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 811-649
Fidelity Puritan Trust
(Exact name of registrant as specified in charter)
245 Summer St., Boston, Massachusetts 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: | August 31 |
| |
Date of reporting period: | August 31, 2019 |
Item 1.
Reports to Stockholders
Fidelity® Balanced Fund
Annual Report August 31, 2019 |
 |
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of a fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a financial advisor, broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from a fund electronically, by contacting your financial intermediary. For Fidelity customers, visit Fidelity's web site or call Fidelity using the contact information listed below.
You may elect to receive all future reports in paper free of charge. If you wish to continue receiving paper copies of your shareholder reports, you may contact your financial intermediary or, if you are a Fidelity customer, visit Fidelity’s website, or call Fidelity at the applicable toll-free number listed below. Your election to receive reports in paper will apply to all funds held with the fund complex/your financial intermediary.
| Account Type | Website | Phone Number |
| Brokerage, Mutual Fund, or Annuity Contracts: | fidelity.com/mailpreferences | 1-800-343-3548 |
| Employer Provided Retirement Accounts: | netbenefits.fidelity.com/preferences (choose 'no' under Required Disclosures to continue to print) | 1-800-343-0860 |
| Advisor Sold Accounts Serviced Through Your Financial Intermediary: | Contact Your Financial Intermediary | Your Financial Intermediary's phone number |
| Advisor Sold Accounts Serviced by Fidelity: | institutional.fidelity.com | 1-877-208-0098 |
Contents
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-800-544-8544 if you’re an individual investing directly with Fidelity, call 1-800-835-5092 if you’re a plan sponsor or participant with Fidelity as your recordkeeper or call 1-877-208-0098 on institutional accounts or if you’re an advisor or invest through one to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2019 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT. Forms N-PORT are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-PORT may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
| For the periods ended August 31, 2019 | Past 1 year | Past 5 years | Past 10 years |
| Fidelity® Balanced Fund | 2.61% | 7.11% | 9.95% |
| Class K | 2.74% | 7.22% | 10.07% |
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity® Balanced Fund, a class of the fund, on August 31, 2009.
The chart shows how the value of your investment would have changed, and also shows how the S&P 500® Index performed over the same period.
| Period Ending Values |
| $25,817 | Fidelity® Balanced Fund |
| $35,308 | S&P 500® Index |
Management's Discussion of Fund Performance
Market Recap: The S&P 500
® index gained 2.92% for the 12 months ending August 31, 2019, a choppy period in which stocks seesawed due to trade tension, interest rates, economic data and an inverted yield curve, among other factors. Equities began the new year on a high note after enduring a historically volatile final quarter of 2018. Upbeat company earnings and outlooks, along with signs the Federal Reserve may pause on rates, boosted stocks to an all-time high on April 30. In May, however, the index sunk amid the Fed’s decision to hold interest rates steady and signal it had little appetite to adjust them any time soon, as well as retaliatory tariffs imposed on the U.S. by China. The bull market roared back in June and recorded a series of highs in July, when the Fed cut interest rates for the first time since 2008. Volatility intensified in August, however, as the U.S. Treasury yield curve inverted for the first time since 2007, which some investors viewed as a sign the world's biggest economy could be heading for recession. For the full 12 months, three defensive sectors led the way: utilities (+21%), real estate (+20%) and consumer staples (+16%). In contrast, energy (-20%) was by far the weakest sector, followed by financials (-3%) and materials (-3%). Meanwhile, U.S. taxable investment-grade bonds rose 10.17%, according to the Bloomberg Barclays U.S. Aggregate Bond Index, driven by a change in direction for U.S. policy interest rates, slower economic growth and uncertainty regarding trade policy.
Comments from Co-Portfolio Manager Robert Stansky: For the fiscal year, the fund’s share classes gained about 3%, considerably trailing the 6.22% advance of the Fidelity Balanced Hybrid Composite Index℠. Picks in the stock subportfolio were the primary reason for the fund’s underperformance of the Composite index. Overweighting stocks and underweighting bonds also weighed on relative performance. The equity sleeve returned -0.34%, considerably short of the 2.92% gain of the S&P 500
®. Stock picks in information technology, financials and consumer staples detracted most. A sizable overweighting in the shares of customer loyalty program operator Alliance Data Systems was the fund’s largest relative detractor. We sold most of the fund’s position here. An out-of-benchmark stake in diversified chemicals stock Chemours (-66%) also detracted. Conversely, stock choices in the consumer discretionary sector added value. An out-of-benchmark position in China-based food-delivery stock Meituan Dianping (+55%) was the top relative contributor. The fund’s bond sleeve gained 10.35%, versus 10.17% for the Bloomberg Barclays U.S. Aggregate Bond Index. Both sector allocation and security selection among investment-grade corporate bonds aided relative performance.
The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Note to shareholders: On September 24, 2018, Brian Lempel assumed portfolio management responsibilities for the fund's telecom services subportfolio, succeeding Douglas Simmons. On December 1, 2018, Nicola Stafford became Co-Manager of the fund's consumer staples sleeve, joining Robert Lee. The two managed the subportfolio together until March 30, 2019, at which point Nicola assumed sole management responsibilities.
On October 1, 2019, the fund transitioned from a subportfolio to a central fund structure for its high-yield investments.
Investment Summary (Unaudited)
The information in the following tables is based on the combined investments of the Fund and its pro-rata share of the investments of Fidelity's Fixed-Income Central Funds.
Top Five Stocks as of August 31, 2019
| | % of fund's net assets |
| Microsoft Corp. | 3.3 |
| Apple, Inc. | 2.4 |
| Amazon.com, Inc. | 1.9 |
| Alphabet, Inc. Class C | 1.7 |
| Facebook, Inc. Class A | 1.5 |
| | 10.8 |
Top Five Bond Issuers as of August 31, 2019
| (with maturities greater than one year) | % of fund's net assets |
| U.S. Treasury Obligations | 9.5 |
| Ginnie Mae | 3.3 |
| Fannie Mae | 2.7 |
| Freddie Mac | 1.9 |
| Morgan Stanley | 0.5 |
| | 17.9 |
Top Five Market Sectors as of August 31, 2019
| | % of fund's net assets |
| Financials | 14.3 |
| Information Technology | 13.3 |
| Health Care | 10.2 |
| Communication Services | 8.1 |
| Consumer Discretionary | 7.7 |
Asset Allocation (% of fund's net assets)
| As of August 31, 2019*,**,*** |
| | Stocks and Equity Futures | 65.7% |
| | Bonds | 33.7% |
| | Other Investments | 0.5% |
| | Short-Term Investments and Net Other Assets (Liabilities) | 0.1% |
* Foreign investments – 9.7%
** Futures and Swaps – 0.4%
*** Written options - (1.3)%
An unaudited holdings listing for the Fund, which presents direct holdings as well as the pro-rata share of any securities and other investments held indirectly through its investment in underlying non-money market Fidelity Central Funds, is available at fidelity.com and/or institutional.fidelity.com, as applicable.
Percentages in the above tables are adjusted for the effect of TBA Sale Commitments.
Percentages are adjusted for the effect of futures contracts and swaps, if applicable.
Schedule of Investments August 31, 2019
Showing Percentage of Net Assets
| Common Stocks - 65.5% | | | |
| | | Shares | Value (000s) |
| COMMUNICATION SERVICES - 6.7% | | | |
| Diversified Telecommunication Services - 0.6% | | | |
| AT&T, Inc. | | 5,376,364 | $189,571 |
| CenturyLink, Inc. | | 304,500 | 3,465 |
| | | | 193,036 |
| Entertainment - 1.5% | | | |
| Activision Blizzard, Inc. | | 2,050,931 | 103,777 |
| DouYu International Holdings Ltd. ADR (a) | | 690,575 | 6,533 |
| Electronic Arts, Inc. (b) | | 473,284 | 44,337 |
| Netflix, Inc. (b) | | 402,014 | 118,092 |
| Take-Two Interactive Software, Inc. (b) | | 132,200 | 17,446 |
| The Walt Disney Co. | | 1,480,500 | 203,213 |
| Viacom, Inc. Class B (non-vtg.) | | 328,600 | 8,208 |
| | | | 501,606 |
| Interactive Media & Services - 4.0% | | | |
| Alphabet, Inc.: | | | |
| Class A (b) | | 132,223 | 157,415 |
| Class C (b) | | 468,547 | 556,681 |
| CarGurus, Inc. Class A (b) | | 251,600 | 8,207 |
| Facebook, Inc. Class A (b) | | 2,684,169 | 498,370 |
| Momo, Inc. ADR | | 372,400 | 13,697 |
| Tencent Holdings Ltd. | | 2,096,100 | 86,539 |
| Twitter, Inc. (b) | | 581,600 | 24,805 |
| | | | 1,345,714 |
| Media - 0.5% | | | |
| Comcast Corp. Class A | | 3,405,292 | 150,718 |
| Discovery Communications, Inc. Class A (b) | | 224,700 | 6,202 |
| MDC Partners, Inc. Class A (b) | | 758,006 | 1,781 |
| | | | 158,701 |
| Wireless Telecommunication Services - 0.1% | | | |
| Boingo Wireless, Inc. (b) | | 447,000 | 5,753 |
| T-Mobile U.S., Inc. (b) | | 406,366 | 31,717 |
| | | | 37,470 |
|
| TOTAL COMMUNICATION SERVICES | | | 2,236,527 |
|
| CONSUMER DISCRETIONARY - 7.5% | | | |
| Auto Components - 0.1% | | | |
| Aptiv PLC | | 510,100 | 42,425 |
| Distributors - 0.1% | | | |
| LKQ Corp. (b) | | 1,124,500 | 29,541 |
| Hotels, Restaurants & Leisure - 1.6% | | | |
| ARAMARK Holdings Corp. | | 839,800 | 34,314 |
| Churchill Downs, Inc. | | 214,600 | 26,452 |
| Compass Group PLC | | 2,861,700 | 72,579 |
| Dunkin' Brands Group, Inc. | | 302,200 | 24,913 |
| Marriott International, Inc. Class A | | 515,137 | 64,938 |
| McDonald's Corp. | | 1,068,400 | 232,879 |
| Starbucks Corp. | | 447,774 | 43,237 |
| Wynn Resorts Ltd. | | 188,800 | 20,796 |
| | | | 520,108 |
| Household Durables - 0.2% | | | |
| Lennar Corp. Class A | | 1,457,700 | 74,343 |
| Internet & Direct Marketing Retail - 3.0% | | | |
| Alibaba Group Holding Ltd. sponsored ADR (b) | | 448,700 | 78,536 |
| Amazon.com, Inc. (b) | | 359,100 | 637,866 |
| MakeMyTrip Ltd. (a)(b) | | 163,410 | 3,754 |
| Meituan Dianping Class B | | 13,101,500 | 123,981 |
| Naspers Ltd. Class N | | 42,600 | 9,694 |
| Pinduoduo, Inc. ADR (b) | | 1,126,700 | 36,922 |
| The Booking Holdings, Inc. (b) | | 59,100 | 116,215 |
| Waitr Holdings, Inc. (b) | | 807,400 | 1,397 |
| | | | 1,008,365 |
| Leisure Products - 0.0% | | | |
| Mattel, Inc. (a)(b) | | 1,538,800 | 15,080 |
| Multiline Retail - 0.3% | | | |
| Dollar Tree, Inc. (b) | | 856,500 | 86,960 |
| Specialty Retail - 1.8% | | | |
| Burlington Stores, Inc. (b) | | 157,300 | 31,852 |
| Lowe's Companies, Inc. | | 1,476,400 | 165,652 |
| O'Reilly Automotive, Inc. (b) | | 119,208 | 45,747 |
| The Children's Place Retail Stores, Inc. | | 173,600 | 15,147 |
| The Home Depot, Inc. | | 919,944 | 209,664 |
| TJX Companies, Inc. | | 2,465,514 | 135,529 |
| Ulta Beauty, Inc. (b) | | 49,400 | 11,744 |
| | | | 615,335 |
| Textiles, Apparel & Luxury Goods - 0.4% | | | |
| NIKE, Inc. Class B | | 887,150 | 74,964 |
| PVH Corp. | | 269,900 | 20,458 |
| Rattler Midstream LP | | 495,500 | 9,073 |
| Tapestry, Inc. | | 1,063,900 | 21,970 |
| | | | 126,465 |
|
| TOTAL CONSUMER DISCRETIONARY | | | 2,518,622 |
|
| CONSUMER STAPLES - 4.8% | | | |
| Beverages - 1.4% | | | |
| Constellation Brands, Inc. Class A (sub. vtg.) | | 349,627 | 71,446 |
| Diageo PLC | | 762,300 | 32,637 |
| Keurig Dr. Pepper, Inc. | | 909,400 | 24,808 |
| Monster Beverage Corp. (b) | | 830,642 | 48,734 |
| PepsiCo, Inc. | | 517,900 | 70,812 |
| The Coca-Cola Co. | | 4,126,208 | 227,106 |
| | | | 475,543 |
| Food & Staples Retailing - 0.8% | | | |
| Costco Wholesale Corp. | | 135,800 | 40,028 |
| Kroger Co. | | 1,532,300 | 36,285 |
| Performance Food Group Co. (b) | | 983,900 | 46,037 |
| Sysco Corp. | | 55,900 | 4,155 |
| U.S. Foods Holding Corp. (b) | | 1,501,800 | 60,748 |
| Walmart, Inc. | | 628,800 | 71,847 |
| | | | 259,100 |
| Food Products - 0.7% | | | |
| Bunge Ltd. | | 445,263 | 23,781 |
| Conagra Brands, Inc. | | 984,800 | 27,929 |
| Danone SA | | 348,500 | 31,222 |
| Mondelez International, Inc. | | 2,217,600 | 122,456 |
| The J.M. Smucker Co. | | 313,600 | 32,978 |
| | | | 238,366 |
| Household Products - 1.1% | | | |
| Colgate-Palmolive Co. | | 1,425,367 | 105,691 |
| Energizer Holdings, Inc. | | 625,500 | 24,082 |
| Procter & Gamble Co. | | 2,018,700 | 242,708 |
| | | | 372,481 |
| Personal Products - 0.2% | | | |
| Coty, Inc. Class A | | 2,033,286 | 19,418 |
| Edgewell Personal Care Co. (b) | | 335,300 | 9,335 |
| Unilever NV | | 778,700 | 48,317 |
| | | | 77,070 |
| Tobacco - 0.6% | | | |
| Altria Group, Inc. | | 1,273,595 | 55,707 |
| Philip Morris International, Inc. | | 1,794,799 | 129,387 |
| | | | 185,094 |
|
| TOTAL CONSUMER STAPLES | | | 1,607,654 |
|
| ENERGY - 3.0% | | | |
| Energy Equipment & Services - 0.2% | | | |
| Baker Hughes, A GE Co. Class A | | 1,381,700 | 29,969 |
| Hess Midstream Partners LP | | 407,700 | 7,742 |
| Liberty Oilfield Services, Inc. Class A | | 467,500 | 5,035 |
| NCS Multistage Holdings, Inc. (b) | | 1,567,839 | 3,387 |
| Oceaneering International, Inc. (b) | | 343,791 | 4,456 |
| | | | 50,589 |
| Oil, Gas & Consumable Fuels - 2.8% | | | |
| Black Stone Minerals LP | | 832,300 | 11,852 |
| BP PLC sponsored ADR | | 1,285,090 | 47,484 |
| Brigham Minerals, Inc. Class A | | 644,500 | 12,884 |
| Cheniere Energy, Inc. (b) | | 261,800 | 15,632 |
| Chevron Corp. | | 1,381,305 | 162,607 |
| Devon Energy Corp. | | 1,703,000 | 37,449 |
| Diamondback Energy, Inc. | | 433,700 | 42,537 |
| EOG Resources, Inc. | | 1,217,700 | 90,341 |
| Exxon Mobil Corp. | | 1,465,043 | 100,326 |
| Magnolia Oil & Gas Corp. Class A (a)(b) | | 2,476,300 | 25,283 |
| Noble Energy, Inc. | | 1,085,400 | 24,508 |
| Parsley Energy, Inc. Class A | | 1,517,430 | 27,177 |
| Phillips 66 Co. | | 811,417 | 80,030 |
| Pioneer Natural Resources Co. | | 485,000 | 59,859 |
| PrairieSky Royalty Ltd. (a) | | 858,637 | 10,880 |
| Reliance Industries Ltd. | | 3,548,862 | 62,012 |
| Suncor Energy, Inc. | | 2,006,400 | 58,682 |
| The Williams Companies, Inc. | | 442,600 | 10,445 |
| Valero Energy Corp. | | 666,200 | 50,152 |
| Viper Energy Partners LP | | 522,400 | 15,134 |
| | | | 945,274 |
|
| TOTAL ENERGY | | | 995,863 |
|
| FINANCIALS - 8.4% | | | |
| Banks - 3.0% | | | |
| Banco Inter SA unit (b) | | 203,200 | 2,999 |
| Bank of America Corp. | | 11,233,908 | 309,045 |
| Citigroup, Inc. | | 3,340,612 | 214,968 |
| EFG Eurobank Ergasias SA (b) | | 10,892,200 | 9,637 |
| First Horizon National Corp. | | 2,298,500 | 36,385 |
| Huntington Bancshares, Inc. | | 8,836,512 | 117,084 |
| KeyCorp | | 3,217,700 | 53,414 |
| M&T Bank Corp. | | 297,800 | 43,541 |
| Sberbank of Russia sponsored ADR | | 1,216,700 | 16,675 |
| Signature Bank | | 300,800 | 35,088 |
| State Bank of India (b) | | 2,311,700 | 8,860 |
| SunTrust Banks, Inc. | | 640,800 | 39,416 |
| Wells Fargo & Co. | | 2,304,300 | 107,311 |
| | | | 994,423 |
| Capital Markets - 1.3% | | | |
| Apollo Global Management LLC Class A | | 890,700 | 33,606 |
| BlackRock, Inc. Class A | | 130,400 | 55,102 |
| Cboe Global Markets, Inc. | | 718,311 | 85,594 |
| E*TRADE Financial Corp. | | 1,458,349 | 60,871 |
| Monex Group, Inc. (a) | | 5,118,200 | 14,550 |
| Morgan Stanley | | 1,988,000 | 82,482 |
| State Street Corp. | | 791,800 | 40,627 |
| Tradeweb Markets, Inc. Class A | | 166,500 | 7,091 |
| Virtu Financial, Inc. Class A (a) | | 2,085,584 | 39,209 |
| | | | 419,132 |
| Consumer Finance - 2.1% | | | |
| 360 Finance, Inc. ADR | | 3,414,630 | 34,010 |
| Ally Financial, Inc. | | 1,383,700 | 43,379 |
| American Express Co. | | 978,900 | 117,830 |
| Capital One Financial Corp. | | 3,370,201 | 291,927 |
| OneMain Holdings, Inc. | | 3,071,700 | 110,120 |
| Shriram Transport Finance Co. Ltd. | | 673,000 | 9,100 |
| SLM Corp. | | 3,090,998 | 26,088 |
| Synchrony Financial | | 1,677,000 | 53,748 |
| | | | 686,202 |
| Diversified Financial Services - 0.4% | | | |
| Berkshire Hathaway, Inc.: | | | |
| Class A (b) | | 91 | 27,580 |
| Class B (b) | | 445,100 | 90,538 |
| Kimbell Royalty Partners LP | | 993,587 | 15,222 |
| StepStone Group Holdings LLC(c)(d)(e) | | 10,313 | 8,250 |
| StepStone Group LP Class A (c)(d)(e) | | 10,313 | 8,250 |
| | | | 149,840 |
| Insurance - 1.6% | | | |
| American International Group, Inc. | | 2,184,500 | 113,681 |
| Hartford Financial Services Group, Inc. | | 1,441,700 | 84,022 |
| Marsh & McLennan Companies, Inc. | | 1,082,077 | 108,089 |
| MetLife, Inc. | | 1,280,800 | 56,739 |
| The Travelers Companies, Inc. | | 611,886 | 89,923 |
| Willis Group Holdings PLC | | 504,043 | 99,785 |
| | | | 552,239 |
|
| TOTAL FINANCIALS | | | 2,801,836 |
|
| HEALTH CARE - 9.4% | | | |
| Biotechnology - 1.6% | | | |
| Alexion Pharmaceuticals, Inc. (b) | | 791,004 | 79,702 |
| Amgen, Inc. | | 1,018,988 | 212,581 |
| Blueprint Medicines Corp. (b) | | 172,000 | 13,187 |
| Celgene Corp. (b) | | 532,000 | 51,498 |
| Global Blood Therapeutics, Inc. (b) | | 276,946 | 12,734 |
| Sarepta Therapeutics, Inc. (b) | | 77,500 | 6,987 |
| Vertex Pharmaceuticals, Inc. (b) | | 841,700 | 151,523 |
| | | | 528,212 |
| Health Care Equipment & Supplies - 2.8% | | | |
| Abbott Laboratories | | 2,741,900 | 233,939 |
| Becton, Dickinson & Co. | | 609,300 | 154,713 |
| Boston Scientific Corp. (b) | | 5,410,470 | 231,189 |
| Danaher Corp. | | 420,400 | 59,735 |
| Haemonetics Corp. (b) | | 293,100 | 39,138 |
| Hologic, Inc. (b) | | 954,100 | 47,104 |
| Intuitive Surgical, Inc. (b) | | 182,600 | 93,371 |
| Stryker Corp. | | 289,800 | 63,947 |
| Wright Medical Group NV (b) | | 1,125,069 | 23,458 |
| | | | 946,594 |
| Health Care Providers & Services - 2.1% | | | |
| Cigna Corp. | | 195,400 | 30,086 |
| DaVita HealthCare Partners, Inc. (b) | | 164,800 | 9,290 |
| HCA Holdings, Inc. | | 858,900 | 103,240 |
| Humana, Inc. | | 453,000 | 128,294 |
| Molina Healthcare, Inc. (b) | | 428,900 | 55,877 |
| UnitedHealth Group, Inc. | | 1,564,884 | 366,183 |
| | | | 692,970 |
| Health Care Technology - 0.0% | | | |
| Change Healthcare, Inc. (a) | | 1,172,400 | 16,449 |
| Life Sciences Tools & Services - 0.6% | | | |
| Thermo Fisher Scientific, Inc. | | 653,497 | 187,593 |
| Pharmaceuticals - 2.3% | | | |
| AstraZeneca PLC sponsored ADR | | 3,788,300 | 170,587 |
| Bristol-Myers Squibb Co. | | 3,850,741 | 185,105 |
| Corteva, Inc. | | 1,171,304 | 34,343 |
| Eli Lilly & Co. | | 1,045,800 | 118,144 |
| Horizon Pharma PLC (b) | | 1,220,100 | 33,711 |
| Roche Holding AG (participation certificate) | | 676,357 | 184,821 |
| Zoetis, Inc. Class A | | 351,800 | 44,475 |
| | | | 771,186 |
|
| TOTAL HEALTH CARE | | | 3,143,004 |
|
| INDUSTRIALS - 6.5% | | | |
| Aerospace & Defense - 0.9% | | | |
| General Dynamics Corp. | | 148,100 | 28,327 |
| Northrop Grumman Corp. | | 207,674 | 76,397 |
| Raytheon Co. | | 61,380 | 11,375 |
| The Boeing Co. | | 171,420 | 62,412 |
| United Technologies Corp. | | 825,352 | 107,494 |
| | | | 286,005 |
| Air Freight & Logistics - 0.5% | | | |
| FedEx Corp. | | 119,000 | 18,875 |
| United Parcel Service, Inc. Class B | | 1,225,091 | 145,369 |
| | | | 164,244 |
| Airlines - 0.2% | | | |
| American Airlines Group, Inc. | | 2,838,746 | 74,687 |
| Commercial Services & Supplies - 0.0% | | | |
| Tel Aviv Stock Exchange Ltd. | | 813,600 | 2,394 |
| Construction & Engineering - 0.6% | | | |
| AECOM (b) | | 5,024,357 | 178,264 |
| Jacobs Engineering Group, Inc. | | 134,100 | 11,916 |
| | | | 190,180 |
| Electrical Equipment - 0.8% | | | |
| Sensata Technologies, Inc. PLC(b) | | 1,685,501 | 76,825 |
| Sunrun, Inc. (b)(f) | | 6,999,101 | 107,296 |
| Vivint Solar, Inc. (a)(b)(f) | | 9,449,153 | 76,160 |
| | | | 260,281 |
| Industrial Conglomerates - 0.9% | | | |
| 3M Co. | | 344,540 | 55,719 |
| General Electric Co. | | 28,046,016 | 231,380 |
| Honeywell International, Inc. | | 183,000 | 30,125 |
| | | | 317,224 |
| Machinery - 0.5% | | | |
| Caterpillar, Inc. | | 16,300 | 1,940 |
| Minebea Mitsumi, Inc. | | 1,489,100 | 23,002 |
| WABCO Holdings, Inc. (b) | | 1,107,844 | 147,908 |
| | | | 172,850 |
| Marine - 0.2% | | | |
| A.P. Moller - Maersk A/S Series B | | 70,728 | 75,327 |
| Professional Services - 0.5% | | | |
| Nielsen Holdings PLC | | 7,939,203 | 164,818 |
| Road & Rail - 0.9% | | | |
| CSX Corp. | | 1,488,450 | 99,756 |
| Genesee & Wyoming, Inc. Class A (b) | | 431,600 | 47,856 |
| Norfolk Southern Corp. | | 787,936 | 137,140 |
| Union Pacific Corp. | | 197,300 | 31,955 |
| | | | 316,707 |
| Trading Companies & Distributors - 0.5% | | | |
| HD Supply Holdings, Inc. (b) | | 3,844,684 | 149,597 |
| Univar, Inc. (b) | | 486,500 | 9,414 |
| | | | 159,011 |
|
| TOTAL INDUSTRIALS | | | 2,183,728 |
|
| INFORMATION TECHNOLOGY - 13.2% | | | |
| Communications Equipment - 0.3% | | | |
| Cisco Systems, Inc. | | 1,442,200 | 67,509 |
| Telefonaktiebolaget LM Ericsson (B Shares) sponsored ADR (a) | | 2,357,500 | 18,483 |
| | | | 85,992 |
| Electronic Equipment & Components - 0.1% | | | |
| Flextronics International Ltd. (b) | | 1,880,500 | 18,109 |
| Jabil, Inc. | | 292,300 | 8,421 |
| | | | 26,530 |
| Internet Software & Services - 0.1% | | | |
| Qudian, Inc. ADR (b) | | 1,638,600 | 13,092 |
| Wise Talent Information Technology Co. Ltd. (b) | | 6,580,600 | 15,466 |
| | | | 28,558 |
| IT Services - 1.6% | | | |
| Alliance Data Systems Corp. | | 7,400 | 910 |
| Cognizant Technology Solutions Corp. Class A | | 571,700 | 35,097 |
| DXC Technology Co. | | 363,200 | 12,066 |
| Elastic NV (a) | | 531,000 | 46,670 |
| Fidelity National Information Services, Inc. | | 1,298,600 | 176,895 |
| FleetCor Technologies, Inc. (b) | | 35,700 | 10,653 |
| Global Payments, Inc. | | 197,000 | 32,698 |
| GoDaddy, Inc. (b) | | 72,800 | 4,611 |
| GreenSky, Inc. Class A (a)(b) | | 2,451,500 | 16,670 |
| MasterCard, Inc. Class A | | 49,700 | 13,984 |
| PagSeguro Digital Ltd. (b) | | 554,100 | 27,683 |
| PayPal Holdings, Inc. (b) | | 1,143,371 | 124,685 |
| Verra Mobility Corp. (b) | | 1,043,300 | 14,523 |
| Visa, Inc. Class A | | 80,400 | 14,538 |
| | | | 531,683 |
| Semiconductors & Semiconductor Equipment - 3.0% | | | |
| Advanced Micro Devices, Inc. (b) | | 2,057,200 | 64,699 |
| ams AG (b) | | 126,800 | 5,077 |
| Analog Devices, Inc. | | 228,447 | 25,090 |
| Applied Materials, Inc. | | 1,099,500 | 52,798 |
| Broadcom, Inc. | | 289,384 | 81,791 |
| Lam Research Corp. | | 580,000 | 122,096 |
| Marvell Technology Group Ltd. | | 2,744,600 | 65,788 |
| Microchip Technology, Inc. (a) | | 162,800 | 14,055 |
| Micron Technology, Inc. (b) | | 1,441,426 | 65,253 |
| NVIDIA Corp. | | 658,542 | 110,312 |
| NXP Semiconductors NV | | 1,624,300 | 165,906 |
| ON Semiconductor Corp. (b) | | 6,690,376 | 119,089 |
| Qualcomm, Inc. | | 1,148,977 | 89,356 |
| Sanken Electric Co. Ltd. | | 640,400 | 11,170 |
| Xilinx, Inc. | | 113,200 | 11,780 |
| | | | 1,004,260 |
| Software - 5.5% | | | |
| Adobe, Inc. (b) | | 492,116 | 140,012 |
| Autodesk, Inc. (b) | | 695,591 | 99,344 |
| Cardlytics, Inc. (b) | | 378,172 | 14,208 |
| Citrix Systems, Inc. | | 366,450 | 34,073 |
| DocuSign, Inc. (b) | | 82,939 | 3,872 |
| Everbridge, Inc. (b) | | 59,584 | 5,136 |
| HubSpot, Inc. (b) | | 54,800 | 10,942 |
| Kingdee International Software Group Co. Ltd. | | 2,756,000 | 2,486 |
| LivePerson, Inc. (b) | | 1,527,693 | 60,711 |
| Microsoft Corp. | | 8,074,212 | 1,113,108 |
| New Relic, Inc. (b) | | 77,700 | 4,455 |
| Oracle Corp. | | 1,472,900 | 76,679 |
| Parametric Technology Corp. (b) | | 404,911 | 26,510 |
| Pluralsight, Inc. (b) | | 300,800 | 4,843 |
| RealPage, Inc. (b) | | 132,400 | 8,430 |
| Salesforce.com, Inc. (b) | | 1,005,120 | 156,869 |
| ShotSpotter, Inc. (b) | | 33,401 | 910 |
| SS&C Technologies Holdings, Inc. | | 209,600 | 9,769 |
| SurveyMonkey | | 1,372,561 | 22,977 |
| Symantec Corp. | | 682,200 | 15,861 |
| Talend SA ADR (b) | | 297,392 | 12,101 |
| Varonis Systems, Inc. (b) | | 401,200 | 27,410 |
| | | | 1,850,706 |
| Technology Hardware, Storage & Peripherals - 2.6% | | | |
| Apple, Inc. | | 3,881,539 | 810,232 |
| Western Digital Corp. | | 1,092,200 | 62,550 |
| | | | 872,782 |
|
| TOTAL INFORMATION TECHNOLOGY | | | 4,400,511 |
|
| MATERIALS - 1.5% | | | |
| Chemicals - 1.1% | | | |
| Air Products & Chemicals, Inc. | | 198,500 | 44,845 |
| Amyris, Inc. (a)(b) | | 1,704,900 | 6,445 |
| DowDuPont, Inc. | | 892,104 | 60,601 |
| Ecolab, Inc. | | 149,800 | 30,905 |
| International Flavors & Fragrances, Inc. | | 161,400 | 17,714 |
| LG Chemical Ltd. | | 84,360 | 23,035 |
| Linde PLC | | 485,794 | 91,771 |
| Olin Corp. | | 1,598,360 | 27,140 |
| Sherwin-Williams Co. | | 44,900 | 23,651 |
| The Chemours Co. LLC | | 2,260,831 | 32,036 |
| Tronox Holdings PLC | | 424,200 | 3,152 |
| W.R. Grace & Co. | | 104,200 | 7,055 |
| | | | 368,350 |
| Construction Materials - 0.1% | | | |
| Martin Marietta Materials, Inc. | | 73,900 | 18,754 |
| Vulcan Materials Co. | | 144,800 | 20,453 |
| | | | 39,207 |
| Containers & Packaging - 0.2% | | | |
| Aptargroup, Inc. | | 21,500 | 2,628 |
| Avery Dennison Corp. | | 124,300 | 14,365 |
| Ball Corp. | | 262,200 | 21,084 |
| Crown Holdings, Inc. (b) | | 224,500 | 14,781 |
| | | | 52,858 |
| Metals & Mining - 0.1% | | | |
| Newmont Goldcorp Corp. | | 643,200 | 25,657 |
|
| TOTAL MATERIALS | | | 486,072 |
|
| REAL ESTATE - 2.3% | | | |
| Equity Real Estate Investment Trusts (REITs) - 2.2% | | | |
| Alexandria Real Estate Equities, Inc. | | 392,100 | 58,752 |
| American Homes 4 Rent Class A | | 444,800 | 11,378 |
| American Tower Corp. | | 861,100 | 198,217 |
| Ant International Co. Ltd. Class C (b)(d)(e) | | 4,971,128 | 35,792 |
| Corporate Office Properties Trust (SBI) | | 1,390,900 | 40,183 |
| Crown Castle International Corp. | | 257,163 | 37,332 |
| Equinix, Inc. | | 110,200 | 61,302 |
| Equity Lifestyle Properties, Inc. | | 254,700 | 34,313 |
| Front Yard Residential Corp. Class B | | 2,398,011 | 26,594 |
| Omega Healthcare Investors, Inc. | | 361,800 | 14,718 |
| Outfront Media, Inc. | | 139,162 | 3,824 |
| Potlatch Corp. | | 576,539 | 22,185 |
| Prologis, Inc. | | 1,041,300 | 87,074 |
| Simon Property Group, Inc. | | 60,400 | 8,996 |
| Store Capital Corp. | | 322,800 | 12,189 |
| VICI Properties, Inc. | | 852,000 | 18,880 |
| Welltower, Inc. | | 869,800 | 77,899 |
| | | | 749,628 |
| Real Estate Management & Development - 0.1% | | | |
| Cushman & Wakefield PLC | | 1,647,100 | 27,737 |
|
| TOTAL REAL ESTATE | | | 777,365 |
|
| UTILITIES - 2.2% | | | |
| Electric Utilities - 1.4% | | | |
| Edison International | | 918,085 | 66,350 |
| Entergy Corp. | | 275,200 | 31,054 |
| Evergy, Inc. | | 279,461 | 18,165 |
| Exelon Corp. | | 2,152,825 | 101,743 |
| FirstEnergy Corp. | | 1,448,500 | 66,631 |
| NextEra Energy, Inc. | | 542,100 | 118,763 |
| PPL Corp. | | 1,408,591 | 41,624 |
| Southern Co. | | 424,931 | 24,756 |
| | | | 469,086 |
| Independent Power and Renewable Electricity Producers - 0.1% | | | |
| NRG Energy, Inc. | | 455,831 | 16,592 |
| The AES Corp. | | 718,000 | 11,007 |
| | | | 27,599 |
| Multi-Utilities - 0.7% | | | |
| CenterPoint Energy, Inc. | | 287,200 | 7,953 |
| Dominion Energy, Inc. | | 1,351,392 | 104,909 |
| Public Service Enterprise Group, Inc. | | 1,007,616 | 60,931 |
| Sempra Energy | | 472,057 | 66,857 |
| | | | 240,650 |
|
| TOTAL UTILITIES | | | 737,335 |
|
| TOTAL COMMON STOCKS | | | |
| (Cost $16,946,302) | | | 21,888,517 |
| | | Principal Amount (000s) | Value (000s) |
|
| Nonconvertible Bonds - 11.6% | | | |
| COMMUNICATION SERVICES - 0.9% | | | |
| Diversified Telecommunication Services - 0.3% | | | |
| AT&T, Inc.: | | | |
| 2.45% 6/30/20 | | 5,759 | 5,769 |
| 2.95% 7/15/26 | | 23,000 | 23,446 |
| 3.6% 2/17/23 | | 12,300 | 12,858 |
| 4.3% 2/15/30 | | 5,006 | 5,559 |
| 4.45% 4/1/24 | | 854 | 929 |
| 4.5% 3/9/48 | | 28,700 | 31,327 |
| 4.75% 5/15/46 | | 10,000 | 11,181 |
| BellSouth Capital Funding Corp. 7.875% 2/15/30 | | 61 | 81 |
| Verizon Communications, Inc.: | | | |
| 5.012% 4/15/49 | | 5,561 | 7,109 |
| 5.5% 3/16/47 | | 16,500 | 22,148 |
| | | | 120,407 |
| Entertainment - 0.1% | | | |
| NBCUniversal, Inc.: | | | |
| 4.45% 1/15/43 | | 3,588 | 4,223 |
| 5.95% 4/1/41 | | 2,510 | 3,493 |
| The Walt Disney Co. 7.75% 12/1/45 (g) | | 8,209 | 14,463 |
| | | | 22,179 |
| Media - 0.5% | | | |
| Charter Communications Operating LLC/Charter Communications Operating Capital Corp.: | | | |
| 4.464% 7/23/22 | | 10,261 | 10,842 |
| 4.908% 7/23/25 | | 6,898 | 7,624 |
| 5.375% 5/1/47 | | 9,270 | 10,295 |
| 5.75% 4/1/48 | | 9,330 | 10,885 |
| Comcast Corp.: | | | |
| 3.9% 3/1/38 | | 1,918 | 2,151 |
| 4.6% 8/15/45 | | 5,066 | 6,126 |
| 4.65% 7/15/42 | | 4,526 | 5,523 |
| Fox Corp.: | | | |
| 3.666% 1/25/22 (g) | | 1,312 | 1,360 |
| 4.03% 1/25/24 (g) | | 2,307 | 2,471 |
| 4.709% 1/25/29 (g) | | 3,339 | 3,868 |
| 5.476% 1/25/39 (g) | | 3,293 | 4,115 |
| 5.576% 1/25/49 (g) | | 2,185 | 2,843 |
| Time Warner Cable, Inc.: | | | |
| 4% 9/1/21 | | 10,989 | 11,269 |
| 4.5% 9/15/42 | | 2,648 | 2,658 |
| 5.5% 9/1/41 | | 3,051 | 3,318 |
| 5.875% 11/15/40 | | 7,066 | 8,044 |
| 6.55% 5/1/37 | | 43,346 | 52,481 |
| 7.3% 7/1/38 | | 7,024 | 9,010 |
| | | | 154,883 |
|
| TOTAL COMMUNICATION SERVICES | | | 297,469 |
|
| CONSUMER DISCRETIONARY - 0.1% | | | |
| Automobiles - 0.1% | | | |
| General Motors Financial Co., Inc.: | | | |
| 3.15% 1/15/20 | | 19,000 | 19,035 |
| 4% 1/15/25 | | 7,674 | 7,899 |
| 4.2% 3/1/21 | | 10,665 | 10,917 |
| 4.25% 5/15/23 | | 3,220 | 3,372 |
| | | | 41,223 |
| CONSUMER STAPLES - 1.0% | | | |
| Beverages - 0.5% | | | |
| Anheuser-Busch InBev Finance, Inc.: | | | |
| 4.7% 2/1/36 | | 17,853 | 20,782 |
| 4.9% 2/1/46 | | 22,019 | 26,190 |
| Anheuser-Busch InBev Worldwide, Inc.: | | | |
| 4.75% 4/15/58 | | 10,422 | 12,201 |
| 5.45% 1/23/39 | | 8,520 | 10,872 |
| 5.55% 1/23/49 | | 19,483 | 25,665 |
| 5.8% 1/23/59 (Reg. S) | | 20,579 | 28,081 |
| Molson Coors Brewing Co. 3% 7/15/26 | | 30,000 | 30,368 |
| | | | 154,159 |
| Food & Staples Retailing - 0.0% | | | |
| Walgreens Boots Alliance, Inc.: | | | |
| 2.7% 11/18/19 | | 3,939 | 3,940 |
| 3.3% 11/18/21 | | 4,671 | 4,782 |
| | | | 8,722 |
| Food Products - 0.0% | | | |
| Conagra Brands, Inc. 3.8% 10/22/21 | | 2,030 | 2,089 |
| Tobacco - 0.5% | | | |
| Altria Group, Inc.: | | | |
| 2.625% 1/14/20 | | 12,900 | 12,906 |
| 3.875% 9/16/46 | | 8,420 | 8,270 |
| 4% 1/31/24 | | 3,615 | 3,861 |
| 4.25% 8/9/42 | | 10,063 | 10,373 |
| 4.5% 5/2/43 | | 6,746 | 7,175 |
| 4.8% 2/14/29 | | 9,934 | 11,249 |
| 5.375% 1/31/44 | | 12,168 | 14,395 |
| 5.95% 2/14/49 | | 6,600 | 8,474 |
| BAT Capital Corp. 4.54% 8/15/47 | | 20,000 | 20,060 |
| Imperial Tobacco Finance PLC: | | | |
