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 811-5251
Fidelity Concord Street Trust
(Exact name of registrant as specified in charter)
245 Summer St., Boston, MA 02210
(Address of principal executive offices) (Zip code)
William C. Coffey, Secretary
245 Summer St.
Boston, Massachusetts 02210
(Name and address of agent for service)
Registrant's telephone number, including area code:
617-563-7000
Date of fiscal year end: | April 30 |
Date of reporting period: | October 31, 2018 |
Item 1.
Reports to Stockholders
Fidelity® Mid-Cap Stock Fund Semi-Annual Report October 31, 2018 |
Contents
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2018 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-Q. Forms N-Q are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Investment Summary (Unaudited)
Top Ten Stocks as of October 31, 2018
% of fund's net assets | |
ARAMARK Holdings Corp. | 1.8 |
Atmos Energy Corp. | 1.5 |
M&T Bank Corp. | 1.4 |
Huntington Bancshares, Inc. | 1.3 |
Amphenol Corp. Class A | 1.3 |
Leidos Holdings, Inc. | 1.3 |
Arch Capital Group Ltd. | 1.2 |
IDACORP, Inc. | 1.1 |
NVR, Inc. | 1.1 |
Keysight Technologies, Inc. | 1.1 |
13.1 |
Top Five Market Sectors as of October 31, 2018
% of fund's net assets | |
Financials | 18.8 |
Consumer Discretionary | 14.6 |
Information Technology | 10.8 |
Industrials | 10.7 |
Health Care | 9.0 |
Asset Allocation (% of fund's net assets)
As of October 31, 2018 * | ||
Stocks | 84.6% | |
Bonds | 0.2% | |
Convertible Securities | 1.4% | |
Other Investments | 0.1% | |
Short-Term Investments and Net Other Assets (Liabilities) | 13.7% |
* Foreign investments - 15.9%
Schedule of Investments October 31, 2018 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 84.6% | |||
Shares | Value (000s) | ||
COMMUNICATION SERVICES - 0.3% | |||
Entertainment - 0.3% | |||
WME Entertainment Parent, LLC Class A (a)(b)(c)(d) | 8,617,950 | $26,974 | |
CONSUMER DISCRETIONARY - 13.9% | |||
Automobiles - 0.7% | |||
Fiat Chrysler Automobiles NV | 3,841,800 | 58,050 | |
Distributors - 0.4% | |||
Pool Corp. | 187,333 | 27,304 | |
Hotels, Restaurants & Leisure - 4.1% | |||
ARAMARK Holdings Corp. | 3,886,340 | 139,600 | |
Del Frisco's Restaurant Group, Inc. (a) | 1,578,900 | 10,658 | |
Drive Shack, Inc. (a) | 3,281,878 | 17,525 | |
Dunkin' Brands Group, Inc. | 400,700 | 29,075 | |
U.S. Foods Holding Corp. (a) | 2,098,200 | 61,204 | |
Wyndham Hotels & Resorts, Inc. | 1,160,000 | 57,176 | |
315,238 | |||
Household Durables - 3.2% | |||
D.R. Horton, Inc. | 1,206,433 | 43,383 | |
Lennar Corp. Class A | 583,900 | 25,096 | |
Newell Brands, Inc. | 1,189,100 | 18,883 | |
NVR, Inc. (a) | 39,300 | 87,994 | |
Toll Brothers, Inc. | 2,111,287 | 71,066 | |
246,422 | |||
Leisure Products - 0.1% | |||
New Academy Holding Co. LLC unit (a)(c)(d)(e) | 294,000 | 9,843 | |
Multiline Retail - 1.1% | |||
Dollar General Corp. | 582,200 | 64,845 | |
Dollar Tree, Inc. (a) | 248,900 | 20,982 | |
85,827 | |||
Specialty Retail - 2.1% | |||
AutoZone, Inc. (a) | 68,000 | 49,876 | |
Ross Stores, Inc. | 478,500 | 47,372 | |
Tiffany & Co., Inc. | 338,000 | 37,619 | |
Ulta Beauty, Inc. (a) | 84,600 | 23,224 | |
158,091 | |||
Textiles, Apparel & Luxury Goods - 2.2% | |||
Allbirds, Inc. (c)(d) | 10,775 | 591 | |
Brunello Cucinelli SpA | 2,067,300 | 70,831 | |
Prada SpA | 9,389,700 | 33,167 | |
PVH Corp. | 311,800 | 37,662 | |
Under Armour, Inc. Class A (sub. vtg.) (a)(f) | 1,119,400 | 24,750 | |
167,001 | |||
TOTAL CONSUMER DISCRETIONARY | 1,067,776 | ||
CONSUMER STAPLES - 2.8% | |||
Beverages - 0.3% | |||
Molson Coors Brewing Co. Class B | 332,400 | 21,274 | |
Food Products - 1.6% | |||
Amira Nature Foods Ltd. (a)(f) | 1,783,275 | 1,327 | |
Conagra Brands, Inc. | 1,226,900 | 43,678 | |
Greencore Group PLC | 15,937,084 | 38,542 | |
The Hershey Co. | 409,600 | 43,889 | |
127,436 | |||
Household Products - 0.5% | |||
Church & Dwight Co., Inc. | 616,646 | 36,610 | |
Personal Products - 0.4% | |||
Coty, Inc. Class A | 2,934,798 | 30,962 | |
TOTAL CONSUMER STAPLES | 216,282 | ||
ENERGY - 6.4% | |||
Energy Equipment & Services - 1.3% | |||
Borr Drilling Ltd. (a) | 10,814,000 | 42,077 | |
Oceaneering International, Inc. (a) | 2,016,670 | 38,196 | |
TechnipFMC PLC | 674,200 | 17,731 | |
98,004 | |||
Oil, Gas & Consumable Fuels - 5.1% | |||
Cabot Oil & Gas Corp. | 1,508,700 | 36,556 | |
Cheniere Energy, Inc. (a) | 746,000 | 45,066 | |
Cimarex Energy Co. | 514,200 | 40,863 | |
Denbury Resources, Inc. (a) | 4,034,200 | 13,918 | |
Diamondback Energy, Inc. | 246,700 | 27,719 | |
GasLog Ltd. | 1,179,177 | 24,126 | |
Golar LNG Ltd. | 1,842,745 | 49,349 | |
Kosmos Energy Ltd. (a) | 4,074,600 | 26,444 | |
Legacy Reserves, Inc. (a) | 1,733,100 | 7,296 | |
SM Energy Co. | 1,451,300 | 35,325 | |
The Williams Companies, Inc. | 2,270,497 | 55,241 | |
Whiting Petroleum Corp. (a) | 437,800 | 16,330 | |
WPX Energy, Inc. (a) | 1,033,100 | 16,571 | |
394,804 | |||
TOTAL ENERGY | 492,808 | ||
FINANCIALS - 18.8% | |||
Banks - 8.5% | |||
Bank of Hawaii Corp. | 319,500 | 25,062 | |
Cullen/Frost Bankers, Inc. | 699,800 | 68,524 | |
First Horizon National Corp. | 3,459,600 | 55,838 | |
First Republic Bank | 439,500 | 39,990 | |
Huntington Bancshares, Inc. | 7,015,400 | 100,531 | |
M&T Bank Corp. | 635,500 | 105,118 | |
Metro Bank PLC (a)(f) | 625,100 | 17,770 | |
Prosperity Bancshares, Inc. | 936,900 | 60,927 | |
Regions Financial Corp. | 2,061,224 | 34,979 | |
Signature Bank | 619,100 | 68,039 | |
SunTrust Banks, Inc. | 630,900 | 39,532 | |
UMB Financial Corp. | 631,300 | 40,309 | |
656,619 | |||
Capital Markets - 1.8% | |||
Cboe Global Markets, Inc. | 217,900 | 24,590 | |
Northern Trust Corp. | 365,200 | 34,354 | |
The NASDAQ OMX Group, Inc. | 468,900 | 40,658 | |
TPG Specialty Lending, Inc. | 1,953,812 | 39,233 | |
138,835 | |||
Diversified Financial Services - 0.2% | |||
Focus Financial Partners, Inc. Class A | 452,000 | 17,266 | |
Insurance - 6.6% | |||
Arch Capital Group Ltd. (a) | 3,242,100 | 91,978 | |
Aspen Insurance Holdings Ltd. | 1,279,843 | 53,600 | |
Axis Capital Holdings Ltd. | 656,600 | 36,632 | |
Beazley PLC | 2,942,700 | 19,841 | |
First American Financial Corp. | 823,300 | 36,497 | |
FNF Group | 1,623,700 | 54,313 | |
Hartford Financial Services Group, Inc. | 844,000 | 38,334 | |
Hiscox Ltd. | 967,900 | 20,141 | |
Principal Financial Group, Inc. | 570,600 | 26,858 | |
Reinsurance Group of America, Inc. | 592,400 | 84,340 | |
Torchmark Corp. | 500,300 | 42,355 | |
504,889 | |||
Thrifts & Mortgage Finance - 1.7% | |||
MGIC Investment Corp. (a) | 3,669,433 | 44,804 | |
Radian Group, Inc. | 4,422,744 | 84,872 | |
129,676 | |||
TOTAL FINANCIALS | 1,447,285 | ||
HEALTH CARE - 8.8% | |||
Health Care Equipment & Supplies - 2.2% | |||
Boston Scientific Corp. (a) | 1,077,400 | 38,937 | |
Fisher & Paykel Healthcare Corp. | 2,572,575 | 22,831 | |
Hologic, Inc. (a) | 541,530 | 21,114 | |
Integra LifeSciences Holdings Corp. (a) | 967,300 | 51,818 | |
Wright Medical Group NV (a) | 1,155,623 | 31,179 | |
165,879 | |||
Health Care Providers & Services - 3.2% | |||
Acadia Healthcare Co., Inc. (a)(f) | 771,800 | 32,030 | |
Amplifon SpA | 259,351 | 4,600 | |
Henry Schein, Inc. (a) | 645,200 | 53,552 | |
National Vision Holdings, Inc. | 969,767 | 40,177 | |
Notre Dame Intermedica Participacoes SA | 2,534,100 | 16,431 | |
Premier, Inc. (a) | 841,800 | 37,881 | |
Universal Health Services, Inc. Class B | 498,900 | 60,646 | |
245,317 | |||
Health Care Technology - 0.3% | |||
Cerner Corp. (a) | 446,400 | 25,570 | |
Life Sciences Tools & Services - 1.2% | |||
Agilent Technologies, Inc. | 401,100 | 25,987 | |
Bruker Corp. | 803,300 | 25,167 | |
Lonza Group AG | 135,524 | 42,616 | |
93,770 | |||
Pharmaceuticals - 1.9% | |||
Amneal Pharmaceuticals, Inc. (a)(f) | 1,922,600 | 35,472 | |
Catalent, Inc. (a) | 1,212,850 | 48,926 | |
Nektar Therapeutics (a) | 266,200 | 10,297 | |
Perrigo Co. PLC | 724,200 | 50,911 | |
145,606 | |||
TOTAL HEALTH CARE | 676,142 | ||
INDUSTRIALS - 10.7% | |||
Aerospace & Defense - 3.3% | |||
HEICO Corp. Class A | 329,843 | 21,987 | |
Huntington Ingalls Industries, Inc. | 317,500 | 69,367 | |
KEYW Holding Corp. (a)(f)(g) | 4,529,436 | 35,465 | |
Kratos Defense & Security Solutions, Inc. (a)(f) | 2,851,600 | 35,731 | |
Space Exploration Technologies Corp.: | |||
Class A (a)(c)(d) | 139,629 | 23,597 | |
Class C (a)(c)(d) | 2,034 | 344 | |
Teledyne Technologies, Inc. (a) | 288,800 | 63,906 | |
250,397 | |||
Air Freight & Logistics - 0.5% | |||
C.H. Robinson Worldwide, Inc. | 421,900 | 37,562 | |
Commercial Services & Supplies - 1.2% | |||
KAR Auction Services, Inc. | 714,700 | 40,695 | |
Stericycle, Inc. (a) | 379,000 | 18,939 | |
U.S. Ecology, Inc. | 457,981 | 32,027 | |
91,661 | |||
Electrical Equipment - 2.1% | |||
AMETEK, Inc. | 823,092 | 55,213 | |
Generac Holdings, Inc. (a) | 817,700 | 41,482 | |
Melrose Industries PLC | 18,157,741 | 39,142 | |
Regal Beloit Corp. | 379,300 | 27,196 | |
163,033 | |||
Machinery - 2.0% | |||
Donaldson Co., Inc. | 1,499,500 | 76,894 | |
Pentair PLC | 910,800 | 36,569 | |
Rational AG | 76,000 | 44,074 | |
157,537 | |||
Marine - 0.3% | |||
Goodbulk Ltd. (d) | 1,505,822 | 25,634 | |
Road & Rail - 0.6% | |||
Genesee & Wyoming, Inc. Class A (a) | 551,900 | 43,727 | |
Trading Companies & Distributors - 0.7% | |||
Bunzl PLC | 1,798,022 | 53,112 | |
TOTAL INDUSTRIALS | 822,663 | ||
INFORMATION TECHNOLOGY - 10.3% | |||
Electronic Equipment & Components - 3.1% | |||
Amphenol Corp. Class A | 1,122,200 | 100,437 | |
Fabrinet | 1,117,231 | 48,398 | |
Keysight Technologies, Inc. (a) | 1,528,900 | 87,270 | |
236,105 | |||
IT Services - 5.6% | |||
Akamai Technologies, Inc. (a) | 559,700 | 40,438 | |
Fidelity National Information Services, Inc. | 544,286 | 56,660 | |
First Data Corp. Class A (a) | 2,455,073 | 46,008 | |
Fiserv, Inc. (a) | 612,900 | 48,603 | |
FleetCor Technologies, Inc. (a) | 129,400 | 25,884 | |
Leidos Holdings, Inc. | 1,518,400 | 98,362 | |
Science Applications International Corp. | 519,500 | 36,110 | |
WNS Holdings Ltd. sponsored ADR (a) | 1,611,800 | 80,896 | |
432,961 | |||
Software - 1.6% | |||
Aspen Technology, Inc. (a) | 8,846 | 751 | |
Black Knight, Inc. (a) | 657,669 | 32,075 | |
Citrix Systems, Inc. | 456,400 | 46,767 | |
Red Hat, Inc. (a) | 257,400 | 44,180 | |
123,773 | |||
TOTAL INFORMATION TECHNOLOGY | 792,839 | ||
MATERIALS - 2.6% | |||
Chemicals - 1.2% | |||
International Flavors & Fragrances, Inc. | 329,500 | 47,665 | |
LG Chemical Ltd. | 50,300 | 15,297 | |
Nutrien Ltd. | 493,400 | 26,120 | |
89,082 | |||
Containers & Packaging - 0.6% | |||
Packaging Corp. of America | 271,400 | 24,917 | |
WestRock Co. | 501,400 | 21,545 | |
46,462 | |||
Metals & Mining - 0.8% | |||
Franco-Nevada Corp. | 342,600 | 21,397 | |
Newcrest Mining Ltd. | 1,286,984 | 18,783 | |
Novagold Resources, Inc. (a) | 5,118,176 | 20,839 | |
61,019 | |||
TOTAL MATERIALS | 196,563 | ||
REAL ESTATE - 4.1% | |||
Equity Real Estate Investment Trusts (REITs) - 3.8% | |||
Apartment Investment & Management Co. Class A | 912,500 | 39,274 | |
Cousins Properties, Inc. | 5,242,791 | 43,568 | |
Essex Property Trust, Inc. | 262,600 | 65,855 | |
Healthcare Realty Trust, Inc. | 1,239,500 | 34,532 | |
Healthcare Trust of America, Inc. | 1,651,900 | 43,379 | |
Spirit MTA REIT | 396,690 | 4,249 | |
Spirit Realty Capital, Inc. | 3,966,900 | 31,021 | |
VEREIT, Inc. | 3,822,100 | 28,016 | |
289,894 | |||
Real Estate Management & Development - 0.3% | |||
Realogy Holdings Corp. (f) | 1,136,000 | 21,664 | |
TOTAL REAL ESTATE | 311,558 | ||
UTILITIES - 5.9% | |||
Electric Utilities - 4.1% | |||
Alliant Energy Corp. | 2,027,400 | 87,138 | |
IDACORP, Inc. | 948,433 | 88,451 | |
OGE Energy Corp. | 2,171,600 | 78,503 | |
Xcel Energy, Inc. | 1,346,882 | 66,011 | |
320,103 | |||
Gas Utilities - 1.8% | |||
Atmos Energy Corp. | 1,214,597 | 113,055 | |
Spire, Inc. | 333,000 | 24,169 | |
137,224 | |||
TOTAL UTILITIES | 457,327 | ||
TOTAL COMMON STOCKS | |||
(Cost $5,235,265) | 6,508,217 | ||
Preferred Stocks - 1.4% | |||
Convertible Preferred Stocks - 1.4% | |||
CONSUMER DISCRETIONARY - 0.7% | |||
Leisure Products - 0.5% | |||
Peloton Interactive, Inc.: | |||
Series E (a)(c)(d) | 1,758,856 | 25,398 | |
Series F (c)(d) | 748,920 | 10,815 | |
36,213 | |||
Textiles, Apparel & Luxury Goods - 0.2% | |||
Allbirds, Inc.: | |||
Series A (c)(d) | 4,253 | 233 | |
Series B (c)(d) | 747 | 41 | |
Series C (c)(d) | 7,140 | 392 | |
Bolt Threads, Inc. Series D (c)(d) | 976,285 | 15,250 | |
15,916 | |||
TOTAL CONSUMER DISCRETIONARY | 52,129 | ||
HEALTH CARE - 0.2% | |||
Health Care Equipment & Supplies - 0.2% | |||
Butterfly Network, Inc. Series D (c)(d) | 1,647,945 | 16,924 | |
INDUSTRIALS - 0.0% | |||
Aerospace & Defense - 0.0% | |||
Space Exploration Technologies Corp. Series H (a)(c)(d) | 18,837 | 3,183 | |
INFORMATION TECHNOLOGY - 0.5% | |||
Internet Software & Services - 0.5% | |||
Lyft, Inc.: | |||
Series H (c)(d) | 357,494 | 16,929 | |
Series I (c)(d) | 380,095 | 17,999 | |
34,928 | |||
TOTAL CONVERTIBLE PREFERRED STOCKS | 107,164 | ||
Nonconvertible Preferred Stocks - 0.0% | |||
CONSUMER DISCRETIONARY - 0.0% | |||
Textiles, Apparel & Luxury Goods - 0.0% | |||
Allbirds, Inc. (c)(d) | 2,285 | 125 | |
TOTAL PREFERRED STOCKS | |||
(Cost $88,465) | 107,289 | ||
Principal Amount (000s) | Value (000s) | ||
Nonconvertible Bonds - 0.2% | |||
ENERGY - 0.2% | |||
Energy Equipment & Services - 0.2% | |||
Pacific Drilling SA 5.375% 6/1/20(h)(i) | |||
(Cost $18,080) | 26,110 | 10,966 | |
Bank Loan Obligations - 0.0% | |||
ENERGY - 0.0% | |||
Energy Equipment & Services - 0.0% | |||
Pacific Drilling SA DIP, term loan 3 month U.S. LIBOR + 7.000% 5.8714% 11/30/18(d)(j)(k)(l) | |||
(Cost $1,577) | 1,573 | 1,573 | |
Shares | Value (000s) | ||
Other - 0.1% | |||
ENERGY - 0.1% | |||
Oil, Gas & Consumable Fuels - 0.1% | |||
Utica Shale Drilling Program (non-operating revenue interest) (b)(c)(d) | |||
(Cost $20,398) | 20,397,834 | 9,756 | |
Money Market Funds - 14.7% | |||
Fidelity Cash Central Fund, 2.23% (m) | 1,017,123,871 | 1,017,327 | |
Fidelity Securities Lending Cash Central Fund 2.23% (m)(n) | 111,036,113 | 111,047 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $1,128,331) | 1,128,374 | ||
TOTAL INVESTMENT IN SECURITIES - 101.0% | |||
(Cost $6,492,116) | 7,766,175 | ||
NET OTHER ASSETS (LIABILITIES) - (1.0)% | (75,261) | ||
NET ASSETS - 100% | $7,690,914 |
Legend
(a) Non-income producing
(b) Investment is owned by a wholly-owned subsidiary (Subsidiary) that is treated as a corporation for U.S. tax purposes.
(c) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $178,394,000 or 2.3% of net assets.
(d) Level 3 security
(e) Investment is owned by an entity that is treated as a U.S. Corporation for tax purposes in which the Fund holds a percentage ownership.
(f) Security or a portion of the security is on loan at period end.
(g) Affiliated company
(h) Non-income producing - Security is in default.
(i) 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 $10,966,000 or 0.1% of net assets.
(j) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end.
(k) Position or a portion of the position represents an unfunded loan commitment. At period end, the total principal amount and market value of unfunded commitments totaled $648,000 and $648,000, respectively.
(l) Coupon is indexed to a floating interest rate which may be multiplied by a specified factor and/or subject to caps or floors.
(m) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
(n) Includes 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) |
Allbirds, Inc. | 10/9/18 | $591 |
Allbirds, Inc. | 10/9/18 | $125 |
Allbirds, Inc. Series A | 10/9/18 | $233 |
Allbirds, Inc. Series B | 10/9/18 | $41 |
Allbirds, Inc. Series C | 10/9/18 | $392 |
Bolt Threads, Inc. Series D | 12/13/17 | $15,659 |
Butterfly Network, Inc. Series D | 5/4/18 | $16,924 |
Lyft, Inc. Series H | 11/22/17 | $14,209 |
Lyft, Inc. Series I | 6/27/18 | $17,999 |
New Academy Holding Co. LLC unit | 8/1/11 | $30,988 |
Peloton Interactive, Inc. Series E | 3/31/17 | $9,525 |
Peloton Interactive, Inc. Series F | 8/30/18 | $10,815 |
Space Exploration Technologies Corp. Class A | 4/8/16 - 9/11/17 | $14,283 |
Space Exploration Technologies Corp. Class C | 9/11/17 | $275 |
Space Exploration Technologies Corp. Series H | 8/4/17 | $2,543 |
Utica Shale Drilling Program (non-operating revenue interest) | 10/5/16 - 9/1/17 | $20,398 |
WME Entertainment Parent, LLC Class A | 8/16/16 | $16,835 |
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 | $7,403 |
Fidelity Securities Lending Cash Central Fund | 244 |
Total | $7,647 |
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.
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 |
Goodbulk Ltd. | $26,341 | $2,737 | $7,373 | $523 | $751 | $3,178 | $-- |
KEYW Holding Corp. | 35,073 | -- | 16 | -- | (16) | 424 | 35,465 |
Total | $61,414 | $2,737 | $7,389 | $523 | $735 | $3,602 | $35,465 |
Investment Valuation
The following is a summary of the inputs used, as of October 31, 2018, 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 | $26,974 | $-- | $-- | $26,974 |
Consumer Discretionary | 1,120,030 | 1,057,342 | -- | 62,688 |
Consumer Staples | 216,282 | 216,282 | -- | -- |
Energy | 492,808 | 492,808 | -- | -- |
Financials | 1,447,285 | 1,447,285 | -- | -- |
Health Care | 693,066 | 676,142 | -- | 16,924 |
Industrials | 825,846 | 773,088 | -- | 52,758 |
Information Technology | 827,767 | 792,839 | -- | 34,928 |
Materials | 196,563 | 196,563 | -- | -- |
Real Estate | 311,558 | 311,558 | -- | -- |
Utilities | 457,327 | 457,327 | -- | -- |
Corporate Bonds | 10,966 | -- | 10,966 | -- |
Bank Loan Obligations | 1,573 | -- | -- | 1,573 |
Other | 9,756 | -- | -- | 9,756 |
Money Market Funds | 1,128,374 | 1,128,374 | -- | -- |
Total Investments in Securities: | $7,766,175 | $7,549,608 | $10,966 | $205,601 |
The following is a reconciliation of Investments in Securities and Derivative Instruments for which Level 3 inputs were used in determining value:
(Amounts in thousands) | |
Investments in Securities: | |
Beginning Balance | $120,719 |
Net Realized Gain (Loss) on Investment Securities | 751 |
Net Unrealized Gain (Loss) on Investment Securities | 13,728 |
Cost of Purchases | 51,440 |
Proceeds of Sales | (7,374) |
Amortization/Accretion | (4) |
Transfers into Level 3 | 26,341 |
Transfers out of Level 3 | -- |
Ending Balance | $205,601 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at October 31, 2018 | $13,728 |
The information used in the above reconciliations represents fiscal year to date activity for any Investments in Securities and Other Financial Instruments identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliations are included in Net Gain (Loss) on the Fund's Statement of Operations.
