018-C8 Class D, 3.218% 6/15/51 (d)(g) | 1,698,000 | 1,429,501 | |
JPMorgan Chase Commercial Mortgage Securities Trust: | |||
floater: | |||
Series 2018-LAQ: | |||
Class C, 1 month U.S. LIBOR + 1.600% 1.706% 6/15/32 (d)(e)(g) | 4,184,899 | 4,176,888 | |
Class E, 1 month U.S. LIBOR + 3.000% 3.106% 6/15/35 (d)(e)(g) | 1,328,800 | 1,324,659 | |
Series 2021-MHC Class E, 1 month U.S. LIBOR + 2.450% 2.556% 4/15/38 (d)(e)(g) | 4,022,000 | 4,004,230 | |
sequential payer Series 2021-1MEM Class E, 2.6535% 10/9/42 (d)(g) | 9,552,000 | 8,134,691 | |
Series 2011-C3: | |||
Class E, 5.5236% 2/15/46 (d)(g) | 13,774,000 | 5,177,224 | |
Class G, 4.409% 2/15/46 (d)(g) | 4,671,000 | 446,429 | |
Class H, 4.409% 2/15/46 (d)(g)(h) | 7,077,000 | 433,465 | |
Series 2011-C4 Class F, 3.873% 7/15/46 (g) | 1,400,000 | 1,366,149 | |
Series 2012-CBX: | |||
Class C, 4.7993% 6/15/45 (d) | 4,479,000 | 4,383,993 | |
Class E, 4.7993% 6/15/45 (d)(g) | 5,892,000 | 2,651,400 | |
Class F, 4% 6/15/45 (g) | 8,192,000 | 1,679,360 | |
Class G 4% 6/15/45 (g) | 4,044,000 | 319,862 | |
Series 2013-LC11: | |||
Class D, 4.1642% 4/15/46 (d) | 7,722,000 | 6,330,657 | |
Class E, 3.25% 4/15/46 (d)(g) | 472,000 | 345,382 | |
Class F, 3.25% 4/15/46 (d)(g)(h) | 2,518,000 | 1,051,343 | |
Series 2014-DSTY Class E, 3.8046% 6/10/27 (d)(g)(h) | 8,161,000 | 163,220 | |
Series 2018-AON Class F, 4.6132% 7/5/31 (d)(g) | 5,039,000 | 4,979,269 | |
Series 2020-NNN Class FFX, 4.6254% 1/16/37 (g) | 2,000,000 | 1,932,919 | |
KNDL Mortgage Trust floater Series 2019-KNSQ Class E, 1 month U.S. LIBOR + 1.800% 1.906% 5/15/36 (d)(e)(g) | 5,000,000 | 4,977,891 | |
KNDR Trust floater Series 2021-KIND Class F, 1 month U.S. LIBOR + 3.950% 4.056% 8/15/38 (d)(e)(g) | 14,155,000 | 14,126,210 | |
Last Mile Logistics Pan Euro Finance DAC floater Series 2021-1A Class E, 3 month EURIBOR + 2.700% 2.7% 8/17/33 (d)(e)(g) | EUR | 4,479,925 | 5,029,750 |
LIFE Mortgage Trust floater Series 2021-BMR Class G, 1 month U.S. LIBOR + 2.950% 3.056% 3/15/38 (d)(e)(g) | 18,824,000 | 18,589,069 | |
MED Trust floater Series 2021-MDLN Class G, 1 month U.S. LIBOR + 5.250% 5.357% 11/15/38 (d)(e)(g) | 37,080,000 | 36,615,447 | |
Merit floater Series 2021-STOR: | |||
Class F, 1 month U.S. LIBOR + 2.200% 2.306% 7/15/38 (d)(e)(g) | 7,827,000 | 7,748,545 | |
Class G, 1 month U.S. LIBOR + 2.750% 2.856% 7/15/38 (d)(e)(g) | 5,445,000 | 5,369,690 | |
MHC Commercial Mortgage Trust floater Series 2021-MHC: | |||
Class F, 1 month U.S. LIBOR + 2.600% 2.7073% 4/15/38 (d)(e)(g) | 15,322,000 | 15,206,820 | |
Class G, 1 month U.S. LIBOR + 3.200% 3.3073% 4/15/38 (d)(e)(g) | 20,601,000 | 20,575,317 | |
MHC Trust floater Series 2021-MHC2 Class F, 1 month U.S. LIBOR + 2.400% 2.506% 5/15/23 (d)(e)(g) | 20,000,000 | 19,936,802 | |
MHP Commercial Mortgage Trust floater Series 2022-MHIL Class G, U.S. 30-Day Avg. Secured Overnight Fin. Rate (SOFR) Indx + 3.950% 4.0075% 1/15/27 (d)(e)(g) | 19,424,000 | 19,303,393 | |
Morgan Stanley BAML Trust: | |||
Series 2012-C6 Class D, 4.6024% 11/15/45 (d)(g) | 2,000,000 | 1,990,168 | |
Series 2012-C6, Class F, 4.6024% 11/15/45 (d)(g)(h) | 2,500,000 | 2,137,516 | |
Series 2013-C12 Class D, 4.7625% 10/15/46 (d)(g) | 7,164,000 | 6,828,134 | |
Series 2013-C13: | |||
Class D, 4.8968% 11/15/46 (d)(g) | 6,218,000 | 5,924,308 | |
Class E, 4.8968% 11/15/46 (d)(g) | 3,341,000 | 2,775,929 | |
Series 2013-C9: | |||
Class C, 4.0202% 5/15/46 (d) | 3,302,000 | 3,329,702 | |
Class D, 4.1082% 5/15/46 (d)(g) | 5,137,000 | 4,770,748 | |
Series 2016-C30 Class D, 3% 9/15/49 (g) | 2,726,000 | 2,053,459 | |
Morgan Stanley Capital I Trust: | |||
Series 1998-CF1 Class G, 7.35% 7/15/32 (d)(g) | 62,535 | 62,778 | |
Series 2011-C2: | |||
Class D, 5.2113% 6/15/44 (d)(g) | 3,998,682 | 3,913,211 | |
Class F, 5.2113% 6/15/44 (d)(g)(h) | 4,440,000 | 2,886,000 | |
Class XB, 0.43% 6/15/44 (d)(g)(j) | 29,696,348 | 117,859 | |
Series 2011-C3: | |||
Class D, 5.0858% 7/15/49 (d)(g) | 7,317,000 | 7,353,392 | |
Class E, 5.0858% 7/15/49 (d)(g)(h) | 3,456,000 | 3,142,008 | |
Class F, 5.0858% 7/15/49 (d)(g) | 5,624,050 | 4,140,466 | |
Class G, 5.0858% 7/15/49 (d)(g)(h) | 5,049,500 | 2,783,633 | |
Series 2012-C4 Class D, 5.4766% 3/15/45 (d)(g) | 6,310,000 | 5,968,120 | |
Series 2015-MS1 Class D, 4.0312% 5/15/48 (d)(g) | 10,833,000 | 9,965,762 | |
Series 2015-UBS8 Class D, 3.18% 12/15/48 (g) | 3,051,000 | 2,479,623 | |
Series 2016-BNK2 Class C, 3% 11/15/49 (g) | 2,966,000 | 2,552,519 | |
Series 2018-H4 Class A4, 4.31% 12/15/51 | 14,240,929 | 15,797,772 | |
Motel 6 Trust floater Series 2021-MTL6: | |||
Class D, 1 month U.S. LIBOR + 2.100% 2.2063% 9/15/38 (d)(e)(g) | 3,941,000 | 3,936,250 | |
Class E, 1 month U.S. LIBOR + 2.700% 2.8063% 9/15/38 (d)(e)(g) | 6,741,000 | 6,732,869 | |
Class F, 1 month U.S. LIBOR + 3.550% 3.6563% 9/15/38 (d)(e)(g) | 12,865,000 | 12,849,478 | |
Class G, 1 month U.S. LIBOR + 4.700% 4.8063% 9/15/38 (d)(e)(g) | 9,015,000 | 9,004,128 | |
Class H, 1 month U.S. LIBOR + 6.000% 6.1063% 9/15/38 (d)(e)(g) | 4,908,000 | 4,924,520 | |
MRCD Mortgage Trust Series 2019-PARK: | |||
Class G, 2.7175% 12/15/36 (g) | 2,000,000 | 1,857,380 | |
Class J, 4.25% 12/15/36 (g) | 10,357,000 | 9,850,404 | |
MSCCG Trust: | |||
floater Series 2018-SELF Class E, 1 month U.S. LIBOR + 2.150% 2.256% 10/15/37 (d)(e)(g) | 5,061,000 | 5,022,957 | |
floater sequential payer Series 2018-SELF Class F, 1 month U.S. LIBOR + 3.050% 3.156% 10/15/37 (d)(e)(g) | 7,312,000 | 7,275,292 | |
MSJP Commercial Securities Mortgage Trust Series 2015-HAUL Class E, 4.851% 9/5/47 (d)(g) | 1,500,000 | 1,366,250 | |
Natixis Commercial Mortgage Securities Trust: | |||
floater Series 2018-FL1: | |||
Class WAN1, 1 month U.S. LIBOR + 2.750% 2.8563% 6/15/35 (d)(e)(g) | 1,743,000 | 1,664,125 | |
Class WAN2, 1 month U.S. LIBOR + 3.750% 3.8563% 6/15/35 (d)(e)(g)(h) | 651,000 | 602,104 | |
Series 2020-2PAC Class AMZ3, 3.5% 1/15/37 (d)(g) | 2,502,675 | 2,452,375 | |
OPG Trust floater Series 2021-PORT: | |||
Class G, 1 month U.S. LIBOR + 2.390% 2.504% 10/15/36 (d)(e)(g) | 24,469,000 | 23,972,864 | |
Class J, 1 month U.S. LIBOR + 3.340% 3.452% 10/15/36 (d)(e)(g) | 12,482,000 | 12,396,332 | |
PKHL Commercial Mortgage Trust floater Series 2021-MF: | |||
Class E, 1 month U.S. LIBOR + 2.600% 2.707% 7/15/38 (d)(e)(g) | 7,400,000 | 7,389,793 | |
Class G, 1 month U.S. LIBOR + 4.350% 4.457% 7/15/38 (d)(e)(g) | 5,944,000 | 5,940,366 | |
Prima Capital CRE Securitization Ltd. Series 2020-8A Class C, 3% 12/1/70 (g) | 9,277,000 | 8,460,290 | |
Progress Residential Trust Series 2021-SFR2 Class F, 3.395% 4/19/38 (g) | 2,407,000 | 2,350,720 | |
Providence Place Group Ltd. Partnership Series 2000-C1 Class A2, 7.75% 7/20/28 (g)(h) | 3,263,449 | 3,806,658 | |
ReadyCap Commercial Mortgage Trust floater Series 2019-FL3 Class D, 1 month U.S. LIBOR + 2.900% 3.0077% 3/25/34 (d)(e)(g) | 3,401,000 | 3,270,497 | |
SFO Commercial Mortgage Trust floater Series 2021-555: | |||
Class E, 1 month U.S. LIBOR + 2.900% 3.006% 5/15/38 (d)(e)(g) | 4,600,000 | 4,597,177 | |
Class F, 1 month U.S. LIBOR + 3.650% 3.756% 5/15/38 (d)(e)(g) | 3,720,000 | 3,717,752 | |
SG Commercial Mortgage Securities Trust Series 2020-COVE Class F, 3.7276% 3/15/37 (d)(g) | 5,000,000 | 4,668,657 | |
SMRT Commercial Mortgage Trust floater Series 2022-MINI Class F, U.S. 30-Day Avg. Secured Overnight Fin. Rate (SOFR) Indx + 3.350% 3.35% 1/15/24 (d)(e)(g) | 27,615,000 | 27,615,000 | |
SREIT Trust floater: | |||
Series 2021-FLWR Class E, 1 month U.S. LIBOR + 1.920% 2.03% 7/15/36 (d)(e)(g) | 11,469,000 | 11,283,512 | |
Series 2021-IND Class G, 1 month U.S. LIBOR + 3.260% 3.3718% 10/15/38 (d)(e)(g) | 26,754,000 | 26,431,213 | |
Series 2021-MFP Class G, 1 month U.S. LIBOR + 2.970% 3.0801% 11/15/38 (d)(e)(g) | 22,874,000 | 22,731,287 | |
Series 2021-MFP2 Class J, 1 month U.S. LIBOR + 3.910% 4.0215% 11/15/36 (d)(e)(g) | 22,872,000 | 22,781,210 | |
STWD Trust floater sequential payer Series 2021-LIH: | |||
Class E, 1 month U.S. LIBOR + 2.900% 3.009% 11/15/36 (d)(e)(g) | 4,985,000 | 4,941,032 | |
Class F, 1 month U.S. LIBOR + 3.550% 3.657% 11/15/36 (d)(e)(g) | 15,282,000 | 15,147,746 | |
Class G, 1 month U.S. LIBOR + 4.200% 4.306% 11/15/36 (d)(e)(g) | 9,177,000 | 9,124,493 | |
SUMIT Mortgage Trust Series 2022-BVUE: | |||
Class D, 2.8925% 2/12/41 (g) | 6,000,000 | 5,789,284 | |
Class F, 2.8925% 2/12/41 (g) | 3,211,000 | 2,929,577 | |
TPGI Trust floater Series 2021-DGWD: | |||
Class E, 1 month U.S. LIBOR + 2.350% 2.46% 6/15/26 (d)(e)(g) | 16,537,000 | 16,389,189 | |
Class G, 1 month U.S. LIBOR + 3.850% 3.96% 6/15/26 (d)(e)(g) | 7,308,000 | 7,260,133 | |
TTAN floater Series 2021-MHC Class E, 1 month U.S. LIBOR + 2.400% 2.507% 3/15/38 (d)(e)(g) | 17,157,531 | 17,006,139 | |
UBS Commercial Mortgage Trust Series 2012-C1: | |||
Class D, 5.6763% 5/10/45 (d)(g) | 2,296,000 | 2,159,079 | |
Class E, 5% 5/10/45 (d)(g) | 6,268,000 | 2,440,792 | |
Class F, 5% 5/10/45 (d)(g) | 2,221,350 | 111,067 | |
UBS-BAMLL Trust Series 12-WRM Class D, 4.238% 6/10/30 (d)(g) | 2,143,000 | 1,618,383 | |
UBS-Citigroup Commercial Mortgage Trust Series 2011-C1: | |||
Class B, 6.4122% 1/10/45 (d)(g) | 763,499 | 762,696 | |
Class C, 6.4122% 1/10/45 (d)(g) | 4,746,000 | 4,698,540 | |
VASA Trust: | |||
floater Series 2021-VASA Class G, 1 month U.S. LIBOR + 5.000% 5.106% 7/15/39 (d)(e)(g) | 800,000 | 800,420 | |
floater sequential payer Series 2021-VASA Class F, 1 month U.S. LIBOR + 3.900% 4.006% 7/15/39 (d)(e)(g) | 6,685,000 | 6,686,943 | |
VMC Finance Ltd. floater Series 2021-HT1 Class B, 1 month U.S. LIBOR + 4.500% 4.603% 1/18/37 (d)(e)(g) | 29,580,000 | 29,570,798 | |
Wells Fargo Commercial Mortgage Trust: | |||
Series 2012-LC5: | |||
Class D, 4.7565% 10/15/45 (d)(g) | 12,819,000 | 12,910,519 | |
Class E, 4.7565% 10/15/45 (d)(g) | 8,347,000 | 8,230,580 | |
Class F, 4.7565% 10/15/45 (d)(g) | 2,000,000 | 1,796,127 | |
Series 2016-BNK1 Class D, 3% 8/15/49 (g) | 6,979,000 | 4,869,321 | |
Series 2016-NXS6 Class D, 3.059% 11/15/49 (g) | 5,037,000 | 4,385,070 | |
WF-RBS Commercial Mortgage Trust: | |||
sequential payer Series 2011-C4I Class G, 4.8874% 6/15/44 (d)(h) | 3,955,000 | 235,807 | |
Series 2011-C3: | |||
Class D, 5.5133% 3/15/44 (d)(g) | 1,874,404 | 938,702 | |
Class E, 5% 3/15/44 (g)(h) | 2,966,000 | 192,790 | |
Series 2011-C5: | |||
Class E, 5.5199% 11/15/44 (d)(g) | 2,288,585 | 2,285,202 | |
Class F, 5.25% 11/15/44 (d)(g) | 3,500,000 | 3,212,726 | |
Class G, 5.25% 11/15/44 (d)(g) | 2,000,000 | 1,775,044 | |
Series 2012-C7: | |||
Class D, 4.7397% 6/15/45 (d)(g)(h) | 2,380,000 | 952,741 | |
Class F, 4.5% 6/15/45 (g) | 2,000,000 | 60,000 | |
Series 2012-C8 Class E, 4.8574% 8/15/45 (d)(g) | 2,889,500 | 2,856,594 | |
Series 2013-C11: | |||
Class D, 4.2388% 3/15/45 (d)(g) | 5,765,000 | 5,683,706 | |
Class E, 4.2388% 3/15/45 (d)(g)(h) | 4,727,000 | 4,364,820 | |
Series 2013-C13 Class D, 4.1413% 5/15/45 (d)(g) | 3,955,000 | 3,873,524 | |
Series 2013-C16 Class D, 5.0011% 9/15/46 (d)(g) | 3,686,000 | 3,653,573 | |
Series 2013-UBS1 Class D, 5.0394% 3/15/46 (d)(g) | 4,538,000 | 4,675,739 | |
WP Glimcher Mall Trust Series 2015-WPG: | |||
Class PR1, 3.516% 6/5/35 (d)(g) | 6,725,000 | 5,844,804 | |
Class PR2, 3.516% 6/5/35 (d)(g) | 2,541,000 | 2,028,953 | |
TOTAL COMMERCIAL MORTGAGE SECURITIES | |||
(Cost $1,914,182,032) | 1,847,108,052 | ||
Bank Loan Obligations - 5.5% | |||
COMMUNICATION SERVICES - 0.6% | |||
Wireless Telecommunication Services - 0.6% | |||
SBA Senior Finance II, LLC Tranche B, term loan 3 month U.S. LIBOR + 1.750% 1.86% 4/11/25 (d)(e)(k) | 44,404,885 | 44,007,017 | |
CONSUMER DISCRETIONARY - 2.0% | |||
Hotels, Restaurants & Leisure - 2.0% | |||
Bally's Corp. Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.250% 3.75% 10/1/28 (d)(e)(k) | 37,240,000 | 37,188,236 | |
BRE/Everbright M6 Borrower LLC Tranche B 1LN, term loan 1 month U.S. LIBOR + 5.000% 5.75% 9/9/26 (d)(e)(k) | 9,905,175 | 9,925,778 | |
Caesars Resort Collection LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.750% 2.855% 12/22/24 (d)(e)(k) | 40,661,989 | 40,420,457 | |
Four Seasons Holdings, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.000% 2.105% 11/30/23 (d)(e)(k) | 17,336,759 | 17,271,746 | |
Hilton Grand Vacations Borrower LLC Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.000% 3.5% 8/2/28 (d)(e)(k) | 22,867,688 | 22,815,321 | |
Playa Resorts Holding BV Tranche B, term loan 3 month U.S. LIBOR + 2.750% 3.75% 4/27/24 (d)(e)(k) | 24,652,183 | 24,206,719 | |
151,828,257 | |||
ENERGY - 0.1% | |||
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) | 5,793,628 | 5,461,943 | |
FINANCIALS - 0.8% | |||
Diversified Financial Services - 0.8% | |||
Agellan Portfolio 9% 8/7/25 (d)(h)(k) | 6,611,000 | 6,759,748 | |
KREF Holdings X LLC Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.500% 3.6875% 9/1/27 (d)(e)(h)(k) | 885,000 | 880,575 | |
Mhp 2022-Mhil Mezz U.S. Secured Overnight Fin. Rate (SOFR) Indx + 5.000% 5.053% 1/9/24 (d)(e)(h)(k) | 25,400,000 | 25,400,000 | |
Veritas Multifamily Portfolio 1 month U.S. LIBOR + 8.500% 8.75% 11/15/22 (d)(e)(h)(k) | 29,336,049 | 29,336,049 | |
62,376,372 | |||
Thrifts & Mortgage Finance - 0.0% | |||
Walker & Dunlop, Inc. Tranche B 1LN, term loan U.S. Secured Overnight Fin. Rate (SOFR) Indx + 2.250% 2.75% 12/16/28 (d)(e)(k) | 475,000 | 473,813 | |
TOTAL FINANCIALS | 62,850,185 | ||
INDUSTRIALS - 0.4% | |||
Commercial Services & Supplies - 0.4% | |||
Pilot Travel Centers LLC Tranche B 1LN, term loan 1 month U.S. LIBOR + 2.000% 2.105% 8/4/28 (d)(e)(k) | 33,481,088 | 33,277,188 | |
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 (d)(e)(k) | 7,887,191 | 7,859,034 | |
REAL ESTATE - 1.2% | |||
Equity Real Estate Investment Trusts (REITs) - 0.4% | |||
iStar Financial, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.750% 2.8548% 6/28/23 (d)(e)(k) | 25,981,444 | 25,916,490 | |
Real Estate Management & Development - 0.8% | |||
DTZ U.S. Borrower LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.750% 2.855% 8/21/25 (d)(e)(k) | 51,838,535 | 51,625,479 | |
Lightstone Holdco LLC: | |||
Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.750% 4.75% 1/30/24 (d)(e)(k) | 9,379,338 | 7,986,694 | |
Tranche C 1LN, term loan 3 month U.S. LIBOR + 3.750% 4.75% 1/30/24 (d)(e)(k) | 529,009 | 450,462 | |
60,062,635 | |||
TOTAL REAL ESTATE | 85,979,125 | ||
UTILITIES - 0.3% | |||
Electric Utilities - 0.2% | |||
Granite Generation LLC 1LN, term loan 3 month U.S. LIBOR + 3.750% 4.75% 11/1/26 (d)(e)(k) | 5,429,653 | 5,370,524 | |
Lonestar II Generation Holding: | |||
Tranche B 1LN, term loan 3 month U.S. LIBOR + 5.000% 5.105% 4/18/26 (d)(e)(k) | 9,742,925 | 9,608,960 | |
Tranche C 1LN, term loan 3 month U.S. LIBOR + 5.000% 5.105% 4/18/26 (d)(e)(k) | 1,273,530 | 1,256,019 | |
16,235,503 | |||
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) | 5,288,693 | 4,823,712 | |
TOTAL UTILITIES | 21,059,215 | ||
TOTAL BANK LOAN OBLIGATIONS | |||
(Cost $414,768,368) | 412,321,964 | ||
Preferred Securities - 0.1% | |||
ENERGY - 0.1% | |||
Oil, Gas & Consumable Fuels - 0.1% | |||
Energy Transfer LP 7.125% (d)(l) | 6,000,000 | 6,193,366 | |
FINANCIALS - 0.0% | |||
Diversified Financial Services - 0.0% | |||
Crest Dartmouth Street 2003-1 Ltd. Series 2003-1A Class PS, 6/28/38 (g)(h) | 1,220,000 | 122 | |
Thrifts & Mortgage Finance - 0.0% | |||
Crest Clarendon Street 2002-1 Ltd. Series 2002-1A Class PS, 12/28/35 (g)(h) | 500,000 | 10,000 | |
TOTAL FINANCIALS | 10,122 | ||
TOTAL PREFERRED SECURITIES | |||
(Cost $7,245,658) | 6,203,488 | ||
Shares | Value | ||
Money Market Funds - 7.6% | |||
Fidelity Cash Central Fund 0.08% (m) | 503,060,312 | 503,160,924 | |
Fidelity Securities Lending Cash Central Fund 0.08% (m)(n) | 63,799,830 | 63,806,210 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $566,918,468) | 566,967,134 | ||
TOTAL INVESTMENT IN SECURITIES - 100.8% | |||
(Cost $6,865,814,411) | 7,519,886,433 | ||
NET OTHER ASSETS (LIABILITIES) - (0.8)% | (59,163,318) | ||
NET ASSETS - 100% | $7,460,723,115 |
Currency Abbreviations
EUR – European Monetary Unit
Legend
(a) Affiliated company
(b) Non-income producing
(c) Security or a portion of the security is on loan at period end.
(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) Amount is stated in United States dollars unless otherwise noted.
(g) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $2,446,602,514 or 32.8% of net assets.
(h) Level 3 security
(i) Non-income producing - Security is in default.
(j) Interest Only (IO) security represents the right to receive only monthly interest payments on an underlying pool of mortgages or assets. Principal shown is the outstanding par amount of the pool as of the end of the period.
(k) 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) Security is perpetual in nature with no stated maturity date.
(m) 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.
(n) Investment made with cash collateral received from securities on loan.
Affiliated Central Funds
Fiscal year to date information regarding the Fund's investments in Fidelity Central Funds, including the ownership percentage, is presented below.