| 3.75% 7/21/22 (g) | | 8,553 | 8,847 |
| 4.25% 7/21/25 (g) | | 10,443 | 11,135 |
| Reynolds American, Inc.: | | | |
| 3.25% 6/12/20 | | 1,695 | 1,708 |
| 4% 6/12/22 | | 5,830 | 6,093 |
| 4.45% 6/12/25 | | 4,227 | 4,577 |
| 4.85% 9/15/23 | | 8,000 | 8,740 |
| 5.7% 8/15/35 | | 2,194 | 2,553 |
| 5.85% 8/15/45 | | 16,830 | 18,986 |
| 6.15% 9/15/43 | | 14,000 | 16,586 |
| 7.25% 6/15/37 | | 7,569 | 9,865 |
| | | | 185,853 |
|
| TOTAL CONSUMER STAPLES | | | 350,823 |
|
| ENERGY - 1.8% | | | |
| Energy Equipment & Services - 0.1% | | | |
| El Paso Pipeline Partners Operating Co. LLC: | | | |
| 5% 10/1/21 | | 2,791 | 2,921 |
| 6.5% 4/1/20 | | 3,517 | 3,601 |
| Halliburton Co.: | | | |
| 3.8% 11/15/25 | | 4,660 | 4,936 |
| 4.85% 11/15/35 | | 4,069 | 4,592 |
| Noble Holding International Ltd.: | | | |
| 7.95% 4/1/25 (h) | | 3,936 | 2,499 |
| 8.95% 4/1/45 (h) | | 3,799 | 2,108 |
| | | | 20,657 |
| Oil, Gas & Consumable Fuels - 1.7% | | | |
| Amerada Hess Corp.: | | | |
| 7.125% 3/15/33 | | 1,814 | 2,278 |
| 7.3% 8/15/31 | | 2,435 | 3,034 |
| 7.875% 10/1/29 | | 7,831 | 9,967 |
| Anadarko Finance Co. 7.5% 5/1/31 | | 14,552 | 19,385 |
| Anadarko Petroleum Corp.: | | | |
| 4.85% 3/15/21 | | 12,068 | 12,476 |
| 5.55% 3/15/26 | | 9,887 | 11,199 |
| 6.45% 9/15/36 | | 8,540 | 10,698 |
| 6.6% 3/15/46 | | 11,115 | 14,821 |
| Canadian Natural Resources Ltd. 5.85% 2/1/35 | | 4,725 | 5,710 |
| Cenovus Energy, Inc. 4.25% 4/15/27 | | 14,753 | 15,406 |
| Columbia Pipeline Group, Inc.: | | | |
| 3.3% 6/1/20 | | 7,911 | 7,963 |
| 4.5% 6/1/25 | | 2,416 | 2,621 |
| DCP Midstream LLC: | | | |
| 4.75% 9/30/21 (g) | | 6,909 | 7,082 |
| 5.35% 3/15/20 (g) | | 6,814 | 6,896 |
| DCP Midstream Operating LP: | | | |
| 3.875% 3/15/23 | | 2,761 | 2,796 |
| 4.95% 4/1/22 | | 1,267 | 1,311 |
| 5.6% 4/1/44 | | 2,216 | 2,089 |
| Duke Energy Field Services 6.45% 11/3/36 (g) | | 6,493 | 6,801 |
| Empresa Nacional de Petroleo 4.375% 10/30/24 (g) | | 5,615 | 6,013 |
| Enable Midstream Partners LP 3.9% 5/15/24 (h) | | 2,064 | 2,122 |
| Enbridge Energy Partners LP: | | | |
| 4.2% 9/15/21 | | 8,103 | 8,369 |
| 4.375% 10/15/20 | | 5,808 | 5,930 |
| Enbridge, Inc.: | | | |
| 4% 10/1/23 | | 5,097 | 5,396 |
| 4.25% 12/1/26 | | 3,252 | 3,605 |
| Energy Transfer Partners LP: | | | |
| 4.2% 9/15/23 | | 2,113 | 2,234 |
| 4.25% 3/15/23 | | 1,843 | 1,936 |
| 4.5% 4/15/24 | | 2,294 | 2,459 |
| 4.95% 6/15/28 | | 7,210 | 8,065 |
| 5.25% 4/15/29 | | 3,732 | 4,275 |
| 5.8% 6/15/38 | | 4,020 | 4,682 |
| 6% 6/15/48 | | 2,618 | 3,122 |
| 6.25% 4/15/49 | | 2,563 | 3,171 |
| Kinder Morgan Energy Partners LP: | | | |
| 3.45% 2/15/23 | | 3,000 | 3,109 |
| 6.55% 9/15/40 | | 904 | 1,149 |
| Kinder Morgan, Inc. 5.55% 6/1/45 | | 4,432 | 5,319 |
| Marathon Petroleum Corp. 5.125% 3/1/21 | | 4,415 | 4,594 |
| MPLX LP: | | | |
| 4.5% 7/15/23 | | 3,584 | 3,824 |
| 4.8% 2/15/29 | | 2,108 | 2,345 |
| 4.875% 12/1/24 | | 4,918 | 5,394 |
| 5.5% 2/15/49 | | 6,323 | 7,248 |
| Nakilat, Inc. 6.067% 12/31/33 (g) | | 2,490 | 3,050 |
| Occidental Petroleum Corp.: | | | |
| 2.6% 8/13/21 | | 2,785 | 2,804 |
| 2.7% 8/15/22 | | 2,462 | 2,486 |
| 2.9% 8/15/24 | | 8,135 | 8,211 |
| 3.2% 8/15/26 | | 1,094 | 1,105 |
| 3.5% 8/15/29 | | 3,446 | 3,511 |
| 4.3% 8/15/39 | | 502 | 525 |
| 4.4% 8/15/49 | | 502 | 524 |
| Petrobras Global Finance BV: | | | |
| 5.75% 2/1/29 | | 4,000 | 4,333 |
| 7.25% 3/17/44 | | 30,172 | 35,688 |
| Petroleos Mexicanos: | | | |
| 3.5% 1/30/23 | | 5,005 | 4,862 |
| 4.5% 1/23/26 | | 11,915 | 11,272 |
| 4.625% 9/21/23 | | 13,980 | 14,013 |
| 4.875% 1/24/22 | | 1,430 | 1,453 |
| 4.875% 1/18/24 | | 7,021 | 7,049 |
| 5.375% 3/13/22 | | 4,960 | 5,072 |
| 5.5% 1/21/21 | | 13,423 | 13,704 |
| 5.5% 6/27/44 | | 6,301 | 5,379 |
| 5.625% 1/23/46 | | 11,673 | 10,012 |
| 6% 3/5/20 | | 3,052 | 3,096 |
| 6.35% 2/12/48 | | 15,500 | 14,248 |
| 6.375% 1/23/45 | | 26,396 | 24,330 |
| 6.5% 3/13/27 | | 8,390 | 8,569 |
| 6.5% 6/2/41 | | 8,420 | 7,833 |
| 6.75% 9/21/47 | | 21,513 | 20,437 |
| 6.875% 8/4/26 | | 13,000 | 13,631 |
| Phillips 66 Partners LP 2.646% 2/15/20 | | 652 | 652 |
| Plains All American Pipeline LP/PAA Finance Corp. 3.6% 11/1/24 | | 2,518 | 2,587 |
| Regency Energy Partners LP/Regency Energy Finance Corp. 5.875% 3/1/22 | | 3,680 | 3,951 |
| Southeast Supply Header LLC 4.25% 6/15/24 (g) | | 5,790 | 5,965 |
| Southwestern Energy Co. 6.2% 1/23/25 (h) | | 4,632 | 4,053 |
| Sunoco Logistics Partner Operations LP 5.4% 10/1/47 | | 2,451 | 2,734 |
| The Williams Companies, Inc.: | | | |
| 3.7% 1/15/23 | | 5,046 | 5,235 |
| 4.55% 6/24/24 | | 25,316 | 27,419 |
| Western Gas Partners LP: | | | |
| 4.5% 3/1/28 | | 1,600 | 1,597 |
| 4.65% 7/1/26 | | 2,228 | 2,269 |
| 4.75% 8/15/28 | | 2,109 | 2,136 |
| 5.375% 6/1/21 | | 23,110 | 23,896 |
| Williams Partners LP: | | | |
| 3.6% 3/15/22 | | 6,925 | 7,130 |
| 3.9% 1/15/25 | | 2,391 | 2,514 |
| 4% 11/15/21 | | 4,273 | 4,401 |
| 4.3% 3/4/24 | | 10,014 | 10,689 |
| 4.5% 11/15/23 | | 3,444 | 3,708 |
| | | | 575,027 |
|
| TOTAL ENERGY | | | 595,684 |
|
| FINANCIALS - 5.4% | | | |
| Banks - 2.4% | | | |
| Bank of America Corp.: | | | |
| 3.004% 12/20/23 (h) | | 61,748 | 63,369 |
| 3.3% 1/11/23 | | 13,500 | 14,035 |
| 3.419% 12/20/28 (h) | | 10,395 | 10,970 |
| 3.5% 4/19/26 | | 9,902 | 10,610 |
| 3.864% 7/23/24 (h) | | 8,285 | 8,797 |
| 3.95% 4/21/25 | | 6,998 | 7,472 |
| 4.2% 8/26/24 | | 11,449 | 12,356 |
| 4.25% 10/22/26 | | 6,748 | 7,367 |
| 4.45% 3/3/26 | | 2,886 | 3,178 |
| Barclays PLC: | | | |
| 2.75% 11/8/19 | | 5,728 | 5,731 |
| 3.25% 1/12/21 | | 8,790 | 8,862 |
| 4.375% 1/12/26 | | 11,847 | 12,503 |
| 5.088% 6/20/30 (h) | | 13,323 | 13,839 |
| 5.2% 5/12/26 | | 10,495 | 11,142 |
| BB&T Corp. 3.95% 3/22/22 | | 1,805 | 1,884 |
| Citigroup, Inc.: | | | |
| 2.7% 10/27/22 | | 53,057 | 53,960 |
| 3.352% 4/24/25 (h) | | 8,985 | 9,387 |
| 3.875% 3/26/25 | | 17,000 | 17,985 |
| 4.05% 7/30/22 | | 17,500 | 18,353 |
| 4.3% 11/20/26 | | 17,098 | 18,660 |
| 4.45% 9/29/27 | | 14,000 | 15,407 |
| Citizens Bank NA 2.55% 5/13/21 | | 3,064 | 3,085 |
| Citizens Financial Group, Inc. 4.15% 9/28/22 (g) | | 7,659 | 7,995 |
| Credit Suisse Group Funding Guernsey Ltd.: | | | |
| 2.75% 3/26/20 | | 8,440 | 8,463 |
| 3.75% 3/26/25 | | 8,440 | 8,921 |
| 3.8% 9/15/22 | | 13,270 | 13,849 |
| 3.8% 6/9/23 | | 16,850 | 17,690 |
| 4.55% 4/17/26 | | 4,788 | 5,305 |
| Credit Suisse New York Branch 5.4% 1/14/20 | | 1,450 | 1,466 |
| Discover Bank 7% 4/15/20 | | 4,144 | 4,260 |
| Fifth Third Bancorp: | | | |
| 2.875% 7/27/20 | | 43,000 | 43,281 |
| 3.5% 3/15/22 | | 638 | 659 |
| HSBC Holdings PLC 4.25% 3/14/24 | | 3,415 | 3,604 |
| Huntington Bancshares, Inc. 7% 12/15/20 | | 3,353 | 3,553 |
| Huntington National Bank 2.4% 4/1/20 | | 40,000 | 40,060 |
| Intesa Sanpaolo SpA: | | | |
| 5.017% 6/26/24 (g) | | 7,748 | 7,942 |
| 5.71% 1/15/26 (g) | | 18,498 | 19,517 |
| JPMorgan Chase & Co.: | | | |
| 2.95% 10/1/26 | | 34,906 | 36,210 |
| 3.797% 7/23/24 (h) | | 10,331 | 10,974 |
| 3.875% 9/10/24 | | 24,177 | 25,848 |
| 4.125% 12/15/26 | | 61,229 | 67,448 |
| KeyCorp. 5.1% 3/24/21 | | 628 | 656 |
| Rabobank Nederland 4.375% 8/4/25 | | 13,516 | 14,611 |
| Regions Bank 6.45% 6/26/37 | | 12,100 | 16,200 |
| Regions Financial Corp. 3.2% 2/8/21 | | 5,563 | 5,638 |
| Royal Bank of Scotland Group PLC: | | | |
| 5.125% 5/28/24 | | 23,104 | 24,451 |
| 6% 12/19/23 | | 16,075 | 17,507 |
| 6.1% 6/10/23 | | 12,713 | 13,788 |
| 6.125% 12/15/22 | | 39,429 | 42,654 |
| UniCredit SpA 6.572% 1/14/22 (g) | | 10,119 | 10,881 |
| Westpac Banking Corp. 4.11% 7/24/34 (h) | | 6,710 | 7,064 |
| | | | 809,447 |
| Capital Markets - 1.4% | | | |
| Affiliated Managers Group, Inc.: | | | |
| 3.5% 8/1/25 | | 9,670 | 10,081 |
| 4.25% 2/15/24 | | 3,357 | 3,609 |
| Ares Capital Corp. 4.2% 6/10/24 | | 16,137 | 16,751 |
| Credit Suisse Group AG 3.869% 1/12/29 (g)(h) | | 6,889 | 7,338 |
| Deutsche Bank AG 4.5% 4/1/25 | | 27,715 | 26,184 |
| Deutsche Bank AG New York Branch: | | | |
| 3.3% 11/16/22 | | 18,270 | 18,159 |
| 5% 2/14/22 | | 16,487 | 17,089 |
| Goldman Sachs Group, Inc.: | | | |
| 2.876% 10/31/22 (h) | | 125,990 | 127,726 |
| 3.2% 2/23/23 | | 14,500 | 14,981 |
| 4.25% 10/21/25 | | 4,219 | 4,551 |
| 6.75% 10/1/37 | | 4,014 | 5,500 |
| IntercontinentalExchange, Inc. 2.75% 12/1/20 | | 3,082 | 3,108 |
| Moody's Corp.: | | | |
| 3.25% 1/15/28 | | 4,208 | 4,437 |
| 4.875% 2/15/24 | | 3,952 | 4,379 |
| Morgan Stanley: | | | |
| 2.65% 1/27/20 | | 2,659 | 2,663 |
| 3.125% 1/23/23 | | 68,526 | 70,656 |
| 3.125% 7/27/26 | | 1,531 | 1,590 |
| 3.7% 10/23/24 | | 5,388 | 5,755 |
| 3.737% 4/24/24 (h) | | 53,000 | 55,760 |
| 4.431% 1/23/30 (h) | | 8,038 | 9,173 |
| 4.875% 11/1/22 | | 8,674 | 9,331 |
| 5% 11/24/25 | | 13,300 | 15,006 |
| 5.625% 9/23/19 | | 547 | 548 |
| Peachtree Corners Funding Trust 3.976% 2/15/25 (g) | | 10,000 | 10,567 |
| UBS Group Funding Ltd. 4.125% 9/24/25 (g) | | 9,717 | 10,575 |
| | | | 455,517 |
| Consumer Finance - 0.5% | | | |
| AerCap Ireland Capital Ltd./AerCap Global Aviation Trust: | | | |
| 2.875% 8/14/24 | | 10,805 | 10,840 |
| 3.5% 5/26/22 | | 3,172 | 3,259 |
| 4.125% 7/3/23 | | 7,468 | 7,922 |
| 4.45% 12/16/21 | | 5,342 | 5,551 |
| 4.45% 4/3/26 | | 5,640 | 6,056 |
| 4.875% 1/16/24 | | 9,072 | 9,840 |
| Capital One Financial Corp. 3.8% 1/31/28 | | 7,659 | 8,165 |
| Discover Financial Services: | | | |
| 3.85% 11/21/22 | | 2,701 | 2,833 |
| 3.95% 11/6/24 | | 20,000 | 21,321 |
| 4.5% 1/30/26 | | 8,513 | 9,402 |
| 5.2% 4/27/22 | | 2,488 | 2,675 |
| Ford Motor Credit Co. LLC: | | | |
| 5.085% 1/7/21 | | 5,501 | 5,667 |
| 5.584% 3/18/24 | | 11,294 | 12,146 |
| 5.596% 1/7/22 | | 11,381 | 12,035 |
| 5.875% 8/2/21 | | 12,574 | 13,235 |
| Synchrony Financial: | | | |
| 2.85% 7/25/22 | | 2,757 | 2,794 |
| 3.75% 8/15/21 | | 8,466 | 8,657 |
| 3.95% 12/1/27 | | 13,987 | 14,500 |
| 4.25% 8/15/24 | | 3,469 | 3,694 |
| 4.375% 3/19/24 | | 4,123 | 4,404 |
| 5.15% 3/19/29 | | 11,858 | 13,354 |
| | | | 178,350 |
| Diversified Financial Services - 0.5% | | | |
| Avolon Holdings Funding Ltd.: | | | |
| 3.625% 5/1/22 (g) | | 2,839 | 2,880 |
| 3.95% 7/1/24 (g) | | 3,770 | 3,880 |
| 4.375% 5/1/26 (g) | | 4,607 | 4,783 |
| 5.25% 5/15/24 (g) | | 6,911 | 7,413 |
| AXA Equitable Holdings, Inc. 3.9% 4/20/23 | | 1,851 | 1,944 |
| Brixmor Operating Partnership LP: | | | |
| 3.25% 9/15/23 | | 11,325 | 11,659 |
| 3.875% 8/15/22 | | 10,251 | 10,697 |
| 4.125% 6/15/26 | | 8,663 | 9,234 |
| 4.125% 5/15/29 | | 9,050 | 9,791 |
| Cigna Corp.: | | | |
| 3.75% 7/15/23 | | 8,913 | 9,370 |
| 4.125% 11/15/25 | | 6,513 | 7,086 |
| 4.375% 10/15/28 | | 11,124 | 12,439 |
| 4.8% 8/15/38 | | 6,926 | 8,007 |
| 4.9% 12/15/48 | | 6,920 | 8,189 |
| Park Aerospace Holdings Ltd. 5.5% 2/15/24 (g) | | 11,100 | 12,004 |
| Pine Street Trust I: | | | |
| 4.572% 2/15/29 (g) | | 10,277 | 11,094 |
| 5.568% 2/15/49 (g) | | 10,300 | 11,784 |
| Voya Financial, Inc. 3.125% 7/15/24 | | 4,991 | 5,157 |
| | | | 147,411 |
| Insurance - 0.6% | | | |
| American International Group, Inc.: | | | |
| 3.3% 3/1/21 | | 4,640 | 4,717 |
| 3.75% 7/10/25 | | 14,847 | 15,814 |
| 4.875% 6/1/22 | | 11,881 | 12,725 |
| Aon Corp. 5% 9/30/20 | | 129 | 133 |
| Liberty Mutual Group, Inc.: | | | |
| 4.25% 6/15/23 (g) | | 1,433 | 1,527 |
| 4.569% 2/1/29 (g) | | 13,590 | 15,467 |
| Marsh & McLennan Companies, Inc.: | | | |
| 4.375% 3/15/29 | | 7,233 | 8,309 |
| 4.75% 3/15/39 | | 3,319 | 4,155 |
| 4.8% 7/15/21 | | 4,819 | 5,021 |
| 4.9% 3/15/49 | | 6,605 | 8,575 |
| Massachusetts Mutual Life Insurance Co. 4.5% 4/15/65 (g) | | 9,547 | 11,661 |
| Metropolitan Life Global Funding I U.S. SOFR SEC OVRN FIN RATE INDX + 0.500% 2.62% 5/28/21 (g)(h)(i) | | 49,900 | 49,938 |
| Northwestern Mutual Life Insurance Co. 6.063% 3/30/40 (g) | | 4,915 | 7,034 |
| Pacific LifeCorp 5.125% 1/30/43 (g) | | 7,709 | 9,293 |
| Swiss Re Finance Luxembourg SA 5% 4/2/49 (g)(h) | | 4,200 | 4,631 |
| Teachers Insurance & Annuity Association of America 4.9% 9/15/44 (g) | | 8,243 | 10,374 |
| TIAA Asset Management Finance LLC 4.125% 11/1/24 (g) | | 2,810 | 3,057 |
| Unum Group: | | | |
| 3.875% 11/5/25 | | 9,271 | 9,787 |
| 4% 6/15/29 | | 7,995 | 8,400 |
| 5.625% 9/15/20 | | 3,860 | 3,990 |
| 5.75% 8/15/42 | | 12,079 | 14,998 |
| | | | 209,606 |
|
| TOTAL FINANCIALS | | | 1,800,331 |
|
| HEALTH CARE - 0.6% | | | |
| Health Care Providers & Services - 0.4% | | | |
| CVS Health Corp.: | | | |
| 2.625% 8/15/24 | | 1,375 | 1,383 |
| 3% 8/15/26 | | 1,116 | 1,130 |
| 3.25% 8/15/29 | | 2,565 | 2,600 |
| 3.7% 3/9/23 | | 4,500 | 4,706 |
| 3.875% 7/20/25 | | 7,967 | 8,441 |
| 4.1% 3/25/25 | | 20,820 | 22,274 |
| 4.3% 3/25/28 | | 24,177 | 26,390 |
| 4.78% 3/25/38 | | 10,763 | 12,069 |
| 5.05% 3/25/48 | | 15,824 | 18,438 |
| Elanco Animal Health, Inc.: | | | |
| 3.912% 8/27/21 | | 1,834 | 1,869 |
| 4.272% 8/28/23 | | 5,788 | 6,062 |
| 4.9% 8/28/28 | | 2,438 | 2,659 |
| HCA Holdings, Inc. 4.75% 5/1/23 | | 375 | 403 |
| Medco Health Solutions, Inc. 4.125% 9/15/20 | | 5,031 | 5,117 |
| Toledo Hospital: | | | |
| 5.325% 11/15/28 | | 3,910 | 4,418 |
| 6.015% 11/15/48 | | 13,488 | 17,013 |
| | | | 134,972 |
| Pharmaceuticals - 0.2% | | | |
| Actavis Funding SCS 3.45% 3/15/22 | | 16,210 | 16,647 |
| Bayer U.S. Finance II LLC 4.25% 12/15/25 (g) | | 7,941 | 8,559 |
| Mylan NV: | | | |
| 3.15% 6/15/21 | | 9,840 | 9,956 |
| 3.95% 6/15/26 | | 4,843 | 5,039 |
| 4.55% 4/15/28 | | 6,200 | 6,675 |
| Perrigo Finance PLC 3.5% 12/15/21 | | 739 | 742 |
| Teva Pharmaceutical Finance Netherlands III BV: | | | |
| 2.2% 7/21/21 | | 6,966 | 6,522 |
| 2.8% 7/21/23 | | 2,817 | 2,373 |
| | | | 56,513 |
|
| TOTAL HEALTH CARE | | | 191,485 |
|
| INDUSTRIALS - 0.1% | | | |
| Machinery - 0.0% | | | |
| Ingersoll-Rand Luxembourg Finance SA 2.625% 5/1/20 | | 1,829 | 1,834 |
| Professional Services - 0.0% | | | |
| Thomson Reuters Corp. 3.85% 9/29/24 | | 1,596 | 1,681 |
| Trading Companies & Distributors - 0.1% | | | |
| Air Lease Corp.: | | | |
| 3% 9/15/23 | | 1,367 | 1,391 |
| 3.375% 6/1/21 | | 4,953 | 5,035 |
| 3.75% 2/1/22 | | 7,839 | 8,076 |
| 3.875% 4/1/21 | | 4,953 | 5,068 |
| 4.25% 2/1/24 | | 10,444 | 11,149 |
| 4.25% 9/15/24 | | 5,492 | 5,904 |
| 4.75% 3/1/20 | | 5,518 | 5,580 |
| | | | 42,203 |
|
| TOTAL INDUSTRIALS | | | 45,718 |
|
| INFORMATION TECHNOLOGY - 0.0% | | | |
| Electronic Equipment & Components - 0.0% | | | |
| Diamond 1 Finance Corp./Diamond 2 Finance Corp.: | | | |
| 5.45% 6/15/23 (g) | | 8,400 | 9,130 |
| 6.02% 6/15/26 (g) | | 2,888 | 3,259 |
| | | | 12,389 |
| MATERIALS - 0.1% | | | |
| Chemicals - 0.0% | | | |
| Nutrien Ltd.: | | | |
| 4.2% 4/1/29 | | 1,106 | 1,236 |
| 5% 4/1/49 | | 1,925 | 2,298 |
| | | | 3,534 |
| Metals & Mining - 0.1% | | | |
| BHP Billiton Financial (U.S.A.) Ltd.: | | | |
| 6.25% 10/19/75 (g)(h) | | 3,645 | 3,789 |
| 6.75% 10/19/75 (g)(h) | | 9,054 | 10,604 |
| Corporacion Nacional del Cobre de Chile (Codelco): | | | |
| 3.625% 8/1/27 (g) | | 2,954 | 3,164 |
| 4.5% 8/1/47 (g) | | 3,000 | 3,524 |
| | | | 21,081 |
|
| TOTAL MATERIALS | | | 24,615 |
|
| REAL ESTATE - 1.0% | | | |
| Equity Real Estate Investment Trusts (REITs) - 0.7% | | | |
| American Campus Communities Operating Partnership LP 3.75% 4/15/23 | | 1,759 | 1,844 |
| American Tower Corp. 2.8% 6/1/20 | | 8,000 | 8,027 |
| AvalonBay Communities, Inc. 3.625% 10/1/20 | | 2,800 | 2,836 |
| Boston Properties, Inc. 4.5% 12/1/28 | | 7,294 | 8,428 |
| Camden Property Trust 2.95% 12/15/22 | | 2,417 | 2,478 |
| Corporate Office Properties LP: | | | |
| 3.7% 6/15/21 | | 4,267 | 4,325 |
| 5% 7/1/25 | | 5,570 | 6,062 |
| DDR Corp.: | | | |
| 3.625% 2/1/25 | | 3,968 | 4,094 |
| 4.25% 2/1/26 | | 5,505 | 5,870 |
| 4.625% 7/15/22 | | 1,402 | 1,470 |
| Duke Realty LP: | | | |
| 3.625% 4/15/23 | | 3,152 | 3,300 |
| 3.75% 12/1/24 | | 2,549 | 2,727 |
| 3.875% 10/15/22 | | 5,452 | 5,715 |
| Equity One, Inc. 3.75% 11/15/22 | | 8,200 | 8,546 |
| HCP, Inc.: | | | |
| 3.25% 7/15/26 | | 1,040 | 1,075 |
| 3.4% 2/1/25 | | 7,000 | 7,308 |
| 3.5% 7/15/29 | | 1,189 | 1,256 |
| 3.875% 8/15/24 | | 13,000 | 13,992 |
| Hudson Pacific Properties LP 4.65% 4/1/29 | | 14,039 | 15,780 |
| Lexington Corporate Properties Trust 4.4% 6/15/24 | | 2,249 | 2,353 |
| Omega Healthcare Investors, Inc.: | | | |
| 4.375% 8/1/23 | | 11,855 | 12,494 |
| 4.5% 1/15/25 | | 4,460 | 4,715 |
| 4.5% 4/1/27 | | 34,977 | 37,453 |
| 4.75% 1/15/28 | | 11,399 | 12,413 |
| 4.95% 4/1/24 | | 2,101 | 2,262 |
| 5.25% 1/15/26 | | 10,420 | 11,531 |
| Retail Opportunity Investments Partnership LP: | | | |
| 4% 12/15/24 | | 1,583 | 1,620 |
| 5% 12/15/23 | | 1,140 | 1,208 |
| Store Capital Corp. 4.625% 3/15/29 | | 3,261 | 3,623 |
| Ventas Realty LP: | | | |
| 3% 1/15/30 | | 7,840 | 7,892 |
| 3.125% 6/15/23 | | 2,534 | 2,615 |
| 3.5% 2/1/25 | | 2,833 | 2,981 |
| 3.75% 5/1/24 | | 7,900 | 8,382 |
| 4% 3/1/28 | | 4,046 | 4,396 |
| 4.125% 1/15/26 | | 2,782 | 3,015 |
| 4.375% 2/1/45 | | 1,322 | 1,487 |
| Weingarten Realty Investors 3.375% 10/15/22 | | 1,228 | 1,258 |
| WP Carey, Inc.: | | | |
| 3.85% 7/15/29 | | 2,313 | 2,456 |
| 4% 2/1/25 | | 9,404 | 9,922 |
| | | | 239,209 |
| Real Estate Management & Development - 0.3% | | | |
| Brandywine Operating Partnership LP: | | | |
| 3.95% 2/15/23 | | 9,479 | 9,916 |
| 3.95% 11/15/27 | | 7,910 | 8,340 |
| 4.1% 10/1/24 | | 6,548 | 6,938 |
| 4.55% 10/1/29 | | 7,034 | 7,692 |
| Digital Realty Trust LP: | | | |
| 3.95% 7/1/22 | | 5,951 | 6,233 |
| 4.75% 10/1/25 | | 6,539 | 7,255 |
| Liberty Property LP: | | | |
| 3.375% 6/15/23 | | 3,313 | 3,439 |
| 4.125% 6/15/22 | | 3,219 | 3,372 |
| 4.75% 10/1/20 | | 8,747 | 8,934 |
| Mack-Cali Realty LP: | | | |
| 3.15% 5/15/23 | | 7,438 | 7,072 |
| 4.5% 4/18/22 | | 2,016 | 2,025 |
| Post Apartment Homes LP 3.375% 12/1/22 | | 1,364 | 1,409 |
| Tanger Properties LP: | | | |
| 3.125% 9/1/26 | | 5,880 | 5,826 |
| 3.75% 12/1/24 | | 5,711 | 5,875 |
| 3.875% 12/1/23 | | 2,716 | 2,814 |
| | | | 87,140 |
|
| TOTAL REAL ESTATE | | | 326,349 |
|
| UTILITIES - 0.6% | | | |
| Electric Utilities - 0.4% | | | |
| Cleco Corporate Holdings LLC 3.743% 5/1/26 | | 12,553 | 13,096 |
| Duquesne Light Holdings, Inc.: | | | |
| 5.9% 12/1/21 (g) | | 5,539 | 5,911 |
| 6.4% 9/15/20 (g) | | 14,254 | 14,789 |
| FirstEnergy Corp.: | | | |
| 4.25% 3/15/23 | | 27,079 | 28,776 |
| 7.375% 11/15/31 | | 35,412 | 50,778 |
| IPALCO Enterprises, Inc.: | | | |
| 3.45% 7/15/20 | | 13,932 | 14,016 |
| 3.7% 9/1/24 | | 3,782 | 3,957 |
| LG&E and KU Energy LLC 3.75% 11/15/20 | | 1,034 | 1,050 |
| NV Energy, Inc. 6.25% 11/15/20 | | 1,957 | 2,046 |
| TECO Finance, Inc. 5.15% 3/15/20 | | 164 | 166 |
| | | | 134,585 |
| Gas Utilities - 0.0% | | | |
| Southern Natural Gas Co./Southern Natural Issuing Corp. 4.4% 6/15/21 | | 2,473 | 2,544 |
| Independent Power and Renewable Electricity Producers - 0.0% | | | |
| Emera U.S. Finance LP: | | | |
| 2.7% 6/15/21 | | 2,321 | 2,338 |
| 3.55% 6/15/26 | | 3,712 | 3,918 |
| | | | 6,256 |
| Multi-Utilities - 0.2% | | | |
| Dominion Energy, Inc.: | | | |
| 3 month U.S. LIBOR + 2.300% 4.6299% 9/30/66 (h)(i) | | 20,448 | 19,119 |
| 3 month U.S. LIBOR + 2.825% 5.1549% 6/30/66 (h)(i) | | 5,485 | 5,183 |
| NiSource, Inc. 2.95% 9/1/29 | | 15,417 | 15,762 |
| Puget Energy, Inc. 6% 9/1/21 | | 813 | 868 |
| Wisconsin Energy Corp. 3 month U.S. LIBOR + 2.113% 4.2706% 5/15/67 (h)(i) | | 4,882 | 4,129 |
| | | | 45,061 |
|
| TOTAL UTILITIES | | | 188,446 |
|
| TOTAL NONCONVERTIBLE BONDS | | | |
| (Cost $3,609,829) | | | 3,874,532 |
|
| U.S. Government and Government Agency Obligations - 9.5% | | | |
| U.S. Treasury Inflation-Protected Obligations - 1.2% | | | |
| U.S. Treasury Inflation-Indexed Bonds: | | | |
| 0.75% 2/15/45 | | $61,426 | $67,088 |
| 1% 2/15/46 | | 223 | 258 |
| 1% 2/15/49 | | 14,424 | 17,028 |
| U.S. Treasury Inflation-Indexed Notes: | | | |
| 0.125% 7/15/26 | | 17,632 | 17,841 |
| 0.375% 1/15/27 | | 31,726 | 32,576 |
| 0.625% 1/15/26 | | 98,511 | 102,291 |
| 0.75% 7/15/28 | | 99,266 | 106,189 |
| 0.875% 1/15/29 | | 40,465 | 43,812 |
|
| TOTAL U.S. TREASURY INFLATION-PROTECTED OBLIGATIONS | | | 387,083 |
|
| U.S. Treasury Obligations - 8.3% | | | |
| U.S. Treasury Bills, yield at date of purchase 2.11% to 2.29% 9/5/19 to 9/19/19 (j) | | 10,920 | 10,913 |
| U.S. Treasury Bonds: | | | |
| 2.75% 11/15/47 | | 34,846 | 40,758 |
| 3% 2/15/49 | | 310,172 | 382,117 |
| U.S. Treasury Notes: | | | |
| 1.375% 8/31/26 | | 240,168 | 238,901 |
| 1.625% 8/15/29 | | 132,000 | 133,500 |
| 1.75% 6/30/24 | | 64,400 | 65,436 |
| 1.875% 3/31/22 | | 60,292 | 60,914 |
| 1.875% 7/31/22 | | 98,619 | 99,825 |
| 2% 12/31/21 | | 275,692 | 278,858 |
| 2.125% 12/31/22 | | 201,389 | 205,960 |
| 2.125% 3/31/24 | | 80,855 | 83,385 |
| 2.125% 7/31/24 | | 236,093 | 244,052 |
| 2.125% 11/30/24 | | 137,131 | 141,984 |
| 2.125% 5/31/26 | | 213,245 | 222,408 |
| 2.25% 4/30/24 | | 62,640 | 64,996 |
| 2.25% 12/31/24 | | 157,034 | 163,696 |
| 2.25% 3/31/26 | | 35,600 | 37,377 |
| 2.375% 4/30/26 | | 56,437 | 59,726 |
| 2.5% 1/31/24 | | 80,000 | 83,681 |
| 2.625% 6/30/23 | | 105,807 | 110,531 |
| 3.125% 11/15/28 | | 37,220 | 42,392 |
|
| TOTAL U.S. TREASURY OBLIGATIONS | | | 2,771,410 |
|
| TOTAL U.S. GOVERNMENT AND GOVERNMENT AGENCY OBLIGATIONS | | | |
| (Cost $2,990,869) | | | 3,158,493 |
|
| Asset-Backed Securities - 0.7% | | | |
| AASET Trust: | | | |
| Series 2018-1A Class A, 3.844% 1/16/38 (g) | | $6,455 | $6,525 |
| Series 2019-1 Class A, 3.844% 5/15/39 (g) | | 7,605 | 7,656 |
| Aimco Series 2019-10A Class A, 3 month U.S. LIBOR + 1.320% 3.6184% 7/22/32 (g)(h)(i) | | 11,384 | 11,384 |
| Ares Xli Clo Ltd. / Ares Xli Cl Series 2016-41A Class AR, 3 month U.S. LIBOR + 1.200% 3.5034% 1/15/29 (g)(h)(i) | | 12,409 | 12,405 |
| Blackbird Capital Aircraft Series 2016-1A: | | | |
| Class A, 4.213% 12/16/41 (g) | | 15,365 | 15,944 |
| Class AA, 2.487% 12/16/41 (g) | | 3,136 | 3,133 |
| Castlelake Aircraft Securitization Trust Series 2019-1A: | | | |
| Class A, 3.967% 4/15/39 (g) | | 11,385 | 11,620 |
| Class B, 5.095% 4/15/39 (g) | | 3,905 | 3,989 |
| Castlelake Aircraft Structured Trust Series 2018-1 Class A, 4.125% 6/15/43 (g) | | 11,432 | 11,718 |
| Cedar Funding Ltd.: | | | |
| Series 2019-10A Class A, 3 month U.S. LIBOR + 1.340% 0% 10/20/32 (g)(h)(i)(k) | | 8,039 | 8,039 |
| Series 2019-11A Class A1A, 3 month U.S. LIBOR + 1.350% 3.8749% 5/29/32 (g)(h)(i) | | 5,760 | 5,757 |
| Countrywide Home Loans, Inc. Series 2004-7 Class AF5, 4.706% 1/25/35 (h) | | 68 | 68 |
| DB Master Finance LLC Series 2017-1A: | | | |
| Class A2I, 3.629% 11/20/47 (g) | | 6,080 | 6,207 |
| Class A2II, 4.03% 11/20/47 (g) | | 10,257 | 10,700 |
| Dryden Senior Loan Fund: | | | |
| Series 2014-36A Class AR2, 3 month U.S. LIBOR + 1.280% 3.5834% 4/15/29 (g)(h)(i) | | 13,566 | 13,601 |
| Series 2019-72A Class A, 3 month U.S. LIBOR + 1.330% 3.7622% 5/15/32 (g)(h)(i) | | 9,422 | 9,406 |
| First Franklin Mortgage Loan Trust Series 2004-FF2 Class M3, 1 month U.S. LIBOR + 0.825% 2.9703% 3/25/34 (h)(i) | | 2 | 2 |
| Horizon Aircraft Finance I Ltd. Series 2018-1 Class A, 4.458% 12/15/38 (g) | | 5,362 | 5,605 |
| Horizon Aircraft Finance Ltd. Series 2019-1 Class A, 3.721% 7/15/39 (g) | | 5,250 | 5,307 |
| Madison Park Funding Ltd.: | | | |
| Series 2012-10A Class AR2, 3 month U.S. LIBOR + 1.220% 3.4976% 1/20/29 (g)(h)(i) | | 4,621 | 4,619 |
| Series 2019-37A Class A1, 3 month U.S. LIBOR + 1.300% 3.603% 7/15/32 (g)(h)(i) | | 11,363 | 11,356 |
| Magnetite CLO Ltd. Series 2019-21A Class A, 3 month U.S. LIBOR + 1.280% 3.9086% 4/20/30 (g)(h)(i) | | 10,257 | 10,255 |
| New Century Home Equity Loan Trust Series 2005-4 Class M2, 1 month U.S. LIBOR + 0.510% 2.6553% 9/25/35 (h)(i) | | 804 | 804 |
| Niagara Park CLO, Ltd. Series 2019-1A Class A, 3 month U.S. LIBOR + 1.300% 3.6939% 7/17/32 (g)(h)(i) | | 11,362 | 11,356 |
| Park Place Securities, Inc. Series 2005-WCH1 Class M4, 1 month U.S. LIBOR + 1.245% 3.3903% 1/25/36 (h)(i) | | 1,620 | 1,627 |
| Project Silver Series 2019-1 Class A, 3.967% 7/15/44 (g) | | 9,508 | 9,710 |
| Terwin Mortgage Trust Series 2003-4HE Class A1, 1 month U.S. LIBOR + 0.860% 3.0053% 9/25/34 (h)(i) | | 27 | 27 |
| Thunderbolt Aircraft Lease Ltd. Series 2018-A Class A, 4.147% 9/15/38 (g) | | 11,996 | 12,359 |
| Trapeza CDO XII Ltd./Trapeza CDO XII, Inc. Series 2007-12A Class B, 3 month U.S. LIBOR + 0.560% 2.8626% 4/6/42 (e)(g)(h)(i) | | 2,116 | 1,579 |
| Verde CLO Ltd. Series 2019-1A Class A, 3 month U.S. LIBOR + 1.350% 3.9137% 4/15/32 (g)(h)(i) | | 11,407 | 11,401 |
| Voya CLO Ltd. Series 2019-2A Class A, 3 month U.S. LIBOR + 1.270% 3.5229% 7/20/32 (g)(h)(i) | | 11,889 | 11,883 |
| TOTAL ASSET-BACKED SECURITIES | | | |
| (Cost $230,213) | | | 236,042 |
|
| Collateralized Mortgage Obligations - 0.0% | | | |
| Private Sponsor - 0.0% | | | |
| Bear Stearns ALT-A Trust floater Series 2005-1 Class A1, 1 month U.S. LIBOR + 0.560% 2.7053% 1/25/35 (h)(i) | | 79 | 78 |
| Merrill Lynch Alternative Note Asset Trust floater Series 2007-OAR1 Class A1, 1 month U.S. LIBOR + 0.170% 2.436% 2/25/37 (h)(i) | | 87 | 88 |
| Opteum Mortgage Acceptance Corp. floater Series 2005-3 Class APT, 1 month U.S. LIBOR + 0.290% 2.4353% 7/25/35 (h)(i) | | 88 | 88 |
| Sequoia Mortgage Trust floater Series 2004-6 Class A3B, 6 month U.S. LIBOR + 0.880% 3.178% 7/20/34 (h)(i) | | 12 | 11 |
| Thornburg Mortgage Securities Trust floater Series 2003-4 Class A1, 1 month U.S. LIBOR + 0.640% 2.7853% 9/25/43 (h)(i) | | 863 | 869 |
|
| TOTAL PRIVATE SPONSOR | | | 1,134 |
|
| U.S. Government Agency - 0.0% | | | |
| Ginnie Mae guaranteed REMIC pass-thru certificates: | | | |
| sequential payer Series 2013-H06 Class HA, 1.65% 1/20/63 (l) | | 3,134 | 3,119 |
| Series 2015-H21 Class JA, 2.5% 6/20/65 (l) | | 2,673 | 2,671 |
|
| TOTAL U.S. GOVERNMENT AGENCY | | | 5,790 |
|
| TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS | | | |
| (Cost $6,867) | | | 6,924 |
|
| Commercial Mortgage Securities - 0.5% | | | |
| Asset Securitization Corp. Series 1997-D5 Class PS1, 1.8322% 2/14/43 (h)(m) | | 6 | 0 |
| Bayview Commercial Asset Trust: | | | |
| Series 2004-1, Class IO, 1.25% 4/25/34 (g)(m) | | 493 | 19 |
| Series 2006-3A, Class IO, 0% 10/25/36 (e)(g)(h)(m) | | 8,814 | 0 |
| Benchmark Mortgage Trust Series 2018-B8 Class A5, 4.2317% 1/15/52 | | 10,492 | 12,158 |
| BX Trust: | | | |
| floater: | | | |
| Series 2018-EXCL Class D, 1 month U.S. LIBOR + 2.625% 4.8201% 9/15/37 (g)(h)(i) | | 3,529 | 3,529 |
| Series 2018-IND Class F, 1 month U.S. LIBOR + 1.800% 3.9951% 11/15/35 (g)(h)(i) | | 4,409 | 4,421 |
| Series 2019-IMC: | | | |
| Class B, 1 month U.S. LIBOR + 1.300% 3.4951% 4/15/34 (g)(h)(i) | | 5,946 | 5,946 |
| Class C, 1 month U.S. LIBOR + 1.600% 3.7951% 4/15/34 (g)(h)(i) | | 3,931 | 3,931 |
| Class D, 1 month U.S. LIBOR + 1.900% 4.0951% 4/15/34 (g)(h)(i) | | 4,126 | 4,139 |
| floater, sequential payer Series 2019-IMC Class A, 1 month U.S. LIBOR + 1.000% 3.1951% 4/15/34 (g)(h)(i) | | 9,800 | 9,800 |
| CHC Commercial Mortgage Trust floater Series 2019-CHC: | | | |
| Class A, 1 month U.S. LIBOR + 1.120% 3.3151% 6/15/34 (g)(h)(i) | | 14,433 | 14,433 |
| Class B, 1 month U.S. LIBOR + 1.500% 3.6951% 6/15/34 (g)(h)(i) | | 2,841 | 2,841 |
| Class C, 1 month U.S. LIBOR + 1.750% 3.9451% 6/15/34 (g)(h)(i) | | 3,210 | 3,210 |
| Citigroup Commercial Mortgage Trust Series 2018-C6 Class A4, 4.412% 11/10/51 | | 1,985 | 2,325 |
| Credit Suisse Mortgage Trust Series 2018-SITE: | | | |
| Class A, 4.284% 4/15/36 (g) | | 6,999 | 7,506 |
| Class B, 4.5349% 4/15/36 (g) | | 2,105 | 2,253 |
| Class C, 4.9414% 4/15/36 (g)(h) | | 1,444 | 1,539 |
| Class D, 4.9414% 4/15/36 (g)(h) | | 2,888 | 3,029 |
| CSAIL Commercial Mtg Trust Series 2018-C14 Class A4 4.4216% 11/15/51 | | 5,179 | 6,045 |
| JPMorgan Chase Commercial Mortgage Securities Trust Series 2018-WPT: | | | |
| Class CFX, 4.9498% 7/5/33 (g) | | 1,323 | 1,429 |
| Class DFX, 5.3503% 7/5/33 (g) | | 2,035 | 2,201 |
| Class EFX, 5.5422% 7/5/33 (g) | | 2,784 | 2,982 |
| Morgan Stanley Capital I Trust Series 2018-H4 Class A4, 4.31% 12/15/51 | | 17,589 | 20,486 |
| MSCG Trust Series 2016-SNR: | | | |
| Class A, 3.4596% 11/15/34 (g)(h) | | 7,121 | 7,171 |
| Class B, 4.181% 11/15/34 (g) | | 3,007 | 3,056 |
| Class C, 5.205% 11/15/34 (g) | | 2,110 | 2,162 |
| RETL floater Series 2019-RVP Class C, 1 month U.S. LIBOR + 2.100% 4.2951% 3/15/36 (g)(h)(i) | | 8,998 | 9,035 |
| Wells Fargo Commercial Mortgage Trust Series 2018-C48 Class A5, 4.302% 1/15/52 | | 12,493 | 14,475 |
| TOTAL COMMERCIAL MORTGAGE SECURITIES | | | |
| (Cost $143,404) | | | 150,121 |
|
| Municipal Securities - 0.4% | | | |
| California Gen. Oblig. Series 2009: | | | |
| 7.35% 11/1/39 | | $1,255 | $2,006 |
| 7.5% 4/1/34 | | 8,780 | 13,832 |
| 7.55% 4/1/39 | | 17,675 | 29,636 |
| Chicago Gen. Oblig.: | | | |
| (Taxable Proj.): | | | |
| Series 2008 B, 5.63% 1/1/22 | | 920 | 941 |
| Series 2010 C1, 7.781% 1/1/35 | | 1,665 | 2,122 |
| Series 2012 B, 5.432% 1/1/42 | | 6,845 | 7,113 |
| 6.05% 1/1/29 | | 365 | 392 |
| Illinois Gen. Oblig.: | | | |
| Series 2003: | | | |
| 4.95% 6/1/23 | | 7,833 | 8,245 |
| 5.1% 6/1/33 | | 16,965 | 18,462 |
| Series 2010-1, 6.63% 2/1/35 | | 17,960 | 21,393 |
| Series 2010-3: | | | |
| 6.725% 4/1/35 | | 10,580 | 12,560 |
| 7.35% 7/1/35 | | 5,140 | 6,257 |
| Series 2010-5, 6.2% 7/1/21 | | 1,648 | 1,728 |
| Series 2013, 4% 12/1/20 | | 7,040 | 7,151 |
| TOTAL MUNICIPAL SECURITIES | | | |
| (Cost $113,203) | | | 131,838 |
|
| Foreign Government and Government Agency Obligations - 0.0% | | | |
Brazilian Federative Republic 4.625% 1/13/28
(Cost $3,828) | | $3,841 | $4,133 |
|
| Bank Notes - 0.2% | | | |
| Capital One NA 2.95% 7/23/21 | | 8,837 | 8,948 |
| Discover Bank: | | | |
| (Delaware) 3.2% 8/9/21 | | $10,936 | $11,140 |
| 3.1% 6/4/20 | | 11,505 | 11,566 |
| 3.35% 2/6/23 | | 5,490 | 5,681 |
| 4.682% 8/9/28 (h) | | 14,042 | 14,731 |
| 8.7% 11/18/19 | | 745 | 754 |
| Synchrony Bank 3.65% 5/24/21 | | 8,499 | 8,672 |
| TOTAL BANK NOTES | | | |
| (Cost $60,062) | | | 61,492 |
| | | Shares | Value (000s) |
|
| Fixed-Income Funds - 10.0% | | | |
| Fidelity High Income Central Fund (n) | | 6,813,280 | $758,795 |
| Fidelity Mortgage Backed Securities Central Fund (n) | | 23,570,448 | 2,590,157 |
| TOTAL FIXED-INCOME FUNDS | | | |
| (Cost $3,211,572) | | | 3,348,952 |
|
| Money Market Funds - 2.3% | | | |
| Fidelity Cash Central Fund 2.13% (o) | | 659,595,202 | 659,727 |
| Fidelity Securities Lending Cash Central Fund 2.13% (o)(p) | | 120,196,076 | 120,208 |
| TOTAL MONEY MARKET FUNDS | | | |
| (Cost $779,884) | | | 779,935 |
| TOTAL INVESTMENT IN SECURITIES - 100.7% | | | |
| (Cost $28,096,033) | | | 33,640,979 |
| NET OTHER ASSETS (LIABILITIES) - (0.7)% | | | (242,162) |
| NET ASSETS - 100% | | | $33,398,817 |
| Futures Contracts | | | | | |
| | Number of contracts | Expiration Date | Notional Amount (000s) | Value (000s) | Unrealized Appreciation/(Depreciation) (000s) |
| Purchased | | | | | |
| Equity Index Contracts | | | | | |
| CME E-mini S&P 500 Index Contracts (United States) | 400 | Sept. 2019 | $58,496 | $1,208 | $1,208 |
The notional amount of futures purchased as a percentage of Net Assets is 0.2%
Values shown as $0 in the Schedule of Investments may reflect amounts less than $500.