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
United States of America | 84.1% |
Bermuda | 4.8% |
United Kingdom | 1.9% |
Ireland | 1.7% |
Italy | 1.5% |
Netherlands | 1.1% |
Bailiwick of Jersey | 1.1% |
Canada | 1.0% |
Others (Individually Less Than 1%) | 2.8% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | October 31, 2018 (Unaudited) | |
Assets | ||
Investment in securities, at value (including securities loaned of $106,497) — See accompanying schedule: Unaffiliated issuers (cost $5,305,604) | $6,602,336 | |
Fidelity Central Funds (cost $1,128,331) | 1,128,374 | |
Other affiliated issuers (cost $58,181) | 35,465 | |
Total Investment in Securities (cost $6,492,116) | $7,766,175 | |
Restricted cash | 444 | |
Receivable for investments sold | 41,523 | |
Receivable for fund shares sold | 2,662 | |
Dividends receivable | 2,163 | |
Interest receivable | 649 | |
Distributions receivable from Fidelity Central Funds | 1,629 | |
Prepaid expenses | 15 | |
Other receivables | 781 | |
Total assets | 7,816,041 | |
Liabilities | ||
Payable for investments purchased | $1,287 | |
Payable for fund shares redeemed | 7,748 | |
Accrued management fee | 3,493 | |
Other affiliated payables | 902 | |
Other payables and accrued expenses | 675 | |
Collateral on securities loaned | 111,022 | |
Total liabilities | 125,127 | |
Net Assets | $7,690,914 | |
Net Assets consist of: | ||
Paid in capital | $5,552,387 | |
Total distributable earnings (loss) | 2,138,527 | |
Net Assets | $7,690,914 | |
Net Asset Value and Maximum Offering Price | ||
Mid-Cap Stock: | ||
Net Asset Value, offering price and redemption price per share ($5,262,526 ÷ 142,347 shares) | $36.97 | |
Class K: | ||
Net Asset Value, offering price and redemption price per share ($2,428,388 ÷ 65,639 shares) | $37.00 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Amounts in thousands | Six months ended October 31, 2018 (Unaudited) | |
Investment Income | ||
Dividends (including $523 earned from other affiliated issuers) | $51,295 | |
Non-Cash dividends | 3,582 | |
Income from Fidelity Central Funds | 7,647 | |
Total income | 62,524 | |
Expenses | ||
Management fee | ||
Basic fee | $22,223 | |
Performance adjustment | (3,424) | |
Transfer agent fees | 4,872 | |
Accounting and security lending fees | 615 | |
Custodian fees and expenses | 90 | |
Independent trustees' fees and expenses | 25 | |
Registration fees | 34 | |
Audit | 33 | |
Legal | 13 | |
Miscellaneous | 31 | |
Total expenses before reductions | 24,512 | |
Expense reductions | (288) | |
Total expenses after reductions | 24,224 | |
Net investment income (loss) | 38,300 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 855,642 | |
Fidelity Central Funds | (7) | |
Other affiliated issuers | 735 | |
Foreign currency transactions | (44) | |
Total net realized gain (loss) | 856,326 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | (847,724) | |
Fidelity Central Funds | (1) | |
Other affiliated issuers | 3,602 | |
Assets and liabilities in foreign currencies | (16) | |
Total change in net unrealized appreciation (depreciation) | (844,139) | |
Net gain (loss) | 12,187 | |
Net increase (decrease) in net assets resulting from operations | $50,487 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Amounts in thousands | Six months ended October 31, 2018 (Unaudited) | Year ended April 30, 2018 |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $38,300 | $49,254 |
Net realized gain (loss) | 856,326 | 681,278 |
Change in net unrealized appreciation (depreciation) | (844,139) | 228,744 |
Net increase (decrease) in net assets resulting from operations | 50,487 | 959,276 |
Distributions to shareholders | (334,886) | – |
Distributions to shareholders from net investment income | – | (47,485) |
Distributions to shareholders from net realized gain | – | (529,727) |
Total distributions | (334,886) | (577,212) |
Share transactions - net increase (decrease) | (7,684) | (233,893) |
Total increase (decrease) in net assets | (292,083) | 148,171 |
Net Assets | ||
Beginning of period | 7,982,997 | 7,834,826 |
End of period | $7,690,914 | $7,982,997 |
Other Information | ||
Distributions in excess of net investment income end of period | $(5,899) |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Mid-Cap Stock Fund
Six months ended (Unaudited) October 31, | Years endedApril 30, | |||||
2018 | 2018 | 2017 | 2016 | 2015 | 2014 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $38.38 | $36.62 | $34.07 | $40.11 | $40.26 | $33.69 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .17 | .22 | .22 | .21 | .18 | .10 |
Net realized and unrealized gain (loss) | .04 | 4.30 | 5.19 | (1.54) | 3.52 | 7.69 |
Total from investment operations | .21 | 4.52 | 5.41 | (1.33) | 3.70 | 7.79 |
Distributions from net investment income | (.03) | (.22) | (.27) | (.22) | (.09) | (.08) |
Distributions from net realized gain | (1.58) | (2.55) | (2.59) | (4.49) | (3.76) | (1.14) |
Total distributions | (1.62)B | (2.76)C | (2.86) | (4.71) | (3.85) | (1.22) |
Redemption fees added to paid in capitalA | – | – | –D | –D | –D | –D |
Net asset value, end of period | $36.97 | $38.38 | $36.62 | $34.07 | $40.11 | $40.26 |
Total ReturnE,F | .38% | 12.66% | 16.80% | (3.44)% | 9.83% | 23.50% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | .63%I | .61% | .58% | .72% | .73% | .78% |
Expenses net of fee waivers, if any | .63%I | .61% | .58% | .72% | .72% | .78% |
Expenses net of all reductions | .62%I | .61% | .58% | .72% | .72% | .78% |
Net investment income (loss) | .90%I | .58% | .64% | .59% | .46% | .25% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $5,263 | $5,629 | $5,622 | $5,136 | $5,874 | $5,966 |
Portfolio turnover rateJ | 35%I | 22% | 27%K | 23%K | 29% | 27% |
A Calculated based on average shares outstanding during the period.
B Total distributions of $1.62 per share is comprised of distributions from net investment income of $.033 and distributions from net realized gain of $1.584 per share.
C Total distributions of $2.76 per share is comprised of distributions from net investment income of $.217 and distributions from net realized gain of $2.545 per share.
D Amount represents less than $.005 per share.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
K Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Fidelity Mid-Cap Stock Fund Class K
Six months ended (Unaudited) October 31, | Years endedApril 30, | |||||
2018 | 2018 | 2017 | 2016 | 2015 | 2014 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $38.40 | $36.64 | $34.08 | $40.12 | $40.27 | $33.68 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .20 | .26 | .26 | .25 | .22 | .15 |
Net realized and unrealized gain (loss) | .03 | 4.30 | 5.20 | (1.54) | 3.51 | 7.69 |
Total from investment operations | .23 | 4.56 | 5.46 | (1.29) | 3.73 | 7.84 |
Distributions from net investment income | (.05) | (.26) | (.31) | (.26) | (.13) | (.12) |
Distributions from net realized gain | (1.58) | (2.55) | (2.59) | (4.49) | (3.76) | (1.14) |
Total distributions | (1.63) | (2.80)B | (2.90) | (4.75) | (3.88)C | (1.25)D |
Redemption fees added to paid in capitalA | – | – | –E | –E | –E | –E |
Net asset value, end of period | $37.00 | $38.40 | $36.64 | $34.08 | $40.12 | $40.27 |
Total ReturnF,G | .44% | 12.78% | 16.96% | (3.33)% | 9.92% | 23.67% |
Ratios to Average Net AssetsH,I | ||||||
Expenses before reductions | .52%J | .51% | .46% | .60% | .61% | .65% |
Expenses net of fee waivers, if any | .52%J | .51% | .46% | .60% | .61% | .65% |
Expenses net of all reductions | .52%J | .50% | .46% | .60% | .61% | .65% |
Net investment income (loss) | 1.00%J | .69% | .76% | .71% | .57% | .39% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $2,428 | $2,354 | $2,213 | $1,988 | $2,588 | $2,927 |
Portfolio turnover rateK | 35%J | 22% | 27%L | 23%L | 29% | 27% |
A Calculated based on average shares outstanding during the period.
B Total distributions of $2.80 per share is comprised of distributions from net investment income of $.259 and distributions from net realized gain of $2.545 per share.
C Total distributions of $3.88 per share is comprised of distributions from net investment income of $.127 and distributions from net realized gain of $.3.757 per share.
D Total distributions of $1.25 per share is comprised of distributions from net investment income of $.116 and distributions from net realized gain of $1.136 per share.
E Amount represents less than $.005 per share.
F Total returns for periods of less than one year are not annualized.
G Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
H Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Annualized
K Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
L Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended October 31, 2018
(Amounts in thousands except percentages)
1. Organization.
Fidelity Mid-Cap Stock Fund (the Fund) is a fund of Fidelity Concord Street 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 Mid-Cap Stock and Class K shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – 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. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. Corporate bonds and bank loan obligations are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy
The following provides information on Level 3 securities held by the Fund that were valued at period end based on unobservable inputs. These amounts exclude valuations provided by a broker.
Asset Type | Fair Value | Valuation Technique(s) | Unobservable Input | Amount or Range/Weighted Average | Impact to Valuation from an Increase in Input(a) |
Equities | $168,638 | Market comparable | Enterprise value/Sales multiple (EV/S) | 2.5 - 9.2 / 4.9 | Increase |
Enterprise value/EBITDA multiple (EV/EBITDA) | 6.5 | Increase | |||
Discount rate | 9.0% | Decrease | |||
Discount for lack of marketability | 10.0% | Decrease | |||
Premium rate | 10.0% - 94.0% / 61.0% | Increase | |||
Market approach | Transaction price | $10.27 - $169.00 / $60.14 | Increase | ||
Other | $9,756 | Discount cash flow | Discount rate | 13.5% | Decrease |
Bank Loan Obligations | $1,573 | Recovery value | Recovery value | 100.0% | Increase |
(a) Represents the expected directional change in the fair value of the Level 3 investments that would result from an increase in the corresponding input. A decrease to the unobservable input would have the opposite effect. Significant changes in these inputs could result in significantly higher or lower fair value measurements.
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 October 31, 2018, 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. 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 $568 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. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, partnerships, passive foreign investment companies (PFIC), 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 | $1,763,884 |
Gross unrealized depreciation | (486,429) |
Net unrealized appreciation (depreciation) | $1,277,455 |
Tax cost | $6,488,720 |
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
Loans and Other Direct Debt Instruments. The Fund invests in direct debt instruments which are interests in amounts owed to lenders by corporate or other borrowers. These instruments may be in the form of loans, trade claims or other receivables and may include standby financing commitments such as revolving credit facilities that obligate the Fund to supply additional cash to the borrower on demand. Loans may be acquired through assignment or participation. The Fund also invests in unfunded loan commitments, which are contractual obligations for future funding. Information regarding unfunded commitments 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 $37,174 in these Subsidiaries, representing .48% 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 | Prior Line-Item Presentation |
Statement of Assets and Liabilities | Total distributable earnings (loss) | Undistributed/Distributions in excess of/Accumulated net investment income (loss) Accumulated/Undistributed net realized gain (loss) Net unrealized appreciation (depreciation) |
Statement of Changes in Net Assets | N/A - removed | Undistributed/Distributions in excess of/Accumulated net investment income (loss) end of period |
Statement of Changes in Net Assets | Distributions to shareholders | Distributions to shareholders from net investment income Distributions to shareholders from net realized gain |
Distributions to Shareholders Note to Financial Statements | Distributions to shareholders | Distributions to shareholders from net investment income Distributions to shareholders from net realized gain |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $1,299,926 and $2,073,570, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .24% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of +/- .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of Mid-Cap Stock as compared to its benchmark index, the S&P MidCap 400 Index, over the same 36 month performance period. For the reporting period, the total annualized management fee rate, including the performance adjustment, was .46% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of Mid-Cap Stock, except Class K. FIIOC receives an asset-based fee of Class K's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
Amount | % of Class-Level Average Net Assets(a) | |
Mid-Cap Stock | $4,293 | .15 |
Class K | 579 | .05 |
$4,872 |
(a) Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions. For the period, the fees were equivalent to an annualized 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 $61 for the period.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
Other. During the period, the investment adviser reimbursed the Fund for certain losses in the amount of $13.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $11 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. The value of securities loaned to FCM at period end was $1,026. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $228, including $15 from securities loaned to FCM.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $246 for the period. Through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses by $1.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $41.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended October 31, 2018 | Year ended April 30, 2018 | |
Distributions to shareholders | ||
Mid-Cap Stock | $235,168 | $– |
Class K | 99,718 | – |
Total | $334,886 | $– |
From net investment income | ||
Mid-Cap Stock | $– | $31,785 |
Class K | – | 15,700 |
Total | $– | $47,485 |
From net realized gain | ||
Mid-Cap Stock | $– | $375,694 |
Class K | – | 154,033 |
Total | $– | $529,727 |
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
Shares | Shares | Dollars | Dollars | |
Six months ended October 31, 2018 | Year ended April 30, 2018 | Six months ended October 31, 2018 | Year ended April 30, 2018 | |
Mid-Cap Stock | ||||
Shares sold | 3,739 | 9,051 | $145,468 | $343,875 |
Reinvestment of distributions | 5,788 | 10,324 | 222,496 | 386,371 |
Shares redeemed | (13,847) | (26,223) | (542,633) | (993,169) |
Net increase (decrease) | (4,320) | (6,848) | $(174,669) | $(262,923) |
Class K | ||||
Shares sold | 8,090 | 10,639 | $314,553 | $402,221 |
Reinvestment of distributions | 2,593 | 4,532 | 99,718 | 169,733 |
Shares redeemed | (6,354) | (14,271) | (247,286) | (542,924) |
Net increase (decrease) | 4,329 | 900 | $166,985 | $29,030 |
11. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
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 (May 1, 2018 to October 31, 2018).
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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee, which was eliminated effective August 1, 2018, is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee, which was eliminated effective August 1, 2018, is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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 May 1, 2018 | Ending Account Value October 31, 2018 | Expenses Paid During Period-B May 1, 2018 to October 31, 2018 | |
Mid-Cap Stock | .63% | |||
Actual | $1,000.00 | $1,003.80 | $3.18 | |
Hypothetical-C | $1,000.00 | $1,022.03 | $3.21 | |
Class K | .52% | |||
Actual | $1,000.00 | $1,004.40 | $2.63 | |
Hypothetical-C | $1,000.00 | $1,022.58 | $2.65 |
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).
C 5% return per year before expenses
Board Approval of Investment Advisory Contracts
Fidelity Mid-Cap Stock Fund
At its July 2018 meeting, the Board of Trustees, including the Independent Trustees (together, the Board), voted to continue the management contract with Fidelity Management & Research Company (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund for six months through January 31, 2019, in connection with the reunification of the Fidelity Equity High Income Funds Board, which oversees the fund, and the Sector Portfolios Board.
The Board considered that the approval of the fund's Advisory Contracts will not result in any changes in (i) the investment process or strategies employed in the management of the fund's assets; (ii) the fees and expenses paid by shareholders; (iii) the nature, extent or quality of services provided under the fund's Advisory Contracts; or (iv) the day-to-day management of the fund or the persons primarily responsible for such management. The Board concluded that the fund's Advisory Contracts are fair and reasonable, and that the fund's Advisory Contracts should be renewed, without modification, through January 31, 2019, with the understanding that the Board will consider the annual renewal for a full one year period in January 2019.
In connection with its consideration of future renewals of the fund's Advisory Contracts, the Board will consider: (i) the nature, extent and quality of services provided to the fund, including shareholder and administrative services and investment performance; (ii) the competitiveness of the management fee and total expenses for the fund; (iii) the costs of the services and profitability, including the revenues earned and the expenses incurred in conducting the business of developing, marketing, distributing, managing, administering, and servicing the fund and its shareholders, to the extent applicable, as well as potential fall-out benefits from Fidelity's non-fund businesses; and (iv) whether there have been economies of scale in respect of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is the potential for realization of any further economies.
Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board ultimately concluded that the fund's management fee structure is fair and reasonable, and that the continuation of the fund's Advisory Contracts should be approved.
Nature, Extent, and Quality of Services Provided. The Board considered staffing as it relates to the fund, including the backgrounds of investment personnel of Fidelity and Geode, and also considered the fund's investment objective, strategies, and related investment philosophy. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups and with representatives of Geode. The Board considered the structure of the investment personnel compensation programs and whether the structures provide appropriate incentives to act in the best interests of the fund. Additionally, the Board considered the portfolio managers' investments, if any, in the funds that they manage.Resources Dedicated to Investment Management and Support Services. Shareholder and Administrative Services. 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 in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including: (i) continuing to dedicate additional resources to Fidelity's investment research process, which includes meetings with management of issuers of securities in which the funds invest, and to the support of the senior management team that oversees asset management; (ii) continuing efforts to enhance Fidelity's global research capabilities; (iii) launching new funds and making other enhancements to meet client needs; (iv) launching new share classes of existing funds; (v) eliminating purchase minimums and broadening eligibility requirements for certain funds and share classes; (vi) reducing management fees and total expenses for certain growth equity funds and index funds; (vii) lowering expense caps for certain existing funds and classes, and converting certain voluntary expense caps to contractual caps, to reduce expenses borne by shareholders; (viii) eliminating short-term redemption fees for funds that had such fees; (ix) rationalizing product lines and gaining increased efficiencies from fund mergers and share class consolidations; (x) continuing to develop, acquire and implement systems and technology to improve services to the funds and shareholders, strengthen information security, and increase efficiency; and (xi) continuing to implement enhancements to further strengthen Fidelity's product line to increase investors' probability of success in achieving their investment goals, including retirement income goals.Investment Performance. Based on its review, the Board concluded that the nature, extent, and quality of services provided to the fund under the Advisory Contracts should continue to benefit the shareholders of the fund.Costs of the Services and Profitability. The Board considered 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. The Board also considered the level of Fidelity's profits in respect of all the Fidelity funds.On an annual basis, Fidelity presents to the Board information about the profitability of its relationships with the fund. Fidelity calculates profitability information for each fund, as well as aggregate profitability information for groups of Fidelity funds and all Fidelity funds, using a series of detailed revenue and cost allocation methodologies which originate with the books and records of Fidelity on which Fidelity's audited financial statements are based. The Audit Committee of the Board reviews any significant changes from the prior year's methodologies.PricewaterhouseCoopers LLP (PwC), auditor to Fidelity and certain Fidelity funds, has been engaged annually by the Board as part of the Board's assessment of Fidelity's profitability analysis. PwC's engagement includes the review and assessment of the methodologies used by Fidelity in determining the revenues and expenses attributable to Fidelity's mutual fund business, and completion of agreed-upon procedures in respect of the mathematical accuracy of the fund profitability information and its conformity to established allocation methodologies. After considering PwC's reports issued under the engagement and information provided by Fidelity, the Board concluded that while other allocation methods may also be reasonable, Fidelity's profitability methodologies are reasonable in all material respects.The Board also reviewed Fidelity's non-fund businesses and potential indirect benefits such businesses may have received as a result of their association with Fidelity's mutual fund business (i.e., fall-out benefits) as well as cases where Fidelity's affiliates may benefit from the fund's business. The Board noted that changes to fall-out benefits year-over-year reflect business developments at Fidelity's various businesses.The Board considered the costs of the services provided by and the profits realized by Fidelity in connection with the operation of the fund and was satisfied that the profitability was not excessive.Economies of Scale. In order to develop fully the factual basis for consideration of the Fidelity funds' advisory contracts, the Board requested and received additional information on certain topics, including: (i) Fidelity's fund profitability methodology, profitability trends for certain funds, the allocation of various costs to different funds, and the impact of certain factors on fund profitability results; (ii) portfolio manager changes that have occurred during the past year and the amount of the investment that each portfolio manager has made in the Fidelity fund(s) that he or she manages; (iii) Fidelity's compensation structure for portfolio managers, research analysts, and other key personnel, including its effects on fund profitability, the rationale for the compensation structure, and the extent to which current market conditions have affected retention and recruitment; (iv) the arrangements with and compensation paid to certain fund sub-advisers on behalf of the Fidelity funds and the treatment of such compensation within Fidelity's fund profitability methodology; (v) the terms of Fidelity's voluntary expense limitation agreements; (vi) the methodology with respect to competitive fund data and peer group classifications; (vii) Fidelity's transfer agent fee, expense, and service structures for different funds and classes relative to competitive trends, and the impact of the increased use of omnibus accounts; (viii) new developments in the retail and institutional marketplaces and the competitive positioning of the funds relative to other investment products and services; (ix) the impact of recent changes to the money market fund landscape, including the full implementation of money market fund reform and rising interest rates, on Fidelity's money market funds; (x) the funds' share class structures and distribution channels; and (xi) explanations regarding the relative total expense ratios of certain funds and classes, total expense competitive trends and methodologies for total expense competitive comparisons, and actions that might be taken by Fidelity to reduce total expense ratios for certain classes. In addition, the Board considered its discussions with Fidelity throughout the year regarding enhanced information security initiatives and the funds' fair valuation policies.Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board concluded that the advisory and sub-advisory fee arrangements are fair and reasonable, and that the fund's Advisory Contracts should be renewed.Corporate Headquarters