Fund | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Realized Gain/Loss | Change in Unrealized appreciation (depreciation) | Value, end of period | % ownership, end of period |
Fidelity Cash Central Fund 0.08% | $900,242,010 | $1,129,736,881 | $1,526,817,966 | $256,070 | $-- | $(1) | $503,160,924 | 0.9% |
Fidelity Securities Lending Cash Central Fund 0.08% | 97,387,058 | 117,104,977 | 150,685,825 | 113,985 | -- | -- | 63,806,210 | 0.2% |
Total | $997,629,068 | $1,246,841,858 | $1,677,503,791 | $370,055 | $-- | $(1) | $566,967,134 |
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 |
Great Ajax Corp. | $21,091,456 | $-- | $-- | $782,318 | $132,532 | $422,490 | $21,690,267 |
Great Ajax Corp. 7.25% | 15,866,920 | -- | -- | 554,119 | -- | (220,119) | -- |
iStar Financial, Inc. | 99,011,364 | -- | 2,194,643 | -- | 1,709,518 | (12,946,212) | 85,500,260 |
iStar Financial, Inc. Series D, 8.00% | 9,002,613 | -- | -- | -- | 340,621 | (562,025) | -- |
iStar Financial, Inc. Series G, 7.65% | 10,125,593 | -- | 25,700 | -- | 372,011 | (642,338) | -- |
iStar Financial, Inc. Series I, 7.50% | 14,635,390 | -- | -- | -- | 518,153 | (1,120,591) | -- |
Total | $169,733,336 | $-- | $2,220,343 | $1,336,437 | $3,072,835 | $(15,068,795) | $107,190,527 |
Investment Valuation
The following is a summary of the inputs used, as of January 31, 2022, 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 | $47,960,920 | $47,960,920 | $-- | $-- |
Financials | 1,087,647,218 | 1,061,393,789 | 26,253,429 | -- |
Industrials | 17,090,256 | 17,090,256 | -- | -- |
Information Technology | 9,620,289 | 9,620,289 | -- | -- |
Real Estate | 2,245,344,875 | 2,216,027,774 | 29,317,101 | -- |
Corporate Bonds | 1,074,184,957 | -- | 1,069,799,716 | 4,385,241 |
Asset-Backed Securities | 205,399,074 | -- | 205,398,803 | 271 |
Collateralized Mortgage Obligations | 38,206 | -- | 38,206 | -- |
Commercial Mortgage Securities | 1,847,108,052 | -- | 1,812,872,976 | 34,235,076 |
Bank Loan Obligations | 412,321,964 | -- | 349,945,592 | 62,376,372 |
Preferred Securities | 6,203,488 | -- | 6,193,366 | 10,122 |
Money Market Funds | 566,967,134 | 566,967,134 | -- | -- |
Total Investments in Securities: | $7,519,886,433 | $3,919,060,162 | $3,499,819,189 | $101,007,082 |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value:
Investments in Securities: | |
Beginning Balance | $90,854,951 |
Net Realized Gain (Loss) on Investment Securities | (10,079,477) |
Net Unrealized Gain (Loss) on Investment Securities | 13,400,885 |
Cost of Purchases | 26,285,000 |
Proceeds of Sales | (34,332,844) |
Amortization/Accretion | (1,727,797) |
Transfers into Level 3 | 48,280,245 |
Transfers out of Level 3 | (31,673,881) |
Ending Balance | $101,007,082 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2022 | $13,416,879 |
The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities and, Derivative Instruments and Other Financial Instruments 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):
U.S. Government and U.S. Government Agency Obligations | 0.0% |
AAA,AA,A | 1.0% |
BBB | 1.9% |
BB | 11.4% |
B | 7.3% |
CCC,CC,C | 1.7% |
Not Rated | 24.2% |
Equities | 45.7% |
Short-Term Investments and Net Other Assets | 6.8% |
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, 2022 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $62,982,889) — See accompanying schedule: Unaffiliated issuers (cost $6,227,461,386) | $6,845,728,772 | |
Fidelity Central Funds (cost $566,918,468) | 566,967,134 | |
Other affiliated issuers (cost $71,434,557) | 107,190,527 | |
Total Investment in Securities (cost $6,865,814,411) | $7,519,886,433 | |
Cash | 32,573,908 | |
Receivable for investments sold | 14,945,159 | |
Receivable for fund shares sold | 12,398,768 | |
Dividends receivable | 2,843,365 | |
Interest receivable | 22,602,782 | |
Distributions receivable from Fidelity Central Funds | 65,336 | |
Prepaid expenses | 5,410 | |
Other receivables | 465 | |
Total assets | 7,605,321,626 | |
Liabilities | ||
Payable for investments purchased | $58,147,072 | |
Payable for fund shares redeemed | 18,085,287 | |
Accrued management fee | 3,369,269 | |
Distribution and service plan fees payable | 188,378 | |
Other affiliated payables | 944,115 | |
Other payables and accrued expenses | 60,112 | |
Collateral on securities loaned | 63,804,278 | |
Total liabilities | 144,598,511 | |
Net Assets | $7,460,723,115 | |
Net Assets consist of: | ||
Paid in capital | $6,673,087,874 | |
Total accumulated earnings (loss) | 787,635,241 | |
Net Assets | $7,460,723,115 | |
Net Asset Value and Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($389,210,866 ÷ 29,231,350 shares)(a) | $13.31 | |
Maximum offering price per share (100/96.00 of $13.31) | $13.86 | |
Class M: | ||
Net Asset Value and redemption price per share ($56,834,771 ÷ 4,267,006 shares)(a) | $13.32 | |
Maximum offering price per share (100/96.00 of $13.32) | $13.88 | |
Class C: | ||
Net Asset Value and offering price per share ($111,618,878 ÷ 8,528,034 shares)(a) | $13.09 | |
Real Estate Income: | ||
Net Asset Value, offering price and redemption price per share ($2,887,057,619 ÷ 215,294,159 shares) | $13.41 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($2,290,565,609 ÷ 171,527,920 shares) | $13.35 | |
Class Z: | ||
Net Asset Value, offering price and redemption price per share ($1,725,435,372 ÷ 129,230,252 shares) | $13.35 |
(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, 2022 (Unaudited) | ||
Investment Income | ||
Dividends (including $1,336,437 earned from other affiliated issuers) | $51,855,182 | |
Interest | 69,994,946 | |
Income from Fidelity Central Funds (including $113,985 from security lending) | 370,055 | |
Total income | 122,220,183 | |
Expenses | ||
Management fee | $19,540,477 | |
Transfer agent fees | 4,893,099 | |
Distribution and service plan fees | 1,148,393 | |
Accounting fees | 733,664 | |
Custodian fees and expenses | 18,699 | |
Independent trustees' fees and expenses | 12,650 | |
Registration fees | 128,389 | |
Audit | 51,009 | |
Legal | 4,525 | |
Miscellaneous | 19,822 | |
Total expenses before reductions | 26,550,727 | |
Expense reductions | (115,145) | |
Total expenses after reductions | 26,435,582 | |
Net investment income (loss) | 95,784,601 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 147,121,285 | |
Affiliated issuers | 3,072,835 | |
Foreign currency transactions | 72,512 | |
Total net realized gain (loss) | 150,266,632 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | (192,189,116) | |
Fidelity Central Funds | (1) | |
Other affiliated issuers | (15,068,795) | |
Assets and liabilities in foreign currencies | (595) | |
Total change in net unrealized appreciation (depreciation) | (207,258,507) | |
Net gain (loss) | (56,991,875) | |
Net increase (decrease) in net assets resulting from operations | $38,792,726 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended January 31, 2022 (Unaudited) | Year ended July 31, 2021 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $95,784,601 | $173,083,539 |
Net realized gain (loss) | 150,266,632 | 62,884,184 |
Change in net unrealized appreciation (depreciation) | (207,258,507) | 1,137,122,779 |
Net increase (decrease) in net assets resulting from operations | 38,792,726 | 1,373,090,502 |
Distributions to shareholders | (111,775,259) | (214,833,122) |
Share transactions - net increase (decrease) | 464,428,677 | 605,814,975 |
Total increase (decrease) in net assets | 391,446,144 | 1,764,072,355 |
Net Assets | ||
Beginning of period | 7,069,276,971 | 5,305,204,616 |
End of period | $7,460,723,115 | $7,069,276,971 |
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, | |||||
2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $13.43 | $11.02 | $12.43 | $11.99 | $12.32 | $12.25 |
Income from Investment Operations | ||||||
Net investment income (loss)A,B | .16 | .33 | .45 | .51 | .47 | .49 |
Net realized and unrealized gain (loss) | (.10) | 2.53 | (1.25) | .65 | (.22) | .14 |
Total from investment operations | .06 | 2.86 | (.80) | 1.16 | .25 | .63 |
Distributions from net investment income | (.16) | (.42)C | (.44) | (.51) | (.45) | (.48) |
Distributions from net realized gain | (.02) | (.03)C | (.16) | (.21) | (.13) | (.08) |
Total distributions | (.18) | (.45) | (.61)D | (.72) | (.58) | (.56) |
Redemption fees added to paid in capitalA | – | – | – | – | –E | –E |
Net asset value, end of period | $13.31 | $13.43 | $11.02 | $12.43 | $11.99 | $12.32 |
Total ReturnF,G,H | .43% | 26.64% | (6.88)% | 10.15% | 2.13% | 5.37% |
Ratios to Average Net AssetsB,I,J | ||||||
Expenses before reductions | .99%K | .99% | 1.01% | 1.01% | 1.02% | 1.03% |
Expenses net of fee waivers, if any | .98%K | .99% | 1.01% | 1.01% | 1.02% | 1.03% |
Expenses net of all reductions | .98%K | .99% | 1.00% | 1.01% | 1.01% | 1.02% |
Net investment income (loss) | 2.30%K | 2.75% | 3.85% | 4.29% | 3.98% | 4.08% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $389,211 | $384,382 | $324,031 | $325,296 | $297,722 | $355,400 |
Portfolio turnover rateL | 33%K | 26% | 32%M | 17% | 27% | 22% |
A Calculated based on average shares outstanding during the period.
B Net investment income (loss) is affected by the timing of the declaration of dividends by any underlying mutual funds or exchange-traded funds (ETFs). Net investment income (loss) of any such underlying funds is not included in the Fund's net investment income (loss) ratio.
C The amount shown reflects reclassifications related to book to tax differences that were made in the year shown.
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 Total returns do not include the effect of the sales charges.
I 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.
J 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.
K Annualized
L Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
M 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, | |||||
2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $13.43 | $11.02 | $12.43 | $11.99 | $12.32 | $12.26 |
Income from Investment Operations | ||||||
Net investment income (loss)A,B | .16 | .33 | .45 | .51 | .47 | .49 |
Net realized and unrealized gain (loss) | (.09) | 2.53 | (1.26) | .65 | (.22) | .13 |
Total from investment operations | .07 | 2.86 | (.81) | 1.16 | .25 | .62 |
Distributions from net investment income | (.16) | (.42)C | (.44) | (.51) | (.45) | (.48) |
Distributions from net realized gain | (.02) | (.03)C | (.16) | (.21) | (.13) | (.08) |
Total distributions | (.18) | (.45) | (.60) | (.72) | (.58) | (.56) |
Redemption fees added to paid in capitalA | – | – | – | – | –D | –D |
Net asset value, end of period | $13.32 | $13.43 | $11.02 | $12.43 | $11.99 | $12.32 |
Total ReturnE,F,G | .49% | 26.62% | (6.89)% | 10.12% | 2.10% | 5.26% |
Ratios to Average Net AssetsB,H,I | ||||||
Expenses before reductions | .99%J | 1.01% | 1.03% | 1.04% | 1.04% | 1.06% |
Expenses net of fee waivers, if any | .98%J | 1.01% | 1.03% | 1.04% | 1.04% | 1.06% |
Expenses net of all reductions | .98%J | 1.01% | 1.03% | 1.04% | 1.04% | 1.05% |
Net investment income (loss) | 2.30%J | 2.73% | 3.82% | 4.26% | 3.95% | 4.05% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $56,835 | $57,338 | $49,387 | $60,540 | $55,175 | $64,158 |
Portfolio turnover rateK | 33%J | 26% | 32%L | 17% | 27% | 22% |
A Calculated based on average shares outstanding during the period.
B Net investment income (loss) is affected by the timing of the declaration of dividends by any underlying mutual funds or exchange-traded funds (ETFs). Net investment income (loss) of any such underlying funds is not included in the Fund's net investment income (loss) ratio.
C The amount shown reflects reclassifications related to book to tax differences that were made in the year shown.
D Amount represents less than $.005 per share.
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 Total returns do not include the effect of the sales charges.
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).
L 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, | |||||
2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $13.21 | $10.88 | $12.28 | $11.85 | $12.20 | $12.14 |
Income from Investment Operations | ||||||
Net investment income (loss)A,B | .10 | .24 | .36 | .42 | .38 | .40 |
Net realized and unrealized gain (loss) | (.08) | 2.48 | (1.23) | .64 | (.22) | .13 |
Total from investment operations | .02 | 2.72 | (.87) | 1.06 | .16 | .53 |
Distributions from net investment income | (.12) | (.36)C | (.36) | (.42) | (.37) | (.39) |
Distributions from net realized gain | (.02) | (.03)C | (.16) | (.21) | (.13) | (.08) |
Total distributions | (.14) | (.39) | (.53)D | (.63) | (.51)D | (.47) |
Redemption fees added to paid in capitalA | – | – | – | – | –E | –E |
Net asset value, end of period | $13.09 | $13.21 | $10.88 | $12.28 | $11.85 | $12.20 |
Total ReturnF,G,H | .11% | 25.64% | (7.50)% | 9.34% | 1.31% | 4.54% |
Ratios to Average Net AssetsB,I,J | ||||||
Expenses before reductions | 1.72%K | 1.74% | 1.76% | 1.76% | 1.76% | 1.78% |
Expenses net of fee waivers, if any | 1.72%K | 1.74% | 1.76% | 1.76% | 1.76% | 1.78% |
Expenses net of all reductions | 1.72%K | 1.74% | 1.76% | 1.76% | 1.76% | 1.78% |
Net investment income (loss) | 1.56%K | 2.00% | 3.09% | 3.54% | 3.23% | 3.32% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $111,619 | $120,072 | $150,653 | $210,156 | $227,458 | $287,598 |
Portfolio turnover rateL | 33%K | 26% | 32%M | 17% | 27% | 22% |
A Calculated based on average shares outstanding during the period.
B Net investment income (loss) is affected by the timing of the declaration of dividends by any underlying mutual funds or exchange-traded funds (ETFs). Net investment income (loss) of any such underlying funds is not included in the Fund's net investment income (loss) ratio.
C The amount shown reflects reclassifications related to book to tax differences that were made in the year shown.
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 Total returns do not include the effect of the contingent deferred sales charge.
I 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.
J 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.
K Annualized
L Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
M 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, | |||||
2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $13.52 | $11.09 | $12.50 | $12.05 | $12.38 | $12.31 |
Income from Investment Operations | ||||||
Net investment income (loss)A,B | .18 | .37 | .48 | .54 | .51 | .52 |
Net realized and unrealized gain (loss) | (.09) | 2.53 | (1.25) | .66 | (.22) | .14 |
Total from investment operations | .09 | 2.90 | (.77) | 1.20 | .29 | .66 |
Distributions from net investment income | (.18) | (.44)C | (.48) | (.54) | (.48) | (.51) |
Distributions from net realized gain | (.02) | (.03)C | (.16) | (.21) | (.13) | (.08) |
Total distributions | (.20) | (.47) | (.64) | (.75) | (.62)D | (.59) |
Redemption fees added to paid in capitalA | – | – | – | – | –E | –E |
Net asset value, end of period | $13.41 | $13.52 | $11.09 | $12.50 | $12.05 | $12.38 |
Total ReturnF,G | .65% | 26.88% | (6.58)% | 10.47% | 2.40% | 5.60% |
Ratios to Average Net AssetsB,H,I | ||||||
Expenses before reductions | .71%J | .72% | .73% | .75% | .75% | .78% |
Expenses net of fee waivers, if any | .70%J | .72% | .73% | .75% | .75% | .78% |
Expenses net of all reductions | .70%J | .72% | .73% | .75% | .75% | .77% |
Net investment income (loss) | 2.58%J | 3.02% | 4.12% | 4.55% | 4.24% | 4.33% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $2,887,058 | $2,777,243 | $2,205,319 | $2,691,820 | $2,531,397 | $2,630,901 |
Portfolio turnover rateK | 33%J | 26% | 32%L | 17% | 27% | 22% |
A Calculated based on average shares outstanding during the period.
B Net investment income (loss) is affected by the timing of the declaration of dividends by any underlying mutual funds or exchange-traded funds (ETFs). Net investment income (loss) of any such underlying funds is not included in the Fund's net investment income (loss) ratio.
C The amount shown reflects reclassifications related to book to tax differences that were made in the year shown.
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).
L 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, | |||||
2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $13.47 | $11.04 | $12.45 | $12.01 | $12.34 | $12.27 |
Income from Investment Operations | ||||||
Net investment income (loss)A,B | .17 | .37 | .48 | .54 | .51 | .52 |
Net realized and unrealized gain (loss) | (.09) | 2.53 | (1.25) | .65 | (.22) | .14 |
Total from investment operations | .08 | 2.90 | (.77) | 1.19 | .29 | .66 |
Distributions from net investment income | (.18) | (.44)C | (.47) | (.54) | (.49) | (.51) |
Distributions from net realized gain | (.02) | (.03)C | (.16) | (.21) | (.13) | (.08) |
Total distributions | (.20) | (.47) | (.64)D | (.75) | (.62) | (.59) |
Redemption fees added to paid in capitalA | – | – | – | – | –E | –E |
Net asset value, end of period | $13.35 | $13.47 | $11.04 | $12.45 | $12.01 | $12.34 |
Total ReturnF,G | .57% | 27.03% | (6.62)% | 10.43% | 2.41% | 5.66% |
Ratios to Average Net AssetsB,H,I | ||||||
Expenses before reductions | .71%J | .71% | .74% | .75% | .75% | .76% |
Expenses net of fee waivers, if any | .70%J | .71% | .74% | .74% | .75% | .76% |
Expenses net of all reductions | .70%J | .71% | .74% | .74% | .75% | .76% |
Net investment income (loss) | 2.58%J | 3.03% | 4.11% | 4.55% | 4.25% | 4.34% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $2,290,566 | $2,810,475 | $1,782,594 | $2,386,308 | $2,142,260 | $1,951,293 |
Portfolio turnover rateK | 33%J | 26% | 32%L | 17% | 27% | 22% |
A Calculated based on average shares outstanding during the period.
B Net investment income (loss) is affected by the timing of the declaration of dividends by any underlying mutual funds or exchange-traded funds (ETFs). Net investment income (loss) of any such underlying funds is not included in the Fund's net investment income (loss) ratio.
C The amount shown reflects reclassifications related to book to tax differences that were made in the year shown.
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).
L 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, | |||
2022 | 2021 | 2020 | 2019 A | |
Selected Per–Share Data | ||||
Net asset value, beginning of period | $13.47 | $11.04 | $12.45 | $11.74 |
Income from Investment Operations | ||||
Net investment income (loss)B,C | .18 | .38 | .49 | .47 |
Net realized and unrealized gain (loss) | (.09) | 2.53 | (1.25) | .67 |
Total from investment operations | .09 | 2.91 | (.76) | 1.14 |
Distributions from net investment income | (.19) | (.45)D | (.49) | (.42) |
Distributions from net realized gain | (.02) | (.03)D | (.16) | (.02) |
Total distributions | (.21) | (.48) | (.65) | (.43)E |
Net asset value, end of period | $13.35 | $13.47 | $11.04 | $12.45 |
Total ReturnF,G | .66% | 27.15% | (6.50)% | 10.00% |
Ratios to Average Net AssetsC,H,I | ||||
Expenses before reductions | .59%J | .60% | .62% | .62%J |
Expenses net of fee waivers, if any | .59%J | .60% | .62% | .62%J |
Expenses net of all reductions | .59%J | .60% | .61% | .62%J |
Net investment income (loss) | 2.69%J | 3.14% | 4.24% | 4.71%J |
Supplemental Data | ||||
Net assets, end of period (000 omitted) | $1,725,435 | $919,766 | $793,220 | $467,324 |
Portfolio turnover rateK | 33%J | 26% | 32%L | 17%J |
A For the period October 2, 2018 (commencement of sale of shares) through July 31, 2019.
B Calculated based on average shares outstanding during the period.
C Net investment income (loss) is affected by the timing of the declaration of dividends by any underlying mutual funds or exchange-traded funds (ETFs). Net investment income (loss) of any such underlying funds is not included in the Fund's net investment income (loss) ratio.
D The amount shown reflects reclassifications related to book to tax differences that were made in the year shown.
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 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).
L 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, 2022
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 eight years from the initial date of purchase, with certain exceptions.
2. Investments in Fidelity Central Funds.
Funds may invest 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 Schedule of Investments lists any Fidelity Central Funds held as an investment as of period end, but does not include the underlying holdings of each Fidelity Central Fund. An investing fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
Based on its investment objective, each Fidelity Central Fund may invest or participate in various investment vehicles or strategies that are similar to those of the investing fund. These strategies are consistent with the investment objectives of the investing fund and may involve certain economic risks which may cause a decline in value of each of the Fidelity Central Funds and thus a decline in the value of the investing fund.
Fidelity Central Fund | Investment Manager | Investment Objective | Investment Practices | Expense Ratio(a) |
Fidelity Money Market Central Funds | Fidelity Management & Research Company LLC (FMR) | Each fund seeks to obtain a high level of current income consistent with the preservation of capital and liquidity. | Short-term Investments | Less than .005% |
(a) Expenses expressed as a percentage of average net assets and are as of each underlying Central Fund's most recent annual or semi-annual shareholder report.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds which contain the significant accounting policies (including investment valuation policies) of those funds, and are not covered by the Report of Independent Registered Public Accounting Firm, are available on the Securities and Exchange Commission 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 Fund's Schedule of Investments lists any underlying mutual funds or exchange-traded funds (ETFs) but does not include the underlying holdings of these funds. 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 – Unadjusted 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, 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) |
Corporate Bonds | $4,385,241 | Recovery value | Recovery value | 0.0% | Increase |
Indicative market price | Evaluated bid | $105.35 | Increase | ||
Asset-Backed Securities | $271 | Indicative market price | Evaluated bid | $0.00 - $0.01 / $0.01 | Increase |
Commercial Mortgage Securities | $34,235,076 | Indicative market price | Evaluated bid | $1.10 - $116.65 / $76.93 | Increase |
Preferred Securities | $10,122 | Indicative market price | Evaluated bid | $0.00 - $2.00 / $1.98 | Increase |
Bank Loan Obligations | $62,376,372 | Market approach | Transaction price | $100.00 | Increase |
Discounted cash flow | Yield | 8.7% - 9.2% / 9.1% | Decrease | ||
Indicative market price | Evaluated bid | $99.75 | 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, 2022, 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. Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of a fund include an amount in addition to trade execution, which may be rebated back to a fund. Any such rebates are included in net realized gain (loss) on investments in the Statement of Operations. 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. Funds may file withholding tax reclaims in certain jurisdictions to recover a portion of amounts previously withheld. Any withholding tax reclaims income is included in the Statement of Operations in dividends. Any receivables for withholding tax reclaims are included in the Statement of Assets and Liabilities in dividends receivable. 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 a 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 a fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred, as applicable. Certain expense reductions may also differ by class, if applicable. 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. Expenses included in the accompanying financial statements reflect the expenses of that fund and do not include any expenses associated with any underlying mutual funds or exchange-traded funds. Although not included in a fund's expenses, a fund indirectly bears its proportionate share of these expenses through the net asset value of each underlying mutual fund or exchange-traded fund. 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 equity-debt classifications, certain conversion ratio adjustments, passive foreign investment companies (PFIC), market discount, foreign currency transactions, partnership 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 | $818,907,117 |
Gross unrealized depreciation | (167,088,983) |
Net unrealized appreciation (depreciation) | $651,818,134 |
Tax cost | $6,868,068,299 |
Restricted Securities (including Private Placements). Funds 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 held at period end is included at the end of the Schedule of Investments, if applicable.
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.
New Accounting Pronouncement. In March 2020, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU), ASU 2020-04, which provides optional, temporary relief with respect to the financial reporting of contracts subject to certain types of modifications due to the planned discontinuation of the London Interbank Offered Rate (LIBOR) and other IBOR-based reference rates. The temporary relief provided by ASU 2020-04 is effective for certain reference rate-related contract modifications that occur during the period March 12, 2020 through December 31, 2022. Management does not expect the adoption of ASU 2020-04 to have a material impact on the Fund's financial statements.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, U.S. government securities and in-kind transactions, as applicable, are noted in the table below.
Purchases ($) | Sales ($) | |
Fidelity Real Estate Income Fund | 1,866,861,750 | 1,132,001,363 |
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 .22% 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 .52% 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% | $489,562 | $18,692 |
Class M | -% | .25% | 71,964 | – |
Class C | .75% | .25% | 586,867 | 58,142 |
$1,148,393 | $76,834 |
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 | $13,615 |
Class M | 2,651 |
Class C(a) | 1,036 |
$17,302 |
(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 | $364,651 | .19 |
Class M | 53,436 | .19 |
Class C | 101,033 | .17 |
Real Estate Income | 2,251,529 | .16 |
Class I | 1,765,536 | .16 |
Class Z | 356,914 | .04 |
$4,893,099 |
(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 | .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 Real Estate Income Fund | $9,108 |
Interfund Trades. Funds may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Any interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note. Interfund trades during the period are noted in the table below.
Purchases ($) | Sales ($) | Realized Gain (Loss) ($) | |
Fidelity Real Estate Income Fund | 10,942,026 | 21,850,588 | 1,406,738 |
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. During the period, there were no borrowings on this line of credit.
Amount | |
Fidelity Real Estate Income Fund | $5,729 |
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 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 | $11,653 | $7,507 | $– |
8. Expense Reductions.
Through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses. During the period, custodian credits reduced the Fund's expenses by $569.
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 $114,576.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended January 31, 2022 | Year ended July 31, 2021 | |
Fidelity Real Estate Income Fund | ||
Distributions to shareholders | ||
Class A | $5,221,820 | $12,331,880 |
Class M | 753,576 | 1,887,965 |
Class C | 1,200,626 | 4,798,344 |
Real Estate Income | 42,517,534 | 81,764,089 |
Class I | 33,077,631 | 86,521,059 |
Class Z | 29,004,072 | 27,529,785 |
Total | $111,775,259 | $214,833,122 |
10. Share Transactions.
Share transactions for each class were as follows and may contain in-kind transactions, automatic conversions between classes or exchanges between affiliated funds:
Shares | Shares | Dollars | Dollars | |
Six months ended January 31, 2022 | Year ended July 31, 2021 | Six months ended January 31, 2022 | Year ended July 31, 2021 | |
Fidelity Real Estate Income Fund | ||||
Class A | ||||
Shares sold | 2,880,519 | 8,136,569 | $38,883,710 | $101,075,219 |
Reinvestment of distributions | 293,122 | 801,826 | 3,960,739 | 9,213,403 |
Shares redeemed | (2,572,927) | (9,710,895) | (34,751,448) | (115,179,123) |
Net increase (decrease) | 600,714 | (772,500) | $8,093,001 | $(4,890,501) |
Class M | ||||
Shares sold | 274,588 | 487,991 | $3,707,654 | $6,084,348 |
Reinvestment of distributions | 55,027 | 162,222 | 744,083 | 1,864,757 |
Shares redeemed | (332,539) | (860,551) | (4,510,522) | (10,214,340) |
Net increase (decrease) | (2,924) | (210,338) | $(58,785) | $(2,265,235) |
Class C | ||||
Shares sold | 549,766 | 989,182 | $7,312,227 | $12,002,432 |
Reinvestment of distributions | 88,383 | 411,102 | 1,174,812 | 4,669,922 |
Shares redeemed | (1,202,113) | (6,160,079) | (15,959,124) | (73,385,638) |
Net increase (decrease) | (563,964) | (4,759,795) | $(7,472,085) | $(56,713,284) |
Real Estate Income | ||||
Shares sold | 30,018,523 | 74,411,219 | $408,566,398 | $925,077,942 |
Reinvestment of distributions | 2,828,188 | 6,329,008 | 38,483,598 | 73,049,209 |
Shares redeemed | (22,941,777) | (74,275,882) | (311,243,453) | (890,231,669) |
Net increase (decrease) | 9,904,934 | 6,464,345 | $135,806,543 | $107,895,482 |
Class I | ||||
Shares sold | 32,054,451 | 103,155,973 | $434,738,002 | $1,245,278,753 |
Reinvestment of distributions | 2,194,576 | 6,802,374 | 29,746,853 | 78,374,070 |
Shares redeemed | (71,439,117) | (62,658,053) | (965,066,479) | (740,583,076) |
Net increase (decrease) | (37,190,090) | 47,300,294 | $(500,581,624) | $583,069,747 |
Class Z | ||||
Shares sold | 86,316,615 | 33,570,549 | $1,169,210,137 | $409,694,150 |
Reinvestment of distributions | 1,906,506 | 1,849,171 | 25,824,442 | 21,304,595 |
Shares redeemed | (27,295,199) | (38,953,817) | (366,392,952) | (452,279,979) |
Net increase (decrease) | 60,927,922 | (3,534,097) | $828,641,627 | $(21,281,234) |
11. Other.
A 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, a fund may also enter into contracts that provide general indemnifications. A fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against a 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, 2021 to January 31, 2022).
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, 2021 | Ending Account Value January 31, 2022 | Expenses Paid During Period-B August 1, 2021 to January 31, 2022 | |
Fidelity Real Estate Income Fund | ||||
Class A | .98% | |||
Actual | $1,000.00 | $1,004.30 | $4.95 | |
Hypothetical-C | $1,000.00 | $1,020.27 | $4.99 | |
Class M | .98% | |||
Actual | $1,000.00 | $1,004.90 | $4.95 | |
Hypothetical-C | $1,000.00 | $1,020.27 | $4.99 | |
Class C | 1.72% | |||
Actual | $1,000.00 | $1,001.10 | $8.68 | |
Hypothetical-C | $1,000.00 | $1,016.53 | $8.74 | |
Real Estate Income | .70% | |||
Actual | $1,000.00 | $1,006.50 | $3.54 | |
Hypothetical-C | $1,000.00 | $1,021.68 | $3.57 | |
Class I | .70% | |||
Actual | $1,000.00 | $1,005.70 | $3.54 | |
Hypothetical-C | $1,000.00 | $1,021.68 | $3.57 | |
Class Z | .59% | |||
Actual | $1,000.00 | $1,006.60 | $2.98 | |
Hypothetical-C | $1,000.00 | $1,022.23 | $3.01 |
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
REI-SANN-0422
1.789716.118
Fidelity® Series Blue Chip Growth Fund
Semi-Annual Report
January 31, 2022
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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. © 2022 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 COVID-19 emerged as a public health emergency that had a major influence on financial markets, primarily based on its impact on the global economy and corporate earnings. On March 11, 2020, the World Health Organization declared the COVID-19 outbreak a pandemic, citing sustained risk of further global spread. The pandemic prompted a number of measures to limit the spread of COVID-19, 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. To help stem the turmoil, the U.S. government took unprecedented action – in concert with the U.S. Federal Reserve and central banks around the world – to help support consumers, businesses, and the broader economy, and to limit disruption to the financial system.
In general, the overall impact of the pandemic lessened in 2021, amid a resilient economy and widespread distribution of three COVID-19 vaccines granted emergency use authorization from the U.S. Food and Drug Administration (FDA) early in the year. Still, the situation remains dynamic, and the extent and duration of its influence on financial markets and the economy is highly uncertain, due in part to a recent spike in cases based on highly contagious variants of the coronavirus.
Extreme events such as the COVID-19 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 continue to take extra steps to be responsive to customer needs. We encourage you to visit us online, where we offer ongoing updates, commentary, and analysis on the markets and our funds.