Legend
(a) Security or a portion of the security is on loan at period end.
(b) Non-income producing
(c) Investment is owned by a wholly-owned subsidiary (Subsidiary) that is treated as a corporation for U.S. tax purposes.
(d) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $52,292,000 or 0.2% of net assets.
(e) Level 3 security
(f) Affiliated company
(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 $717,419,000 or 2.1% of net assets.
(h) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end.
(i) Coupon is indexed to a floating interest rate which may be multiplied by a specified factor and/or subject to caps or floors.
(j) 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 $2,663,000.
(k) Security or a portion of the security purchased on a delayed delivery or when-issued basis.
(l) Represents an investment in an underlying pool of reverse mortgages which typically do not require regular principal and interest payments as repayment is deferred until a maturity event.
(m) Security represents right to receive monthly interest payments on an underlying pool of mortgages or assets. Principal shown is the outstanding par amount of the pool as of the end of the period.
(n) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. A complete unaudited schedule of portfolio holdings for each Fidelity Central Fund is filed with the SEC for the first and third quarters of each fiscal year on Form N-PORT and is available upon request or at the SEC's website at www.sec.gov. An unaudited holdings listing for the Fund, which presents direct holdings as well as the pro-rata share of securities and other investments held indirectly through its investment in underlying non-money market Fidelity Central Funds, is available at fidelity.com and/or institutional.fidelity.com, as applicable. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(o) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(p) 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 | $27,888 |
| StepStone Group Holdings LLC | 8/19/19 | $8,250 |
| StepStone Group LP Class A | 8/19/19 | $8,250 |
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
| Fund | Income earned |
| | (Amounts in thousands) |
| Fidelity Cash Central Fund | $17,092 |
| Fidelity High Income Central Fund | 52,046 |
| Fidelity Mortgage Backed Securities Central Fund | 75,702 |
| Fidelity Securities Lending Cash Central Fund | 1,482 |
| Total | $146,322 |
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.
Fiscal year to date information regarding the Fund’s investments in non-Money Market Central Funds, including the ownership percentage, is presented below.
| Fund (Amounts in thousands) | Value, beginning of period | Purchases | Sales Proceeds | Realized Gain/Loss | Change in Unrealized appreciation (depreciation) | Value, end of period | % ownership, end of period |
| Fidelity High Income Central Fund | $715,546 | $48,333 | $-- | $-- | $(5,084) | $758,795 | 29.2% |
| Fidelity Mortgage Backed Securities Central Fund | 2,366,031 | 236,702 | 120,102 | 804 | 106,722 | 2,590,157 | 44.6% |
| Total | $3,081,577 | $285,035 | $120,102 | $804 | $101,638 | $3,348,952 | |
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 |
| MACOM Technology Solutions Holdings, Inc. | $74,037 | $15,210 | $66,884 | $-- | $(13,820) | $(8,543) | $-- |
| Sunrun, Inc. | 161,066 | 3,140 | 87,162 | -- | 37,886 | (7,634) | 107,296 |
| Vivint Solar, Inc. | 43,267 | 9,227 | 4,658 | -- | 1,243 | 27,081 | 76,160 |
| Total | $278,370 | $27,577 | $158,704 | $-- | $25,309 | $10,904 | $183,456 |
Investment Valuation
The following is a summary of the inputs used, as of August 31, 2019, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| | Valuation Inputs at Reporting Date: |
| Description | Total | Level 1 | Level 2 | Level 3 |
| (Amounts in thousands) | | | | |
| Investments in Securities: | | | | |
| Equities: | | | | |
| Communication Services | $2,236,527 | $2,149,988 | $86,539 | $-- |
| Consumer Discretionary | 2,518,622 | 2,312,368 | 206,254 | -- |
| Consumer Staples | 1,607,654 | 1,495,478 | 112,176 | -- |
| Energy | 995,863 | 995,863 | -- | -- |
| Financials | 2,801,836 | 2,785,336 | -- | 16,500 |
| Health Care | 3,143,004 | 2,958,183 | 184,821 | -- |
| Industrials | 2,183,728 | 2,108,401 | 75,327 | -- |
| Information Technology | 4,400,511 | 4,382,559 | 17,952 | -- |
| Materials | 486,072 | 486,072 | -- | -- |
| Real Estate | 777,365 | 741,573 | -- | 35,792 |
| Utilities | 737,335 | 737,335 | -- | -- |
| Corporate Bonds | 3,874,532 | -- | 3,874,532 | -- |
| U.S. Government and Government Agency Obligations | 3,158,493 | -- | 3,158,493 | -- |
| Asset-Backed Securities | 236,042 | -- | 234,463 | 1,579 |
| Collateralized Mortgage Obligations | 6,924 | -- | 6,924 | -- |
| Commercial Mortgage Securities | 150,121 | -- | 150,121 | -- |
| Municipal Securities | 131,838 | -- | 131,838 | -- |
| Foreign Government and Government Agency Obligations | 4,133 | -- | 4,133 | -- |
| Bank Notes | 61,492 | -- | 61,492 | -- |
| Fixed-Income Funds | 3,348,952 | 3,348,952 | -- | -- |
| Money Market Funds | 779,935 | 779,935 | -- | -- |
| Total Investments in Securities: | $33,640,979 | $25,282,043 | $8,305,065 | $53,871 |
| Derivative Instruments: | | | | |
| Assets | | | | |
| Futures Contracts | $1,208 | $1,208 | $-- | $-- |
| Total Assets | $1,208 | $1,208 | $-- | $-- |
| Total Derivative Instruments: | $1,208 | $1,208 | $-- | $-- |
Value of Derivative Instruments
The following table is a summary of the Fund's value of derivative instruments by primary risk exposure as of August 31, 2019. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements.
| Primary Risk Exposure / Derivative Type | Value |
| | Asset | Liability |
| (Amounts in thousands) | | |
| Equity Risk | | |
| Futures Contracts(a) | $1,208 | $0 |
| Total Equity Risk | 1,208 | 0 |
| Total Value of Derivatives | $1,208 | $0 |
(a) Reflects gross cumulative appreciation (depreciation) on futures contracts as presented in the Schedule of Investments. In the Statement of Assets and Liabilities, the period end daily variation margin is included in receivable or payable for daily variation margin on futures contracts, and the net cumulative appreciation (depreciation) is included in distributable earnings.
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 | 18.3% |
| AAA,AA,A | 3.4% |
| BBB | 8.1% |
| BB | 2.3% |
| B | 0.6% |
| CCC,CC,C | 0.6% |
| D | 0.1% |
| Not Rated | 0.4% |
| Equities | 65.9% |
| Short-Term Investments and Net Other Assets | 0.3% |
| | 100.0% |
We have used ratings from Moody's Investors Service, Inc. Where Moody's® ratings are not available, we have used S&P® ratings. All ratings are as of the date indicated and do not reflect subsequent changes. Percentages are adjusted for the effect of futures contracts, if applicable.
The information in the above tables is based on the combined investments of the fund and its pro-rata share of the investments of Fidelity's Fixed-Income Central Funds
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) | | August 31, 2019 |
| Assets | | |
Investment in securities, at value (including securities loaned of $117,639) — See accompanying schedule:
Unaffiliated issuers (cost $24,022,753) | $29,328,636 | |
| Fidelity Central Funds (cost $3,991,456) | 4,128,887 | |
| Other affiliated issuers (cost $81,824) | 183,456 | |
| Total Investment in Securities (cost $28,096,033) | | $33,640,979 |
| Cash | | 11 |
| Foreign currency held at value (cost $270) | | 270 |
| Receivable for investments sold | | 156,832 |
| Receivable for fund shares sold | | 20,009 |
| Dividends receivable | | 43,745 |
| Interest receivable | | 54,167 |
| Distributions receivable from Fidelity Central Funds | | 1,081 |
| Prepaid expenses | | 75 |
| Other receivables | | 1,828 |
| Total assets | | 33,918,997 |
| Liabilities | | |
| Payable for investments purchased | | |
| Regular delivery | $351,724 | |
| Delayed delivery | 8,039 | |
| Payable for fund shares redeemed | 24,443 | |
| Accrued management fee | 10,661 | |
| Payable for daily variation margin on futures contracts | 38 | |
| Other affiliated payables | 3,188 | |
| Other payables and accrued expenses | 1,878 | |
| Collateral on securities loaned | 120,209 | |
| Total liabilities | | 520,180 |
| Net Assets | | $33,398,817 |
| Net Assets consist of: | | |
| Paid in capital | | $27,754,826 |
| Total distributable earnings (loss) | | 5,643,991 |
| Net Assets | | $33,398,817 |
| Net Asset Value and Maximum Offering Price | | |
| Balanced: | | |
| Net Asset Value, offering price and redemption price per share ($24,969,390 ÷ 1,060,508 shares) | | $23.54 |
| Class K: | | |
| Net Asset Value, offering price and redemption price per share ($8,429,427 ÷ 357,982 shares) | | $23.55 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| Amounts in thousands | | Year ended August 31, 2019 |
| Investment Income | | |
| Dividends | | $383,111 |
| Interest (including $325 from security lending) | | 240,398 |
| Income from Fidelity Central Funds (including $1,482 from security lending) | | 140,073 |
| Total income | | 763,582 |
| Expenses | | |
| Management fee | $126,071 | |
| Transfer agent fees | 35,260 | |
| Accounting and security lending fees | 2,345 | |
| Custodian fees and expenses | 594 | |
| Independent trustees' fees and expenses | 192 | |
| Registration fees | 660 | |
| Audit | 123 | |
| Legal | 69 | |
| Miscellaneous | 217 | |
| Total expenses before reductions | 165,531 | |
| Expense reductions | (955) | |
| Total expenses after reductions | | 164,576 |
| Net investment income (loss) | | 599,006 |
| Realized and Unrealized Gain (Loss) | | |
| Net realized gain (loss) on: | | |
| Investment securities: | | |
| Unaffiliated issuers | 462,710 | |
| Fidelity Central Funds | 838 | |
| Other affiliated issuers | 25,309 | |
| Foreign currency transactions | 37 | |
| Futures contracts | 15,472 | |
| Swaps | (159) | |
| Capital gain distributions from Fidelity Central Funds | 6,249 | |
| Total net realized gain (loss) | | 510,456 |
| Change in net unrealized appreciation (depreciation) on: | | |
| Investment securities: | | |
| Unaffiliated issuers | (437,283) | |
| Fidelity Central Funds | 101,610 | |
| Other affiliated issuers | 10,904 | |
| Assets and liabilities in foreign currencies | (50) | |
| Futures contracts | (10,614) | |
| Swaps | 155 | |
| Total change in net unrealized appreciation (depreciation) | | (335,278) |
| Net gain (loss) | | 175,178 |
| Net increase (decrease) in net assets resulting from operations | | $774,184 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Amounts in thousands | Year ended August 31, 2019 | Year ended August 31, 2018 |
| Increase (Decrease) in Net Assets | | |
| Operations | | |
| Net investment income (loss) | $599,006 | $513,482 |
| Net realized gain (loss) | 510,456 | 2,804,960 |
| Change in net unrealized appreciation (depreciation) | (335,278) | 629,349 |
| Net increase (decrease) in net assets resulting from operations | 774,184 | 3,947,791 |
| Distributions to shareholders | (3,135,825) | – |
| Distributions to shareholders from net investment income | – | (499,431) |
| Distributions to shareholders from net realized gain | – | (1,956,992) |
| Total distributions | (3,135,825) | (2,456,423) |
| Share transactions - net increase (decrease) | 1,514,959 | 1,303,346 |
| Total increase (decrease) in net assets | (846,682) | 2,794,714 |
| Net Assets | | |
| Beginning of period | 34,245,499 | 31,450,785 |
| End of period | $33,398,817 | $34,245,499 |
| Other Information | | |
| Undistributed net investment income end of period | | $116,764 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Balanced Fund
| Years ended August 31, | 2019 | 2018 | 2017 | 2016 | 2015 |
| Selected Per–Share Data | | | | | |
| Net asset value, beginning of period | $25.33 | $24.27 | $22.32 | $22.33 | $24.40 |
| Income from Investment Operations | | | | | |
| Net investment income (loss)A | .42 | .38 | .38 | .37 | .37 |
| Net realized and unrealized gain (loss) | .08 | 2.55 | 2.26 | 1.25 | (.23) |
| Total from investment operations | .50 | 2.93 | 2.64 | 1.62 | .14 |
| Distributions from net investment income | (.40) | (.37) | (.37) | (.36) | (.35) |
| Distributions from net realized gain | (1.89) | (1.50) | (.32) | (1.27) | (1.86) |
| Total distributions | (2.29) | (1.87) | (.69) | (1.63) | (2.21) |
| Net asset value, end of period | $23.54 | $25.33 | $24.27 | $22.32 | $22.33 |
| Total ReturnB | 2.61% | 12.78% | 12.12% | 7.73% | .86% |
| Ratios to Average Net AssetsC,D | | | | | |
| Expenses before reductions | .53% | .53% | .55% | .55% | .56% |
| Expenses net of fee waivers, if any | .53% | .53% | .54% | .55% | .55% |
| Expenses net of all reductions | .53% | .53% | .54% | .55% | .55% |
| Net investment income (loss) | 1.82% | 1.55% | 1.65% | 1.71% | 1.59% |
| Supplemental Data | | | | | |
| Net assets, end of period (in millions) | $24,969 | $25,088 | $22,915 | $20,840 | $20,176 |
| Portfolio turnover rateE | 60% | 66%F | 91% | 64% | 128% |
A Calculated based on average shares outstanding during the period.
B Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
C Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses of any underlying non-money market Fidelity Central Funds were less than .005%.
D Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
E Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
F Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Fidelity Balanced Fund Class K
| Years ended August 31, | 2019 | 2018 | 2017 | 2016 | 2015 |
| Selected Per–Share Data | | | | | |
| Net asset value, beginning of period | $25.33 | $24.27 | $22.32 | $22.33 | $24.40 |
| Income from Investment Operations | | | | | |
| Net investment income (loss)A | .44 | .40 | .40 | .39 | .39 |
| Net realized and unrealized gain (loss) | .09 | 2.55 | 2.26 | 1.25 | (.23) |
| Total from investment operations | .53 | 2.95 | 2.66 | 1.64 | .16 |
| Distributions from net investment income | (.42) | (.39) | (.39) | (.38) | (.37) |
| Distributions from net realized gain | (1.89) | (1.50) | (.32) | (1.27) | (1.86) |
| Total distributions | (2.31) | (1.89) | (.71) | (1.65) | (2.23) |
| Net asset value, end of period | $23.55 | $25.33 | $24.27 | $22.32 | $22.33 |
| Total ReturnB | 2.74% | 12.87% | 12.22% | 7.84% | .95% |
| Ratios to Average Net AssetsC,D | | | | | |
| Expenses before reductions | .45% | .45% | .46% | .46% | .46% |
| Expenses net of fee waivers, if any | .45% | .45% | .45% | .46% | .46% |
| Expenses net of all reductions | .44% | .44% | .45% | .45% | .46% |
| Net investment income (loss) | 1.91% | 1.63% | 1.74% | 1.81% | 1.68% |
| Supplemental Data | | | | | |
| Net assets, end of period (in millions) | $8,429 | $9,157 | $8,536 | $7,984 | $7,695 |
| Portfolio turnover rateE | 60% | 66%F | 91% | 64% | 128% |
A Calculated based on average shares outstanding during the period.
B Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
C Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses of any underlying non-money market Fidelity Central Funds were less than .005%.
D Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
E Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
F Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended August 31, 2019
(Amounts in thousands except percentages)
1. Organization.
Fidelity Balanced Fund (the Fund) is a fund of Fidelity Puritan Trust (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 Balanced and Class K shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
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 Fund. These strategies are consistent with the investment objectives of the 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 Fund. The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date ranged from less than .005% to .01%. The following summarizes the Fund's investment in each non-money market Fidelity Central Fund.
| Fidelity Central Fund | Investment Manager | Investment Objective | Investment Practices | Expense Ratio(a) |
| Fidelity High Income Central Fund | FMR Co., Inc. (FMRC) | Seeks a high level of income and may also seek capital appreciation by investing primarily in debt securities, preferred stocks, and convertible securities, with an emphasis on lower-quality debt securities. | Loans & Direct Debt Instruments
Restricted Securities | Less than .005% |
| Fidelity Mortgage Backed Securities Central Fund | FIMM | Seeks a high level of income by normally investing in investment-grade mortgage-related securities and repurchase agreements for those securities. | Delayed Delivery & When Issued Securities
Futures
Options
Swaps | 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.
An unaudited holdings listing for the Fund, which presents direct holdings as well as the pro-rata share of any securities and other investments held indirectly through its investment in underlying non-money market Fidelity Central Funds, is available at fidelity.com. A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds which contain the significant accounting policies (including investment valuation policies) of those funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investments Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. Corporate bonds, bank notes, foreign government and government agency obligations, municipal securities and 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. Asset backed securities, collateralized mortgage obligations and commercial mortgage securities are valued by pricing vendors who utilize matrix pricing which considers prepayment speed assumptions, attributes of the collateral, yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
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 August 31, 2019 is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. The principal amount on inflation-indexed securities is periodically adjusted to the rate of inflation and interest is accrued based on the principal amount. The adjustments to principal due to inflation are reflected as increases or decreases to Interest in the accompanying Statement of Operations. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain. Debt obligations may be placed on non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivables when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is reasonably assured.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan) for the Fund, certain independent Trustees have elected to defer receipt of a portion of their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees of $1,275 are included in the accompanying Statement of Assets and Liabilities in other receivables and other payables and accrued expenses, respectively.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. As of August 31, 2019, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to futures contracts, swaps, foreign currency transactions, passive foreign investment companies (PFIC), market discount, short-term gain distributions from the Underlying Funds, partnerships, deferred trustees 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 | $6,175,163 |
| Gross unrealized depreciation | (812,190) |
| Net unrealized appreciation (depreciation) | $5,362,973 |
| Tax Cost | $28,278,006 |
The tax-based components of distributable earnings as of period end were as follows:
| Undistributed ordinary income | $125,562 |
| Undistributed long-term capital gain | $156,820 |
| Net unrealized appreciation (depreciation) on securities and other investments | $5,362,883 |
The tax character of distributions paid was as follows:
| | August 31, 2019 | August 31, 2018 |
| Ordinary Income | $874,913 | $ 895,677 |
| Long-term Capital Gains | 2,260,912 | 1,560,746 |
| Total | $3,135,825 | $ 2,456,423 |
Delayed Delivery Transactions and When-Issued Securities. During the period, the Fund transacted in securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. The securities purchased on a delayed delivery or when-issued basis are identified as such in the Fund's Schedule of Investments. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
Consolidated Subsidiary. The Fund invests in certain investments through a wholly-owned subsidiary ("Subsidiary"), which may be subject to federal and state taxes upon disposition.
As of period end, the Fund held an investment of $16,500 in this Subsidiary, representing .05% of the Fund's net assets. The financial statements have been consolidated and include accounts of the Fund and the Subsidiary. Accordingly, all inter-company transactions and balances have been eliminated.
New Rule Issuance. During August 2018, the U.S. Securities and Exchange Commission issued Final Rule Release No. 33-10532, Disclosure Update and Simplification. This Final Rule includes amendments specific to registered investment companies that are intended to eliminate overlap in disclosure requirements between Regulation S-X and GAAP. In accordance with these amendments, certain line-items in the Fund's financial statements have been combined or removed for the current period as outlined in the table below.
| Financial Statement | Current Line-Item Presentation (As Applicable) | Prior Line-Item Presentation (As Applicable) |
| Statement of Assets and Liabilities | Total distributable earnings (loss) | Undistributed/Distributions in excess of/Accumulated net investment income (loss)
Accumulated/Undistributed net realized gain (loss)
Net unrealized appreciation (depreciation) |
| Statement of Changes in Net Assets | N/A - removed | Undistributed/Distributions in excess of/Accumulated net investment income (loss) end of period |
| Statement of Changes in Net Assets | Distributions to shareholders | Distributions to shareholders from net investment income
Distributions to shareholders from net realized gain |
| Distributions to Shareholders Note to Financial Statements | Distributions to shareholders | Distributions to shareholders from net investment income
Distributions to shareholders from net realized gain |
4. Derivative Instruments.
Risk Exposures and the Use of Derivative Instruments. The Fund's investment objective allows the Fund to enter into various types of derivative contracts, including futures contracts and swaps. 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, to gain exposure to certain types of assets 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:
| Credit Risk | Credit risk relates to the ability of the issuer of a financial instrument to make further principal or interest payments on an obligation or commitment that it has to the Fund.
|
| Equity Risk | Equity risk relates to the fluctuations in the value of financial instruments as a result of changes in market prices (other than those arising from interest rate risk or foreign exchange risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment.
|
The Fund is also exposed to additional risks from investing in derivatives, such as liquidity risk and counterparty credit risk. Liquidity risk is the risk that the Fund will be unable to close out the derivative in the open market in a timely manner. Counterparty credit risk is the risk that the counterparty will not be able to fulfill its obligation to the Fund. Derivative counterparty credit risk is managed through formal evaluation of the creditworthiness of all potential counterparties. On certain OTC derivatives such as bi-lateral swaps, the Fund attempts to reduce its exposure to counterparty credit risk by entering into an International Swaps and Derivatives Association, Inc. (ISDA) Master Agreement with each of its counterparties. The ISDA Master Agreement gives the Fund the right to terminate all transactions traded under such agreement upon the deterioration in the credit quality of the counterparty beyond specified levels. The ISDA Master Agreement gives each party the right, upon an event of default by the other party or a termination of the agreement, to close out all transactions traded under such agreement and to net amounts owed under each transaction to one net payable by one party to the other. To mitigate counterparty credit risk on bi-lateral OTC derivatives, the Fund receives collateral in the form of cash or securities once the Fund's net unrealized appreciation on outstanding derivative contracts under an ISDA Master Agreement exceeds certain applicable thresholds, subject to certain minimum transfer provisions. The collateral received is held in segregated accounts with the Fund's custodian bank in accordance with the collateral agreements entered into between the Fund, the counterparty and the Fund's custodian bank. The Fund could experience delays and costs in gaining access to the collateral even though it is held by the Fund's custodian bank. The Fund's maximum risk of loss from counterparty credit risk related to bi-lateral OTC derivatives is generally the aggregate unrealized appreciation and unpaid counterparty payments in excess of any collateral pledged by the counterparty to the Fund. The Fund may be required to pledge collateral for the benefit of the counterparties on bi-lateral OTC derivatives in an amount not less than each counterparty's unrealized appreciation on outstanding derivative contracts, subject to certain minimum transfer provisions, and any such pledged collateral is identified in the Schedule of Investments. Exchange-traded futures contracts are not covered by the ISDA Master Agreement; however 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.
Net Realized Gain (Loss) and Change in Net Unrealized Appreciation (Depreciation) on Derivatives. The table below, which reflects the impacts of derivatives on the financial performance of the Fund, summarizes the net realized gain (loss) and change in net unrealized appreciation (depreciation) for derivatives during the period as presented in the Statement of Operations.
| Primary Risk Exposure / Derivative Type | Net Realized Gain (Loss) | Change in Net Unrealized Appreciation (Depreciation) |
| Credit Risk | | |
| Swaps | $(159) | $155 |
| Equity Risk | | |
| Futures Contracts | 15,472 | (10,614) |
| Totals | $15,313 | $(10,459) |
A summary of the value of derivatives by primary risk exposure as of period end is included at the end of the Schedule of Investments.
Futures Contracts. A futures contract is an agreement between two parties to buy or sell a specified underlying instrument for a fixed price at a specified future date. The Fund used futures contracts to manage its exposure to the stock market.
Upon entering into a futures contract, a fund is required to deposit either cash or securities (initial margin) with a clearing broker in an amount equal to a certain percentage of the face value of the contract. Futures contracts are marked-to-market daily and subsequent daily payments (variation margin) are made or received by a fund depending on the daily fluctuations in the value of the futures contracts and are recorded as unrealized appreciation or (depreciation). This receivable and/or payable, if any, is included in daily variation margin on futures contracts in the Statement of Assets and Liabilities. Realized gain or (loss) is recorded upon the expiration or closing of a futures contract. The net realized gain (loss) and change in net unrealized appreciation (depreciation) on futures contracts during the period is presented in the Statement of Operations.
Any open futures contracts at period end are presented in the Schedule of Investments under the caption "Futures Contracts". The notional amount at value reflects each contract's exposure to the underlying instrument or index at period end and is representative of volume of activity during the period. Securities deposited to meet initial margin requirements are identified in the Schedule of Investments.
Swaps. A swap is a contract between two parties to exchange future cash flows at periodic intervals based on a notional principal amount. A bi-lateral OTC swap is a transaction between a fund and a dealer counterparty where cash flows are exchanged between the two parties for the life of the swap.
Bi-lateral OTC swaps are marked-to-market daily and changes in value are reflected in the Statement of Assets and Liabilities in the bi-lateral OTC swaps at value line items. Any upfront premiums paid or received upon entering a bi-lateral OTC swap to compensate for differences between stated terms of the swap and prevailing market conditions (e.g. credit spreads, interest rates or other factors) are recorded in net unrealized appreciation (depreciation) in the Statement of Assets and Liabilities and amortized to realized gain or (loss) ratably over the term of the swap. Any unamortized upfront premiums are presented in the Schedule of Investments.
Payments are exchanged at specified intervals, accrued daily commencing with the effective date of the contract and recorded as realized gain or (loss). Some swaps may be terminated prior to the effective date and realize a gain or loss upon termination. The net realized gain (loss) and change in net unrealized appreciation (depreciation) on swaps during the period is presented in the Statement of Operations.
Any open swaps at period end are included in the Schedule of Investments under the caption "Swaps".
Credit Default Swaps. Credit default swaps enable the Fund to buy or sell protection against specified credit events on a single-name issuer or a traded credit index. Under the terms of a credit default swap the buyer of protection (buyer) receives credit protection in exchange for making periodic payments to the seller of protection (seller) based on a fixed percentage applied to a notional principal amount. In return for these payments, the seller will be required to make a payment upon the occurrence of one or more specified credit events. The Fund enters into credit default swaps as a seller to gain credit exposure to an issuer and/or as a buyer to obtain a measure of protection against defaults of an issuer. Periodic payments are made over the life of the contract by the buyer provided that no credit event occurs.
For credit default swaps on most corporate and sovereign issuers, credit events include bankruptcy, failure to pay or repudiation/moratorium. For credit default swaps on corporate or sovereign issuers, the obligation that may be put to the seller is not limited to the specific reference obligation described in the Schedule of Investments. For credit default swaps on asset-backed securities, a credit event may be triggered by events such as failure to pay principal, maturity extension, rating downgrade or write-down. For credit default swaps on asset-backed securities, the reference obligation described represents the security that may be put to the seller. For credit default swaps on a traded credit index, a specified credit event may affect all or individual underlying securities included in the index.
As a seller, if an underlying credit event occurs, the Fund will pay a net settlement amount of cash equal to the notional amount of the swap less the recovery value of the reference obligation or underlying securities comprising an index. Only in the event of the industry's inability to value the underlying asset will the Fund be required to take delivery of the reference obligation or underlying securities comprising an index and pay an amount equal to the notional amount of the swap.
As a buyer, if an underlying credit event occurs, the Fund will receive a net settlement amount of cash equal to the notional amount of the swap less the recovery value of the reference obligation or underlying securities comprising an index. Only in the event of the industry's inability to value the underlying asset will the Fund be required to deliver the reference obligation or underlying securities comprising an index in exchange for payment of an amount equal to the notional amount of the swap.
Typically, the value of each credit default swap and credit rating disclosed for each reference obligation in the Schedule of Investments, where the Fund is the seller, can be used as measures of the current payment/performance risk of the swap. As the value of the swap changes as a positive or negative percentage of the total notional amount, the payment/performance risk may decrease or increase, respectively. In addition to these measures, the investment adviser monitors a variety of factors including cash flow assumptions, market activity and market sentiment as part of its ongoing process of assessing payment/performance risk.
5. Purchases and Sales of Investments.
Purchases and sales of securities (including the Fixed-Income Central Funds), other than short-term securities and U.S. government securities, aggregated $16,556,184 and $16,142,729, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .15% of the Fund's average net assets and an annualized group fee rate that averaged .24% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annual management fee rate was .39% of the Fund's average net assets.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of Balanced, 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 |
| Balanced | $31,390 | .13 |
| Class K | 3,870 | .05 |
| | $35,260 | |
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Prior to April 1, 2019, FSC had a separate agreement with the Fund for administration of the security lending program, based on the number and duration of lending transactions. For the period, the total fees paid for accounting and administration of securities lending were equivalent to an annual rate of .01%.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $421 for the period.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
Other. During the period, the investment adviser reimbursed the Fund for certain losses in the amount of $156.
Prior Fiscal Year Affiliated Exchanges In-Kind. During the prior period, the Fund completed an exchange in-kind with Fidelity Mortgage Back Securities Central Fund. The Fund delivered investments, including accrued interest valued at $106,799 (which included $85 of unrealized depreciation), in exchange for 990 shares of Fidelity Mortgage Backed Securities Central Fund. The Fund generally did not recognize gain or loss for federal income tax purposes.
7. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $87 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
8. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. For equity securities, lending agents are used, including National Financial Services (NFS), an affiliate of the Fund. Pursuant to a securities lending agreement, NFS will receive a fee, which is capped at 9.9% of daily lending revenue, for its services as lending agent. The Fund may lend securities to certain qualified borrowers, including NFS. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. At period end, there were no security loans outstanding with NFS, as affiliated borrower. Total fees paid by the Fund to NFS, as lending agent, amounted to $25. 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. Total security lending income during the period is presented in the Statement of Operations as a component of interest income. Net income from the Fidelity Securities Lending Cash Central Fund during the period is presented in the Statement of Operations as a component of income from Fidelity Central Funds (and includes $18 from securities loaned to NFS, as affiliated borrower).
9. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $692 for the period. In addition, through arrangements with the Fund's custodian and each class' transfer agent, 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 $17. During the period, transfer agent credits reduced each class' expenses as noted in the table below.
| | Expense reduction |
| Balanced | $4 |
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $242.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| | Year ended
August 31, 2019 | Year ended
August 31, 2018 |
| Distributions to shareholders | | |
| Balanced | $2,302,966 | $– |
| Class K | 832,859 | – |
| Total | $3,135,825 | $– |
| From net investment income | | |
| Balanced | $– | $359,979 |
| Class K | – | 139,452 |
| Total | $– | $499,431 |
| From net realized gain | | |
| Balanced | $– | $1,428,048 |
| Class K | – | 528,944 |
| Total | $– | $1,956,992 |
11. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
| | Shares | Shares | Dollars | Dollars |
| | Year ended August 31, 2019 | Year ended August 31, 2018 | Year ended August 31, 2019 | Year ended August 31, 2018 |
| Balanced | | | | |
| Shares sold | 148,956 | 125,613 | $3,403,373 | $3,045,579 |
| Reinvestment of distributions | 97,405 | 71,987 | 2,184,283 | 1,701,887 |
| Shares redeemed | (176,229) | (151,447) | (3,985,668) | (3,668,283) |
| Net increase (decrease) | 70,132 | 46,153 | $1,601,988 | $1,079,183 |
| Class K | | | | |
| Shares sold | 50,621 | 46,606 | $1,153,250 | $1,131,393 |
| Reinvestment of distributions | 37,144 | 28,274 | 832,859 | 668,396 |
| Shares redeemed | (91,238) | (65,136) | (2,073,138) | (1,575,626) |
| Net increase (decrease) | (3,473) | 9,744 | $(87,029) | $224,163 |
12. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Affiliated Exchanges In-Kind. Effective after the close of business on August 31, 2019, the Fund completed exchanges in-kind with Fidelity Investment Grade Bond Central Fund. The Fund delivered investments, including accrued interest, and cash valued at $10,077,232 to Fidelity Investment Grade Bond Central Fund in exchange for shares 89,567. The net realized gain on investments delivered through in-kind redemptions was $389,673. The Fund recognized gains for federal income tax purposes.
In addition, the Fund redeemed 23,570 shares of Fidelity Mortgage Backed Securities Central Fund in exchange for investments and cash, including accrued interest, with a value of $2,581,907. The net realized gains on the Fund's redemptions of Fidelity Mortgage Backed Securities Central Fund shares was $83,354. The Fund recognized gains on the exchanges for federal income tax purposes.
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Fidelity Puritan Trust and Shareholders of Fidelity Balanced Fund:
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Fidelity Balanced Fund (one of the funds constituting Fidelity Puritan Trust, referred to hereafter as the “Fund”) as of August 31, 2019, the related statement of operations for the year ended August 31, 2019, the statement of changes in net assets for each of the two years in the period ended August 31, 2019, including the related notes, and the financial highlights for each of the five years in the period ended August 31, 2019 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of August 31, 2019, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended August 31, 2019 and the financial highlights for each of the five years in the period ended August 31, 2019 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of August 31, 2019 by correspondence with the custodian, issuers of privately offered securities and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Boston, Massachusetts
October 17, 2019
We have served as the auditor of one or more investment companies in the Fidelity group of funds since 1932.
Trustees and Officers
The Trustees, Members of the Advisory Board (if any), and officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Except for Jonathan Chiel, each of the Trustees oversees 298 funds. Mr. Chiel oversees 170 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the fund is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund's Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544 if you’re an individual investing directly with Fidelity, call 1-800-835-5092 if you’re a plan sponsor or participant with Fidelity as your recordkeeper or call 1-877-208-0098 on institutional accounts or if you’re an advisor or invest through one.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Board Structure and Oversight Function. James C. Curvey is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Ned C. Lautenbach serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and other equity funds. The asset allocation funds may invest in Fidelity® funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Jonathan Chiel (1957)
Year of Election or Appointment: 2016
Trustee
Mr. Chiel also serves as Trustee of other Fidelity® funds. Mr. Chiel is Executive Vice President and General Counsel for FMR LLC (diversified financial services company, 2012-present). Previously, Mr. Chiel served as general counsel (2004-2012) and senior vice president and deputy general counsel (2000-2004) for John Hancock Financial Services; a partner with Choate, Hall & Stewart (1996-2000) (law firm); and an Assistant United States Attorney for the United States Attorney’s Office of the District of Massachusetts (1986-95), including Chief of the Criminal Division (1993-1995). Mr. Chiel is a director on the boards of the Boston Bar Foundation and the Maimonides School.
James C. Curvey (1935)
Year of Election or Appointment: 2007
Trustee
Chairman of the Board of Trustees
Mr. Curvey also serves as Trustee of other Fidelity® funds. Mr. Curvey is Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey is an Overseer Emeritus for the Boston Symphony Orchestra, a Director of Artis-Naples, and a Trustee of Brewster Academy in Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-2018), Director of Fidelity Investments Money Management, Inc. (investment adviser firm, 2009-2014) and a Director of FMR and FMR Co., Inc. (investment adviser firms, 2007-2014).
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), as a member of the Independent Directors Council (IDC) Governing Council (2010-2015), and as a member of the Board of Directors for The Brookville Center for Children’s Services, Inc. (2009-2017). Mr. Dirks is a member of the Finance Committee (2016-present) and Board of Directors (2017-present) and is Treasurer (2018-present) of the Asolo Repertory Theatre.
Donald F. Donahue (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Donahue also serves as a Trustee of other Fidelity® funds. Mr. Donahue is President and Chief Executive Officer of Miranda Partners, LLC (risk consulting for the financial services industry, 2012-present). Previously, Mr. Donahue served as a Member of the Advisory Board of certain Fidelity® funds (2015-2018) and Chief Executive Officer (2006-2012), Chief Operating Officer (2003-2006), and Managing Director, Customer Marketing and Development (1999-2003) of The Depository Trust & Clearing Corporation (financial markets infrastructure). Mr. Donahue serves as a Member (2007-present) and Co-Chairman (2016-present) of the Board of Directors of United Way of New York, Member of the Board of Directors of NYC Leadership Academy (2012-present) and Member of the Board of Advisors of Ripple Labs, Inc. (financial services, 2015-present). He also served as Chairman (2010-2012) and Member of the Board of Directors (2012-2013) of Omgeo, LLC (financial services), Treasurer of United Way of New York (2012-2016), and Member of the Board of Directors of XBRL US (financial services non-profit, 2009-2012) and the International Securities Services Association (2009-2012).
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2014-2017) and a member (2010-2017) of the Board of Directors of Dave & Buster’s Entertainment, Inc. (restaurant and entertainment complexes), as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association, and as a member of the Board of Directors for The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), Earth Fare, Inc. (retail grocery, 2010-2014), and The Western Union Company (global money transfer, 2006-2011).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as Chair (2018-present) and Member (2013-present) of the Board of Governors, State University System of Florida and is a member of the Council on Foreign Relations (1994-present). He is also a member and has most recently served as Chairman of the Board of Directors of Artis-Naples (2012-present). Previously, Mr. Lautenbach served as a member and then Lead Director of the Board of Directors of Eaton Corporation (diversified industrial, 1997-2016). He was also a Partner and Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007). In addition, Mr. Lautenbach also had a 30-year career with IBM (technology company) during which time he served as Senior Vice President and a member of the Corporate Executive Committee (1968-1998).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-2018).
Cornelia M. Small (1944)
Year of Election or Appointment: 2005
Trustee
Ms. Small also serves as Trustee of other Fidelity® funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.
Garnett A. Smith (1947)
Year of Election or Appointment: 2018
Trustee
Mr. Smith also serves as Trustee of other Fidelity® funds. Prior to Mr. Smith's retirement, he served as Chairman and Chief Executive Officer of Inbrand Corp. (manufacturer of personal absorbent products, 1990-1997). He also served as President (1986-1990) of Inbrand Corp. Prior to his employment with Inbrand Corp., he was employed by a retail fabric chain and North Carolina National Bank. In addition, Mr. Smith served as a Member of the Advisory Board of certain Fidelity® funds (2012-2013) and as a board member of the Jackson Hole Land Trust (2009-2012).
David M. Thomas (1949)
Year of Election or Appointment: 2008
Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present) and as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), a Director of Fortune Brands, Inc. (consumer products, 2000-2011), and a member of the Board of Trustees of the University of Florida (2013-2018).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Advisory Board Members and Officers:
Correspondence intended for a Member of the Advisory Board (if any) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235. Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Vicki L. Fuller (1957)
Year of Election or Appointment: 2018
Member of the Advisory Board
Ms. Fuller also serves as Member of the Advisory Board of other Fidelity® funds. Ms. Fuller serves as a member of the Board of Directors, Audit Committee, and Nominating and Governance Committee of The Williams Companies, Inc. (natural gas infrastructure, 2018-present). Previously, Ms. Fuller served as the Chief Investment Officer of the New York State Common Retirement Fund (2012-2018) and held a variety of positions at AllianceBernstein L.P. (global asset management, 1985-2012), including Managing Director (2006-2012) and Senior Vice President and Senior Portfolio Manager (2001-2006).
Peter S. Lynch (1944)
Year of Election or Appointment: 2003
Member of the Advisory Board
Mr. Lynch also serves as Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of FMR (investment adviser firm) and FMR Co., Inc. (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).
Michael E. Wiley (1950)
Year of Election or Appointment: 2018
Member of the Advisory Board
Mr. Wiley also serves as Trustee or Member of the Advisory Board of other Fidelity® funds. Mr. Wiley serves as a Director of High Point Resources (exploration and production, 2005-present). Previously, Mr. Wiley served as a Director of Andeavor Corporation (independent oil refiner and marketer, 2005-2018), a Director of Andeavor Logistics LP (natural resources logistics, 2015-2018), a Director of Post Oak Bank (privately-held bank, 2004-2018), a Director of Asia Pacific Exploration Consolidated (international oil and gas exploration and production, 2008-2013), a member of the Board of Trustees of the University of Tulsa (2000-2006; 2007-2010), a Senior Energy Advisor of Katzenbach Partners, LLC (consulting, 2006-2007), an Advisory Director of Riverstone Holdings (private investment), a Director of Spinnaker Exploration Company (exploration and production, 2001-2005) and Chairman, President, and CEO of Baker Hughes, Inc. (oilfield services, 2000-2004).
Elizabeth Paige Baumann (1968)
Year of Election or Appointment: 2017
Anti-Money Laundering (AML) Officer
Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer (2012-present) and Senior Vice President (2014-present) of FMR LLC (diversified financial services company) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as AML Officer of the funds (2012-2016), and Vice President (2007-2014) and Deputy Anti-Money Laundering Officer (2007-2012) of FMR LLC.
Craig S. Brown (1977)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Brown also serves as Assistant Treasurer of other funds. Mr. Brown is an employee of Fidelity Investments (2013-present).
John J. Burke III (1964)
Year of Election or Appointment: 2018
Chief Financial Officer
Mr. Burke also serves as Chief Financial Officer of other funds. Mr. Burke serves as Head of Investment Operations for Fidelity Fund and Investment Operations (2018-present) and is an employee of Fidelity Investments (1998-present). Previously Mr. Burke served as head of Asset Management Investment Operations (2012-2018).
William C. Coffey (1969)
Year of Election or Appointment: 2019
Assistant Secretary
Mr. Coffey also serves as Assistant Secretary of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Secretary and CLO of certain funds (2018-2019); CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2018-2019); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2018-2019); CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2018-2019); and Assistant Secretary of certain funds (2009-2018).
Timothy M. Cohen (1969)
Year of Election or Appointment: 2018
Vice President
Mr. Cohen also serves as Vice President of other funds. Mr. Cohen serves as Executive Vice President of Fidelity SelectCo, LLC (2019-present), Co-Head of Equity (2018-present), a Director of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present), and is an employee of Fidelity Investments. Previously, Mr. Cohen served as Head of Global Equity Research (2016-2018), Chief Investment Officer - Equity and a Director of Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2013-2015) and as a Director of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2017).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds. Mr. Davis serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present), and is an employee of Fidelity Investments (2008-present). Previously, Mr. Deberghes served as President and Treasurer of certain Fidelity® funds (2013-2018). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). Previously, Mr. Deberghes served in other fund officer roles.
Laura M. Del Prato (1964)
Year of Election or Appointment: 2018
Assistant Treasurer
Ms. Del Prato also serves as an officer of other funds. Ms. Del Prato is an employee of Fidelity Investments (2017-present). Prior to joining Fidelity Investments, Ms. Del Prato served as a Managing Director and Treasurer of the JPMorgan Mutual Funds (2014-2017). Prior to JPMorgan, Ms. Del Prato served as a partner at Cohen Fund Audit Services (accounting firm, 2012-2013) and KPMG LLP (accounting firm, 2004-2012).
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2005-present). Previously, Mr. Hogan served as Assistant Treasurer of certain Fidelity® funds (2016-2018).
Pamela R. Holding (1964)
Year of Election or Appointment: 2018
Vice President
Ms. Holding also serves as Vice President of other funds. Ms. Holding serves as Executive Vice President of Fidelity SelectCo, LLC (2019-present), Co-Head of Equity (2018-present) and is an employee of Fidelity Investments (2013-present). Previously, Ms. Holding served as Chief Investment Officer of Fidelity Institutional Asset Management (2013-2018).
Cynthia Lo Bessette (1969)
Year of Election or Appointment: 2019
Secretary and Chief Legal Officer (CLO)
Ms. Lo Bessette also serves as Secretary and CLO of other funds. She is a Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2019-present), and is an employee of Fidelity Investments. Previously, Ms. Lo Bessette served as Executive Vice President, General Counsel (2016-2019) and Senior Vice President, Deputy General Counsel (2015-2016) of OppenheimerFunds (investment management company) and Deputy Chief Legal Officer (2013-2015) of Jennison Associates LLC (investment adviser firm).
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight, serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. Ms. Smith serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), is an employee of Fidelity Investments (2009-present), and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Assistant Treasurer (2013-2018) and Deputy Treasurer (2013-2016) of certain Fidelity® funds.
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
Jim Wegmann (1979)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Wegmann also serves as Assistant Treasurer of other funds. Mr. Wegmann is an employee of Fidelity Investments (2011-present).
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (March 1, 2019 to August 31, 2019).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
| | Annualized Expense Ratio-A | Beginning
Account Value
March 1, 2019 | Ending
Account Value
August 31, 2019 | Expenses Paid
During Period-B
March 1, 2019
to August 31, 2019 |
| Balanced | .53% | | | |
| Actual | | $1,000.00 | $1,054.10 | $2.74 |
| Hypothetical-C | | $1,000.00 | $1,022.53 | $2.70 |
| Class K | .44% | | | |
| Actual | | $1,000.00 | $1,054.90 | $2.28 |
| Hypothetical-C | | $1,000.00 | $1,022.99 | $2.24 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). The fees and expenses of the underlying Fidelity Central Funds in which the Fund invests are not included in each Class' annualized expense ratio. In addition to the expenses noted above, the Fund also indirectly bears its proportional share of the expenses of the underlying Fidelity Central Funds. Annualized expenses of the underlying non-money market Fidelity Central Funds as of their most recent fiscal half year were less than .005%.
C 5% return per year before expenses
Distributions (Unaudited)
The Board of Trustees of Fidelity Balanced Fund voted to pay to shareholders of record at the opening of business on record date, the following distributions per share derived from capital gains realized from sales of portfolio securities, and dividends derived from net investment income:
| | Pay Date | Record Date | Dividends | Capital Gains |
| Fidelity Balanced Fund | | | | |
| Balanced | 10/14/19 | 10/11/19 | $0.116 | $0.113 |
| Class K | 10/14/19 | 10/11/19 | $0.121 | $0.113 |
|
The fund hereby designates as a capital gain dividend with respect to the taxable year ended August 31, 2019, $509,749,469, or, if subsequently determined to be different, the net capital gain of such year.
A total of 9.80% of the dividends distributed during the fiscal year was derived from interest on U.S. Government securities which is generally exempt from state income tax.
The fund designates $214,935,254 of distributions paid during the period January 1, 2019 to August 31, 2019 as qualifying to be taxed as interest-related dividends for nonresident alien shareholders.
Balanced designates 5%, 54%, 76%, and 76%; and Class K designates 5%, 52%, 73%, and 73% of the dividends distributed in October 2018, December 2018, April 2019, and July 2019, respectively during the fiscal year as qualifying for the dividends–received deduction for corporate shareholders.
Balanced designates 6%, 61%, 86%, and 86%; and Class K designates 6%, 58%, 83%, and 83%; of the dividends distributed in October 2018, December 2018, April 2019, and July 2019, respectively during the fiscal year as amounts which may be taken into account as a dividend for purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code.
The fund will notify shareholders in January 2020 of amounts for use in preparing 2019 income tax returns.
BAL-ANN-1019
1.536127.123
Fidelity® Puritan® Fund
Annual Report August 31, 2019 |
|
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of a fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a financial advisor, broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from a fund electronically, by contacting your financial intermediary. For Fidelity customers, visit Fidelity's web site or call Fidelity using the contact information listed below.
You may elect to receive all future reports in paper free of charge. If you wish to continue receiving paper copies of your shareholder reports, you may contact your financial intermediary or, if you are a Fidelity customer, visit Fidelity’s website, or call Fidelity at the applicable toll-free number listed below. Your election to receive reports in paper will apply to all funds held with the fund complex/your financial intermediary.
| Account Type | Website | Phone Number |
| Brokerage, Mutual Fund, or Annuity Contracts: | fidelity.com/mailpreferences | 1-800-343-3548 |
| Employer Provided Retirement Accounts: | netbenefits.fidelity.com/preferences (choose 'no' under Required Disclosures to continue to print) | 1-800-343-0860 |
| Advisor Sold Accounts Serviced Through Your Financial Intermediary: | Contact Your Financial Intermediary | Your Financial Intermediary's phone number |
| Advisor Sold Accounts Serviced by Fidelity: | institutional.fidelity.com | 1-877-208-0098 |
Contents
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-800-544-8544 if you’re an individual investing directly with Fidelity, call 1-800-835-5092 if you’re a plan sponsor or participant with Fidelity as your recordkeeper or call 1-877-208-0098 on institutional accounts or if you’re an advisor or invest through one to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2019 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT. Forms N-PORT are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-PORT may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
| For the periods ended August 31, 2019 | Past 1 year | Past 5 years | Past 10 years |
| Fidelity® Puritan® Fund | 1.17% | 7.13% | 10.07% |
| Class K | 1.22% | 7.22% | 10.18% |
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity® Puritan® Fund, a class of the fund, on August 31, 2009.
The chart shows how the value of your investment would have changed, and also shows how the S&P 500® Index performed over the same period.
| Period Ending Values |
| $26,095 | Fidelity® Puritan® Fund |
| $35,308 | S&P 500® Index |
Management's Discussion of Fund Performance
Market Recap: The S&P 500
® index gained 2.92% for the 12 months ending August 31, 2019, a choppy period in which stocks seesawed due to trade tension, interest rates, economic data and an inverted yield curve, among other factors. Equities began the new year on a high note after enduring a historically volatile final quarter of 2018. Upbeat company earnings and outlooks, along with signs the Federal Reserve may pause on rates, boosted stocks to an all-time high on April 30. In May, however, the index sunk amid the Fed’s decision to hold interest rates steady and signal it had little appetite to adjust them any time soon, as well as retaliatory tariffs imposed on the U.S. by China. The bull market roared back in June and recorded a series of highs in July, when the Fed cut interest rates for the first time since 2008. Volatility intensified in August, however, as the U.S. Treasury yield curve inverted for the first time since 2007, which some investors viewed as a sign the world's biggest economy could be heading for recession. For the full 12 months, three defensive sectors led the way: utilities (+21%), real estate (+20%) and consumer staples (+16%). In contrast, energy (-20%) was by far the weakest sector, followed by financials (-3%) and materials (-3%). Meanwhile, U.S. taxable investment-grade bonds rose 10.17%, according to the Bloomberg Barclays U.S. Aggregate Bond Index, driven by a change in direction for U.S. policy interest rates, slower economic growth and uncertainty regarding trade policy.
Comments from Lead Portfolio Manager Daniel Kelley: For the fiscal year, the fund’s share classes shares gained roughly 1%, lagging the 6.22% advance of the Fidelity Puritan Composite Index℠ – a 60/40 blend of the S&P 500
® index and the Bloomberg Barclays U.S. Aggregate Bond Index. Versus the Composite index, the biggest detractor the past 12 months was security selection in the equities subportfolio, particularly my picks in the communication services and consumer discretionary sectors. The fund’s investment-grade bond subportfolio topped its benchmark and modestly contributed to the fund’s relative result. Asset allocation, including an overweighting in equities and an underweighting in investment-grade bonds, was a modest detractor. The biggest individual relative detractor was a non-index position in privately owned digital-media company Vice Holding (-54%). We marked down our stake in Vice this period, due to concern related to slowing earnings growth and management changes. Conversely, real estate was a notable bright spot, led by an overweighting in American Tower (+57%), a real estate investment trust (REIT) that rents towers used to build out current- and next-generation cellular service networks. The company appealed to me for its predictable, consistent growth and dividend yield. In addition, I viewed it as a big beneficiary of higher spending on the initial build out of 5G networks.
The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Notes to shareholders: On December 31, 2018, former Co-Manager Ramin Arani retired from asset management after nearly 26 years with Fidelity, leaving Dan Kelley – who assumed lead management responsibilities on October 1, 2018 – and Co-Managers Michael Plage and Harley Lank at the helm of the fund. On October 1, 2019, the fund transitioned from a subportfolio structure to central funds for its high-yield and investment-grade bond investments.
Investment Summary (Unaudited)
The information in the following tables is based on the combined investments of the Fund and its pro-rata share of the investments of Fidelity's Fixed-Income Central Funds.
Top Five Stocks as of August 31, 2019
| | % of fund's net assets |
| Microsoft Corp. | 3.7 |
| Amazon.com, Inc. | 2.7 |
| Alphabet, Inc. Class C | 2.7 |
| Apple, Inc. | 1.7 |
| Visa, Inc. Class A | 1.6 |
| | 12.4 |
Top Five Bond Issuers as of August 31, 2019
| (with maturities greater than one year) | % of fund's net assets |
| U.S. Treasury Obligations | 5.7 |
| Fannie Mae | 2.1 |
| Freddie Mac | 1.7 |
| Ginnie Mae | 1.3 |
| Morgan Stanley | 0.6 |
| | 11.4 |
Top Five Market Sectors as of August 31, 2019
| | % of fund's net assets |
| Information Technology | 18.2 |
| Financials | 13.4 |
| Health Care | 10.8 |
| Consumer Discretionary | 9.7 |
| Communication Services | 9.3 |
Asset Allocation (% of fund's net assets)
| As of August 31, 2019* |
| | Stocks | 66.6% |
| | Bonds | 27.1% |
| | Convertible Securities | 0.9% |
| | Other Investments | 0.8% |
| | Short-Term Investments and Net Other Assets (Liabilities) | 4.6% |
* Foreign investments - 10.7%
An unaudited holdings listing for the Fund, which presents direct holdings as well as the pro-rata share of any securities and other investments held indirectly through its investment in underlying non-money market Fidelity Central Funds, is available at fidelity.com and/or institutional.fidelity.com, as applicable.
Percentages are adjusted for the effect of futures contracts and swaps, if applicable.
Percentages in the above tables are adjusted for the effect of TBA Sale Commitments.
Schedule of Investments August 31, 2019
Showing Percentage of Net Assets
| Common Stocks - 66.5% | | | |
| | | Shares | Value (000s) |
| COMMUNICATION SERVICES - 7.6% | | | |
| Diversified Telecommunication Services - 0.3% | | | |
| Verizon Communications, Inc. | | 1,280,154 | $74,454 |
| Entertainment - 1.7% | | | |
| Electronic Arts, Inc. (a) | | 209,738 | 19,648 |
| Lions Gate Entertainment Corp. Class B | | 600,491 | 5,008 |
| Live Nation Entertainment, Inc. (a) | | 484,372 | 33,669 |
| LiveXLive Media, Inc. (a)(b)(c) | | 6,582,369 | 14,613 |
| Netflix, Inc. (a) | | 351,073 | 103,128 |
| The Void LLC (a)(d)(e)(f) | | 40,946 | 11,040 |
| The Walt Disney Co. | | 1,427,995 | 196,007 |
| WME Entertainment Parent, LLC Class A (a)(d)(e)(f) | | 26,182,064 | 62,837 |
| | | | 445,950 |
| Interactive Media & Services - 4.2% | | | |
| Alphabet, Inc. Class C (a) | | 614,843 | 730,495 |
| Facebook, Inc. Class A (a) | | 2,152,005 | 399,563 |
| Twitter, Inc. (a) | | 274,135 | 11,692 |
| | | | 1,141,750 |
| Media - 0.9% | | | |
| Comcast Corp. Class A | | 4,322,644 | 191,320 |
| Vice Holding, Inc. (a)(e)(f) | | 86,301 | 58,397 |
| | | | 249,717 |
| Wireless Telecommunication Services - 0.5% | | | |
| T-Mobile U.S., Inc. (a) | | 1,781,480 | 139,045 |
|
| TOTAL COMMUNICATION SERVICES | | | 2,050,916 |
|
| CONSUMER DISCRETIONARY - 8.4% | | | |
| Diversified Consumer Services - 0.1% | | | |
| Afya Ltd. | | 577,877 | 12,656 |
| Arco Platform Ltd. Class A | | 175,546 | 8,486 |
| ServiceMaster Global Holdings, Inc. (a) | | 203,359 | 11,600 |
| | | | 32,742 |
| Hotels, Restaurants & Leisure - 1.3% | | | |
| Compass Group PLC | | 1,796,100 | 45,553 |
| Marriott International, Inc. Class A | | 71,000 | 8,950 |
| McDonald's Corp. | | 981,703 | 213,982 |
| Restaurant Brands International, Inc. (b) | | 922,291 | 72,354 |
| Vail Resorts, Inc. | | 17,943 | 4,240 |
| | | | 345,079 |
| Household Durables - 0.1% | | | |
| Blu Homes, Inc. (a)(e)(f) | | 14,988,638 | 26 |
| D.R. Horton, Inc. | | 770,370 | 38,110 |
| | | | 38,136 |
| Internet & Direct Marketing Retail - 3.6% | | | |
| Alibaba Group Holding Ltd. sponsored ADR (a) | | 383,191 | 67,070 |
| Amazon.com, Inc. (a) | | 411,730 | 731,352 |
| Etsy, Inc. (a) | | 163,169 | 8,614 |
| GrubHub, Inc. (a)(b) | | 230,571 | 13,682 |
| MercadoLibre, Inc. (a) | | 116,632 | 69,349 |
| Pinduoduo, Inc. ADR (a) | | 1,490,529 | 48,845 |
| The Booking Holdings, Inc. (a) | | 13,258 | 26,071 |
| | | | 964,983 |
| Multiline Retail - 0.8% | | | |
| Dollar General Corp. | | 374,667 | 58,482 |
| Dollar Tree, Inc. (a) | | 1,542,335 | 156,593 |
| | | | 215,075 |
| Specialty Retail - 1.2% | | | |
| Five Below, Inc. (a) | | 80,875 | 9,937 |
| Lowe's Companies, Inc. | | 932,105 | 104,582 |
| The Home Depot, Inc. | | 511,861 | 116,658 |
| TJX Companies, Inc. | | 1,210,037 | 66,516 |
| Ulta Beauty, Inc. (a) | | 89,219 | 21,210 |
| | | | 318,903 |
| Textiles, Apparel & Luxury Goods - 1.3% | | | |
| Brunello Cucinelli SpA | | 1,535,400 | 47,654 |
| LVMH Moet Hennessy Louis Vuitton SE | | 253,614 | 101,138 |
| NIKE, Inc. Class B | | 1,669,633 | 141,084 |
| Tory Burch LLC: | | | |
| Class A (a)(d)(e)(f) | | 702,741 | 39,475 |
| Class B (a)(d)(e)(f) | | 324,840 | 19,159 |
| | | | 348,510 |
|
| TOTAL CONSUMER DISCRETIONARY | | | 2,263,428 |
|
| CONSUMER STAPLES - 4.5% | | | |
| Beverages - 1.5% | | | |
| Keurig Dr. Pepper, Inc. | | 1,741,207 | 47,500 |
| Monster Beverage Corp. (a) | | 1,834,618 | 107,637 |
| PepsiCo, Inc. | | 321,984 | 44,025 |
| The Coca-Cola Co. | | 3,757,141 | 206,793 |
| | | | 405,955 |
| Food & Staples Retailing - 1.3% | | | |
| Costco Wholesale Corp. | | 352,475 | 103,896 |
| Walmart, Inc. | | 2,273,129 | 259,728 |
| | | | 363,624 |
| Food Products - 0.1% | | | |
| Darling International, Inc. (a) | | 1,748,684 | 32,526 |
| Household Products - 1.3% | | | |
| Kimberly-Clark Corp. | | 389,272 | 54,930 |
| Procter & Gamble Co. | | 2,463,728 | 296,214 |
| | | | 351,144 |
| Personal Products - 0.3% | | | |
| Estee Lauder Companies, Inc. Class A | | 330,956 | 65,526 |
| L'Oreal SA (a) | | 10,567 | 2,887 |
| | | | 68,413 |
|
| TOTAL CONSUMER STAPLES | | | 1,221,662 |
|
| ENERGY - 0.9% | | | |
| Oil, Gas & Consumable Fuels - 0.9% | | | |
| Hess Corp. | | 1,781,580 | 112,150 |
| Parsley Energy, Inc. Class A | | 931,368 | 16,681 |
| Pioneer Natural Resources Co. | | 570,641 | 70,429 |
| Reliance Industries Ltd. | | 1,904,500 | 33,279 |
| | | | 232,539 |
| FINANCIALS - 7.4% | | | |
| Banks - 3.0% | | | |
| Bank of America Corp. | | 12,944,367 | 356,100 |
| Citigroup, Inc. | | 966,346 | 62,184 |
| HDFC Bank Ltd. sponsored ADR | | 428,863 | 46,231 |
| JPMorgan Chase & Co. | | 2,114,154 | 232,261 |
| M&T Bank Corp. | | 532,393 | 77,841 |
| SunTrust Banks, Inc. | | 476,011 | 29,279 |
| | | | 803,896 |
| Capital Markets - 2.6% | | | |
| CME Group, Inc. | | 739,966 | 160,787 |
| E*TRADE Financial Corp. | | 484,272 | 20,214 |
| IntercontinentalExchange, Inc. | | 531,822 | 49,715 |
| London Stock Exchange Group PLC | | 325,800 | 27,568 |
| Moody's Corp. | | 181,148 | 39,052 |
| Morningstar, Inc. | | 403,003 | 65,117 |
| MSCI, Inc. | | 472,654 | 110,899 |
| S&P Global, Inc. | | 571,441 | 148,683 |
| The Blackstone Group LP | | 1,707,284 | 84,954 |
| Tradeweb Markets, Inc. Class A | | 78,652 | 3,350 |
| | | | 710,339 |
| Consumer Finance - 0.6% | | | |
| American Express Co. | | 1,403,971 | 168,996 |
| Diversified Financial Services - 0.9% | | | |
| Berkshire Hathaway, Inc. Class B (a) | | 1,110,796 | 225,947 |
| Insurance - 0.3% | | | |
| American International Group, Inc. | | 1,265,707 | 65,867 |
| MetLife, Inc. | | 353,884 | 15,677 |
| | | | 81,544 |
|
| TOTAL FINANCIALS | | | 1,990,722 |
|
| HEALTH CARE - 9.7% | | | |
| Biotechnology - 2.1% | | | |
| AbbVie, Inc. | | 1,435,189 | 94,349 |
| ACADIA Pharmaceuticals, Inc. (a) | | 857,798 | 23,727 |
| Alexion Pharmaceuticals, Inc. (a) | | 131,442 | 13,244 |
| Amgen, Inc. | | 1,082,125 | 225,753 |
| Blueprint Medicines Corp. (a) | | 120,819 | 9,263 |
| Neurocrine Biosciences, Inc. (a) | | 474,931 | 47,218 |
| Sarepta Therapeutics, Inc. (a) | | 123,212 | 11,108 |
| Vertex Pharmaceuticals, Inc. (a) | | 726,010 | 130,696 |
| | | | 555,358 |
| Health Care Equipment & Supplies - 4.5% | | | |
| Alcon, Inc. (a) | | 1,201,310 | 73,232 |
| Becton, Dickinson & Co. | | 696,802 | 176,932 |
| Boston Scientific Corp. (a) | | 5,336,167 | 228,014 |
| Danaher Corp. | | 1,737,541 | 246,887 |
| DexCom, Inc. (a) | | 106,133 | 18,213 |
| Edwards Lifesciences Corp. (a) | | 377,446 | 83,733 |
| Hologic, Inc. (a) | | 1,288,917 | 63,634 |
| Intuitive Surgical, Inc. (a) | | 152,560 | 78,010 |
| Stryker Corp. | | 982,679 | 216,838 |
| Teleflex, Inc. | | 65,294 | 23,762 |
| | | | 1,209,255 |
| Health Care Providers & Services - 0.9% | | | |
| Humana, Inc. | | 132,659 | 37,570 |
| UnitedHealth Group, Inc. | | 881,605 | 206,296 |
| | | | 243,866 |
| Life Sciences Tools & Services - 0.8% | | | |
| Bruker Corp. | | 991,868 | 42,819 |
| Thermo Fisher Scientific, Inc. | | 629,714 | 180,766 |
| | | | 223,585 |
| Pharmaceuticals - 1.4% | | | |
| AstraZeneca PLC sponsored ADR | | 3,836,624 | 172,763 |
| Corteva, Inc. | | 1,022,641 | 29,984 |
| Roche Holding AG (participation certificate) | | 100,430 | 27,444 |
| Zoetis, Inc. Class A | | 1,177,571 | 148,869 |
| | | | 379,060 |
|
| TOTAL HEALTH CARE | | | 2,611,124 |
|
| INDUSTRIALS - 4.8% | | | |
| Aerospace & Defense - 1.3% | | | |
| Northrop Grumman Corp. | | 749,237 | 275,622 |
| Space Exploration Technologies Corp.: | | | |
| Class A (a)(e)(f) | | 41,122 | 8,800 |
| Class C (a)(e)(f) | | 5,607 | 1,200 |
| TransDigm Group, Inc. | | 133,080 | 71,640 |
| | | | 357,262 |
| Air Freight & Logistics - 0.1% | | | |
| United Parcel Service, Inc. Class B | | 301,150 | 35,734 |
| Airlines - 0.2% | | | |
| Delta Air Lines, Inc. | | 1,065,539 | 61,652 |
| Commercial Services & Supplies - 0.1% | | | |
| Copart, Inc. (a) | | 154,513 | 11,649 |
| TulCo LLC (a)(d)(e)(f) | | 42,857 | 23,493 |
| | | | 35,142 |
| Construction & Engineering - 0.3% | | | |
| Jacobs Engineering Group, Inc. | | 727,726 | 64,666 |
| Electrical Equipment - 0.4% | | | |
| AMETEK, Inc. | | 1,042,212 | 89,557 |
| Fortive Corp. | | 142,010 | 10,069 |
| | | | 99,626 |
| Industrial Conglomerates - 0.4% | | | |
| General Electric Co. | | 13,111,610 | 108,171 |
| Machinery - 0.3% | | | |
| Deere & Co. | | 51,365 | 7,957 |
| Gardner Denver Holdings, Inc. (a) | | 1,844,597 | 52,903 |
| Ingersoll-Rand PLC | | 164,481 | 19,917 |
| | | | 80,777 |
| Professional Services - 0.4% | | | |
| IHS Markit Ltd. (a) | | 1,507,855 | 98,930 |
| Road & Rail - 1.3% | | | |
| Lyft, Inc. | | 1,014,908 | 49,700 |
| Norfolk Southern Corp. | | 371,727 | 64,699 |
| Uber Technologies, Inc. | | 1,596,241 | 49,390 |
| Union Pacific Corp. | | 1,097,438 | 177,741 |
| | | | 341,530 |
|
| TOTAL INDUSTRIALS | | | 1,283,490 |
|
| INFORMATION TECHNOLOGY - 17.9% | | | |
| Communications Equipment - 0.5% | | | |
| Cisco Systems, Inc. | | 2,777,701 | 130,024 |
| Electronic Equipment & Components - 0.0% | | | |
| Amphenol Corp. Class A | | 161,370 | 14,126 |
| IT Services - 5.5% | | | |
| Accenture PLC Class A | | 1,035,379 | 205,181 |
| Adyen BV (a)(g) | | 10,362 | 7,503 |
| Automatic Data Processing, Inc. | | 524,124 | 89,017 |
| EPAM Systems, Inc. (a) | | 10,666 | 2,041 |
| Fidelity National Information Services, Inc. | | 1,419,134 | 193,314 |
| Fiserv, Inc. (a) | | 355,943 | 38,065 |
| Global Payments, Inc. | | 235,509 | 39,090 |
| GoDaddy, Inc. (a) | | 450,479 | 28,533 |
| MasterCard, Inc. Class A | | 1,126,945 | 317,089 |
| MongoDB, Inc. Class A (a) | | 267,088 | 40,680 |
| PagSeguro Digital Ltd. (a) | | 169,465 | 8,466 |
| PayPal Holdings, Inc. (a) | | 911,824 | 99,434 |
| Visa, Inc. Class A | | 2,312,306 | 418,111 |
| | | | 1,486,524 |
| Semiconductors & Semiconductor Equipment - 3.1% | | | |
| Advanced Micro Devices, Inc. (a) | | 1,247,032 | 39,219 |
| Analog Devices, Inc. | | 1,309,722 | 143,847 |
| ASML Holding NV | | 531,623 | 118,345 |
| Broadcom, Inc. | | 107,660 | 30,429 |
| Lam Research Corp. | | 654,849 | 137,852 |
| Marvell Technology Group Ltd. | | 2,492,706 | 59,750 |
| Micron Technology, Inc. (a) | | 200,000 | 9,054 |
| NVIDIA Corp. | | 217,892 | 36,499 |
| NXP Semiconductors NV | | 926,976 | 94,681 |
| Qualcomm, Inc. | | 1,361,058 | 105,849 |
| Xilinx, Inc. | | 482,482 | 50,207 |
| | | | 825,732 |
| Software - 7.1% | | | |
| Adobe, Inc. (a) | | 680,653 | 193,653 |
| Atom Tickets LLC (a)(d)(e)(f) | | 2,580,511 | 3,871 |
| Black Knight, Inc. (a) | | 587,274 | 36,558 |
| Ceridian HCM Holding, Inc. (a) | | 578,618 | 33,427 |
| DocuSign, Inc. (a) | | 57,563 | 2,688 |
| Guidewire Software, Inc. (a) | | 169,465 | 16,299 |
| HubSpot, Inc. (a) | | 78,552 | 15,685 |
| Intuit, Inc. | | 539,700 | 155,628 |
| Microsoft Corp. | | 7,335,361 | 1,011,252 |
| Salesforce.com, Inc. (a) | | 1,352,869 | 211,142 |
| ServiceNow, Inc. (a) | | 50,000 | 13,092 |
| Splunk, Inc. (a) | | 175,189 | 19,590 |
| The Trade Desk, Inc. (a)(b) | | 128,694 | 31,629 |
| Workday, Inc. Class A (a) | | 906,540 | 160,711 |
| | | | 1,905,225 |
| Technology Hardware, Storage & Peripherals - 1.7% | | | |
| Apple, Inc. | | 2,225,329 | 464,515 |
|
| TOTAL INFORMATION TECHNOLOGY | | | 4,826,146 |
|
| MATERIALS - 1.7% | | | |
| Chemicals - 1.1% | | | |
| CF Industries Holdings, Inc. | | 1,682,991 | 81,103 |
| Linde PLC | | 588,665 | 111,205 |
| Nutrien Ltd. (b) | | 942,952 | 47,487 |
| Sherwin-Williams Co. | | 133,379 | 70,257 |
| | | | 310,052 |
| Containers & Packaging - 0.2% | | | |
| Avery Dennison Corp. | | 381,224 | 44,058 |
| Metals & Mining - 0.4% | | | |
| Barrick Gold Corp. | | 5,224,537 | 101,252 |
| Franco-Nevada Corp. | | 155,500 | 15,190 |
| | | | 116,442 |
|
| TOTAL MATERIALS | | | 470,552 |
|
| REAL ESTATE - 3.0% | | | |
| Equity Real Estate Investment Trusts (REITs) - 3.0% | | | |
| American Tower Corp. | | 1,252,549 | 288,324 |
| Ant International Co. Ltd. Class C (a)(e)(f) | | 1,782,512 | 12,834 |
| Crown Castle International Corp. | | 1,378,551 | 200,124 |
| Equinix, Inc. | | 219,618 | 122,169 |
| Equity Residential (SBI) | | 490,046 | 41,536 |
| Public Storage | | 238,747 | 63,206 |
| SBA Communications Corp. Class A | | 363,852 | 95,486 |
| | | | 823,679 |
| UTILITIES - 0.6% | | | |
| Electric Utilities - 0.6% | | | |
| NextEra Energy, Inc. | | 597,983 | 131,006 |
| Vistra Energy Corp. | | 1,384,012 | 34,531 |
| | | | 165,537 |
| TOTAL COMMON STOCKS | | | |
| (Cost $13,101,877) | | | 17,939,795 |
|
| Convertible Preferred Stocks - 0.8% | | | |
| CONSUMER DISCRETIONARY - 0.7% | | | |
| Hotels, Restaurants & Leisure - 0.1% | | | |
| Neutron Holdings, Inc.: | | | |
| Series C (a)(e)(f) | | 38,589,900 | 9,358 |
| Series D (e)(f) | | 40,824,742 | 9,900 |
| | | | 19,258 |
| Internet & Direct Marketing Retail - 0.1% | | | |
| The Honest Co., Inc.: | | | |
| Series D (a)(e)(f) | | 196,700 | 9,001 |
| Series E (a)(e)(f) | | 1,020,158 | 19,995 |
| | | | 28,996 |
| Leisure Products - 0.2% | | | |
| Peloton Interactive, Inc. Series E (a)(e) | | 1,846,568 | 48,195 |
| Specialty Retail - 0.1% | | | |
| Moda Operandi, Inc.: | | | |
| Series E (a)(e)(f) | | 508,444 | 12,650 |
| Series F (a)(e)(f) | | 157,251 | 3,912 |
| | | | 16,562 |
| Textiles, Apparel & Luxury Goods - 0.2% | | | |
| Goop International Holdings, Inc.: | | | |
| Series C (a)(e)(f) | | 1,881,874 | 27,494 |
| Series D (e)(f) | | 342,241 | 5,000 |
| Rent the Runway, Inc.: | | | |
| Series E (a)(e)(f) | | 1,378,930 | 30,824 |
| Series F (e)(f) | | 223,676 | 5,000 |
| | | | 68,318 |
|
| TOTAL CONSUMER DISCRETIONARY | | | 181,329 |
|
| HEALTH CARE - 0.1% | | | |
| Biotechnology - 0.0% | | | |
| Generation Bio Series B (a)(e)(f) | | 370,500 | 3,368 |
| Health Care Providers & Services - 0.1% | | | |
| Get Heal, Inc. Series B (a)(e)(f) | | 8,512,822 | 145 |
| Mulberry Health, Inc.: | | | |
| Series A-8(a)(e)(f) | | 2,960,879 | 20,845 |
| Series A-9(a)(e)(f) | | 700,782 | 4,934 |
| Series AA-9(a)(e)(f) | | 58,145 | 409 |
| | | | 26,333 |
|
| TOTAL HEALTH CARE | | | 29,701 |
|
| INDUSTRIALS - 0.0% | | | |
| Aerospace & Defense - 0.0% | | | |
| Space Exploration Technologies Corp. Series H (a)(e)(f) | | 51,921 | 11,111 |
| INFORMATION TECHNOLOGY - 0.0% | | | |
| Software - 0.0% | | | |
| Jello Labs, Inc. Series C (a)(e)(f) | | 1,050,307 | 0 |
| TOTAL CONVERTIBLE PREFERRED STOCKS | | | |
| (Cost $199,646) | | | 222,141 |
|
| Fixed-Income Funds - 31.9% | | | |
| Fidelity High Income Central Fund (h) | | 12,187,043 | 1,357,271 |
| Fidelity Investment Grade Bond Central Fund (h) | | 64,048,057 | 7,256,004 |
| TOTAL FIXED-INCOME FUNDS | | | |
| (Cost $8,291,025) | | | 8,613,275 |
|
| Money Market Funds - 0.8% | | | |
| Fidelity Cash Central Fund 2.13% (i) | | 185,470,342 | 185,507 |
| Fidelity Securities Lending Cash Central Fund 2.13% (i)(j) | | 25,457,954 | 25,461 |
| TOTAL MONEY MARKET FUNDS | | | |
| (Cost $210,967) | | | 210,968 |
| TOTAL INVESTMENT IN SECURITIES - 100.0% | | | |
| (Cost $21,803,515) | | | 26,986,179 |
| NET OTHER ASSETS (LIABILITIES) - 0.0% | | | (5,346) |
| NET ASSETS - 100% | | | $26,980,833 |
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) Affiliated company
(d) Investment is owned by a wholly-owned subsidiary (Subsidiary) that is treated as a corporation for U.S. tax purposes.