245 Summer St.
Boston, MA 02210
www.fidelity.com
MCS-SANN-1218
1.538556.121
Fidelity® Mid-Cap Stock Fund Semi-Annual Report October 31, 2018 |
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. © 2018 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-Q. Forms N-Q are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Investment Summary (Unaudited)
Top Ten Stocks as of October 31, 2018
% of fund's net assets | |
ARAMARK Holdings Corp. | 1.8 |
Atmos Energy Corp. | 1.5 |
M&T Bank Corp. | 1.4 |
Huntington Bancshares, Inc. | 1.3 |
Amphenol Corp. Class A | 1.3 |
Leidos Holdings, Inc. | 1.3 |
Arch Capital Group Ltd. | 1.2 |
IDACORP, Inc. | 1.1 |
NVR, Inc. | 1.1 |
Keysight Technologies, Inc. | 1.1 |
13.1 |
Top Five Market Sectors as of October 31, 2018
% of fund's net assets | |
Financials | 18.8 |
Consumer Discretionary | 14.6 |
Information Technology | 10.8 |
Industrials | 10.7 |
Health Care | 9.0 |
Asset Allocation (% of fund's net assets)
As of October 31, 2018 * | ||
Stocks | 84.6% | |
Bonds | 0.2% | |
Convertible Securities | 1.4% | |
Other Investments | 0.1% | |
Short-Term Investments and Net Other Assets (Liabilities) | 13.7% |
* Foreign investments - 15.9%
Schedule of Investments October 31, 2018 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 84.6% | |||
Shares | Value (000s) | ||
COMMUNICATION SERVICES - 0.3% | |||
Entertainment - 0.3% | |||
WME Entertainment Parent, LLC Class A (a)(b)(c)(d) | 8,617,950 | $26,974 | |
CONSUMER DISCRETIONARY - 13.9% | |||
Automobiles - 0.7% | |||
Fiat Chrysler Automobiles NV | 3,841,800 | 58,050 | |
Distributors - 0.4% | |||
Pool Corp. | 187,333 | 27,304 | |
Hotels, Restaurants & Leisure - 4.1% | |||
ARAMARK Holdings Corp. | 3,886,340 | 139,600 | |
Del Frisco's Restaurant Group, Inc. (a) | 1,578,900 | 10,658 | |
Drive Shack, Inc. (a) | 3,281,878 | 17,525 | |
Dunkin' Brands Group, Inc. | 400,700 | 29,075 | |
U.S. Foods Holding Corp. (a) | 2,098,200 | 61,204 | |
Wyndham Hotels & Resorts, Inc. | 1,160,000 | 57,176 | |
315,238 | |||
Household Durables - 3.2% | |||
D.R. Horton, Inc. | 1,206,433 | 43,383 | |
Lennar Corp. Class A | 583,900 | 25,096 | |
Newell Brands, Inc. | 1,189,100 | 18,883 | |
NVR, Inc. (a) | 39,300 | 87,994 | |
Toll Brothers, Inc. | 2,111,287 | 71,066 | |
246,422 | |||
Leisure Products - 0.1% | |||
New Academy Holding Co. LLC unit (a)(c)(d)(e) | 294,000 | 9,843 | |
Multiline Retail - 1.1% | |||
Dollar General Corp. | 582,200 | 64,845 | |
Dollar Tree, Inc. (a) | 248,900 | 20,982 | |
85,827 | |||
Specialty Retail - 2.1% | |||
AutoZone, Inc. (a) | 68,000 | 49,876 | |
Ross Stores, Inc. | 478,500 | 47,372 | |
Tiffany & Co., Inc. | 338,000 | 37,619 | |
Ulta Beauty, Inc. (a) | 84,600 | 23,224 | |
158,091 | |||
Textiles, Apparel & Luxury Goods - 2.2% | |||
Allbirds, Inc. (c)(d) | 10,775 | 591 | |
Brunello Cucinelli SpA | 2,067,300 | 70,831 | |
Prada SpA | 9,389,700 | 33,167 | |
PVH Corp. | 311,800 | 37,662 | |
Under Armour, Inc. Class A (sub. vtg.) (a)(f) | 1,119,400 | 24,750 | |
167,001 | |||
TOTAL CONSUMER DISCRETIONARY | 1,067,776 | ||
CONSUMER STAPLES - 2.8% | |||
Beverages - 0.3% | |||
Molson Coors Brewing Co. Class B | 332,400 | 21,274 | |
Food Products - 1.6% | |||
Amira Nature Foods Ltd. (a)(f) | 1,783,275 | 1,327 | |
Conagra Brands, Inc. | 1,226,900 | 43,678 | |
Greencore Group PLC | 15,937,084 | 38,542 | |
The Hershey Co. | 409,600 | 43,889 | |
127,436 | |||
Household Products - 0.5% | |||
Church & Dwight Co., Inc. | 616,646 | 36,610 | |
Personal Products - 0.4% | |||
Coty, Inc. Class A | 2,934,798 | 30,962 | |
TOTAL CONSUMER STAPLES | 216,282 | ||
ENERGY - 6.4% | |||
Energy Equipment & Services - 1.3% | |||
Borr Drilling Ltd. (a) | 10,814,000 | 42,077 | |
Oceaneering International, Inc. (a) | 2,016,670 | 38,196 | |
TechnipFMC PLC | 674,200 | 17,731 | |
98,004 | |||
Oil, Gas & Consumable Fuels - 5.1% | |||
Cabot Oil & Gas Corp. | 1,508,700 | 36,556 | |
Cheniere Energy, Inc. (a) | 746,000 | 45,066 | |
Cimarex Energy Co. | 514,200 | 40,863 | |
Denbury Resources, Inc. (a) | 4,034,200 | 13,918 | |
Diamondback Energy, Inc. | 246,700 | 27,719 | |
GasLog Ltd. | 1,179,177 | 24,126 | |
Golar LNG Ltd. | 1,842,745 | 49,349 | |
Kosmos Energy Ltd. (a) | 4,074,600 | 26,444 | |
Legacy Reserves, Inc. (a) | 1,733,100 | 7,296 | |
SM Energy Co. | 1,451,300 | 35,325 | |
The Williams Companies, Inc. | 2,270,497 | 55,241 | |
Whiting Petroleum Corp. (a) | 437,800 | 16,330 | |
WPX Energy, Inc. (a) | 1,033,100 | 16,571 | |
394,804 | |||
TOTAL ENERGY | 492,808 | ||
FINANCIALS - 18.8% | |||
Banks - 8.5% | |||
Bank of Hawaii Corp. | 319,500 | 25,062 | |
Cullen/Frost Bankers, Inc. | 699,800 | 68,524 | |
First Horizon National Corp. | 3,459,600 | 55,838 | |
First Republic Bank | 439,500 | 39,990 | |
Huntington Bancshares, Inc. | 7,015,400 | 100,531 | |
M&T Bank Corp. | 635,500 | 105,118 | |
Metro Bank PLC (a)(f) | 625,100 | 17,770 | |
Prosperity Bancshares, Inc. | 936,900 | 60,927 | |
Regions Financial Corp. | 2,061,224 | 34,979 | |
Signature Bank | 619,100 | 68,039 | |
SunTrust Banks, Inc. | 630,900 | 39,532 | |
UMB Financial Corp. | 631,300 | 40,309 | |
656,619 | |||
Capital Markets - 1.8% | |||
Cboe Global Markets, Inc. | 217,900 | 24,590 | |
Northern Trust Corp. | 365,200 | 34,354 | |
The NASDAQ OMX Group, Inc. | 468,900 | 40,658 | |
TPG Specialty Lending, Inc. | 1,953,812 | 39,233 | |
138,835 | |||
Diversified Financial Services - 0.2% | |||
Focus Financial Partners, Inc. Class A | 452,000 | 17,266 | |
Insurance - 6.6% | |||
Arch Capital Group Ltd. (a) | 3,242,100 | 91,978 | |
Aspen Insurance Holdings Ltd. | 1,279,843 | 53,600 | |
Axis Capital Holdings Ltd. | 656,600 | 36,632 | |
Beazley PLC | 2,942,700 | 19,841 | |
First American Financial Corp. | 823,300 | 36,497 | |
FNF Group | 1,623,700 | 54,313 | |
Hartford Financial Services Group, Inc. | 844,000 | 38,334 | |
Hiscox Ltd. | 967,900 | 20,141 | |
Principal Financial Group, Inc. | 570,600 | 26,858 | |
Reinsurance Group of America, Inc. | 592,400 | 84,340 | |
Torchmark Corp. | 500,300 | 42,355 | |
504,889 | |||
Thrifts & Mortgage Finance - 1.7% | |||
MGIC Investment Corp. (a) | 3,669,433 | 44,804 | |
Radian Group, Inc. | 4,422,744 | 84,872 | |
129,676 | |||
TOTAL FINANCIALS | 1,447,285 | ||
HEALTH CARE - 8.8% | |||
Health Care Equipment & Supplies - 2.2% | |||
Boston Scientific Corp. (a) | 1,077,400 | 38,937 | |
Fisher & Paykel Healthcare Corp. | 2,572,575 | 22,831 | |
Hologic, Inc. (a) | 541,530 | 21,114 | |
Integra LifeSciences Holdings Corp. (a) | 967,300 | 51,818 | |
Wright Medical Group NV (a) | 1,155,623 | 31,179 | |
165,879 | |||
Health Care Providers & Services - 3.2% | |||
Acadia Healthcare Co., Inc. (a)(f) | 771,800 | 32,030 | |
Amplifon SpA | 259,351 | 4,600 | |
Henry Schein, Inc. (a) | 645,200 | 53,552 | |
National Vision Holdings, Inc. | 969,767 | 40,177 | |
Notre Dame Intermedica Participacoes SA | 2,534,100 | 16,431 | |
Premier, Inc. (a) | 841,800 | 37,881 | |
Universal Health Services, Inc. Class B | 498,900 | 60,646 | |
245,317 | |||
Health Care Technology - 0.3% | |||
Cerner Corp. (a) | 446,400 | 25,570 | |
Life Sciences Tools & Services - 1.2% | |||
Agilent Technologies, Inc. | 401,100 | 25,987 | |
Bruker Corp. | 803,300 | 25,167 | |
Lonza Group AG | 135,524 | 42,616 | |
93,770 | |||
Pharmaceuticals - 1.9% | |||
Amneal Pharmaceuticals, Inc. (a)(f) | 1,922,600 | 35,472 | |
Catalent, Inc. (a) | 1,212,850 | 48,926 | |
Nektar Therapeutics (a) | 266,200 | 10,297 | |
Perrigo Co. PLC | 724,200 | 50,911 | |
145,606 | |||
TOTAL HEALTH CARE | 676,142 | ||
INDUSTRIALS - 10.7% | |||
Aerospace & Defense - 3.3% | |||
HEICO Corp. Class A | 329,843 | 21,987 | |
Huntington Ingalls Industries, Inc. | 317,500 | 69,367 | |
KEYW Holding Corp. (a)(f)(g) | 4,529,436 | 35,465 | |
Kratos Defense & Security Solutions, Inc. (a)(f) | 2,851,600 | 35,731 | |
Space Exploration Technologies Corp.: | |||
Class A (a)(c)(d) | 139,629 | 23,597 | |
Class C (a)(c)(d) | 2,034 | 344 | |
Teledyne Technologies, Inc. (a) | 288,800 | 63,906 | |
250,397 | |||
Air Freight & Logistics - 0.5% | |||
C.H. Robinson Worldwide, Inc. | 421,900 | 37,562 | |
Commercial Services & Supplies - 1.2% | |||
KAR Auction Services, Inc. | 714,700 | 40,695 | |
Stericycle, Inc. (a) | 379,000 | 18,939 | |
U.S. Ecology, Inc. | 457,981 | 32,027 | |
91,661 | |||
Electrical Equipment - 2.1% | |||
AMETEK, Inc. | 823,092 | 55,213 | |
Generac Holdings, Inc. (a) | 817,700 | 41,482 | |
Melrose Industries PLC | 18,157,741 | 39,142 | |
Regal Beloit Corp. | 379,300 | 27,196 | |
163,033 | |||
Machinery - 2.0% | |||
Donaldson Co., Inc. | 1,499,500 | 76,894 | |
Pentair PLC | 910,800 | 36,569 | |
Rational AG | 76,000 | 44,074 | |
157,537 | |||
Marine - 0.3% | |||
Goodbulk Ltd. (d) | 1,505,822 | 25,634 | |
Road & Rail - 0.6% | |||
Genesee & Wyoming, Inc. Class A (a) | 551,900 | 43,727 | |
Trading Companies & Distributors - 0.7% | |||
Bunzl PLC | 1,798,022 | 53,112 | |
TOTAL INDUSTRIALS | 822,663 | ||
INFORMATION TECHNOLOGY - 10.3% | |||
Electronic Equipment & Components - 3.1% | |||
Amphenol Corp. Class A | 1,122,200 | 100,437 | |
Fabrinet | 1,117,231 | 48,398 | |
Keysight Technologies, Inc. (a) | 1,528,900 | 87,270 | |
236,105 | |||
IT Services - 5.6% | |||
Akamai Technologies, Inc. (a) | 559,700 | 40,438 | |
Fidelity National Information Services, Inc. | 544,286 | 56,660 | |
First Data Corp. Class A (a) | 2,455,073 | 46,008 | |
Fiserv, Inc. (a) | 612,900 | 48,603 | |
FleetCor Technologies, Inc. (a) | 129,400 | 25,884 | |
Leidos Holdings, Inc. | 1,518,400 | 98,362 | |
Science Applications International Corp. | 519,500 | 36,110 | |
WNS Holdings Ltd. sponsored ADR (a) | 1,611,800 | 80,896 | |
432,961 | |||
Software - 1.6% | |||
Aspen Technology, Inc. (a) | 8,846 | 751 | |
Black Knight, Inc. (a) | 657,669 | 32,075 | |
Citrix Systems, Inc. | 456,400 | 46,767 | |
Red Hat, Inc. (a) | 257,400 | 44,180 | |
123,773 | |||
TOTAL INFORMATION TECHNOLOGY | 792,839 | ||
MATERIALS - 2.6% | |||
Chemicals - 1.2% | |||
International Flavors & Fragrances, Inc. | 329,500 | 47,665 | |
LG Chemical Ltd. | 50,300 | 15,297 | |
Nutrien Ltd. | 493,400 | 26,120 | |
89,082 | |||
Containers & Packaging - 0.6% | |||
Packaging Corp. of America | 271,400 | 24,917 | |
WestRock Co. | 501,400 | 21,545 | |
46,462 | |||
Metals & Mining - 0.8% | |||
Franco-Nevada Corp. | 342,600 | 21,397 | |
Newcrest Mining Ltd. | 1,286,984 | 18,783 | |
Novagold Resources, Inc. (a) | 5,118,176 | 20,839 | |
61,019 | |||
TOTAL MATERIALS | 196,563 | ||
REAL ESTATE - 4.1% | |||
Equity Real Estate Investment Trusts (REITs) - 3.8% | |||
Apartment Investment & Management Co. Class A | 912,500 | 39,274 | |
Cousins Properties, Inc. | 5,242,791 | 43,568 | |
Essex Property Trust, Inc. | 262,600 | 65,855 | |
Healthcare Realty Trust, Inc. | 1,239,500 | 34,532 | |
Healthcare Trust of America, Inc. | 1,651,900 | 43,379 | |
Spirit MTA REIT | 396,690 | 4,249 | |
Spirit Realty Capital, Inc. | 3,966,900 | 31,021 | |
VEREIT, Inc. | 3,822,100 | 28,016 | |
289,894 | |||
Real Estate Management & Development - 0.3% | |||
Realogy Holdings Corp. (f) | 1,136,000 | 21,664 | |
TOTAL REAL ESTATE | 311,558 | ||
UTILITIES - 5.9% | |||
Electric Utilities - 4.1% | |||
Alliant Energy Corp. | 2,027,400 | 87,138 | |
IDACORP, Inc. | 948,433 | 88,451 | |
OGE Energy Corp. | 2,171,600 | 78,503 | |
Xcel Energy, Inc. | 1,346,882 | 66,011 | |
320,103 | |||
Gas Utilities - 1.8% | |||
Atmos Energy Corp. | 1,214,597 | 113,055 | |
Spire, Inc. | 333,000 | 24,169 | |
137,224 | |||
TOTAL UTILITIES | 457,327 | ||
TOTAL COMMON STOCKS | |||
(Cost $5,235,265) | 6,508,217 | ||
Preferred Stocks - 1.4% | |||
Convertible Preferred Stocks - 1.4% | |||
CONSUMER DISCRETIONARY - 0.7% | |||
Leisure Products - 0.5% | |||
Peloton Interactive, Inc.: | |||
Series E (a)(c)(d) | 1,758,856 | 25,398 | |
Series F (c)(d) | 748,920 | 10,815 | |
36,213 | |||
Textiles, Apparel & Luxury Goods - 0.2% | |||
Allbirds, Inc.: | |||
Series A (c)(d) | 4,253 | 233 | |
Series B (c)(d) | 747 | 41 | |
Series C (c)(d) | 7,140 | 392 | |
Bolt Threads, Inc. Series D (c)(d) | 976,285 | 15,250 | |
15,916 | |||
TOTAL CONSUMER DISCRETIONARY | 52,129 | ||
HEALTH CARE - 0.2% | |||
Health Care Equipment & Supplies - 0.2% | |||
Butterfly Network, Inc. Series D (c)(d) | 1,647,945 | 16,924 | |
INDUSTRIALS - 0.0% | |||
Aerospace & Defense - 0.0% | |||
Space Exploration Technologies Corp. Series H (a)(c)(d) | 18,837 | 3,183 | |
INFORMATION TECHNOLOGY - 0.5% | |||
Internet Software & Services - 0.5% | |||
Lyft, Inc.: | |||
Series H (c)(d) | 357,494 | 16,929 | |
Series I (c)(d) | 380,095 | 17,999 | |
34,928 | |||
TOTAL CONVERTIBLE PREFERRED STOCKS | 107,164 | ||
Nonconvertible Preferred Stocks - 0.0% | |||
CONSUMER DISCRETIONARY - 0.0% | |||
Textiles, Apparel & Luxury Goods - 0.0% | |||
Allbirds, Inc. (c)(d) | 2,285 | 125 | |
TOTAL PREFERRED STOCKS | |||
(Cost $88,465) | 107,289 | ||
Principal Amount (000s) | Value (000s) | ||
Nonconvertible Bonds - 0.2% | |||
ENERGY - 0.2% | |||
Energy Equipment & Services - 0.2% | |||
Pacific Drilling SA 5.375% 6/1/20(h)(i) | |||
(Cost $18,080) | 26,110 | 10,966 | |
Bank Loan Obligations - 0.0% | |||
ENERGY - 0.0% | |||
Energy Equipment & Services - 0.0% | |||
Pacific Drilling SA DIP, term loan 3 month U.S. LIBOR + 7.000% 5.8714% 11/30/18(d)(j)(k)(l) | |||
(Cost $1,577) | 1,573 | 1,573 | |
Shares | Value (000s) | ||
Other - 0.1% | |||
ENERGY - 0.1% | |||
Oil, Gas & Consumable Fuels - 0.1% | |||
Utica Shale Drilling Program (non-operating revenue interest) (b)(c)(d) | |||
(Cost $20,398) | 20,397,834 | 9,756 | |
Money Market Funds - 14.7% | |||
Fidelity Cash Central Fund, 2.23% (m) | 1,017,123,871 | 1,017,327 | |
Fidelity Securities Lending Cash Central Fund 2.23% (m)(n) | 111,036,113 | 111,047 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $1,128,331) | 1,128,374 | ||
TOTAL INVESTMENT IN SECURITIES - 101.0% | |||
(Cost $6,492,116) | 7,766,175 | ||
NET OTHER ASSETS (LIABILITIES) - (1.0)% | (75,261) | ||
NET ASSETS - 100% | $7,690,914 |
Legend
(a) Non-income producing
(b) Investment is owned by a wholly-owned subsidiary (Subsidiary) that is treated as a corporation for U.S. tax purposes.
(c) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $178,394,000 or 2.3% of net assets.
(d) Level 3 security
(e) Investment is owned by an entity that is treated as a U.S. Corporation for tax purposes in which the Fund holds a percentage ownership.
(f) Security or a portion of the security is on loan at period end.
(g) Affiliated company
(h) Non-income producing - Security is in default.
(i) 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 $10,966,000 or 0.1% of net assets.
(j) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end.
(k) Position or a portion of the position represents an unfunded loan commitment. At period end, the total principal amount and market value of unfunded commitments totaled $648,000 and $648,000, respectively.
(l) Coupon is indexed to a floating interest rate which may be multiplied by a specified factor and/or subject to caps or floors.
(m) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
(n) Includes 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) |
Allbirds, Inc. | 10/9/18 | $591 |
Allbirds, Inc. | 10/9/18 | $125 |
Allbirds, Inc. Series A | 10/9/18 | $233 |
Allbirds, Inc. Series B | 10/9/18 | $41 |
Allbirds, Inc. Series C | 10/9/18 | $392 |
Bolt Threads, Inc. Series D | 12/13/17 | $15,659 |
Butterfly Network, Inc. Series D | 5/4/18 | $16,924 |
Lyft, Inc. Series H | 11/22/17 | $14,209 |
Lyft, Inc. Series I | 6/27/18 | $17,999 |
New Academy Holding Co. LLC unit | 8/1/11 | $30,988 |
Peloton Interactive, Inc. Series E | 3/31/17 | $9,525 |
Peloton Interactive, Inc. Series F | 8/30/18 | $10,815 |
Space Exploration Technologies Corp. Class A | 4/8/16 - 9/11/17 | $14,283 |
Space Exploration Technologies Corp. Class C | 9/11/17 | $275 |
Space Exploration Technologies Corp. Series H | 8/4/17 | $2,543 |
Utica Shale Drilling Program (non-operating revenue interest) | 10/5/16 - 9/1/17 | $20,398 |
WME Entertainment Parent, LLC Class A | 8/16/16 | $16,835 |
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 | $7,403 |
Fidelity Securities Lending Cash Central Fund | 244 |
Total | $7,647 |
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.
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 |
Goodbulk Ltd. | $26,341 | $2,737 | $7,373 | $523 | $751 | $3,178 | $-- |
KEYW Holding Corp. | 35,073 | -- | 16 | -- | (16) | 424 | 35,465 |
Total | $61,414 | $2,737 | $7,389 | $523 | $735 | $3,602 | $35,465 |
Investment Valuation
The following is a summary of the inputs used, as of October 31, 2018, 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 | $26,974 | $-- | $-- | $26,974 |
Consumer Discretionary | 1,120,030 | 1,057,342 | -- | 62,688 |
Consumer Staples | 216,282 | 216,282 | -- | -- |
Energy | 492,808 | 492,808 | -- | -- |
Financials | 1,447,285 | 1,447,285 | -- | -- |
Health Care | 693,066 | 676,142 | -- | 16,924 |
Industrials | 825,846 | 773,088 | -- | 52,758 |
Information Technology | 827,767 | 792,839 | -- | 34,928 |
Materials | 196,563 | 196,563 | -- | -- |
Real Estate | 311,558 | 311,558 | -- | -- |
Utilities | 457,327 | 457,327 | -- | -- |
Corporate Bonds | 10,966 | -- | 10,966 | -- |
Bank Loan Obligations | 1,573 | -- | -- | 1,573 |
Other | 9,756 | -- | -- | 9,756 |
Money Market Funds | 1,128,374 | 1,128,374 | -- | -- |
Total Investments in Securities: | $7,766,175 | $7,549,608 | $10,966 | $205,601 |
The following is a reconciliation of Investments in Securities and Derivative Instruments for which Level 3 inputs were used in determining value:
(Amounts in thousands) | |
Investments in Securities: | |
Beginning Balance | $120,719 |
Net Realized Gain (Loss) on Investment Securities | 751 |
Net Unrealized Gain (Loss) on Investment Securities | 13,728 |
Cost of Purchases | 51,440 |
Proceeds of Sales | (7,374) |
Amortization/Accretion | (4) |
Transfers into Level 3 | 26,341 |
Transfers out of Level 3 | -- |
Ending Balance | $205,601 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at October 31, 2018 | $13,728 |
The information used in the above reconciliations represents fiscal year to date activity for any Investments in Securities and Other Financial Instruments identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliations are included in Net Gain (Loss) on the Fund's Statement of Operations.
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
United States of America | 84.1% |
Bermuda | 4.8% |
United Kingdom | 1.9% |
Ireland | 1.7% |
Italy | 1.5% |
Netherlands | 1.1% |
Bailiwick of Jersey | 1.1% |
Canada | 1.0% |
Others (Individually Less Than 1%) | 2.8% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | October 31, 2018 (Unaudited) | |
Assets | ||
Investment in securities, at value (including securities loaned of $106,497) — See accompanying schedule: Unaffiliated issuers (cost $5,305,604) | $6,602,336 | |
Fidelity Central Funds (cost $1,128,331) | 1,128,374 | |
Other affiliated issuers (cost $58,181) | 35,465 | |
Total Investment in Securities (cost $6,492,116) | $7,766,175 | |
Restricted cash | 444 | |
Receivable for investments sold | 41,523 | |
Receivable for fund shares sold | 2,662 | |
Dividends receivable | 2,163 | |
Interest receivable | 649 | |
Distributions receivable from Fidelity Central Funds | 1,629 | |
Prepaid expenses | 15 | |
Other receivables | 781 | |
Total assets | 7,816,041 | |
Liabilities | ||
Payable for investments purchased | $1,287 | |
Payable for fund shares redeemed | 7,748 | |
Accrued management fee | 3,493 | |
Other affiliated payables | 902 | |
Other payables and accrued expenses | 675 | |
Collateral on securities loaned | 111,022 | |
Total liabilities | 125,127 | |
Net Assets | $7,690,914 | |
Net Assets consist of: | ||
Paid in capital | $5,552,387 | |
Total distributable earnings (loss) | 2,138,527 | |
Net Assets | $7,690,914 | |
Net Asset Value and Maximum Offering Price | ||
Mid-Cap Stock: | ||
Net Asset Value, offering price and redemption price per share ($5,262,526 ÷ 142,347 shares) | $36.97 | |
Class K: | ||
Net Asset Value, offering price and redemption price per share ($2,428,388 ÷ 65,639 shares) | $37.00 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Amounts in thousands | Six months ended October 31, 2018 (Unaudited) | |
Investment Income | ||
Dividends (including $523 earned from other affiliated issuers) | $51,295 | |
Non-Cash dividends | 3,582 | |
Income from Fidelity Central Funds | 7,647 | |
Total income | 62,524 | |
Expenses | ||
Management fee | ||
Basic fee | $22,223 | |
Performance adjustment | (3,424) | |
Transfer agent fees | 4,872 | |
Accounting and security lending fees | 615 | |
Custodian fees and expenses | 90 | |
Independent trustees' fees and expenses | 25 | |
Registration fees | 34 | |
Audit | 33 | |
Legal | 13 | |
Miscellaneous | 31 | |
Total expenses before reductions | 24,512 | |
Expense reductions | (288) | |
Total expenses after reductions | 24,224 | |
Net investment income (loss) | 38,300 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 855,642 | |
Fidelity Central Funds | (7) | |
Other affiliated issuers | 735 | |
Foreign currency transactions | (44) | |
Total net realized gain (loss) | 856,326 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | (847,724) | |
Fidelity Central Funds | (1) | |
Other affiliated issuers | 3,602 | |
Assets and liabilities in foreign currencies | (16) | |
Total change in net unrealized appreciation (depreciation) | (844,139) | |
Net gain (loss) | 12,187 | |
Net increase (decrease) in net assets resulting from operations | $50,487 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Amounts in thousands | Six months ended October 31, 2018 (Unaudited) | Year ended April 30, 2018 |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $38,300 | $49,254 |
Net realized gain (loss) | 856,326 | 681,278 |
Change in net unrealized appreciation (depreciation) | (844,139) | 228,744 |
Net increase (decrease) in net assets resulting from operations | 50,487 | 959,276 |
Distributions to shareholders | (334,886) | – |
Distributions to shareholders from net investment income | – | (47,485) |
Distributions to shareholders from net realized gain | – | (529,727) |
Total distributions | (334,886) | (577,212) |
Share transactions - net increase (decrease) | (7,684) | (233,893) |
Total increase (decrease) in net assets | (292,083) | 148,171 |
Net Assets | ||
Beginning of period | 7,982,997 | 7,834,826 |
End of period | $7,690,914 | $7,982,997 |
Other Information | ||
Distributions in excess of net investment income end of period | $(5,899) |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Mid-Cap Stock Fund
Six months ended (Unaudited) October 31, | Years endedApril 30, | |||||
2018 | 2018 | 2017 | 2016 | 2015 | 2014 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $38.38 | $36.62 | $34.07 | $40.11 | $40.26 | $33.69 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .17 | .22 | .22 | .21 | .18 | .10 |
Net realized and unrealized gain (loss) | .04 | 4.30 | 5.19 | (1.54) | 3.52 | 7.69 |
Total from investment operations | .21 | 4.52 | 5.41 | (1.33) | 3.70 | 7.79 |
Distributions from net investment income | (.03) | (.22) | (.27) | (.22) | (.09) | (.08) |
Distributions from net realized gain | (1.58) | (2.55) | (2.59) | (4.49) | (3.76) | (1.14) |
Total distributions | (1.62)B | (2.76)C | (2.86) | (4.71) | (3.85) | (1.22) |
Redemption fees added to paid in capitalA | – | – | –D | –D | –D | –D |
Net asset value, end of period | $36.97 | $38.38 | $36.62 | $34.07 | $40.11 | $40.26 |
Total ReturnE,F | .38% | 12.66% | 16.80% | (3.44)% | 9.83% | 23.50% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | .63%I | .61% | .58% | .72% | .73% | .78% |
Expenses net of fee waivers, if any | .63%I | .61% | .58% | .72% | .72% | .78% |
Expenses net of all reductions | .62%I | .61% | .58% | .72% | .72% | .78% |
Net investment income (loss) | .90%I | .58% | .64% | .59% | .46% | .25% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $5,263 | $5,629 | $5,622 | $5,136 | $5,874 | $5,966 |
Portfolio turnover rateJ | 35%I | 22% | 27%K | 23%K | 29% | 27% |
A Calculated based on average shares outstanding during the period.
B Total distributions of $1.62 per share is comprised of distributions from net investment income of $.033 and distributions from net realized gain of $1.584 per share.
C Total distributions of $2.76 per share is comprised of distributions from net investment income of $.217 and distributions from net realized gain of $2.545 per share.
D Amount represents less than $.005 per share.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
K Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Fidelity Mid-Cap Stock Fund Class K
Six months ended (Unaudited) October 31, | Years endedApril 30, | |||||
2018 | 2018 | 2017 | 2016 | 2015 | 2014 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $38.40 | $36.64 | $34.08 | $40.12 | $40.27 | $33.68 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .20 | .26 | .26 | .25 | .22 | .15 |
Net realized and unrealized gain (loss) | .03 | 4.30 | 5.20 | (1.54) | 3.51 | 7.69 |
Total from investment operations | .23 | 4.56 | 5.46 | (1.29) | 3.73 | 7.84 |
Distributions from net investment income | (.05) | (.26) | (.31) | (.26) | (.13) | (.12) |
Distributions from net realized gain | (1.58) | (2.55) | (2.59) | (4.49) | (3.76) | (1.14) |
Total distributions | (1.63) | (2.80)B | (2.90) | (4.75) | (3.88)C | (1.25)D |
Redemption fees added to paid in capitalA | – | – | –E | –E | –E | –E |
Net asset value, end of period | $37.00 | $38.40 | $36.64 | $34.08 | $40.12 | $40.27 |
Total ReturnF,G | .44% | 12.78% | 16.96% | (3.33)% | 9.92% | 23.67% |
Ratios to Average Net AssetsH,I | ||||||
Expenses before reductions | .52%J | .51% | .46% | .60% | .61% | .65% |
Expenses net of fee waivers, if any | .52%J | .51% | .46% | .60% | .61% | .65% |
Expenses net of all reductions | .52%J | .50% | .46% | .60% | .61% | .65% |
Net investment income (loss) | 1.00%J | .69% | .76% | .71% | .57% | .39% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $2,428 | $2,354 | $2,213 | $1,988 | $2,588 | $2,927 |
Portfolio turnover rateK | 35%J | 22% | 27%L | 23%L | 29% | 27% |
A Calculated based on average shares outstanding during the period.