Investment Summary (Unaudited)
Top Ten Stocks as of January 31, 2022
% of fund's net assets | |
Apple, Inc. | 9.5 |
Microsoft Corp. | 6.0 |
Alphabet, Inc. Class A | 5.9 |
Amazon.com, Inc. | 5.8 |
NVIDIA Corp. | 4.9 |
Meta Platforms, Inc. Class A | 3.9 |
iShares Russell 1000 Growth Index ETF | 3.7 |
Tesla, Inc. | 3.3 |
lululemon athletica, Inc. | 3.0 |
Marvell Technology, Inc. | 2.9 |
48.9 |
Top Five Market Sectors as of January 31, 2022
% of fund's net assets | |
Information Technology | 36.7 |
Consumer Discretionary | 27.6 |
Communication Services | 13.0 |
Health Care | 5.8 |
Industrials | 5.5 |
Asset Allocation (% of fund's net assets)
As of January 31, 2022* | ||
Stocks | 91.6% | |
Convertible Securities | 2.1% | |
Other Investments | 3.7% | |
Short-Term Investments and Net Other Assets (Liabilities) | 2.6% |
* Foreign investments – 6.4%
Schedule of Investments January 31, 2022 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 91.5% | |||
Shares | Value | ||
COMMUNICATION SERVICES - 12.8% | |||
Entertainment - 2.1% | |||
Endeavor Group Holdings, Inc. (a)(b) | 79,400 | $2,490,778 | |
Endeavor Group Holdings, Inc. (c) | 320,752 | 10,061,990 | |
Endeavor Group Holdings, Inc. Class A (d) | 92,536 | 2,902,854 | |
Netflix, Inc. (a) | 154,624 | 66,046,095 | |
Roblox Corp. (a) | 97,900 | 6,447,694 | |
Roku, Inc. Class A (a) | 43,455 | 7,128,793 | |
Sea Ltd. ADR (a) | 242,131 | 36,394,711 | |
131,472,915 | |||
Interactive Media & Services - 10.6% | |||
Alphabet, Inc. Class A (a) | 137,213 | 371,307,983 | |
Bumble, Inc. | 53,900 | 1,590,589 | |
Meta Platforms, Inc. Class A (a) | 780,010 | 244,345,933 | |
Snap, Inc. Class A (a)(b) | 1,295,600 | 42,158,824 | |
Tencent Holdings Ltd. | 54,200 | 3,396,296 | |
ZipRecruiter, Inc. (a) | 96,500 | 2,093,085 | |
664,892,710 | |||
Media - 0.1% | |||
Criteo SA sponsored ADR (a) | 24,321 | 822,050 | |
DISH Network Corp. Class A (a) | 128,700 | 4,041,180 | |
4,863,230 | |||
TOTAL COMMUNICATION SERVICES | 801,228,855 | ||
CONSUMER DISCRETIONARY - 27.3% | |||
Automobiles - 4.2% | |||
Ford Motor Co. | 192,600 | 3,909,780 | |
General Motors Co. (a) | 82,100 | 4,329,133 | |
Neutron Holdings, Inc. (a)(d)(e) | 691,699 | 48,419 | |
Rad Power Bikes, Inc. (a)(d)(e) | 110,210 | 1,056,231 | |
Rivian Automotive, Inc. (b) | 53,800 | 3,536,812 | |
Rivian Automotive, Inc. | 519,495 | 30,736,441 | |
Tesla, Inc. (a) | 219,735 | 205,830,169 | |
XPeng, Inc.: | |||
ADR (a) | 344,600 | 12,092,014 | |
Class A | 58,300 | 1,016,832 | |
262,555,831 | |||
Diversified Consumer Services - 0.0% | |||
Mister Car Wash, Inc. | 59,700 | 1,026,840 | |
Hotels, Restaurants & Leisure - 4.2% | |||
Airbnb, Inc. Class A (a) | 395,000 | 60,818,150 | |
Booking Holdings, Inc. (a) | 2,800 | 6,877,164 | |
Caesars Entertainment, Inc. (a) | 317,147 | 24,147,573 | |
Chipotle Mexican Grill, Inc. (a) | 14,042 | 20,860,514 | |
Churchill Downs, Inc. | 32,052 | 6,740,536 | |
Dutch Bros, Inc. (b) | 48,400 | 2,524,060 | |
Evolution AB (c) | 15,400 | 1,916,025 | |
Expedia, Inc. (a) | 77,084 | 14,128,726 | |
Flutter Entertainment PLC (a) | 5,800 | 883,767 | |
Hilton Worldwide Holdings, Inc. (a) | 115,500 | 16,760,205 | |
Marriott International, Inc. Class A (a) | 146,700 | 23,636,304 | |
MGM Resorts International | 102,600 | 4,383,072 | |
Penn National Gaming, Inc. (a) | 1,052,243 | 47,992,803 | |
Planet Fitness, Inc. (a) | 13,800 | 1,223,232 | |
Sweetgreen, Inc. | 776,159 | 21,130,929 | |
Sweetgreen, Inc. Class A (b) | 129,600 | 3,920,400 | |
Vail Resorts, Inc. | 8,476 | 2,348,700 | |
260,292,160 | |||
Household Durables - 0.1% | |||
Lennar Corp. Class A | 29,400 | 2,825,634 | |
Tempur Sealy International, Inc. | 107,900 | 4,295,499 | |
TRI Pointe Homes, Inc. (a) | 16,645 | 396,317 | |
7,517,450 | |||
Internet & Direct Marketing Retail - 7.1% | |||
Amazon.com, Inc. (a) | 121,480 | 363,403,776 | |
BARK, Inc. (a)(b) | 226,100 | 852,397 | |
BARK, Inc. (d) | 240,617 | 907,126 | |
Cazoo Group Ltd. | 562,851 | 2,534,518 | |
Chewy, Inc. (a)(b) | 157,300 | 7,489,053 | |
Deliveroo PLC Class A (a)(c) | 861,800 | 1,810,611 | |
Delivery Hero AG (a)(c) | 11,200 | 864,527 | |
Doordash, Inc. (a)(b) | 55,500 | 6,298,695 | |
Etsy, Inc. (a) | 56,500 | 8,875,020 | |
FSN E-Commerce Ventures Private Ltd. (a)(d) | 818,460 | 15,406,710 | |
Global-e Online Ltd. (a) | 55,400 | 1,978,334 | |
JD.com, Inc.: | |||
Class A (a) | 5,328 | 201,939 | |
sponsored ADR (a) | 18,300 | 1,370,304 | |
Overstock.com, Inc. (a) | 38,651 | 1,852,929 | |
Pinduoduo, Inc. ADR (a) | 41,400 | 2,477,376 | |
Wayfair LLC Class A (a) | 177,788 | 27,720,705 | |
Zomato Ltd. (a)(d) | 3,149,000 | 3,435,464 | |
447,479,484 | |||
Leisure Products - 0.0% | |||
Peloton Interactive, Inc. Class A (a)(b) | 72,300 | 1,975,959 | |
Multiline Retail - 0.4% | |||
Dollar Tree, Inc. (a) | 168,400 | 22,097,448 | |
Ollie's Bargain Outlet Holdings, Inc. (a) | 64,800 | 3,106,512 | |
25,203,960 | |||
Specialty Retail - 5.5% | |||
American Eagle Outfitters, Inc. (b) | 992,700 | 22,663,341 | |
Aritzia, Inc. (a) | 229,800 | 10,660,666 | |
Bath & Body Works, Inc. | 49,300 | 2,764,251 | |
Burlington Stores, Inc. (a) | 68,003 | 16,111,951 | |
Carvana Co. Class A (a) | 204,631 | 33,162,500 | |
Citi Trends, Inc. (a)(b) | 39,900 | 1,943,928 | |
Dick's Sporting Goods, Inc. | 100,773 | 11,629,204 | |
Fanatics, Inc. Class A (d)(e) | 159,285 | 10,805,894 | |
Five Below, Inc. (a) | 87,084 | 14,281,776 | |
Floor & Decor Holdings, Inc. Class A (a) | 142,140 | 15,453,461 | |
Foot Locker, Inc. | 99,100 | 4,427,788 | |
JD Sports Fashion PLC | 794,500 | 2,037,233 | |
Lowe's Companies, Inc. | 396,706 | 94,158,169 | |
RH (a)(b) | 146,604 | 59,055,023 | |
Signet Jewelers Ltd. (b) | 58,200 | 5,012,766 | |
The Children's Place, Inc. (a) | 15,600 | 1,103,700 | |
TJX Companies, Inc. | 195,600 | 14,077,332 | |
Victoria's Secret & Co. (a) | 340,427 | 19,006,039 | |
Warby Parker, Inc. (a)(b) | 229,000 | 8,511,930 | |
346,866,952 | |||
Textiles, Apparel & Luxury Goods - 5.8% | |||
Allbirds, Inc.: | |||
Class A (b) | 12,800 | 158,208 | |
Class B | 94,500 | 1,051,218 | |
Capri Holdings Ltd. (a) | 554,800 | 33,326,836 | |
Crocs, Inc. (a) | 189,384 | 19,434,586 | |
Deckers Outdoor Corp. (a) | 63,795 | 20,429,073 | |
Hermes International SCA | 1,401 | 2,103,488 | |
lululemon athletica, Inc. (a) | 565,974 | 188,899,482 | |
LVMH Moet Hennessy Louis Vuitton SE | 13,661 | 11,220,837 | |
Moncler SpA | 51,623 | 3,313,141 | |
NIKE, Inc. Class B | 319,513 | 47,310,290 | |
On Holding AG (b) | 49,800 | 1,313,226 | |
PVH Corp. | 179,620 | 17,065,696 | |
Tapestry, Inc. | 284,300 | 10,789,185 | |
Tory Burch LLC (a)(d)(e)(f) | 106,817 | 5,897,367 | |
362,312,633 | |||
TOTAL CONSUMER DISCRETIONARY | 1,715,231,269 | ||
CONSUMER STAPLES - 0.5% | |||
Beverages - 0.4% | |||
Boston Beer Co., Inc. Class A (a) | 17,700 | 7,448,691 | |
Celsius Holdings, Inc. (a) | 376,000 | 17,946,480 | |
25,395,171 | |||
Food & Staples Retailing - 0.0% | |||
Blink Health, Inc. Series A1 (a)(d)(e) | 6,283 | 239,885 | |
Food Products - 0.0% | |||
Sovos Brands, Inc. (b) | 26,200 | 384,354 | |
The Real Good Food Co., Inc. | 5,400 | 32,076 | |
416,430 | |||
Household Products - 0.1% | |||
Procter & Gamble Co. | 15,800 | 2,535,110 | |
Personal Products - 0.0% | |||
Olaplex Holdings, Inc. | 94,900 | 2,072,616 | |
Tobacco - 0.0% | |||
JUUL Labs, Inc. Class B (a)(d)(e) | 2,450 | 106,134 | |
TOTAL CONSUMER STAPLES | 30,765,346 | ||
ENERGY - 2.1% | |||
Energy Equipment & Services - 0.0% | |||
Halliburton Co. | 63,700 | 1,958,138 | |
Oil, Gas & Consumable Fuels - 2.1% | |||
Cenovus Energy, Inc. (Canada) | 196,700 | 2,861,175 | |
Cheniere Energy, Inc. | 29,300 | 3,278,670 | |
Denbury, Inc. (a) | 76,900 | 5,778,266 | |
Devon Energy Corp. | 146,700 | 7,418,619 | |
Diamondback Energy, Inc. | 101,400 | 12,792,624 | |
EOG Resources, Inc. | 148,300 | 16,532,484 | |
Hess Corp. | 209,900 | 19,371,671 | |
Marathon Oil Corp. | 61,500 | 1,197,405 | |
PDC Energy, Inc. | 10,500 | 622,335 | |
Phillips 66 Co. | 70,300 | 5,960,737 | |
Pioneer Natural Resources Co. | 35,900 | 7,858,151 | |
Range Resources Corp. (a) | 28,300 | 544,775 | |
Reliance Industries Ltd. | 1,159,149 | 37,379,486 | |
Reliance Industries Ltd. sponsored GDR (c) | 55,500 | 3,570,524 | |
Tourmaline Oil Corp. | 36,800 | 1,312,021 | |
Valero Energy Corp. | 75,600 | 6,272,532 | |
132,751,475 | |||
TOTAL ENERGY | 134,709,613 | ||
FINANCIALS - 1.1% | |||
Banks - 0.4% | |||
Bank of America Corp. | 122,000 | 5,629,080 | |
Kotak Mahindra Bank Ltd. (a) | 118,376 | 2,968,946 | |
Wells Fargo & Co. | 379,100 | 20,395,580 | |
28,993,606 | |||
Capital Markets - 0.3% | |||
Goldman Sachs Group, Inc. | 20,100 | 7,129,068 | |
Morgan Stanley | 115,000 | 11,792,100 | |
18,921,168 | |||
Consumer Finance - 0.2% | |||
American Express Co. | 52,300 | 9,404,586 | |
LendingClub Corp. (a) | 91,000 | 1,707,160 | |
11,111,746 | |||
Diversified Financial Services - 0.2% | |||
Ant International Co. Ltd. Class C (a)(d)(e) | 1,568,556 | 2,792,030 | |
Sonder Holdings, Inc. (d) | 69,833 | 598,329 | |
WeWork, Inc. (a) | 612,050 | 4,547,532 | |
WeWork, Inc. (d) | 441,635 | 3,281,348 | |
11,219,239 | |||
TOTAL FINANCIALS | 70,245,759 | ||
HEALTH CARE - 5.7% | |||
Biotechnology - 1.3% | |||
ADC Therapeutics SA (a) | 67,500 | 1,072,575 | |
Alnylam Pharmaceuticals, Inc. (a) | 102,481 | 14,101,386 | |
Arcutis Biotherapeutics, Inc. (a) | 88,800 | 1,341,768 | |
Argenx SE ADR (a) | 11,437 | 3,079,527 | |
Ascendis Pharma A/S sponsored ADR (a) | 145,496 | 17,698,133 | |
Avidity Biosciences, Inc. (a) | 36,700 | 609,954 | |
Biohaven Pharmaceutical Holding Co. Ltd. (a) | 8,400 | 1,116,108 | |
Cerevel Therapeutics Holdings (a) | 74,700 | 1,945,188 | |
Cibus Corp.: | |||
Series C (a)(d)(e)(f) | 726,554 | 1,169,752 | |
Series D (a)(d)(e)(f) | 398,640 | 641,810 | |
Series E (a)(d)(e)(f) | 251,468 | 404,863 | |
CytomX Therapeutics, Inc. (a)(c) | 137,854 | 634,128 | |
Day One Biopharmaceuticals, Inc. (a)(b) | 74,900 | 1,104,775 | |
Erasca, Inc. | 37,200 | 440,820 | |
Generation Bio Co. (a) | 163,122 | 1,060,293 | |
Horizon Therapeutics PLC (a) | 154,499 | 14,419,392 | |
Instil Bio, Inc. (a) | 68,800 | 798,768 | |
Karuna Therapeutics, Inc. (a) | 40,000 | 4,442,400 | |
Recursion Pharmaceuticals, Inc. (a)(b) | 58,800 | 696,192 | |
Regeneron Pharmaceuticals, Inc. (a) | 7,300 | 4,442,707 | |
Relay Therapeutics, Inc. (a) | 40,500 | 896,265 | |
Revolution Medicines, Inc. (a) | 74,000 | 1,592,480 | |
Turning Point Therapeutics, Inc. (a) | 50,549 | 1,881,939 | |
Twist Bioscience Corp. (a) | 4,900 | 291,158 | |
Verve Therapeutics, Inc. | 59,000 | 1,700,380 | |
Xencor, Inc. (a) | 84,618 | 2,908,321 | |
80,491,082 | |||
Health Care Equipment & Supplies - 1.8% | |||
Axonics Modulation Technologies, Inc. (a) | 53,420 | 2,533,711 | |
Boston Scientific Corp. (a) | 55,100 | 2,363,790 | |
DexCom, Inc. (a) | 68,015 | 29,279,097 | |
Edwards Lifesciences Corp. (a) | 9,800 | 1,070,160 | |
Figs, Inc. Class A (a) | 66,600 | 1,497,168 | |
InMode Ltd. (a) | 10,800 | 520,884 | |
Insulet Corp. (a) | 94,198 | 23,361,104 | |
Intuitive Surgical, Inc. (a) | 101,938 | 28,968,741 | |
Outset Medical, Inc. (a) | 32,300 | 1,201,237 | |
Shockwave Medical, Inc. (a) | 102,233 | 14,820,718 | |
Tandem Diabetes Care, Inc. (a) | 60,417 | 7,135,852 | |
112,752,462 | |||
Health Care Providers & Services - 0.5% | |||
agilon health, Inc. (a) | 82,200 | 1,362,876 | |
Alignment Healthcare, Inc. (a) | 145,747 | 1,107,677 | |
Centene Corp. (a) | 19,000 | 1,477,440 | |
Guardant Health, Inc. (a) | 118,680 | 8,254,194 | |
LifeStance Health Group, Inc. | 264,200 | 2,015,846 | |
Surgery Partners, Inc. (a) | 54,700 | 2,334,049 | |
UnitedHealth Group, Inc. | 30,700 | 14,507,899 | |
31,059,981 | |||
Health Care Technology - 0.1% | |||
Certara, Inc. (a) | 50,700 | 1,355,211 | |
Doximity, Inc. (b) | 89,500 | 4,078,515 | |
GoodRx Holdings, Inc. (a) | 9,700 | 232,897 | |
Medlive Technology Co. Ltd. (c) | 242,000 | 392,916 | |
MultiPlan Corp. warrants (a)(d) | 24,206 | 9,840 | |
6,069,379 | |||
Life Sciences Tools & Services - 0.6% | |||
10X Genomics, Inc. (a) | 35,333 | 3,401,508 | |
23andMe Holding Co. Class B (c) | 447,533 | 2,089,979 | |
Avantor, Inc. (a) | 130,800 | 4,882,764 | |
Bio-Rad Laboratories, Inc. Class A (a) | 3,300 | 1,979,109 | |
Danaher Corp. | 66,200 | 18,919,298 | |
ICON PLC (a) | 10,400 | 2,763,488 | |
Maravai LifeSciences Holdings, Inc. (a) | 45,000 | 1,301,400 | |
Nanostring Technologies, Inc. (a) | 56,100 | 1,947,792 | |
Olink Holding AB ADR (a) | 77,300 | 1,250,714 | |
Pacific Biosciences of California, Inc. (a) | 27,800 | 310,804 | |
Seer, Inc. (a) | 19,900 | 313,027 | |
Thermo Fisher Scientific, Inc. | 5,400 | 3,139,020 | |
42,298,903 | |||
Pharmaceuticals - 1.4% | |||
Asymchem Laboratories Tianjin Co. Ltd. (H Shares) (c) | 12,500 | 438,581 | |
Chiasma, Inc. warrants 12/16/24 (a)(e) | 23,784 | 0 | |
Eli Lilly & Co. | 160,879 | 39,478,098 | |
GH Research PLC | 32,000 | 543,360 | |
Intra-Cellular Therapies, Inc. (a) | 85,900 | 4,079,391 | |
Longboard Pharmaceuticals, Inc. (a) | 16,031 | 67,330 | |
Zoetis, Inc. Class A | 211,379 | 42,231,410 | |
86,838,170 | |||
TOTAL HEALTH CARE | 359,509,977 | ||
INDUSTRIALS - 4.9% | |||
Aerospace & Defense - 0.4% | |||
Airbus Group NV (a) | 24,100 | 3,077,406 | |
Howmet Aerospace, Inc. | 114,100 | 3,547,369 | |
Space Exploration Technologies Corp.: | |||
Class A (a)(d)(e) | 22,703 | 12,713,680 | |
Class C (a)(d)(e) | 686 | 384,160 | |
The Boeing Co. (a) | 41,100 | 8,229,864 | |
27,952,479 | |||
Airlines - 0.1% | |||
Delta Air Lines, Inc. (a) | 21,800 | 865,242 | |
JetBlue Airways Corp. (a) | 59,900 | 876,337 | |
Ryanair Holdings PLC sponsored ADR (a) | 24,400 | 2,723,528 | |
4,465,107 | |||
Building Products - 0.0% | |||
The AZEK Co., Inc. (a) | 27,600 | 911,628 | |
Commercial Services & Supplies - 0.1% | |||
ACV Auctions, Inc. Class A (a) | 327,006 | 4,336,100 | |
Driven Brands Holdings, Inc. | 3,095 | 87,434 | |
Li-Cycle Holdings Corp. (a)(b) | 79,681 | 603,982 | |
5,027,516 | |||
Electrical Equipment - 0.3% | |||
Acuity Brands, Inc. | 79,100 | 15,150,023 | |
Array Technologies, Inc. (a) | 153,800 | 1,621,052 | |
ESS Tech, Inc. Class A (a) | 38,360 | 209,062 | |
Generac Holdings, Inc. (a) | 2,191 | 618,695 | |
Sunrun, Inc. (a)(b) | 70,095 | 1,817,563 | |
19,416,395 | |||
Industrial Conglomerates - 0.3% | |||
General Electric Co. | 180,850 | 17,086,708 | |
Machinery - 0.2% | |||
AutoStore Holdings Ltd. | 511,300 | 1,443,310 | |
Deere & Co. | 22,200 | 8,356,080 | |
9,799,390 | |||
Professional Services - 0.1% | |||
KBR, Inc. | 16,000 | 694,400 | |
Recruit Holdings Co. Ltd. | 41,200 | 2,036,459 | |
Sterling Check Corp. | 16,413 | 328,424 | |
YourPeople, Inc. (a)(e) | 761,041 | 7,610 | |
3,066,893 | |||
Road & Rail - 3.4% | |||
Avis Budget Group, Inc. (a) | 40,100 | 7,064,818 | |
Bird Global, Inc. | 354,412 | 1,125,967 | |
Bird Global, Inc.: | |||
rights 11/4/26 (a)(e) | 13,740 | 22,671 | |
rights 11/4/26 (a)(e) | 13,740 | 12,503 | |
rights 11/4/26 (a)(e) | 13,740 | 6,458 | |
Class A (a)(b) | 496,820 | 1,753,775 | |
Hertz Global Holdings, Inc. (b) | 232,500 | 4,477,950 | |
Lyft, Inc. (a) | 2,902,107 | 111,789,162 | |
Uber Technologies, Inc. (a) | 2,358,975 | 88,225,665 | |
214,478,969 | |||
Transportation Infrastructure - 0.0% | |||
Delhivery Private Ltd. (d)(e) | 294,700 | 2,320,625 | |
TOTAL INDUSTRIALS | 304,525,710 | ||
INFORMATION TECHNOLOGY - 36.2% | |||
Communications Equipment - 0.2% | |||
Arista Networks, Inc. (a) | 87,000 | 10,814,970 | |
IT Services - 4.4% | |||
Block, Inc. Class A (a)(b) | 142,500 | 17,426,325 | |
CI&T, Inc. Class A | 75,200 | 952,032 | |
Digitalocean Holdings, Inc. (a)(b) | 248,100 | 14,226,054 | |
Endava PLC ADR (a) | 32,524 | 3,955,569 | |
Flywire Corp. (a)(b) | 140,900 | 3,971,971 | |
MasterCard, Inc. Class A | 260,000 | 100,458,800 | |
MongoDB, Inc. Class A (a) | 28,480 | 11,537,533 | |
Okta, Inc. (a) | 60,900 | 12,051,501 | |
PayPal Holdings, Inc. (a) | 324,562 | 55,805,190 | |
Shift4 Payments, Inc. (a)(b) | 78,700 | 4,149,064 | |
Shopify, Inc. Class A (a) | 19,114 | 18,449,374 | |
TaskUs, Inc. | 90,200 | 2,886,400 | |
TDCX, Inc. ADR | 88,339 | 1,447,876 | |
Thoughtworks Holding, Inc. | 65,000 | 1,392,300 | |
Twilio, Inc. Class A (a) | 113,270 | 23,347,212 | |
Visa, Inc. Class A | 27,800 | 6,287,526 | |
278,344,727 | |||
Semiconductors & Semiconductor Equipment - 10.8% | |||
Advanced Micro Devices, Inc. (a) | 64,700 | 7,391,975 | |
Allegro MicroSystems LLC (a) | 27,100 | 769,098 | |
ASML Holding NV | 8,800 | 5,959,360 | |
Cirrus Logic, Inc. (a) | 99,800 | 8,926,112 | |
Enphase Energy, Inc. (a) | 1,000 | 140,470 | |
GlobalFoundries, Inc. | 284,660 | 14,045,124 | |
Lam Research Corp. | 6,100 | 3,598,512 | |
Marvell Technology, Inc. | 2,577,679 | 184,046,281 | |
Microchip Technology, Inc. | 6,200 | 480,376 | |
NVIDIA Corp. | 1,251,396 | 306,416,825 | |
NXP Semiconductors NV | 385,935 | 79,286,486 | |
onsemi (a) | 195,800 | 11,552,200 | |
Qualcomm, Inc. | 67,800 | 11,916,528 | |
Silergy Corp. | 10,000 | 1,352,714 | |
Synaptics, Inc. (a) | 33,400 | 7,025,690 | |
Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR | 73,000 | 8,951,990 | |
Teradyne, Inc. | 176,100 | 20,679,423 | |
Wolfspeed, Inc. (a) | 31,800 | 2,996,832 | |
Xilinx, Inc. | 30,300 | 5,864,565 | |
681,400,561 | |||
Software - 11.3% | |||
Adobe, Inc. (a) | 116,171 | 62,070,165 | |
Amplitude, Inc. (a) | 99,600 | 3,915,276 | |
AppLovin Corp. (a)(b) | 101,500 | 6,538,630 | |
Atlassian Corp. PLC (a) | 26,700 | 8,659,878 | |
Atom Tickets LLC (a)(d)(e)(f) | 344,068 | 3 | |
AvidXchange Holdings, Inc. | 76,800 | 795,648 | |
Braze, Inc. | 4,657 | 232,943 | |
Cadence Design Systems, Inc. (a) | 41,000 | 6,237,740 | |
Cipher Mining, Inc. (a) | 111,247 | 338,191 | |
Confluent, Inc. (b) | 54,500 | 3,563,755 | |
Coupa Software, Inc. (a) | 60,214 | 8,084,934 | |
Crowdstrike Holdings, Inc. (a)(b) | 46,000 | 8,309,440 | |
Datadog, Inc. Class A (a) | 22,900 | 3,345,919 | |
DoubleVerify Holdings, Inc. (a) | 324,631 | 8,979,293 | |
EngageSmart, Inc. (b) | 187,400 | 4,096,564 | |
Epic Games, Inc. (a)(d)(e) | 1,076 | 921,798 | |
Expensify, Inc. (b) | 78,100 | 2,284,425 | |
Freshworks, Inc. (b) | 63,300 | 1,376,775 | |
GitLab, Inc. (b) | 23,900 | 1,529,839 | |
HashiCorp, Inc. | 19,400 | 1,287,966 | |
HubSpot, Inc. (a) | 47,092 | 23,018,570 | |
Intuit, Inc. | 41,100 | 22,819,953 | |
Microsoft Corp. | 1,216,700 | 378,369,366 | |
Qualtrics International, Inc. | 124,900 | 3,655,823 | |
Riskified Ltd.: | |||
Class A (c) | 96,275 | 671,037 | |
Class B (a) | 192,550 | 1,342,074 | |
Salesforce.com, Inc. (a) | 396,170 | 92,161,027 | |
Samsara, Inc. (b) | 92,900 | 1,681,490 | |
SentinelOne, Inc. (b) | 35,000 | 1,566,250 | |
ServiceNow, Inc. (a) | 21,223 | 12,432,009 | |
Stripe, Inc. Class B (a)(d)(e) | 19,900 | 721,375 | |
Tanium, Inc. Class B (a)(d)(e) | 151,000 | 1,792,370 | |
The Trade Desk, Inc. (a) | 28,400 | 1,974,936 | |
UiPath, Inc. Class A (a)(b) | 91,300 | 3,335,189 | |
Volue A/S (a) | 321,684 | 1,917,455 | |
Workday, Inc. Class A (a) | 35,500 | 8,981,855 | |
Zoom Video Communications, Inc. Class A (a) | 140,300 | 21,645,484 | |
710,655,445 | |||
Technology Hardware, Storage & Peripherals - 9.5% | |||
Apple, Inc. | 3,411,036 | 596,180,872 | |
TOTAL INFORMATION TECHNOLOGY | 2,277,396,575 | ||
MATERIALS - 0.8% | |||
Chemicals - 0.5% | |||
CF Industries Holdings, Inc. | 55,300 | 3,808,511 | |
Corteva, Inc. | 29,100 | 1,399,128 | |
LG Chemical Ltd. | 4,180 | 2,240,427 | |
Nutrien Ltd. | 167,600 | 11,705,564 | |
Olin Corp. | 9,283 | 470,370 | |
The Mosaic Co. | 231,600 | 9,252,420 | |
28,876,420 | |||
Metals & Mining - 0.3% | |||
Freeport-McMoRan, Inc. | 524,800 | 19,533,056 | |
TOTAL MATERIALS | 48,409,476 | ||
REAL ESTATE - 0.1% | |||
Equity Real Estate Investment Trusts (REITs) - 0.1% | |||
Simon Property Group, Inc. | 43,300 | 6,373,760 | |
TOTAL COMMON STOCKS | |||
(Cost $2,665,200,681) | 5,748,396,340 | ||
Preferred Stocks - 2.2% | |||
Convertible Preferred Stocks - 2.1% | |||
COMMUNICATION SERVICES - 0.2% | |||
Diversified Telecommunication Services - 0.1% | |||
Starry, Inc.: | |||
Series C (a)(d) | 1,477,502 | 2,253,072 | |
Series D (a)(d) | 402,931 | 614,438 | |
2,867,510 | |||
Interactive Media & Services - 0.1% | |||
Reddit, Inc.: | |||
Series B (a)(d)(e) | 129,280 | 7,988,780 | |
Series E (d)(e) | 5,005 | 309,281 | |
8,298,061 | |||
TOTAL COMMUNICATION SERVICES | 11,165,571 | ||
CONSUMER DISCRETIONARY - 0.3% | |||
Automobiles - 0.0% | |||
Rad Power Bikes, Inc.: | |||
Series A (d)(e) | 14,368 | 137,700 | |
Series C (d)(e) | 56,537 | 541,839 | |
679,539 | |||
Hotels, Restaurants & Leisure - 0.1% | |||
MOD Super Fast Pizza Holdings LLC: | |||
Series 3 (a)(d)(e)(f) | 22,518 | 4,921,634 | |
Series 4 (a)(d)(e)(f) | 2,055 | 424,296 | |
Series 5 (a)(d)(e)(f) | 8,253 | 1,607,602 | |
6,953,532 | |||
Internet & Direct Marketing Retail - 0.2% | |||
GoBrands, Inc. Series G (d)(e) | 19,600 | 7,614,404 | |
Instacart, Inc.: | |||
Series H (a)(d)(e) | 31,105 | 2,915,161 | |
Series I (d)(e) | 13,960 | 1,308,331 | |
11,837,896 | |||
TOTAL CONSUMER DISCRETIONARY | 19,470,967 | ||
CONSUMER STAPLES - 0.5% | |||
Food & Staples Retailing - 0.0% | |||
Blink Health, Inc. Series C (a)(d)(e) | 27,197 | 1,038,381 | |
Food Products - 0.0% | |||
AgBiome LLC Series C (a)(d)(e) | 266,499 | 1,579,750 | |
Tobacco - 0.5% | |||
JUUL Labs, Inc.: | |||
Series C (a)(d)(e) | 660,029 | 28,592,456 | |
Series D (a)(d)(e) | 5,110 | 221,365 | |
28,813,821 | |||
TOTAL CONSUMER STAPLES | 31,431,952 | ||
HEALTH CARE - 0.0% | |||
Pharmaceuticals - 0.0% | |||
Castle Creek Pharmaceutical Holdings, Inc. Series B (a)(d)(e) | 1,069 | 399,785 | |
INDUSTRIALS - 0.6% | |||
Aerospace & Defense - 0.6% | |||
Space Exploration Technologies Corp.: | |||
Series G (a)(d)(e) | 42,650 | 23,884,000 | |
Series H (a)(d)(e) | 6,348 | 3,554,880 | |
Series N (a)(d)(e) | 12,799 | 7,167,440 | |
34,606,320 | |||
Construction & Engineering - 0.0% | |||
Beta Technologies, Inc. Series A (d)(e) | 12,033 | 881,658 | |
TOTAL INDUSTRIALS | 35,487,978 | ||
INFORMATION TECHNOLOGY - 0.5% | |||
Communications Equipment - 0.0% | |||
Xsight Labs Ltd. Series D (d)(e) | 140,500 | 1,402,190 | |
Electronic Equipment & Components - 0.0% | |||
Enevate Corp. Series E (d)(e) | 1,441,706 | 1,598,396 | |
IT Services - 0.1% | |||
AppNexus, Inc. Series E (Escrow) (a)(d)(e) | 307,049 | 9,617 | |
ByteDance Ltd. Series E1 (a)(d)(e) | 37,119 | 5,518,111 | |
5,527,728 | |||
Software - 0.4% | |||
Bolt Technology OU Series E (d)(e) | 18,160 | 4,692,426 | |
Databricks, Inc. Series G (d)(e) | 17,300 | 3,813,827 | |
Dataminr, Inc. Series D (a)(d)(e) | 115,901 | 3,952,224 | |
Delphix Corp. Series D (a)(d)(e) | 242,876 | 1,772,995 | |
Jet.Com, Inc. Series B1 (Escrow) (a)(d)(e) | 922,232 | 9 | |
Malwarebytes Corp. Series B (a)(d)(e) | 329,349 | 7,548,679 | |
Nuvia, Inc. Series B (a)(d) | 181,697 | 148,486 | |
Stripe, Inc. Series H (d)(e) | 8,700 | 315,375 | |
22,244,021 | |||
TOTAL INFORMATION TECHNOLOGY | 30,772,335 | ||
MATERIALS - 0.0% | |||
Metals & Mining - 0.0% | |||
Diamond Foundry, Inc. Series C (d)(e) | 125,000 | 3,436,250 | |
TOTAL CONVERTIBLE PREFERRED STOCKS | 132,164,838 | ||
Nonconvertible Preferred Stocks - 0.1% | |||
CONSUMER DISCRETIONARY - 0.0% | |||
Automobiles - 0.0% | |||
Neutron Holdings, Inc. Series 1C (a)(d)(e) | 12,405,800 | 868,406 | |
Waymo LLC Series A2 (a)(d)(e) | 15,200 | 1,394,174 | |
2,262,580 | |||
HEALTH CARE - 0.1% | |||
Pharmaceuticals - 0.1% | |||
Castle Creek Pharmaceutical Holdings, Inc. Series A4 (a)(d)(e) | 9,636 | 3,603,671 | |
TOTAL NONCONVERTIBLE PREFERRED STOCKS | 5,866,251 | ||
TOTAL PREFERRED STOCKS | |||
(Cost $61,067,709) | 138,031,089 | ||
Principal Amount | Value | ||
Convertible Bonds - 0.0% | |||
CONSUMER DISCRETIONARY - 0.0% | |||
Automobiles - 0.0% | |||
Neutron Holdings, Inc.: | |||
4% 5/22/27 (d)(e) | 433,800 | 433,800 | |
4% 6/12/27 (d)(e) | 115,200 | 115,200 | |
549,000 | |||
HEALTH CARE - 0.0% | |||
Pharmaceuticals - 0.0% | |||
Castle Creek Pharmaceutical Holdings, Inc. 0.13% (d)(e)(g) | 110,200 | 110,200 | |
TOTAL CONVERTIBLE BONDS | |||
(Cost $659,200) | 659,200 | ||
Preferred Securities - 0.0% | |||
INFORMATION TECHNOLOGY - 0.0% | |||
Electronic Equipment & Components - 0.0% | |||
Enevate Corp. 0% 1/29/23 (Cost $613,815)(d)(e) | 613,815 | 613,815 | |
Shares | Value | ||
Money Market Funds - 1.9% | |||
Fidelity Cash Central Fund 0.08% (h) | 53,258,083 | 53,268,734 | |
Fidelity Securities Lending Cash Central Fund 0.08% (h)(i) | 66,333,706 | 66,340,339 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $119,609,073) | 119,609,073 | ||
Equity Funds - 3.7% | |||
Domestic Equity Funds - 3.7% | |||
iShares Russell 1000 Growth Index ETF | |||
(Cost $231,814,631) | 833,000 | 232,456,980 | |
TOTAL INVESTMENT IN SECURITIES - 99.3% | |||
(Cost $3,078,965,109) | 6,239,766,497 | ||
NET OTHER ASSETS (LIABILITIES) - 0.7% | 46,205,886 | ||
NET ASSETS - 100% | $6,285,972,383 |
Security Type Abbreviations
ETF – Exchange-Traded Fund
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 $22,450,318 or 0.4% of net assets.