(e) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $463,273,000 or 1.7% of net assets.
(f) Level 3 security
(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 $7,503,000 or 0.0% of net assets.
(h) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. A complete unaudited schedule of portfolio holdings for each Fidelity Central Fund is filed with the SEC for the first and third quarters of each fiscal year on Form N-PORT and is available upon request or at the SEC's website at www.sec.gov. An unaudited holdings listing for the Fund, which presents direct holdings as well as the pro-rata share of securities and other investments held indirectly through its investment in underlying non-money market Fidelity Central Funds, is available at fidelity.com and/or institutional.fidelity.com, as applicable. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(i) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(j) Investment made with cash collateral received from securities on loan.
Additional information on each restricted holding is as follows:
| Security | Acquisition Date | Acquisition Cost (000s) |
| Ant International Co. Ltd. Class C | 5/16/18 | $10,000 |
| Atom Tickets LLC | 8/15/17 | $15,000 |
| Blu Homes, Inc. | 6/10/13 | $5,000 |
| Generation Bio Series B | 2/21/18 | $3,388 |
| Get Heal, Inc. Series B | 11/7/16 | $2,597 |
| Goop International Holdings, Inc. Series C | 12/15/17 | $20,000 |
| Goop International Holdings, Inc. Series D | 6/21/19 | $5,000 |
| Jello Labs, Inc. Series C | 12/22/16 | $17,000 |
| Moda Operandi, Inc. Series E | 12/18/14 | $20,000 |
| Moda Operandi, Inc. Series F | 12/13/17 | $8,526 |
| Mulberry Health, Inc. Series A-8 | 1/20/16 | $20,000 |
| Mulberry Health, Inc. Series A-9 | 3/23/18 | $5,000 |
| Mulberry Health, Inc. Series AA-9 | 3/23/18 | $170 |
| Neutron Holdings, Inc. Series C | 7/3/18 | $7,056 |
| Neutron Holdings, Inc. Series D | 1/25/19 | $9,900 |
| Peloton Interactive, Inc. Series E | 3/31/17 | $10,000 |
| Rent the Runway, Inc. Series E | 12/22/16 | $30,000 |
| Rent the Runway, Inc. Series F | 3/21/19 | $5,000 |
| Space Exploration Technologies Corp. Class A | 9/11/17 | $5,551 |
| Space Exploration Technologies Corp. Class C | 9/11/17 | $757 |
| Space Exploration Technologies Corp. Series H | 8/4/17 | $7,009 |
| The Honest Co., Inc. Series D | 8/3/15 | $9,000 |
| The Honest Co., Inc. Series E | 9/28/17 | $20,000 |
| The Void LLC | 12/21/17 | $20,000 |
| Tory Burch LLC Class A | 5/14/15 | $50,000 |
| Tory Burch LLC Class B | 12/31/12 | $17,505 |
| TulCo LLC | 8/24/17 - 12/14/17 | $15,000 |
| Vice Holding, Inc. | 8/3/12 - 7/18/14 | $61,641 |
| WME Entertainment Parent, LLC Class A | 4/13/16 - 8/16/16 | $50,000 |
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
| Fund | Income earned |
| | (Amounts in thousands) |
| Fidelity Cash Central Fund | $14,427 |
| Fidelity High Income Central Fund | 29,051 |
| Fidelity Investment Grade Bond Central Fund | 82,617 |
| Fidelity Mortgage Backed Securities Central Fund | 38,681 |
| Fidelity Securities Lending Cash Central Fund | 1,547 |
| Total | $166,323 |
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.
Fiscal year to date information regarding the Fund’s investments in non-Money Market Central Funds, including the ownership percentage, is presented below.
| Fund (Amounts in thousands) | Value, beginning of period | Purchases(a) | Sales Proceeds(a) | Realized Gain/Loss | Change in Unrealized appreciation (depreciation) | Value, end of period | % ownership, end of period |
| Fidelity High Income Central Fund | $-- | $1,413,989 | $54,048 | $(430) | $(2,240) | $1,357,271 | 52.2% |
| Fidelity Investment Grade Bond Central Fund | -- | 7,690,706 | 776,732 | 17,540 | 324,490 | 7,256,004 | 47.0% |
| Fidelity Mortgage Backed Securities Central Fund | 1,547,167 | 434,549 | 2,023,773 | 48,328 | (6,271) | -- | 0.0% |
| Total | $1,547,167 | $9,539,244 | $2,854,553 | $65,438 | $315,979 | $8,613,275 | |
(a) Includes the value of shares purchased or redeemed through in-kind transactions, if applicable.
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 |
| LiveXLive Media, Inc. | $20,381 | $5,642 | $156 | $-- | $(38) | $(11,216) | $14,613 |
| Total | $20,381 | $5,642 | $156 | $-- | $(38) | $(11,216) | $14,613 |
(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 August 31, 2019, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| | Valuation Inputs at Reporting Date: |
| Description | Total | Level 1 | Level 2 | Level 3 |
| (Amounts in thousands) | | | | |
| Investments in Securities: | | | | |
| Equities: | | | | |
| Communication Services | $2,050,916 | $1,918,642 | $-- | $132,274 |
| Consumer Discretionary | 2,444,757 | 2,058,077 | 194,886 | 191,794 |
| Consumer Staples | 1,221,662 | 1,221,662 | -- | -- |
| Energy | 232,539 | 232,539 | -- | -- |
| Financials | 1,990,722 | 1,990,722 | -- | -- |
| Health Care | 2,640,825 | 2,583,680 | 27,444 | 29,701 |
| Industrials | 1,294,601 | 1,200,607 | 49,390 | 44,604 |
| Information Technology | 4,826,146 | 4,822,275 | -- | 3,871 |
| Materials | 470,552 | 470,552 | -- | -- |
| Real Estate | 823,679 | 810,845 | -- | 12,834 |
| Utilities | 165,537 | 165,537 | -- | -- |
| Fixed-Income Funds | 8,613,275 | 8,613,275 | -- | -- |
| Money Market Funds | 210,968 | 210,968 | -- | -- |
| Total Investments in Securities: | $26,986,179 | $26,299,381 | $271,720 | $415,078 |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value:
| (Amounts in thousands) | |
| Investments in Securities: | |
| Equities - Consumer Discretionary | |
| Beginning Balance | $418,843 |
| Net Realized Gain (Loss) on Investment Securities | 207 |
| Net Unrealized Gain (Loss) on Investment Securities | (218,713) |
| Cost of Purchases | 24,937 |
| Proceeds of Sales | (6,815) |
| Amortization/Accretion | -- |
| Transfers into Level 3 | -- |
| Transfers out of Level 3 | (26,665) |
| Ending Balance | $191,794 |
| The change in unrealized gain (loss) for the period attributable to Level 3 securities held at August 31, 2019 | $(171,338) |
| Other Investments in Securities | |
| Beginning Balance | $248,058 |
| Net Realized Gain (Loss) on Investment Securities | (7,491) |
| Net Unrealized Gain (Loss) on Investment Securities | 63,780 |
| Cost of Purchases | 65 |
| Proceeds of Sales | (81,162) |
| Amortization/Accretion | 34 |
| Transfers into Level 3 | -- |
| Transfers out of Level 3 | -- |
| Ending Balance | $223,284 |
| The change in unrealized gain (loss) for the period attributable to Level 3 securities held at August 31, 2019 | $114,516 |
The information used in the above reconciliations represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliations are included in Net Gain (Loss) on the Fund's Statement of Operations.
Other Information
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 | 10.9% |
| AAA,AA,A | 3.1% |
| BBB | 8.0% |
| BB | 2.7% |
| B | 1.9% |
| CCC,CC,C | 0.9% |
| D | 0.1% |
| Not Rated | 0.4% |
| Equities | 67.4% |
| Short-Term Investments and Net Other Assets | 4.6% |
| | 100.0% |
We have used ratings from Moody's Investors Service, Inc. Where Moody's® ratings are not available, we have used S&P® ratings. All ratings are as of the date indicated and do not reflect subsequent changes.
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 | 1.6% |
| Netherlands | 1.6% |
| United Kingdom | 1.5% |
| Ireland | 1.3% |
| Cayman Islands | 1.1% |
| Others (Individually Less Than 1%) | 3.6% |
| | 100.0% |
The information in the above tables is based on the combined investments of the fund and its pro-rata share of the investments of Fidelity's Fixed-Income Central Funds.
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) | | August 31, 2019 |
| Assets | | |
Investment in securities, at value (including securities loaned of $25,102) — See accompanying schedule:
Unaffiliated issuers (cost $13,279,994) | $18,147,323 | |
| Fidelity Central Funds (cost $8,501,992) | 8,824,243 | |
| Other affiliated issuers (cost $21,529) | 14,613 | |
| Total Investment in Securities (cost $21,803,515) | | $26,986,179 |
| Restricted cash | | 116 |
| Receivable for investments sold | | 83,954 |
| Receivable for fund shares sold | | 16,638 |
| Dividends receivable | | 17,197 |
| Interest receivable | | 88 |
| Distributions receivable from Fidelity Central Funds | | 450 |
| Prepaid expenses | | 61 |
| Other receivables | | 1,628 |
| Total assets | | 27,106,311 |
| Liabilities | | |
| Payable to custodian bank | $31 | |
| Payable for investments purchased | 67,953 | |
| Payable for fund shares redeemed | 19,295 | |
| Accrued management fee | 8,645 | |
| Other affiliated payables | 2,732 | |
| Other payables and accrued expenses | 1,351 | |
| Collateral on securities loaned | 25,471 | |
| Total liabilities | | 125,478 |
| Net Assets | | $26,980,833 |
| Net Assets consist of: | | |
| Paid in capital | | $21,282,334 |
| Total distributable earnings (loss) | | 5,698,499 |
| Net Assets | | $26,980,833 |
| Net Asset Value and Maximum Offering Price | | |
| Puritan: | | |
| Net Asset Value, offering price and redemption price per share ($21,319,113 ÷ 961,735 shares) | | $22.17 |
| Class K: | | |
| Net Asset Value, offering price and redemption price per share ($5,661,720 ÷ 255,580 shares) | | $22.15 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| Amounts in thousands | | Year ended August 31, 2019 |
| Investment Income | | |
| Dividends | | $228,158 |
| Interest (including $208 from security lending) | | 179,284 |
| Income from Fidelity Central Funds (including $1,547 from security lending) | | 165,778 |
| Total income | | 573,220 |
| Expenses | | |
| Management fee | $105,445 | |
| Transfer agent fees | 30,908 | |
| Accounting and security lending fees | 2,241 | |
| Custodian fees and expenses | 275 | |
| Independent trustees' fees and expenses | 162 | |
| Registration fees | 244 | |
| Audit | 167 | |
| Legal | 59 | |
| Miscellaneous | 186 | |
| Total expenses before reductions | 139,687 | |
| Expense reductions | (1,264) | |
| Total expenses after reductions | | 138,423 |
| Net investment income (loss) | | 434,797 |
| Realized and Unrealized Gain (Loss) | | |
| Net realized gain (loss) on: | | |
| Investment securities: | | |
| Unaffiliated issuers (net of foreign taxes of $241) | 1,820,117 | |
| Redemptions in-kind with affiliated entities | 180,914 | |
| Fidelity Central Funds | 65,432 | |
| Other affiliated issuers | (38) | |
| Foreign currency transactions | 182 | |
| Futures contracts | (33,040) | |
| Capital gain distributions from Fidelity Central Funds | 545 | |
| Total net realized gain (loss) | | 2,034,112 |
| Change in net unrealized appreciation (depreciation) on: | | |
| Investment securities: | | |
| Unaffiliated issuers (net of decrease in deferred foreign taxes of $236) | (2,600,119) | |
| Fidelity Central Funds | 315,985 | |
| Other affiliated issuers | (11,216) | |
| Assets and liabilities in foreign currencies | (5) | |
| Total change in net unrealized appreciation (depreciation) | | (2,295,355) |
| Net gain (loss) | | (261,243) |
| Net increase (decrease) in net assets resulting from operations | | $173,554 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Amounts in thousands | Year ended August 31, 2019 | Year ended August 31, 2018 |
| Increase (Decrease) in Net Assets | | |
| Operations | | |
| Net investment income (loss) | $434,797 | $434,354 |
| Net realized gain (loss) | 2,034,112 | 2,067,514 |
| Change in net unrealized appreciation (depreciation) | (2,295,355) | 1,226,331 |
| Net increase (decrease) in net assets resulting from operations | 173,554 | 3,728,199 |
| Distributions to shareholders | (3,621,517) | – |
| Distributions to shareholders from net investment income | – | (374,856) |
| Distributions to shareholders from net realized gain | – | (766,442) |
| Total distributions | (3,621,517) | (1,141,298) |
| Share transactions - net increase (decrease) | 953,016 | 559,715 |
| Total increase (decrease) in net assets | (2,494,947) | 3,146,616 |
| Net Assets | | |
| Beginning of period | 29,475,780 | 26,329,164 |
| End of period | $26,980,833 | $29,475,780 |
| Other Information | | |
| Undistributed net investment income end of period | | $116,716 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Puritan Fund
| Years ended August 31, | 2019 | 2018 | 2017 | 2016 | 2015 |
| Selected Per–Share Data | | | | | |
| Net asset value, beginning of period | $25.10 | $22.90 | $21.07 | $21.02 | $22.91 |
| Income from Investment Operations | | | | | |
| Net investment income (loss)A | .34 | .37 | .37 | .36 | .47B |
| Net realized and unrealized gain (loss) | (.27) | 2.81 | 2.21 | 1.10 | (.33) |
| Total from investment operations | .07 | 3.18 | 2.58 | 1.46 | .14 |
| Distributions from net investment income | (.36)C | (.32) | (.39)C | (.34) | (.46) |
| Distributions from net realized gain | (2.63)C | (.67) | (.36)C | (1.07) | (1.57) |
| Total distributions | (3.00)D | (.98)E | (.75) | (1.41) | (2.03) |
| Net asset value, end of period | $22.17 | $25.10 | $22.90 | $21.07 | $21.02 |
| Total ReturnF | 1.17% | 14.34% | 12.64% | 7.36% | .87% |
| Ratios to Average Net AssetsG,H | | | | | |
| Expenses before reductions | .53% | .54% | .55% | .56% | .56% |
| Expenses net of fee waivers, if any | .53% | .53% | .55% | .56% | .56% |
| Expenses net of all reductions | .53% | .53% | .55% | .55% | .55% |
| Net investment income (loss) | 1.58% | 1.54% | 1.73% | 1.77% | 2.13%B |
| Supplemental Data | | | | | |
| Net assets, end of period (in millions) | $21,319 | $22,864 | $20,132 | $19,754 | $18,812 |
| Portfolio turnover rateI | 132%J | 44%J | 45% | 36% | 106% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $.13 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.55%.
C The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
D Total distributions of $3.00 per share is comprised of distributions from net investment income of $.369 and distributions from net realized gain of $2.628 per share.
E Total distributions of $.98 per share is comprised of distributions from net investment income of $.318 and distributions from net realized gain of $.666 per share.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses of any underlying non-money market Fidelity Central Funds were less than .005%.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
J Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Fidelity Puritan Fund Class K
| Years ended August 31, | 2019 | 2018 | 2017 | 2016 | 2015 |
| Selected Per–Share Data | | | | | |
| Net asset value, beginning of period | $25.09 | $22.89 | $21.06 | $21.01 | $22.90 |
| Income from Investment Operations | | | | | |
| Net investment income (loss)A | .36 | .39 | .39 | .38 | .49B |
| Net realized and unrealized gain (loss) | (.28) | 2.81 | 2.21 | 1.10 | (.33) |
| Total from investment operations | .08 | 3.20 | 2.60 | 1.48 | .16 |
| Distributions from net investment income | (.38)C | (.34) | (.41)C | (.36) | (.48) |
| Distributions from net realized gain | (2.63)C | (.67) | (.36)C | (1.07) | (1.57) |
| Total distributions | (3.02)D | (1.00)E | (.77) | (1.43) | (2.05) |
| Net asset value, end of period | $22.15 | $25.09 | $22.89 | $21.06 | $21.01 |
| Total ReturnF | 1.22% | 14.44% | 12.76% | 7.48% | .96% |
| Ratios to Average Net AssetsG,H | | | | | |
| Expenses before reductions | .45% | .45% | .46% | .46% | .46% |
| Expenses net of fee waivers, if any | .45% | .45% | .46% | .46% | .46% |
| Expenses net of all reductions | .44% | .44% | .45% | .46% | .46% |
| Net investment income (loss) | 1.67% | 1.63% | 1.82% | 1.86% | 2.23%B |
| Supplemental Data | | | | | |
| Net assets, end of period (in millions) | $5,662 | $6,612 | $6,198 | $6,009 | $5,939 |
| Portfolio turnover rateI | 132%J | 44%J | 45% | 36% | 106% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $.13 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.65%.
C The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
D Total distributions of $3.02 per share is comprised of distributions from net investment income of $.389 and distributions from net realized gain of $2.628 per share.
E Total distributions of $1.00 per share is comprised of distributions from net investment income of $.337 and distributions from net realized gain of $.666 per share.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses of any underlying non-money market Fidelity Central Funds were less than .005%.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
J Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended August 31, 2019
(Amounts in thousands except percentages)
1. Organization.
Fidelity Puritan Fund (the Fund) is a fund of Fidelity Puritan Trust (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 Puritan and Class K shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
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 Fund. These strategies are consistent with the investment objectives of the 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 Fund. The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date ranged from less than .005% to .01%. The following summarizes the Fund's investment in each non-money market Fidelity Central Fund.
| Fidelity Central Fund | Investment Manager | Investment Objective | Investment Practices | Expense Ratio(a) |
| Fidelity High Income Central Fund | FMR Co., Inc. (FMRC) | Seeks a high level of income and may also seek capital appreciation by investing primarily in debt securities, preferred stocks, and convertible securities, with an emphasis on lower-quality debt securities. | Loans & Direct Debt Instruments
Restricted Securities | Less than .005% |
| Fidelity Mortgage Backed Securities Central Fund | FIMM | Seeks a high level of income by normally investing in investment-grade mortgage-related securities and repurchase agreements for those securities. | Delayed Delivery & When Issued Securities
Futures
Options
Swaps | Less than .005% |
| Fidelity Investment Grade Bond Central Fund | FIMM | Seeks a high level of income by normally investing in investment–grade debt securities. | Delayed Delivery & When Issued Securities
Futures
Repurchase Agreements
Restricted Securities
Swaps | 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.
An unaudited holdings listing for the Fund, which presents direct holdings as well as the pro-rata share of any securities and other investments held indirectly through its investment in underlying non-money market Fidelity Central Funds, is available at fidelity.com. A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds which contain the significant accounting policies (including investment valuation policies) of those funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investments Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy. Equity securities, including restricted securities, for which observable inputs are not available are valued using alternate valuation approaches, including the market approach and the income approach and are categorized as Level 3 in the hierarchy. The market approach generally consists of using comparable market transactions while the income approach generally consists of using the net present value of estimated future cash flows, adjusted as appropriate for liquidity, credit, market and/or other risk factors.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
The following provides information on Level 3 securities held by the Fund that were valued at period end based on unobservable inputs. These amounts exclude valuations provided by a broker.
| Asset Type | Fair Value | Valuation Technique(s) | Unobservable Input | Amount or Range/Weighted Average | Impact to Valuation from an Increase in Input(a) |
| Equities | $415,078 | Market comparable | Enterprise value/Sales multiple (EV/S) | 1.2 - 8.1 / 3.6 | Increase |
| | | | Transaction price | $9.15 | Increase |
| | | | Discount rate | 6.0% - 60.0% / 16.8% | Decrease |
| | | | Discount for lack of marketability | 10.0% - 25.0% / 11.2% | Decrease |
| | | | Liquidity preference | $19.60 - $45.76 / $27.72 | Increase |
| | | | Enterprise value/EBITDA (EV/EBITDA) | 10.5 - 11.6 / 11.1 | Increase |
| | | | Proxy discount | 0.6% | Decrease |
| | | | Premium rate | 25.1% - 75.7% / 56.1% | Increase |
| | | Recovery value | Recovery value | 0.0% | Increase |
| | | Market approach | Transaction price | $0.00 - $548.17 / $141.27 | 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 August 31, 2019, as well as a roll forward of Level 3 investments, is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Paid in Kind (PIK) income is recorded at the fair market value of the securities received. The principal amount on inflation-indexed securities is periodically adjusted to the rate of inflation and interest is accrued based on the principal amount. The adjustments to principal due to inflation are reflected as increases or decreases to Interest in the accompanying Statement of Operations. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan) for the Fund, certain independent Trustees have elected to defer receipt of a portion of their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees of $1,254 are included in the accompanying Statement of Assets and Liabilities in other receivables and other payables and accrued expenses, respectively.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. As of August 31, 2019, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests. The Fund is subject to a tax imposed on capital gains by certain countries in which it invests. An estimated deferred tax liability for net unrealized appreciation on the applicable securities is included in Other payables and accrued expenses on the Statement of Assets & Liabilities.
Distributions are declared and recorded on the ex-dividend date. Income and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. These differences resulted in distribution reclassifications. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to the short-term gain distributions from the Underlying Funds, futures contracts, foreign currency transactions, certain foreign taxes, passive foreign investment companies (PFIC), market discount, contingent interest, deferred trustees compensation, redemptions in kind, partnerships (including allocations from Fidelity Central Funds), equity-debt classifications, losses deferred due to wash sales and excise tax regulations.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
| Gross unrealized appreciation | $5,496,234 |
| Gross unrealized depreciation | (345,058) |
| Net unrealized appreciation (depreciation) | $5,151,176 |
| Tax Cost | $21,835,003 |
The tax-based components of distributable earnings as of period end were as follows:
| Undistributed ordinary income | $76,039 |
| Undistributed long-term capital gain | $547,309 |
| Net unrealized appreciation (depreciation) on securities and other investments | $5,151,175 |
The Fund intends to elect to defer to its next fiscal year $75,000 of capital losses recognized during the period November 1, 2018 to August 31, 2019.
The tax character of distributions paid was as follows:
| | August 31, 2019 | August 31, 2018 |
| Ordinary Income | $457,412 | $ 404,001 |
| Long-term Capital Gains | 3,164,105 | 737,297 |
| Total | $3,621,517 | $ 1,141,298 |
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
Consolidated Subsidiary. The Fund invests in certain investments through a wholly-owned subsidiary ("Subsidiary"), which may be subject to federal and state taxes upon disposition.
As of period end, the Fund held an investment of $159,991 in these Subsidiaries, representing .59% of the Fund's net assets. The financial statements have been consolidated and include accounts of the Fund and each Subsidiary. Accordingly, all inter-company transactions and balances have been eliminated.
Any cash held by the Subsidiaries is restricted as to its use and is presented as Restricted cash in the Statement of Assets and Liabilities.
New Rule Issuance. During August 2018, the U.S. Securities and Exchange Commission issued Final Rule Release No. 33-10532, Disclosure Update and Simplification. This Final Rule includes amendments specific to registered investment companies that are intended to eliminate overlap in disclosure requirements between Regulation S-X and GAAP. In accordance with these amendments, certain line-items in the Fund's financial statements have been combined or removed for the current period as outlined in the table below.
| Financial Statement | Current Line-Item Presentation (As Applicable) | Prior Line-Item Presentation (As Applicable) |
| Statement of Assets and Liabilities | Total distributable earnings (loss) | Undistributed/Distributions in excess of/Accumulated net investment income (loss)
Accumulated/Undistributed net realized gain (loss)
Net unrealized appreciation (depreciation) |
| Statement of Changes in Net Assets | N/A - removed | Undistributed/Distributions in excess of/Accumulated net investment income (loss) end of period |
| Statement of Changes in Net Assets | Distributions to shareholders | Distributions to shareholders from net investment income
Distributions to shareholders from net realized gain |
| Distributions to Shareholders Note to Financial Statements | Distributions to shareholders | Distributions to shareholders from net investment income
Distributions to shareholders from net realized gain |
4. 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. For the period, the average monthly notional amount at value for futures contracts in the aggregate was $4,164.
5. Purchases and Sales of Investments.
Purchases and sales of securities (including the Fixed-Income Central Funds), other than short-term securities, U.S. government securities, and certain in-kind transactions, aggregated $33,294,762 and $31,334,633, respectively.
6. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .15% of the Fund's average net assets and an annualized group fee rate that averaged .24% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annual management fee rate was .39% of the Fund's average net assets.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of Puritan, 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 |
| Puritan | $28,191 | .13 |
| Class K | 2,717 | .05 |
| | $30,908 | |
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Prior to April 1, 2019, FSC had a separate agreement with the Fund for administration of the security lending program, based on the number and duration of lending transactions. For the period, the total fees paid for accounting and administration of securities lending were equivalent to an annual rate of .01%.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $518 for the period.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
Affiliated Exchanges In-Kind. During the period, the Fund completed exchanges in-kind with Fidelity Investment Grade Bond Central Fund and Fidelity High Income Central Fund (formerly Fidelity High Income Central Fund 2). The Fund delivered investments, including accrued interest, and cash valued at $7,608,088 and $1,384,938 to Fidelity Investment Grade Bond Central Fund and Fidelity High Income Central Fund in exchange for 70,309 and 12,414 shares, respectively. The net realized gain of $157,088 on investments delivered through in-kind redemptions is included in the accompanying Statement of Operations. The Fund recognized gains for federal income tax purposes.
In addition, the Fund redeemed 18,856 shares of Fidelity Mortgage Backed Securities Central Fund in exchange for investments and cash, including accrued interest, with a value of $2,023,773. The net realized gains of $48,383 on the Fund's redemptions of Fidelity Mortgage Backed Securities Central Fund shares are included in "Net realized gain (loss) on Investment securities: Fidelity Central Funds" in the accompanying Statement of Operations. The Fund recognized gains on the exchanges for federal income tax purposes.
Affiliated Redemptions In-Kind. During the period, 3,722 shares of the Fund were redeemed in-kind for investments and cash with a value of $81,770. The net realized gain of $23,826 on investments delivered through in-kind redemptions is included in the accompanying Statement of Operations. The amount of the in-kind redemptions is included in share transactions in the accompanying Statement of Changes in Net Assets as well as the Notes to Financial Statements. The Fund recognized no gain or loss for federal income tax purposes.
Prior Fiscal Year Affiliated Exchanges In-Kind. During the prior period, the Fund completed an exchange in-kind with Fidelity Mortgage Back Securities Central Fund. The Fund delivered investments, including accrued interest valued at $74,989 (which included $19 of unrealized depreciation), in exchange for 695 shares of Fidelity Mortgage Backed Securities Central Fund. The Fund generally did not recognize gain or loss for federal income tax purposes.
Other. During the period, the investment adviser reimbursed the Fund for certain losses in the amount of $63.
7. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $74 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
8. Security Lending.
The Fund lends portfolio securities from time to time in order to earn additional income. For equity securities, lending agents are used, including National Financial Services (NFS), an affiliate of the Fund. Pursuant to a securities lending agreement, NFS will receive a fee, which is capped at 9.9% of daily lending revenue, for its services as lending agent. The Fund may lend securities to certain qualified borrowers, including NFS. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is maintained at the Fund's custodian and/or invested in cash equivalents and/or the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. The value of securities loaned to NFS, as affiliated borrower, at period end was $202. Total fees paid by the Fund to NFS, as lending agent, amounted to $1. 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. Total security lending income during the period is presented in the Statement of Operations as a component of interest income. Net income from the Fidelity Securities Lending Cash Central Fund during the period is presented in the Statement of Operations as a component of income from Fidelity Central Funds (and includes $106 from securities loaned to NFS, as affiliated borrower).
9. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $1,000 for the period. In addition, through arrangements with the Fund's custodian and each class' transfer agent, 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 $26. During the period, transfer agent credits reduced each class' expenses as noted in the table below.
| | Expense reduction |
| Puritan | $31 |
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $207.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
| | Year ended
August 31, 2019 | Year ended
August 31, 2018 |
| Distributions to shareholders | | |
| Puritan | $2,813,985 | $– |
| Class K | 807,532 | – |
| Total | $3,621,517 | $– |
| From net investment income | | |
| Puritan | $– | $284,446 |
| Class K | – | 90,410 |
| Total | $– | $374,856 |
| From net realized gain | | |
| Puritan | $– | $586,678 |
| Class K | – | 179,764 |
| Total | $– | $766,442 |
11. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
| | Shares | Shares | Dollars | Dollars |
| | Year ended August 31, 2019 | Year ended August 31, 2018 | Year ended August 31, 2019 | Year ended August 31, 2018 |
| Puritan | | | | |
| Shares sold | 89,485 | 116,115 | $1,968,246 | $2,767,345 |
| Reinvestment of distributions | 124,730 | 35,650 | 2,667,252 | 823,587 |
| Shares redeemed | (163,199) | (120,147) | (3,514,587) | (2,852,632) |
| Net increase (decrease) | 51,016 | 31,618 | $1,120,911 | $738,300 |
| Class K | | | | |
| Shares sold | 32,207 | 38,459 | $703,067 | $912,229 |
| Reinvestment of distributions | 37,792 | 11,704 | 807,484 | 270,174 |
| Shares redeemed | (77,948)(a) | (57,431) | (1,678,446)(a) | (1,360,988) |
| Net increase (decrease) | (7,949) | (7,268) | $(167,895) | $(178,585) |
(a) Amount includes in-kind redemptions (see the Affiliated Redemptions In-Kind note for additional details).
12. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Fidelity Puritan Trust and Shareholders of Fidelity Puritan Fund:
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Fidelity Puritan Fund (one of the funds constituting Fidelity Puritan Trust, referred to hereafter as the “Fund”) as of August 31, 2019, the related statement of operations for the year ended August 31, 2019, the statement of changes in net assets for each of the two years in the period ended August 31, 2019, including the related notes, and the financial highlights for each of the five years in the period ended August 31, 2019 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of August 31, 2019, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended August 31, 2019 and the financial highlights for each of the five years in the period ended August 31, 2019 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of August 31, 2019 by correspondence with the custodian, issuers of privately offered securities and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Boston, Massachusetts
October 17, 2019
We have served as the auditor of one or more investment companies in the Fidelity group of funds since 1932.
Trustees and Officers
The Trustees, Members of the Advisory Board (if any), and officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Except for Jonathan Chiel, each of the Trustees oversees 298 funds. Mr. Chiel oversees 170 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the fund is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund's Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544 if you’re an individual investing directly with Fidelity, call 1-800-835-5092 if you’re a plan sponsor or participant with Fidelity as your recordkeeper or call 1-877-208-0098 on institutional accounts or if you’re an advisor or invest through one.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Board Structure and Oversight Function. James C. Curvey is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Ned C. Lautenbach serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and other equity funds. The asset allocation funds may invest in Fidelity® funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Jonathan Chiel (1957)
Year of Election or Appointment: 2016
Trustee
Mr. Chiel also serves as Trustee of other Fidelity® funds. Mr. Chiel is Executive Vice President and General Counsel for FMR LLC (diversified financial services company, 2012-present). Previously, Mr. Chiel served as general counsel (2004-2012) and senior vice president and deputy general counsel (2000-2004) for John Hancock Financial Services; a partner with Choate, Hall & Stewart (1996-2000) (law firm); and an Assistant United States Attorney for the United States Attorney’s Office of the District of Massachusetts (1986-95), including Chief of the Criminal Division (1993-1995). Mr. Chiel is a director on the boards of the Boston Bar Foundation and the Maimonides School.
James C. Curvey (1935)
Year of Election or Appointment: 2007
Trustee
Chairman of the Board of Trustees
Mr. Curvey also serves as Trustee of other Fidelity® funds. Mr. Curvey is Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey is an Overseer Emeritus for the Boston Symphony Orchestra, a Director of Artis-Naples, and a Trustee of Brewster Academy in Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-2018), Director of Fidelity Investments Money Management, Inc. (investment adviser firm, 2009-2014) and a Director of FMR and FMR Co., Inc. (investment adviser firms, 2007-2014).
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), as a member of the Independent Directors Council (IDC) Governing Council (2010-2015), and as a member of the Board of Directors for The Brookville Center for Children’s Services, Inc. (2009-2017). Mr. Dirks is a member of the Finance Committee (2016-present) and Board of Directors (2017-present) and is Treasurer (2018-present) of the Asolo Repertory Theatre.
Donald F. Donahue (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Donahue also serves as a Trustee of other Fidelity® funds. Mr. Donahue is President and Chief Executive Officer of Miranda Partners, LLC (risk consulting for the financial services industry, 2012-present). Previously, Mr. Donahue served as a Member of the Advisory Board of certain Fidelity® funds (2015-2018) and Chief Executive Officer (2006-2012), Chief Operating Officer (2003-2006), and Managing Director, Customer Marketing and Development (1999-2003) of The Depository Trust & Clearing Corporation (financial markets infrastructure). Mr. Donahue serves as a Member (2007-present) and Co-Chairman (2016-present) of the Board of Directors of United Way of New York, Member of the Board of Directors of NYC Leadership Academy (2012-present) and Member of the Board of Advisors of Ripple Labs, Inc. (financial services, 2015-present). He also served as Chairman (2010-2012) and Member of the Board of Directors (2012-2013) of Omgeo, LLC (financial services), Treasurer of United Way of New York (2012-2016), and Member of the Board of Directors of XBRL US (financial services non-profit, 2009-2012) and the International Securities Services Association (2009-2012).
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2014-2017) and a member (2010-2017) of the Board of Directors of Dave & Buster’s Entertainment, Inc. (restaurant and entertainment complexes), as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association, and as a member of the Board of Directors for The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), Earth Fare, Inc. (retail grocery, 2010-2014), and The Western Union Company (global money transfer, 2006-2011).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as Chair (2018-present) and Member (2013-present) of the Board of Governors, State University System of Florida and is a member of the Council on Foreign Relations (1994-present). He is also a member and has most recently served as Chairman of the Board of Directors of Artis-Naples (2012-present). Previously, Mr. Lautenbach served as a member and then Lead Director of the Board of Directors of Eaton Corporation (diversified industrial, 1997-2016). He was also a Partner and Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007). In addition, Mr. Lautenbach also had a 30-year career with IBM (technology company) during which time he served as Senior Vice President and a member of the Corporate Executive Committee (1968-1998).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-2018).