B Total distributions of $2.80 per share is comprised of distributions from net investment income of $.259 and distributions from net realized gain of $2.545 per share.
C Total distributions of $3.88 per share is comprised of distributions from net investment income of $.127 and distributions from net realized gain of $.3.757 per share.
D Total distributions of $1.25 per share is comprised of distributions from net investment income of $.116 and distributions from net realized gain of $1.136 per share.
E Amount represents less than $.005 per share.
F Total returns for periods of less than one year are not annualized.
G Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
H Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Annualized
K Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
L Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended October 31, 2018
(Amounts in thousands except percentages)
1. Organization.
Fidelity Mid-Cap Stock Fund (the Fund) is a fund of Fidelity Concord Street 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 Mid-Cap Stock and Class K shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – 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. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. Corporate bonds and bank loan obligations are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy
The following provides information on Level 3 securities held by the Fund that were valued at period end based on unobservable inputs. These amounts exclude valuations provided by a broker.
Asset Type | Fair Value | Valuation Technique(s) | Unobservable Input | Amount or Range/Weighted Average | Impact to Valuation from an Increase in Input(a) |
Equities | $168,638 | Market comparable | Enterprise value/Sales multiple (EV/S) | 2.5 - 9.2 / 4.9 | Increase |
Enterprise value/EBITDA multiple (EV/EBITDA) | 6.5 | Increase | |||
Discount rate | 9.0% | Decrease | |||
Discount for lack of marketability | 10.0% | Decrease | |||
Premium rate | 10.0% - 94.0% / 61.0% | Increase | |||
Market approach | Transaction price | $10.27 - $169.00 / $60.14 | Increase | ||
Other | $9,756 | Discount cash flow | Discount rate | 13.5% | Decrease |
Bank Loan Obligations | $1,573 | Recovery value | Recovery value | 100.0% | Increase |
(a) Represents the expected directional change in the fair value of the Level 3 investments that would result from an increase in the corresponding input. A decrease to the unobservable input would have the opposite effect. Significant changes in these inputs could result in significantly higher or lower fair value measurements.
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 October 31, 2018, 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. 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 $568 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. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, partnerships, passive foreign investment companies (PFIC), 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 | $1,763,884 |
Gross unrealized depreciation | (486,429) |
Net unrealized appreciation (depreciation) | $1,277,455 |
Tax cost | $6,488,720 |
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
Loans and Other Direct Debt Instruments. The Fund invests in direct debt instruments which are interests in amounts owed to lenders by corporate or other borrowers. These instruments may be in the form of loans, trade claims or other receivables and may include standby financing commitments such as revolving credit facilities that obligate the Fund to supply additional cash to the borrower on demand. Loans may be acquired through assignment or participation. The Fund also invests in unfunded loan commitments, which are contractual obligations for future funding. Information regarding unfunded commitments 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 $37,174 in these Subsidiaries, representing .48% 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 | Prior Line-Item Presentation |
Statement of Assets and Liabilities | Total distributable earnings (loss) | Undistributed/Distributions in excess of/Accumulated net investment income (loss) Accumulated/Undistributed net realized gain (loss) Net unrealized appreciation (depreciation) |
Statement of Changes in Net Assets | N/A - removed | Undistributed/Distributions in excess of/Accumulated net investment income (loss) end of period |
Statement of Changes in Net Assets | Distributions to shareholders | Distributions to shareholders from net investment income Distributions to shareholders from net realized gain |
Distributions to Shareholders Note to Financial Statements | Distributions to shareholders | Distributions to shareholders from net investment income Distributions to shareholders from net realized gain |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $1,299,926 and $2,073,570, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .24% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of +/- .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of Mid-Cap Stock as compared to its benchmark index, the S&P MidCap 400 Index, over the same 36 month performance period. For the reporting period, the total annualized management fee rate, including the performance adjustment, was .46% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of Mid-Cap Stock, except Class K. FIIOC receives an asset-based fee of Class K's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
Amount | % of Class-Level Average Net Assets(a) | |
Mid-Cap Stock | $4,293 | .15 |
Class K | 579 | .05 |
$4,872 |
(a) Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions. For the period, the fees were equivalent to an annualized 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 $61 for the period.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
Other. During the period, the investment adviser reimbursed the Fund for certain losses in the amount of $13.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $11 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. The value of securities loaned to FCM at period end was $1,026. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $228, including $15 from securities loaned to FCM.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $246 for the period. Through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses by $1.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $41.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended October 31, 2018 | Year ended April 30, 2018 | |
Distributions to shareholders | ||
Mid-Cap Stock | $235,168 | $– |
Class K | 99,718 | – |
Total | $334,886 | $– |
From net investment income | ||
Mid-Cap Stock | $– | $31,785 |
Class K | – | 15,700 |
Total | $– | $47,485 |
From net realized gain | ||
Mid-Cap Stock | $– | $375,694 |
Class K | –�� | 154,033 |
Total | $– | $529,727 |
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
Shares | Shares | Dollars | Dollars | |
Six months ended October 31, 2018 | Year ended April 30, 2018 | Six months ended October 31, 2018 | Year ended April 30, 2018 | |
Mid-Cap Stock | ||||
Shares sold | 3,739 | 9,051 | $145,468 | $343,875 |
Reinvestment of distributions | 5,788 | 10,324 | 222,496 | 386,371 |
Shares redeemed | (13,847) | (26,223) | (542,633) | (993,169) |
Net increase (decrease) | (4,320) | (6,848) | $(174,669) | $(262,923) |
Class K | ||||
Shares sold | 8,090 | 10,639 | $314,553 | $402,221 |
Reinvestment of distributions | 2,593 | 4,532 | 99,718 | 169,733 |
Shares redeemed | (6,354) | (14,271) | (247,286) | (542,924) |
Net increase (decrease) | 4,329 | 900 | $166,985 | $29,030 |
11. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
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 (May 1, 2018 to October 31, 2018).
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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee, which was eliminated effective August 1, 2018, is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee, which was eliminated effective August 1, 2018, is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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 May 1, 2018 | Ending Account Value October 31, 2018 | Expenses Paid During Period-B May 1, 2018 to October 31, 2018 | |
Mid-Cap Stock | .63% | |||
Actual | $1,000.00 | $1,003.80 | $3.18 | |
Hypothetical-C | $1,000.00 | $1,022.03 | $3.21 | |
Class K | .52% | |||
Actual | $1,000.00 | $1,004.40 | $2.63 | |
Hypothetical-C | $1,000.00 | $1,022.58 | $2.65 |
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).
C 5% return per year before expenses
Board Approval of Investment Advisory Contracts
Fidelity Mid-Cap Stock Fund
At its July 2018 meeting, the Board of Trustees, including the Independent Trustees (together, the Board), voted to continue the management contract with Fidelity Management & Research Company (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund for six months through January 31, 2019, in connection with the reunification of the Fidelity Equity High Income Funds Board, which oversees the fund, and the Sector Portfolios Board.
The Board considered that the approval of the fund's Advisory Contracts will not result in any changes in (i) the investment process or strategies employed in the management of the fund's assets; (ii) the fees and expenses paid by shareholders; (iii) the nature, extent or quality of services provided under the fund's Advisory Contracts; or (iv) the day-to-day management of the fund or the persons primarily responsible for such management. The Board concluded that the fund's Advisory Contracts are fair and reasonable, and that the fund's Advisory Contracts should be renewed, without modification, through January 31, 2019, with the understanding that the Board will consider the annual renewal for a full one year period in January 2019.
In connection with its consideration of future renewals of the fund's Advisory Contracts, the Board will consider: (i) the nature, extent and quality of services provided to the fund, including shareholder and administrative services and investment performance; (ii) the competitiveness of the management fee and total expenses for the fund; (iii) the costs of the services and profitability, including the revenues earned and the expenses incurred in conducting the business of developing, marketing, distributing, managing, administering, and servicing the fund and its shareholders, to the extent applicable, as well as potential fall-out benefits from Fidelity's non-fund businesses; and (iv) whether there have been economies of scale in respect of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is the potential for realization of any further economies.
Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board ultimately concluded that the fund's management fee structure is fair and reasonable, and that the continuation of the fund's Advisory Contracts should be approved.
Nature, Extent, and Quality of Services Provided. The Board considered staffing as it relates to the fund, including the backgrounds of investment personnel of Fidelity and Geode, and also considered the fund's investment objective, strategies, and related investment philosophy. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups and with representatives of Geode. The Board considered the structure of the investment personnel compensation programs and whether the structures provide appropriate incentives to act in the best interests of the fund. Additionally, the Board considered the portfolio managers' investments, if any, in the funds that they manage.Resources Dedicated to Investment Management and Support Services. Shareholder and Administrative Services. 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 in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including: (i) continuing to dedicate additional resources to Fidelity's investment research process, which includes meetings with management of issuers of securities in which the funds invest, and to the support of the senior management team that oversees asset management; (ii) continuing efforts to enhance Fidelity's global research capabilities; (iii) launching new funds and making other enhancements to meet client needs; (iv) launching new share classes of existing funds; (v) eliminating purchase minimums and broadening eligibility requirements for certain funds and share classes; (vi) reducing management fees and total expenses for certain growth equity funds and index funds; (vii) lowering expense caps for certain existing funds and classes, and converting certain voluntary expense caps to contractual caps, to reduce expenses borne by shareholders; (viii) eliminating short-term redemption fees for funds that had such fees; (ix) rationalizing product lines and gaining increased efficiencies from fund mergers and share class consolidations; (x) continuing to develop, acquire and implement systems and technology to improve services to the funds and shareholders, strengthen information security, and increase efficiency; and (xi) continuing to implement enhancements to further strengthen Fidelity's product line to increase investors' probability of success in achieving their investment goals, including retirement income goals.Investment Performance. Based on its review, the Board concluded that the nature, extent, and quality of services provided to the fund under the Advisory Contracts should continue to benefit the shareholders of the fund.Costs of the Services and Profitability. The Board considered 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. The Board also considered the level of Fidelity's profits in respect of all the Fidelity funds.On an annual basis, Fidelity presents to the Board information about the profitability of its relationships with the fund. Fidelity calculates profitability information for each fund, as well as aggregate profitability information for groups of Fidelity funds and all Fidelity funds, using a series of detailed revenue and cost allocation methodologies which originate with the books and records of Fidelity on which Fidelity's audited financial statements are based. The Audit Committee of the Board reviews any significant changes from the prior year's methodologies.PricewaterhouseCoopers LLP (PwC), auditor to Fidelity and certain Fidelity funds, has been engaged annually by the Board as part of the Board's assessment of Fidelity's profitability analysis. PwC's engagement includes the review and assessment of the methodologies used by Fidelity in determining the revenues and expenses attributable to Fidelity's mutual fund business, and completion of agreed-upon procedures in respect of the mathematical accuracy of the fund profitability information and its conformity to established allocation methodologies. After considering PwC's reports issued under the engagement and information provided by Fidelity, the Board concluded that while other allocation methods may also be reasonable, Fidelity's profitability methodologies are reasonable in all material respects.The Board also reviewed Fidelity's non-fund businesses and potential indirect benefits such businesses may have received as a result of their association with Fidelity's mutual fund business (i.e., fall-out benefits) as well as cases where Fidelity's affiliates may benefit from the fund's business. The Board noted that changes to fall-out benefits year-over-year reflect business developments at Fidelity's various businesses.The Board considered the costs of the services provided by and the profits realized by Fidelity in connection with the operation of the fund and was satisfied that the profitability was not excessive.Economies of Scale. In order to develop fully the factual basis for consideration of the Fidelity funds' advisory contracts, the Board requested and received additional information on certain topics, including: (i) Fidelity's fund profitability methodology, profitability trends for certain funds, the allocation of various costs to different funds, and the impact of certain factors on fund profitability results; (ii) portfolio manager changes that have occurred during the past year and the amount of the investment that each portfolio manager has made in the Fidelity fund(s) that he or she manages; (iii) Fidelity's compensation structure for portfolio managers, research analysts, and other key personnel, including its effects on fund profitability, the rationale for the compensation structure, and the extent to which current market conditions have affected retention and recruitment; (iv) the arrangements with and compensation paid to certain fund sub-advisers on behalf of the Fidelity funds and the treatment of such compensation within Fidelity's fund profitability methodology; (v) the terms of Fidelity's voluntary expense limitation agreements; (vi) the methodology with respect to competitive fund data and peer group classifications; (vii) Fidelity's transfer agent fee, expense, and service structures for different funds and classes relative to competitive trends, and the impact of the increased use of omnibus accounts; (viii) new developments in the retail and institutional marketplaces and the competitive positioning of the funds relative to other investment products and services; (ix) the impact of recent changes to the money market fund landscape, including the full implementation of money market fund reform and rising interest rates, on Fidelity's money market funds; (x) the funds' share class structures and distribution channels; and (xi) explanations regarding the relative total expense ratios of certain funds and classes, total expense competitive trends and methodologies for total expense competitive comparisons, and actions that might be taken by Fidelity to reduce total expense ratios for certain classes. In addition, the Board considered its discussions with Fidelity throughout the year regarding enhanced information security initiatives and the funds' fair valuation policies.Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board concluded that the advisory and sub-advisory fee arrangements are fair and reasonable, and that the fund's Advisory Contracts should be renewed.Corporate Headquarters
245 Summer St.
Boston, MA 02210
www.fidelity.com
MCS-K-SANN-1218
1.863350.110
Fidelity® Large Cap Stock Fund Semi-Annual Report October 31, 2018 |
Contents
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2018 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-Q. Forms N-Q are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Investment Summary (Unaudited)
Top Ten Stocks as of October 31, 2018
% of fund's net assets | |
Microsoft Corp. | 4.6 |
Comcast Corp. Class A | 3.5 |
Exxon Mobil Corp. | 3.5 |
Bank of America Corp. | 3.3 |
Altria Group, Inc. | 2.9 |
JPMorgan Chase & Co. | 2.8 |
Apple, Inc. | 2.7 |
Wells Fargo & Co. | 2.1 |
Citigroup, Inc. | 2.1 |
Chevron Corp. | 1.9 |
29.4 |
Top Five Market Sectors as of October 31, 2018
% of fund's net assets | |
Financials | 20.1 |
Health Care | 16.0 |
Information Technology | 15.8 |
Energy | 12.7 |
Industrials | 9.7 |
Asset Allocation (% of fund's net assets)
As of October 31, 2018 * | ||
Stocks | 97.4% | |
Convertible Securities | 0.2% | |
Other Investments | 0.1% | |
Short-Term Investments and Net Other Assets (Liabilities) | 2.3% |
* Foreign investments - 13.1%
Schedule of Investments October 31, 2018 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.4% | |||
Shares | Value (000s) | ||
COMMUNICATION SERVICES - 8.2% | |||
Diversified Telecommunication Services - 1.3% | |||
AT&T, Inc. | 96,785 | $2,969 | |
Verizon Communications, Inc. | 634,334 | 36,214 | |
39,183 | |||
Entertainment - 1.3% | |||
The Walt Disney Co. | 215,565 | 24,753 | |
Viacom, Inc. Class B (non-vtg.) | 80,497 | 2,574 | |
Vivendi SA | 402,000 | 9,696 | |
37,023 | |||
Interactive Media & Services - 1.0% | |||
Alphabet, Inc.: | |||
Class A (a) | 13,238 | 14,437 | |
Class C (a) | 12,364 | 13,313 | |
Snap, Inc. Class A (a)(b) | 193,700 | 1,280 | |
29,030 | |||
Media - 4.6% | |||
Charter Communications, Inc. Class A (a) | 24,700 | 7,913 | |
Comcast Corp. Class A | 2,669,888 | 101,830 | |
Discovery Communications, Inc. Class A (a)(b) | 228,929 | 7,415 | |
Interpublic Group of Companies, Inc. | 548,913 | 12,713 | |
Omnicom Group, Inc. | 44,134 | 3,280 | |
133,151 | |||
TOTAL COMMUNICATION SERVICES | 238,387 | ||
CONSUMER DISCRETIONARY - 2.7% | |||
Auto Components - 0.0% | |||
Gentex Corp. | 37,100 | 781 | |
Distributors - 0.1% | |||
LKQ Corp. (a) | 64,000 | 1,745 | |
Hotels, Restaurants & Leisure - 0.0% | |||
Drive Shack, Inc. (a) | 171,394 | 915 | |
Household Durables - 0.2% | |||
Mohawk Industries, Inc. (a) | 28,700 | 3,580 | |
NVR, Inc. (a) | 630 | 1,411 | |
4,991 | |||
Multiline Retail - 0.4% | |||
Dollar Tree, Inc. (a) | 68,400 | 5,766 | |
Target Corp. | 80,772 | 6,755 | |
12,521 | |||
Specialty Retail - 2.0% | |||
L Brands, Inc. | 252,836 | 8,197 | |
Lowe's Companies, Inc. | 295,654 | 28,152 | |
Ross Stores, Inc. | 16,713 | 1,655 | |
Sally Beauty Holdings, Inc. (a) | 354,419 | 6,312 | |
TJX Companies, Inc. | 122,416 | 13,451 | |
57,767 | |||
TOTAL CONSUMER DISCRETIONARY | 78,720 | ||
CONSUMER STAPLES - 9.0% | |||
Beverages - 1.3% | |||
The Coca-Cola Co. | 777,696 | 37,236 | |
Food & Staples Retailing - 1.8% | |||
Walgreens Boots Alliance, Inc. | 108,300 | 8,639 | |
Walmart, Inc. | 434,861 | 43,608 | |
52,247 | |||
Food Products - 0.3% | |||
The Hershey Co. | 88,756 | 9,510 | |
Household Products - 1.5% | |||
Kimberly-Clark Corp. | 22,727 | 2,370 | |
Procter & Gamble Co. | 447,405 | 39,676 | |
Spectrum Brands Holdings, Inc. | 8,400 | 546 | |
42,592 | |||
Tobacco - 4.1% | |||
Altria Group, Inc. | 1,313,414 | 85,424 | |
British American Tobacco PLC sponsored ADR | 815,970 | 35,413 | |
120,837 | |||
TOTAL CONSUMER STAPLES | 262,422 | ||
ENERGY - 12.6% | |||
Energy Equipment & Services - 1.7% | |||
Baker Hughes, a GE Co. Class A | 470,993 | 12,571 | |
Ensco PLC Class A | 234,683 | 1,676 | |
National Oilwell Varco, Inc. | 297,021 | 10,930 | |
Oceaneering International, Inc. (a) | 329,784 | 6,246 | |
Schlumberger Ltd. | 185,300 | 9,508 | |
TechnipFMC PLC | 328,300 | 8,634 | |
Transocean Ltd. (United States) (a) | 54,600 | 601 | |
50,166 | |||
Oil, Gas & Consumable Fuels - 10.9% | |||
BP PLC sponsored ADR | 757,906 | 32,870 | |
Cabot Oil & Gas Corp. | 457,641 | 11,089 | |
Cenovus Energy, Inc. (Canada) | 4,667,900 | 39,500 | |
Chevron Corp. | 501,675 | 56,012 | |
Enterprise Products Partners LP | 10,441 | 280 | |
Equinor ASA sponsored ADR | 854,722 | 21,966 | |
Exxon Mobil Corp. | 1,256,687 | 100,133 | |
Hess Corp. | 10,722 | 615 | |
Imperial Oil Ltd. | 357,200 | 11,157 | |
Kosmos Energy Ltd. (a) | 1,191,200 | 7,731 | |
Legacy Reserves, Inc. (a) | 335,040 | 1,411 | |
Suncor Energy, Inc. | 621,300 | 20,841 | |
Teekay Offshore Partners LP | 481,176 | 1,049 | |
The Williams Companies, Inc. | 504,369 | 12,271 | |
316,925 | |||
TOTAL ENERGY | 367,091 | ||
FINANCIALS - 20.1% | |||
Banks - 13.2% | |||
Bank of America Corp. | 3,481,036 | 95,728 | |
BNP Paribas SA | 14,500 | 758 | |
Citigroup, Inc. | 917,351 | 60,050 | |
First Hawaiian, Inc. | 48,200 | 1,194 | |
JPMorgan Chase & Co. | 753,898 | 82,190 | |
M&T Bank Corp. | 24,100 | 3,986 | |
PNC Financial Services Group, Inc. | 203,274 | 26,119 | |
Standard Chartered PLC (United Kingdom) | 1,065 | 7 | |
SunTrust Banks, Inc. | 390,447 | 24,465 | |
U.S. Bancorp | 486,393 | 25,424 | |
Wells Fargo & Co. | 1,160,937 | 61,797 | |
381,718 | |||
Capital Markets - 4.6% | |||
Cboe Global Markets, Inc. | 36,800 | 4,153 | |
Charles Schwab Corp. | 352,736 | 16,311 | |
KKR & Co. LP | 496,167 | 11,734 | |
Morgan Stanley | 501,228 | 22,886 | |
Northern Trust Corp. | 373,269 | 35,113 | |
State Street Corp. | 615,483 | 42,314 | |
Virtu Financial, Inc. Class A | 44,400 | 1,053 | |
133,564 | |||
Diversified Financial Services - 0.1% | |||
KKR Renaissance Co-Invest LP unit (a)(c) | 12,717 | 4,169 | |
Insurance - 0.8% | |||
Chubb Ltd. | 47,600 | 5,946 | |
MetLife, Inc. | 294,673 | 12,138 | |
The Travelers Companies, Inc. | 33,400 | 4,179 | |
22,263 | |||
Thrifts & Mortgage Finance - 1.4% | |||
MGIC Investment Corp. (a) | 916,847 | 11,195 | |
Radian Group, Inc. | 1,561,053 | 29,957 | |
41,152 | |||
TOTAL FINANCIALS | 582,866 | ||
HEALTH CARE - 16.0% | |||
Biotechnology - 2.0% | |||
Alexion Pharmaceuticals, Inc. (a) | 196,433 | 22,014 | |
Alnylam Pharmaceuticals, Inc. (a) | 43,999 | 3,539 | |
Amgen, Inc. | 37,217 | 7,175 | |
AnaptysBio, Inc. (a) | 6,000 | 448 | |
Atara Biotherapeutics, Inc. (a) | 87,270 | 2,982 | |
Insmed, Inc. (a) | 186,004 | 2,716 | |
Intercept Pharmaceuticals, Inc. (a) | 147,344 | 14,146 | |
Mirati Therapeutics, Inc. (a) | 56,200 | 2,100 | |
Spark Therapeutics, Inc. (a) | 46,597 | 2,096 | |
TESARO, Inc. (a) | 14,877 | 430 | |
57,646 | |||
Health Care Equipment & Supplies - 2.0% | |||
Boston Scientific Corp. (a) | 1,168,543 | 42,231 | |
Danaher Corp. | 102,358 | 10,174 | |
Zimmer Biomet Holdings, Inc. | 35,903 | 4,078 | |
56,483 | |||
Health Care Providers & Services - 6.2% | |||
AmerisourceBergen Corp. | 207,703 | 18,278 | |
Anthem, Inc. | 54,064 | 14,898 | |
Cardinal Health, Inc. | 393,654 | 19,919 | |
Cigna Corp. | 122,470 | 26,185 | |
CVS Health Corp. | 688,705 | 49,855 | |
Henry Schein, Inc. (a) | 7,400 | 614 | |
Humana, Inc. | 21,349 | 6,840 | |
McKesson Corp. | 232,135 | 28,961 | |
MEDNAX, Inc. (a) | 26,200 | 1,082 | |
UnitedHealth Group, Inc. | 48,424 | 12,656 | |
179,288 | |||
Health Care Technology - 0.0% | |||
Castlight Health, Inc. Class B (a) | 532,469 | 1,315 | |
Pharmaceuticals - 5.8% | |||
Allergan PLC | 23,538 | 3,719 | |
AstraZeneca PLC sponsored ADR | 171,020 | 6,632 | |
Bayer AG | 287,342 | 22,025 | |
Eli Lilly & Co. | 39,600 | 4,294 | |
GlaxoSmithKline PLC sponsored ADR | 1,196,516 | 46,736 | |
Jazz Pharmaceuticals PLC (a) | 108,988 | 17,309 | |
Johnson & Johnson | 279,951 | 39,190 | |
Perrigo Co. PLC | 39,800 | 2,798 | |
Sanofi SA | 59,558 | 5,322 | |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 610,629 | 12,200 | |
The Medicines Company (a) | 15,300 | 356 | |
TherapeuticsMD, Inc. (a)(b) | 1,755,110 | 8,582 | |
169,163 | |||
TOTAL HEALTH CARE | 463,895 | ||
INDUSTRIALS - 9.7% | |||
Aerospace & Defense - 1.7% | |||
General Dynamics Corp. | 47,880 | 8,263 | |
Huntington Ingalls Industries, Inc. | 3,900 | 852 | |
United Technologies Corp. | 335,527 | 41,676 | |
50,791 | |||
Air Freight & Logistics - 1.8% | |||
C.H. Robinson Worldwide, Inc. | 81,880 | 7,290 | |
FedEx Corp. | 20,990 | 4,625 | |
United Parcel Service, Inc. Class B | 379,546 | 40,437 | |
52,352 | |||
Building Products - 0.0% | |||
A.O. Smith Corp. | 13,100 | 596 | |
Commercial Services & Supplies - 0.2% | |||
ADS Waste Holdings, Inc. (a) | 93,474 | 2,532 | |
Stericycle, Inc. (a) | 53,462 | 2,671 | |
5,203 | |||
Electrical Equipment - 0.6% | |||
Acuity Brands, Inc. | 97,272 | 12,221 | |
Hubbell, Inc. Class B | 46,703 | 4,750 | |
Melrose Industries PLC | 453,180 | 977 | |
17,948 | |||
Industrial Conglomerates - 1.7% | |||
3M Co. | 4,600 | 875 | |
General Electric Co. | 4,777,343 | 48,251 | |
49,126 | |||
Machinery - 0.8% | |||
Flowserve Corp. | 374,327 | 17,182 | |
Wabtec Corp. | 74,071 | 6,075 | |
23,257 | |||
Professional Services - 0.3% | |||
Acacia Research Corp. (a) | 24,000 | 79 | |
IHS Markit Ltd. (a) | 140,454 | 7,378 | |
7,457 | |||
Road & Rail - 2.5% | |||
CSX Corp. | 105,116 | 7,238 | |
J.B. Hunt Transport Services, Inc. | 151,364 | 16,742 | |
Knight-Swift Transportation Holdings, Inc. Class A | 258,500 | 8,272 | |
Norfolk Southern Corp. | 90,094 | 15,120 | |
Union Pacific Corp. | 178,396 | 26,085 | |
73,457 | |||
Trading Companies & Distributors - 0.1% | |||
Fastenal Co. | 41,492 | 2,133 | |
TOTAL INDUSTRIALS | 282,320 | ||
INFORMATION TECHNOLOGY - 15.6% | |||
Communications Equipment - 0.9% | |||
Cisco Systems, Inc. | 557,145 | 25,489 | |
Electronic Equipment & Components - 0.1% | |||
Itron, Inc. (a) | 76,418 | 3,984 | |
IT Services - 3.5% | |||
IBM Corp. | 22,914 | 2,645 | |
Interxion Holding N.V. (a) | 73,869 | 4,349 | |
MasterCard, Inc. Class A | 90,737 | 17,936 | |
Paychex, Inc. | 321,082 | 21,028 | |
Unisys Corp. (a) | 421,429 | 7,759 | |
Visa, Inc. Class A | 335,255 | 46,215 | |
99,932 | |||
Semiconductors & Semiconductor Equipment - 2.0% | |||
Analog Devices, Inc. | 26,191 | 2,192 | |
Applied Materials, Inc. | 232,900 | 7,658 | |
Lam Research Corp. | 29,700 | 4,209 | |
Qualcomm, Inc. | 703,065 | 44,216 | |
58,275 | |||
Software - 6.3% | |||
Micro Focus International PLC | 65,800 | 1,020 | |
Microsoft Corp. | 1,246,016 | 133,097 | |
Oracle Corp. | 645,300 | 31,516 | |
SAP SE sponsored ADR | 155,004 | 16,626 | |
Ultimate Software Group, Inc. (a) | 5,825 | 1,553 | |
183,812 | |||
Technology Hardware, Storage & Peripherals - 2.8% | |||
Apple, Inc. | 352,091 | 77,059 | |
Western Digital Corp. | 99,500 | 4,285 | |
81,344 | |||
TOTAL INFORMATION TECHNOLOGY | 452,836 | ||
MATERIALS - 1.8% | |||
Chemicals - 1.7% | |||
CF Industries Holdings, Inc. | 114,433 | 5,496 | |
DowDuPont, Inc. | 51,600 | 2,782 | |
International Flavors & Fragrances, Inc. | 32,400 | 4,687 | |
Intrepid Potash, Inc. (a) | 1,293,189 | 5,108 | |
LyondellBasell Industries NV Class A | 99,262 | 8,861 | |
Nutrien Ltd. | 304,340 | 16,111 | |
The Scotts Miracle-Gro Co. Class A | 34,864 | 2,327 | |
W.R. Grace & Co. | 62,266 | 4,034 | |
49,406 | |||
Metals & Mining - 0.1% | |||
Lundin Mining Corp. | 663,800 | 2,728 | |
TOTAL MATERIALS | 52,134 | ||
REAL ESTATE - 0.6% | |||
Equity Real Estate Investment Trusts (REITs) - 0.6% | |||
American Tower Corp. | 34,084 | 5,311 | |
Equinix, Inc. | 19,128 | 7,245 | |
Public Storage | 18,571 | 3,816 | |
Simon Property Group, Inc. | 5,300 | 973 | |
17,345 | |||
UTILITIES - 1.1% | |||
Electric Utilities - 1.0% | |||
Duke Energy Corp. | 28,100 | 2,322 | |
Exelon Corp. | 336,277 | 14,732 | |
PPL Corp. | 157,769 | 4,796 | |
Southern Co. | 75,839 | 3,415 | |
Vistra Energy Corp. (a) | 175,999 | 3,983 | |
29,248 | |||
Multi-Utilities - 0.1% | |||
Sempra Energy | 12,700 | 1,399 | |
TOTAL UTILITIES | 30,647 | ||
TOTAL COMMON STOCKS | |||
(Cost $2,490,658) | 2,828,663 | ||
Convertible Preferred Stocks - 0.2% | |||
INFORMATION TECHNOLOGY - 0.2% | |||
Internet Software & Services - 0.2% | |||
Lyft, Inc. Series I (c)(d) | |||
(Cost $5,926) | 125,143 | 5,926 | |
Other - 0.1% | |||
Energy - 0.1% | |||
Oil, Gas & Consumable Fuels - 0.1% | |||
Utica Shale Drilling Program (non-operating revenue interest) (c)(d)(e) | |||
(Cost $6,968) | 6,967,758 | 3,333 | |
Money Market Funds - 2.4% | |||
Fidelity Cash Central Fund, 2.23% (f) | 52,403,445 | 52,414 | |
Fidelity Securities Lending Cash Central Fund 2.23% (f)(g) | 15,923,772 | 15,925 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $68,339) | 68,339 | ||
TOTAL INVESTMENT IN SECURITIES - 100.1% | |||
(Cost $2,571,891) | 2,906,261 | ||
NET OTHER ASSETS (LIABILITIES) - (0.1)% | (3,710) | ||
NET ASSETS - 100% | $2,902,551 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $13,427,000 or 0.5% of net assets.