(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 $207,862,171 or 3.3% of net assets.
(e) Level 3 security
(f) Investment is owned by a wholly-owned subsidiary (Subsidiary) that is treated as a corporation for U.S. tax purposes.
(g) Security is perpetual in nature with no stated maturity date.
(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 |
AgBiome LLC Series C | 6/29/18 | $1,687,925 |
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 |
BARK, Inc. | 12/17/20 | $2,406,170 |
Beta Technologies, Inc. Series A | 4/9/21 | $881,658 |
Blink Health, Inc. Series A1 | 12/30/20 | $170,206 |
Blink Health, Inc. Series C | 11/7/19 - 1/21/21 | $1,038,273 |
Bolt Technology OU Series E | 1/3/22 | $4,717,904 |
ByteDance Ltd. Series E1 | 11/18/20 | $4,067,284 |
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 |
Castle Creek Pharmaceutical Holdings, Inc. 0.13% | 6/28/21 | $110,200 |
Cibus Corp. Series C | 2/16/18 | $1,525,763 |
Cibus Corp. Series D | 5/10/19 | $498,300 |
Cibus Corp. Series E | 6/23/21 | $442,584 |
Databricks, Inc. Series G | 2/1/21 | $3,068,465 |
Dataminr, Inc. Series D | 3/6/15 | $1,477,738 |
Delhivery Private Ltd. | 5/20/21 | $1,438,501 |
Delphix Corp. Series D | 7/10/15 | $2,185,884 |
Diamond Foundry, Inc. Series C | 3/15/21 | $3,000,000 |
Endeavor Group Holdings, Inc. Class A | 3/29/21 | $2,220,864 |
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. Class A | 8/13/20 | $2,754,038 |
FSN E-Commerce Ventures Private Ltd. | 10/7/20 - 10/26/20 | $2,246,418 |
GoBrands, Inc. Series G | 3/2/21 | $4,894,459 |
Instacart, Inc. Series H | 11/13/20 | $1,866,300 |
Instacart, Inc. Series I | 2/26/21 | $1,745,000 |
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 |
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 |
MultiPlan Corp. warrants | 10/8/20 | $0 |
Neutron Holdings, Inc. | 2/4/21 | $6,918 |
Neutron Holdings, Inc. Series 1C | 7/3/18 | $2,268,276 |
Neutron Holdings, Inc. 4% 5/22/27 | 6/4/20 | $433,800 |
Neutron Holdings, Inc. 4% 6/12/27 | 6/12/20 | $115,200 |
Nuvia, Inc. Series B | 3/16/21 | $148,486 |
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 |
Reddit, Inc. Series E | 5/18/21 | $212,583 |
Sonder Holdings, Inc. | 4/29/21 | $698,330 |
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 |
Stripe, Inc. Class B | 5/18/21 | $798,555 |
Stripe, Inc. Series H | 3/15/21 | $349,088 |
Tanium, Inc. Class B | 4/21/17 | $749,609 |
Tory Burch LLC | 5/14/15 | $7,600,030 |
Waymo LLC Series A2 | 5/8/20 | $1,305,181 |
WeWork, Inc. | 3/25/21 | $4,416,350 |
Xsight Labs Ltd. Series D | 2/16/21 | $1,123,438 |
Zomato Ltd. | 12/9/20 - 2/10/21 | $2,199,578 |
Affiliated Central Funds
Fiscal year to date information regarding the Fund's investments in Fidelity Central Funds, including the ownership percentage, is presented below.
Fund | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Realized Gain/Loss | Change in Unrealized appreciation (depreciation) | Value, end of period | % ownership, end of period |
Fidelity Cash Central Fund 0.08% | $52,071,809 | $768,745,655 | $767,548,730 | $11,239 | $-- | $-- | $53,268,734 | 0.1% |
Fidelity Securities Lending Cash Central Fund 0.08% | 80,352,964 | 486,219,483 | 500,232,108 | 322,274 | -- | -- | 66,340,339 | 0.2% |
Total | $132,424,773 | $1,254,965,138 | $1,267,780,838 | $333,513 | $-- | $-- | $119,609,073 |
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, 2022, 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 | $812,394,426 | $797,832,559 | $6,263,806 | $8,298,061 |
Consumer Discretionary | 1,736,964,816 | 1,597,759,678 | 99,663,680 | 39,541,458 |
Consumer Staples | 62,197,298 | 30,419,327 | -- | 31,777,971 |
Energy | 134,709,613 | 93,759,603 | 40,950,010 | -- |
Financials | 70,245,759 | 63,886,454 | 3,567,275 | 2,792,030 |
Health Care | 363,513,433 | 356,452,215 | 841,337 | 6,219,881 |
Industrials | 340,013,688 | 281,374,861 | 7,683,142 | 50,955,685 |
Information Technology | 2,308,168,910 | 2,270,839,346 | 3,270,169 | 34,059,395 |
Materials | 51,845,726 | 46,169,049 | 2,240,427 | 3,436,250 |
Real Estate | 6,373,760 | 6,373,760 | -- | -- |
Corporate Bonds | 659,200 | -- | -- | 659,200 |
Preferred Securities | 613,815 | -- | -- | 613,815 |
Money Market Funds | 119,609,073 | 119,609,073 | -- | -- |
Equity Funds | 232,456,980 | 232,456,980 | -- | -- |
Total Investments in Securities: | $6,239,766,497 | $5,896,932,905 | $164,479,846 | $178,353,746 |
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 | $65,667,117 |
Net Realized Gain (Loss) on Investment Securities | -- |
Net Unrealized Gain (Loss) on Investment Securities | (1,981,710) |
Cost of Purchases | 14,610 |
Proceeds of Sales | -- |
Amortization/Accretion | -- |
Transfers into Level 3 | -- |
Transfers out of Level 3 | (24,158,559) |
Ending Balance | $39,541,458 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2022 | $(1,981,710) |
Other Investments in Securities | |
Beginning Balance | $135,750,681 |
Net Realized Gain (Loss) on Investment Securities | -- |
Net Unrealized Gain (Loss) on Investment Securities | 11,583,129 |
Cost of Purchases | 4,867,575 |
Proceeds of Sales | -- |
Amortization/Accretion | -- |
Transfers into Level 3 | 12,860 |
Transfers out of Level 3 | (13,401,957) |
Ending Balance | $138,812,288 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2022 | $11,583,129 |
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.
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
January 31, 2022 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $68,687,189) — See accompanying schedule: Unaffiliated issuers (cost $2,959,356,036) | $6,120,157,424 | |
Fidelity Central Funds (cost $119,609,073) | 119,609,073 | |
Total Investment in Securities (cost $3,078,965,109) | $6,239,766,497 | |
Restricted cash | 822,425 | |
Foreign currency held at value (cost $1,915) | 1,917 | |
Receivable for investments sold | 16,947,813 | |
Receivable for fund shares sold | 358,952,173 | |
Dividends receivable | 886,681 | |
Interest receivable | 36,544 | |
Distributions receivable from Fidelity Central Funds | 71,328 | |
Other receivables | 4,023 | |
Total assets | 6,617,489,401 | |
Liabilities | ||
Payable to custodian bank | $142,496 | |
Payable for investments purchased | 260,923,665 | |
Payable for fund shares redeemed | 49,691 | |
Other payables and accrued expenses | 4,072,266 | |
Collateral on securities loaned | 66,328,900 | |
Total liabilities | 331,517,018 | |
Net Assets | $6,285,972,383 | |
Net Assets consist of: | ||
Paid in capital | $3,000,387,763 | |
Total accumulated earnings (loss) | 3,285,584,620 | |
Net Assets | $6,285,972,383 | |
Net Asset Value, offering price and redemption price per share ($6,285,972,383 ÷ 430,585,842 shares) | $14.60 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended January 31, 2022 (Unaudited) | ||
Investment Income | ||
Dividends | $10,866,469 | |
Interest | 11,156 | |
Income from Fidelity Central Funds (including $322,274 from security lending) | 333,513 | |
Total income | 11,211,138 | |
Expenses | ||
Custodian fees and expenses | $89,632 | |
Independent trustees' fees and expenses | 11,139 | |
Interest | 5,680 | |
Total expenses | 106,451 | |
Net investment income (loss) | 11,104,687 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers (net of foreign taxes of $30) | 355,449,407 | |
Foreign currency transactions | 32,565 | |
Futures contracts | (1,662,004) | |
Total net realized gain (loss) | 353,819,968 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers (net of increase in deferred foreign taxes of $1,849,632) | (665,824,769) | |
Unfunded commitments | 1,748,337 | |
Assets and liabilities in foreign currencies | (1,044) | |
Total change in net unrealized appreciation (depreciation) | (664,077,476) | |
Net gain (loss) | (310,257,508) | |
Net increase (decrease) in net assets resulting from operations | $(299,152,821) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended January 31, 2022 (Unaudited) | Year ended July 31, 2021 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $11,104,687 | $18,831,626 |
Net realized gain (loss) | 353,819,968 | 1,843,296,270 |
Change in net unrealized appreciation (depreciation) | (664,077,476) | 445,634,791 |
Net increase (decrease) in net assets resulting from operations | (299,152,821) | 2,307,762,687 |
Distributions to shareholders | (1,312,935,433) | (1,909,413,522) |
Share transactions | ||
Proceeds from sales of shares | 1,199,678,081 | 1,010,876,682 |
Reinvestment of distributions | 1,312,935,433 | 1,909,413,522 |
Cost of shares redeemed | (894,428,007) | (2,828,198,616) |
Net increase (decrease) in net assets resulting from share transactions | 1,618,185,507 | 92,091,588 |
Total increase (decrease) in net assets | 6,097,253 | 490,440,753 |
Net Assets | ||
Beginning of period | 6,279,875,130 | 5,789,434,377 |
End of period | $6,285,972,383 | $6,279,875,130 |
Other Information | ||
Shares | ||
Sold | 77,706,264 | 56,402,633 |
Issued in reinvestment of distributions | 78,714,050 | 119,502,616 |
Redeemed | (50,570,002) | (151,964,287) |
Net increase (decrease) | 105,850,312 | 23,940,962 |
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, | |||||
2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $19.34 | $19.25 | $15.57 | $15.90 | $14.07 | $11.47 |
Income from Investment Operations | ||||||
Net investment income (loss)A,B | .03 | .06 | .09 | .10 | .12C | .03 |
Net realized and unrealized gain (loss) | (.71) | 6.76 | 5.30 | 1.58 | 3.28 | 2.74 |
Total from investment operations | (.68) | 6.82 | 5.39 | 1.68 | 3.40 | 2.77 |
Distributions from net investment income | (.05) | (.10) | (.11) | (.12) | (.07) | (.03) |
Distributions from net realized gain | (4.00) | (6.63) | (1.60) | (1.89) | (1.50) | (.14) |
Total distributions | (4.06)D | (6.73) | (1.71) | (2.01) | (1.57) | (.17) |
Net asset value, end of period | $14.60 | $19.34 | $19.25 | $15.57 | $15.90 | $14.07 |
Total ReturnE,F | (5.56)% | 46.98% | 39.00% | 11.85% | 26.54% | 24.50% |
Ratios to Average Net AssetsB,G,H | ||||||
Expenses before reductions | - %I,J | - %J | - %J | - %J | - %J | .59% |
Expenses net of fee waivers, if any | - %I,J | - %J | - %J | - %J | - %J | .59% |
Expenses net of all reductions | - %I,J | - %J | - %J | - %J | - %J | .59% |
Net investment income (loss) | .35%I | .31% | .59% | .71% | .81%C | .26% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $6,285,972 | $6,279,875 | $5,789,434 | $5,846,965 | $6,005,980 | $2,208,451 |
Portfolio turnover rateK | 54%I | 53% | 52%L | 53% | 41% | 47% |
A Calculated based on average shares outstanding during the period.
B Net investment income (loss) is affected by the timing of the declaration of dividends by any underlying mutual funds or exchange-traded funds (ETFs). Net investment income (loss) of any such underlying funds is not included in the Fund's net investment income (loss) ratio.
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 .71%.
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 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.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended January 31, 2022
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.
Funds may invest 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 Schedule of Investments lists any Fidelity Central Funds held as an investment as of period end, but does not include the underlying holdings of each Fidelity Central Fund. An investing fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
Based on its investment objective, each Fidelity Central Fund may invest or participate in various investment vehicles or strategies that are similar to those of the investing fund. These strategies are consistent with the investment objectives of the investing fund and may involve certain economic risks which may cause a decline in value of each of the Fidelity Central Funds and thus a decline in the value of the investing fund.
Fidelity Central Fund | Investment Manager | Investment Objective | Investment Practices | Expense Ratio(a) |
Fidelity Money Market Central Funds | Fidelity Management & Research Company LLC (FMR) | Each fund seeks to obtain a high level of current income consistent with the preservation of capital and liquidity. | Short-term Investments | Less than .005% |
(a) Expenses expressed as a percentage of average net assets and are as of each underlying Central Fund's most recent annual or semi-annual shareholder report.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds which contain the significant accounting policies (including investment valuation policies) of those funds, and are not covered by the Report of Independent Registered Public Accounting Firm, are available on the Securities and Exchange Commission 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 Fund's Schedule of Investments lists any underlying mutual funds or exchange-traded funds (ETFs) but does not include the underlying holdings of these funds. 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 – Unadjusted 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, 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. ETFs are valued at their last sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day but the exchange reports a closing bid level, ETFs are valued at the closing bid and would be categorized as Level 1 in the hierarchy. In the event there was no closing bid, ETFs may be valued by another method that the Board believes reflects fair value in accordance with the Board's fair value pricing policies and may be categorized as Level 2 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
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 | $ 177,080,731 | Market comparable | Discount rate | 40.0% - 75.0% / 40.3% | Decrease |
Enterprise value/EBITDA multiple (EV/EBITDA) | 9.7 – 21.2 / 16.2 | Increase | |||
Enterprise value/Sales multiple (EV/S) | 3.0 – 21.0 / 7.3 | Increase | |||
Price/Earnings multiple (P/E) | 7.1 | Increase | |||
Enterprise value/Gross profit (EV/GP) | 12.5 | Increase | |||
Discount for lack of marketability | 10.0% - 15.0% / 12.7% | Decrease | |||
Premium rate | 25.0% - 34.0% / 29.9% | Increase | |||
Liquidity preference | $194.79 - $218.56 / $206.61 | Increase | |||
Recovery value | Recovery value | 0.0% - 0.03% / 0.03% | Increase | ||
Market approach | Transaction price | $1.10 - $560.00 / $352.30 | Increase | ||
Discount rate | 9.2% | Decrease | |||
Discount for lack of marketability | 10.0% | Decrease | |||
Premium rate | 24.8% | Increase | |||
Discounted cash flow | Weighted average cost of capital (WACC) | 45.0% | Decrease | ||
Growth rate | 5.0% | Increase | |||
Recovery value | Recovery value | 0.5% - 1.7% / 1.2% | Increase | ||
Discount for lack of marketability | 5.0% | Decrease | |||
Corporate Bonds | $ 659,200 | 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, 2022, 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. Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of a fund include an amount in addition to trade execution, which may be rebated back to a fund. Any such rebates are included in net realized gain (loss) on investments in the Statement of Operations. 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. Funds may file withholding tax reclaims in certain jurisdictions to recover a portion of amounts previously withheld. Any withholding tax reclaims income is included in the Statement of Operations in dividends. Any receivables for withholding tax reclaims are included in the Statement of Assets and Liabilities in dividends receivable.
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. Expenses included in the accompanying financial statements reflect the expenses of that fund and do not include any expenses associated with any underlying mutual funds or exchange-traded funds. Although not included in a fund's expenses, a fund indirectly bears its proportionate share of these expenses through the net asset value of each underlying mutual fund or exchange-traded fund. 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, certain foreign taxes, passive foreign investment companies (PFIC), defaulted bonds, 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 | $3,359,119,653 |
Gross unrealized depreciation | (214,140,755) |
Net unrealized appreciation (depreciation) | $3,144,978,898 |
Tax cost | $3,094,787,599 |
Restricted Securities (including Private Placements). Funds 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 held at period end is included at the end of the Schedule of Investments, if applicable.
Special Purpose Acquisition Companies. Funds may invest in stock, warrants, and other securities of special purpose acquisition companies (SPACs) or similar special purpose entities. A SPAC is a publicly traded company that raises investment capital via an initial public offering (IPO) for the purpose of acquiring the equity securities of one or more existing companies via merger, business combination, acquisition or other similar transactions within a designated time frame.
Private Investment in Public Equity. Funds may acquire equity securities of an issuer through a private investment in a public equity (PIPE) transaction, including through commitments to purchase securities on a when-issued basis. A PIPE typically involves the purchase of securities directly from a publicly traded company in a private placement transaction. Securities purchased through PIPE transactions will be restricted from trading and considered illiquid until a resale registration statement for the shares is filed and declared effective.
At the current and/or prior period end, the Fund had commitments to purchase when-issued securities through PIPE transactions with SPACs. The commitments are contingent upon the SPACs acquiring the securities of target companies. Unrealized appreciation (depreciation) on any commitments outstanding at period end is separately presented in the Statements of Assets and Liabilities as Unrealized appreciation (depreciation) on unfunded commitments, and any change in unrealized appreciation (depreciation) on unfunded commitments during the period is separately presented in the Statement of Operations, as applicable.
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 | 15,889,752 | .25 |
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. 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. Counterparty credit risk related to centrally cleared OTC swaps may be mitigated by the protection provided by the clearinghouse.
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.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and in-kind transactions, as applicable, are noted in the table below.
Purchases ($) | Sales ($) | |
Fidelity Series Blue Chip Growth Fund | 1,845,357,637 | 1,682,933,300 |
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 | $32,460 |
Interfund Lending Program. Pursuant to an Exemptive Order issued by the Securities and Exchange Commission (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 | $44,041,400 | .31% | $5,680 |
Interfund Trades. Funds may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Any interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note. Interfund trades during the period are noted in the table below.
Purchases ($) | Sales ($) | Realized Gain (Loss) ($) | |
Fidelity Series Blue Chip Growth Fund | 191,576,986 | 118,067,836 | 21,366,840 |
Other. During the period, the investment adviser reimbursed the Fund for certain losses as follows:
Amount ($) | |
Fidelity Series Blue Chip Growth Fund | 12,972 |
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 commitment fees on the pro-rata portion of the line of credit are borne by the investment adviser. 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 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 | $33,967 | $7,639 | $– |
9. Other.
A 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, a fund may also enter into contracts that provide general indemnifications. A fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against a 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.
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, 2021 to January 31, 2022).
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, 2021 | Ending Account Value January 31, 2022 | Expenses Paid During Period-B August 1, 2021 to January 31, 2022 | |
Fidelity Series Blue Chip Growth Fund | - %-C | |||
Actual | $1,000.00 | $944.40 | $--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
XS1-SANN-0422
1.967988.108
Fidelity® Series Real Estate Income Fund
Semi-Annual Report
January 31, 2022
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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. © 2022 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 COVID-19 emerged as a public health emergency that had a major influence on financial markets, primarily based on its impact on the global economy and corporate earnings. On March 11, 2020, the World Health Organization declared the COVID-19 outbreak a pandemic, citing sustained risk of further global spread. The pandemic prompted a number of measures to limit the spread of COVID-19, 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. To help stem the turmoil, the U.S. government took unprecedented action – in concert with the U.S. Federal Reserve and central banks around the world – to help support consumers, businesses, and the broader economy, and to limit disruption to the financial system.
In general, the overall impact of the pandemic lessened in 2021, amid a resilient economy and widespread distribution of three COVID-19 vaccines granted emergency use authorization from the U.S. Food and Drug Administration (FDA) early in the year. Still, the situation remains dynamic, and the extent and duration of its influence on financial markets and the economy is highly uncertain, due in part to a recent spike in cases based on highly contagious variants of the coronavirus.
Extreme events such as the COVID-19 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 continue to take extra steps to be responsive to customer needs. We encourage you to visit us online, where we offer ongoing updates, commentary, and analysis on the markets and our funds.