Cornelia M. Small (1944)
Year of Election or Appointment: 2005
Trustee
Ms. Small also serves as Trustee of other Fidelity® funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.
Garnett A. Smith (1947)
Year of Election or Appointment: 2018
Trustee
Mr. Smith also serves as Trustee of other Fidelity® funds. Prior to Mr. Smith's retirement, he served as Chairman and Chief Executive Officer of Inbrand Corp. (manufacturer of personal absorbent products, 1990-1997). He also served as President (1986-1990) of Inbrand Corp. Prior to his employment with Inbrand Corp., he was employed by a retail fabric chain and North Carolina National Bank. In addition, Mr. Smith served as a Member of the Advisory Board of certain Fidelity® funds (2012-2013) and as a board member of the Jackson Hole Land Trust (2009-2012).
David M. Thomas (1949)
Year of Election or Appointment: 2008
Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present) and as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), a Director of Fortune Brands, Inc. (consumer products, 2000-2011), and a member of the Board of Trustees of the University of Florida (2013-2018).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Advisory Board Members and Officers:
Correspondence intended for a Member of the Advisory Board (if any) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235. Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Vicki L. Fuller (1957)
Year of Election or Appointment: 2018
Member of the Advisory Board
Ms. Fuller also serves as Member of the Advisory Board of other Fidelity® funds. Ms. Fuller serves as a member of the Board of Directors, Audit Committee, and Nominating and Governance Committee of The Williams Companies, Inc. (natural gas infrastructure, 2018-present). Previously, Ms. Fuller served as the Chief Investment Officer of the New York State Common Retirement Fund (2012-2018) and held a variety of positions at AllianceBernstein L.P. (global asset management, 1985-2012), including Managing Director (2006-2012) and Senior Vice President and Senior Portfolio Manager (2001-2006).
Peter S. Lynch (1944)
Year of Election or Appointment: 2003
Member of the Advisory Board
Mr. Lynch also serves as Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of FMR (investment adviser firm) and FMR Co., Inc. (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).
Michael E. Wiley (1950)
Year of Election or Appointment: 2018
Member of the Advisory Board
Mr. Wiley also serves as Trustee or Member of the Advisory Board of other Fidelity® funds. Mr. Wiley serves as a Director of High Point Resources (exploration and production, 2005-present). Previously, Mr. Wiley served as a Director of Andeavor Corporation (independent oil refiner and marketer, 2005-2018), a Director of Andeavor Logistics LP (natural resources logistics, 2015-2018), a Director of Post Oak Bank (privately-held bank, 2004-2018), a Director of Asia Pacific Exploration Consolidated (international oil and gas exploration and production, 2008-2013), a member of the Board of Trustees of the University of Tulsa (2000-2006; 2007-2010), a Senior Energy Advisor of Katzenbach Partners, LLC (consulting, 2006-2007), an Advisory Director of Riverstone Holdings (private investment), a Director of Spinnaker Exploration Company (exploration and production, 2001-2005) and Chairman, President, and CEO of Baker Hughes, Inc. (oilfield services, 2000-2004).
Elizabeth Paige Baumann (1968)
Year of Election or Appointment: 2017
Anti-Money Laundering (AML) Officer
Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer (2012-present) and Senior Vice President (2014-present) of FMR LLC (diversified financial services company) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as AML Officer of the funds (2012-2016), and Vice President (2007-2014) and Deputy Anti-Money Laundering Officer (2007-2012) of FMR LLC.
Craig S. Brown (1977)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Brown also serves as Assistant Treasurer of other funds. Mr. Brown is an employee of Fidelity Investments (2013-present).
John J. Burke III (1964)
Year of Election or Appointment: 2018
Chief Financial Officer
Mr. Burke also serves as Chief Financial Officer of other funds. Mr. Burke serves as Head of Investment Operations for Fidelity Fund and Investment Operations (2018-present) and is an employee of Fidelity Investments (1998-present). Previously Mr. Burke served as head of Asset Management Investment Operations (2012-2018).
William C. Coffey (1969)
Year of Election or Appointment: 2019
Assistant Secretary
Mr. Coffey also serves as Assistant Secretary of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Secretary and CLO of certain funds (2018-2019); CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2018-2019); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2018-2019); CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2018-2019); and Assistant Secretary of certain funds (2009-2018).
Timothy M. Cohen (1969)
Year of Election or Appointment: 2018
Vice President
Mr. Cohen also serves as Vice President of other funds. Mr. Cohen serves as Executive Vice President of Fidelity SelectCo, LLC (2019-present), Co-Head of Equity (2018-present), a Director of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present), and is an employee of Fidelity Investments. Previously, Mr. Cohen served as Head of Global Equity Research (2016-2018), Chief Investment Officer - Equity and a Director of Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2013-2015) and as a Director of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2017).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds. Mr. Davis serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present), and is an employee of Fidelity Investments (2008-present). Previously, Mr. Deberghes served as President and Treasurer of certain Fidelity® funds (2013-2018). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). Previously, Mr. Deberghes served in other fund officer roles.
Laura M. Del Prato (1964)
Year of Election or Appointment: 2018
Assistant Treasurer
Ms. Del Prato also serves as an officer of other funds. Ms. Del Prato is an employee of Fidelity Investments (2017-present). Prior to joining Fidelity Investments, Ms. Del Prato served as a Managing Director and Treasurer of the JPMorgan Mutual Funds (2014-2017). Prior to JPMorgan, Ms. Del Prato served as a partner at Cohen Fund Audit Services (accounting firm, 2012-2013) and KPMG LLP (accounting firm, 2004-2012).
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2005-present). Previously, Mr. Hogan served as Assistant Treasurer of certain Fidelity® funds (2016-2018).
Pamela R. Holding (1964)
Year of Election or Appointment: 2018
Vice President
Ms. Holding also serves as Vice President of other funds. Ms. Holding serves as Executive Vice President of Fidelity SelectCo, LLC (2019-present), Co-Head of Equity (2018-present) and is an employee of Fidelity Investments (2013-present). Previously, Ms. Holding served as Chief Investment Officer of Fidelity Institutional Asset Management (2013-2018).
Cynthia Lo Bessette (1969)
Year of Election or Appointment: 2019
Secretary and Chief Legal Officer (CLO)
Ms. Lo Bessette also serves as Secretary and CLO of other funds. She is a Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2019-present), and is an employee of Fidelity Investments. Previously, Ms. Lo Bessette served as Executive Vice President, General Counsel (2016-2019) and Senior Vice President, Deputy General Counsel (2015-2016) of OppenheimerFunds (investment management company) and Deputy Chief Legal Officer (2013-2015) of Jennison Associates LLC (investment adviser firm).
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight, serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. Ms. Smith serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), is an employee of Fidelity Investments (2009-present), and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Assistant Treasurer (2013-2018) and Deputy Treasurer (2013-2016) of certain Fidelity® funds.
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
Jim Wegmann (1979)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Wegmann also serves as Assistant Treasurer of other funds. Mr. Wegmann is an employee of Fidelity Investments (2011-present).
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (March 1, 2019 to August 31, 2019).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
| | Annualized Expense Ratio-A | Beginning
Account Value
March 1, 2019 | Ending
Account Value
August 31, 2019 | Expenses Paid
During Period-B
March 1, 2019
to August 31, 2019 |
| Puritan | .53% | | | |
| Actual | | $1,000.00 | $1,055.60 | $2.75 |
| Hypothetical-C | | $1,000.00 | $1,022.53 | $2.70 |
| Class K | .44% | | | |
| Actual | | $1,000.00 | $1,056.10 | $2.28 |
| Hypothetical-C | | $1,000.00 | $1,022.99 | $2.24 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). The fees and expenses of the underlying Fidelity Central Funds in which the Fund invests are not included in each Class' annualized expense ratio. In addition to the expenses noted above, the Fund also indirectly bears its proportional share of the expenses of the underlying Fidelity Central Funds. Annualized expenses of the underlying non-money market Fidelity Central Funds as of their most recent fiscal half year were less than .005%.
C 5% return per year before expenses
Distributions (Unaudited)
The Board of Trustees of Fidelity Puritan Fund voted to pay to shareholders of record at the opening of business on record date, the following distributions per share derived from capital gains realized from sales of portfolio securities, and dividends derived from net investment income:
| | Pay Date | Record Date | Dividends | Capital Gains |
| Fidelity Puritan Fund | | | | |
| Puritan | 10/14/19 | 10/11/19 | $0.083 | $0.457 |
| Class K | 10/14/19 | 10/11/19 | $0.088 | $0.457 |
|
The fund hereby designates as a capital gain dividend with respect to the taxable year ended August 31, 2019, $2,050,734,464, or, if subsequently determined to be different, the net capital gain of such year.
A total of 10.20% of the dividends distributed during the fiscal year was derived from interest on U.S. Government securities which is generally exempt from state income tax.
The fund designates $109,112,954 of distributions paid during the period January 1, 2019 to August 31, 2019 as qualifying to be taxed as interest-related dividends for nonresident alien shareholders.
Puritan designates 9%, 43%, 57%, and 57%; Class K designates 9%, 41%, 54%, and 54% of the dividends distributed in October, December, April and July, respectively during the fiscal year as qualifying for the dividends–received deduction for corporate shareholders.
Puritan designates 11%, 47%, 66%, and 66%; Class K designates 10%, 44%, 62%, and 62% of the dividends distributed in October, December, April and July, respectively during the fiscal year as amounts which may be taken into account as a dividend for purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code.
The fund will notify shareholders in January 2020 of amounts for use in preparing 2019 income tax returns.
PUR-ANN-1019
1.536193.123
Fidelity® Balanced K6 Fund
Annual Report August 31, 2019 |
|
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of a fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a financial advisor, broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from a fund electronically, by contacting your financial intermediary. For Fidelity customers, visit Fidelity's web site or call Fidelity using the contact information listed below.
You may elect to receive all future reports in paper free of charge. If you wish to continue receiving paper copies of your shareholder reports, you may contact your financial intermediary or, if you are a Fidelity customer, visit Fidelity’s website, or call Fidelity at the applicable toll-free number listed below. Your election to receive reports in paper will apply to all funds held with the fund complex/your financial intermediary.
| Account Type | Website | Phone Number |
| Brokerage, Mutual Fund, or Annuity Contracts: | fidelity.com/mailpreferences | 1-800-343-3548 |
| Employer Provided Retirement Accounts: | netbenefits.fidelity.com/preferences (choose 'no' under Required Disclosures to continue to print) | 1-800-343-0860 |
| Advisor Sold Accounts Serviced Through Your Financial Intermediary: | Contact Your Financial Intermediary | Your Financial Intermediary's phone number |
| Advisor Sold Accounts Serviced by Fidelity: | institutional.fidelity.com | 1-877-208-0098 |
Contents
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-800-835-5092 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2019 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT. Forms N-PORT are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-PORT may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Investment Summary (Unaudited)
The information in the following tables is based on the combined investments of the Fund and its pro-rata share of the investments of Fidelity's Fixed-Income Central Funds.
Top Five Stocks as of August 31, 2019
| | % of fund's net assets |
| Microsoft Corp. | 3.4 |
| Apple, Inc. | 2.4 |
| Amazon.com, Inc. | 1.8 |
| Alphabet, Inc. Class C | 1.6 |
| Facebook, Inc. Class A | 1.5 |
| | 10.7 |
Top Five Bond Issuers as of August 31, 2019
| (with maturities greater than one year) | % of fund's net assets |
| U.S. Treasury Obligations | 6.5 |
| Fannie Mae | 2.4 |
| Ginnie Mae | 2.4 |
| Freddie Mac | 1.9 |
| Morgan Stanley | 0.6 |
| | 13.8 |
Top Five Market Sectors as of August 31, 2019
| | % of fund's net assets |
| Financials | 14.5 |
| Information Technology | 13.3 |
| Health Care | 10.0 |
| Communication Services | 7.9 |
| Consumer Discretionary | 7.4 |
Asset Allocation (% of fund's net assets)
| As of August 31, 2019* |
| | Stocks | 63.7% |
| | Bonds | 31.2% |
| | Other Investments | 0.5% |
| | Short-Term Investments and Net Other Assets (Liabilities) | 4.6% |
* Foreign investments – 9.8%
An unaudited holdings listing for the Fund, which presents direct holdings as well as the pro-rata share of any securities and other investments held indirectly through its investment in underlying non-money market Fidelity Central Funds, is available at fidelity.com and/or institutional.fidelity.com, as applicable.
Percentages in the above tables are adjusted for the effect of TBA Sale Commitments.
Schedule of Investments August 31, 2019
Showing Percentage of Net Assets
| Common Stocks - 63.6% | | | |
| | | Shares | Value |
| COMMUNICATION SERVICES - 6.5% | | | |
| Diversified Telecommunication Services - 0.6% | | | |
| AT&T, Inc. | | 256 | $9,027 |
| CenturyLink, Inc. | | 15 | 171 |
| | | | 9,198 |
| Entertainment - 1.5% | | | |
| Activision Blizzard, Inc. | | 98 | 4,959 |
| DouYu International Holdings Ltd. ADR | | 33 | 312 |
| Electronic Arts, Inc. (a) | | 23 | 2,155 |
| Netflix, Inc. (a) | | 19 | 5,581 |
| Take-Two Interactive Software, Inc. (a) | | 6 | 792 |
| The Walt Disney Co. | | 71 | 9,745 |
| Viacom, Inc. Class B (non-vtg.) | | 16 | 400 |
| | | | 23,944 |
| Interactive Media & Services - 3.9% | | | |
| Alphabet, Inc.: | | | |
| Class A (a) | | 6 | 7,143 |
| Class C (a) | | 22 | 26,138 |
| Facebook, Inc. Class A (a) | | 131 | 24,323 |
| Momo, Inc. ADR | | 18 | 662 |
| Tencent Holdings Ltd. | | 101 | 4,170 |
| Twitter, Inc. (a) | | 28 | 1,194 |
| | | | 63,630 |
| Media - 0.4% | | | |
| Comcast Corp. Class A | | 162 | 7,170 |
| Discovery Communications, Inc. Class A (a) | | 11 | 304 |
| | | | 7,474 |
| Wireless Telecommunication Services - 0.1% | | | |
| Boingo Wireless, Inc. (a) | | 21 | 270 |
| T-Mobile U.S., Inc. (a) | | 19 | 1,483 |
| | | | 1,753 |
|
| TOTAL COMMUNICATION SERVICES | | | 105,999 |
|
| CONSUMER DISCRETIONARY - 7.0% | | | |
| Auto Components - 0.1% | | | |
| Aptiv PLC | | 23 | 1,913 |
| Distributors - 0.1% | | | |
| LKQ Corp. (a) | | 51 | 1,340 |
| Hotels, Restaurants & Leisure - 1.6% | | | |
| ARAMARK Holdings Corp. | | 38 | 1,553 |
| Cedar Fair LP (depositary unit) | | 25 | 1,400 |
| Churchill Downs, Inc. | | 4 | 493 |
| Compass Group PLC | | 129 | 3,272 |
| Dunkin' Brands Group, Inc. | | 14 | 1,154 |
| Marriott International, Inc. Class A | | 23 | 2,899 |
| McDonald's Corp. | | 48 | 10,463 |
| Starbucks Corp. | | 32 | 3,090 |
| Wyndham Hotels & Resorts, Inc. | | 20 | 1,028 |
| | | | 25,352 |
| Household Durables - 0.2% | | | |
| Lennar Corp. Class A | | 66 | 3,366 |
| Internet & Direct Marketing Retail - 2.7% | | | |
| Alibaba Group Holding Ltd. sponsored ADR (a) | | 21 | 3,676 |
| Amazon.com, Inc. (a) | | 16 | 28,421 |
| MakeMyTrip Ltd. (a) | | 8 | 184 |
| Meituan Dianping Class B | | 636 | 6,019 |
| Naspers Ltd. Class N | | 2 | 455 |
| Pinduoduo, Inc. ADR (a) | | 54 | 1,770 |
| The Booking Holdings, Inc. (a) | | 2 | 3,933 |
| Waitr Holdings, Inc. (a) | | 39 | 67 |
| | | | 44,525 |
| Leisure Products - 0.0% | | | |
| Mattel, Inc. (a) | | 69 | 676 |
| Multiline Retail - 0.2% | | | |
| Dollar Tree, Inc. (a) | | 31 | 3,147 |
| Specialty Retail - 1.7% | | | |
| Lowe's Companies, Inc. | | 52 | 5,834 |
| O'Reilly Automotive, Inc. (a) | | 5 | 1,919 |
| The Children's Place Retail Stores, Inc. | | 8 | 698 |
| The Home Depot, Inc. | | 55 | 12,535 |
| TJX Companies, Inc. | | 111 | 6,102 |
| | | | 27,088 |
| Textiles, Apparel & Luxury Goods - 0.4% | | | |
| NIKE, Inc. Class B | | 40 | 3,380 |
| Prada SpA | | 165 | 462 |
| PVH Corp. | | 10 | 758 |
| Rattler Midstream LP | | 22 | 403 |
| Tapestry, Inc. | | 48 | 991 |
| | | | 5,994 |
|
| TOTAL CONSUMER DISCRETIONARY | | | 113,401 |
|
| CONSUMER STAPLES - 4.4% | | | |
| Beverages - 1.3% | | | |
| Constellation Brands, Inc. Class A (sub. vtg.) | | 16 | 3,270 |
| Diageo PLC | | 23 | 985 |
| Keurig Dr. Pepper, Inc. | | 26 | 709 |
| Monster Beverage Corp. (a) | | 38 | 2,229 |
| PepsiCo, Inc. | | 24 | 3,282 |
| The Coca-Cola Co. | | 202 | 11,118 |
| | | | 21,593 |
| Food & Staples Retailing - 0.7% | | | |
| Costco Wholesale Corp. | | 6 | 1,769 |
| Kroger Co. | | 39 | 924 |
| Sysco Corp. | | 33 | 2,453 |
| U.S. Foods Holding Corp. (a) | | 78 | 3,155 |
| Walmart, Inc. | | 25 | 2,857 |
| | | | 11,158 |
| Food Products - 0.7% | | | |
| Bunge Ltd. | | 20 | 1,068 |
| Conagra Brands, Inc. | | 45 | 1,276 |
| Mondelez International, Inc. | | 123 | 6,792 |
| The Kraft Heinz Co. | | 37 | 944 |
| The Simply Good Foods Co. (a) | | 24 | 711 |
| | | | 10,791 |
| Household Products - 1.0% | | | |
| Colgate-Palmolive Co. | | 65 | 4,820 |
| Energizer Holdings, Inc. | | 23 | 886 |
| Procter & Gamble Co. | | 94 | 11,302 |
| | | | 17,008 |
| Personal Products - 0.2% | | | |
| Coty, Inc. Class A | | 93 | 888 |
| Unilever NV | | 33 | 2,048 |
| | | | 2,936 |
| Tobacco - 0.5% | | | |
| Altria Group, Inc. | | 85 | 3,718 |
| Philip Morris International, Inc. | | 74 | 5,335 |
| | | | 9,053 |
|
| TOTAL CONSUMER STAPLES | | | 72,539 |
|
| ENERGY - 2.8% | | | |
| Energy Equipment & Services - 0.1% | | | |
| Baker Hughes, A GE Co. Class A | | 69 | 1,497 |
| Hess Midstream Partners LP | | 20 | 380 |
| Liberty Oilfield Services, Inc. Class A | | 26 | 280 |
| NCS Multistage Holdings, Inc. (a) | | 75 | 162 |
| Oceaneering International, Inc. (a) | | 17 | 220 |
| | | | 2,539 |
| Oil, Gas & Consumable Fuels - 2.7% | | | |
| Black Stone Minerals LP | | 36 | 513 |
| BP PLC sponsored ADR | | 61 | 2,254 |
| Brigham Minerals, Inc. Class A | | 30 | 600 |
| Chevron Corp. | | 75 | 8,829 |
| Devon Energy Corp. | | 112 | 2,463 |
| Diamondback Energy, Inc. | | 21 | 2,060 |
| EOG Resources, Inc. | | 59 | 4,377 |
| Exxon Mobil Corp. | | 77 | 5,273 |
| Magnolia Oil & Gas Corp. Class A (a) | | 100 | 1,021 |
| Noble Energy, Inc. | | 58 | 1,310 |
| Parsley Energy, Inc. Class A | | 62 | 1,110 |
| Phillips 66 Co. | | 39 | 3,847 |
| Pioneer Natural Resources Co. | | 23 | 2,839 |
| PrairieSky Royalty Ltd. | | 41 | 520 |
| Reliance Industries Ltd. sponsored GDR (b) | | 14 | 486 |
| Suncor Energy, Inc. | | 96 | 2,808 |
| Valero Energy Corp. | | 32 | 2,409 |
| Viper Energy Partners LP | | 25 | 724 |
| | | | 43,443 |
|
| TOTAL ENERGY | | | 45,982 |
|
| FINANCIALS - 8.1% | | | |
| Banks - 2.9% | | | |
| Banco Inter SA unit (a) | | 10 | 148 |
| Bank of America Corp. | | 534 | 14,690 |
| Citigroup, Inc. | | 159 | 10,232 |
| EFG Eurobank Ergasias SA (a) | | 502 | 444 |
| First Horizon National Corp. | | 118 | 1,868 |
| Huntington Bancshares, Inc. | | 420 | 5,565 |
| KeyCorp | | 152 | 2,523 |
| M&T Bank Corp. | | 14 | 2,047 |
| Sberbank of Russia sponsored ADR | | 58 | 795 |
| Signature Bank | | 14 | 1,633 |
| SunTrust Banks, Inc. | | 30 | 1,845 |
| Wells Fargo & Co. | | 109 | 5,076 |
| | | | 46,866 |
| Capital Markets - 1.2% | | | |
| Apollo Global Management LLC Class A | | 42 | 1,585 |
| BlackRock, Inc. Class A | | 6 | 2,535 |
| Cboe Global Markets, Inc. | | 34 | 4,051 |
| E*TRADE Financial Corp. | | 69 | 2,880 |
| Monex Group, Inc. | | 243 | 691 |
| Morgan Stanley | | 94 | 3,900 |
| State Street Corp. | | 38 | 1,950 |
| Tradeweb Markets, Inc. Class A | | 8 | 341 |
| Virtu Financial, Inc. Class A | | 99 | 1,861 |
| | | | 19,794 |
| Consumer Finance - 2.0% | | | |
| 360 Finance, Inc. ADR | | 167 | 1,663 |
| Ally Financial, Inc. | | 66 | 2,069 |
| American Express Co. | | 46 | 5,537 |
| Capital One Financial Corp. | | 160 | 13,859 |
| OneMain Holdings, Inc. | | 146 | 5,234 |
| SLM Corp. | | 147 | 1,241 |
| Synchrony Financial | | 80 | 2,564 |
| | | | 32,167 |
| Diversified Financial Services - 0.4% | | | |
| Berkshire Hathaway, Inc. Class B (a) | | 28 | 5,695 |
| Kimbell Royalty Partners LP | | 47 | 720 |
| | | | 6,415 |
| Insurance - 1.6% | | | |
| American International Group, Inc. | | 104 | 5,412 |
| Hartford Financial Services Group, Inc. | | 68 | 3,963 |
| Marsh & McLennan Companies, Inc. | | 51 | 5,094 |
| MetLife, Inc. | | 61 | 2,702 |
| The Travelers Companies, Inc. | | 29 | 4,262 |
| Willis Group Holdings PLC | | 24 | 4,751 |
| | | | 26,184 |
|
| TOTAL FINANCIALS | | | 131,426 |
|
| HEALTH CARE - 9.1% | | | |
| Biotechnology - 1.4% | | | |
| Alexion Pharmaceuticals, Inc. (a) | | 48 | 4,836 |
| Amgen, Inc. | | 33 | 6,884 |
| Blueprint Medicines Corp. (a) | | 7 | 537 |
| Celgene Corp. (a) | | 31 | 3,001 |
| Global Blood Therapeutics, Inc. (a) | | 13 | 598 |
| Sarepta Therapeutics, Inc. (a) | | 7 | 631 |
| Vertex Pharmaceuticals, Inc. (a) | | 39 | 7,021 |
| | | | 23,508 |
| Health Care Equipment & Supplies - 2.9% | | | |
| Abbott Laboratories | | 137 | 11,689 |
| Becton, Dickinson & Co. | | 33 | 8,379 |
| Boston Scientific Corp. (a) | | 248 | 10,597 |
| Danaher Corp. | | 19 | 2,700 |
| Haemonetics Corp. (a) | | 9 | 1,202 |
| Hologic, Inc. (a) | | 44 | 2,172 |
| Intuitive Surgical, Inc. (a) | | 11 | 5,625 |
| Stryker Corp. | | 13 | 2,869 |
| Wright Medical Group NV (a) | | 69 | 1,439 |
| | | | 46,672 |
| Health Care Providers & Services - 2.0% | | | |
| Cigna Corp. | | 9 | 1,386 |
| HCA Holdings, Inc. | | 42 | 5,048 |
| Humana, Inc. | | 21 | 5,947 |
| Molina Healthcare, Inc. (a) | | 21 | 2,736 |
| UnitedHealth Group, Inc. | | 72 | 16,848 |
| | | | 31,965 |
| Health Care Technology - 0.0% | | | |
| Change Healthcare, Inc. | | 54 | 758 |
| Life Sciences Tools & Services - 0.6% | | | |
| Thermo Fisher Scientific, Inc. | | 32 | 9,186 |
| Pharmaceuticals - 2.2% | | | |
| Allergan PLC | | 23 | 3,674 |
| AstraZeneca PLC: | | | |
| (United Kingdom) | | 9 | 804 |
| sponsored ADR | | 173 | 7,790 |
| Bristol-Myers Squibb Co. | | 176 | 8,460 |
| Corteva, Inc. | | 67 | 1,964 |
| Eli Lilly & Co. | | 37 | 4,180 |
| Horizon Pharma PLC (a) | | 38 | 1,050 |
| Roche Holding AG (participation certificate) | | 31 | 8,471 |
| | | | 36,393 |
|
| TOTAL HEALTH CARE | | | 148,482 |
|
| INDUSTRIALS - 6.5% | | | |
| Aerospace & Defense - 0.9% | | | |
| General Dynamics Corp. | | 7 | 1,339 |
| Northrop Grumman Corp. | | 11 | 4,047 |
| Raytheon Co. | | 3 | 556 |
| The Boeing Co. | | 8 | 2,913 |
| United Technologies Corp. | | 40 | 5,210 |
| | | | 14,065 |
| Air Freight & Logistics - 0.5% | | | |
| FedEx Corp. | | 6 | 952 |
| United Parcel Service, Inc. Class B | | 60 | 7,120 |
| | | | 8,072 |
| Airlines - 0.2% | | | |
| American Airlines Group, Inc. | | 138 | 3,631 |
| Commercial Services & Supplies - 0.0% | | | |
| Tel Aviv Stock Exchange Ltd. | | 38 | 112 |
| Construction & Engineering - 0.6% | | | |
| AECOM (a) | | 244 | 8,657 |
| Jacobs Engineering Group, Inc. | | 7 | 622 |
| | | | 9,279 |
| Electrical Equipment - 0.8% | | | |
| Sensata Technologies, Inc. PLC (a) | | 82 | 3,738 |
| Sunrun, Inc. (a) | | 347 | 5,320 |
| Vivint Solar, Inc. (a) | | 467 | 3,764 |
| | | | 12,822 |
| Industrial Conglomerates - 0.9% | | | |
| 3M Co. | | 17 | 2,749 |
| General Electric Co. | | 1,335 | 11,014 |
| Honeywell International, Inc. | | 9 | 1,482 |
| | | | 15,245 |
| Machinery - 0.5% | | | |
| Minebea Mitsumi, Inc. | | 48 | 741 |
| WABCO Holdings, Inc. (a) | | 61 | 8,144 |
| | | | 8,885 |
| Marine - 0.2% | | | |
| A.P. Moller - Maersk A/S Series B | | 3 | 3,195 |
| Professional Services - 0.5% | | | |
| Nielsen Holdings PLC | | 363 | 7,536 |
| Road & Rail - 0.9% | | | |
| CSX Corp. | | 72 | 4,825 |
| Genesee & Wyoming, Inc. Class A (a) | | 21 | 2,328 |
| Norfolk Southern Corp. | | 38 | 6,614 |
| Union Pacific Corp. | | 10 | 1,620 |
| | | | 15,387 |
| Trading Companies & Distributors - 0.5% | | | |
| HD Supply Holdings, Inc. (a) | | 187 | 7,276 |
| Univar, Inc. (a) | | 35 | 677 |
| | | | 7,953 |
|
| TOTAL INDUSTRIALS | | | 106,182 |
|
| INFORMATION TECHNOLOGY - 13.2% | | | |
| Communications Equipment - 0.3% | | | |
| Cisco Systems, Inc. | | 71 | 3,324 |
| Telefonaktiebolaget LM Ericsson (B Shares) sponsored ADR | | 117 | 917 |
| | | | 4,241 |
| Electronic Equipment & Components - 0.1% | | | |
| Flextronics International Ltd. (a) | | 93 | 896 |
| Jabil, Inc. | | 14 | 403 |
| | | | 1,299 |
| Internet Software & Services - 0.1% | | | |
| Qudian, Inc. ADR (a) | | 81 | 647 |
| Wise Talent Information Technology Co. Ltd. (a) | | 325 | 764 |
| | | | 1,411 |
| IT Services - 1.6% | | | |
| Cognizant Technology Solutions Corp. Class A | | 28 | 1,719 |
| DXC Technology Co. | | 18 | 598 |
| Elastic NV | | 26 | 2,285 |
| Fidelity National Information Services, Inc. | | 64 | 8,718 |
| FleetCor Technologies, Inc. (a) | | 2 | 597 |
| Global Payments, Inc. | | 10 | 1,660 |
| GoDaddy, Inc. (a) | | 4 | 253 |
| GreenSky, Inc. Class A (a) | | 116 | 789 |
| MasterCard, Inc. Class A | | 2 | 563 |
| PagSeguro Digital Ltd. (a) | | 27 | 1,349 |
| PayPal Holdings, Inc. (a) | | 56 | 6,107 |
| Verra Mobility Corp. (a) | | 52 | 724 |
| Visa, Inc. Class A | | 4 | 723 |
| | | | 26,085 |
| Semiconductors & Semiconductor Equipment - 2.9% | | | |
| Advanced Micro Devices, Inc. (a) | | 102 | 3,208 |
| ams AG (a) | | 6 | 240 |
| Analog Devices, Inc. | | 11 | 1,208 |
| Applied Materials, Inc. | | 54 | 2,593 |
| Broadcom, Inc. | | 14 | 3,957 |
| Lam Research Corp. | | 29 | 6,105 |
| Microchip Technology, Inc. | | 8 | 691 |
| Micron Technology, Inc. (a) | | 71 | 3,214 |
| NVIDIA Corp. | | 33 | 5,528 |
| NXP Semiconductors NV | | 80 | 8,171 |
| ON Semiconductor Corp. (a) | | 332 | 5,910 |
| Qualcomm, Inc. | | 57 | 4,433 |
| Sanken Electric Co. Ltd. | | 32 | 558 |
| Xilinx, Inc. | | 6 | 624 |
| | | | 46,440 |
| Software - 5.6% | | | |
| Adobe, Inc. (a) | | 24 | 6,828 |
| Autodesk, Inc. (a) | | 34 | 4,856 |
| Cardlytics, Inc. (a) | | 19 | 714 |
| Citrix Systems, Inc. | | 18 | 1,674 |
| Everbridge, Inc. (a) | | 3 | 259 |
| HubSpot, Inc. (a) | | 3 | 599 |
| Kingdee International Software Group Co. Ltd. | | 136 | 123 |
| LivePerson, Inc. (a) | | 75 | 2,981 |
| Microsoft Corp. | | 403 | 55,548 |
| New Relic, Inc. (a) | | 4 | 229 |
| Oracle Corp. | | 73 | 3,800 |
| Parametric Technology Corp. (a) | | 20 | 1,309 |
| Pluralsight, Inc. (a) | | 15 | 242 |
| RealPage, Inc. (a) | | 7 | 446 |
| Salesforce.com, Inc. (a) | | 50 | 7,804 |
| SS&C Technologies Holdings, Inc. | | 10 | 466 |
| SurveyMonkey | | 68 | 1,138 |
| Symantec Corp. | | 34 | 791 |
| Talend SA ADR (a) | | 15 | 610 |
| Varonis Systems, Inc. (a) | | 20 | 1,366 |
| | | | 91,783 |
| Technology Hardware, Storage & Peripherals - 2.6% | | | |
| Apple, Inc. | | 192 | 40,078 |
| Western Digital Corp. | | 54 | 3,093 |
| | | | 43,171 |
|
| TOTAL INFORMATION TECHNOLOGY | | | 214,430 |
|
| MATERIALS - 1.7% | | | |
| Chemicals - 1.3% | | | |
| Air Products & Chemicals, Inc. | | 11 | 2,485 |
| Amyris, Inc. (a) | | 85 | 321 |
| CF Industries Holdings, Inc. | | 4 | 193 |
| DowDuPont, Inc. | | 51 | 3,464 |
| Ecolab, Inc. | | 9 | 1,857 |
| International Flavors & Fragrances, Inc. | | 10 | 1,098 |
| LG Chemical Ltd. | | 4 | 1,092 |
| Linde PLC | | 28 | 5,289 |
| Olin Corp. | | 87 | 1,477 |
| Sherwin-Williams Co. | | 2 | 1,054 |
| The Chemours Co. LLC | | 122 | 1,729 |
| Tronox Holdings PLC | | 24 | 178 |
| W.R. Grace & Co. | | 6 | 406 |
| | | | 20,643 |
| Construction Materials - 0.1% | | | |
| Martin Marietta Materials, Inc. | | 4 | 1,015 |
| Vulcan Materials Co. | | 8 | 1,130 |
| | | | 2,145 |
| Containers & Packaging - 0.2% | | | |
| Aptargroup, Inc. | | 1 | 122 |
| Avery Dennison Corp. | | 7 | 809 |
| Ball Corp. | | 15 | 1,206 |
| Crown Holdings, Inc. (a) | | 13 | 856 |
| | | | 2,993 |
| Metals & Mining - 0.1% | | | |
| Newmont Goldcorp Corp. | | 37 | 1,476 |
|
| TOTAL MATERIALS | | | 27,257 |
|
| REAL ESTATE - 2.1% | | | |
| Equity Real Estate Investment Trusts (REITs) - 2.0% | | | |
| Alexandria Real Estate Equities, Inc. | | 18 | 2,697 |
| American Homes 4 Rent Class A | | 20 | 512 |
| American Tower Corp. | | 39 | 8,977 |
| Corporate Office Properties Trust (SBI) | | 63 | 1,820 |
| Crown Castle International Corp. | | 12 | 1,742 |
| Equinix, Inc. | | 5 | 2,781 |
| Equity Lifestyle Properties, Inc. | | 12 | 1,617 |
| Front Yard Residential Corp. Class B | | 109 | 1,209 |
| Omega Healthcare Investors, Inc. | | 17 | 692 |
| Outfront Media, Inc. | | 6 | 165 |
| Potlatch Corp. | | 26 | 1,000 |
| Prologis, Inc. | | 48 | 4,014 |
| Simon Property Group, Inc. | | 3 | 447 |
| Store Capital Corp. | | 15 | 566 |
| VICI Properties, Inc. | | 39 | 864 |
| Welltower, Inc. | | 40 | 3,582 |
| | | | 32,685 |
| Real Estate Management & Development - 0.1% | | | |
| Cushman & Wakefield PLC | | 75 | 1,263 |
|
| TOTAL REAL ESTATE | | | 33,948 |
|
| UTILITIES - 2.2% | | | |
| Electric Utilities - 1.4% | | | |
| Duke Energy Corp. | | 33 | 3,060 |
| Edison International | | 36 | 2,602 |
| Entergy Corp. | | 12 | 1,354 |
| Evergy, Inc. | | 13 | 845 |
| Exelon Corp. | | 97 | 4,584 |
| FirstEnergy Corp. | | 65 | 2,990 |
| NextEra Energy, Inc. | | 23 | 5,039 |
| PPL Corp. | | 67 | 1,980 |
| Southern Co. | | 18 | 1,049 |
| | | | 23,503 |
| Independent Power and Renewable Electricity Producers - 0.1% | | | |
| NRG Energy, Inc. | | 21 | 764 |
| The AES Corp. | | 32 | 491 |
| | | | 1,255 |
| Multi-Utilities - 0.7% | | | |
| Dominion Energy, Inc. | | 61 | 4,735 |
| Public Service Enterprise Group, Inc. | | 45 | 2,721 |
| Sempra Energy | | 21 | 2,974 |
| WEC Energy Group, Inc. | | 13 | 1,245 |
| | | | 11,675 |
|
| TOTAL UTILITIES | | | 36,433 |
|
| TOTAL COMMON STOCKS | | | |
| (Cost $1,025,334) | | | 1,036,079 |
|
| Fixed-Income Funds - 33.6% | | | |
| Fidelity High Income Central Fund (c) | | 400 | 44,546 |
| Fidelity Investment Grade Bond Central Fund (c) | | 4,447 | 503,800 |
| TOTAL FIXED-INCOME FUNDS | | | |
| (Cost $533,391) | | | 548,346 |
|
| Money Market Funds - 1.3% | | | |
| Fidelity Cash Central Fund 2.13% (d) | | | |
| (Cost $20,620) | | 20,616 | 20,620 |
| TOTAL INVESTMENT IN SECURITIES - 98.5% | | | |
| (Cost $1,579,345) | | | 1,605,045 |
| NET OTHER ASSETS (LIABILITIES) - 1.5% | | | 23,970 |
| NET ASSETS - 100% | | | $1,629,015 |
Legend
(a) Non-income producing
(b) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $486 or 0.0% of net assets.
(c) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. A complete unaudited schedule of portfolio holdings for each Fidelity Central Fund is filed with the SEC for the first and third quarters of each fiscal year on Form N-PORT and is available upon request or at the SEC's website at www.sec.gov. An unaudited holdings listing for the Fund, which presents direct holdings as well as the pro-rata share of securities and other investments held indirectly through its investment in underlying non-money market Fidelity Central Funds, is available at fidelity.com and/or institutional.fidelity.com, as applicable. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(d) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
| Fund | Income earned |
| Fidelity Cash Central Fund | $485 |
| Fidelity High Income Central Fund | 555 |
| Fidelity Investment Grade Bond Central Fund | 3,132 |
| Total | $4,172 |
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.
Fiscal year to date information regarding the Fund’s investments in non-Money Market Central Funds, including the ownership percentage, is presented below.
| Fund | Value, beginning of period | Purchases | Sales Proceeds | Realized Gain/Loss | Change in Unrealized appreciation (depreciation) | Value, end of period | % ownership, end of period |
| Fidelity High Income Central Fund | $-- | $44,225 | $-- | $-- | $321 | $44,546 | 0.0% |
| Fidelity Investment Grade Bond Central Fund | -- | 489,166 | -- | -- | 14,634 | 503,800 | 0.0% |
| Total | $-- | $533,391 | $-- | $-- | $14,955 | $548,346 | |
Investment Valuation
The following is a summary of the inputs used, as of August 31, 2019, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| | Valuation Inputs at Reporting Date: |
| Description | Total | Level 1 | Level 2 | Level 3 |
| Investments in Securities: | | | | |
| Equities: | | | | |
| Communication Services | $105,999 | $101,829 | $4,170 | $-- |
| Consumer Discretionary | 113,401 | 103,193 | 10,208 | -- |
| Consumer Staples | 72,539 | 69,506 | 3,033 | -- |
| Energy | 45,982 | 45,982 | -- | -- |
| Financials | 131,426 | 131,426 | -- | -- |
| Health Care | 148,482 | 139,207 | 9,275 | -- |
| Industrials | 106,182 | 102,987 | 3,195 | -- |
| Information Technology | 214,430 | 213,543 | 887 | -- |
| Materials | 27,257 | 27,257 | -- | -- |
| Real Estate | 33,948 | 33,948 | -- | -- |
| Utilities | 36,433 | 36,433 | -- | -- |
| Fixed-Income Funds | 548,346 | 548,346 | -- | -- |
| Money Market Funds | 20,620 | 20,620 | -- | -- |
| Total Investments in Securities: | $1,605,045 | $1,574,277 | $30,768 | $-- |
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 | 12.6% |
| AAA,AA,A | 3.5% |
| BBB | 8.7% |
| BB | 2.6% |
| B | 0.8% |
| CCC,CC,C | 0.6% |
| D | 0.1% |
| Not Rated | 0.4% |
| Equities | 63.7% |
| Short-Term Investments and Net Other Assets | 7.0% |
| | 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.