(d) Level 3 security
(e) Investment is owned by a wholly-owned subsidiary (Subsidiary) that is treated as a corporation for U.S. tax purposes.
(f) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
(g) Investment made with cash collateral received from securities on loan.
Additional information on each restricted holding is as follows:
Security | Acquisition Date | Acquisition Cost (000s) |
KKR Renaissance Co-Invest LP unit | 7/25/13 | $1,342 |
Lyft, Inc. Series I | 6/27/18 | $5,926 |
Utica Shale Drilling Program (non-operating revenue interest) | 10/5/16 - 9/1/17 | $6,968 |
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 | $288 |
Fidelity Securities Lending Cash Central Fund | 222 |
Total | $510 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations if applicable.
Investment Valuation
The following is a summary of the inputs used, as of October 31, 2018, 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 | $238,387 | $228,691 | $9,696 | $-- |
Consumer Discretionary | 78,720 | 78,720 | -- | -- |
Consumer Staples | 262,422 | 262,422 | -- | -- |
Energy | 367,091 | 367,091 | -- | -- |
Financials | 582,866 | 578,697 | 4,169 | -- |
Health Care | 463,895 | 436,548 | 27,347 | -- |
Industrials | 282,320 | 282,320 | -- | -- |
Information Technology | 458,762 | 451,816 | 1,020 | 5,926 |
Materials | 52,134 | 52,134 | -- | -- |
Real Estate | 17,345 | 17,345 | -- | -- |
Utilities | 30,647 | 30,647 | -- | -- |
Other | 3,333 | -- | -- | 3,333 |
Money Market Funds | 68,339 | 68,339 | -- | -- |
Total Investments in Securities: | $2,906,261 | $2,854,770 | $42,232 | $9,259 |
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
United States of America | 86.9% |
United Kingdom | 4.5% |
Canada | 3.1% |
Germany | 1.4% |
Others (Individually Less Than 1%) | 4.1% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amount) | October 31, 2018 (Unaudited) | |
Assets | ||
Investment in securities, at value (including securities loaned of $15,349) — See accompanying schedule: Unaffiliated issuers (cost $2,503,552) | $2,837,922 | |
Fidelity Central Funds (cost $68,339) | 68,339 | |
Total Investment in Securities (cost $2,571,891) | $2,906,261 | |
Restricted cash | 116 | |
Receivable for investments sold | 13,109 | |
Receivable for fund shares sold | 13,116 | |
Dividends receivable | 2,392 | |
Distributions receivable from Fidelity Central Funds | 111 | |
Prepaid expenses | 6 | |
Other receivables | 109 | |
Total assets | 2,935,220 | |
Liabilities | ||
Payable to custodian bank | $864 | |
Payable for investments purchased | 11,722 | |
Payable for fund shares redeemed | 2,351 | |
Accrued management fee | 1,245 | |
Other affiliated payables | 496 | |
Other payables and accrued expenses | 60 | |
Collateral on securities loaned | 15,931 | |
Total liabilities | 32,669 | |
Net Assets | $2,902,551 | |
Net Assets consist of: | ||
Paid in capital | $2,337,223 | |
Total distributable earnings (loss) | 565,328 | |
Net Assets, for 90,064 shares outstanding | $2,902,551 | |
Net Asset Value, offering price and redemption price per share ($2,902,551 ÷ 90,064 shares) | $32.23 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Amounts in thousands | Six months ended October 31, 2018 (Unaudited) | |
Investment Income | ||
Dividends | $35,653 | |
Income from Fidelity Central Funds | 510 | |
Total income | 36,163 | |
Expenses | ||
Management fee | ||
Basic fee | $8,323 | |
Performance adjustment | (2,096) | |
Transfer agent fees | 2,367 | |
Accounting and security lending fees | 454 | |
Custodian fees and expenses | 39 | |
Independent trustees' fees and expenses | 11 | |
Registration fees | 51 | |
Audit | 28 | |
Legal | 8 | |
Interest | 8 | |
Miscellaneous | 16 | |
Total expenses before reductions | 9,209 | |
Expense reductions | (229) | |
Total expenses after reductions | 8,980 | |
Net investment income (loss) | 27,183 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 146,872 | |
Redemptions in-kind with affiliated entities | 77,760 | |
Fidelity Central Funds | (1) | |
Foreign currency transactions | (19) | |
Total net realized gain (loss) | 224,612 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | (139,466) | |
Assets and liabilities in foreign currencies | 8 | |
Total change in net unrealized appreciation (depreciation) | (139,458) | |
Net gain (loss) | 85,154 | |
Net increase (decrease) in net assets resulting from operations | $112,337 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Amounts in thousands | Six months ended October 31, 2018 (Unaudited) | Year ended April 30, 2018 |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $27,183 | $72,749 |
Net realized gain (loss) | 224,612 | 768,160 |
Change in net unrealized appreciation (depreciation) | (139,458) | (303,300) |
Net increase (decrease) in net assets resulting from operations | 112,337 | 537,609 |
Distributions to shareholders | (161,374) | – |
Distributions to shareholders from net investment income | – | (59,615) |
Distributions to shareholders from net realized gain | – | (121,639) |
Total distributions | (161,374) | (181,254) |
Share transactions | ||
Proceeds from sales of shares | 333,619 | 3,709,467 |
Reinvestment of distributions | 141,558 | 172,362 |
Cost of shares redeemed | (1,387,982) | (5,029,558) |
Net increase (decrease) in net assets resulting from share transactions | (912,805) | (1,147,729) |
Total increase (decrease) in net assets | (961,842) | (791,374) |
Net Assets | ||
Beginning of period | 3,864,393 | 4,655,767 |
End of period | $2,902,551 | $3,864,393 |
Other Information | ||
Undistributed net investment income end of period | $7,335 | |
Shares | ||
Sold | 10,011 | 113,746 |
Issued in reinvestment of distributions | 4,329 | 5,376 |
Redeemed | (41,303) | (153,033) |
Net increase (decrease) | (26,963) | (33,911) |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Large Cap Stock Fund
Six months ended (Unaudited) October 31, | Years endedApril 30, | |||||
2018 | 2018 | 2017 | 2016 | 2015 | 2014 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $33.02 | $30.85 | $26.62 | $29.28 | $27.76 | $23.17 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .29 | .47 | .38 | .37 | .31 | .28 |
Net realized and unrealized gain (loss) | .77 | 2.87 | 4.91 | (1.74) | 2.92 | 5.48 |
Total from investment operations | 1.06 | 3.34 | 5.29 | (1.37) | 3.23 | 5.76 |
Distributions from net investment income | (.20) | (.38) | (.41) | (.32) | (.27) | (.21) |
Distributions from net realized gain | (1.65) | (.79) | (.65) | (.97) | (1.44) | (.96) |
Total distributions | (1.85) | (1.17) | (1.06) | (1.29) | (1.71) | (1.17) |
Net asset value, end of period | $32.23 | $33.02 | $30.85 | $26.62 | $29.28 | $27.76 |
Total ReturnB,C | 3.13% | 10.96% | 20.37% | (4.82)% | 11.97% | 25.53% |
Ratios to Average Net AssetsD,E | ||||||
Expenses before reductions | .59%F | .67% | .62% | .78% | .88% | .88% |
Expenses net of fee waivers, if any | .59%F | .67% | .62% | .77% | .88% | .88% |
Expenses net of all reductions | .58%F | .66% | .62% | .77% | .88% | .88% |
Net investment income (loss) | 1.76%F | 1.44% | 1.33% | 1.38% | 1.10% | 1.08% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $2,903 | $3,864 | $4,656 | $2,580 | $3,207 | $2,796 |
Portfolio turnover rateG | 35%F,H | 40%H | 32% | 31% | 36%H | 31% |
A Calculated based on average shares outstanding during the period.
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
E Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
F Annualized
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended October 31, 2018
(Amounts in thousands except percentages)
1. Organization.
Fidelity Large Cap Stock Fund (the Fund) is a fund of Fidelity Concord Street 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.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – 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. Utilizing these techniques may result in transfers between Level 1 and Level 2. 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 October 31, 2018 is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. Investment Income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. 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, deferred trustees expense, redemptions in kind 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 | $535,375 |
Gross unrealized depreciation | (217,949) |
Net unrealized appreciation (depreciation) | $317,426 |
Tax cost | $2,588,835 |
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 $3,449 in this Subsidiary, representing .12% of the Fund's net assets. The financial statements have been consolidated and include accounts of the Fund and the Subsidiary. Accordingly, all inter-company transactions and balances have been eliminated.
Any cash held by the Subsidiary is restricted as to its use and is presented as Restricted cash in the Statement of Assets and Liabilities.
New Rule Issuance. During August 2018, the U.S. Securities and Exchange Commission issued Final Rule Release No. 33-10532, Disclosure Update and Simplification. This Final Rule includes amendments specific to registered investment companies that are intended to eliminate overlap in disclosure requirements between Regulation S-X and GAAP. In accordance with these amendments, certain line-items in the Fund's financial statements have been combined or removed for the current period as outlined in the table below.
Financial Statement | Current Line-Item Presentation | Prior Line-Item Presentation |
Statement of Assets and Liabilities | Total distributable earnings (loss) | Undistributed/Distributions in excess of/Accumulated net investment income (loss) Accumulated/Undistributed net realized gain (loss) Net unrealized appreciation (depreciation) |
Statement of Changes in Net Assets | N/A – removed | Undistributed/Distributions in excess of/Accumulated net investment income (loss) end of period |
Statement of Changes in Net Assets | Distributions to shareholders | Distributions to shareholders from net investment income Distributions to shareholders from net realized gain |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and in-kind transactions, aggregated $546,150 and $1,290,736, respectively.
Prior Fiscal Year Redemptions In-Kind. During the prior period, 1,511 shares of the Fund held by an unaffiliated entity were redeemed in-kind for investments and cash with a value of $49,745. The Fund had a net realized gain of $20,788 on investments delivered through the in-kind redemptions. The amount of the redemptions is included in share transactions activity shown in the accompanying Statement of Changes in Net Assets as well as the Notes to Financial Statements. The Fund recognized no gain or loss for federal income tax purposes.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .24% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of +/- .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the Fund's relative investment performance as compared to its benchmark index, the S&P 500 Index, over the same 36 month performance period. For the reporting period, the total annualized management fee rate, including the performance adjustment, was .40% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of the investment adviser, is the Fund's transfer, dividend disbursing and shareholder servicing agent. FIIOC receives account fees and asset-based fees that vary according to account size and type of account. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the transfer agent fees were equivalent to an annualized rate of .15% of average net assets.
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions. For the period, the fees were equivalent to an annualized rate of .03%.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $15 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with Fidelity Management & Research Company (FMR) or other affiliated entities of FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Loan Balance | Weighted Average Interest Rate | Interest Expense |
Borrower | $12,517 | 1.98% | $8 |
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.
Redemptions In-Kind. During the period, 7,586 shares of the Fund held by an affiliated entity were redeemed in-kind for investments and cash with a value of $257,324. The net realized gain of $77,760 on investments delivered through in-kind redemptions is included in the accompanying Statement of Operations. The amount of the in-kind redemptions is included in share transactions in the accompanying Statement of Changes in Net Assets. The Fund recognized no gain or loss for federal income tax purposes.
Prior Fiscal Year Redemptions In-Kind. During the prior period, 39,788 shares of the Fund held by an affiliated entity were redeemed in-kind for investments and cash, with a value of $1,317,084. The Fund had a net realized gain of $469,876 on investments delivered through in-kind redemptions. The amount of the in-kind redemptions is included in share transactions in the accompanying Statement of Changes in Net Assets as well as the Notes to Financial Statements. The Fund recognized no gain or loss for federal income tax purposes.
Other. During the period, the investment adviser reimbursed the Fund for certain losses in the amount of $199.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $5 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. The value of securities loaned to FCM at period end was $5,465. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $222, including $46 from securities loaned to FCM.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $200 for the period. Through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $3.
In addition, during the period the investment adviser reimbursed and/or waived a portion of operating expenses in the amount of $26.
9. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
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 (May 1, 2018 to October 31, 2018).
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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee, which was eliminated effective August 1, 2018, is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee, which was eliminated effective August 1, 2018, is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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 May 1, 2018 | Ending Account Value October 31, 2018 | Expenses Paid During Period-B May 1, 2018 to October 31, 2018 | |
Actual | .59% | $1,000.00 | $1,031.30 | $3.02 |
Hypothetical-C | $1,000.00 | $1,022.23 | $3.01 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to the 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).
C 5% return per year before expenses
Board Approval of Investment Advisory Contracts
Fidelity Large Cap Stock Fund
At its July 2018 meeting, the Board of Trustees, including the Independent Trustees (together, the Board), voted to continue the management contract with Fidelity Management & Research Company (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund for six months through January 31, 2019, in connection with the reunification of the Fidelity Equity High Income Funds Board, which oversees the fund, and the Sector Portfolios Board.
The Board considered that the approval of the fund's Advisory Contracts will not result in any changes in (i) the investment process or strategies employed in the management of the fund's assets; (ii) the fees and expenses paid by shareholders; (iii) the nature, extent or quality of services provided under the fund's Advisory Contracts; or (iv) the day-to-day management of the fund or the persons primarily responsible for such management. The Board concluded that the fund's Advisory Contracts are fair and reasonable, and that the fund's Advisory Contracts should be renewed, without modification, through January 31, 2019, with the understanding that the Board will consider the annual renewal for a full one year period in January 2019.
In connection with its consideration of future renewals of the fund's Advisory Contracts, the Board will consider: (i) the nature, extent and quality of services provided to the fund, including shareholder and administrative services and investment performance; (ii) the competitiveness of the management fee and total expenses for the fund; (iii) the costs of the services and profitability, including the revenues earned and the expenses incurred in conducting the business of developing, marketing, distributing, managing, administering, and servicing the fund and its shareholders, to the extent applicable, as well as potential fall-out benefits from Fidelity's non-fund businesses; and (iv) whether there have been economies of scale in respect of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is the potential for realization of any further economies.
Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board ultimately concluded that the fund's management fee structure is fair and reasonable, and that the continuation of the fund's Advisory Contracts should be approved.