Investment Summary (Unaudited)
Top Five Stocks as of January 31, 2022
% of fund's net assets | |
Equity Lifestyle Properties, Inc. | 1.5 |
Annaly Capital Management, Inc. Series F, 6.95% | 1.3 |
Two Harbors Investment Corp. Series B, 7.625% | 1.3 |
Chimera Investment Corp. Series B, 8.00% | 1.2 |
American Tower Corp. | 1.2 |
6.5 |
Top 5 Bonds as of January 31, 2022
% of fund's net assets | |
Redwood Trust, Inc. 5.625% 7/15/24 | 1.2 |
RWT Holdings, Inc. 5.75% 10/1/25 | 1.2 |
Mhp 2022-Mhil Mezz U.S. Secured Overnight Fin. Rate (SOFR) Indx + 5.000% 5.053% 1/9/24 | 0.8 |
iStar Financial, Inc. 4.75% 10/1/24 | 0.7 |
Sabra Health Care LP 5.125% 8/15/26 | 0.7 |
4.6 |
Top Five REIT Sectors as of January 31, 2022
% of fund's net assets | |
REITs - Mortgage | 27.3 |
REITs - Diversified | 13.4 |
REITs - Health Care | 4.6 |
REITs - Management/Investment | 4.6 |
REITs - Hotels | 2.9 |
Asset Allocation (% of fund's net assets)
As of January 31, 2022* | ||
Stocks | 45.6% | |
Bonds | 39.9% | |
Convertible Securities | 8.0% | |
Other Investments | 4.6% | |
Short-Term Investments and Net Other Assets (Liabilities) | 1.9% |
* Foreign investments - 1.5%
Schedule of Investments January 31, 2022 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 13.1% | |||
Shares | Value | ||
FINANCIALS - 1.3% | |||
Mortgage Real Estate Investment Trusts - 1.3% | |||
BrightSpire Capital, Inc. | 25,140 | $236,065 | |
Chimera Investment Corp. | 54,700 | 793,150 | |
Great Ajax Corp. | 281,246 | 3,667,448 | |
MFA Financial, Inc. | 1,458,700 | 6,753,781 | |
New Residential Investment Corp. | 119,400 | 1,271,610 | |
12,722,054 | |||
INFORMATION TECHNOLOGY - 0.1% | |||
IT Services - 0.1% | |||
Cyxtera Technologies, Inc. Class A (a) | 45,200 | 541,044 | |
REAL ESTATE - 11.7% | |||
Equity Real Estate Investment Trusts (REITs) - 11.7% | |||
Acadia Realty Trust (SBI) | 31,100 | 615,469 | |
American Homes 4 Rent Class A | 58,900 | 2,304,757 | |
American Tower Corp. | 47,000 | 11,820,500 | |
Apartment Income (REIT) Corp. | 18,224 | 962,592 | |
AvalonBay Communities, Inc. | 10,300 | 2,515,569 | |
Crown Castle International Corp. | 37,100 | 6,771,121 | |
CubeSmart | 22,500 | 1,141,650 | |
Digital Realty Trust, Inc. | 4,000 | 596,920 | |
Digitalbridge Group, Inc. (a) | 34,699 | 253,303 | |
Douglas Emmett, Inc. | 34,300 | 1,070,846 | |
Easterly Government Properties, Inc. | 92,100 | 1,931,337 | |
Equinix, Inc. | 7,000 | 5,074,300 | |
Equity Lifestyle Properties, Inc. | 193,200 | 15,125,599 | |
Essex Property Trust, Inc. | 9,300 | 3,092,250 | |
Extra Space Storage, Inc. | 6,400 | 1,268,416 | |
Farmland Partners, Inc. | 178,015 | 2,027,591 | |
Gaming & Leisure Properties | 81,904 | 3,700,423 | |
Healthcare Trust of America, Inc. | 5,950 | 193,673 | |
Invitation Homes, Inc. | 22,200 | 931,956 | |
iStar Financial, Inc. | 350,887 | 7,533,544 | |
Lamar Advertising Co. Class A | 18,500 | 2,049,060 | |
Life Storage, Inc. | 800 | 107,960 | |
LXP Industrial Trust (REIT) | 603,422 | 8,984,954 | |
Mid-America Apartment Communities, Inc. | 17,314 | 3,578,458 | |
Monmouth Real Estate Investment Corp. Class A | 183,495 | 3,851,560 | |
National Retail Properties, Inc. | 17,400 | 772,212 | |
NexPoint Residential Trust, Inc. | 2,200 | 174,460 | |
Postal Realty Trust, Inc. | 56,400 | 1,008,432 | |
Public Storage | 6,300 | 2,258,739 | |
Retail Value, Inc. | 24,066 | 75,808 | |
Sabra Health Care REIT, Inc. | 142,800 | 1,943,508 | |
SITE Centers Corp. | 146,700 | 2,172,627 | |
Spirit Realty Capital, Inc. | 56,000 | 2,657,760 | |
Terreno Realty Corp. | 28,480 | 2,129,450 | |
UMH Properties, Inc. | 33,500 | 790,600 | |
Ventas, Inc. | 92,955 | 4,928,474 | |
VICI Properties, Inc. | 75,400 | 2,157,948 | |
Washington REIT (SBI) | 76,300 | 1,878,506 | |
Welltower, Inc. | 42,800 | 3,707,764 | |
Weyerhaeuser Co. | 13,700 | 553,891 | |
114,713,987 | |||
Real Estate Management & Development - 0.0% | |||
Cushman & Wakefield PLC (a) | 900 | 18,891 | |
TOTAL REAL ESTATE | 114,732,878 | ||
TOTAL COMMON STOCKS | |||
(Cost $86,755,156) | 127,995,976 | ||
Preferred Stocks - 34.1% | |||
Convertible Preferred Stocks - 1.6% | |||
FINANCIALS - 1.0% | |||
Mortgage Real Estate Investment Trusts - 1.0% | |||
Great Ajax Corp. 7.25% | 310,550 | 7,946,975 | |
Ready Capital Corp. 7.00% | 73,475 | 1,928,719 | |
9,875,694 | |||
REAL ESTATE - 0.6% | |||
Equity Real Estate Investment Trusts (REITs) - 0.6% | |||
Braemar Hotels & Resorts, Inc. 5.50% | 18,883 | 365,386 | |
LXP Industrial Trust (REIT) Series C, 6.50% | 71,519 | 4,031,874 | |
RLJ Lodging Trust Series A, 1.95% | 38,950 | 1,086,705 | |
Wheeler REIT, Inc. 8.75% (a) | 1,972 | 25,439 | |
5,509,404 | |||
TOTAL CONVERTIBLE PREFERRED STOCKS | 15,385,098 | ||
Nonconvertible Preferred Stocks - 32.5% | |||
ENERGY - 0.8% | |||
Oil, Gas & Consumable Fuels - 0.8% | |||
DCP Midstream Partners LP: | |||
7.95% (b) | 36,975 | 911,804 | |
Series B, 7.875% (b) | 34,150 | 835,992 | |
Enbridge, Inc.: | |||
Series 1, 5 year U.S. Treasury Index + 3.140% 5.949% (b)(c) | 99,425 | 2,382,223 | |
Series L, 5 year U.S. Treasury Index + 3.150% 4.959% (b)(c) | 19,600 | 446,684 | |
Energy Transfer LP 7.60% (b) | 100,525 | 2,503,073 | |
Global Partners LP: | |||
9.75% (b) | 1,825 | 47,815 | |
Series B, 9.50% | 12,200 | 322,768 | |
7,450,359 | |||
FINANCIALS - 20.9% | |||
Mortgage Real Estate Investment Trusts - 20.9% | |||
Acres Commercial Realty Corp. 8.625% (b) | 16,193 | 406,444 | |
AG Mortgage Investment Trust, Inc.: | |||
8.00% | 131,577 | 3,197,321 | |
8.25% | 1,725 | 43,142 | |
Series C, 8.00% (b) | 103,493 | 2,527,578 | |
AGNC Investment Corp.: | |||
6.125% (b) | 144,800 | 3,551,944 | |
6.875% (b) | 130,650 | 3,253,185 | |
Series C, 7.00% (b) | 319,899 | 8,039,062 | |
Series E, 6.50% (b) | 380,250 | 9,536,670 | |
Annaly Capital Management, Inc.: | |||
6.75% (b) | 163,400 | 4,174,870 | |
Series F, 6.95% (b) | 515,600 | 12,817,816 | |
Series G, 6.50% (b) | 235,110 | 5,835,430 | |
Arbor Realty Trust, Inc.: | |||
Series D, 6.375% | 13,800 | 341,964 | |
Series F, 6.25% (a)(b) | 20,000 | 486,000 | |
Arlington Asset Investment Corp. 8.25% (b) | 22,175 | 549,940 | |
Armour Residential REIT, Inc. Series C 7.00% | 16,500 | 416,130 | |
Cherry Hill Mortgage Investment Corp.: | |||
8.25% (b) | 56,575 | 1,428,519 | |
Series A, 8.20% | 64,250 | 1,640,090 | |
Chimera Investment Corp.: | |||
8.00% (b) | 230,700 | 5,779,035 | |
Series A, 8.00% | 38,500 | 974,050 | |
Series B, 8.00% (b) | 472,958 | 11,975,297 | |
Series C, 7.75% (b) | 333,766 | 8,337,475 | |
Dynex Capital, Inc. Series C 6.90% (b) | 173,400 | 4,376,616 | |
Ellington Financial LLC 6.75% (b) | 153,222 | 3,845,872 | |
Franklin BSP Realty Trust, Inc. 7.50% | 132,416 | 3,307,752 | |
Invesco Mortgage Capital, Inc.: | |||
7.50% (b) | 485,181 | 11,683,158 | |
Series B, 7.75% (b) | 301,379 | 7,320,496 | |
KKR Real Estate Finance Trust, Inc. 6.50% | 38,700 | 978,336 | |
MFA Financial, Inc.: | |||
6.50% (b) | 415,300 | 9,589,277 | |
Series B, 7.50% | 195,649 | 4,918,616 | |
New Residential Investment Corp.: | |||
7.125% (b) | 427,786 | 10,506,424 | |
Series A, 7.50% (b) | 415,696 | 10,442,284 | |
Series C, 6.375% (b) | 129,446 | 2,912,535 | |
Series D, 7.00% (b) | 82,900 | 2,065,868 | |
New York Mortgage Trust, Inc. Series D, 8.00% (b) | 68,736 | 1,723,899 | |
PennyMac Mortgage Investment Trust: | |||
6.75% | 38,700 | 965,952 | |
8.125% (b) | 106,075 | 2,785,530 | |
Series B, 8.00% (b) | 276,005 | 7,178,890 | |
Ready Capital Corp.: | |||
5.75% | 120,000 | 3,060,000 | |
6.50% | 5,600 | 135,128 | |
Series C, 6.20% | 136,450 | 3,493,120 | |
Two Harbors Investment Corp.: | |||
Series A, 8.125% (b) | 292,032 | 7,619,115 | |
Series B, 7.625% (b) | 503,172 | 12,443,444 | |
Series C, 7.25% (b) | 312,649 | 7,697,418 | |
204,361,692 | |||
Real Estate Management & Development - 0.0% | |||
Brookfield Properties Corp. Series EE, 5.10% (b) | 7,675 | 147,444 | |
TOTAL FINANCIALS | 204,509,136 | ||
REAL ESTATE - 10.8% | |||
Equity Real Estate Investment Trusts (REITs) - 10.8% | |||
Agree Realty Corp. 4.375% | 38,700 | 895,905 | |
American Finance Trust, Inc.: | |||
7.50% | 193,698 | 5,225,972 | |
Series C 7.375% | 205,000 | 5,473,500 | |
American Homes 4 Rent: | |||
6.25% | 18,925 | 505,403 | |
Series F, 5.875% | 47,683 | 1,207,334 | |
Series G, 5.875% | 37,050 | 935,513 | |
Armada Hoffler Properties, Inc. 6.75% | 33,250 | 875,473 | |
Ashford Hospitality Trust, Inc.: | |||
Series D, 8.45% | 50,274 | 1,229,601 | |
Series F, 7.375% | 66,735 | 1,498,201 | |
Series G, 7.375% | 34,229 | 760,568 | |
Series H, 7.50% | 35,575 | 795,101 | |
Series I, 7.50% | 58,911 | 1,369,092 | |
Bluerock Residential Growth (REIT), Inc.: | |||
Series C, 7.625% | 44,175 | 1,122,929 | |
Series D, 7.125% | 31,900 | 806,432 | |
Braemar Hotels & Resorts, Inc. Series D, 8.25% | 35,150 | 900,016 | |
Cedar Realty Trust, Inc.: | |||
Series B, 7.25% | 40,856 | 1,038,555 | |
Series C, 6.50% | 53,500 | 1,342,850 | |
Centerspace Series C, 6.625% | 57,700 | 1,508,855 | |
City Office REIT, Inc. Series A, 6.625% | 27,525 | 691,703 | |
CTO Realty Growth, Inc. 6.375% | 20,000 | 517,000 | |
DiamondRock Hospitality Co. 8.25% | 34,900 | 957,656 | |
Digitalbridge Group, Inc.: | |||
Series H, 7.125% | 247,310 | 6,217,373 | |
Series I, 7.15% | 285,785 | 7,247,508 | |
Series J, 7.15% | 345,049 | 8,764,245 | |
Gladstone Commercial Corp.: | |||
6.625% | 41,125 | 1,085,700 | |
Series G, 6.00% | 81,700 | 2,123,383 | |
Gladstone Land Corp. Series D, 5.00% | 60,000 | 1,538,400 | |
Global Medical REIT, Inc. Series A, 7.50% | 27,461 | 710,416 | |
Global Net Lease, Inc.: | |||
Series A, 7.25% | 129,625 | 3,350,806 | |
Series B 6.875% | 47,200 | 1,243,248 | |
Healthcare Trust, Inc.: | |||
7.125% | 48,000 | 1,209,600 | |
Series A 7.375% | 33,000 | 828,927 | |
Hersha Hospitality Trust: | |||
Series C, 6.875% | 550 | 12,788 | |
Series D, 6.50% | 42,250 | 966,680 | |
Hudson Pacific Properties, Inc. Series C, 4.75% (a) | 40,000 | 1,009,600 | |
iStar Financial, Inc.: | |||
Series D, 8.00% | 76,856 | 1,981,348 | |
Series G, 7.65% | 145,100 | 3,700,050 | |
Series I, 7.50% | 303,323 | 7,701,371 | |
Monmouth Real Estate Investment Corp. Series C, 6.125% | 99,636 | 2,508,834 | |
National Storage Affiliates Trust Series A, 6.00% | 12,325 | 318,601 | |
Pebblebrook Hotel Trust: | |||
6.30% | 53,702 | 1,278,645 | |
6.375% | 2,800 | 70,028 | |
6.375% | 55,192 | 1,311,362 | |
Series H, 5.70% | 104,200 | 2,448,690 | |
Pennsylvania (REIT): | |||
Series B, 7.375% (a) | 56,533 | 317,150 | |
Series C, 7.20% (a) | 9,575 | 56,157 | |
Series D, 6.875% (a) | 27,400 | 137,822 | |
Plymouth Industrial REIT, Inc. Series A, 7.50% | 30,350 | 796,688 | |
Prologis (REIT), Inc. Series Q, 8.54% | 16,850 | 1,079,411 | |
Rexford Industrial Realty, Inc.: | |||
Series B, 5.875% | 50,000 | 1,280,500 | |
Series C, 5.625% | 11,775 | 301,911 | |
Saul Centers, Inc.: | |||
Series D, 6.125% | 15,958 | 406,291 | |
Series E, 6.00% | 13,475 | 353,045 | |
Seritage Growth Properties Series A, 7.00% | 1,050 | 22,617 | |
SITE Centers Corp. 6.375% | 15,100 | 380,369 | |
Sotherly Hotels, Inc.: | |||
Series B, 8.00% (a) | 12,750 | 232,688 | |
Series C, 7.875% (a) | 19,300 | 359,945 | |
Spirit Realty Capital, Inc. Series A, 6.00% | 16,575 | 421,337 | |
Summit Hotel Properties, Inc.: | |||
Series E, 6.25% | 53,934 | 1,294,416 | |
Series F, 5.875% | 61,000 | 1,500,600 | |
Sunstone Hotel Investors, Inc.: | |||
Series H, 6.125% | 20,000 | 509,584 | |
Series I, 5.70% | 38,700 | 934,605 | |
UMH Properties, Inc.: | |||
Series C, 6.75% | 85,195 | 2,175,880 | |
Series D, 6.375% | 63,875 | 1,642,865 | |
Urstadt Biddle Properties, Inc.: | |||
Series H, 6.25% | 51,175 | 1,286,028 | |
Series K 5.875% | 28,775 | 742,395 | |
Vornado Realty Trust: | |||
Series N, 5.25% | 11,092 | 284,621 | |
Series O, 4.45% | 55,300 | 1,265,264 | |
105,067,451 | |||
Real Estate Management & Development - 0.0% | |||
Brookfield Property Partners LP: | |||
5.75% | 7,000 | 159,250 | |
6.50% | 5,875 | 143,938 | |
303,188 | |||
TOTAL REAL ESTATE | 105,370,639 | ||
TOTAL NONCONVERTIBLE PREFERRED STOCKS | 317,330,134 | ||
TOTAL PREFERRED STOCKS | |||
(Cost $306,065,623) | 332,715,232 | ||
Principal Amount | Value | ||
Corporate Bonds - 21.0% | |||
Convertible Bonds - 6.4% | |||
FINANCIALS - 5.8% | |||
Mortgage Real Estate Investment Trusts - 5.8% | |||
Arbor Realty Trust, Inc. 4.75% 11/1/22 | 3,824,000 | 4,082,081 | |
Granite Point Mortgage Trust, Inc.: | |||
5.625% 12/1/22 (d) | 2,696,000 | 2,684,774 | |
6.375% 10/1/23 | 1,901,000 | 1,920,113 | |
KKR Real Estate Finance Trust, Inc. 6.125% 5/15/23 | 4,821,000 | 5,124,147 | |
MFA Financial, Inc. 6.25% 6/15/24 | 4,363,000 | 4,492,676 | |
PennyMac Corp.: | |||
5.5% 11/1/24 | 6,966,000 | 7,035,660 | |
5.5% 3/15/26 (d) | 250,000 | 246,420 | |
Redwood Trust, Inc.: | |||
4.75% 8/15/23 | 3,455,000 | 3,498,188 | |
5.625% 7/15/24 | 12,110,000 | 12,215,963 | |
RWT Holdings, Inc. 5.75% 10/1/25 | 11,771,000 | 11,909,453 | |
Two Harbors Investment Corp. 6.25% 1/15/26 | 3,400,000 | 3,428,702 | |
56,638,177 | |||
REAL ESTATE - 0.6% | |||
Equity Real Estate Investment Trusts (REITs) - 0.6% | |||
CBL & Associates HoldCo II LLC 7% 11/15/28 | 915,201 | 1,778,312 | |
Digitalbridge Group, Inc. 5% 4/15/23 | 3,687,000 | 3,753,184 | |
5,531,496 | |||
TOTAL CONVERTIBLE BONDS | 62,169,673 | ||
Nonconvertible Bonds - 14.6% | |||
COMMUNICATION SERVICES - 0.5% | |||
Media - 0.5% | |||
Clear Channel Outdoor Holdings, Inc.: | |||
7.5% 6/1/29 (d) | 1,275,000 | 1,321,219 | |
7.75% 4/15/28 (d) | 4,000,000 | 4,150,000 | |
5,471,219 | |||
CONSUMER DISCRETIONARY - 2.2% | |||
Hotels, Restaurants & Leisure - 0.5% | |||
Hilton Grand Vacations Borrower Escrow LLC 4.875% 7/1/31 (d) | 1,000,000 | 967,820 | |
Marriott Ownership Resorts, Inc. 4.5% 6/15/29 (d) | 2,180,000 | 2,138,667 | |
Times Square Hotel Trust 8.528% 8/1/26 (d)(e) | 1,355,974 | 1,428,452 | |
4,534,939 | |||
Household Durables - 1.7% | |||
Adams Homes, Inc. 7.5% 2/15/25 (d) | 1,550,000 | 1,596,500 | |
Ashton Woods U.S.A. LLC/Ashton Woods Finance Co.: | |||
4.625% 8/1/29 (d) | 605,000 | 595,925 | |
4.625% 4/1/30 (d) | 1,765,000 | 1,740,449 | |
Brookfield Residential Properties, Inc./Brookfield Residential U.S. Corp.: | |||
4.875% 2/15/30 (d) | 255,000 | 247,738 | |
6.25% 9/15/27 (d) | 1,467,000 | 1,512,844 | |
Century Communities, Inc.: | |||
3.875% 8/15/29 (d) | 1,930,000 | 1,852,318 | |
6.75% 6/1/27 | 1,770,000 | 1,841,707 | |
LGI Homes, Inc. 4% 7/15/29 (d) | 2,110,000 | 1,994,034 | |
M/I Homes, Inc. 3.95% 2/15/30 | 1,500,000 | 1,425,000 | |
New Home Co., Inc. 7.25% 10/15/25 (d) | 1,495,000 | 1,513,688 | |
Picasso Finance Sub, Inc. 6.125% 6/15/25 (d) | 648,000 | 671,639 | |
TRI Pointe Homes, Inc. 5.25% 6/1/27 | 2,042,000 | 2,105,813 | |
17,097,655 | |||
TOTAL CONSUMER DISCRETIONARY | 21,632,594 | ||
ENERGY - 0.4% | |||
Oil, Gas & Consumable Fuels - 0.4% | |||
EG Global Finance PLC: | |||
6.75% 2/7/25 (d) | 1,250,000 | 1,245,781 | |
8.5% 10/30/25 (d) | 305,000 | 309,217 | |
Global Partners LP/GLP Finance Corp. 7% 8/1/27 | 2,045,000 | 2,111,463 | |
3,666,461 | |||
FINANCIALS - 0.2% | |||
Diversified Financial Services - 0.2% | |||
Brixmor Operating Partnership LP 3.85% 2/1/25 | 1,753,000 | 1,833,677 | |
HEALTH CARE - 0.7% | |||
Health Care Providers & Services - 0.7% | |||
Sabra Health Care LP 5.125% 8/15/26 | 6,615,000 | 7,155,734 | |
INDUSTRIALS - 0.1% | |||
Trading Companies & Distributors - 0.1% | |||
Williams Scotsman International, Inc. 4.625% 8/15/28 (d) | 750,000 | 756,563 | |
REAL ESTATE - 10.5% | |||
Equity Real Estate Investment Trusts (REITs) - 7.4% | |||
American Finance Trust, Inc./American Finance Operating Partnership LP 4.5% 9/30/28 (d) | 2,600,000 | 2,522,000 | |
American Homes 4 Rent LP 4.25% 2/15/28 | 2,000,000 | 2,150,645 | |
CBL & Associates HoldCo II LLC 10% 11/15/29 | 2,332,700 | 2,332,700 | |
CBL & Associates LP: | |||
4.6% 10/15/24 (e)(f) | 3,930,000 | 0 | |
5.25% 12/1/23 (e)(f) | 3,629,000 | 0 | |
5.95% 12/15/26 (e)(f) | 2,551,000 | 0 | |
CTR Partnership LP/CareTrust Capital Corp. 3.875% 6/30/28 (d) | 2,135,000 | 2,113,650 | |
Global Net Lease, Inc. / Global Net Lease Operating Partnership LP 3.75% 12/15/27 (d) | 925,000 | 890,085 | |
GLP Capital LP/GLP Financing II, Inc. 5.25% 6/1/25 | 2,375,000 | 2,547,473 | |
iStar Financial, Inc.: | |||
4.25% 8/1/25 | 3,200,000 | 3,178,194 | |
4.75% 10/1/24 | 7,120,000 | 7,209,000 | |
5.5% 2/15/26 | 3,015,000 | 3,067,763 | |
MPT Operating Partnership LP/MPT Finance Corp.: | |||
4.625% 8/1/29 | 1,506,000 | 1,548,605 | |
5% 10/15/27 | 4,237,000 | 4,353,518 | |
Office Properties Income Trust: | |||
4.25% 5/15/24 | 946,000 | 977,683 | |
4.5% 2/1/25 | 3,695,000 | 3,851,714 | |
Omega Healthcare Investors, Inc.: | |||
4.5% 4/1/27 | 483,000 | 522,309 | |
4.75% 1/15/28 | 1,616,000 | 1,753,411 | |
4.95% 4/1/24 | 659,000 | 696,488 | |
5.25% 1/15/26 | 22,000 | 24,043 | |
Realty Income Corp.: | |||
3.1% 12/15/29 | 1,000,000 | 1,032,483 | |
4.6% 2/6/24 | 1,757,000 | 1,848,152 | |
4.875% 6/1/26 | 1,593,000 | 1,764,392 | |
RLJ Lodging Trust LP 4% 9/15/29 (d) | 2,245,000 | 2,115,913 | |
Senior Housing Properties Trust: | |||
4.75% 5/1/24 | 6,480,000 | 6,480,000 | |
4.75% 2/15/28 | 5,067,000 | 4,758,572 | |
9.75% 6/15/25 | 2,000,000 | 2,121,440 | |
Service Properties Trust: | |||
4.65% 3/15/24 | 1,556,000 | 1,513,210 | |
5% 8/15/22 | 859,000 | 855,753 | |
7.5% 9/15/25 | 1,480,000 | 1,559,668 | |
Uniti Group LP / Uniti Group Finance, Inc. 6.5% 2/15/29 (d) | 4,000,000 | 3,783,960 | |
Uniti Group, Inc.: | |||
6% 1/15/30 (d) | 1,040,000 | 951,600 | |
7.875% 2/15/25 (d) | 1,000,000 | 1,041,500 | |
VICI Properties, Inc. 4.625% 12/1/29 (d) | 1,095,000 | 1,127,051 | |
WP Carey, Inc.: | |||
4% 2/1/25 | 422,000 | 443,685 | |
4.25% 10/1/26 | 459,000 | 495,494 | |
XHR LP 6.375% 8/15/25 (d) | 750,000 | 775,313 | |
72,407,467 | |||
Real Estate Management & Development - 3.1% | |||
DTZ U.S. Borrower LLC 6.75% 5/15/28 (d) | 875,000 | 924,228 | |
Five Point Operation Co. LP 7.875% 11/15/25 (d) | 3,734,000 | 3,850,688 | |
Forestar Group, Inc. 3.85% 5/15/26 (d) | 1,000,000 | 980,000 | |
Greystar Real Estate Partners 5.75% 12/1/25 (d) | 3,430,000 | 3,486,904 | |
Howard Hughes Corp.: | |||
4.125% 2/1/29 (d) | 3,000,000 | 2,883,690 | |
4.375% 2/1/31 (d) | 1,180,000 | 1,122,475 | |
5.375% 8/1/28 (d) | 1,345,000 | 1,370,104 | |
Kennedy-Wilson, Inc.: | |||
4.75% 3/1/29 | 4,590,000 | 4,558,604 | |
4.75% 2/1/30 | 3,590,000 | 3,527,175 | |
Mattamy Group Corp. 5.25% 12/15/27 (d) | 2,855,000 | 2,905,334 | |
Mid-America Apartments LP 3.75% 6/15/24 | 356,000 | 371,035 | |
Realogy Group LLC/Realogy Co-Issuer Corp. 5.75% 1/15/29 (d) | 2,500,000 | 2,455,750 | |
Taylor Morrison Communities, Inc./Monarch Communities, Inc.: | |||
5.875% 6/15/27 (d) | 202,000 | 216,645 | |
6.625% 7/15/27 (d) | 1,427,000 | 1,484,080 | |
30,136,712 | |||
TOTAL REAL ESTATE | 102,544,179 | ||
TOTAL NONCONVERTIBLE BONDS | 143,060,427 | ||
TOTAL CORPORATE BONDS | |||
(Cost $188,835,948) | 205,230,100 | ||
Asset-Backed Securities - 2.8% | |||
American Homes 4 Rent: | |||
Series 2014-SFR3 Class E, 6.418% 12/17/36 (d) | 1,841,000 | 1,973,004 | |
Series 2015-SFR2: | |||
Class E, 6.07% 10/17/52 (d) | 1,624,000 | 1,751,665 | |
Class XS, 0% 10/17/52 (b)(d)(e)(g) | 902,926 | 9 | |
Conseco Finance Securitizations Corp.: | |||
Series 2002-1 Class M2, 9.546% 12/1/33 | 1,216,000 | 1,280,844 | |
Series 2002-2 Class M2, 9.163% 3/1/33 | 1,524,737 | 1,422,649 | |
Diamond Infrastructure Funding LLC Series 2021-1A Class C, 3.475% 4/15/49 (d) | 1,005,000 | 985,077 | |
DigitalBridge Issuer, LLC / DigitalBridge Co.-Issuer, LLC Series 2021-1A Class A2, 3.933% 9/25/51 (d) | 1,000,000 | 998,202 | |
FirstKey Homes Trust: | |||
Series 2021-SFR1 Class F1, 3.238% 8/17/38 (d) | 1,250,000 | 1,209,679 | |
Series 2021-SFR2 Class F1, 2.908% 9/17/38 (d) | 500,000 | 478,445 | |
FRTKL Series 2021-SFR1: | |||
Class F, 3.171% 9/17/38 (d) | 500,000 | 481,091 | |
Class G, 4.105% 9/17/38 (d) | 500,000 | 483,271 | |
GPMT Ltd. Series 2019-FL2 Class D, 1 month U.S. LIBOR + 2.950% 3.0593% 2/22/36 (b)(c)(d) | 358,000 | 357,895 | |
Green Tree Financial Corp.: | |||
Series 1996-4 Class M1, 7.75% 6/15/27 (b) | 3,785 | 3,885 | |
Series 1997-3 Class M1, 7.53% 3/15/28 | 32,728 | 32,855 | |
Home Partners of America Trust: | |||
Series 2021-1 Class F, 3.325% 9/17/41 (d) | 474,316 | 455,572 | |
Series 2021-2 Class G, 4.505% 12/17/26 (d) | 997,711 | 984,351 | |
Series 2021-3 Class F, 4.242% 1/17/41 (d) | 1,442,000 | 1,422,059 | |
Lehman ABS Manufactured Housing Contract Trust Series 2001-B Class M2, 7.17% 4/15/40 | 1,770,973 | 1,323,647 | |
Progress Residential Trust: | |||
Series 2019-SFR3 Class F, 3.867% 9/17/36 (d) | 1,000,000 | 998,250 | |
Series 2019-SFR4 Class F, 3.684% 10/17/36 (d) | 1,000,000 | 998,250 | |
Series 2020-SFR1 Class H, 5.268% 4/17/37 (d) | 588,000 | 592,530 | |
Series 2021-SFR2 Class H, 4.998% 4/19/38 (d) | 1,533,000 | 1,504,601 | |
Series 2021-SFR6: | |||
Class F, 3.422% 7/17/38 (d) | 1,449,000 | 1,396,943 | |
Class G, 4.003% 7/17/38 (d) | 749,000 | 721,983 | |
Series 2021-SFR8: | |||
Class F, 3.181% 10/17/38 (d) | 934,000 | 898,314 | |
Class G, 4.005% 10/17/38 (d) | 2,351,000 | 2,296,323 | |
Tricon American Homes Series 2017-SFR2 Class F, 5.104% 1/17/36 (d) | 628,000 | 635,287 | |
VB-S1 Issuer LLC Series 2018-1A Class F, 5.25% 2/15/48 (d) | 2,044,000 | 2,043,455 | |
TOTAL ASSET-BACKED SECURITIES | |||
(Cost $28,256,566) | 27,730,136 | ||
Commercial Mortgage Securities - 22.5% | |||
ALEN Mortgage Trust floater Series 2021-ACEN Class F, 1 month U.S. LIBOR + 5.000% 5.106% 4/15/34 (b)(c)(d) | 616,000 | 608,283 | |