The information in the above tables is based on the combined investments of the fund and its pro-rata share of the investments of Fidelity's Fixed-Income Central Funds
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
| | | August 31, 2019 |
| Assets | | |
Investment in securities, at value — See accompanying schedule:
Unaffiliated issuers (cost $1,025,334) | $1,036,079 | |
| Fidelity Central Funds (cost $554,011) | 568,966 | |
| Total Investment in Securities (cost $1,579,345) | | $1,605,045 |
| Cash | | 20,769 |
| Foreign currency held at value (cost $279) | | 279 |
| Receivable for investments sold | | 12,749 |
| Dividends receivable | | 1,966 |
| Distributions receivable from Fidelity Central Funds | | 42 |
| Total assets | | 1,640,850 |
| Liabilities | | |
| Payable for investments purchased | $11,405 | |
| Accrued management fee | 430 | |
| Total liabilities | | 11,835 |
| Net Assets | | $1,629,015 |
| Net Assets consist of: | | |
| Paid in capital | | $1,594,371 |
| Total distributable earnings (loss) | | 34,644 |
| Net Assets, for 159,199 shares outstanding | | $1,629,015 |
| Net Asset Value, offering price and redemption price per share ($1,629,015 ÷ 159,199 shares) | | $10.23 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| | | For the period
June 14, 2019 (commencement of operations) to
August 31, 2019 |
| Investment Income | | |
| Dividends | | $3,562 |
| Income from Fidelity Central Funds | | 4,172 |
| Total income | | 7,734 |
| Expenses | | |
| Management fee | $1,065 | |
| Independent trustees' fees and expenses | 1 | |
| Total expenses | | 1,066 |
| Net investment income (loss) | | 6,668 |
| Realized and Unrealized Gain (Loss) | | |
| Net realized gain (loss) on: | | |
| Investment securities: | | |
| Unaffiliated issuers | 3,049 | |
| Foreign currency transactions | (24) | |
| Total net realized gain (loss) | | 3,025 |
| Change in net unrealized appreciation (depreciation) on: | | |
| Investment securities: | | |
| Unaffiliated issuers | 10,745 | |
| Fidelity Central Funds | 14,955 | |
| Total change in net unrealized appreciation (depreciation) | | 25,700 |
| Net gain (loss) | | 28,725 |
| Net increase (decrease) in net assets resulting from operations | | $35,393 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| | For the period
June 14, 2019 (commencement of operations) to
August 31, 2019 |
| Increase (Decrease) in Net Assets | |
| Operations | |
| Net investment income (loss) | $6,668 |
| Net realized gain (loss) | 3,025 |
| Change in net unrealized appreciation (depreciation) | 25,700 |
| Net increase (decrease) in net assets resulting from operations | 35,393 |
| Distributions to shareholders | (750) |
| Total distributions | (750) |
| Share transactions | |
| Proceeds from sales of shares | 1,593,622 |
| Reinvestment of distributions | 750 |
| Net increase (decrease) in net assets resulting from share transactions | 1,594,372 |
| Total increase (decrease) in net assets | 1,629,015 |
| Net Assets | |
| Beginning of period | – |
| End of period | $1,629,015 |
| Other Information | |
| Shares | |
| Sold | 159,126 |
| Issued in reinvestment of distributions | 73 |
| Net increase (decrease) | 159,199 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Balanced K6 Fund
| | |
| Year ended August 31, | 2019 A |
| Selected Per–Share Data | |
| Net asset value, beginning of period | $10.00 |
| Income from Investment Operations | |
| Net investment income (loss)B | .04 |
| Net realized and unrealized gain (loss) | .20 |
| Total from investment operations | .24 |
| Distributions from net investment income | (.01) |
| Total distributions | (.01) |
| Net asset value, end of period | $10.23 |
| Total ReturnC | 2.35% |
| Ratios to Average Net AssetsD,E | |
| Expenses before reductions | .32%F |
| Expenses net of fee waivers, if any | .32%F |
| Expenses net of all reductions | .32%F |
| Net investment income (loss) | 2.00%F |
| Supplemental Data | |
| Net assets, end of period (000 omitted) | $1,629 |
| Portfolio turnover rateG | 6%H |
A For the period June 14, 2019 (commencement of operations) to August 31, 2019.
B Calculated based on average shares outstanding during the period.
C Total returns for periods of less than one year are not annualized.
D Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
E Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
F Annualized
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Amount not annualized.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended August 31, 2019
1. Organization.
Fidelity Balanced K6 Fund (the Fund) is a fund of Fidelity Puritan Trust (the Trust) and is authorized to issue an unlimited number of shares. Share transactions on the Statement of Changes in Net Assets may contain exchanges between affiliated funds. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. Shares generally are available only to employer-sponsored retirement plans that are recordkept by Fidelity, or to certain employer-sponsored retirement plans that are not recordkept by Fidelity.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
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 Fund. These strategies are consistent with the investment objectives of the 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 Fund. The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date ranged from less than .005% to .01%. The following summarizes the Fund's investment in each non-money market Fidelity Central Fund.
| Fidelity Central Fund | Investment Manager | Investment Objective | Investment Practices | Expense Ratio(a) |
| Fidelity High Income Central Fund | FMR Co., Inc. (FMRC) | Seeks a high level of income and may also seek capital appreciation by investing primarily in debt securities, preferred stocks, and convertible securities, with an emphasis on lower-quality debt securities. | Loans & Direct Debt Instruments
Restricted Securities | Less than .005% |
| Fidelity Investment Grade Bond Central Fund | FIMM | Seeks a high level of income by normally investing in investment–grade debt securities. | Delayed Delivery & When Issued Securities
Futures
Repurchase Agreements
Restricted Securities
Swaps | 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.
An unaudited holdings listing for the Fund, which presents direct holdings as well as the pro-rata share of any securities and other investments held indirectly through its investment in underlying non-money market Fidelity Central Funds, is available at fidelity.com. A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds which contain the significant accounting policies (including investment valuation policies) of those funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investments Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of August 31, 2019 is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. As of August 31, 2019, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, partnerships 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 | $57,513 |
| Gross unrealized depreciation | (31,821) |
| Net unrealized appreciation (depreciation) | $25,692 |
| Tax Cost | $1,579,353 |
The tax-based components of distributable earnings as of period end were as follows:
| Undistributed ordinary income | $8,952 |
| Net unrealized appreciation (depreciation) on securities and other investments | $25,692 |
The tax character of distributions paid was as follows:
| | August 31, 2019(a) |
| Ordinary Income | $750 |
(a) For the period June 14, 2019 (commencement of operations) to August 31, 2019.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
4. Purchases and Sales of Investments.
Purchases and sales of securities (including the Fixed-Income Central Funds), other than short-term securities, aggregated $1,642,240 and $86,531, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee that is based on an annual rate of .32% of average net assets. Under the management contract, the investment adviser or an affiliate pays all other expenses of the Fund, excluding fees and expenses of the independent Trustees, and certain miscellaneous expenses such as proxy and shareholder meeting expenses.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $8 for the period.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
6. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
At the end of the period, the investment adviser or its affiliates were the owners of record of approximately 94% of the total outstanding shares of the Fund.
Unaffiliated Exchanges In-Kind. Effective after the close of business on August 31, 2019, the Fund received investments and cash valued at $200,487,656 in exchange for 19,540,707 shares of the Fund.
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Fidelity Puritan Trust and Shareholders of Fidelity Balanced K6 Fund:
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Fidelity Balanced K6 Fund (one of the funds constituting Fidelity Puritan Trust, referred to hereafter as the “Fund”) as of August 31, 2019, and the related statements of operations and changes in net assets, including the related notes, and the financial highlights for the period June 14, 2019 (commencement of operations) through August 31, 2019 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of August 31, 2019, and the results of its operations, changes in its net assets, and the financial highlights for the period June 14, 2019 (commencement of operations) through August 31, 2019 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audit of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of August 31, 2019 by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audit provides a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Boston, Massachusetts
October 17, 2019
We have served as the auditor of one or more investment companies in the Fidelity group of funds since 1932.
Trustees and Officers
The Trustees, Members of the Advisory Board (if any), and officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Except for Jonathan Chiel, each of the Trustees oversees 298 funds. Mr. Chiel oversees 170 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the fund is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund’s Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-835-5092.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Board Structure and Oversight Function. James C. Curvey is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Ned C. Lautenbach serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and other equity funds. The asset allocation funds may invest in Fidelity® funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Jonathan Chiel (1957)
Year of Election or Appointment: 2016
Trustee
Mr. Chiel also serves as Trustee of other Fidelity® funds. Mr. Chiel is Executive Vice President and General Counsel for FMR LLC (diversified financial services company, 2012-present). Previously, Mr. Chiel served as general counsel (2004-2012) and senior vice president and deputy general counsel (2000-2004) for John Hancock Financial Services; a partner with Choate, Hall & Stewart (1996-2000) (law firm); and an Assistant United States Attorney for the United States Attorney’s Office of the District of Massachusetts (1986-95), including Chief of the Criminal Division (1993-1995). Mr. Chiel is a director on the boards of the Boston Bar Foundation and the Maimonides School.
James C. Curvey (1935)
Year of Election or Appointment: 2007
Trustee
Chairman of the Board of Trustees
Mr. Curvey also serves as Trustee of other Fidelity® funds. Mr. Curvey is Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey is an Overseer Emeritus for the Boston Symphony Orchestra, a Director of Artis-Naples, and a Trustee of Brewster Academy in Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-2018), Director of Fidelity Investments Money Management, Inc. (investment adviser firm, 2009-2014) and a Director of FMR and FMR Co., Inc. (investment adviser firms, 2007-2014).
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), as a member of the Independent Directors Council (IDC) Governing Council (2010-2015), and as a member of the Board of Directors for The Brookville Center for Children’s Services, Inc. (2009-2017). Mr. Dirks is a member of the Finance Committee (2016-present) and Board of Directors (2017-present) and is Treasurer (2018-present) of the Asolo Repertory Theatre.
Donald F. Donahue (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Donahue also serves as a Trustee of other Fidelity® funds. Mr. Donahue is President and Chief Executive Officer of Miranda Partners, LLC (risk consulting for the financial services industry, 2012-present). Previously, Mr. Donahue served as a Member of the Advisory Board of certain Fidelity® funds (2015-2018) and Chief Executive Officer (2006-2012), Chief Operating Officer (2003-2006), and Managing Director, Customer Marketing and Development (1999-2003) of The Depository Trust & Clearing Corporation (financial markets infrastructure). Mr. Donahue serves as a Member (2007-present) and Co-Chairman (2016-present) of the Board of Directors of United Way of New York, Member of the Board of Directors of NYC Leadership Academy (2012-present) and Member of the Board of Advisors of Ripple Labs, Inc. (financial services, 2015-present). He also served as Chairman (2010-2012) and Member of the Board of Directors (2012-2013) of Omgeo, LLC (financial services), Treasurer of United Way of New York (2012-2016), and Member of the Board of Directors of XBRL US (financial services non-profit, 2009-2012) and the International Securities Services Association (2009-2012).
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2014-2017) and a member (2010-2017) of the Board of Directors of Dave & Buster’s Entertainment, Inc. (restaurant and entertainment complexes), as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association, and as a member of the Board of Directors for The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), Earth Fare, Inc. (retail grocery, 2010-2014), and The Western Union Company (global money transfer, 2006-2011).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as Chair (2018-present) and Member (2013-present) of the Board of Governors, State University System of Florida and is a member of the Council on Foreign Relations (1994-present). He is also a member and has most recently served as Chairman of the Board of Directors of Artis-Naples (2012-present). Previously, Mr. Lautenbach served as a member and then Lead Director of the Board of Directors of Eaton Corporation (diversified industrial, 1997-2016). He was also a Partner and Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007). In addition, Mr. Lautenbach also had a 30-year career with IBM (technology company) during which time he served as Senior Vice President and a member of the Corporate Executive Committee (1968-1998).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-2018).
Cornelia M. Small (1944)
Year of Election or Appointment: 2005
Trustee
Ms. Small also serves as Trustee of other Fidelity® funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.
Garnett A. Smith (1947)
Year of Election or Appointment: 2018
Trustee
Mr. Smith also serves as Trustee of other Fidelity® funds. Prior to Mr. Smith's retirement, he served as Chairman and Chief Executive Officer of Inbrand Corp. (manufacturer of personal absorbent products, 1990-1997). He also served as President (1986-1990) of Inbrand Corp. Prior to his employment with Inbrand Corp., he was employed by a retail fabric chain and North Carolina National Bank. In addition, Mr. Smith served as a Member of the Advisory Board of certain Fidelity® funds (2012-2013) and as a board member of the Jackson Hole Land Trust (2009-2012).
David M. Thomas (1949)
Year of Election or Appointment: 2008
Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present) and as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), a Director of Fortune Brands, Inc. (consumer products, 2000-2011), and a member of the Board of Trustees of the University of Florida (2013-2018).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Advisory Board Members and Officers:
Correspondence intended for a Member of the Advisory Board (if any) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235. Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Vicki L. Fuller (1957)
Year of Election or Appointment: 2018
Member of the Advisory Board
Ms. Fuller also serves as Member of the Advisory Board of other Fidelity® funds. Ms. Fuller serves as a member of the Board of Directors, Audit Committee, and Nominating and Governance Committee of The Williams Companies, Inc. (natural gas infrastructure, 2018-present). Previously, Ms. Fuller served as the Chief Investment Officer of the New York State Common Retirement Fund (2012-2018) and held a variety of positions at AllianceBernstein L.P. (global asset management, 1985-2012), including Managing Director (2006-2012) and Senior Vice President and Senior Portfolio Manager (2001-2006).
Peter S. Lynch (1944)
Year of Election or Appointment: 2003
Member of the Advisory Board
Mr. Lynch also serves as Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of FMR (investment adviser firm) and FMR Co., Inc. (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).
Michael E. Wiley (1950)
Year of Election or Appointment: 2018
Member of the Advisory Board
Mr. Wiley also serves as Trustee or Member of the Advisory Board of other Fidelity® funds. Mr. Wiley serves as a Director of High Point Resources (exploration and production, 2005-present). Previously, Mr. Wiley served as a Director of Andeavor Corporation (independent oil refiner and marketer, 2005-2018), a Director of Andeavor Logistics LP (natural resources logistics, 2015-2018), a Director of Post Oak Bank (privately-held bank, 2004-2018), a Director of Asia Pacific Exploration Consolidated (international oil and gas exploration and production, 2008-2013), a member of the Board of Trustees of the University of Tulsa (2000-2006; 2007-2010), a Senior Energy Advisor of Katzenbach Partners, LLC (consulting, 2006-2007), an Advisory Director of Riverstone Holdings (private investment), a Director of Spinnaker Exploration Company (exploration and production, 2001-2005) and Chairman, President, and CEO of Baker Hughes, Inc. (oilfield services, 2000-2004).
Elizabeth Paige Baumann (1968)
Year of Election or Appointment: 2017
Anti-Money Laundering (AML) Officer
Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer (2012-present) and Senior Vice President (2014-present) of FMR LLC (diversified financial services company) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as AML Officer of the funds (2012-2016), and Vice President (2007-2014) and Deputy Anti-Money Laundering Officer (2007-2012) of FMR LLC.
Craig S. Brown (1977)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Brown also serves as Assistant Treasurer of other funds. Mr. Brown is an employee of Fidelity Investments (2013-present).
John J. Burke III (1964)
Year of Election or Appointment: 2018
Chief Financial Officer
Mr. Burke also serves as Chief Financial Officer of other funds. Mr. Burke serves as Head of Investment Operations for Fidelity Fund and Investment Operations (2018-present) and is an employee of Fidelity Investments (1998-present). Previously Mr. Burke served as head of Asset Management Investment Operations (2012-2018).
William C. Coffey (1969)
Year of Election or Appointment: 2019
Assistant Secretary
Mr. Coffey also serves as Assistant Secretary of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Secretary and CLO of certain funds (2018-2019); CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2018-2019); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2018-2019); CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2018-2019); and Assistant Secretary of certain funds (2009-2018).
Timothy M. Cohen (1969)
Year of Election or Appointment: 2018
Vice President
Mr. Cohen also serves as Vice President of other funds. Mr. Cohen serves as Executive Vice President of Fidelity SelectCo, LLC (2019-present), Co-Head of Equity (2018-present), a Director of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present), and is an employee of Fidelity Investments. Previously, Mr. Cohen served as Head of Global Equity Research (2016-2018), Chief Investment Officer - Equity and a Director of Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2013-2015) and as a Director of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2017).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds. Mr. Davis serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present), and is an employee of Fidelity Investments (2008-present). Previously, Mr. Deberghes served as President and Treasurer of certain Fidelity® funds (2013-2018). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). Previously, Mr. Deberghes served in other fund officer roles.
Laura M. Del Prato (1964)
Year of Election or Appointment: 2018
Assistant Treasurer
Ms. Del Prato also serves as an officer of other funds. Ms. Del Prato is an employee of Fidelity Investments (2017-present). Prior to joining Fidelity Investments, Ms. Del Prato served as a Managing Director and Treasurer of the JPMorgan Mutual Funds (2014-2017). Prior to JPMorgan, Ms. Del Prato served as a partner at Cohen Fund Audit Services (accounting firm, 2012-2013) and KPMG LLP (accounting firm, 2004-2012).
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2005-present). Previously, Mr. Hogan served as Assistant Treasurer of certain Fidelity® funds (2016-2018).
Pamela R. Holding (1964)
Year of Election or Appointment: 2018
Vice President
Ms. Holding also serves as Vice President of other funds. Ms. Holding serves as Executive Vice President of Fidelity SelectCo, LLC (2019-present), Co-Head of Equity (2018-present) and is an employee of Fidelity Investments (2013-present). Previously, Ms. Holding served as Chief Investment Officer of Fidelity Institutional Asset Management (2013-2018).
Cynthia Lo Bessette (1969)
Year of Election or Appointment: 2019
Secretary and Chief Legal Officer (CLO)
Ms. Lo Bessette also serves as Secretary and CLO of other funds. She is a Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2019-present), and is an employee of Fidelity Investments. Previously, Ms. Lo Bessette served as Executive Vice President, General Counsel (2016-2019) and Senior Vice President, Deputy General Counsel (2015-2016) of OppenheimerFunds (investment management company) and Deputy Chief Legal Officer (2013-2015) of Jennison Associates LLC (investment adviser firm).
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight, serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. Ms. Smith serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), is an employee of Fidelity Investments (2009-present), and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Assistant Treasurer (2013-2018) and Deputy Treasurer (2013-2016) of certain Fidelity® funds.
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
Jim Wegmann (1979)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Wegmann also serves as Assistant Treasurer of other funds. Mr. Wegmann is an employee of Fidelity Investments (2011-present).
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The actual expense Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (June 14, 2019 to August 31, 2019). The hypothetical expense Example is based on an investment of $1,000 invested for the one-half year period (March 1, 2019 to August 31, 2019).
Actual Expenses
The first line of the accompanying table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
| | Annualized Expense Ratio-A | Beginning
Account Value | Ending
Account Value
August 31, 2019 | Expenses Paid
During Period
|
| Actual | .32% | $1,000.00 | $1,023.50 | $.70-B |
| Hypothetical-C | | $1,000.00 | $1,023.59 | $1.63-D |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Actual expenses are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 79/365 (to reflect the period June 14, 2019 to August 31, 2019). The fees and expenses of the underlying Fidelity Central Funds in which the Fund invests are not included in each Class' annualized expense ratio. In addition to the expenses noted above, the Fund also indirectly bears its proportional share of the expenses of the underlying Fidelity Central Funds. Annualized expenses of the underlying non-money market Fidelity Central Funds as of their most recent fiscal half year were less than .005%.
C 5% return per year before expenses
D Hypothetical expenses are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Distributions (Unaudited)
A total of 8.78% of the dividends distributed during the fiscal year was derived from interest on U.S. Government securities which is generally exempt from state income tax.
The fund designates 100% of the dividend distributed during the fiscal year as qualifying for the dividends–received deduction for corporate shareholders.
The fund designates 100% of the dividend distributed during the fiscal year as amounts which may be taken into account as a dividend for the purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code.
The fund will notify shareholders in January 2020 of amounts for use in preparing 2019 income tax returns.
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Balanced K6 Fund
On March 6, 2019, the Board of Trustees, including the Independent Trustees (together, the Board), voted to approve the management contract with Fidelity Management & Research Company (FMR) and the sub-advisory agreements with affiliates of FMR (together, the Advisory Contracts) for the fund. FMR and the sub-advisers are collectively referred to herein as the Investment Advisers. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, considered a broad range of information.
Nature, Extent, and Quality of Services Provided. The Board considered Fidelity's staffing as it relates to the fund, including the backgrounds of investment personnel of Fidelity, and also considered the fund's investment objective, strategies, and related investment philosophy. The Board considered the structure of the investment personnel compensation program and whether this structure provides appropriate incentives to act in the best interests of the fund.
Resources Dedicated to Investment Management and Support Services. The Board and the Fund Oversight and Research Committees reviewed the general qualifications and capabilities of Fidelity's investment staff, including its size, education, experience, and resources, as well as Fidelity's approach to recruiting,training, managing, and compensating investment personnel. The Board noted that Fidelity has continued to increase the resources devoted to non-U.S. offices, including expansion of Fidelity's global investment organization. The Board also noted that Fidelity's analysts have extensive resources, tools and capabilities that allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and guarantors. Further, the Board considered that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered Fidelity's trading, risk management, compliance, and technology and operations capabilities and resources, which are integral parts of the investment management process.
Shareholder and Administrative Services. The Board considered the nature, extent, quality, and cost of advisory, administrative, and shareholder services to be performed by the Investment Advisers and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for the fund. The Board also considered the nature and extent of the supervision of third party service providers, principally custodians, subcustodians, and pricing vendors.
The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value and convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through telephone representatives and over the Internet, investor education materials and asset allocation tools, and the expanded availability of Fidelity Investor Centers.
Investment Performance. The fund is a new fund and therefore had no historical performance for the Board to review at the time it approved the fund's Advisory Contracts. The Board considered the Investment Advisers' strength in fundamental, research-driven security selection, which the Board is familiar with through its supervision of other Fidelity funds.
Based on its review, the Board concluded that the nature, extent, and quality of services to be provided to the fund under the Advisory Contracts should benefit the shareholders of the fund.
Competitiveness of Management Fee and Total Expense Ratio ..In reviewing the Advisory Contracts, the Board considered the fund's proposed management fee rate out of which FMR will pay all operating expenses, with certain limited exceptions, and the projected total expense ratio of the fund. The Board noted that the fund's proposed management fee rate is lower than the median fee rate of funds with similar Lipper investment objective categories and comparable investment mandates, regardless of whether their management fee structures are comparable. The Board also considered that the projected total expense ratio of the fund is below the median of those funds and classes used by the Board for management fee comparisons that have a similar sales load structure.
Based on its review, the Board concluded that the fund's management fee and projected total expense ratio were reasonable in light of the services that the fund and its shareholders will receive and the other factors considered.
Costs of the Services and Profitability. The fund is a new fund and therefore no revenue, cost, or profitability data was available for the Board to review in respect of the fund at the time it approved the Advisory Contracts. In connection with its future renewal of the fund's Advisory Contracts, the Board will consider the revenues earned and the expenses incurred by Fidelity in conducting the business of developing, marketing, distributing, managing, administering and servicing the fund and servicing the fund's shareholders.
Economies of Scale. The Board will consider economies of scale when there is operating experience to permit assessment thereof. It noted that, notwithstanding the entrepreneurial risk associated with a new fund, the management fee was at a level normally associated, by comparison with competitors, with very high fund net assets, and Fidelity asserted to the Board that the level of the fee anticipated economies of scale at lower asset levels even before, if ever, economies of scale are achieved. The Board also noted that the fund and its shareholders would have access to the very considerable number and variety of services available through Fidelity and its affiliates.
BAL-K6-ANN-1019
1.9893903.100
Fidelity® Puritan® K6 Fund
Annual Report August 31, 2019 |
|
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of a fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a financial advisor, broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from a fund electronically, by contacting your financial intermediary. For Fidelity customers, visit Fidelity's web site or call Fidelity using the contact information listed below.
You may elect to receive all future reports in paper free of charge. If you wish to continue receiving paper copies of your shareholder reports, you may contact your financial intermediary or, if you are a Fidelity customer, visit Fidelity’s website, or call Fidelity at the applicable toll-free number listed below. Your election to receive reports in paper will apply to all funds held with the fund complex/your financial intermediary.
| Account Type | Website | Phone Number |
| Brokerage, Mutual Fund, or Annuity Contracts: | fidelity.com/mailpreferences | 1-800-343-3548 |
| Employer Provided Retirement Accounts: | netbenefits.fidelity.com/preferences (choose 'no' under Required Disclosures to continue to print) | 1-800-343-0860 |
| Advisor Sold Accounts Serviced Through Your Financial Intermediary: | Contact Your Financial Intermediary | Your Financial Intermediary's phone number |
| Advisor Sold Accounts Serviced by Fidelity: | institutional.fidelity.com | 1-877-208-0098 |
Contents
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-800-835-5092 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2019 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT. Forms N-PORT are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-PORT may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Investment Summary (Unaudited)
The information in the following tables is based on the combined investments of the Fund and its pro-rata share of the investments of Fidelity's Fixed-Income Central Funds.
Top Five Stocks as of August 31, 2019
| | % of fund's net assets |
| Microsoft Corp. | 3.9 |
| Amazon.com, Inc. | 2.8 |
| Alphabet, Inc. Class C | 2.8 |
| Apple, Inc. | 1.8 |
| Visa, Inc. Class A | 1.6 |
| | 12.9 |
Top Five Bond Issuers as of August 31, 2019
| (with maturities greater than one year) | % of fund's net assets |
| U.S. Treasury Obligations | 5.6 |
| Fannie Mae | 2.1 |
| Freddie Mac | 1.7 |
| Ginnie Mae | 1.3 |
| Morgan Stanley | 0.6 |
| | 11.3 |
Top Five Market Sectors as of August 31, 2019
| | % of fund's net assets |
| Information Technology | 19.1 |
| Financials | 13.6 |
| Health Care | 11.1 |
| Communication Services | 9.1 |
| Consumer Discretionary | 8.9 |
Asset Allocation (% of fund's net assets)
| As of August 31, 2019* |
| | Stocks | 68.1% |
| | Bonds | 27.1% |
| | Convertible Securities | 0.1% |
| | Other Investments | 0.8% |
| | Short-Term Investments and Net Other Assets (Liabilities) | 3.9% |
* Foreign investments - 10.6%
An unaudited holdings listing for the Fund, which presents direct holdings as well as the pro-rata share of any securities and other investments held indirectly through its investment in underlying non-money market Fidelity Central Funds, is available at fidelity.com and/or institutional.fidelity.com, as applicable.
Percentages are adjusted for the effect of futures contracts and swaps, if applicable.
Percentages in the above tables are adjusted for the effect of TBA Sale Commitments.
Schedule of Investments August 31, 2019
Showing Percentage of Net Assets
| Common Stocks - 68.0% | | | |
| | | Shares | Value |
| COMMUNICATION SERVICES - 7.4% | | | |
| Diversified Telecommunication Services - 0.3% | | | |
| Verizon Communications, Inc. | | 4,101 | $238,514 |
| Entertainment - 1.5% | | | |
| Electronic Arts, Inc. (a) | | 674 | 63,140 |
| Lions Gate Entertainment Corp. Class B | | 1,929 | 16,088 |
| Live Nation Entertainment, Inc. (a) | | 1,556 | 108,158 |
| LiveXLive Media, Inc. (a) | | 21,155 | 46,964 |
| Netflix, Inc. (a) | | 1,250 | 367,188 |
| The Walt Disney Co. | | 4,588 | 629,749 |
| | | | 1,231,287 |
| Interactive Media & Services - 4.4% | | | |
| Alphabet, Inc. Class C (a) | | 1,969 | 2,339,369 |
| Facebook, Inc. Class A (a) | | 6,842 | 1,270,354 |
| Twitter, Inc. (a) | | 881 | 37,575 |
| | | | 3,647,298 |
| Media - 0.7% | | | |
| Comcast Corp. Class A | | 13,744 | 608,309 |
| Wireless Telecommunication Services - 0.5% | | | |
| T-Mobile U.S., Inc. (a) | | 5,730 | 447,227 |
|
| TOTAL COMMUNICATION SERVICES | | | 6,172,635 |
|
| CONSUMER DISCRETIONARY - 8.3% | | | |
| Diversified Consumer Services - 0.1% | | | |
| Afya Ltd. | | 1,857 | 40,668 |
| Arco Platform Ltd. Class A | | 564 | 27,264 |
| ServiceMaster Global Holdings, Inc. (a) | | 653 | 37,247 |
| | | | 105,179 |
| Hotels, Restaurants & Leisure - 1.3% | | | |
| Compass Group PLC | | 5,512 | 139,797 |
| Marriott International, Inc. Class A | | 226 | 28,490 |
| McDonald's Corp. | | 3,155 | 687,695 |
| Restaurant Brands International, Inc. | | 2,961 | 232,290 |
| Vail Resorts, Inc. | | 58 | 13,704 |
| | | | 1,101,976 |
| Household Durables - 0.2% | | | |
| D.R. Horton, Inc. | | 2,475 | 122,438 |
| Internet & Direct Marketing Retail - 3.7% | | | |
| Alibaba Group Holding Ltd. sponsored ADR (a) | | 1,232 | 215,637 |
| Amazon.com, Inc. (a) | | 1,319 | 2,342,927 |
| Etsy, Inc. (a) | | 523 | 27,609 |
| GrubHub, Inc. (a) | | 741 | 43,971 |
| MercadoLibre, Inc. (a) | | 375 | 222,975 |
| Pinduoduo, Inc. ADR (a) | | 4,739 | 155,297 |
| The Booking Holdings, Inc. (a) | | 42 | 82,589 |
| | | | 3,091,005 |
| Multiline Retail - 0.8% | | | |
| Dollar General Corp. | | 950 | 148,286 |
| Dollar Tree, Inc. (a) | | 4,947 | 502,269 |
| | | | 650,555 |
| Specialty Retail - 1.1% | | | |
| Five Below, Inc. (a) | | 259 | 31,823 |
| Lowe's Companies, Inc. | | 2,757 | 309,335 |
| The Home Depot, Inc. | | 1,364 | 310,869 |
| TJX Companies, Inc. | | 3,847 | 211,470 |
| Ulta Beauty, Inc. (a) | | 287 | 68,229 |
| | | | 931,726 |
| Textiles, Apparel & Luxury Goods - 1.1% | | | |
| Brunello Cucinelli SpA | | 4,800 | 148,978 |
| LVMH Moet Hennessy Louis Vuitton SE | | 816 | 325,410 |
| NIKE, Inc. Class B | | 5,364 | 453,258 |
| | | | 927,646 |
|
| TOTAL CONSUMER DISCRETIONARY | | | 6,930,525 |
|
| CONSUMER STAPLES - 4.7% | | | |
| Beverages - 1.6% | | | |
| Keurig Dr. Pepper, Inc. | | 5,595 | 152,632 |
| Monster Beverage Corp. (a) | | 6,184 | 362,815 |
| PepsiCo, Inc. | | 1,035 | 141,516 |
| The Coca-Cola Co. | | 12,035 | 662,406 |
| | | | 1,319,369 |
| Food & Staples Retailing - 1.4% | | | |
| Costco Wholesale Corp. | | 1,071 | 315,688 |
| Walmart, Inc. | | 7,294 | 833,412 |
| | | | 1,149,100 |
| Food Products - 0.1% | | | |
| Darling International, Inc. (a) | | 5,619 | 104,513 |
| Household Products - 1.3% | | | |
| Kimberly-Clark Corp. | | 1,251 | 176,529 |
| Procter & Gamble Co. | | 7,918 | 951,981 |
| | | | 1,128,510 |
| Personal Products - 0.3% | | | |
| Estee Lauder Companies, Inc. Class A | | 1,064 | 210,661 |
| L'Oreal SA (a) | | 33 | 9,016 |
| | | | 219,677 |
|
| TOTAL CONSUMER STAPLES | | | 3,921,169 |
|
| ENERGY - 0.8% | | | |
| Oil, Gas & Consumable Fuels - 0.8% | | | |
| Hess Corp. | | 5,725 | 360,389 |
| Parsley Energy, Inc. Class A | | 2,983 | 53,426 |
| Pioneer Natural Resources Co. | | 2,005 | 247,457 |
| | | | 661,272 |
| FINANCIALS - 7.6% | | | |
| Banks - 3.0% | | | |
| Bank of America Corp. | | 41,156 | 1,132,202 |
| Citigroup, Inc. | | 3,095 | 199,163 |
| HDFC Bank Ltd. sponsored ADR | | 1,016 | 109,525 |
| JPMorgan Chase & Co. | | 6,791 | 746,059 |
| M&T Bank Corp. | | 1,705 | 249,288 |
| SunTrust Banks, Inc. | | 1,525 | 93,803 |
| | | | 2,530,040 |
| Capital Markets - 2.7% | | | |
| CME Group, Inc. | | 2,377 | 516,498 |
| E*TRADE Financial Corp. | | 1,556 | 64,947 |
| IntercontinentalExchange, Inc. | | 1,709 | 159,757 |
| London Stock Exchange Group PLC | | 1,000 | 84,616 |
| Moody's Corp. | | 580 | 125,036 |
| Morningstar, Inc. | | 1,294 | 209,085 |
| MSCI, Inc. | | 1,594 | 374,000 |
| S&P Global, Inc. | | 1,792 | 466,260 |
| The Blackstone Group LP | | 5,469 | 272,137 |
| Tradeweb Markets, Inc. Class A | | 253 | 10,775 |
| | | | 2,283,111 |
| Consumer Finance - 0.7% | | | |
| American Express Co. | | 4,512 | 543,109 |
| Diversified Financial Services - 0.9% | | | |
| Berkshire Hathaway, Inc. Class B (a) | | 3,568 | 725,767 |
| Insurance - 0.3% | | | |
| American International Group, Inc. | | 4,065 | 211,543 |
| MetLife, Inc. | | 1,137 | 50,369 |
| | | | 261,912 |
|
| TOTAL FINANCIALS | | | 6,343,939 |
|
| HEALTH CARE - 10.1% | | | |
| Biotechnology - 2.1% | | | |
| AbbVie, Inc. | | 4,597 | 302,207 |
| ACADIA Pharmaceuticals, Inc. (a) | | 2,706 | 74,848 |
| Alexion Pharmaceuticals, Inc. (a) | | 661 | 66,602 |
| Amgen, Inc. | | 3,332 | 695,122 |
| Blueprint Medicines Corp. (a) | | 388 | 29,748 |
| Neurocrine Biosciences, Inc. (a) | | 1,526 | 151,715 |
| Sarepta Therapeutics, Inc. (a) | | 455 | 41,018 |
| Vertex Pharmaceuticals, Inc. (a) | | 2,335 | 420,347 |
| | | | 1,781,607 |
| Health Care Equipment & Supplies - 4.7% | | | |
| Alcon, Inc. (a) | | 3,861 | 235,367 |
| Becton, Dickinson & Co. | | 2,237 | 568,019 |
| Boston Scientific Corp. (a) | | 17,152 | 732,905 |
| Danaher Corp. | | 5,583 | 793,288 |
| DexCom, Inc. (a) | | 340 | 58,347 |
| Edwards Lifesciences Corp. (a) | | 1,209 | 268,205 |
| Hologic, Inc. (a) | | 4,098 | 202,318 |
| Intuitive Surgical, Inc. (a) | | 489 | 250,045 |
| Stryker Corp. | | 3,148 | 694,638 |
| Teleflex, Inc. | | 210 | 76,423 |
| | | | 3,879,555 |
| Health Care Providers & Services - 0.9% | | | |
| Humana, Inc. | | 449 | 127,161 |
| UnitedHealth Group, Inc. | | 2,824 | 660,816 |
| | | | 787,977 |
| Life Sciences Tools & Services - 0.9% | | | |
| Bruker Corp. | | 3,179 | 137,237 |
| Thermo Fisher Scientific, Inc. | | 2,023 | 580,722 |
| | | | 717,959 |
| Pharmaceuticals - 1.5% | | | |
| AstraZeneca PLC sponsored ADR | | 12,580 | 566,477 |
| Corteva, Inc. | | 3,286 | 96,346 |
| Roche Holding AG (participation certificate) | | 306 | 83,618 |
| Zoetis, Inc. Class A | | 3,698 | 467,501 |
| | | | 1,213,942 |
|
| TOTAL HEALTH CARE | | | 8,381,040 |
|
| INDUSTRIALS - 4.8% | | | |
| Aerospace & Defense - 1.3% | | | |
| Northrop Grumman Corp. | | 2,404 | 884,359 |
| TransDigm Group, Inc. | | 428 | 230,401 |
| | | | 1,114,760 |
| Air Freight & Logistics - 0.1% | | | |
| United Parcel Service, Inc. Class B | | 965 | 114,507 |
| Airlines - 0.2% | | | |
| Delta Air Lines, Inc. | | 3,424 | 198,113 |
| Commercial Services & Supplies - 0.1% | | | |
| Copart, Inc. (a) | | 496 | 37,393 |
| Construction & Engineering - 0.3% | | | |
| Jacobs Engineering Group, Inc. | | 2,377 | 211,220 |
| Electrical Equipment - 0.4% | | | |
| AMETEK, Inc. | | 3,348 | 287,694 |
| Fortive Corp. | | 455 | 32,260 |
| | | | 319,954 |
| Industrial Conglomerates - 0.4% | | | |
| General Electric Co. | | 41,999 | 346,492 |
| Machinery - 0.3% | | | |
| Deere & Co. | | 165 | 25,560 |
| Gardner Denver Holdings, Inc. (a) | | 6,221 | 178,418 |
| Ingersoll-Rand PLC | | 529 | 64,057 |
| | | | 268,035 |
| Professional Services - 0.4% | | | |
| IHS Markit Ltd. (a) | | 4,794 | 314,534 |
| Road & Rail - 1.3% | | | |
| Lyft, Inc. | | 3,048 | 149,261 |
| Norfolk Southern Corp. | | 1,204 | 209,556 |
| Uber Technologies, Inc. | | 4,874 | 158,746 |
| Union Pacific Corp. | | 3,526 | 571,071 |
| | | | 1,088,634 |
|
| TOTAL INDUSTRIALS | | | 4,013,642 |
|
| INFORMATION TECHNOLOGY - 18.7% | | | |
| Communications Equipment - 0.7% | | | |
| Cisco Systems, Inc. | | 11,748 | 549,924 |
| Electronic Equipment & Components - 0.1% | | | |
| Amphenol Corp. Class A | | 517 | 45,258 |
| IT Services - 5.7% | | | |
| Accenture PLC Class A | | 3,317 | 657,330 |
| Adyen BV (a)(b) | | 34 | 24,618 |
| Automatic Data Processing, Inc. | | 1,679 | 285,161 |
| EPAM Systems, Inc. (a) | | 35 | 6,697 |
| Fidelity National Information Services, Inc. | | 4,469 | 608,767 |
| Fiserv, Inc. (a) | | 980 | 104,801 |
| Global Payments, Inc. | | 754 | 125,149 |
| GoDaddy, Inc. (a) | | 1,445 | 91,526 |
| MasterCard, Inc. Class A | | 3,621 | 1,018,841 |
| MongoDB, Inc. Class A (a) | | 859 | 130,834 |
| PagSeguro Digital Ltd. (a) | | 540 | 26,978 |
| PayPal Holdings, Inc. (a) | | 2,929 | 319,407 |
| Visa, Inc. Class A | | 7,352 | 1,329,389 |
| | | | 4,729,498 |
| Semiconductors & Semiconductor Equipment - 3.1% | | | |
| Advanced Micro Devices, Inc. (a) | | 3,994 | 125,611 |
| Analog Devices, Inc. | | 4,145 | 455,245 |
| ASML Holding NV | | 1,708 | 380,218 |
| Broadcom, Inc. | | 343 | 96,946 |
| Lam Research Corp. | | 2,082 | 438,282 |
| Marvell Technology Group Ltd. | | 7,844 | 188,021 |
| Micron Technology, Inc. (a) | | 636 | 28,792 |
| NVIDIA Corp. | | 693 | 116,084 |
| NXP Semiconductors NV | | 2,979 | 304,275 |
| Qualcomm, Inc. | | 4,239 | 329,667 |
| Xilinx, Inc. | | 1,444 | 150,263 |
| | | | 2,613,404 |
| Software - 7.3% | | | |
| Adobe, Inc. (a) | | 2,187 | 622,223 |
| Black Knight, Inc. (a) | | 1,755 | 109,249 |
| Ceridian HCM Holding, Inc. (a) | | 1,853 | 107,048 |
| Guidewire Software, Inc. (a) | | 546 | 52,514 |
| HubSpot, Inc. (a) | | 251 | 50,120 |
| Intuit, Inc. | | 1,729 | 498,574 |
| Microsoft Corp. | | 23,497 | 3,239,298 |
| Salesforce.com, Inc. (a) | | 4,333 | 676,251 |
| ServiceNow, Inc. (a) | | 159 | 41,633 |
| Splunk, Inc. (a) | | 561 | 62,731 |
| The Trade Desk, Inc. (a) | | 414 | 101,749 |
| Workday, Inc. Class A (a) | | 2,913 | 516,417 |
| | | | 6,077,807 |
| Technology Hardware, Storage & Peripherals - 1.8% | | | |
| Apple, Inc. | | 7,128 | 1,487,899 |
|
| TOTAL INFORMATION TECHNOLOGY | | | 15,503,790 |
|
| MATERIALS - 1.8% | | | |
| Chemicals - 1.2% | | | |
| CF Industries Holdings, Inc. | | 5,408 | 260,612 |
| Linde PLC | | 1,869 | 353,073 |
| Nutrien Ltd. | | 2,998 | 150,979 |
| Sherwin-Williams Co. | | 429 | 225,976 |
| | | | 990,640 |
| Containers & Packaging - 0.2% | | | |
| Avery Dennison Corp. | | 1,221 | 141,111 |
| Metals & Mining - 0.4% | | | |
| Barrick Gold Corp. | | 17,036 | 330,158 |
| Franco-Nevada Corp. | | 509 | 49,723 |
| | | | 379,881 |
|
| TOTAL MATERIALS | | | 1,511,632 |
|
| REAL ESTATE - 3.1% | | | |
| Equity Real Estate Investment Trusts (REITs) - 3.1% | | | |
| American Tower Corp. | | 4,025 | 926,515 |
| Crown Castle International Corp. | | 4,429 | 642,958 |
| Equinix, Inc. | | 703 | 391,065 |
| Equity Residential (SBI) | | 1,570 | 133,073 |
| Public Storage | | 766 | 202,791 |
| SBA Communications Corp. Class A | | 1,169 | 306,781 |
| | | | 2,603,183 |
| UTILITIES - 0.7% | | | |
| Electric Utilities - 0.7% | | | |
| NextEra Energy, Inc. | | 1,902 | 416,690 |
| Vistra Energy Corp. | | 4,433 | 110,603 |
| | | | 527,293 |
| TOTAL COMMON STOCKS | | | |
| (Cost $55,914,094) | | | 56,570,120 |
|
| Fixed-Income Funds - 32.1% | | | |
| Fidelity High Income Central Fund (c) | | 37,791 | 4,208,799 |
| Fidelity Investment Grade Bond Central Fund (c) | | 198,396 | 22,476,266 |
| TOTAL FIXED-INCOME FUNDS | | | |
| (Cost $26,540,411) | | | 26,685,065 |
|
| Money Market Funds - 0.7% | | | |
| Fidelity Cash Central Fund 2.13% (d) | | | |
| (Cost $630,118) | | 629,992 | 630,118 |
| TOTAL INVESTMENT IN SECURITIES - 100.8% | | | |
| (Cost $83,084,623) | | | 83,885,303 |
| NET OTHER ASSETS (LIABILITIES) - (0.8)% | | | (700,261) |
| NET ASSETS - 100% | | | $83,185,042 |
Legend
(a) Non-income producing
(b) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $24,618 or 0.0% of net assets.