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1.465347.121
Fidelity® Small Cap Stock Fund Semi-Annual Report October 31, 2018 |
Contents
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2018 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-Q. Forms N-Q are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Investment Summary (Unaudited)
Top Ten Stocks as of October 31, 2018
% of fund's net assets | |
NICE Systems Ltd. sponsored ADR | 2.6 |
CBIZ, Inc. | 2.4 |
Insperity, Inc. | 2.0 |
Allison Transmission Holdings, Inc. | 2.0 |
Primerica, Inc. | 1.9 |
Ebix, Inc. | 1.9 |
Stamps.com, Inc. | 1.9 |
SYNNEX Corp. | 1.9 |
Cable One, Inc. | 1.9 |
Charles River Laboratories International, Inc. | 1.9 |
20.4 |
Top Five Market Sectors as of October 31, 2018
% of fund's net assets | |
Financials | 17.9 |
Information Technology | 16.9 |
Industrials | 16.3 |
Consumer Discretionary | 16.1 |
Health Care | 15.9 |
Asset Allocation (% of fund's net assets)
As of October 31, 2018 * | ||
Stocks | 99.5% | |
Short-Term Investments and Net Other Assets (Liabilities) | 0.5% |
* Foreign investments - 20.7%
Schedule of Investments October 31, 2018 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.5% | |||
Shares | Value (000s) | ||
COMMUNICATION SERVICES - 2.3% | |||
Interactive Media & Services - 0.2% | |||
Mitula Group Ltd. (a) | 5,324,265 | $2,564 | |
Media - 2.1% | |||
Cable One, Inc. | 30,612 | 27,420 | |
comScore, Inc. (a) | 226,203 | 3,608 | |
31,028 | |||
TOTAL COMMUNICATION SERVICES | 33,592 | ||
CONSUMER DISCRETIONARY - 16.1% | |||
Distributors - 0.3% | |||
Educational Development Corp. | 312,990 | 3,834 | |
Diversified Consumer Services - 3.0% | |||
Arco Platform Ltd. Class A | 13,500 | 288 | |
Career Education Corp. (a) | 1,690,451 | 24,309 | |
Collectors Universe, Inc. | 403,164 | 5,806 | |
Laureate Education, Inc. Class A (a) | 1,014,643 | 15,108 | |
45,511 | |||
Hotels, Restaurants & Leisure - 2.7% | |||
Choice Hotels International, Inc. | 185,000 | 13,579 | |
MTY Food Group, Inc. | 519,400 | 26,798 | |
40,377 | |||
Household Durables - 6.1% | |||
Cavco Industries, Inc. (a) | 86,627 | 17,378 | |
Helen of Troy Ltd. (a) | 174,064 | 21,605 | |
LGI Homes, Inc. (a)(b) | 396,875 | 16,982 | |
New Home Co. LLC (a) | 1,020,452 | 7,276 | |
Skyline Champion Corp. | 207,834 | 4,953 | |
TRI Pointe Homes, Inc. (a) | 1,832,543 | 21,807 | |
90,001 | |||
Internet & Direct Marketing Retail - 3.1% | |||
Duluth Holdings, Inc. (a)(b) | 453,065 | 13,923 | |
Kogan.Com Ltd. (b) | 315,000 | 631 | |
Points International Ltd. (a) | 257,769 | 3,212 | |
Stamps.com, Inc. (a) | 139,497 | 28,202 | |
45,968 | |||
Specialty Retail - 0.9% | |||
Boot Barn Holdings, Inc. (a) | 262,000 | 6,466 | |
Winmark Corp. | 41,493 | 6,377 | |
12,843 | |||
TOTAL CONSUMER DISCRETIONARY | 238,534 | ||
CONSUMER STAPLES - 3.7% | |||
Beverages - 1.7% | |||
National Beverage Corp. (a)(b) | 263,000 | 24,314 | |
Nichols PLC | 31,345 | 539 | |
24,853 | |||
Food & Staples Retailing - 1.8% | |||
BJ's Wholesale Club Holdings, Inc. | 233,300 | 5,168 | |
Performance Food Group Co. (a) | 387,771 | 11,369 | |
Smart & Final Stores, Inc. (a) | 2,107,562 | 10,643 | |
27,180 | |||
Food Products - 0.0% | |||
Armanino Foods of Distinction | 380,830 | 1,066 | |
Personal Products - 0.2% | |||
BWX Ltd. (b) | 1,526,042 | 2,745 | |
TOTAL CONSUMER STAPLES | 55,844 | ||
ENERGY - 3.8% | |||
Energy Equipment & Services - 1.3% | |||
Dril-Quip, Inc. (a) | 379,827 | 16,165 | |
Profire Energy, Inc. (a) | 1,415,716 | 3,228 | |
RigNet, Inc. (a) | 8,719 | 149 | |
19,542 | |||
Oil, Gas & Consumable Fuels - 2.5% | |||
Midstates Petroleum Co., Inc. (a) | 804,225 | 5,798 | |
Murphy Oil Corp. | 535,077 | 17,048 | |
World Fuel Services Corp. | 430,268 | 13,769 | |
36,615 | |||
TOTAL ENERGY | 56,157 | ||
FINANCIALS - 17.9% | |||
Banks - 3.9% | |||
Bank of the Ozarks, Inc. | 486,221 | 13,303 | |
Camden National Corp. | 193,778 | 7,858 | |
First Citizen Bancshares, Inc. | 10,017 | 4,274 | |
First Hawaiian, Inc. | 380,000 | 9,416 | |
Hilltop Holdings, Inc. | 384,614 | 7,654 | |
Plumas Bancorp | 68,046 | 1,762 | |
Popular, Inc. | 211,148 | 10,982 | |
West Bancorp., Inc. | 141,413 | 3,110 | |
58,359 | |||
Capital Markets - 4.4% | |||
Ashford, Inc. | 101,521 | 6,400 | |
FactSet Research Systems, Inc. | 36,892 | 8,255 | |
INTL FCStone, Inc. (a) | 459,363 | 20,800 | |
Morningstar, Inc. | 211,577 | 26,405 | |
OM Asset Management Ltd. | 312,211 | 3,559 | |
65,419 | |||
Consumer Finance - 2.1% | |||
Encore Capital Group, Inc. (a)(b) | 597,754 | 15,189 | |
First Cash Financial Services, Inc. | 191,758 | 15,417 | |
30,606 | |||
Diversified Financial Services - 0.6% | |||
Cannae Holdings, Inc. (a) | 502,236 | 9,276 | |
Insurance - 3.1% | |||
First American Financial Corp. | 287,862 | 12,761 | |
Investors Title Co. | 20,275 | 3,690 | |
Primerica, Inc. | 263,216 | 28,885 | |
45,336 | |||
Real Estate Management & Development - 1.3% | |||
The RMR Group, Inc. | 252,062 | 19,126 | |
Thrifts & Mortgage Finance - 2.5% | |||
Essent Group Ltd. (a) | 391,911 | 15,449 | |
Home Bancorp, Inc. | 32,666 | 1,298 | |
LendingTree, Inc. (a)(b) | 74,000 | 14,925 | |
Southern Missouri Bancorp, Inc. | 71,943 | 2,422 | |
Timberland Bancorp, Inc. | 122,381 | 3,551 | |
37,645 | |||
TOTAL FINANCIALS | 265,767 | ||
HEALTH CARE - 15.9% | |||
Biotechnology - 0.5% | |||
BioGaia AB | 18,500 | 749 | |
Bioventix PLC | 19,000 | 692 | |
Essex Bio-Technology Ltd. | 2,690,000 | 1,749 | |
Ligand Pharmaceuticals, Inc. Class B (a) | 11,000 | 1,813 | |
Shanghai Haohai Biological Technology Co. Ltd. Class H | 415,000 | 2,170 | |
7,173 | |||
Health Care Equipment & Supplies - 3.6% | |||
Boule Diagnostics AB | 17,838 | 140 | |
Hamilton Thorne Ltd. (a) | 89,600 | 68 | |
Kewaunee Scientific Corp. | 23,071 | 660 | |
LivaNova PLC (a) | 205,151 | 22,975 | |
Utah Medical Products, Inc. | 83,484 | 7,278 | |
Varex Imaging Corp. (a) | 841,290 | 21,840 | |
52,961 | |||
Health Care Providers & Services - 5.2% | |||
Chemed Corp. | 36,950 | 11,245 | |
Guardant Health, Inc. | 10,600 | 355 | |
HealthSouth Corp. | 308,728 | 20,777 | |
Magellan Health Services, Inc. (a) | 144,851 | 9,424 | |
MEDNAX, Inc. (a) | 459,736 | 18,982 | |
Ship Healthcare Holdings, Inc. | 357,900 | 12,957 | |
Viemed Healthcare, Inc. (a) | 753,800 | 4,209 | |
77,949 | |||
Health Care Technology - 1.5% | |||
Cegedim SA (a) | 2,554 | 64 | |
Inovalon Holdings, Inc. Class A (a)(b) | 2,381,922 | 22,414 | |
22,478 | |||
Life Sciences Tools & Services - 3.3% | |||
Charles River Laboratories International, Inc. (a) | 223,824 | 27,266 | |
ICON PLC (a) | 154,036 | 21,269 | |
48,535 | |||
Pharmaceuticals - 1.8% | |||
Alliance Pharma PLC | 15,282,511 | 13,049 | |
BioSyent, Inc. (a) | 658,308 | 4,666 | |
Dechra Pharmaceuticals PLC | 248,729 | 7,268 | |
Mallinckrodt PLC (a) | 85,000 | 2,130 | |
27,113 | |||
TOTAL HEALTH CARE | 236,209 | ||
INDUSTRIALS - 16.3% | |||
Building Products - 2.0% | |||
Continental Building Products, Inc. (a) | 617,151 | 17,163 | |
Reliance Worldwide Corp. Ltd. | 45,438 | 161 | |
Universal Forest Products, Inc. | 410,932 | 11,617 | |
28,941 | |||
Commercial Services & Supplies - 2.3% | |||
Boyd Group Income Fund | 226,000 | 20,654 | |
Loomis AB (B Shares) | 337,467 | 10,436 | |
VSE Corp. | 103,541 | 3,247 | |
34,337 | |||
Construction & Engineering - 1.1% | |||
AECOM (a) | 539,432 | 15,719 | |
Machinery - 4.5% | |||
AGCO Corp. | 273,000 | 15,299 | |
Allison Transmission Holdings, Inc. | 675,709 | 29,785 | |
L.B. Foster Co. Class A (a) | 165,672 | 3,012 | |
Middleby Corp. (a)(b) | 169,598 | 19,046 | |
67,142 | |||
Professional Services - 5.5% | |||
Asiakastieto Group Oyj (c) | 31,000 | 1,018 | |
Barrett Business Services, Inc. | 124,900 | 7,859 | |
CBIZ, Inc. (a) | 1,611,445 | 35,742 | |
Franklin Covey Co. (a) | 213,308 | 4,765 | |
Insperity, Inc. | 272,400 | 29,923 | |
TriNet Group, Inc. (a) | 62,058 | 2,916 | |
82,223 | |||
Trading Companies & Distributors - 0.6% | |||
Textainer Group Holdings Ltd. (a) | 752,153 | 8,823 | |
Transportation Infrastructure - 0.3% | |||
Macquarie Infrastructure Co. LLC | 137,500 | 5,081 | |
TOTAL INDUSTRIALS | 242,266 | ||
INFORMATION TECHNOLOGY - 16.9% | |||
Electronic Equipment & Components - 1.9% | |||
SYNNEX Corp. | 356,126 | 27,639 | |
Internet Software & Services - 0.3% | |||
MSL Solutions Ltd. (a) | 5,025,698 | 641 | |
Scout24 AG (c) | 84,000 | 3,488 | |
4,129 | |||
IT Services - 6.5% | |||
Cass Information Systems, Inc. | 136,891 | 9,048 | |
Computer Services, Inc. | 91,122 | 4,562 | |
CoreLogic, Inc. (a) | 592,719 | 24,076 | |
Elastic NV | 1,500 | 102 | |
EVO Payments, Inc. Class A | 29,000 | 688 | |
Hackett Group, Inc. | 544,514 | 11,146 | |
Netcompany Group A/S | 23,200 | 767 | |
Presidio, Inc. | 825,726 | 11,065 | |
Prodware | 127,829 | 1,412 | |
Sylogist Ltd. | 678,400 | 6,957 | |
WEX, Inc. (a) | 149,219 | 26,257 | |
96,080 | |||
Software - 8.2% | |||
Cardlytics, Inc. (a) | 135,819 | 2,874 | |
Ceridian HCM Holding, Inc. (b) | 5,500 | 209 | |
CyberArk Software Ltd. (a) | 19,500 | 1,331 | |
Ebix, Inc. (b) | 492,731 | 28,238 | |
Enghouse Systems Ltd. | 160,400 | 8,877 | |
Hansen Technologies Ltd. | 3,073,829 | 7,531 | |
j2 Global, Inc. | 248,546 | 18,104 | |
Micro Focus International PLC | 598,550 | 9,279 | |
NICE Systems Ltd. sponsored ADR (a)(b) | 370,163 | 39,218 | |
QAD, Inc.: | |||
Class A | 122,227 | 5,186 | |
Class B | 5,290 | 165 | |
StoneCo Ltd. Class A (a) | 6,000 | 172 | |
Vitec Software Group AB | 85,000 | 778 | |
121,962 | |||
Technology Hardware, Storage & Peripherals - 0.0% | |||
Astro-Med, Inc. | 44,123 | 852 | |
TOTAL INFORMATION TECHNOLOGY | 250,662 | ||
MATERIALS - 3.6% | |||
Chemicals - 2.6% | |||
Core Molding Technologies, Inc. | 180,897 | 1,232 | |
Innospec, Inc. | 389,047 | 26,035 | |
NewMarket Corp. | 21,800 | 8,414 | |
Northern Technologies International Corp. | 62,785 | 2,031 | |
37,712 | |||
Containers & Packaging - 1.0% | |||
Silgan Holdings, Inc. | 469,191 | 11,275 | |
UFP Technologies, Inc. (a) | 118,355 | 4,086 | |
15,361 | |||
TOTAL MATERIALS | 53,073 | ||
REAL ESTATE - 2.5% | |||
Equity Real Estate Investment Trusts (REITs) - 1.9% | |||
CoreSite Realty Corp. | 72,000 | 6,758 | |
EPR Properties | 89,000 | 6,118 | |
PS Business Parks, Inc. | 15,652 | 2,044 | |
Store Capital Corp. | 462,000 | 13,412 | |
28,332 | |||
Real Estate Management & Development - 0.6% | |||
Consolidated-Tomoka Land Co. | 104,068 | 6,028 | |
FRP Holdings, Inc. (a) | 47,725 | 2,313 | |
8,341 | |||
TOTAL REAL ESTATE | 36,673 | ||
UTILITIES - 0.5% | |||
Gas Utilities - 0.5% | |||
Star Gas Partners LP | 838,257 | 8,014 | |
TOTAL COMMON STOCKS | |||
(Cost $1,450,847) | 1,476,791 | ||
Money Market Funds - 8.4% | |||
Fidelity Cash Central Fund, 2.23% (d) | 7,644,039 | 7,646 | |
Fidelity Securities Lending Cash Central Fund 2.23% (d)(e) | 116,280,455 | 116,292 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $123,938) | 123,938 | ||
TOTAL INVESTMENT IN SECURITIES - 107.9% | |||
(Cost $1,574,785) | 1,600,729 | ||
NET OTHER ASSETS (LIABILITIES) - (7.9)% | (116,617) | ||
NET ASSETS - 100% | $1,484,112 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $4,506,000 or 0.3% of net assets.
(d) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
(e) Investment made with cash collateral received from securities on loan.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
(Amounts in thousands) | |
Fidelity Cash Central Fund | $95 |
Fidelity Securities Lending Cash Central Fund | 245 |
Total | $340 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations if applicable.
Investment Valuation
The following is a summary of the inputs used, as of October 31, 2018, 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 | $33,592 | $33,592 | $-- | $-- |
Consumer Discretionary | 238,534 | 238,534 | -- | -- |
Consumer Staples | 55,844 | 55,844 | -- | -- |
Energy | 56,157 | 56,157 | -- | -- |
Financials | 265,767 | 265,767 | -- | -- |
Health Care | 236,209 | 236,209 | -- | -- |
Industrials | 242,266 | 242,266 | -- | -- |
Information Technology | 250,662 | 241,383 | 9,279 | -- |
Materials | 53,073 | 53,073 | -- | -- |
Real Estate | 36,673 | 36,673 | -- | -- |
Utilities | 8,014 | 8,014 | -- | -- |
Money Market Funds | 123,938 | 123,938 | -- | -- |
Total Investments in Securities: | $1,600,729 | $1,591,450 | $9,279 | $-- |
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
United States of America | 79.3% |
Canada | 5.1% |
United Kingdom | 3.9% |
Bermuda | 3.1% |
Israel | 2.7% |
Ireland | 1.5% |
Australia | 1.1% |
Others (Individually Less Than 1%) | 3.3% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amount) | October 31, 2018 (Unaudited) | |
Assets | ||
Investment in securities, at value (including securities loaned of $113,786) — See accompanying schedule: Unaffiliated issuers (cost $1,450,847) | $1,476,791 | |
Fidelity Central Funds (cost $123,938) | 123,938 | |
Total Investment in Securities (cost $1,574,785) | $1,600,729 | |
Receivable for investments sold | 2,739 | |
Receivable for fund shares sold | 374 | |
Dividends receivable | 882 | |
Distributions receivable from Fidelity Central Funds | 62 | |
Prepaid expenses | 3 | |
Other receivables | 59 | |
Total assets | 1,604,848 | |
Liabilities | ||
Payable for investments purchased | $2,370 | |
Payable for fund shares redeemed | 1,152 | |
Accrued management fee | 589 | |
Other affiliated payables | 267 | |
Other payables and accrued expenses | 63 | |
Collateral on securities loaned | 116,295 | |
Total liabilities | 120,736 | |
Net Assets | $1,484,112 | |
Net Assets consist of: | ||
Paid in capital | $1,309,063 | |
Total distributable earnings (loss) | 175,049 | |
Net Assets, for 85,991 shares outstanding | $1,484,112 | |
Net Asset Value, offering price and redemption price per share ($1,484,112 ÷ 85,991 shares) | $17.26 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Amounts in thousands | Six months ended October 31, 2018 (Unaudited) | |
Investment Income | ||
Dividends | $7,536 | |
Income from Fidelity Central Funds | 340 | |
Total income | 7,876 | |
Expenses | ||
Management fee | ||
Basic fee | $5,680 | |
Performance adjustment | (1,807) | |
Transfer agent fees | 1,356 | |
Accounting and security lending fees | 261 | |
Custodian fees and expenses | 41 | |
Independent trustees' fees and expenses | 5 | |
Registration fees | 11 | |
Audit | 28 | |
Legal | 4 | |
Miscellaneous | 8 | |
Total expenses before reductions | 5,587 | |
Expense reductions | (89) | |
Total expenses after reductions | 5,498 | |
Net investment income (loss) | 2,378 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 147,940 | |
Fidelity Central Funds | (3) | |
Foreign currency transactions | (18) | |
Total net realized gain (loss) | 147,919 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | (182,682) | |
Assets and liabilities in foreign currencies | 4 | |
Total change in net unrealized appreciation (depreciation) | (182,678) | |
Net gain (loss) | (34,759) | |
Net increase (decrease) in net assets resulting from operations | $(32,381) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Amounts in thousands | Six months ended October 31, 2018 (Unaudited) | Year ended April 30, 2018 |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $2,378 | $6,627 |
Net realized gain (loss) | 147,919 | 297,790 |
Change in net unrealized appreciation (depreciation) | (182,678) | (135,729) |
Net increase (decrease) in net assets resulting from operations | (32,381) | 168,688 |
Distributions to shareholders | (161,353) | – |
Distributions to shareholders from net investment income | – | (5,830) |
Distributions to shareholders from net realized gain | – | (145,081) |
Total distributions | (161,353) | (150,911) |
Share transactions | ||
Proceeds from sales of shares | 46,416 | 72,556 |
Reinvestment of distributions | 155,374 | 145,695 |
Cost of shares redeemed | (119,414) | (417,777) |
Net increase (decrease) in net assets resulting from share transactions | 82,376 | (199,526) |
Redemption fees | – | 36 |
Total increase (decrease) in net assets | (111,358) | (181,713) |
Net Assets | ||
Beginning of period | 1,595,470 | 1,777,183 |
End of period | $1,484,112 | $1,595,470 |
Other Information | ||
Undistributed net investment income end of period | $609 | |
Shares | ||
Sold | 2,433 | 3,733 |
Issued in reinvestment of distributions | 8,273 | 7,602 |
Redeemed | (6,265) | (21,501) |
Net increase (decrease) | 4,441 | (10,166) |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Small Cap Stock Fund
Six months ended (Unaudited) October 31, | Years endedApril 30, | |||||
2018 | 2018 | 2017 | 2016 | 2015 | 2014 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $19.56 | $19.38 | $17.48 | $19.92 | $20.83 | $19.78 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .03 | .08B | .03 | .03 | .14 | .12C |
Net realized and unrealized gain (loss) | (.33) | 1.86 | 2.60 | (.50)D | 2.50 | 3.24 |
Total from investment operations | (.30) | 1.94 | 2.63 | (.47) | 2.64 | 3.36 |
Distributions from net investment income | (.01) | (.07) | –E | (.11) | (.12) | (.06) |
Distributions from net realized gain | (1.99) | (1.69) | (.72) | (1.86) | (3.43) | (2.25) |
Total distributions | (2.00) | (1.76) | (.73)F | (1.97) | (3.55) | (2.31) |
Redemption fees added to paid in capitalA | – | –E | –E | –E | –E | –E |
Net asset value, end of period | $17.26 | $19.56 | $19.38 | $17.48 | $19.92 | $20.83 |
Total ReturnG,H | (2.38)% | 10.39% | 15.44% | (2.79)%D | 14.23% | 18.08% |
Ratios to Average Net AssetsI,J | ||||||
Expenses before reductions | .68%K | .82% | 1.02% | 1.00% | .66% | .68% |
Expenses net of fee waivers, if any | .68%K | .82% | 1.02% | .99% | .66% | .67% |
Expenses net of all reductions | .67%K | .81% | 1.02% | .99% | .66% | .67% |
Net investment income (loss) | .29%K | .39%B | .14% | .17% | .71% | .57%C |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $1,484 | $1,595 | $1,777 | $1,956 | $1,913 | $2,050 |
Portfolio turnover rateL | 77%K | 63%M | 48% | 59% | 64% | 50% |
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 $.02 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .27%.
C Net investment income per share reflects a large, non-recurring dividend which amounted to $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .43%.
D Net realized and unrealized gain (loss) per share reflects proceeds received from litigation which amounted to $.03 per share. Excluding these litigation proceeds, the total return would have been (2.96)%.
E Amount represents less than $.005 per share.
F Total distributions of $.73 per share is comprised of distributions from net investment income of $.003 and distributions from net realized gain of $.723 per share.
G Total returns for periods of less than one year are not annualized.
H Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
I Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
J Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
K Annualized
L Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
M Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended October 31, 2018
(Amounts in thousands except percentages)
1. Organization.
Fidelity Small Cap Stock Fund (the Fund) is a fund of Fidelity Concord Street 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.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – 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. Utilizing these techniques may result in transfers between Level 1 and Level 2. 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 October 31, 2018 is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. 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, redemptions in kind, 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 | $192,352 |
Gross unrealized depreciation | (166,910) |
Net unrealized appreciation (depreciation) | $25,442 |
Tax cost | $1,575,287 |
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
New Rule Issuance. During August 2018, the U.S. Securities and Exchange Commission issued Final Rule Release No. 33-10532, Disclosure Update and Simplification. This Final Rule includes amendments specific to registered investment companies that are intended to eliminate overlap in disclosure requirements between Regulation S-X and GAAP. In accordance with these amendments, certain line-items in the Fund's financial statements have been combined or removed for the current period as outlined in the table below.
Financial Statement | Current Line-Item Presentation | Prior Line-Item Presentation |
Statement of Assets and Liabilities | Total distributable earnings (loss) | Undistributed/Distributions in excess of/Accumulated net investment income (loss) Accumulated/Undistributed net realized gain (loss) Net unrealized appreciation (depreciation) |
Statement of Changes in Net Assets | N/A - removed | Undistributed/Distributions in excess of/Accumulated net investment income (loss) end of period |
Statement of Changes in Net Assets | Distributions to shareholders | Distributions to shareholders from net investment income Distributions to shareholders from net realized gain |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $619,944 and $679,008, respectively.
Prior Fiscal Year Redemptions In-Kind. During the prior period, 2,482 shares of the Fund held by unaffiliated entities were redeemed in-kind for investments and cash with a value of $49,431. The Fund had a net realized gain of $13,272 on investments delivered through the in-kind redemptions. The amount of the redemptions is included in share transactions activity shown in the accompanying Statement of Changes in Net. The Fund recognized no gain or loss for federal income tax purposes.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the Fund's average net assets and an annualized group fee rate that averaged .24% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of +/- .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the Fund's relative investment performance as compared to its benchmark index, the Russell 2000 Index, over the same 36 month performance period. For the reporting period, the total annualized management fee rate, including the performance adjustment, was .47% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of the investment adviser, is the Fund's transfer, dividend disbursing and shareholder servicing agent. FIIOC receives account fees and asset-based fees that vary according to account size and type of account. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the transfer agent fees were equivalent to an annualized rate of .16% of average net assets.
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions. For the period, the fees were equivalent to an annualized rate of .03%.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $25 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 $5.
Prior Fiscal Year Redemptions In-Kind. During the prior period, 2,452 shares of the Fund held by an unaffiliated entity were redeemed in-kind for investments and cash with a value of $46,842. The Fund had a net realized gain of $14,026 on investments delivered through the in-kind redemptions. The amount of the redemptions is included in share transactions activity shown in the accompanying Statement of Changes in Net Assets. The Fund recognized no gain or loss for federal income tax purposes.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $2 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. The value of securities loaned to FCM at period end was $2,064. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $245, including $8 from securities loaned to FCM.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $79 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $1.
In addition, during the period the investment adviser reimbursed and/or waived a portion of operating expenses in the amount of $9.
9. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
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 (May 1, 2018 to October 31, 2018).
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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee, which was eliminated effective August 1, 2018, is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee, which was eliminated effective August 1, 2018, is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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 May 1, 2018 | Ending Account Value October 31, 2018 | Expenses Paid During Period-B May 1, 2018 to October 31, 2018 | |
Actual | .68% | $1,000.00 | $976.20 | $3.39 |
Hypothetical-C | $1,000.00 | $1,021.78 | $3.47 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
C 5% return per year before expenses
Board Approval of Investment Advisory Contracts
Fidelity Small Cap Stock Fund
At its July 2018 meeting, the Board of Trustees, including the Independent Trustees (together, the Board), voted to continue the management contract with Fidelity Management & Research Company (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund for six months through January 31, 2019, in connection with the reunification of the Fidelity Equity High Income Funds Board, which oversees the fund, and the Sector Portfolios Board.
The Board considered that the approval of the fund's Advisory Contracts will not result in any changes in (i) the investment process or strategies employed in the management of the fund's assets; (ii) the fees and expenses paid by shareholders; (iii) the nature, extent or quality of services provided under the fund's Advisory Contracts; or (iv) the day-to-day management of the fund or the persons primarily responsible for such management. The Board concluded that the fund's Advisory Contracts are fair and reasonable, and that the fund's Advisory Contracts should be renewed, without modification, through January 31, 2019, with the understanding that the Board will consider the annual renewal for a full one year period in January 2019.
In connection with its consideration of future renewals of the fund's Advisory Contracts, the Board will consider: (i) the nature, extent and quality of services provided to the fund, including shareholder and administrative services and investment performance; (ii) the competitiveness of the management fee and total expenses for the fund; (iii) the costs of the services and profitability, including the revenues earned and the expenses incurred in conducting the business of developing, marketing, distributing, managing, administering, and servicing the fund and its shareholders, to the extent applicable, as well as potential fall-out benefits from Fidelity's non-fund businesses; and (iv) whether there have been economies of scale in respect of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is the potential for realization of any further economies.
Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board ultimately concluded that the fund's management fee structure is fair and reasonable, and that the continuation of the fund's Advisory Contracts should be approved.