Ashford Hospitality Trust floater Series 2018-ASHF Class E, 1 month U.S. LIBOR + 3.100% 3.206% 4/15/35 (b)(c)(d) | 905,000 | 878,342 | |
BAMLL Commercial Mortgage Securities Trust floater Series 2021-JACX Class E, 1 month U.S. LIBOR + 3.750% 3.856% 9/15/38 (b)(c)(d) | 1,000,000 | 997,920 | |
BANK: | |||
Series 2017-BNK4 Class D, 3.357% 5/15/50 (d) | 625,000 | 577,275 | |
Series 2017-BNK8 Class E, 2.8% 11/15/50 (d) | 1,848,000 | 1,304,326 | |
Series 2018-BN12 Class D, 3% 5/15/61 (d) | 318,000 | 267,747 | |
BCP Trust floater Series 2021-330N Class F, 1 month U.S. LIBOR + 4.630% 4.74% 6/15/38 (b)(c)(d) | 1,000,000 | 986,271 | |
Benchmark Mortgage Trust: | |||
sequential payer Series 2019-B14: | |||
Class 225D, 3.2943% 12/15/62 (b)(d) | 573,000 | 531,241 | |
Class 225E, 3.2943% 12/15/62 (b)(d) | 859,000 | 756,285 | |
Series 2020-B18 Class AGNG, 4.3885% 7/15/53 (b)(d) | 2,058,000 | 1,979,495 | |
BHP Trust floater Series 2019-BXHP Class F, 1 month U.S. LIBOR + 2.930% 3.044% 8/15/36 (b)(c)(d) | 1,050,000 | 1,038,381 | |
BLOX Trust floater Series 2021-BLOX Class E, 1 month U.S. LIBOR + 2.500% 2.606% 9/15/26 (b)(c)(d) | 500,000 | 498,679 | |
BPR Trust floater Series 2021-TY: | |||
Class E, 1 month U.S. LIBOR + 3.600% 3.706% 9/15/38 (b)(c)(d) | 500,000 | 499,048 | |
Class F, 1 month U.S. LIBOR + 4.200% 4.306% 9/15/38 (b)(c)(d) | 294,000 | 293,263 | |
BSREP Commercial Mortgage Trust floater Series 2021-DC: | |||
Class F, 1 month U.S. LIBOR + 2.850% 2.957% 8/15/38 (b)(c)(d) | 250,000 | 246,880 | |
Class G, 1 month U.S. LIBOR + 3.850% 3.957% 8/15/38 (b)(c)(d) | 250,000 | 246,364 | |
BX Commercial Mortgage Trust: | |||
floater: | |||
Series 2018-BIOA Class F, 1 month U.S. LIBOR + 2.470% 2.5771% 3/15/37 (b)(c)(d) | 1,935,791 | 1,916,356 | |
Series 2020-BXLP Class G, 1 month U.S. LIBOR + 2.500% 2.606% 12/15/36 (b)(c)(d) | 811,453 | 803,315 | |
Series 2021-CIP Class G, 1 month U.S. LIBOR + 3.960% 4.075% 12/15/38 (b)(c)(d) | 3,549,000 | 3,542,246 | |
Series 2021-FOX Class F, 1 month U.S. LIBOR + 4.250% 4.356% 11/15/32 (b)(c)(d) | 842,804 | 842,044 | |
Series 2021-PAC Class G, 1 month U.S. LIBOR + 2.940% 3.0531% 10/15/36 (b)(c)(d) | 2,570,000 | 2,558,530 | |
Series 2021-VINO Class G, 1 month U.S. LIBOR + 3.950% 4.0583% 5/15/38 (b)(c)(d) | 3,499,000 | 3,468,257 | |
Series 2020-VIVA: | |||
Class D, 3.5488% 3/11/44 (b)(d) | 1,505,000 | 1,460,250 | |
Class E, 3.5488% 3/11/44 (b)(d) | 2,018,000 | 1,857,253 | |
BX Trust: | |||
floater: | |||
Series 2018-IND: | |||
Class G, 1 month U.S. LIBOR + 2.050% 2.156% 11/15/35 (b)(c)(d) | 1,190,700 | 1,186,162 | |
Class H, 1 month U.S. LIBOR + 3.000% 3.106% 11/15/35 (b)(c)(d) | 1,157,800 | 1,151,994 | |
Series 2019-ATL Class E, 1 month U.S. LIBOR + 2.230% 2.3426% 10/15/36 (b)(c)(d) | 1,000,000 | 977,432 | |
Series 2019-IMC Class G, 1 month U.S. LIBOR + 3.600% 3.706% 4/15/34 (b)(c)(d) | 819,000 | 802,716 | |
Series 2019-XL Class J, 1 month U.S. LIBOR + 2.650% 2.756% 10/15/36 (b)(c)(d) | 1,592,900 | 1,568,931 | |
Series 2021-21M Class H, 1 month U.S. LIBOR + 4.010% 4.116% 10/15/36 (b)(c)(d) | 1,000,000 | 988,613 | |
Series 2021-ACNT Class G, 1 month U.S. LIBOR + 3.290% 3.402% 11/15/26 (b)(c)(d) | 250,000 | 248,938 | |
Series 2021-ARIA Class G, 1 month U.S. LIBOR + 3.140% 3.2481% 10/15/36 (b)(c)(d) | 2,412,000 | 2,393,871 | |
Series 2021-SDMF Class F, 1 month U.S. LIBOR + 1.930% 2.043% 9/15/34 (b)(c)(d) | 250,000 | 245,352 | |
Series 2021-SOAR Class G, 2.906% 6/15/38 (b)(d) | 1,000,000 | 982,458 | |
Series 2021-VOLT: | |||
Class F, 1 month U.S. LIBOR + 2.400% 2.5063% 9/15/36 (b)(c)(d) | 1,491,000 | 1,476,059 | |
Class G, 1 month U.S. LIBOR + 2.850% 2.9563% 9/15/36 (b)(c)(d) | 2,793,000 | 2,765,005 | |
Series 2021-XL2 Class J, 1 month U.S. LIBOR + 3.890% 3.996% 10/15/38 (b)(c)(d) | 6,372,000 | 6,292,227 | |
Series 2022-LBA6: | |||
Class F, U.S. 30-Day Avg. Secured Overnight Fin. Rate (SOFR) Indx + 3.350% 3.4084% 1/15/39 (b)(c)(d) | 700,000 | 700,000 | |
Class G, U.S. 30-Day Avg. Secured Overnight Fin. Rate (SOFR) Indx + 4.200% 4.2584% 1/15/39 (b)(c)(d) | 1,491,000 | 1,491,000 | |
floater sequential payer Series 2021-LGCY Class J, 1 month U.S. LIBOR + 3.190% 3.299% 10/15/23 (b)(c)(d) | 1,558,000 | 1,540,964 | |
Series 2019-OC11 Class E, 4.0755% 12/9/41 (b)(d) | 4,624,000 | 4,446,169 | |
CALI Mortgage Trust Series 2019-101C Class F, 4.3244% 3/10/39 (b)(d) | 651,000 | 599,120 | |
CAMB Commercial Mortgage Trust floater Series 2019-LIFE Class G, 1 month U.S. LIBOR + 3.250% 3.356% 12/15/37 (b)(c)(d) | 1,021,000 | 1,017,440 | |
CD Mortgage Trust Series 2017-CD3 Class D, 3.25% 2/10/50 (d) | 2,226,000 | 1,683,538 | |
CGMS Commercial Mortgage Trust Series 2017-MDRB: | |||
Class D, 1 month U.S. LIBOR + 3.250% 3.356% 7/15/30 (b)(c)(d) | 69,000 | 68,719 | |
Class E, 1 month U.S. LIBOR + 3.870% 3.9775% 7/15/30 (b)(c)(d) | 1,229,000 | 1,184,691 | |
CHC Commercial Mortgage Trust floater Series 2019-CHC Class F, 1 month U.S. LIBOR + 2.600% 2.7142% 6/15/34 (b)(c)(d) | 992,754 | 939,302 | |
Citigroup Commercial Mortgage Trust: | |||
Series 2013-GC15 Class D, 5.178% 9/10/46 (b)(d) | 2,496,000 | 2,466,578 | |
Series 2016-C3 Class D, 3% 11/15/49 (d) | 2,990,000 | 2,367,361 | |
Cologix Data Centers U.S. Issuer, LLC / Cologix Data Centers U.S. Co.-Issuer, LLC Series 2021-1A Class C, 5.99% 12/26/51 (d) | 1,500,000 | 1,492,181 | |
COMM Mortgage Trust: | |||
floater Series 2018-HCLV: | |||
Class F, 1 month U.S. LIBOR + 3.050% 3.156% 9/15/33 (b)(c)(d) | 735,000 | 671,815 | |
Class G, 1 month U.S. LIBOR + 5.050% 5.1623% 9/15/33 (b)(c)(d) | 735,000 | 638,782 | |
sequential payer Series 2013-LC6 Class E, 3.5% 1/10/46 (d) | 1,299,000 | 1,068,338 | |
Series 2012-CR1: | |||
Class C, 5.4512% 5/15/45 (b) | 3,011,000 | 2,966,443 | |
Class D, 5.4512% 5/15/45 (b)(d) | 1,917,000 | 1,742,294 | |
Class G, 2.462% 5/15/45 (d)(e) | 1,133,000 | 225,562 | |
Series 2012-LC4 Class C, 5.5581% 12/10/44 (b) | 802,000 | 778,714 | |
Series 2013-CR10 Class D, 4.8999% 8/10/46 (b)(d) | 1,756,000 | 1,765,978 | |
Series 2013-LC6 Class D, 4.2884% 1/10/46 (b)(d) | 2,732,000 | 2,703,735 | |
Series 2014-UBS2 Class D, 5.0039% 3/10/47 (b)(d) | 537,000 | 528,152 | |
Series 2017-CD4 Class D, 3.3% 5/10/50 (d) | 1,192,000 | 1,068,861 | |
COMM Trust Series 2017-COR2 Class D, 3% 9/10/50 (d) | 31,000 | 28,257 | |
Commercial Mortgage Trust pass-thru certificates Series 2012-CR2: | |||
Class D, 4.8305% 8/15/45 (b)(d) | 836,000 | 822,758 | |
Class F, 4.25% 8/15/45 (d) | 783,000 | 624,028 | |
Credit Suisse Commercial Mortgage Trust floater Series 2021-SOP2 Class F, 1 month U.S. LIBOR + 4.210% 4.3232% 6/15/34 (c)(d) | 1,000,000 | 987,519 | |
Credit Suisse Mortgage Trust: | |||
floater: | |||
Series 2019-ICE4 Class F, 1 month U.S. LIBOR + 2.650% 2.756% 5/15/36 (b)(c)(d) | 3,233,000 | 3,200,587 | |
Series 2021-4SZN Class A, U.S. 30-Day Avg. Secured Overnight Fin. Rate (SOFR) Indx + 3.960% 4.0665% 11/15/23 (b)(c)(d) | 2,000,000 | 1,993,413 | |
Series 2020-NET: | |||
Class E, 3.7042% 8/15/37 (b)(d) | 500,000 | 502,507 | |
Class F, 3.7042% 8/15/37 (b)(d) | 1,057,000 | 1,045,488 | |
CRSNT Trust floater Series 2021-MOON Class E, 1 month U.S. LIBOR + 2.550% 2.66% 4/15/36 (b)(c)(d) | 1,000,000 | 998,431 | |
CSAIL Commercial Mortgage Trust: | |||
Series 2017-C8 Class D, 4.4754% 6/15/50 (b)(d) | 1,766,000 | 1,551,777 | |
Series 2017-CX10 Class UESD, 4.2366% 10/15/32 (b)(d) | 1,287,000 | 1,262,800 | |
Series 2017-CX9 Class D, 4.1315% 9/15/50 (b)(d) | 461,000 | 408,466 | |
CSMC Trust floater Series 2017-CHOP Class F, 1 month U.S. LIBOR + 4.600% 4.706% 7/15/32 (b)(c)(d) | 2,493,000 | 2,361,595 | |
DBCCRE Mortgage Trust Series 2014-ARCP Class E, 4.9345% 1/10/34 (b)(d) | 2,168,000 | 2,175,010 | |
DBGS Mortgage Trust Series 2018-C1 Class C, 4.6338% 10/15/51 (b) | 1,000,000 | 1,032,738 | |
DBUBS Mortgage Trust Series 2011-LC3A Class D, 5.3651% 8/10/44 (b)(d) | 699,340 | 679,409 | |
Extended Stay America Trust floater Series 2021-ESH: | |||
Class E, 1 month U.S. LIBOR + 2.850% 2.957% 7/15/38 (b)(c)(d) | 1,299,999 | 1,299,218 | |
Class F, 1 month U.S. LIBOR + 3.700% 3.807% 7/15/38 (b)(c)(d) | 3,262,918 | 3,261,897 | |
GPMT, Ltd. / GPMT LLC floater Series 2018-FL1 Class D, 1 month U.S. LIBOR + 2.950% 3.0593% 11/21/35 (b)(c)(d) | 1,500,000 | 1,498,701 | |
GS Mortgage Securities Trust: | |||
floater Series 2018-RIVR Class G, 1 month U.S. LIBOR + 2.600% 2.706% 7/15/35 (b)(c)(d) | 669,000 | 601,865 | |
Series 2011-GC5: | |||
Class C, 5.158% 8/10/44 (b)(d)(e) | 101,000 | 86,608 | |
Class D, 5.158% 8/10/44 (b)(d) | 759,236 | 366,331 | |
Class E, 5.158% 8/10/44 (b)(d)(e) | 848,000 | 86,920 | |
Class F, 4.5% 8/10/44 (d)(e) | 677,000 | 7,454 | |
Series 2012-GC6 Class E, 5% 1/10/45 (b)(d) | 952,418 | 933,370 | |
Series 2012-GCJ9: | |||
Class D, 4.7376% 11/10/45 (b)(d) | 1,569,000 | 1,567,400 | |
Class E, 4.7376% 11/10/45 (b)(d)(e) | 355,000 | 310,271 | |
Series 2013-GC16: | |||
Class D, 5.3107% 11/10/46 (b)(d) | 3,292,000 | 3,285,523 | |
Class F, 3.5% 11/10/46 (d) | 1,510,000 | 1,124,361 | |
Series 2016-GS2 Class D, 2.753% 5/10/49 (d) | 1,964,000 | 1,769,679 | |
Series 2021-RENT Class G, 1 month U.S. LIBOR + 5.700% 5.8091% 11/21/35 (b)(c)(d) | 4,948,726 | 4,985,954 | |
Hilton U.S.A. Trust Series 2016-HHV Class F, 4.1935% 11/5/38 (b)(d) | 2,515,000 | 2,390,653 | |
IMT Trust Series 2017-APTS: | |||
Class EFX, 3.4966% 6/15/34 (b)(d) | 1,693,000 | 1,673,747 | |
Class FFL, 1 month U.S. LIBOR + 2.850% 2.9563% 6/15/34 (b)(c)(d) | 467,531 | 465,956 | |
Independence Plaza Trust Series 2018-INDP Class E, 4.996% 7/10/35 (d) | 504,000 | 485,890 | |
JPMBB Commercial Mortgage Securities Trust: | |||
Series 2014-C23 Class UH5, 4.7094% 9/15/47 (d) | 1,624,000 | 1,394,005 | |
Series 2014-C26 Class D, 3.8771% 1/15/48 (b)(d) | 602,000 | 572,755 | |
JPMCC Commercial Mortgage Securities Trust Series 2016-JP4 Class D, 3.3883% 12/15/49 (b)(d) | 1,924,000 | 1,651,441 | |
JPMDB Commercial Mortgage Securities Trust: | |||
Series 2016-C4 Class D, 3.0707% 12/15/49 (b)(d) | 1,308,000 | 1,142,166 | |
Series 2018-C8 Class D, 3.218% 6/15/51 (b)(d) | 302,000 | 254,246 | |
JPMorgan Chase Commercial Mortgage Securities Trust: | |||
floater Series 2018-LAQ Class E, 1 month U.S. LIBOR + 3.000% 3.106% 6/15/35 (b)(c)(d) | 15,200 | 15,153 | |
sequential payer Series 2021-1MEM Class E, 2.6535% 10/9/42 (b)(d) | 500,000 | 425,811 | |
Series 2011-C3: | |||
Class E, 5.5236% 2/15/46 (b)(d) | 3,467,000 | 1,303,139 | |
Class G, 4.409% 2/15/46 (b)(d) | 1,680,000 | 160,566 | |
Class H, 4.409% 2/15/46 (b)(d)(e) | 1,320,000 | 80,850 | |
Series 2011-C4 Class E, 5.5271% 7/15/46 (b)(d) | 1,390,000 | 1,398,569 | |
Series 2012-CBX: | |||
Class C, 4.7993% 6/15/45 (b) | 1,291,000 | 1,263,616 | |
Class E, 4.7993% 6/15/45 (b)(d) | 1,078,000 | 485,100 | |
Class G 4% 6/15/45 (d) | 805,000 | 63,672 | |
Series 2013-LC11: | |||
Class D, 4.1642% 4/15/46 (b) | 1,316,000 | 1,078,884 | |
Class F, 3.25% 4/15/46 (b)(d)(e) | 482,000 | 201,250 | |
Series 2014-DSTY Class E, 3.8046% 6/10/27 (b)(d)(e) | 924,000 | 18,480 | |
Series 2018-AON Class F, 4.6132% 7/5/31 (b)(d) | 961,000 | 949,609 | |
Series 2020-NNN Class FFX, 4.6254% 1/16/37 (d) | 1,406,000 | 1,358,842 | |
LIFE Mortgage Trust floater Series 2021-BMR Class G, 1 month U.S. LIBOR + 2.950% 3.056% 3/15/38 (b)(c)(d) | 2,848,000 | 2,812,456 | |
MED Trust floater Series 2021-MDLN Class G, 1 month U.S. LIBOR + 5.250% 5.357% 11/15/38 (b)(c)(d) | 3,870,000 | 3,821,515 | |
Merit floater Series 2021-STOR: | |||
Class F, 1 month U.S. LIBOR + 2.200% 2.306% 7/15/38 (b)(c)(d) | 250,000 | 247,494 | |
Class G, 1 month U.S. LIBOR + 2.750% 2.856% 7/15/38 (b)(c)(d) | 250,000 | 246,542 | |
MHC Commercial Mortgage Trust floater Series 2021-MHC: | |||
Class F, 1 month U.S. LIBOR + 2.600% 2.7073% 4/15/38 (b)(c)(d) | 1,000,000 | 992,483 | |
Class G, 1 month U.S. LIBOR + 3.200% 3.3073% 4/15/38 (b)(c)(d) | 846,000 | 844,945 | |
MHP Commercial Mortgage Trust floater Series 2022-MHIL Class G, U.S. 30-Day Avg. Secured Overnight Fin. Rate (SOFR) Indx + 3.950% 4.0075% 1/15/27 (b)(c)(d) | 2,562,000 | 2,546,092 | |
Morgan Stanley BAML Trust: | |||
Series 2012-C6 Class D, 4.6024% 11/15/45 (b)(d) | 2,000,000 | 1,990,168 | |
Series 2012-C6, Class F, 4.6024% 11/15/45 (b)(d)(e) | 1,000,000 | 855,006 | |
Series 2013-C12 Class D, 4.7625% 10/15/46 (b)(d) | 1,500,000 | 1,429,676 | |
Series 2013-C13: | |||
Class D, 4.8968% 11/15/46 (b)(d) | 2,994,000 | 2,852,586 | |
Class E, 4.8968% 11/15/46 (b)(d) | 659,000 | 547,542 | |
Series 2013-C9 Class C, 4.0202% 5/15/46 (b) | 625,000 | 630,243 | |
Series 2016-C30 Class D, 3% 9/15/49 (d) | 522,000 | 393,216 | |
Morgan Stanley Capital I Trust: | |||
Series 1998-CF1 Class G, 7.35% 7/15/32 (b)(d) | 43,827 | 43,997 | |
Series 2011-C2: | |||
Class D, 5.2113% 6/15/44 (b)(d) | 1,768,120 | 1,730,327 | |
Class F, 5.2113% 6/15/44 (b)(d)(e) | 1,467,000 | 953,550 | |
Class XB, 0.43% 6/15/44 (b)(d)(g) | 24,071,447 | 95,535 | |
Series 2011-C3: | |||
Class C, 5.0858% 7/15/49 (b)(d) | 557,909 | 569,386 | |
Class D, 5.0858% 7/15/49 (b)(d) | 83,000 | 83,413 | |
Class E, 5.0858% 7/15/49 (b)(d)(e) | 652,000 | 592,763 | |
Class F, 5.0858% 7/15/49 (b)(d) | 636,000 | 468,228 | |
Class G, 5.0858% 7/15/49 (b)(d)(e) | 979,600 | 540,023 | |
Series 2012-C4 Class D, 5.4766% 3/15/45 (b)(d) | 1,640,000 | 1,551,144 | |
Series 2015-MS1 Class D, 4.0312% 5/15/48 (b)(d) | 2,045,000 | 1,881,287 | |
Series 2015-UBS8 Class D, 3.18% 12/15/48 (d) | 642,000 | 521,769 | |
Series 2016-BNK2 Class C, 3% 11/15/49 (d) | 2,346,000 | 2,018,951 | |
Motel 6 Trust floater Series 2021-MTL6: | |||
Class F, 1 month U.S. LIBOR + 3.550% 3.6563% 9/15/38 (b)(c)(d) | 1,334,000 | 1,332,391 | |
Class G, 1 month U.S. LIBOR + 4.700% 4.8063% 9/15/38 (b)(c)(d) | 1,310,000 | 1,308,420 | |
Class H, 1 month U.S. LIBOR + 6.000% 6.1063% 9/15/38 (b)(c)(d) | 714,000 | 716,403 | |
MRCD Mortgage Trust Series 2019-PARK Class J, 4.25% 12/15/36 (d) | 2,716,000 | 2,583,151 | |
MSJP Commercial Securities Mortgage Trust Series 2015-HAUL Class E, 4.851% 9/5/47 (b)(d) | 1,000,000 | 910,833 | |
Natixis Commercial Mortgage Securities Trust floater Series 2018-FL1: | |||
Class WAN1, 1 month U.S. LIBOR + 2.750% 2.8563% 6/15/35 (b)(c)(d) | 315,000 | 300,745 | |
Class WAN2, 1 month U.S. LIBOR + 3.750% 3.8563% 6/15/35 (b)(c)(d)(e) | 113,725 | 105,183 | |
OPG Trust floater Series 2021-PORT: | |||
Class G, 1 month U.S. LIBOR + 2.390% 2.504% 10/15/36 (b)(c)(d) | 500,000 | 489,862 | |
Class J, 1 month U.S. LIBOR + 3.340% 3.452% 10/15/36 (b)(c)(d) | 500,000 | 496,568 | |
PKHL Commercial Mortgage Trust floater Series 2021-MF: | |||
Class E, 1 month U.S. LIBOR + 2.600% 2.707% 7/15/38 (b)(c)(d) | 500,000 | 499,310 | |
Class G, 1 month U.S. LIBOR + 4.350% 4.457% 7/15/38 (b)(c)(d) | 500,000 | 499,694 | |
Prima Capital CRE Securitization Ltd. Series 2020-8A Class C, 3% 12/1/70 (d) | 250,000 | 227,991 | |
Providence Place Group Ltd. Partnership Series 2000-C1 Class A2, 7.75% 7/20/28 (d)(e) | 896,361 | 1,045,562 | |
ReadyCap Commercial Mortgage Trust floater Series 2019-FL3 Class D, 1 month U.S. LIBOR + 2.900% 3.0077% 3/25/34 (b)(c)(d) | 599,000 | 576,015 | |
SG Commercial Mortgage Securities Trust Series 2019-PREZ Class F, 3.4771% 9/15/39 (b)(d) | 2,000,000 | 1,803,209 | |
SMRT Commercial Mortgage Trust floater Series 2022-MINI Class F, U.S. 30-Day Avg. Secured Overnight Fin. Rate (SOFR) Indx + 3.350% 3.35% 1/15/24 (b)(c)(d) | 3,633,000 | 3,633,000 | |
SREIT Trust floater: | |||
Series 2021-FLWR Class E, 1 month U.S. LIBOR + 1.920% 2.03% 7/15/36 (b)(c)(d) | 500,000 | 491,914 | |
Series 2021-IND Class G, 1 month U.S. LIBOR + 3.260% 3.3718% 10/15/38 (b)(c)(d) | 2,573,000 | 2,541,957 | |
Series 2021-MFP Class G, 1 month U.S. LIBOR + 2.970% 3.0801% 11/15/38 (b)(c)(d) | 1,000,000 | 993,761 | |
Series 2021-MFP2 Class J, 1 month U.S. LIBOR + 3.910% 4.0215% 11/15/36 (b)(c)(d) | 2,000,000 | 1,992,061 | |
STWD Trust floater sequential payer Series 2021-LIH Class G, 1 month U.S. LIBOR + 4.200% 4.306% 11/15/36 (b)(c)(d) | 1,280,000 | 1,272,676 | |
TPGI Trust floater Series 2021-DGWD: | |||
Class E, 1 month U.S. LIBOR + 2.350% 2.46% 6/15/26 (b)(c)(d) | 1,386,000 | 1,373,612 | |
Class G, 1 month U.S. LIBOR + 3.850% 3.96% 6/15/26 (b)(c)(d) | 1,176,000 | 1,168,297 | |
UBS Commercial Mortgage Trust Series 2012-C1: | |||
Class D, 5.6763% 5/10/45 (b)(d) | 492,000 | 462,660 | |
Class E, 5% 5/10/45 (b)(d) | 1,236,000 | 481,305 | |
Class F, 5% 5/10/45 (b)(d) | 399,000 | 19,950 | |
UBS-BAMLL Trust Series 12-WRM Class D, 4.238% 6/10/30 (b)(d) | 1,817,000 | 1,372,189 | |
UBS-Citigroup Commercial Mortgage Trust Series 2011-C1 Class B, 6.4122% 1/10/45 (b)(d) | 8,752 | 8,743 | |
VMC Finance Ltd. floater Series 2021-HT1 Class B, 1 month U.S. LIBOR + 4.500% 4.603% 1/18/37 (b)(c)(d) | 3,528,000 | 3,526,902 | |
Wells Fargo Commercial Mortgage Trust: | |||
Series 2012-LC5: | |||
Class D, 4.7565% 10/15/45 (b)(d) | 637,000 | 641,548 | |
Class E, 4.7565% 10/15/45 (b)(d) | 1,539,000 | 1,517,535 | |
Class F, 4.7565% 10/15/45 (b)(d) | 774,000 | 695,101 | |
Series 2016-BNK1 Class D, 3% 8/15/49 (d) | 1,260,000 | 879,115 | |
Series 2016-NXS6 Class D, 3.059% 11/15/49 (d) | 963,000 | 838,361 | |
WF-RBS Commercial Mortgage Trust: | |||
sequential payer Series 2011-C4I Class G, 4.8874% 6/15/44 (b)(e) | 45,000 | 2,683 | |
Series 2011-C3: | |||
Class D, 5.5133% 3/15/44 (b)(d) | 3,141,502 | 1,573,264 | |
Class E, 5% 3/15/44 (d)(e) | 34,000 | 2,210 | |
Series 2011-C5: | |||
Class E, 5.5199% 11/15/44 (b)(d) | 405,453 | 404,853 | |
Class F, 5.25% 11/15/44 (b)(d) | 2,000,000 | 1,835,844 | |
Class G, 5.25% 11/15/44 (b)(d) | 1,000,000 | 887,522 | |
Series 2012-C7 Class D, 4.7397% 6/15/45 (b)(d)(e) | 620,000 | 248,193 | |
Series 2012-C8 Class E, 4.8574% 8/15/45 (b)(d) | 557,000 | 550,657 | |
Series 2013-C11: | |||
Class D, 4.2388% 3/15/45 (b)(d) | 65,000 | 64,083 | |
Class E, 4.2388% 3/15/45 (b)(d)(e) | 53,000 | 48,939 | |
Series 2013-C13 Class D, 4.1413% 5/15/45 (b)(d) | 45,000 | 44,073 | |
Series 2013-C16 Class D, 5.0011% 9/15/46 (b)(d) | 715,000 | 708,710 | |
Series 2013-UBS1 Class D, 5.0394% 3/15/46 (b)(d) | 910,000 | 937,621 | |
WP Glimcher Mall Trust Series 2015-WPG: | |||
Class PR1, 3.516% 6/5/35 (b)(d) | 1,168,000 | 1,015,127 | |
Class PR2, 3.516% 6/5/35 (b)(d) | 459,000 | 366,505 | |
TOTAL COMMERCIAL MORTGAGE SECURITIES | |||
(Cost $226,991,153) | 219,844,926 | ||
Bank Loan Obligations - 4.6% | |||
COMMUNICATION SERVICES - 0.5% | |||
Wireless Telecommunication Services - 0.5% | |||
SBA Senior Finance II, LLC Tranche B, term loan 3 month U.S. LIBOR + 1.750% 1.86% 4/11/25 (b)(c)(h) | 5,122,673 | 5,076,774 | |
CONSUMER DISCRETIONARY - 1.4% | |||
Hotels, Restaurants & Leisure - 1.4% | |||
Bally's Corp. Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.250% 3.75% 10/1/28 (b)(c)(h) | 2,560,000 | 2,556,442 | |
BRE/Everbright M6 Borrower LLC Tranche B 1LN, term loan 1 month U.S. LIBOR + 5.000% 5.75% 9/9/26 (b)(c)(h) | 1,371,563 | 1,374,415 | |
Caesars Resort Collection LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.750% 2.855% 12/22/24 (b)(c)(h) | 2,646,284 | 2,630,565 | |
Four Seasons Holdings, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.000% 2.105% 11/30/23 (b)(c)(h) | 2,485,031 | 2,475,712 | |
Hilton Grand Vacations Borrower LLC Tranche B 1LN, term loan 1 month U.S. LIBOR + 3.000% 3.5% 8/2/28 (b)(c)(h) | 668,325 | 666,795 | |
Playa Resorts Holding BV Tranche B, term loan 3 month U.S. LIBOR + 2.750% 3.75% 4/27/24 (b)(c)(h) | 3,847,211 | 3,777,692 | |
13,481,621 | |||
ENERGY - 0.1% | |||
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)(h) | 1,447,500 | 1,364,631 | |
FINANCIALS - 1.5% | |||
Diversified Financial Services - 1.5% | |||
Agellan Portfolio 9% 8/7/25 (b)(e)(h) | 1,217,000 | 1,244,383 | |
Mhp 2022-Mhil Mezz U.S. Secured Overnight Fin. Rate (SOFR) Indx + 5.000% 5.053% 1/9/24 (b)(c)(e)(h) | 7,800,000 | 7,800,000 | |
Veritas Multifamily Portfolio 1 month U.S. LIBOR + 8.500% 8.75% 11/15/22 (b)(c)(e)(h) | 5,305,035 | 5,305,035 | |
14,349,418 | |||
Thrifts & Mortgage Finance - 0.0% | |||
Walker & Dunlop, Inc. Tranche B 1LN, term loan U.S. Secured Overnight Fin. Rate (SOFR) Indx + 2.250% 2.75% 12/16/28 (b)(c)(h) | 65,000 | 64,838 | |
TOTAL FINANCIALS | 14,414,256 | ||
INDUSTRIALS - 0.1% | |||
Commercial Services & Supplies - 0.1% | |||
Pilot Travel Centers LLC Tranche B 1LN, term loan 1 month U.S. LIBOR + 2.000% 2.105% 8/4/28 (b)(c)(h) | 1,281,788 | 1,273,981 | |
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)(h) | 847,689 | 844,662 | |
REAL ESTATE - 0.9% | |||
Equity Real Estate Investment Trusts (REITs) - 0.3% | |||
iStar Financial, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.750% 2.8548% 6/28/23 (b)(c)(h) | 2,653,869 | 2,647,234 | |
Real Estate Management & Development - 0.6% | |||
DTZ U.S. Borrower LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.750% 2.855% 8/21/25 (b)(c)(h) | 4,664,822 | 4,645,649 | |
Lightstone Holdco LLC: | |||
Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.750% 4.75% 1/30/24 (b)(c)(h) | 1,033,369 | 879,934 | |
Tranche C 1LN, term loan 3 month U.S. LIBOR + 3.750% 4.75% 1/30/24 (b)(c)(h) | 58,284 | 49,630 | |
5,575,213 | |||
TOTAL REAL ESTATE | 8,222,447 | ||
TOTAL BANK LOAN OBLIGATIONS | |||
(Cost $44,970,987) | 44,678,372 | ||
Shares | Value | ||
Money Market Funds - 3.8% | |||
Fidelity Cash Central Fund 0.08% (i) | |||
(Cost $37,237,122) | 37,232,378 | 37,239,825 | |
TOTAL INVESTMENT IN SECURITIES - 101.9% | |||
(Cost $919,112,555) | 995,434,567 | ||
NET OTHER ASSETS (LIABILITIES) - (1.9)% | (18,184,638) | ||
NET ASSETS - 100% | $977,249,929 |
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 $299,732,879 or 30.7% of net assets.