(c) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. A complete unaudited schedule of portfolio holdings for each Fidelity Central Fund is filed with the SEC for the first and third quarters of each fiscal year on Form N-PORT and is available upon request or at the SEC's website at www.sec.gov. An unaudited holdings listing for the Fund, which presents direct holdings as well as the pro-rata share of securities and other investments held indirectly through its investment in underlying non-money market Fidelity Central Funds, is available at fidelity.com and/or institutional.fidelity.com, as applicable. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(d) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
| Fund | Income earned |
| Fidelity Cash Central Fund | $1,103 |
| Fidelity High Income Central Fund | 11,331 |
| Fidelity Investment Grade Bond Central Fund | 30,887 |
| Total | $43,321 |
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.
Fiscal year to date information regarding the Fund’s investments in non-Money Market Central Funds, including the ownership percentage, is presented below.
| Fund | Value, beginning of period | Purchases(a) | Sales Proceeds | Realized Gain/Loss | Change in Unrealized appreciation (depreciation) | Value, end of period | % ownership, end of period |
| Fidelity High Income Central Fund | $-- | $4,154,900 | $-- | $-- | $53,899 | $4,208,799 | 0.2% |
| Fidelity Investment Grade Bond Central Fund | -- | 22,385,511 | -- | -- | 90,755 | 22,476,266 | 0.1% |
| Total | $-- | $26,540,411 | $-- | $-- | $144,654 | $26,685,065 | |
(a) Includes the value of shares purchased through in-kind transactions, if applicable.
Investment Valuation
The following is a summary of the inputs used, as of August 31, 2019, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| | Valuation Inputs at Reporting Date: |
| Description | Total | Level 1 | Level 2 | Level 3 |
| Investments in Securities: | | | | |
| Equities: | | | | |
| Communication Services | $6,172,635 | $6,172,635 | $-- | $-- |
| Consumer Discretionary | 6,930,525 | 6,465,318 | 465,207 | -- |
| Consumer Staples | 3,921,169 | 3,921,169 | -- | -- |
| Energy | 661,272 | 661,272 | -- | -- |
| Financials | 6,343,939 | 6,343,939 | -- | -- |
| Health Care | 8,381,040 | 8,297,422 | 83,618 | -- |
| Industrials | 4,013,642 | 4,013,642 | -- | -- |
| Information Technology | 15,503,790 | 15,503,790 | -- | -- |
| Materials | 1,511,632 | 1,511,632 | -- | -- |
| Real Estate | 2,603,183 | 2,603,183 | -- | -- |
| Utilities | 527,293 | 527,293 | -- | -- |
| Fixed-Income Funds | 26,685,065 | 26,685,065 | -- | -- |
| Money Market Funds | 630,118 | 630,118 | -- | -- |
| Total Investments in Securities: | $83,885,303 | $83,336,478 | $548,825 | $-- |
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 | 10.8% |
| AAA,AA,A | 3.1% |
| BBB | 8.1% |
| BB | 2.7% |
| B | 1.9% |
| CCC,CC,C | 0.9% |
| D | 0.1% |
| Not Rated | 0.4% |
| Equities | 68.1% |
| Short-Term Investments and Net Other Assets | 3.9% |
| | 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.
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% |
| United Kingdom | 1.6% |
| Netherlands | 1.6% |
| Canada | 1.4% |
| Ireland | 1.3% |
| Cayman Islands | 1.2% |
| Others (Individually Less Than 1%) | 3.5% |
| | 100.0% |
The information in the above tables is based on the combined investments of the fund and its pro-rata share of the investments of Fidelity's Fixed-Income Central Funds.
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
| | | August 31, 2019 |
| Assets | | |
Investment in securities, at value — See accompanying schedule:
Unaffiliated issuers (cost $55,914,094) | $56,570,120 | |
| Fidelity Central Funds (cost $27,170,529) | 27,315,183 | |
| Total Investment in Securities (cost $83,084,623) | | $83,885,303 |
| Cash | | 18,507 |
| Dividends receivable | | 22,988 |
| Distributions receivable from Fidelity Central Funds | | 5,831 |
| Total assets | | 83,932,629 |
| Liabilities | | |
| Payable for investments purchased | $10,309 | |
| Payable for fund shares redeemed | 726,923 | |
| Accrued management fee | 10,355 | |
| Total liabilities | | 747,587 |
| Net Assets | | $83,185,042 |
| Net Assets consist of: | | |
| Paid in capital | | $82,358,310 |
| Total distributable earnings (loss) | | 826,732 |
| Net Assets, for 8,108,762 shares outstanding | | $83,185,042 |
| Net Asset Value, offering price and redemption price per share ($83,185,042 ÷ 8,108,762 shares) | | $10.26 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| | | For the period
June 14, 2019 (commencement of operations) to
August 31, 2019 |
| Investment Income | | |
| Dividends | | $24,432 |
| Income from Fidelity Central Funds | | 43,321 |
| Total income | | 67,753 |
| Expenses | | |
| Management fee | $10,990 | |
| Independent trustees' fees and expenses | 1 | |
| Total expenses | | 10,991 |
| Net investment income (loss) | | 56,762 |
| Realized and Unrealized Gain (Loss) | | |
| Net realized gain (loss) on: | | |
| Investment securities: | | |
| Unaffiliated issuers | (29,963) | |
| Foreign currency transactions | 4 | |
| Total net realized gain (loss) | | (29,959) |
| Change in net unrealized appreciation (depreciation) on: | | |
| Investment securities: | | |
| Unaffiliated issuers | 656,026 | |
| Fidelity Central Funds | 144,654 | |
| Assets and liabilities in foreign currencies | (2) | |
| Total change in net unrealized appreciation (depreciation) | | 800,678 |
| Net gain (loss) | | 770,719 |
| Net increase (decrease) in net assets resulting from operations | | $827,481 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| | For the period
June 14, 2019 (commencement of operations) to
August 31, 2019 |
| Increase (Decrease) in Net Assets | |
| Operations | |
| Net investment income (loss) | $56,762 |
| Net realized gain (loss) | (29,959) |
| Change in net unrealized appreciation (depreciation) | 800,678 |
| Net increase (decrease) in net assets resulting from operations | 827,481 |
| Distributions to shareholders | (750) |
| Total distributions | (750) |
| Share transactions | |
| Proceeds from sales of shares | 83,747,719 |
| Reinvestment of distributions | 750 |
| Cost of shares redeemed | (1,390,158) |
| Net increase (decrease) in net assets resulting from share transactions | 82,358,311 |
| Total increase (decrease) in net assets | 83,185,042 |
| Net Assets | |
| Beginning of period | – |
| End of period | $83,185,042 |
| Other Information | |
| Shares | |
| Sold | 8,244,921 |
| Issued in reinvestment of distributions | 73 |
| Redeemed | (136,232) |
| Net increase (decrease) | 8,108,762 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Puritan K6 Fund
| | |
| Year ended August 31, | 2019 A |
| Selected Per–Share Data | |
| Net asset value, beginning of period | $10.00 |
| Income from Investment Operations | |
| Net investment income (loss)B | .03 |
| Net realized and unrealized gain (loss) | .24 |
| Total from investment operations | .27 |
| Distributions from net investment income | (.01) |
| Total distributions | (.01) |
| Net asset value, end of period | $10.26 |
| Total ReturnC | 2.65% |
| Ratios to Average Net AssetsD,E | |
| Expenses before reductions | .31%F,G |
| Expenses net of fee waivers, if any | .31%F,G |
| Expenses net of all reductions | .31%F,G |
| Net investment income (loss) | 1.62%F |
| Supplemental Data | |
| Net assets, end of period (000 omitted) | $83,185 |
| Portfolio turnover rateH | 99%I,J |
A For the period June 14, 2019 (commencement of operations) to August 31, 2019.
B Calculated based on average shares outstanding during the period.
C Total returns for periods of less than one year are not annualized.
D Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. Based on their most recent shareholder report date, the expenses of any underlying non-money market Fidelity Central Funds were less than .005%.
E Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
F Annualized
G The size and fluctuation of net assets and expense amounts may cause ratios to differ from contractual rates.
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
I Portfolio turnover rate excludes securities received or delivered in-kind.
J Amount not annualized.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended August 31, 2019
1. Organization.
Fidelity Puritan K6 Fund (the Fund) is a fund of Fidelity Puritan Trust (the Trust) and is authorized to issue an unlimited number of shares. Share transactions on the Statement of Changes in Net Assets may contain exchanges between affiliated funds. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. Shares generally are available only to employer-sponsored retirement plans that are recordkept by Fidelity, or to certain employer-sponsored retirement plans that are not recordkept by Fidelity.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
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 Fund. These strategies are consistent with the investment objectives of the 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 Fund. The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date ranged from less than .005% to .01%. The following summarizes the Fund's investment in each non-money market Fidelity Central Fund.
| Fidelity Central Fund | Investment Manager | Investment Objective | Investment Practices | Expense Ratio(a) |
| Fidelity High Income Central Fund | FMR Co., Inc. (FMRC) | Seeks a high level of income and may also seek capital appreciation by investing primarily in debt securities, preferred stocks, and convertible securities, with an emphasis on lower-quality debt securities. | Loans & Direct Debt Instruments
Restricted Securities | Less than .005% |
| Fidelity Investment Grade Bond Central Fund | FIMM | Seeks a high level of income by normally investing in investment–grade debt securities. | Delayed Delivery & When Issued Securities
Futures
Repurchase Agreements
Restricted Securities
Swaps | 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.
An unaudited holdings listing for the Fund, which presents direct holdings as well as the pro-rata share of any securities and other investments held indirectly through its investment in underlying non-money market Fidelity Central Funds, is available at fidelity.com. A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds which contain the significant accounting policies (including investment valuation policies) of those funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investments Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of August 31, 2019 is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. As of August 31, 2019, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions and losses deferred due to wash sales.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
| Gross unrealized appreciation | $1,197,903 |
| Gross unrealized depreciation | (406,642) |
| Net unrealized appreciation (depreciation) | $791,261 |
| Tax Cost | $83,094,042 |
The tax-based components of distributable earnings as of period end were as follows:
| Undistributed ordinary income | $56,016 |
| Capital loss carryforward | $(20,543) |
| Net unrealized appreciation (depreciation) on securities and other investments | $791,259 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of fiscal period end and is subject to adjustment.
| No expiration | |
| Short-term | $(20,543) |
The tax character of distributions paid was as follows:
| | August 31, 2019(a) |
| Ordinary Income | $750 |
(a) For the period June 14, 2019 (commencement of operations) to August 31, 2019.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
4. Purchases and Sales of Investments.
Purchases and sales of securities (including the Fixed-Income Central Funds), other than short-term securities and in-kind transactions, aggregated $3,833,566 and $1,901,368, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee that is based on an annual rate of .32% of average net assets. Under the management contract, the investment adviser or an affiliate pays all other expenses of the Fund, excluding fees and expenses of the independent Trustees, and certain miscellaneous expenses such as proxy and shareholder meeting expenses.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $34 for the period.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
Affiliated Exchanges In-Kind. During the period, the Fund received investments and cash valued at $81,770,350 in exchange for 8,048,263 shares of the Fund. The amount of in-kind exchanges is included in share transactions in the accompanying Statement of Changes in Net Assets.
6. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Fidelity Puritan Trust and Shareholders of Fidelity Puritan K6 Fund:
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Fidelity Puritan K6 Fund (one of the funds constituting Fidelity Puritan Trust, referred to hereafter as the “Fund”) as of August 31, 2019, and the related statements of operations and changes in net assets, including the related notes, and the financial highlights for the period June 14, 2019 (commencement of operations) through August 31, 2019 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of August 31, 2019, and the results of its operations, changes in its net assets, and the financial highlights for the period June 14, 2019 (commencement of operations) through August 31, 2019 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audit of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of August 31, 2019 by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audit provides a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Boston, Massachusetts
October 18, 2019
We have served as the auditor of one or more investment companies in the Fidelity group of funds since 1932.
Trustees and Officers
The Trustees, Members of the Advisory Board (if any), and officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Except for Jonathan Chiel, each of the Trustees oversees 298 funds. Mr. Chiel oversees 170 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the fund is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund’s Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-835-5092.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Board Structure and Oversight Function. James C. Curvey is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Ned C. Lautenbach serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and other equity funds. The asset allocation funds may invest in Fidelity® funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Jonathan Chiel (1957)
Year of Election or Appointment: 2016
Trustee
Mr. Chiel also serves as Trustee of other Fidelity® funds. Mr. Chiel is Executive Vice President and General Counsel for FMR LLC (diversified financial services company, 2012-present). Previously, Mr. Chiel served as general counsel (2004-2012) and senior vice president and deputy general counsel (2000-2004) for John Hancock Financial Services; a partner with Choate, Hall & Stewart (1996-2000) (law firm); and an Assistant United States Attorney for the United States Attorney’s Office of the District of Massachusetts (1986-95), including Chief of the Criminal Division (1993-1995). Mr. Chiel is a director on the boards of the Boston Bar Foundation and the Maimonides School.
James C. Curvey (1935)
Year of Election or Appointment: 2007
Trustee
Chairman of the Board of Trustees
Mr. Curvey also serves as Trustee of other Fidelity® funds. Mr. Curvey is Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey is an Overseer Emeritus for the Boston Symphony Orchestra, a Director of Artis-Naples, and a Trustee of Brewster Academy in Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-2018), Director of Fidelity Investments Money Management, Inc. (investment adviser firm, 2009-2014) and a Director of FMR and FMR Co., Inc. (investment adviser firms, 2007-2014).
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), as a member of the Independent Directors Council (IDC) Governing Council (2010-2015), and as a member of the Board of Directors for The Brookville Center for Children’s Services, Inc. (2009-2017). Mr. Dirks is a member of the Finance Committee (2016-present) and Board of Directors (2017-present) and is Treasurer (2018-present) of the Asolo Repertory Theatre.
Donald F. Donahue (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Donahue also serves as a Trustee of other Fidelity® funds. Mr. Donahue is President and Chief Executive Officer of Miranda Partners, LLC (risk consulting for the financial services industry, 2012-present). Previously, Mr. Donahue served as a Member of the Advisory Board of certain Fidelity® funds (2015-2018) and Chief Executive Officer (2006-2012), Chief Operating Officer (2003-2006), and Managing Director, Customer Marketing and Development (1999-2003) of The Depository Trust & Clearing Corporation (financial markets infrastructure). Mr. Donahue serves as a Member (2007-present) and Co-Chairman (2016-present) of the Board of Directors of United Way of New York, Member of the Board of Directors of NYC Leadership Academy (2012-present) and Member of the Board of Advisors of Ripple Labs, Inc. (financial services, 2015-present). He also served as Chairman (2010-2012) and Member of the Board of Directors (2012-2013) of Omgeo, LLC (financial services), Treasurer of United Way of New York (2012-2016), and Member of the Board of Directors of XBRL US (financial services non-profit, 2009-2012) and the International Securities Services Association (2009-2012).
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2014-2017) and a member (2010-2017) of the Board of Directors of Dave & Buster’s Entertainment, Inc. (restaurant and entertainment complexes), as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association, and as a member of the Board of Directors for The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), Earth Fare, Inc. (retail grocery, 2010-2014), and The Western Union Company (global money transfer, 2006-2011).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as Chair (2018-present) and Member (2013-present) of the Board of Governors, State University System of Florida and is a member of the Council on Foreign Relations (1994-present). He is also a member and has most recently served as Chairman of the Board of Directors of Artis-Naples (2012-present). Previously, Mr. Lautenbach served as a member and then Lead Director of the Board of Directors of Eaton Corporation (diversified industrial, 1997-2016). He was also a Partner and Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007). In addition, Mr. Lautenbach also had a 30-year career with IBM (technology company) during which time he served as Senior Vice President and a member of the Corporate Executive Committee (1968-1998).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-2018).
Cornelia M. Small (1944)
Year of Election or Appointment: 2005
Trustee
Ms. Small also serves as Trustee of other Fidelity® funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.
Garnett A. Smith (1947)
Year of Election or Appointment: 2018
Trustee
Mr. Smith also serves as Trustee of other Fidelity® funds. Prior to Mr. Smith's retirement, he served as Chairman and Chief Executive Officer of Inbrand Corp. (manufacturer of personal absorbent products, 1990-1997). He also served as President (1986-1990) of Inbrand Corp. Prior to his employment with Inbrand Corp., he was employed by a retail fabric chain and North Carolina National Bank. In addition, Mr. Smith served as a Member of the Advisory Board of certain Fidelity® funds (2012-2013) and as a board member of the Jackson Hole Land Trust (2009-2012).
David M. Thomas (1949)
Year of Election or Appointment: 2008
Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present) and as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), a Director of Fortune Brands, Inc. (consumer products, 2000-2011), and a member of the Board of Trustees of the University of Florida (2013-2018).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Advisory Board Members and Officers:
Correspondence intended for a Member of the Advisory Board (if any) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235. Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Vicki L. Fuller (1957)
Year of Election or Appointment: 2018
Member of the Advisory Board
Ms. Fuller also serves as Member of the Advisory Board of other Fidelity® funds. Ms. Fuller serves as a member of the Board of Directors, Audit Committee, and Nominating and Governance Committee of The Williams Companies, Inc. (natural gas infrastructure, 2018-present). Previously, Ms. Fuller served as the Chief Investment Officer of the New York State Common Retirement Fund (2012-2018) and held a variety of positions at AllianceBernstein L.P. (global asset management, 1985-2012), including Managing Director (2006-2012) and Senior Vice President and Senior Portfolio Manager (2001-2006).
Peter S. Lynch (1944)
Year of Election or Appointment: 2003
Member of the Advisory Board
Mr. Lynch also serves as Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of FMR (investment adviser firm) and FMR Co., Inc. (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).
Michael E. Wiley (1950)
Year of Election or Appointment: 2018
Member of the Advisory Board
Mr. Wiley also serves as Trustee or Member of the Advisory Board of other Fidelity® funds. Mr. Wiley serves as a Director of High Point Resources (exploration and production, 2005-present). Previously, Mr. Wiley served as a Director of Andeavor Corporation (independent oil refiner and marketer, 2005-2018), a Director of Andeavor Logistics LP (natural resources logistics, 2015-2018), a Director of Post Oak Bank (privately-held bank, 2004-2018), a Director of Asia Pacific Exploration Consolidated (international oil and gas exploration and production, 2008-2013), a member of the Board of Trustees of the University of Tulsa (2000-2006; 2007-2010), a Senior Energy Advisor of Katzenbach Partners, LLC (consulting, 2006-2007), an Advisory Director of Riverstone Holdings (private investment), a Director of Spinnaker Exploration Company (exploration and production, 2001-2005) and Chairman, President, and CEO of Baker Hughes, Inc. (oilfield services, 2000-2004).
Elizabeth Paige Baumann (1968)
Year of Election or Appointment: 2017
Anti-Money Laundering (AML) Officer
Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer (2012-present) and Senior Vice President (2014-present) of FMR LLC (diversified financial services company) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as AML Officer of the funds (2012-2016), and Vice President (2007-2014) and Deputy Anti-Money Laundering Officer (2007-2012) of FMR LLC.
Craig S. Brown (1977)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Brown also serves as Assistant Treasurer of other funds. Mr. Brown is an employee of Fidelity Investments (2013-present).
John J. Burke III (1964)
Year of Election or Appointment: 2018
Chief Financial Officer
Mr. Burke also serves as Chief Financial Officer of other funds. Mr. Burke serves as Head of Investment Operations for Fidelity Fund and Investment Operations (2018-present) and is an employee of Fidelity Investments (1998-present). Previously Mr. Burke served as head of Asset Management Investment Operations (2012-2018).
William C. Coffey (1969)
Year of Election or Appointment: 2019
Assistant Secretary
Mr. Coffey also serves as Assistant Secretary of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Secretary and CLO of certain funds (2018-2019); CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2018-2019); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2018-2019); CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2018-2019); and Assistant Secretary of certain funds (2009-2018).
Timothy M. Cohen (1969)
Year of Election or Appointment: 2018
Vice President
Mr. Cohen also serves as Vice President of other funds. Mr. Cohen serves as Executive Vice President of Fidelity SelectCo, LLC (2019-present), Co-Head of Equity (2018-present), a Director of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present), and is an employee of Fidelity Investments. Previously, Mr. Cohen served as Head of Global Equity Research (2016-2018), Chief Investment Officer - Equity and a Director of Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2013-2015) and as a Director of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2017).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds. Mr. Davis serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present), and is an employee of Fidelity Investments (2008-present). Previously, Mr. Deberghes served as President and Treasurer of certain Fidelity® funds (2013-2018). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). Previously, Mr. Deberghes served in other fund officer roles.
Laura M. Del Prato (1964)
Year of Election or Appointment: 2018
Assistant Treasurer
Ms. Del Prato also serves as an officer of other funds. Ms. Del Prato is an employee of Fidelity Investments (2017-present). Prior to joining Fidelity Investments, Ms. Del Prato served as a Managing Director and Treasurer of the JPMorgan Mutual Funds (2014-2017). Prior to JPMorgan, Ms. Del Prato served as a partner at Cohen Fund Audit Services (accounting firm, 2012-2013) and KPMG LLP (accounting firm, 2004-2012).
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2005-present). Previously, Mr. Hogan served as Assistant Treasurer of certain Fidelity® funds (2016-2018).
Pamela R. Holding (1964)
Year of Election or Appointment: 2018
Vice President
Ms. Holding also serves as Vice President of other funds. Ms. Holding serves as Executive Vice President of Fidelity SelectCo, LLC (2019-present), Co-Head of Equity (2018-present) and is an employee of Fidelity Investments (2013-present). Previously, Ms. Holding served as Chief Investment Officer of Fidelity Institutional Asset Management (2013-2018).
Cynthia Lo Bessette (1969)
Year of Election or Appointment: 2019
Secretary and Chief Legal Officer (CLO)
Ms. Lo Bessette also serves as Secretary and CLO of other funds. She is a Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2019-present), and is an employee of Fidelity Investments. Previously, Ms. Lo Bessette served as Executive Vice President, General Counsel (2016-2019) and Senior Vice President, Deputy General Counsel (2015-2016) of OppenheimerFunds (investment management company) and Deputy Chief Legal Officer (2013-2015) of Jennison Associates LLC (investment adviser firm).
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight, serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. Ms. Smith serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), is an employee of Fidelity Investments (2009-present), and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Assistant Treasurer (2013-2018) and Deputy Treasurer (2013-2016) of certain Fidelity® funds.
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
Jim Wegmann (1979)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Wegmann also serves as Assistant Treasurer of other funds. Mr. Wegmann is an employee of Fidelity Investments (2011-present).
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The actual expense Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (June 14, 2019 to August 31, 2019). The hypothetical expense Example is based on an investment of $1,000 invested for the one-half year period (March 1, 2019 to August 31, 2019).
Actual Expenses
The first line of the accompanying table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
| | Annualized Expense Ratio-A | Beginning
Account Value | Ending
Account Value
August 31, 2019 | Expenses Paid
During Period |
| Actual | .31% | $1,000.00 | $1,026.50 | $.68-B |
| Hypothetical-C | | $1,000.00 | $1,023.64 | $1.58-D |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Actual expenses are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 79/365 (to reflect the period June 14, 2019 to August 31, 2019). The fees and expenses of the underlying Fidelity Central Funds in which the Fund invests are not included in the Fund's annualized expense ratio. In addition to the expenses noted above, the Fund also indirectly bears its proportional share of the expenses of the underlying Fidelity Central Funds. Annualized expenses of the underlying non-money market Fidelity Central Funds as of their most recent fiscal half year were less than .005%.
C 5% return per year before expenses
D Hypothetical expenses are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
Distributions (Unaudited)
A total of 8.90% of the dividends distributed during the fiscal year was derived from interest on U.S. Government securities which is generally exempt from state income tax.
The fund designates 100% of the dividend distributed during the fiscal year as qualifying for the dividends–received deduction for corporate shareholders.
The fund designates 100% of the dividend distributed during the fiscal year as amounts which may be taken into account as a dividend for the purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code.
The fund will notify shareholders in January 2020 of amounts for use in preparing 2019 income tax returns.
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Puritan K6 Fund
On March 6, 2019, the Board of Trustees, including the Independent Trustees (together, the Board), voted to approve the management contract with Fidelity Management & Research Company (FMR) and the sub-advisory agreements with affiliates of FMR (together, the Advisory Contracts) for the fund. FMR and the sub-advisers are collectively referred to herein as the Investment Advisers. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, considered a broad range of information.
Nature, Extent, and Quality of Services Provided. The Board considered Fidelity's staffing as it relates to the fund, including the backgrounds of investment personnel of Fidelity, and also considered the fund's investment objective, strategies, and related investment philosophy. The Board considered the structure of the investment personnel compensation program and whether this structure provides appropriate incentives to act in the best interests of the fund.
Resources Dedicated to Investment Management and Support Services. The Board and the Fund Oversight and Research Committees reviewed the general qualifications and capabilities of Fidelity's investment staff, including its size, education, experience, and resources, as well as Fidelity's approach to recruiting, training, managing, and compensating investment personnel. The Board noted that Fidelity has continued to increase the resources devoted to non-U.S. offices, including expansion of Fidelity's global investment organization. The Board also noted that Fidelity's analysts have extensive resources, tools and capabilities that allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and guarantors. Further, the Board considered that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered Fidelity's trading, risk management, compliance, and technology and operations capabilities and resources, which are integral parts of the investment management process.
Shareholder and Administrative Services. The Board considered the nature, extent, quality, and cost of advisory, administrative, and shareholder services to be performed by the Investment Advisers and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for the fund. The Board also considered the nature and extent of the supervision of third party service providers, principally custodians, subcustodians, and pricing vendors.
The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value and convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through telephone representatives and over the Internet, investor education materials and asset allocation tools, and the expanded availability of Fidelity Investor Centers.
Investment Performance. The fund is a new fund and therefore had no historical performance for the Board to review at the time it approved the fund's Advisory Contracts. The Board considered the Investment Advisers' strength in fundamental, research-driven security selection, which the Board is familiar with through its supervision of other Fidelity funds.
Based on its review, the Board concluded that the nature, extent, and quality of services to be provided to the fund under the Advisory Contracts should benefit the shareholders of the fund.
Competitiveness of Management Fee and Total Expense Ratio. In reviewing the Advisory Contracts, the Board considered the fund's proposed management fee rate out of which FMR will pay all operating expenses, with certain limited exceptions, and the projected total expense ratio of the fund. The Board noted that the fund's proposed management fee rate is lower than the median fee rate of funds with similar Lipper investment objective categories and comparable investment mandates, regardless of whether their management fee structures are comparable. The Board also considered that the projected total expense ratio of the fund is below the median of those funds and classes used by the Board for management fee comparisons that have a similar sales load structure.
Based on its review, the Board concluded that the fund's management fee and projected total expense ratio were reasonable in light of the services that the fund and its shareholders will receive and the other factors considered.
Costs of the Services and Profitability. The fund is a new fund and therefore no revenue, cost, or profitability data was available for the Board to review in respect of the fund at the time it approved the Advisory Contracts. In connection with its future renewal of the fund's Advisory Contracts, the Board will consider the revenues earned and the expenses incurred by Fidelity in conducting the business of developing, marketing, distributing, managing, administering and servicing the fund and servicing the fund's shareholders.
Economies of Scale. The Board will consider economies of scale when there is operating experience to permit assessment thereof. It noted that, notwithstanding the entrepreneurial risk associated with a new fund, the management fee was at a level normally associated, by comparison with competitors, with very high fund net assets, and Fidelity asserted to the Board that the level of the fee anticipated economies of scale at lower asset levels even before, if ever, economies of scale are achieved. The Board also noted that the fund and its shareholders would have access to the very considerable number and variety of services available through Fidelity and its affiliates.
PUR-K6-ANN-1019
1.9893909.100
Item 2.
Code of Ethics
As of the end of the period, August 31, 2019, Fidelity Puritan Trust (the trust) has adopted a code of ethics, as defined in Item 2 of Form N-CSR, that applies to its President and Treasurer and its Chief Financial Officer. A copy of the code of ethics is filed as an exhibit to this Form N-CSR.
Item 3.
Audit Committee Financial Expert
The Board of Trustees of the trust has determined that Joseph Mauriello is an audit committee financial expert, as defined in Item 3 of Form N-CSR. Mr. Mauriello is independent for purposes of Item 3 of Form N-CSR.
Item 4.
Principal Accountant Fees and Services
Fees and Services
The following table presents fees billed by PricewaterhouseCoopers LLP (“PwC”) in each of the last two fiscal years for services rendered to Fidelity Balanced Fund, Fidelity Balanced K6 Fund, Fidelity Puritan Fund and Fidelity Puritan K6 Fund (the “Funds”):
Services Billed by PwC
August 31, 2019 FeesA,B
| | | | |
| Audit Fees | Audit-Related Fees | Tax Fees | All Other Fees |
Fidelity Balanced Fund | $92,000 | $7,500 | $6,500 | $3,500 |
Fidelity Balanced K6 Fund | $45,000 | $800 | $4,100 | $400 |
Fidelity Puritan Fund | $144,000 | $13,500 | $127,300 | $6,300 |
Fidelity Puritan K6 Fund | $49,000 | $900 | $5,200 | $400 |
| | | | |
| Audit Fees | Audit-Related Fees | Tax Fees | All Other Fees |
Fidelity Balanced Fund | $95,000 | $10,300 | $8,100 | $5,000 |
Fidelity Balanced K6 Fund | $- | $- | $- | $- |
Fidelity Puritan Fund | $234,000 | $18,900 | $241,000 | $9,300 |
Fidelity Puritan K6 Fund | $- | $- | $- | $- |
AAmounts may reflect rounding.
BFidelity Balanced K6 Fund commenced operations on June 14, 2019 and Fidelity Puritan K6 Fund commenced operations on June 14, 2019.
The following table presents fees billed by PwC that were required to be approved by the Audit Committee for services that relate directly to the operations and financial reporting of the Funds and that are rendered on behalf of Fidelity Management & Research Company (“FMR”) and entities controlling, controlled by, or under common control with FMR (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) that provide ongoing services to the Funds (“Fund Service Providers”):
Services Billed by PwC
| | |
| August 31, 2019A,B | August 31, 2018A,B |
Audit-Related Fees | $7,775,000 | $7,745,000 |
Tax Fees | $10,000 | $20,000 |
All Other Fees | $- | $- |
A Amounts may reflect rounding.
BMay include amounts billed prior to the Fidelity Balanced K6 Fund and Fidelity Puritan K6 Funds’ commencement of operations.
“Audit-Related Fees” represent fees billed for assurance and related services that are reasonably related to the performance of the fund audit or the review of the fund's financial statements and that are not reported under Audit Fees.
“Tax Fees” represent fees billed for tax compliance, tax advice or tax planning that relate directly to the operations and financial reporting of the fund.
“All Other Fees” represent fees billed for services provided to the fund or Fund Service Provider, a significant portion of which are assurance related, that relate directly to the operations and financial reporting of the fund, excluding those services that are reported under Audit Fees, Audit-Related Fees or Tax Fees.
Assurance services must be performed by an independent public accountant.
* * *
The aggregate non-audit fees billed by PwC for services rendered to the Funds, FMR (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any Fund Service Provider for each of the last two fiscal years of the Funds are as follows:
| | |
Billed By | August 31, 2019A,B | August 31, 2018A,B |
PwC | $12,630,000 | $11,195,000 |
A Amounts may reflect rounding.
BMay include amounts billed prior to the Fidelity Balanced K6 Fund and Fidelity Puritan K6 Funds’ commencement of operations.
The trust's Audit Committee has considered non-audit services that were not pre-approved that were provided by PwC to Fund Service Providers to be compatible with maintaining the independence of PwC in its audit of the Funds, taking into account representations from PwC, in accordance with Public Company Accounting Oversight Board rules, regarding its independence from the Funds and their related entities and FMR’s review of the appropriateness and permissibility under applicable law of such non-audit services prior to their provision to the Fund Service Providers.
Audit Committee Pre-Approval Policies and Procedures
The trust’s Audit Committee must pre-approve all audit and non-audit services provided by a fund’s independent registered public accounting firm relating to the operations or financial reporting of the fund. Prior to the commencement of any audit or non-audit services to a fund, the Audit Committee reviews the services to determine whether they are appropriate and permissible under applicable law.
The Audit Committee has adopted policies and procedures to, among other purposes, provide a framework for the Committee’s consideration of non-audit services by the audit firms that audit the Fidelity funds. The policies and procedures require that any non-audit service provided by a fund audit firm to a Fidelity fund and any non-audit service provided by a fund auditor to a Fund Service Provider that relates directly to the operations and financial reporting of a Fidelity fund (“Covered Service”) are subject to approval by the Audit Committee before such service is provided.
All Covered Services must be approved in advance of provision of the service either: (i) by formal resolution of the Audit Committee, or (ii) by oral or written approval of the service by the Chair of the Audit Committee (or if the Chair is unavailable, such other member of the Audit Committee as may be designated by the Chair to act in the Chair’s absence). The approval contemplated by (ii) above is permitted where the Treasurer determines that action on such an engagement is necessary before the next meeting of the Audit Committee.
Non-audit services provided by a fund audit firm to a Fund Service Provider that do not relate directly to the operations and financial reporting of a Fidelity fund are reported to the Audit Committee periodically.
Non-Audit Services Approved Pursuant to Rule 2-01(c)(7)(i)(C) and (ii) of Regulation S-X (“De Minimis Exception”)
There were no non-audit services approved or required to be approved by the Audit Committee pursuant to the De Minimis Exception during the Funds’ last two fiscal years relating to services provided to (i) the Funds or (ii) any Fund Service Provider that relate directly to the operations and financial reporting of the Funds.
Item 5.
Audit Committee of Listed Registrants
Not applicable.
Item 6.
Investments
(a)
Not applicable.
(b)
Not applicable
Item 7.
Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not applicable.
Item 8.
Portfolio Managers of Closed-End Management Investment Companies
Not applicable.
Item 9.
Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
Not applicable.
Item 10.
Submission of Matters to a Vote of Security Holders
There were no material changes to the procedures by which shareholders may recommend nominees to the trust’s Board of Trustees.
Item 11.
Controls and Procedures
(a)(i) The President and Treasurer and the Chief Financial Officer have concluded that the trust’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act) provide reasonable assurances that material information relating to the trust is made known to them by the appropriate persons, based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this report.
(a)(ii) There was no change in the trust’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act) that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the trust’s internal control over financial reporting.
Item 12.
Disclosure of Securities Lending Activities for Closed-End Management
Investment Companies
Not applicable.
Item 13.
Exhibits
| | |
(a) | (1) | Code of Ethics pursuant to Item 2 of Form N-CSR is filed and attached hereto as EX-99.CODE ETH. |
(a) | (2) | Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT. |
(a) | (3) | Not applicable. |
(b) | | Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) is furnished and attached hereto as Exhibit 99.906CERT. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Fidelity Puritan Trust
| |
By: | /s/Stacie M. Smith |
| Stacie M. Smith |
| President and Treasurer |
| |
Date: | October 25, 2019 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
| |
By: | /s/Stacie M. Smith |
| Stacie M. Smith |
| President and Treasurer |
| |
Date: | October 25, 2019 |
| |
By: | /s/John J. Burke III |
| John J. Burke III |
| Chief Financial Officer |
| |
Date: | October 25, 2019 |