Corporate Headquarters
245 Summer St.
Boston, MA 02210
www.fidelity.com
SLCX-SANN-1218
1.711817.120
Fidelity® Small Cap Discovery Fund Semi-Annual Report October 31, 2018 |
Contents
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2018 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-Q. Forms N-Q are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Investment Summary (Unaudited)
Top Ten Stocks as of October 31, 2018
% of fund's net assets | |
Store Capital Corp. | 2.9 |
SYNNEX Corp. | 2.8 |
Silgan Holdings, Inc. | 2.7 |
Conduent, Inc. | 2.7 |
j2 Global, Inc. | 2.6 |
Enstar Group Ltd. | 2.5 |
ShawCor Ltd. Class A | 2.5 |
First Citizen Bancshares, Inc. Class A | 2.4 |
Prosperity Bancshares, Inc. | 2.3 |
ADS Waste Holdings, Inc. | 2.3 |
25.7 |
Top Five Market Sectors as of October 31, 2018
% of fund's net assets | |
Financials | 19.5 |
Information Technology | 15.7 |
Industrials | 15.3 |
Consumer Discretionary | 13.8 |
Health Care | 9.4 |
Asset Allocation (% of fund's net assets)
As of October 31, 2018* | ||
Stocks | 99.3% | |
Short-Term Investments and Net Other Assets (Liabilities) | 0.7% |
* Foreign investments - 19.6%
Schedule of Investments October 31, 2018 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.3% | |||
Shares | Value | ||
COMMUNICATION SERVICES - 3.3% | |||
Diversified Telecommunication Services - 1.2% | |||
Atlantic Tele-Network, Inc. | 500,000 | $42,245,000 | |
Entertainment - 2.1% | |||
Cinemark Holdings, Inc. | 1,750,000 | 72,747,500 | |
TOTAL COMMUNICATION SERVICES | 114,992,500 | ||
CONSUMER DISCRETIONARY - 13.8% | |||
Distributors - 1.4% | |||
PALTAC Corp. | 1,000,000 | 51,047,990 | |
Hotels, Restaurants & Leisure - 3.4% | |||
Cedar Fair LP (depositary unit) | 1,000,000 | 51,260,000 | |
Hilton Grand Vacations, Inc. (a) | 2,500,000 | 67,175,000 | |
118,435,000 | |||
Household Durables - 5.2% | |||
LGI Homes, Inc. (a)(b)(c) | 1,200,000 | 51,348,000 | |
Taylor Morrison Home Corp. (a) | 4,500,000 | 74,430,000 | |
TRI Pointe Homes, Inc. (a)(b) | 5,000,000 | 59,500,000 | |
185,278,000 | |||
Specialty Retail - 2.0% | |||
Aaron's, Inc. Class A | 1,500,000 | 70,695,000 | |
Textiles, Apparel & Luxury Goods - 1.8% | |||
Emerald Expositions Events, Inc. (c) | 4,262,828 | 62,322,545 | |
TOTAL CONSUMER DISCRETIONARY | 487,778,535 | ||
CONSUMER STAPLES - 2.7% | |||
Food Products - 0.8% | |||
Inghams Group Ltd. (b) | 10,000,000 | 27,617,850 | |
Tobacco - 1.9% | |||
Universal Corp. | 1,000,000 | 67,860,000 | |
TOTAL CONSUMER STAPLES | 95,477,850 | ||
ENERGY - 5.0% | |||
Energy Equipment & Services - 4.4% | |||
Oil States International, Inc. (a)(c) | 3,000,000 | 66,810,000 | |
ShawCor Ltd. Class A (c) | 5,000,000 | 90,698,469 | |
157,508,469 | |||
Oil, Gas & Consumable Fuels - 0.6% | |||
PDC Energy, Inc. (a) | 250,000 | 10,612,500 | |
Riviera Resources, Inc. (a) | 75,851 | 1,617,143 | |
Roan Resources, Inc. (a) | 500,000 | 8,135,000 | |
20,364,643 | |||
TOTAL ENERGY | 177,873,112 | ||
FINANCIALS - 19.5% | |||
Banks - 12.6% | |||
Cullen/Frost Bankers, Inc. | 400,000 | 39,168,000 | |
First Citizen Bancshares, Inc. | 166,835 | 71,176,816 | |
First Citizen Bancshares, Inc. Class A | 200,000 | 85,326,000 | |
First Hawaiian, Inc. | 3,000,000 | 74,340,000 | |
Hilltop Holdings, Inc. | 2,750,000 | 54,725,000 | |
Popular, Inc. | 750,000 | 39,007,500 | |
Prosperity Bancshares, Inc. | 1,250,000 | 81,287,500 | |
445,030,816 | |||
Diversified Financial Services - 0.5% | |||
Cannae Holdings, Inc. (a) | 1,000,000 | 18,470,000 | |
Insurance - 6.4% | |||
Amerisafe, Inc. | 750,000 | 48,817,500 | |
Enstar Group Ltd. (a) | 500,000 | 90,800,000 | |
First American Financial Corp. | 1,750,000 | 77,577,500 | |
Sul America SA unit | 1,500,000 | 9,995,969 | |
227,190,969 | |||
TOTAL FINANCIALS | 690,691,785 | ||
HEALTH CARE - 9.4% | |||
Health Care Equipment & Supplies - 2.9% | |||
Hill-Rom Holdings, Inc. | 700,000 | 58,856,000 | |
Integra LifeSciences Holdings Corp. (a) | 800,000 | 42,856,000 | |
101,712,000 | |||
Health Care Providers & Services - 2.2% | |||
Magellan Health Services, Inc. (a) | 650,000 | 42,289,000 | |
Ship Healthcare Holdings, Inc. | 1,000,000 | 36,203,306 | |
78,492,306 | |||
Life Sciences Tools & Services - 2.2% | |||
Charles River Laboratories International, Inc. (a) | 650,000 | 79,183,000 | |
Pharmaceuticals - 2.1% | |||
Prestige Brands Holdings, Inc. (a) | 2,000,000 | 72,320,000 | |
TOTAL HEALTH CARE | 331,707,306 | ||
INDUSTRIALS - 15.3% | |||
Aerospace & Defense - 1.2% | |||
Ultra Electronics Holdings PLC | 2,335,100 | 42,920,343 | |
Airlines - 2.2% | |||
Spirit Airlines, Inc. (a) | 1,500,000 | 77,850,000 | |
Commercial Services & Supplies - 5.8% | |||
ABM Industries, Inc. | 2,000,000 | 61,500,000 | |
ADS Waste Holdings, Inc. (a) | 3,000,000 | 81,270,000 | |
Cimpress NV (a) | 500,000 | 62,495,000 | |
205,265,000 | |||
Electrical Equipment - 1.0% | |||
Regal Beloit Corp. | 500,000 | 35,850,000 | |
Machinery - 1.8% | |||
Apergy Corp. (a) | 1,000,000 | 38,990,000 | |
Mueller Industries, Inc. | 1,000,000 | 24,350,000 | |
63,340,000 | |||
Marine - 0.5% | |||
MPC Container Ships ASA (a) | 3,381,000 | 16,283,732 | |
Professional Services - 1.0% | |||
Capita Group PLC | 22,000,000 | 36,176,895 | |
FTI Consulting, Inc. (a) | 10,479 | 724,204 | |
36,901,099 | |||
Road & Rail - 1.1% | |||
Genesee & Wyoming, Inc. Class A (a) | 500,000 | 39,615,000 | |
Trading Companies & Distributors - 0.7% | |||
Beacon Roofing Supply, Inc. (a) | 100,000 | 2,791,000 | |
Diploma PLC | 200,000 | 3,361,666 | |
Fortress Transportation & Infrastructure Investors LLC | 1,000,000 | 16,650,000 | |
22,802,666 | |||
TOTAL INDUSTRIALS | 540,827,840 | ||
INFORMATION TECHNOLOGY - 15.7% | |||
Communications Equipment - 1.0% | |||
InterDigital, Inc. | 500,000 | 35,475,000 | |
Electronic Equipment & Components - 5.1% | |||
SYNNEX Corp. | 1,250,000 | 97,012,500 | |
Tech Data Corp. (a) | 1,000,000 | 70,660,000 | |
TTM Technologies, Inc. (a) | 1,000,000 | 11,700,000 | |
179,372,500 | |||
IT Services - 5.7% | |||
Conduent, Inc. (a) | 5,000,000 | 95,500,000 | |
EVERTEC, Inc. | 1,000,000 | 26,080,000 | |
Presidio, Inc. (c) | 5,000,000 | 67,000,000 | |
Tucows, Inc. (a)(b) | 250,700 | 12,580,126 | |
201,160,126 | |||
Software - 3.6% | |||
Hansen Technologies Ltd. | 1,230,311 | 3,014,507 | |
j2 Global, Inc. | 1,250,000 | 91,050,000 | |
Micro Focus International PLC | 2,000,000 | 31,004,433 | |
125,068,940 | |||
Technology Hardware, Storage & Peripherals - 0.3% | |||
Elecom Co. Ltd. | 500,000 | 11,866,885 | |
TOTAL INFORMATION TECHNOLOGY | 552,943,451 | ||
MATERIALS - 6.1% | |||
Chemicals - 1.1% | |||
Tronox Ltd. Class A | 3,500,000 | 40,075,000 | |
Construction Materials - 2.3% | |||
Wienerberger AG | 3,500,000 | 80,554,068 | |
Containers & Packaging - 2.7% | |||
Silgan Holdings, Inc. | 4,000,000 | 96,120,000 | |
TOTAL MATERIALS | 216,749,068 | ||
REAL ESTATE - 8.2% | |||
Equity Real Estate Investment Trusts (REITs) - 8.2% | |||
CareTrust (REIT), Inc. | 4,000,000 | 70,640,000 | |
CorePoint Lodging, Inc. | 1,000,000 | 16,370,000 | |
Corporate Office Properties Trust (SBI) | 2,500,000 | 64,600,000 | |
iStar Financial, Inc. (b)(c) | 3,552,565 | 37,301,933 | |
Store Capital Corp. | 3,500,000 | 101,605,000 | |
290,516,933 | |||
UTILITIES - 0.3% | |||
Electric Utilities - 0.3% | |||
Portland General Electric Co. | 200,000 | 9,016,000 | |
TOTAL COMMON STOCKS | |||
(Cost $3,257,641,178) | 3,508,574,380 | ||
Principal Amount | Value | ||
Nonconvertible Bonds - 0.0% | |||
INDUSTRIALS - 0.0% | |||
Machinery - 0.0% | |||
Mueller Industries, Inc. 6% 3/1/27 (Cost $443,000) | 443,000 | 424,173 | |
Shares | Value | ||
Money Market Funds - 2.4% | |||
Fidelity Cash Central Fund, 2.23% (d) | 24,022,870 | 24,027,674 | |
Fidelity Securities Lending Cash Central Fund 2.23% (d)(e) | 59,686,994 | 59,692,963 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $83,720,637) | 83,720,637 | ||
TOTAL INVESTMENT IN SECURITIES - 101.7% | |||
(Cost $3,341,804,815) | 3,592,719,190 | ||
NET OTHER ASSETS (LIABILITIES) - (1.7)% | (59,125,185) | ||
NET ASSETS - 100% | $3,533,594,005 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Affiliated company
(d) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
(e) Investment made with cash collateral received from securities on loan.
Affiliated Central Funds
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 | $383,181 |
Fidelity Securities Lending Cash Central Fund | 188,899 |
Total | $572,080 |
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.
Other Affiliated Issuers
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows:
Affiliate | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Realized Gain (loss) | Change in Unrealized appreciation (depreciation) | Value, end of period |
Amerisafe, Inc. | $59,300,000 | $-- | $16,535,054 | $440,000 | $11,753,665 | $(5,701,111) | $-- |
CareTrust (REIT), Inc. | 59,445,000 | -- | 8,907,329 | 1,742,500 | 1,142,829 | 18,959,500 | -- |
Emerald Expositions Events, Inc. | 86,715,000 | -- | 4,858,599 | 635,305 | (258,983) | (19,274,873) | 62,322,545 |
iStar Financial, Inc. | 36,023,009 | -- | -- | 319,731 | -- | 1,278,924 | 37,301,933 |
LGI Homes, Inc. | -- | 53,473,258 | -- | -- | -- | (2,125,258) | 51,348,000 |
Oil States International, Inc. | 125,825,000 | -- | 16,373,595 | -- | 2,487,218 | (45,128,623) | 66,810,000 |
Presidio, Inc. | 76,600,000 | -- | -- | 200,000 | -- | (9,600,000) | 67,000,000 |
Prestige Brands Holdings, Inc. | 88,320,000 | -- | 37,322,024 | -- | (14,231,695) | 35,553,719 | -- |
ShawCor Ltd. Class A | 96,732,739 | -- | -- | 986,238 | -- | (6,034,270) | 90,698,469 |
Super Micro Computer, Inc. | 44,250,000 | -- | 37,794,678 | -- | (22,789,634) | 16,334,312 | -- |
Total | $673,210,748 | $53,473,258 | $121,791,279 | $4,323,774 | $(21,896,600) | $(15,737,680) | $375,480,947 |
Investment Valuation
The following is a summary of the inputs used, as of October 31, 2018, 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 | $114,992,500 | $114,992,500 | $-- | $-- |
Consumer Discretionary | 487,778,535 | 487,778,535 | -- | -- |
Consumer Staples | 95,477,850 | 95,477,850 | -- | -- |
Energy | 177,873,112 | 177,873,112 | -- | -- |
Financials | 690,691,785 | 690,691,785 | -- | -- |
Health Care | 331,707,306 | 331,707,306 | -- | -- |
Industrials | 540,827,840 | 540,827,840 | -- | -- |
Information Technology | 552,943,451 | 521,939,018 | 31,004,433 | -- |
Materials | 216,749,068 | 216,749,068 | -- | -- |
Real Estate | 290,516,933 | 290,516,933 | -- | -- |
Utilities | 9,016,000 | 9,016,000 | -- | -- |
Corporate Bonds | 424,173 | -- | 424,173 | -- |
Money Market Funds | 83,720,637 | 83,720,637 | -- | -- |
Total Investments in Securities: | $3,592,719,190 | $3,561,290,584 | $31,428,606 | $-- |
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
United States of America | 80.4% |
United Kingdom | 3.2% |
Japan | 2.7% |
Bermuda | 2.5% |
Canada | 2.5% |
Austria | 2.3% |
Australia | 2.0% |
Puerto Rico | 1.8% |
Netherlands | 1.8% |
Others (Individually Less Than 1%) | 0.8% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
October 31, 2018 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $57,962,558) — See accompanying schedule: Unaffiliated issuers (cost $2,817,862,912) | $3,133,517,605 | |
Fidelity Central Funds (cost $83,720,638) | 83,720,638 | |
Other affiliated issuers (cost $440,221,265) | 375,480,947 | |
Total Investment in Securities (cost $3,341,804,815) | $3,592,719,190 | |
Receivable for investments sold | 7,932,495 | |
Receivable for fund shares sold | 1,010,385 | |
Dividends receivable | 2,633,561 | |
Interest receivable | 4,430 | |
Distributions receivable from Fidelity Central Funds | 100,165 | |
Prepaid expenses | 8,375 | |
Other receivables | 95,951 | |
Total assets | 3,604,504,552 | |
Liabilities | ||
Payable for investments purchased | $3,623,289 | |
Payable for fund shares redeemed | 5,614,576 | |
Accrued management fee | 1,275,962 | |
Other affiliated payables | 642,269 | |
Other payables and accrued expenses | 60,932 | |
Collateral on securities loaned | 59,693,519 | |
Total liabilities | 70,910,547 | |
Net Assets | $3,533,594,005 | |
Net Assets consist of: | ||
Paid in capital | $2,822,263,285 | |
Total distributable earnings (loss) | 711,330,720 | |
Net Assets, for 144,979,423 shares outstanding | $3,533,594,005 | |
Net Asset Value, offering price and redemption price per share ($3,533,594,005 ÷ 144,979,423 shares) | $24.37 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended October 31, 2018 (Unaudited) | ||
Investment Income | ||
Dividends (including $4,323,774 earned from other affiliated issuers) | $32,075,789 | |
Interest | 68,026 | |
Income from Fidelity Central Funds | 572,080 | |
Total income | 32,715,895 | |
Expenses | ||
Management fee | ||
Basic fee | $14,571,496 | |
Performance adjustment | (5,205,215) | |
Transfer agent fees | 3,509,743 | |
Accounting and security lending fees | 525,586 | |
Custodian fees and expenses | 46,469 | |
Independent trustees' fees and expenses | 13,245 | |
Registration fees | 30,702 | |
Audit | 28,414 | |
Legal | 5,835 | |
Miscellaneous | 18,093 | |
Total expenses before reductions | 13,544,368 | |
Expense reductions | (182,135) | |
Total expenses after reductions | 13,362,233 | |
Net investment income (loss) | 19,353,662 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 461,844,154 | |
Fidelity Central Funds | (1,009) | |
Other affiliated issuers | (21,896,600) | |
Foreign currency transactions | (141,581) | |
Total net realized gain (loss) | 439,804,964 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | (612,833,086) | |
Affiliated issuers | (15,737,680) | |
Assets and liabilities in foreign currencies | 13,173 | |
Total change in net unrealized appreciation (depreciation) | (628,557,593) | |
Net gain (loss) | (188,752,629) | |
Net increase (decrease) in net assets resulting from operations | $(169,398,967) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended October 31, 2018 (Unaudited) | Year ended April 30, 2018 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $19,353,662 | $31,111,783 |
Net realized gain (loss) | 439,804,964 | 1,124,609,868 |
Change in net unrealized appreciation (depreciation) | (628,557,593) | (878,434,661) |
Net increase (decrease) in net assets resulting from operations | (169,398,967) | 277,286,990 |
Distributions to shareholders | (607,456,548) | – |
Distributions to shareholders from net investment income | – | (30,365,108) |
Distributions to shareholders from net realized gain | – | (642,336,031) |
Total distributions | (607,456,548) | (672,701,139) |
Share transactions | ||
Proceeds from sales of shares | 132,720,245 | 368,900,524 |
Reinvestment of distributions | 565,110,222 | 617,878,103 |
Cost of shares redeemed | (894,832,783) | (1,716,978,022) |
Net increase (decrease) in net assets resulting from share transactions | (197,002,316) | (730,199,395) |
Redemption fees | – | 91,951 |
Total increase (decrease) in net assets | (973,857,831) | (1,125,521,593) |
Net Assets | ||
Beginning of period | 4,507,451,836 | 5,632,973,429 |
End of period | $3,533,594,005 | $4,507,451,836 |
Other Information | ||
Undistributed net investment income end of period | $6,957,019 | |
Shares | ||
Sold | 4,890,093 | 12,052,303 |
Issued in reinvestment of distributions | 20,914,516 | 20,441,252 |
Redeemed | (33,048,798) | (56,034,178) |
Net increase (decrease) | (7,244,189) | (23,540,623) |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Small Cap Discovery Fund
Six months ended (Unaudited) October 31, | Years endedApril 30, | |||||
2018 | 2018 | 2017 | 2016 | 2015 | 2014 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $29.61 | $32.05 | $27.81 | $30.62 | $30.77 | $27.46 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .12 | .19 | .20 | .15 | .11 | .05 |
Net realized and unrealized gain (loss) | (1.23) | 1.53 | 4.18 | (.99) | 3.00 | 5.10 |
Total from investment operations | (1.11) | 1.72 | 4.38 | (.84) | 3.11 | 5.15 |
Distributions from net investment income | (.06) | (.19) | (.14) | (.15) | (.08) | (.03) |
Distributions from net realized gain | (4.07) | (3.97) | – | (1.82) | (3.18) | (1.81) |
Total distributions | (4.13) | (4.16) | (.14) | (1.97) | (3.26) | (1.84) |
Redemption fees added to paid in capitalA | – | –B | –B | –B | –B | –B |
Net asset value, end of period | $24.37 | $29.61 | $32.05 | $27.81 | $30.62 | $30.77 |
Total ReturnC,D | (5.13)% | 5.46% | 15.76% | (2.94)% | 10.62% | 19.26% |
Ratios to Average Net AssetsE,F | ||||||
Expenses before reductions | .64%G | .69% | .87% | 1.01% | 1.06% | 1.01% |
Expenses net of fee waivers, if any | .64%G | .69% | .87% | 1.01% | 1.06% | 1.01% |
Expenses net of all reductions | .63%G | .68% | .87% | 1.00% | 1.05% | 1.01% |
Net investment income (loss) | .92%G | .61% | .66% | .53% | .36% | .15% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $3,533,594 | $4,507,452 | $5,632,973 | $5,330,816 | $6,052,079 | $6,457,900 |
Portfolio turnover rateH | 37%G | 41% | 18% | 25% | 13% | 17% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.005 per share.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
G Annualized
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended October 31, 2018
1. Organization.
Fidelity Small Cap Discovery Fund (the Fund) is a fund of Fidelity Concord Street 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. The Fund is closed to new accounts with certain exceptions.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – 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. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. Corporate bonds are valued by pricing vendors who utilize matrix pricing which considers prepayment speed assumptions, attributes of the collateral, yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of October 31, 2018 is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. 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 | $592,506,269 |
Gross unrealized depreciation | (341,591,894) |
Net unrealized appreciation (depreciation) | $250,914,375 |
Tax cost | $3,341,804,815 |
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 | Prior Line-Item Presentation |
Statement of Assets and Liabilities | Total distributable earnings (loss) | Undistributed/Distributions in excess of/Accumulated net investment income (loss) Accumulated/Undistributed net realized gain (loss) Net unrealized appreciation (depreciation) |
Statement of Changes in Net Assets | N/A - removed | Undistributed/Distributions in excess of/Accumulated net investment income (loss) end of period |
Statement of Changes in Net Assets | Distributions to shareholders | Distributions to shareholders from net investment income Distributions to shareholders from net realized gain |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $765,739,327 and $1,535,754,191, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the Fund's average net assets and an annualized group fee rate that averaged .24% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of +/- .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the Fund's relative investment performance as compared to its benchmark index, the Russell 2000 Index, over the same 36 month performance period. For the reporting period, the total annualized management fee rate, including the performance adjustment, was .44% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of the investment adviser, is the Fund's transfer, dividend disbursing and shareholder servicing agent. FIIOC receives account fees and asset-based fees that vary according to account size and type of account. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the transfer agent fees were equivalent to an annualized rate of .17% of average net assets.
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions. For the period, the fees were equivalent to an annualized rate of .02%.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $34,555 for the period.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $5,738 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. The value of securities loaned to FCM at period end was $4,897,568. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $188,899, including $2,055 from securities loaned to FCM.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $155,414 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $1,644.
In addition, during the period the investment adviser reimbursed and/or waived a portion of operating expenses in the amount of $25,077.
9. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
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 (May 1, 2018 to October 31, 2018).
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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee, which was eliminated effective August 1, 2018, is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee, which was eliminated effective August 1, 2018, is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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 May 1, 2018 | Ending Account Value October 31, 2018 | Expenses Paid During Period-B May 1, 2018 to October 31, 2018 | |
Actual | .64% | $1,000.00 | $948.70 | $3.14 |
Hypothetical-C | $1,000.00 | $1,021.98 | $3.26 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
C 5% return per year before expenses
Board Approval of Investment Advisory Contracts
Fidelity Small Cap Discovery Fund
At its July 2018 meeting, the Board of Trustees, including the Independent Trustees (together, the Board), voted to continue the management contract with Fidelity Management & Research Company (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund for six months through January 31, 2019, in connection with the reunification of the Fidelity Equity High Income Funds Board, which oversees the fund, and the Sector Portfolios Board.
The Board considered that the approval of the fund's Advisory Contracts will not result in any changes in (i) the investment process or strategies employed in the management of the fund's assets; (ii) the fees and expenses paid by shareholders; (iii) the nature, extent or quality of services provided under the fund's Advisory Contracts; or (iv) the day-to-day management of the fund or the persons primarily responsible for such management. The Board concluded that the fund's Advisory Contracts are fair and reasonable, and that the fund's Advisory Contracts should be renewed, without modification, through January 31, 2019, with the understanding that the Board will consider the annual renewal for a full one year period in January 2019.
In connection with its consideration of future renewals of the fund's Advisory Contracts, the Board will consider: (i) the nature, extent and quality of services provided to the fund, including shareholder and administrative services and investment performance; (ii) the competitiveness of the management fee and total expenses for the fund; (iii) the costs of the services and profitability, including the revenues earned and the expenses incurred in conducting the business of developing, marketing, distributing, managing, administering, and servicing the fund and its shareholders, to the extent applicable, as well as potential fall-out benefits from Fidelity's non-fund businesses; and (iv) whether there have been economies of scale in respect of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is the potential for realization of any further economies.
Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board ultimately concluded that the fund's management fee structure is fair and reasonable, and that the continuation of the fund's Advisory Contracts should be approved.