(e) Level 3 security
(f) Non-income producing - Security is in default.
(g) Interest Only (IO) security represents the right to receive only 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) 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.
(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.
Affiliated Central Funds
Fiscal year to date information regarding the Fund's investments in Fidelity Central Funds, including the ownership percentage, is presented below.
Fund | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Realized Gain/Loss | Change in Unrealized appreciation (depreciation) | Value, end of period | % ownership, end of period |
Fidelity Cash Central Fund 0.08% | $44,412,278 | $121,123,121 | $128,295,574 | $11,521 | $-- | $-- | $37,239,825 | 0.1% |
Fidelity Securities Lending Cash Central Fund 0.08% | -- | 4,513,204 | 4,513,204 | 13,296 | -- | -- | -- | 0.0% |
Total | $44,412,278 | $125,636,325 | $132,808,778 | $24,817 | $-- | $-- | $37,239,825 |
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, 2022, 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 | $7,450,359 | $7,450,359 | $-- | $-- |
Financials | 227,106,884 | 217,231,190 | 9,875,694 | -- |
Information Technology | 541,044 | 541,044 | -- | -- |
Real Estate | 225,612,921 | 220,103,517 | 5,509,404 | -- |
Corporate Bonds | 205,230,100 | -- | 203,801,648 | 1,428,452 |
Asset-Backed Securities | 27,730,136 | -- | 27,730,127 | 9 |
Commercial Mortgage Securities | 219,844,926 | -- | 214,433,419 | 5,411,507 |
Bank Loan Obligations | 44,678,372 | -- | 30,328,954 | 14,349,418 |
Money Market Funds | 37,239,825 | 37,239,825 | -- | -- |
Total Investments in Securities: | $995,434,567 | $482,565,935 | $491,679,246 | $21,189,386 |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value:
Investments in Securities: | |
Bank Loan Obligations | |
Beginning Balance | $7,615,181 |
Net Realized Gain (Loss) on Investment Securities | -- |
Net Unrealized Gain (Loss) on Investment Securities | (712) |
Cost of Purchases | 7,800,000 |
Proceeds of Sales | (1,065,051) |
Amortization/Accretion | -- |
Transfers into Level 3 | -- |
Transfers out of Level 3 | -- |
Ending Balance | $14,349,418 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2022 | $1,813 |
Other Investments in Securities | |
Beginning Balance | $4,910,988 |
Net Realized Gain (Loss) on Investment Securities | (2,534,323) |
Net Unrealized Gain (Loss) on Investment Securities | 3,717,185 |
Cost of Purchases | -- |
Proceeds of Sales | (7,026,324) |
Amortization/Accretion | (342,238) |
Transfers into Level 3 | 9,441,144 |
Transfers out of Level 3 | (1,326,464) |
Ending Balance | $6,839,968 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at January 31, 2022 | $3,717,185 |
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
The composition of credit quality ratings as a percentage of Total Net Assets is as follows (Unaudited):
AAA,AA,A | 0.8% |
BBB | 3.8% |
BB | 11.0% |
B | 8.6% |
CCC,CC,C | 2.6% |
Not Rated | 24.1% |
Equities | 47.2% |
Short-Term Investments and Net Other Assets | 1.9% |
100.0% |
We have used ratings from Moody's Investors Service, Inc. Where Moody's® ratings are not available, we have used S&P® ratings. All ratings are as of the date indicated and do not reflect subsequent changes.
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
January 31, 2022 (Unaudited) | ||
Assets | ||
Investment in securities, at value — See accompanying schedule: Unaffiliated issuers (cost $881,875,433) | $958,194,742 | |
Fidelity Central Funds (cost $37,237,122) | 37,239,825 | |
Total Investment in Securities (cost $919,112,555) | $995,434,567 | |
Cash | 7,724,383 | |
Receivable for investments sold | 10,154,445 | |
Receivable for fund shares sold | 83,088 | |
Dividends receivable | 604,415 | |
Interest receivable | 4,245,759 | |
Distributions receivable from Fidelity Central Funds | 6,875 | |
Total assets | 1,018,253,532 | |
Liabilities | ||
Payable for investments purchased | $5,863,222 | |
Payable for fund shares redeemed | 35,138,554 | |
Other payables and accrued expenses | 1,827 | |
Total liabilities | 41,003,603 | |
Net Assets | $977,249,929 | |
Net Assets consist of: | ||
Paid in capital | $877,795,395 | |
Total accumulated earnings (loss) | 99,454,534 | |
Net Assets | $977,249,929 | |
Net Asset Value, offering price and redemption price per share ($977,249,929 ÷ 84,998,387 shares) | $11.50 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended January 31, 2022 (Unaudited) | ||
Investment Income | ||
Dividends | $10,400,206 | |
Interest | 12,923,704 | |
Income from Fidelity Central Funds (including $13,296 from security lending) | 24,817 | |
Total income | 23,348,727 | |
Expenses | ||
Custodian fees and expenses | $5,550 | |
Independent trustees' fees and expenses | 1,820 | |
Total expenses before reductions | 7,370 | |
Expense reductions | (146) | |
Total expenses after reductions | 7,224 | |
Net investment income (loss) | 23,341,503 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 21,392,477 | |
Foreign currency transactions | 11,323 | |
Total net realized gain (loss) | 21,403,800 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | (33,291,469) | |
Assets and liabilities in foreign currencies | 1 | |
Total change in net unrealized appreciation (depreciation) | (33,291,468) | |
Net gain (loss) | (11,887,668) | |
Net increase (decrease) in net assets resulting from operations | $11,453,835 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended January 31, 2022 (Unaudited) | Year ended July 31, 2021 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $23,341,503 | $42,370,443 |
Net realized gain (loss) | 21,403,800 | 11,329,717 |
Change in net unrealized appreciation (depreciation) | (33,291,468) | 166,451,074 |
Net increase (decrease) in net assets resulting from operations | 11,453,835 | 220,151,234 |
Distributions to shareholders | (35,372,619) | (48,286,218) |
Share transactions | ||
Proceeds from sales of shares | 27,915,641 | 98,771,090 |
Reinvestment of distributions | 35,372,618 | 48,286,218 |
Cost of shares redeemed | (109,321,153) | (206,774,956) |
Net increase (decrease) in net assets resulting from share transactions | (46,032,894) | (59,717,648) |
Total increase (decrease) in net assets | (69,951,678) | 112,147,368 |
Net Assets | ||
Beginning of period | 1,047,201,607 | 935,054,239 |
End of period | $977,249,929 | $1,047,201,607 |
Other Information | ||
Shares | ||
Sold | 2,386,902 | 9,213,332 |
Issued in reinvestment of distributions | 3,034,028 | 4,712,141 |
Redeemed | (9,396,028) | (19,063,555) |
Net increase (decrease) | (3,975,098) | (5,138,082) |
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, | |||||
2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $11.77 | $9.94 | $11.21 | $10.97 | $11.34 | $11.43 |
Income from Investment Operations | ||||||
Net investment income (loss)A,B | .26 | .45 | .56 | .61 | .59 | .55 |
Net realized and unrealized gain (loss) | (.13) | 1.90 | (1.16) | .42 | (.20) | .06 |
Total from investment operations | .13 | 2.35 | (.60) | 1.03 | .39 | .61 |
Distributions from net investment income | (.32) | (.45) | (.55) | (.62) | (.60) | (.52) |
Distributions from net realized gain | (.09) | (.07) | (.12) | (.17) | (.16) | (.18) |
Total distributions | (.40)C | (.52) | (.67) | (.79) | (.76) | (.70) |
Net asset value, end of period | $11.50 | $11.77 | $9.94 | $11.21 | $10.97 | $11.34 |
Total ReturnD,E | 1.12% | 24.48% | (5.68)% | 9.91% | 3.61% | 5.65% |
Ratios to Average Net AssetsB,F,G | ||||||
Expenses before reductions | - %H,I | - %I | - %I | - %I | - %I | .63% |
Expenses net of fee waivers, if any | - %H,I | - %I | - %I | - %I | - %I | .63% |
Expenses net of all reductions | - %H,I | - %I | - %I | - %I | - %I | .63% |
Net investment income (loss) | 4.52%H | 4.21% | 5.36% | 5.67% | 5.36% | 4.89% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $977,250 | $1,047,202 | $935,054 | $971,641 | $907,388 | $423,538 |
Portfolio turnover rateJ | 31%H | 23% | 25%K | 16% | 27% | 24% |
A Calculated based on average shares outstanding during the period.
B Net investment income (loss) is affected by the timing of the declaration of dividends by any underlying mutual funds or exchange-traded funds (ETFs). Net investment income (loss) of any such underlying funds is not included in the Fund's net investment income (loss) ratio.
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 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, 2022
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.
Funds may invest 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 Schedule of Investments lists any Fidelity Central Funds held as an investment as of period end, but does not include the underlying holdings of each Fidelity Central Fund. An investing fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
Based on its investment objective, each Fidelity Central Fund may invest or participate in various investment vehicles or strategies that are similar to those of the investing fund. These strategies are consistent with the investment objectives of the investing fund and may involve certain economic risks which may cause a decline in value of each of the Fidelity Central Funds and thus a decline in the value of the investing fund.
Fidelity Central Fund | Investment Manager | Investment Objective | Investment Practices | Expense Ratio(a) |
Fidelity Money Market Central Funds | Fidelity Management & Research Company LLC (FMR) | Each fund seeks to obtain a high level of current income consistent with the preservation of capital and liquidity. | Short-term Investments | Less than .005% |
(a) Expenses expressed as a percentage of average net assets and are as of each underlying Central Fund's most recent annual or semi-annual shareholder report.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds which contain the significant accounting policies (including investment valuation policies) of those funds, and are not covered by the Report of Independent Registered Public Accounting Firm, are available on the Securities and Exchange Commission 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 Fund's Schedule of Investments lists any underlying mutual funds or exchange-traded funds (ETFs) but does not include the underlying holdings of these funds. 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 – Unadjusted 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 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. 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) | Recovery value | Amount or Range/Weighted Average | Impact to Valuation from an Increase in Input(a) |
Corporate Bonds | $1,428,452 | Recovery value | Recovery value | 0.0% | Increase |
Indicative market price | Evaluated bid | $105.35 | Increase | ||
Asset-Backed Securities | $9 | Indicative market price | Evaluated bid | $0.00 | Increase |
Commercial Mortgage Securities | $5,411,507 | Indicative market price | Evaluated bid | $1.10 - $116.65 / $76.46 | Increase |
Bank Loan Obligations | $14,349,418 | Market approach | Transaction price | $100.00 | Increase |
Discounted cash flow | Yield | 8.7% - 9.2% / 9.1% | 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, 2022, 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. Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of a fund include an amount in addition to trade execution, which may be rebated back to a fund. Any such rebates are included in net realized gain (loss) on investments in the Statement of Operations. 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. Expenses included in the accompanying financial statements reflect the expenses of that fund and do not include any expenses associated with any underlying mutual funds or exchange-traded funds. Although not included in a fund's expenses, a fund indirectly bears its proportionate share of these expenses through the net asset value of each underlying mutual fund or exchange-traded fund. 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 equity-debt classifications, certain conversion ratios, 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 | $95,423,896 |
Gross unrealized depreciation | (19,218,437) |
Net unrealized appreciation (depreciation) | $76,205,459 |
Tax cost | $919,229,108 |
Restricted Securities (including Private Placements). Funds 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 held at period end is included at the end of the Schedule of Investments, if applicable.
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.
New Accounting Pronouncement. In March 2020, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU), ASU 2020-04, which provides optional, temporary relief with respect to the financial reporting of contracts subject to certain types of modifications due to the planned discontinuation of the London Interbank Offered Rate (LIBOR) and other IBOR-based reference rates. The temporary relief provided by ASU 2020-04 is effective for certain reference rate-related contract modifications that occur during the period March 12, 2020 through December 31, 2022. Management does not expect the adoption of ASU 2020-04 to have a material impact on the Fund's financial statements.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and in-kind transactions, as applicable, are noted in the table below.
Purchases ($) | Sales ($) | |
Fidelity Series Real Estate Income Fund | 154,783,593 | 184,693,059 |
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 | $886 |
Interfund Trades. Funds may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Any interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note. Interfund trades during the period are noted in the table below.
Purchases ($) | Sales ($) | Realized Gain (Loss) ($) | |
Fidelity Series Real Estate Income Fund | 506,356 | 3,698,108 | 871,430 |
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 commitment fees on the pro-rata portion of the line of credit are borne by the investment adviser. 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 Fees Paid to NFS | Security Lending Income From Securities Loaned to NFS | Value of Securities Loaned to NFS at Period End | |
Fidelity Series Real Estate Income Fund | $1,415 | $6,498 | $– |
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 $146.
9. Other.
A 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, a fund may also enter into contracts that provide general indemnifications. A fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against a 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.
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, 2021 to January 31, 2022).
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, 2021 | Ending Account Value January 31, 2022 | Expenses Paid During Period-B August 1, 2021 to January 31, 2022 | |
Fidelity Series Real Estate Income Fund | - %-C | |||
Actual | $1,000.00 | $1,011.20 | $--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
SRE-SANN-0422
1.924313.110
Fidelity® Series Small Cap Opportunities Fund
Semi-Annual Report
January 31, 2022
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Contents
Board Approval of Investment Advisory Contracts and Management Fees |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-800-544-8544 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. © 2022 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 COVID-19 emerged as a public health emergency that had a major influence on financial markets, primarily based on its impact on the global economy and corporate earnings. On March 11, 2020, the World Health Organization declared the COVID-19 outbreak a pandemic, citing sustained risk of further global spread. The pandemic prompted a number of measures to limit the spread of COVID-19, 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. To help stem the turmoil, the U.S. government took unprecedented action – in concert with the U.S. Federal Reserve and central banks around the world – to help support consumers, businesses, and the broader economy, and to limit disruption to the financial system.
In general, the overall impact of the pandemic lessened in 2021, amid a resilient economy and widespread distribution of three COVID-19 vaccines granted emergency use authorization from the U.S. Food and Drug Administration (FDA) early in the year. Still, the situation remains dynamic, and the extent and duration of its influence on financial markets and the economy is highly uncertain, due in part to a recent spike in cases based on highly contagious variants of the coronavirus.
Extreme events such as the COVID-19 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 continue to take extra steps to be responsive to customer needs. We encourage you to visit us online, where we offer ongoing updates, commentary, and analysis on the markets and our funds.
Investment Summary (Unaudited)
Top Ten Stocks as of January 31, 2022
% of fund's net assets | |
Atkore, Inc. | 1.3 |
Terreno Realty Corp. | 1.3 |
Jones Lang LaSalle, Inc. | 1.2 |
Denbury, Inc. | 1.1 |
BJ's Wholesale Club Holdings, Inc. | 1.1 |
LXP Industrial Trust (REIT) | 1.1 |
Synovus Financial Corp. | 1.0 |
Antero Resources Corp. | 1.0 |
Academy Sports & Outdoors, Inc. | 1.0 |
ASGN, Inc. | 1.0 |
11.1 |
Top Five Market Sectors as of January 31, 2022
% of fund's net assets | |
Financials | 16.0 |
Health Care | 15.7 |
Industrials | 15.7 |
Information Technology | 13.5 |
Consumer Discretionary | 12.6 |
Asset Allocation (% of fund's net assets)
As of January 31, 2022* | ||
Stocks and Equity Futures | 96.7% | |
Convertible Securities | 0.1% | |
Short-Term Investments and Net Other Assets (Liabilities) | 3.2% |
* Foreign investments - 10.7%
Schedule of Investments January 31, 2022 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 96.2% | |||
Shares | Value | ||
COMMUNICATION SERVICES - 1.7% | |||
Diversified Telecommunication Services - 0.1% | |||
Frontier Communications Parent, Inc.(a)(b) | 336,600 | $8,973,756 | |
Interactive Media & Services - 0.2% | |||
ZipRecruiter, Inc. (a) | 463,900 | 10,061,991 | |
Media - 1.4% | |||
Nexstar Broadcasting Group, Inc. Class A | 154,100 | 25,485,058 | |
TechTarget, Inc. (a) | 411,529 | 34,132,215 | |
Thryv Holdings, Inc. (a)(b) | 644,500 | 20,901,135 | |
80,518,408 | |||
TOTAL COMMUNICATION SERVICES | 99,554,155 | ||
CONSUMER DISCRETIONARY - 12.6% | |||
Auto Components - 1.9% | |||
Adient PLC (a) | 935,900 | 39,279,723 | |
Fox Factory Holding Corp. (a) | 232,779 | 30,975,902 | |
LCI Industries (b) | 165,500 | 20,384,635 | |
Patrick Industries, Inc. | 291,500 | 18,772,600 | |
109,412,860 | |||
Diversified Consumer Services - 0.1% | |||
Laureate Education, Inc. Class A | 537,814 | 6,803,347 | |
Hotels, Restaurants & Leisure - 2.8% | |||
Brinker International, Inc. (a) | 787,925 | 26,166,989 | |
Churchill Downs, Inc. | 210,800 | 44,331,240 | |
Everi Holdings, Inc. (a) | 745,300 | 14,734,581 | |
Hilton Grand Vacations, Inc. (a) | 481,200 | 23,511,432 | |
Jack in the Box, Inc. (b) | 169,000 | 15,387,450 | |
Lindblad Expeditions Holdings (a) | 393,250 | 6,634,128 | |
Marriott Vacations Worldwide Corp. | 98,050 | 15,921,359 | |
Ruth's Hospitality Group, Inc. | 697,250 | 13,965,918 | |
160,653,097 | |||
Household Durables - 1.9% | |||
M.D.C. Holdings, Inc. | 770,292 | 39,046,101 | |
Skyline Champion Corp. (a) | 520,098 | 35,023,399 | |
Tempur Sealy International, Inc. | 632,800 | 25,191,768 | |
Toll Brothers, Inc. | 247,225 | 14,578,858 | |
113,840,126 | |||
Leisure Products - 0.8% | |||
Acushnet Holdings Corp. | 613,900 | 28,669,130 | |
Clarus Corp. | 723,657 | 16,303,992 | |
44,973,122 | |||
Multiline Retail - 0.4% | |||
Nordstrom, Inc. (a) | 963,400 | 21,676,500 | |
Specialty Retail - 2.7% | |||
Academy Sports & Outdoors, Inc. (a) | 1,522,272 | 59,216,381 | |
American Eagle Outfitters, Inc. | 839,200 | 19,158,936 | |
Dick's Sporting Goods, Inc. (b) | 176,950 | 20,420,030 | |
Murphy U.S.A., Inc. | 142,791 | 28,081,278 | |
Rent-A-Center, Inc. | 453,009 | 19,094,329 | |
Williams-Sonoma, Inc. (b) | 70,000 | 11,237,800 | |
157,208,754 | |||
Textiles, Apparel & Luxury Goods - 2.0% | |||
Capri Holdings Ltd. (a) | 349,100 | 20,970,437 | |
Crocs, Inc. (a) | 485,400 | 49,811,748 | |
Deckers Outdoor Corp. (a) | 71,100 | 22,768,353 | |
G-III Apparel Group Ltd. (a) | 312,750 | 8,497,418 | |
Kontoor Brands, Inc. | 332,300 | 16,379,067 | |
118,427,023 | |||
TOTAL CONSUMER DISCRETIONARY | 732,994,829 | ||
CONSUMER STAPLES - 3.3% | |||
Beverages - 0.5% | |||
Primo Water Corp. | 1,580,100 | 26,387,670 | |
Food & Staples Retailing - 1.1% | |||
BJ's Wholesale Club Holdings, Inc. (a) | 1,062,617 | 65,319,067 | |
Food Products - 1.3% | |||
Darling Ingredients, Inc. (a) | 329,150 | 20,989,896 | |
Nomad Foods Ltd. (a) | 2,084,578 | 53,782,112 | |
74,772,008 | |||
Personal Products - 0.4% | |||
BellRing Brands, Inc. Class A (a)(b) | 981,483 | 23,908,926 | |
TOTAL CONSUMER STAPLES | 190,387,671 | ||
ENERGY - 5.8% | |||
Energy Equipment & Services - 0.6% | |||
Liberty Oilfield Services, Inc. Class A (a) | 2,968,054 | 35,913,453 | |
Oil, Gas & Consumable Fuels - 5.2% | |||
Antero Resources Corp. (a) | 3,042,400 | 59,418,072 | |
Denbury, Inc. (a) | 881,500 | 66,235,910 | |
Enviva, Inc. | 421,660 | 29,507,767 | |
HollyFrontier Corp. | 1,506,190 | 52,957,640 | |
Magnolia Oil & Gas Corp. Class A | 1,333,800 | 28,850,094 | |
Northern Oil & Gas, Inc. | 2,109,446 | 49,614,170 | |
Viper Energy Partners LP | 625,200 | 16,905,408 | |
303,489,061 | |||
TOTAL ENERGY | 339,402,514 | ||
FINANCIALS - 16.0% | |||
Banks - 9.5% | |||
Ameris Bancorp | 473,550 | 23,350,751 | |
Associated Banc-Corp. | 1,163,032 | 27,796,465 | |
East West Bancorp, Inc. | 254,100 | 21,938,994 | |
First Bancorp, Puerto Rico (b) | 1,721,100 | 25,042,005 | |
First Hawaiian, Inc. | 776,742 | 22,020,636 | |
Glacier Bancorp, Inc. (b) | 530,750 | 27,561,848 | |
Hilltop Holdings, Inc. | 1,234,900 | 40,788,747 | |
Meta Financial Group, Inc. | 838,402 | 49,851,383 | |
Preferred Bank, Los Angeles | 316,250 | 24,686,475 | |
ServisFirst Bancshares, Inc. | 412,662 | 35,022,624 | |
Signature Bank | 150,000 | 45,694,500 | |
Sterling Bancorp | 2,093,400 | 55,035,486 | |
Synovus Financial Corp. | 1,212,395 | 60,328,775 | |
Trico Bancshares | 674,808 | 29,333,904 | |
United Community Bank, Inc. | 816,000 | 28,878,240 | |
Western Alliance Bancorp. | 386,200 | 38,307,178 | |
555,638,011 | |||
Capital Markets - 2.8% | |||
Focus Financial Partners, Inc. Class A (a) | 640,659 | 32,263,587 | |
Hamilton Lane, Inc. Class A | 335,883 | 30,383,976 | |
Houlihan Lokey | 178,650 | 18,986,922 | |
Lazard Ltd. Class A | 825,536 | 36,026,391 | |
LPL Financial | 163,550 | 28,182,936 | |
TMX Group Ltd. | 152,527 | 15,516,081 | |
161,359,893 | |||
Consumer Finance - 0.6% | |||
FirstCash Holdings, Inc. | 321,024 | 22,375,373 | |
Navient Corp. | 760,524 | 13,255,933 | |
35,631,306 | |||
Diversified Financial Services - 0.6% | |||
Cannae Holdings, Inc. (a) | 1,214,670 | 36,282,193 | |
Insurance - 1.1% | |||
Assurant, Inc. | 134,980 | 20,585,800 | |
Primerica, Inc. | 277,700 | 42,860,218 | |
63,446,018 | |||
Thrifts & Mortgage Finance - 1.4% | |||
Essent Group Ltd. | 1,161,100 | 52,992,604 | |
Walker & Dunlop, Inc. | 221,100 | 29,275,851 | |
82,268,455 | |||
TOTAL FINANCIALS | 934,625,876 | ||
HEALTH CARE - 15.6% | |||
Biotechnology - 7.9% | |||
ADC Therapeutics SA (a) | 427,710 | 6,796,312 | |
Agios Pharmaceuticals, Inc. (a) | 368,745 | 11,390,533 | |
ALX Oncology Holdings, Inc. (a) | 334,900 | 5,358,400 | |
Arcutis Biotherapeutics, Inc. (a) | 616,800 | 9,319,848 | |
Argenx SE ADR (a) | 54,800 | 14,755,448 | |
Ascendis Pharma A/S sponsored ADR (a) | 131,448 | 15,989,335 | |
Aurinia Pharmaceuticals, Inc. (a)(b) | 464,300 | 7,735,238 | |
Blueprint Medicines Corp. (a) | 247,991 | 19,120,106 | |
Celldex Therapeutics, Inc. (a) | 363,700 | 11,278,337 | |
Century Therapeutics, Inc. | 235,900 | 3,073,777 | |
Cerevel Therapeutics Holdings (a) | 606,800 | 15,801,072 | |
ChemoCentryx, Inc. (a) | 260,300 | 6,999,467 | |
Cyteir Therapeutics, Inc. | 609,200 | 3,703,936 | |
Cytokinetics, Inc. (a) | 713,100 | 23,667,789 | |
Erasca, Inc. | 1,198,300 | 14,199,855 | |
Exelixis, Inc. (a) | 756,400 | 13,690,840 | |
Global Blood Therapeutics, Inc. (a)(b) | 811,456 | 23,410,506 | |
Graphite Bio, Inc. | 983,300 | 9,184,022 | |
Imago BioSciences, Inc. | 459,100 | 9,283,002 | |
Instil Bio, Inc. (a)(b) | 1,164,964 | 13,525,232 | |
Janux Therapeutics, Inc. (b) | 600,691 | 9,148,524 | |
Keros Therapeutics, Inc. (a) | 347,432 | 16,110,422 | |
Mirati Therapeutics, Inc. (a) | 155,600 | 18,563,080 | |
Monte Rosa Therapeutics, Inc. | 281,100 | 3,558,726 | |
Morphic Holding, Inc. (a) | 479,962 | 20,364,788 | |
Protagonist Therapeutics, Inc. (a) | 514,440 | 15,067,948 | |
PTC Therapeutics, Inc. (a) | 389,000 | 15,645,580 | |
Relay Therapeutics, Inc. (a) | 821,500 | 18,179,795 | |
Tango Therapeutics, Inc. (a) | 905,500 | 7,723,915 | |
Tenaya Therapeutics, Inc. (a) | 565,400 | 6,739,568 | |
TG Therapeutics, Inc. (a) | 965,400 | 11,169,678 | |
Tyra Biosciences, Inc. | 708,718 | 9,291,293 | |
Vaxcyte, Inc. (a) | 611,672 | 11,646,235 | |
Verve Therapeutics, Inc. (b) | 375,300 | 10,816,146 | |
Vir Biotechnology, Inc. (a) | 111,000�� | 3,810,630 | |
Xenon Pharmaceuticals, Inc. (a) | 757,630 | 20,546,926 | |
Zentalis Pharmaceuticals, Inc. (a) | 472,136 | 26,949,523 | |
463,615,832 | |||
Health Care Equipment & Supplies - 2.2% | |||
Envista Holdings Corp. (a) | 1,110,800 | 48,030,992 | |
Figs, Inc. Class A (a)(b) | 1,466,200 | 32,960,176 | |
Globus Medical, Inc. (a) | 341,800 | 22,808,314 | |
Integer Holdings Corp. (a) | 297,972 | 23,363,985 | |
127,163,467 | |||
Health Care Providers & Services - 2.8% | |||
Acadia Healthcare Co., Inc. (a) | 459,800 | 24,208,470 | |
agilon health, Inc. (a) | 593,000 | 9,831,940 | |
Molina Healthcare, Inc. (a) | 119,100 | 34,596,168 | |
Owens & Minor, Inc. | 867,940 | 36,531,595 | |
R1 RCM, Inc. (a) | 1,320,900 | 31,411,002 | |
Surgery Partners, Inc. (a) | 492,900 | 21,032,043 | |
The Oncology Institute, Inc. (c) | 1,126,158 | 6,911,232 | |
164,522,450 | |||
Health Care Technology - 0.9% | |||
Evolent Health, Inc. (a) | 726,860 | 17,233,851 | |
Inspire Medical Systems, Inc. (a) | 100,743 | 22,293,418 | |
Omnicell, Inc. (a) | 73,500 | 11,035,290 | |
50,562,559 | |||
Life Sciences Tools & Services - 0.8% | |||
Olink Holding AB ADR (a) | 590,195 | 9,549,355 | |
Syneos Health, Inc. (a) | 415,000 | 37,582,400 | |
47,131,755 | |||
Pharmaceuticals - 1.0% | |||
Arvinas Holding Co. LLC (a) | 402,900 | 28,803,321 | |
Fulcrum Therapeutics, Inc. (a) | 737,000 | 8,961,920 | |
Ikena Oncology, Inc. (a)(b) | 836,000 | 8,134,280 | |
Ikena Oncology, Inc. (d) | 568,646 | 5,532,926 | |
Theseus Pharmaceuticals, Inc. | 562,400 | 5,190,952 | |
56,623,399 | |||
TOTAL HEALTH CARE | 909,619,462 | ||
INDUSTRIALS - 15.7% | |||
Aerospace & Defense - 0.1% | |||
Kratos Defense & Security Solutions, Inc. (a) | 481,500 | 8,069,940 | |
Building Products - 2.3% | |||
Builders FirstSource, Inc. (a) | 774,749 | 52,675,185 | |
Jeld-Wen Holding, Inc. (a) | 688,500 | 16,248,600 | |
Masonite International Corp. (a) | 251,034 | 24,912,614 | |
Simpson Manufacturing Co. Ltd. | 348,399 | 39,295,923 | |
133,132,322 | |||
Commercial Services & Supplies - 0.5% | |||
Casella Waste Systems, Inc. Class A (a) | 424,032 | 32,217,951 | |
Construction & Engineering - 2.9% | |||
Comfort Systems U.S.A., Inc. (b) | 471,772 | 42,355,690 | |
Construction Partners, Inc. Class A (a) | 1,489,058 | 39,072,882 | |
Dycom Industries, Inc. (a)(b) | 263,510 | 22,211,258 | |
EMCOR Group, Inc. | 173,060 | 20,630,483 | |
IES Holdings, Inc. (a) | 542,227 | 26,731,791 | |
NV5 Global, Inc. (a) | 192,495 | 20,133,052 | |
171,135,156 | |||
Electrical Equipment - 1.7% | |||
Atkore, Inc. (a) | 699,624 | 75,405,469 | |
Regal Rexnord Corp. | 106,700 | 16,909,816 | |
Thermon Group Holdings, Inc. (a) | 303,446 | 5,204,099 | |
97,519,384 | |||
Machinery - 3.1% | |||
Federal Signal Corp. | 943,424 | 36,812,404 | |
ITT, Inc. | 394,323 | 36,246,170 | |
Kadant, Inc. (b) | 100,356 | 20,972,397 | |
Oshkosh Corp. | 193,900 | 22,067,759 | |
SPX Corp. (a) | 799,344 | 41,709,770 | |
SPX Flow, Inc. | 114,353 | 9,857,229 | |
Timken Co. | 169,400 | 11,315,920 | |
178,981,649 | |||
Professional Services - 2.9% | |||
Alight, Inc. Class A (a)(b) | 3,899,500 | 37,669,170 | |
ASGN, Inc. (a) | 508,292 | 58,387,502 | |
CACI International, Inc. Class A (a) | 81,100 | 20,069,006 | |
CRA International, Inc. | 156,974 | 13,352,208 | |
TriNet Group, Inc. (a) | 476,483 | 40,596,352 | |
170,074,238 | |||
Trading Companies & Distributors - 2.2% | |||
Beacon Roofing Supply, Inc. (a) | 569,357 | 31,240,619 | |
Finning International, Inc. | 613,850 | 17,114,301 | |
Rush Enterprises, Inc. Class A | 977,701 | 51,642,167 | |
Univar, Inc. (a) | 981,954 | 26,021,781 | |
126,018,868 | |||
TOTAL INDUSTRIALS | 917,149,508 | ||
INFORMATION TECHNOLOGY - 13.5% | |||
Communications Equipment - 0.2% | |||
Calix, Inc. (a) | 230,550 | 11,592,054 | |
Casa Systems, Inc. (a) | 520,800 | 2,307,144 | |
13,899,198 | |||
Electronic Equipment & Components - 2.4% | |||
Advanced Energy Industries, Inc. | 540,799 | 46,606,058 | |
Fabrinet (a) | 345,356 | 39,080,485 | |
FARO Technologies, Inc. (a) | 251,945 | 13,683,133 | |
Insight Enterprises, Inc. (a) | 334,100 | 31,455,515 | |
Napco Security Technologies, Inc. | 556,200 | 11,563,398 | |
142,388,589 | |||
IT Services - 3.7% | |||
Cyxtera Technologies, Inc. Class A (a) | 881,894 | 10,556,271 | |
Endava PLC ADR (a) | 140,703 | 17,112,299 | |
ExlService Holdings, Inc. (a) | 472,976 | 57,003,068 | |
Perficient, Inc. (a) | 535,041 | 56,082,998 | |
Verra Mobility Corp. (a) | 1,120,750 | 17,752,680 | |
WNS Holdings Ltd. sponsored ADR (a) | 643,790 | 54,181,366 | |
212,688,682 | |||
Semiconductors & Semiconductor Equipment - 3.1% | |||
CMC Materials, Inc. | 153,600 | 27,783,168 | |
FormFactor, Inc. (a) | 432,400 | 18,480,776 | |
Onto Innovation, Inc. (a) | 326,792 | 29,914,540 | |
Semtech Corp. (a) | 427,600 | 30,402,360 | |
SiTime Corp. (a) | 167,175 | 38,966,821 | |
Synaptics, Inc. (a) | 156,200 | 32,856,670 | |
178,404,335 | |||
Software - 4.1% | |||
Amplitude, Inc. (a) | 237,066 | 9,319,064 | |
Digital Turbine, Inc. (a)(b) | 260,200 | 11,487,830 | |
Manhattan Associates, Inc. (a) | 270,400 | 36,198,448 | |
NCR Corp. (a) | 369,200 | 14,051,752 | |
Rapid7, Inc. (a) | 302,877 | 29,176,141 | |
Sprout Social, Inc. (a) | 324,413 | 22,335,835 | |
SPS Commerce, Inc. (a) | 185,150 | 22,930,828 | |
Tenable Holdings, Inc. (a) | 788,100 | 40,508,340 | |
Workiva, Inc. (a)(b) | 354,385 | 41,916,658 | |
Zuora, Inc. (a)(b) | 808,901 | 13,452,024 | |
241,376,920 | |||
TOTAL INFORMATION TECHNOLOGY | 788,757,724 | ||
MATERIALS - 4.9% | |||
Chemicals - 2.3% | |||
Element Solutions, Inc. | 1,174,817 | 26,362,893 | |
Huntsman Corp. | 1,407,456 | 50,429,148 | |
Trinseo PLC | 412,000 | 22,058,480 | |
Tronox Holdings PLC | 1,494,347 | 33,921,677 | |
132,772,198 | |||
Construction Materials - 0.8% | |||
Eagle Materials, Inc. | 333,700 | 48,670,145 | |
Containers & Packaging - 0.4% | |||
O-I Glass, Inc. (a) | 1,787,800 | 23,795,618 | |
Metals & Mining - 1.0% | |||
Commercial Metals Co. | 1,658,730 | 55,467,931 | |
Paper & Forest Products - 0.4% | |||
Louisiana-Pacific Corp. | 341,500 | 22,689,260 | |
TOTAL MATERIALS | 283,395,152 | ||
REAL ESTATE - 5.5% | |||
Equity Real Estate Investment Trusts (REITs) - 4.0% | |||
EastGroup Properties, Inc. | 208,300 | 41,641,253 | |
Equity Commonwealth (a) | 1,027,900 | 26,766,516 | |
Essential Properties Realty Trust, Inc. | 955,200 | 25,360,560 | |
LXP Industrial Trust (REIT) | 4,224,899 | 62,908,746 | |
Terreno Realty Corp. | 1,007,000 | 75,293,390 | |
231,970,465 | |||
Real Estate Management & Development - 1.5% | |||
Cushman & Wakefield PLC (a) | 1,028,200 | 21,581,918 | |
Jones Lang LaSalle, Inc. (a) | 272,200 | 68,265,038 | |
89,846,956 | |||
TOTAL REAL ESTATE | 321,817,421 | ||
UTILITIES - 1.6% | |||
Electric Utilities - 0.4% | |||
IDACORP, Inc. | 173,500 | 19,123,170 | |
Gas Utilities - 0.9% | |||
Brookfield Infrastructure Corp. A Shares | 806,300 | 53,473,816 | |
Independent Power and Renewable Electricity Producers - 0.3% | |||
Clearway Energy, Inc. Class C | 547,475 | 18,438,958 | |
TOTAL UTILITIES | 91,035,944 | ||
TOTAL COMMON STOCKS | |||
(Cost $4,447,330,569) | 5,608,740,256 | ||
Convertible Preferred Stocks - 0.1% | |||
HEALTH CARE - 0.1% | |||
Biotechnology - 0.0% | |||
ValenzaBio, Inc. Series A (c)(e) | 383,419 | 2,476,887 | |
Pharmaceuticals - 0.1% | |||
Aristea Therapeutics, Inc. Series B (a)(c)(e) | 733,075 | 6,854,251 | |
TOTAL CONVERTIBLE PREFERRED STOCKS | |||
(Cost $7,454,550) | 9,331,138 | ||
Principal Amount | Value | ||
U.S. Treasury Obligations - 0.0% | |||
U.S. Treasury Bills, yield at date of purchase 0.04% to 0.19% 3/3/22 to 4/28/22 (f) | |||
(Cost $909,649) | 910,000 | 909,659 | |
Shares | Value | ||
Money Market Funds - 2.7% | |||
Fidelity Cash Central Fund 0.08% (g) | 52,058,795 | $52,069,207 | |
Fidelity Securities Lending Cash Central Fund 0.08% (g)(h) | 104,739,408 | 104,749,882 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $156,818,736) | 156,819,089 | ||
TOTAL INVESTMENT IN SECURITIES - 99.0% | |||
(Cost $4,612,513,504) | 5,775,800,142 | ||
NET OTHER ASSETS (LIABILITIES) - 1.0% | 56,142,580 | ||
NET ASSETS - 100% | $5,831,942,722 |
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) | 277 | March 2022 | $28,037,940 | $(1,035,124) | $(1,035,124) |
The notional amount of futures purchased as a percentage of Net Assets is 0.5%
For the period, the average monthly notional amount at value for futures contracts in the aggregate was $27,630,632.
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 $16,242,370 or 0.3% of net assets.
(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 $5,532,926 or 0.1% of net assets.
(e) Level 3 security
(f) Security or a portion of the security was pledged to cover margin requirements for futures contracts. At period end, the value of securities pledged amounted to $909,659.
(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 |
Aristea Therapeutics, Inc. Series B | 10/6/20 - 7/27/21 | $4,041,955 |
The Oncology Institute, Inc. | 6/28/21 | $11,261,580 |
ValenzaBio, Inc. Series A | 3/25/21 | $3,412,594 |
Affiliated Central Funds
Fiscal year to date information regarding the Fund's investments in Fidelity Central Funds, including the ownership percentage, is presented below.
Fund | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Realized Gain/Loss | Change in Unrealized appreciation (depreciation) | Value, end of period | % ownership, end of period |
Fidelity Cash Central Fund 0.08% | $102,671,891 | $975,496,862 | $1,026,099,546 | $23,029 | $-- | $-- | $52,069,207 | 0.1% |
Fidelity Securities Lending Cash Central Fund 0.08% | 72,073,537 | 726,067,629 | 693,391,284 | 273,005 | -- | -- | 104,749,882 | 0.3% |
Total | $174,745,428 | $1,701,564,491 | $1,719,490,830 | $296,034 | $-- | $-- | $156,819,089 |
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, 2022, 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 | $99,554,155 | $99,554,155 | $-- | $-- |
Consumer Discretionary | 732,994,829 | 732,994,829 | -- | -- |
Consumer Staples | 190,387,671 | 190,387,671 | -- | -- |
Energy | 339,402,514 | 339,402,514 | -- | -- |
Financials | 934,625,876 | 934,625,876 | -- | -- |
Health Care | 918,950,600 | 902,708,230 | 6,911,232 | 9,331,138 |
Industrials | 917,149,508 | 917,149,508 | -- | -- |
Information Technology | 788,757,724 | 788,757,724 | -- | -- |
Materials | 283,395,152 | 283,395,152 | -- | -- |
Real Estate | 321,817,421 | 321,817,421 | -- | -- |
Utilities | 91,035,944 | 91,035,944 | -- | -- |
U.S. Government and Government Agency Obligations | 909,659 | -- | 909,659 | -- |
Money Market Funds | 156,819,089 | 156,819,089 | -- | -- |
Total Investments in Securities: | $5,775,800,142 | $5,758,648,113 | $7,820,891 | $9,331,138 |
Derivative Instruments: | ||||
Liabilities | ||||
Futures Contracts | $(1,035,124) | $(1,035,124) | $-- | $-- |
Total Liabilities | $(1,035,124) | $(1,035,124) | $-- | $-- |
Total Derivative Instruments: | $(1,035,124) | $(1,035,124) | $-- | $-- |
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, 2022. 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 | $(1,035,124) |
Total Equity Risk | 0 | (1,035,124) |
Total Value of Derivatives | $0 | $(1,035,124) |
(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).
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 | 89.3% |
Canada | 2.8% |
Bermuda | 1.5% |
British Virgin Islands | 1.3% |
United Kingdom | 1.2% |
Ireland | 1.1% |
Others (Individually Less Than 1%) | 2.8% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
January 31, 2022 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $105,767,430) — See accompanying schedule: Unaffiliated issuers (cost $4,455,694,768) | $5,618,981,053 | |
Fidelity Central Funds (cost $156,818,736) | 156,819,089 | |
Total Investment in Securities (cost $4,612,513,504) | $5,775,800,142 | |
Cash | 39,514 | |
Receivable for investments sold | 219,754 | |
Receivable for fund shares sold | 282,099,713 | |
Dividends receivable | 1,027,980 | |
Distributions receivable from Fidelity Central Funds | 36,572 | |
Receivable for daily variation margin on futures contracts | 514,149 | |
Other receivables | 55,436 | |
Total assets | 6,059,793,260 | |
Liabilities | ||
Payable for investments purchased | $123,010,880 | |
Payable for fund shares redeemed | 57,021 | |
Other payables and accrued expenses | 43,192 | |
Collateral on securities loaned | 104,739,445 | |
Total liabilities | 227,850,538 | |
Net Assets | $5,831,942,722 | |
Net Assets consist of: | ||
Paid in capital | $4,659,706,301 | |
Total accumulated earnings (loss) | 1,172,236,421 | |
Net Assets | $5,831,942,722 | |
Net Asset Value, offering price and redemption price per share ($5,831,942,722 ÷ 430,768,086 shares) | $13.54 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended January 31, 2022 (Unaudited) | ||
Investment Income | ||
Dividends | $24,662,966 | |
Interest | 773 | |
Income from Fidelity Central Funds (including $273,005 from security lending) | 296,034 | |
Total income | 24,959,773 | |
Expenses | ||
Custodian fees and expenses | $45,234 | |
Independent trustees' fees and expenses | 10,577 | |
Interest | 401 | |
Total expenses before reductions | 56,212 | |
Expense reductions | (168) | |
Total expenses after reductions | 56,044 | |
Net investment income (loss) | 24,903,729 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 119,231,189 | |
Foreign currency transactions | 2,143 | |
Futures contracts | (871,686) | |
Total net realized gain (loss) | 118,361,646 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | (140,215,070) | |
Unfunded commitments | 1,197,106 | |
Assets and liabilities in foreign currencies | (28,997) | |
Futures contracts | (1,544,635) | |
Total change in net unrealized appreciation (depreciation) | (140,591,596) | |
Net gain (loss) | (22,229,950) | |
Net increase (decrease) in net assets resulting from operations | $2,673,779 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended January 31, 2022 (Unaudited) | Year ended July 31, 2021 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $24,903,729 | $43,799,726 |
Net realized gain (loss) | 118,361,646 | 1,514,536,306 |
Change in net unrealized appreciation (depreciation) | (140,591,596) | 546,729,663 |
Net increase (decrease) in net assets resulting from operations | 2,673,779 | 2,105,065,695 |
Distributions to shareholders | (1,511,145,723) | (118,324,848) |
Share transactions | ||
Proceeds from sales of shares | 560,690,222 | 636,699,749 |
Reinvestment of distributions | 1,511,145,723 | 118,324,848 |
Cost of shares redeemed | (743,835,353) | (1,660,543,500) |
Net increase (decrease) in net assets resulting from share transactions | 1,328,000,592 | (905,518,903) |
Total increase (decrease) in net assets | (180,471,352) | 1,081,221,944 |
Net Assets | ||
Beginning of period | 6,012,414,074 | 4,931,192,130 |
End of period | $5,831,942,722 | $6,012,414,074 |
Other Information | ||
Shares | ||
Sold | 40,019,876 | 37,014,662 |
Issued in reinvestment of distributions | 106,014,574 | 8,102,705 |
Redeemed | (47,802,908) | (102,071,306) |
Net increase (decrease) | 98,231,542 | (56,953,939) |
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, | |||||
2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $18.08 | $12.66 | $14.04 | $15.46 | $14.42 | $12.94 |
Income from Investment Operations | ||||||
Net investment income (loss)A,B | .06 | .12 | .15 | .15 | .16 | .06 |
Net realized and unrealized gain (loss) | –C | 5.62 | (.60) | .12 | 2.44 | 1.52 |
Total from investment operations | .06 | 5.74 | (.45) | .27 | 2.60 | 1.58 |
Distributions from net investment income | (.12) | (.14) | (.16) | (.14) | (.12) | (.07) |
Distributions from net realized gain | (4.48) | (.19) | (.77) | (1.55) | (1.45) | (.03) |
Total distributions | (4.60) | (.32)D | (.93) | (1.69) | (1.56)D | (.10) |
Net asset value, end of period | $13.54 | $18.08 | $12.66 | $14.04 | $15.46 | $14.42 |
Total ReturnE,F | (.49)% | 45.98% | (3.44)% | 1.98% | 19.84% | 12.22% |
Ratios to Average Net AssetsB,G,H | ||||||
Expenses before reductions | - %I,J | - %J | - %J | - %J | - %J | .66% |
Expenses net of fee waivers, if any | - %I,J | - %J | - %J | - %J | - %J | .66% |
Expenses net of all reductions | - %I,J | - %J | - %J | - %J | - %J | .65% |
Net investment income (loss) | .83%I | .77% | 1.17% | 1.13% | 1.10% | .42% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $5,831,943 | $6,012,414 | $4,931,192 | $5,667,458 | $5,997,330 | $2,509,347 |
Portfolio turnover rateK | 33%I | 96% | 61%L | 59% | 68% | 58% |
A Calculated based on average shares outstanding during the period.
B Net investment income (loss) is affected by the timing of the declaration of dividends by any underlying mutual funds or exchange-traded funds (ETFs). Net investment income (loss) of any such underlying funds is not included in the Fund's net investment income (loss) ratio.
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 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 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.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended January 31, 2022
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.
Funds may invest 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 Schedule of Investments lists any Fidelity Central Funds held as an investment as of period end, but does not include the underlying holdings of each Fidelity Central Fund. An investing fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
Based on its investment objective, each Fidelity Central Fund may invest or participate in various investment vehicles or strategies that are similar to those of the investing fund. These strategies are consistent with the investment objectives of the investing fund and may involve certain economic risks which may cause a decline in value of each of the Fidelity Central Funds and thus a decline in the value of the investing fund.
Fidelity Central Fund | Investment Manager | Investment Objective | Investment Practices | Expense Ratio(a) |
Fidelity Money Market Central Funds | Fidelity Management & Research Company LLC (FMR) | Each fund seeks to obtain a high level of current income consistent with the preservation of capital and liquidity. | Short-term Investments | Less than .005% |
(a) Expenses expressed as a percentage of average net assets and are as of each underlying Central Fund's most recent annual or semi-annual shareholder report.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds which contain the significant accounting policies (including investment valuation policies) of those funds, and are not covered by the Report of Independent Registered Public Accounting Firm, are available on the Securities and Exchange Commission 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 Fund's Schedule of Investments lists any underlying mutual funds or exchange-traded funds (ETFs) but does not include the underlying holdings of these funds. 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 – Unadjusted 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, 2022 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. Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of a fund include an amount in addition to trade execution, which may be rebated back to a fund. Any such rebates are included in net realized gain (loss) on investments in the Statement of Operations. 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. Funds may file withholding tax reclaims in certain jurisdictions to recover a portion of amounts previously withheld. Any withholding tax reclaims income is included in the Statement of Operations in dividends. Any receivables for withholding tax reclaims are included in the Statement of Assets and Liabilities in dividends receivable.
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. Expenses included in the accompanying financial statements reflect the expenses of that fund and do not include any expenses associated with any underlying mutual funds or exchange-traded funds. Although not included in a fund's expenses, a fund indirectly bears its proportionate share of these expenses through the net asset value of each underlying mutual fund or exchange-traded fund. 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, partnerships, passive foreign investment companies (PFIC), 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 | $1,449,838,644 |
Gross unrealized depreciation | (297,466,937) |
Net unrealized appreciation (depreciation) | $1,152,371,707 |
Tax cost | $4,622,393,311 |
Restricted Securities (including Private Placements). Funds 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 held at period end is included at the end of the Schedule of Investments, if applicable.
Special Purpose Acquisition Companies. Funds may invest in stock, warrants, and other securities of special purpose acquisition companies (SPACs) or similar special purpose entities. A SPAC is a publicly traded company that raises investment capital via an initial public offering (IPO) for the purpose of acquiring the equity securities of one or more existing companies via merger, business combination, acquisition or other similar transactions within a designated time frame.
Private Investment in Public Equity. Funds may acquire equity securities of an issuer through a private investment in a public equity (PIPE) transaction, including through commitments to purchase securities on a when-issued basis. A PIPE typically involves the purchase of securities directly from a publicly traded company in a private placement transaction. Securities purchased through PIPE transactions will be restricted from trading and considered illiquid until a resale registration statement for the shares is filed and declared effective.
At the current and/or prior period end, the Fund had commitments to purchase when-issued securities through PIPE transactions with SPACs. The commitments are contingent upon the SPACs acquiring the securities of target companies. Unrealized appreciation (depreciation) on any commitments outstanding at period end is separately presented in the Statements of Assets and Liabilities as Unrealized appreciation (depreciation) on unfunded commitments, and any change in unrealized appreciation (depreciation) on unfunded commitments during the period is separately presented in the Statement of Operations, as 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. 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. Securities deposited to meet initial margin requirements are identified in the Schedule of Investments.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, U.S. government securities and in-kind transactions, as applicable, are noted in the table below.
Purchases ($) | Sales ($) | |
Fidelity Series Small Cap Opportunities Fund | 961,101,638 | 1,234,790,704 |
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 | $36,504 |
Interfund Lending Program. Pursuant to an Exemptive Order issued by the Securities and Exchange Commission (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 | $23,289 | .31% | $401 |
Interfund Trades. Funds may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Any interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note. Interfund trades during the period are noted in the table below.
Purchases ($) | Sales ($) | Realized Gain (Loss) ($) | |
Fidelity Series Small Cap Opportunities Fund | 64,781,865 | 68,385,048 | (1,523,027) |
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 commitment fees on the pro-rata portion of the line of credit are borne by the investment adviser. 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 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 | $28,054 | $5,812 | $– |
9. 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 $168.
10. Other.
A 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, a fund may also enter into contracts that provide general indemnifications. A fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against a 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, 2021 to January 31, 2022).
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, 2021 | Ending Account Value January 31, 2022 | Expenses Paid During Period-B August 1, 2021 to January 31, 2022 | |
Fidelity Series Small Cap Opportunities Fund | - %-C | |||
Actual | $1,000.00 | $995.10 | $--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 and Management Fees
Fidelity Series Small Cap Opportunities Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract with Fidelity Management & Research Company LLC (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund. FMR and the sub-advisers are referred to herein as the Investment Advisers. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.The Board meets regularly and, at each of its meetings, covers an extensive agenda of topics and materials and considers factors that are relevant to its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. The Board has established various standing committees (Committees), each composed of and chaired by Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of the fund's Advisory Contracts. The Board also meets as needed to review matters specifically related to the Board's annual consideration of the renewal of the Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through joint ad hoc committees to discuss certain matters relevant to all of the Fidelity funds.At its May 2021 meeting, the Board unanimously determined to renew the fund's Advisory Contracts. In considering whether to renew the Advisory Contracts for the fund, the Board considered all factors it believed relevant and reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts was in the best interests of the fund and its shareholders and the fact that no fee is payable under the management contract was fair and reasonable.Nature, Extent, and Quality of Services Provided. The Board considered Fidelity's staffing as it relates to the fund, including the backgrounds of investment personnel of Fidelity, and also considered the fund's investment objective, strategies, and related investment philosophy. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the investment personnel compensation program and whether this structure provides appropriate incentives to act in the best interests of the fund.Resources Dedicated to Investment Management and Support Services. The Board and the Fund Oversight and Research Committees reviewed the general qualifications and capabilities of Fidelity's investment staff, including its size, education, experience, and resources, as well as Fidelity's approach to recruiting, training, managing, and compensating investment personnel. The Board noted that Fidelity has continued to increase the resources devoted to non-U.S. offices, including expansion of Fidelity's global investment organization. The Board also noted that Fidelity's analysts have extensive resources, tools and capabilities that allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and guarantors. Further, the Board considered that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered Fidelity's trading, risk management, compliance, and technology and operations capabilities and resources, which are integral parts of the investment management process. The Board also considered Fidelity's investments in business continuity planning, and its success in continuously providing services to the fund notwithstanding the severe disruptions caused by the COVID-19 pandemic.Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory and administrative services performed by the Investment Advisers and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for the fund; (ii) the nature and extent of the supervision of third party service providers, principally custodians, subcustodians, and pricing vendors; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures. The Board also reviewed the allocation of fund brokerage, including allocations to brokers affiliated with the Investment Advisers, the use of brokerage commissions to pay fund expenses, and the use of "soft" commission dollars to pay for research services.Investment Performance. The Board considered whether the fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions. The Board reviewed the fund's absolute investment performance, as well as the fund's relative investment performance, but did not consider performance to be a material factor in its decision to renew the fund's Advisory Contracts, as the fund is not publicly offered as a stand-alone investment product. In this regard, the Board noted that the fund is designed to offer an investment option for other investment companies and 529 plans managed by Fidelity and ultimately to enhance the performance of those investment companies and 529 plans.Based on its review, the Board concluded that the nature, extent, and quality of services provided to the fund under the Advisory Contracts should continue to benefit the shareholders of the fund.Competitiveness of Management Fee and Total Expense Ratio. The Board considered that the fund does not pay FMR a management fee for investment advisory services, but that FMR receives fees for providing services to funds that invest in the fund. The Board noted that FMR or an affiliate undertakes to pay all operating expenses of the fund, except transfer agent fees, 12b-1 fees, Independent Trustee fees and expenses, custodian fees and expenses, proxy and shareholder meeting expenses, interest, taxes, and extraordinary expenses (such as litigation expenses). The Board further noted that the fund pays its non-operating expenses, including brokerage commissions and fees and expenses associated with the fund's securities lending program, if applicable.The Board further considered that FMR has contractually agreed to reimburse the fund to the extent that total operating expenses, with certain exceptions, as a percentage of its average net assets, exceed 0.003% through November 30, 2023.Based on its review, the Board considered that the fund does not pay a management fee and concluded that the total expense ratio of the fund was reasonable in light of the services that the fund and its shareholders receive and the other factors considered.Costs of the Services and Profitability. The Board considered the level of Fidelity's profits in respect of all the Fidelity funds.A public accounting firm has been engaged annually by the Board as part of the Board's assessment of Fidelity's profitability analysis. The engagement includes the review and assessment of the methodologies used by Fidelity in determining the revenues and expenses attributable to Fidelity's mutual fund business, and completion of agreed-upon procedures in respect of the mathematical accuracy of certain fund profitability information and its conformity to established allocation methodologies. After considering the reports issued under the engagement and information provided by Fidelity, the Board concluded that while other allocation methods may also be reasonable, Fidelity's profitability methodologies are reasonable in all material respects.The Board also reviewed Fidelity's non-fund businesses and potential indirect benefits such businesses may have received as a result of their association with Fidelity's mutual fund business (i.e., fall-out benefits) as well as cases where Fidelity's affiliates may benefit from the funds' business. The Board considered areas where potential indirect benefits to the Fidelity funds from their relationships with Fidelity may exist. The Board also considered that in 2019 a joint ad hoc committee created by it and the boards of other Fidelity funds evaluated potential fall-out benefits (PFOB Committee). The Board noted that it considered the PFOB Committee's findings in connection with its consideration of the renewal of the Advisory Contracts.The Board concluded that the costs of the services provided by and the profits realized by Fidelity in connection with the operation of the fund were not relevant to the renewal of the Advisory Contracts because the fund pays no advisory fees and FMR bears all expenses of the fund with certain exceptions.Economies of Scale. The Board concluded that because the fund pays no advisory fees and FMR bears all expenses of the fund with certain exceptions, the realization of economies of scale was not a material factor in the Board's decision to renew the fund's Advisory Contracts.Additional Information Requested by the Board. In order to develop fully the factual basis for consideration of the Fidelity funds' advisory contracts, the Board requested and received additional information on certain topics, including: (i) fund flow and performance trends, in particular the underperformance of certain funds and strategies, and Fidelity's long-term strategies for certain funds; (ii) consideration of expanding the use of performance fees for additional funds; (iii) Fidelity's pricing philosophy compared to competitors; (iv) metrics for evaluating index fund and ETF performance and information about ETF trading characteristics; (v) the methodology with respect to evaluating competitive fund data and peer group classifications and fee and expense comparisons; (vi) the expense structures for different funds and classes and information about the differences between various expense structures; (vii) group fee breakpoints; (viii) information regarding other accounts managed by Fidelity and sub-advisory arrangements; and (ix) Fidelity's philosophies and strategies for evaluating funds and classes with lower or declining asset levels.Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board concluded that the advisory fee arrangements are fair and reasonable, and that the fund's Advisory Contracts should be renewed.SMO-SANN-0422
1.839810.114
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 24, 2022 |
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 24, 2022 |
By: | /s/John J. Burke III |
John J. Burke III | |
Chief Financial Officer | |
Date: | March 24, 2022 |