Corporate Headquarters
245 Summer St.
Boston, MA 02210
www.fidelity.com
SMR-SANN-1218
1.749363.118
Fidelity® Series Small Cap Discovery Fund Semi-Annual Report October 31, 2018 |
Contents
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2018 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-Q. Forms N-Q are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Investment Summary (Unaudited)
Top Ten Stocks as of October 31, 2018
% of fund's net assets | |
First Citizen Bancshares, Inc. | 3.4 |
j2 Global, Inc. | 2.8 |
Store Capital Corp. | 2.8 |
Cinemark Holdings, Inc. | 2.6 |
Spirit Airlines, Inc. | 2.5 |
SYNNEX Corp. | 2.5 |
Conduent, Inc. | 2.4 |
First Hawaiian, Inc. | 2.4 |
Prestige Brands Holdings, Inc. | 2.3 |
First American Financial Corp. | 2.2 |
25.9 |
Top Five Market Sectors as of October 31, 2018
% of fund's net assets | |
Financials | 19.4 |
Industrials | 18.1 |
Information Technology | 16.3 |
Consumer Discretionary | 12.3 |
Health Care | 11.1 |
Asset Allocation (% of fund's net assets)
As of October 31, 2018 * | ||
Stocks | 99.0% | |
Short-Term Investments and Net Other Assets (Liabilities) | 1.0% |
* Foreign investments - 16.5%
Schedule of Investments October 31, 2018 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 99.0% | |||
Shares | Value | ||
COMMUNICATION SERVICES - 3.7% | |||
Diversified Telecommunication Services - 1.1% | |||
Atlantic Tele-Network, Inc. | 200,000 | $16,898,000 | |
Entertainment - 2.6% | |||
Cinemark Holdings, Inc. | 1,000,000 | 41,570,000 | |
TOTAL COMMUNICATION SERVICES | 58,468,000 | ||
CONSUMER DISCRETIONARY - 12.3% | |||
Hotels, Restaurants & Leisure - 3.8% | |||
Cedar Fair LP (depositary unit) | 500,000 | 25,630,000 | |
Hilton Grand Vacations, Inc. (a) | 1,250,000 | 33,587,500 | |
59,217,500 | |||
Household Durables - 4.9% | |||
LGI Homes, Inc. (a)(b) | 500,000 | 21,395,000 | |
Meritage Homes Corp. (a) | 250,000 | 9,312,500 | |
Taylor Morrison Home Corp. (a) | 1,750,000 | 28,945,000 | |
TRI Pointe Homes, Inc. (a) | 1,500,000 | 17,850,000 | |
77,502,500 | |||
Specialty Retail - 2.2% | |||
Aaron's, Inc. Class A | 750,000 | 35,347,500 | |
Textiles, Apparel & Luxury Goods - 1.4% | |||
Emerald Expositions Events, Inc. | 1,500,000 | 21,930,000 | |
TOTAL CONSUMER DISCRETIONARY | 193,997,500 | ||
CONSUMER STAPLES - 1.2% | |||
Food Products - 1.2% | |||
Inghams Group Ltd. | 3,500,000 | 9,666,247 | |
Post Holdings, Inc. (a) | 100,000 | 8,842,000 | |
18,508,247 | |||
ENERGY - 4.2% | |||
Energy Equipment & Services - 3.6% | |||
Oil States International, Inc. (a) | 1,200,000 | 26,724,000 | |
ShawCor Ltd. Class A | 1,051,745 | 19,078,332 | |
Total Energy Services, Inc. | 1,458,030 | 10,554,921 | |
56,357,253 | |||
Oil, Gas & Consumable Fuels - 0.6% | |||
PDC Energy, Inc. (a) | 250,000 | 10,612,500 | |
TOTAL ENERGY | 66,969,753 | ||
FINANCIALS - 19.4% | |||
Banks - 13.3% | |||
BOK Financial Corp. | 300,000 | 25,719,000 | |
Cullen/Frost Bankers, Inc. | 200,000 | 19,584,000 | |
First Citizen Bancshares, Inc. | 125,000 | 53,328,751 | |
First Hawaiian, Inc. | 1,500,000 | 37,170,000 | |
Hilltop Holdings, Inc. | 1,000,000 | 19,900,000 | |
Popular, Inc. | 400,000 | 20,804,000 | |
Prosperity Bancshares, Inc. | 500,000 | 32,515,000 | |
209,020,751 | |||
Capital Markets - 2.5% | |||
Monex Group, Inc. (b) | 3,000,000 | 11,831,435 | |
OM Asset Management Ltd. | 2,500,000 | 28,500,000 | |
40,331,435 | |||
Diversified Financial Services - 0.6% | |||
Cannae Holdings, Inc. (a) | 500,000 | 9,235,000 | |
Insurance - 3.0% | |||
Enstar Group Ltd. (a) | 50,000 | 9,080,000 | |
First American Financial Corp. | 800,000 | 35,464,000 | |
Sul America SA unit | 400,000 | 2,665,592 | |
47,209,592 | |||
TOTAL FINANCIALS | 305,796,778 | ||
HEALTH CARE - 11.1% | |||
Health Care Equipment & Supplies - 4.1% | |||
Hill-Rom Holdings, Inc. | 350,000 | 29,428,000 | |
Integra LifeSciences Holdings Corp. (a) | 350,000 | 18,749,500 | |
LivaNova PLC (a) | 150,000 | 16,798,500 | |
64,976,000 | |||
Health Care Providers & Services - 3.1% | |||
Civitas Solutions, Inc. (a)(c) | 2,329,845 | 33,689,559 | |
Magellan Health Services, Inc. (a) | 230,000 | 14,963,800 | |
48,653,359 | |||
Life Sciences Tools & Services - 1.6% | |||
Charles River Laboratories International, Inc. (a) | 200,000 | 24,364,000 | |
Pharmaceuticals - 2.3% | |||
Prestige Brands Holdings, Inc. (a) | 1,000,000 | 36,160,000 | |
TOTAL HEALTH CARE | 174,153,359 | ||
INDUSTRIALS - 18.1% | |||
Aerospace & Defense - 0.8% | |||
Ultra Electronics Holdings PLC | 700,500 | 12,875,551 | |
Airlines - 2.5% | |||
Spirit Airlines, Inc. (a) | 750,000 | 38,925,000 | |
Commercial Services & Supplies - 6.9% | |||
ABM Industries, Inc. | 1,000,000 | 30,750,000 | |
ADS Waste Holdings, Inc. (a) | 1,000,000 | 27,090,000 | |
Cimpress NV (a) | 250,000 | 31,247,500 | |
Knoll, Inc. | 1,000,000 | 19,850,000 | |
108,937,500 | |||
Electrical Equipment - 1.4% | |||
Regal Beloit Corp. | 300,000 | 21,510,000 | |
Machinery - 2.5% | |||
Apergy Corp. (a) | 500,000 | 19,495,000 | |
Mueller Industries, Inc. | 800,000 | 19,480,000 | |
38,975,000 | |||
Marine - 0.6% | |||
MPC Container Ships ASA (a) | 2,000,000 | 9,632,494 | |
Professional Services - 1.0% | |||
Capita Group PLC | 10,000,000 | 16,444,043 | |
Road & Rail - 1.5% | |||
Genesee & Wyoming, Inc. Class A (a) | 300,000 | 23,769,000 | |
Trading Companies & Distributors - 0.9% | |||
Beacon Roofing Supply, Inc. (a) | 50,000 | 1,395,500 | |
Fortress Transportation & Infrastructure Investors LLC | 750,000 | 12,487,500 | |
13,883,000 | |||
TOTAL INDUSTRIALS | 284,951,588 | ||
INFORMATION TECHNOLOGY - 16.3% | |||
Communications Equipment - 1.1% | |||
InterDigital, Inc. | 250,000 | 17,737,500 | |
Electronic Equipment & Components - 5.1% | |||
SYNNEX Corp. | 500,000 | 38,805,000 | |
Tech Data Corp. (a) | 500,000 | 35,330,000 | |
TTM Technologies, Inc. (a) | 500,000 | 5,850,000 | |
79,985,000 | |||
IT Services - 6.1% | |||
Computer Services, Inc. | 313,024 | 15,673,112 | |
Conduent, Inc. (a) | 2,000,000 | 38,200,000 | |
EVERTEC, Inc. | 350,000 | 9,128,000 | |
Presidio, Inc. | 2,200,000 | 29,480,000 | |
Tucows, Inc. (a)(b) | 100,000 | 5,018,000 | |
97,499,112 | |||
Software - 3.6% | |||
Hansen Technologies Ltd. | 507,694 | 1,243,951 | |
j2 Global, Inc. | 600,000 | 43,704,000 | |
Micro Focus International PLC | 750,000 | 11,626,662 | |
56,574,613 | |||
Technology Hardware, Storage & Peripherals - 0.4% | |||
Elecom Co. Ltd. | 250,000 | 5,933,443 | |
TOTAL INFORMATION TECHNOLOGY | 257,729,668 | ||
MATERIALS - 4.2% | |||
Chemicals - 0.7% | |||
Tronox Ltd. Class A | 1,000,000 | 11,450,000 | |
Construction Materials - 1.5% | |||
Wienerberger AG | 1,000,000 | 23,015,448 | |
Containers & Packaging - 2.0% | |||
Silgan Holdings, Inc. | 1,300,000 | 31,239,000 | |
TOTAL MATERIALS | 65,704,448 | ||
REAL ESTATE - 8.0% | |||
Equity Real Estate Investment Trusts (REITs) - 8.0% | |||
CareTrust (REIT), Inc. | 1,000,000 | 17,660,000 | |
CorePoint Lodging, Inc. | 500,000 | 8,185,000 | |
Corporate Office Properties Trust (SBI) | 1,000,000 | 25,840,000 | |
iStar Financial, Inc. | 1,000,000 | 10,500,000 | |
Spirit Realty Capital, Inc. | 2,500,000 | 19,550,000 | |
Store Capital Corp. | 1,500,000 | 43,545,000 | |
125,280,000 | |||
UTILITIES - 0.5% | |||
Gas Utilities - 0.5% | |||
Southwest Gas Holdings, Inc. | 100,000 | 7,727,000 | |
TOTAL COMMON STOCKS | |||
(Cost $1,497,182,016) | 1,559,286,341 | ||
Principal Amount | Value | ||
Nonconvertible Bonds - 0.0% | |||
INDUSTRIALS - 0.0% | |||
Machinery - 0.0% | |||
Mueller Industries, Inc. 6% 3/1/27 (Cost $280,000) | 280,000 | 268,100 | |
Shares | Value | ||
Money Market Funds - 3.3% | |||
Fidelity Cash Central Fund, 2.23% (d) | 15,728,170 | 15,731,316 | |
Fidelity Securities Lending Cash Central Fund 2.23% (d)(e) | 36,517,741 | 36,521,393 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $52,252,709) | 52,252,709 | ||
TOTAL INVESTMENT IN SECURITIES - 102.3% | |||
(Cost $1,549,714,725) | 1,611,807,150 | ||
NET OTHER ASSETS (LIABILITIES) - (2.3)% | (36,210,139) | ||
NET ASSETS - 100% | $1,575,597,011 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Affiliated company
(d) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
(e) Includes investment made with cash collateral received from securities on loan.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
Fidelity Cash Central Fund | $215,949 |
Fidelity Securities Lending Cash Central Fund | 214,133 |
Total | $430,082 |
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.
Other Affiliated Issuers
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows:
Affiliate | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Realized Gain (loss) | Change in Unrealized appreciation (depreciation) | Value, end of period |
Civitas Solutions, Inc. | $35,625,000 | $-- | $2,795,289 | $-- | $(345,034) | $1,204,882 | $33,689,559 |
Total | $35,625,000 | $-- | $2,795,289 | $-- | $(345,034) | $1,204,882 | $33,689,559 |
Investment Valuation
The following is a summary of the inputs used, as of October 31, 2018, 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 | $58,468,000 | $58,468,000 | $-- | $-- |
Consumer Discretionary | 193,997,500 | 193,997,500 | -- | -- |
Consumer Staples | 18,508,247 | 18,508,247 | -- | -- |
Energy | 66,969,753 | 66,969,753 | -- | -- |
Financials | 305,796,778 | 305,796,778 | -- | -- |
Health Care | 174,153,359 | 174,153,359 | -- | -- |
Industrials | 284,951,588 | 284,951,588 | -- | -- |
Information Technology | 257,729,668 | 246,103,006 | 11,626,662 | -- |
Materials | 65,704,448 | 65,704,448 | -- | -- |
Real Estate | 125,280,000 | 125,280,000 | -- | -- |
Utilities | 7,727,000 | 7,727,000 | -- | -- |
Corporate Bonds | 268,100 | -- | 268,100 | -- |
Money Market Funds | 52,252,709 | 52,252,709 | -- | -- |
Total Investments in Securities: | $1,611,807,150 | $1,599,912,388 | $11,894,762 | $-- |
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
United States of America | 83.5% |
United Kingdom | 5.3% |
Netherlands | 2.0% |
Puerto Rico | 1.9% |
Canada | 1.9% |
Austria | 1.5% |
Australia | 1.4% |
Japan | 1.1% |
Others (Individually Less Than 1%) | 1.4% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
October 31, 2018 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $35,496,259) — See accompanying schedule: Unaffiliated issuers (cost $1,458,622,996) | $1,525,864,882 | |
Fidelity Central Funds (cost $52,252,709) | 52,252,709 | |
Other affiliated issuers (cost $38,839,020) | 33,689,559 | |
Total Investment in Securities (cost $1,549,714,725) | $1,611,807,150 | |
Foreign currency held at value (cost $56,590) | 56,590 | |
Receivable for investments sold | 59 | |
Receivable for fund shares sold | 2,822,160 | |
Dividends receivable | 571,817 | |
Interest receivable | 2,831 | |
Distributions receivable from Fidelity Central Funds | 65,575 | |
Other receivables | 170,812 | |
Total assets | 1,615,496,994 | |
Liabilities | ||
Payable for investments purchased | $1,379,847 | |
Payable for fund shares redeemed | 1,986,095 | |
Other payables and accrued expenses | 12,980 | |
Collateral on securities loaned | 36,521,061 | |
Total liabilities | 39,899,983 | |
Net Assets | $1,575,597,011 | |
Net Assets consist of: | ||
Paid in capital | $1,412,487,924 | |
Total distributable earnings (loss) | 163,109,087 | |
Net Assets | $1,575,597,011 | |
Net Asset Value and Maximum Offering Price | ||
Net Asset Value, offering price and redemption price per share ($1,575,597,011 ÷ 142,123,257 shares) | $11.09 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended October 31, 2018 (Unaudited) | ||
Investment Income | ||
Dividends | $12,159,352 | |
Non-Cash dividends | 2,113,923 | |
Interest | 40,837 | |
Income from Fidelity Central Funds | 430,082 | |
Total income | 14,744,194 | |
Expenses | ||
Custodian fees and expenses | $19,301 | |
Independent trustees' fees and expenses | 5,225 | |
Miscellaneous | 2,270 | |
Total expenses | 26,796 | |
Net investment income (loss) | 14,717,398 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 86,748,453 | |
Fidelity Central Funds | (824) | |
Other affiliated issuers | (345,034) | |
Foreign currency transactions | (4,440) | |
Total net realized gain (loss) | 86,398,155 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | (187,559,046) | |
Affiliated issuers | 1,204,882 | |
Assets and liabilities in foreign currencies | 5,984 | |
Total change in net unrealized appreciation (depreciation) | (186,348,180) | |
Net gain (loss) | (99,950,025) | |
Net increase (decrease) in net assets resulting from operations | $(85,232,627) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended October 31, 2018 (Unaudited) | Year ended April 30, 2018 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $14,717,398 | $19,300,450 |
Net realized gain (loss) | 86,398,155 | 193,792,080 |
Change in net unrealized appreciation (depreciation) | (186,348,180) | (93,337,372) |
Net increase (decrease) in net assets resulting from operations | (85,232,627) | 119,755,158 |
Distributions to shareholders | (102,202,678) | – |
Distributions to shareholders from net investment income | – | (20,661,296) |
Total distributions | (102,202,678) | (20,661,296) |
Share transactions - net increase (decrease) | 48,578,551 | (50,275,058) |
Total increase (decrease) in net assets | (138,856,754) | 48,818,804 |
Net Assets | ||
Beginning of period | 1,714,453,765 | 1,665,634,961 |
End of period | $1,575,597,011 | $1,714,453,765 |
Other Information | ||
Undistributed net investment income end of period | $4,801,162 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Series Small Cap Discovery Fund
Six months ended (Unaudited) October 31, | Years endedApril 30, | |||||
2018 | 2018 | 2017 | 2016 | 2015 | 2014 A | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $12.40 | $11.69 | $10.16 | $11.23 | $10.16 | $10.00 |
Income from Investment Operations | ||||||
Net investment income (loss)B | .10 | .14 | .09C | .03 | .02 | .02 |
Net realized and unrealized gain (loss) | (.67) | .71 | 1.49 | (.54) | 1.28 | .15 |
Total from investment operations | (.57) | .85 | 1.58 | (.51) | 1.30 | .17 |
Distributions from net investment income | (.05) | (.14) | (.05) | (.02) | (.02) | (.01) |
Distributions from net realized gain | (.69) | – | – | (.54) | (.21) | – |
Total distributions | (.74) | (.14) | (.05) | (.56) | (.23) | (.01) |
Net asset value, end of period | $11.09 | $12.40 | $11.69 | $10.16 | $11.23 | $10.16 |
Total ReturnD,E | (5.24)% | 7.33% | 15.60% | (4.82)% | 12.92% | 1.70% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | - %H,I | .06% | .87% | .96% | .97% | .97%H |
Expenses net of fee waivers, if any | - %H,I | .06% | .87% | .96% | .97% | .97%H |
Expenses net of all reductions | - %H,I | .05% | .86% | .95% | .97% | .96%H |
Net investment income (loss) | 1.69%H | 1.15% | .80%C | .29% | .17% | .35%H |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $1,575,597 | $1,714,454 | $652,818 | $614,362 | $659,747 | $572,515 |
Portfolio turnover rateJ | 47%H | 44% | 24% | 35% | 28% | 29%K,L |
A For the period November 7, 2013 (commencement of operations) to April 30, 2014.
B Calculated based on average shares outstanding during the period.
C Net Investment income per share reflects a large, non-recurring dividend which amounted to $.04 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .40%.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
H Annualized
I Amount represents less than .005%.
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
K Portfolio turnover rate excludes securities received or delivered in-kind.
L Amount not annualized.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended October 31, 2018
1. Organization.
Fidelity Series Small Cap Discovery Fund (the Fund) is a fund of Fidelity Concord Street Trust (the Trust) and is authorized to issue an unlimited number of shares. Shares of the Fund are only available for purchase by mutual funds for which Fidelity Management & Research Company (FMR) or an affiliate serves as an investment manager. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. Effective August 28, 2017, the Fund no longer offered Class F, and all outstanding shares of Class F were exchanged for shares of Series Small Cap Discovery.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – 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. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. Corporate bonds are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of October 31, 2018, is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. 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 capital loss carryforwards.
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 | $213,459,697 |
Gross unrealized depreciation | (151,367,272) |
Net unrealized appreciation (depreciation) | $62,092,425 |
Tax cost | $1,549,714,725 |
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 | Prior Line-Item Presentation |
Statement of Assets and Liabilities | Total distributable earnings (loss) | Undistributed/Distributions in excess of/Accumulated net investment income (loss) Accumulated/Undistributed net realized gain (loss) Net unrealized appreciation (depreciation) |
Statement of Changes in Net Assets | N/A - removed | Undistributed/Distributions in excess of/Accumulated net investment income (loss) end of period |
Statement of Changes in Net Assets | Distributions to shareholders | Distributions to shareholders from net investment income Distributions to shareholders from net realized gain |
Distributions to Shareholders Note to Financial Statements | Distributions to shareholders | Distributions to shareholders from net investment income Distributions to shareholders from net realized gain |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $399,646,202 and $441,906,982, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund does not pay a management fee. Under the management contract, the investment adviser or an affiliate pays all ordinary operating expenses of the Fund, except custody fees, fees and expenses of the independent Trustees, and certain miscellaneous expenses such as proxy and shareholder meeting expenses.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $13,265 for the period.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $2,271 and is reflected in Commitment fees on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. The value of securities loaned to FCM at period end was $1,776,372. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $214,133, including $237 from securities loaned to FCM.
8. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended October 31, 2018 | Year ended April 30, 2018 | |
Distributions to shareholders | ||
Series Small Cap Discovery | $102,202,678 | $– |
Total | $102,202,678 | $– |
From net investment income | ||
Series Small Cap Discovery | $– | $15,635,148 |
Class F | – | 5,026,148 |
Total | $– | $20,661,296 |
9. Share Transactions.
Transactions for each class of shares were as follows:
Shares | Shares | Dollars | Dollars | |
Six months ended October 31, 2018 | Year ended April 30, 2018 | Six months ended October 31, 2018 | Year ended April 30, 2018 | |
Series Small Cap Discovery | ||||
Shares sold | 4,241,300 | 96,171,488 | $51,668,726 | $1,101,331,795 |
Reinvestment of distributions | 8,255,467 | 1,267,885 | 102,202,678 | 15,635,148 |
Shares redeemed | (8,660,052) | (15,019,418) | (105,292,853) | (180,378,441) |
Net increase (decrease) | 3,836,715 | 82,419,955 | $48,578,551 | $936,588,502 |
Class F | ||||
Shares sold | – | 2,548,036 | $– | $29,763,723 |
Reinvestment of distributions | – | 428,852 | – | 5,026,148 |
Shares redeemed | – | (89,584,939) | – | (1,021,653,431) |
Net increase (decrease) | – | (86,608,051) | $– | $(986,863,560) |
10. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
At the end of the period, mutual funds managed by the investment adviser or its affiliates were the owners of record of all of the outstanding shares of the Fund.
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs and (2) ongoing costs, including other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (May 1, 2018 to October 31, 2018).
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 May 1, 2018 | Ending Account Value October 31, 2018 | Expenses Paid During Period-B May 1, 2018 to October 31, 2018 | |
Series Small Cap Discovery | - %C | |||
Actual | $1,000.00 | $947.60 | $-D | |
Hypothetical-E | $1,000.00 | $1,025.21 | $-D |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to the 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).
C Amount represents less than .005%.
D Amount represents less than $.005.
E 5% return per year before expenses
Board Approval of Investment Advisory Contracts
Fidelity Series Small Cap Discovery Fund
At its July 2018 meeting, the Board of Trustees, including the Independent Trustees (together, the Board), voted to continue the management contract with Fidelity Management & Research Company (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund for six months through January 31, 2019, in connection with the reunification of the Fidelity Equity High Income Funds Board, which oversees the fund, and the Sector Portfolios Board.
The Board considered that the approval of the fund's Advisory Contracts will not result in any changes in (i) the investment process or strategies employed in the management of the fund's assets; (ii) the fees and expenses paid by shareholders, including the expense cap arrangement currently in place for the fund; (iii) the nature, extent or quality of services provided under the fund's Advisory Contracts; or (iv) the day-to-day management of the fund or the persons primarily responsible for such management. The Board concluded that the fund's Advisory Contracts are fair and reasonable, and that the fund's Advisory Contracts should be renewed, without modification, through January 31, 2019, with the understanding that the Board will consider the annual renewal for a full one year period in January 2019.
In connection with its consideration of future renewals of the fund's Advisory Contracts, the Board will consider: (i) the nature, extent and quality of services provided to the fund, including shareholder and administrative services and investment performance; (ii) the competitiveness of the management fee and total expenses for the fund; (iii) the costs of the services and profitability, including the revenues earned and the expenses incurred in conducting the business of developing, marketing, distributing, managing, administering, and servicing the fund and its shareholders, to the extent applicable, as well as potential fall-out benefits from Fidelity's non-fund businesses; and (iv) whether there have been economies of scale in respect of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is the potential for realization of any further economies.
Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board ultimately concluded that the fund's management fee structure is fair and reasonable, and that the continuation of the fund's Advisory Contracts should be approved.
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Fidelity® Event Driven Opportunities Fund Semi-Annual Report October 31, 2018 |
Contents
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2018 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-Q. Forms N-Q are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Investment Summary (Unaudited)
Top Ten Stocks as of October 31, 2018
% of fund's net assets | |
CorePoint Lodging, Inc. | 10.8 |
Zooplus AG | 8.3 |
AO World PLC | 7.7 |
Alliance Data Systems Corp. | 7.5 |
Brighthouse Financial, Inc. | 3.3 |
WisdomTree Investments, Inc. | 3.3 |
SLM Corp. | 3.3 |
KKR & Co. LP | 3.1 |
Waddell & Reed Financial, Inc. Class A | 3.0 |
Mellanox Technologies Ltd. | 2.2 |
52.5 |
Top Five Market Sectors as of October 31, 2018
% of fund's net assets | |
Information Technology | 30.6 |
Consumer Discretionary | 18.6 |
Financials | 16.0 |
Real Estate | 12.2 |
Industrials | 2.4 |
Asset Allocation (% of fund's net assets)
As of October 31, 2018 * | ||
Stocks and Equity Futures | 94.5% | |
Short-Term Investments and Net Other Assets (Liabilities) | 5.5% |
* Foreign investments - 26.9%
Schedule of Investments October 31, 2018 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 81.9% | |||
Shares | Value | ||
CONSUMER DISCRETIONARY - 18.6% | |||
Hotels, Restaurants & Leisure - 0.0% | |||
Wyndham Hotels & Resorts, Inc. | 800 | $39,432 | |
Household Durables - 0.4% | |||
Hamilton Beach Brands Holding Co. Class A | 62,171 | 1,443,611 | |
Internet & Direct Marketing Retail - 16.0% | |||
AO World PLC (a) | 15,908,656 | 27,126,148 | |
Boohoo.Com PLC (a) | 14,100 | 38,370 | |
Ocado Group PLC (a) | 6,600 | 72,146 | |
Zooplus AG (a)(b) | 175,071 | 28,990,607 | |
56,227,271 | |||
Multiline Retail - 0.0% | |||
Avenue Supermarts Ltd. (a)(c) | 2,161 | 39,093 | |
Specialty Retail - 2.2% | |||
Cars.com, Inc. (a) | 286,748 | 7,486,990 | |
TOTAL CONSUMER DISCRETIONARY | 65,236,397 | ||
CONSUMER STAPLES - 0.0% | |||
Food Products - 0.0% | |||
SunOpta, Inc. (a) | 6,688 | 49,625 | |
ENERGY - 0.0% | |||
Energy Equipment & Services - 0.0% | |||
Exterran Corp. (a) | 1,626 | 33,967 | |
FINANCIALS - 16.0% | |||
Capital Markets - 12.7% | |||
Brighthouse Financial, Inc. (a) | 293,419 | 11,628,195 | |
Interactive Brokers Group, Inc. | 700 | 34,587 | |
KKR & Co. LP | 453,673 | 10,729,366 | |
Waddell & Reed Financial, Inc. Class A (b) | 552,613 | 10,538,330 | |
WisdomTree Investments, Inc. | 1,493,070 | 11,601,154 | |
44,531,632 | |||
Consumer Finance - 3.3% | |||
Encore Capital Group, Inc. (a) | 978 | 24,851 | |
SLM Corp. (a) | 1,137,400 | 11,533,236 | |
11,558,087 | |||
Diversified Financial Services - 0.0% | |||
Rafael Holdings, Inc. (a) | 33,900 | 275,946 | |
TOTAL FINANCIALS | 56,365,665 | ||
INDUSTRIALS - 2.4% | |||
Airlines - 1.3% | |||
AirAsia Group BHD | 6,783,100 | 4,263,246 | |
Ryanair Holdings PLC sponsored ADR (a) | 500 | 41,400 | |
Wizz Air Holdings PLC (a)(c) | 1,361 | 44,726 | |
4,349,372 | |||
Machinery - 1.1% | |||
Momentum Group AB Class B | 392,244 | 3,943,378 | |
TOTAL INDUSTRIALS | 8,292,750 | ||
INFORMATION TECHNOLOGY - 30.6% | |||
Communications Equipment - 0.0% | |||
Carvana Co. Class A (a)(b) | 700 | 27,125 | |
Electronic Equipment & Components - 4.3% | |||
Cardtronics PLC (a) | 270,652 | 7,350,908 | |
Knowles Corp. (a) | 473,700 | 7,664,466 | |
15,015,374 | |||
IT Services - 11.7% | |||
Alliance Data Systems Corp. | 127,770 | 26,343,619 | |
Conduent, Inc. (a) | 369,932 | 7,065,701 | |
DXC Technology Co. | 403 | 29,350 | |
Perspecta, Inc. | 306,951 | 7,517,230 | |
40,955,900 | |||
Semiconductors & Semiconductor Equipment - 6.4% | |||
Marvell Technology Group Ltd. | 446,000 | 7,318,860 | |
Mellanox Technologies Ltd. (a) | 91,800 | 7,774,542 | |
Versum Materials, Inc. | 232,893 | 7,350,103 | |
22,443,505 | |||
Software - 4.3% | |||
Black Knight, Inc. (a) | 158,618 | 7,735,800 | |
LogMeIn, Inc. | 442 | 38,065 | |
Micro Focus International PLC sponsored ADR | 2,338 | 35,865 | |
Symantec Corp. | 411,600 | 7,470,540 | |
15,280,270 | |||
Technology Hardware, Storage & Peripherals - 3.9% | |||
3D Systems Corp. (a)(b) | 508,983 | 6,148,515 | |
Diebold Nixdorf, Inc. (b) | 66,890 | 260,871 | |
Seagate Technology LLC | 179,997 | 7,241,279 | |
13,650,665 | |||
TOTAL INFORMATION TECHNOLOGY | 107,372,839 | ||
Media & Entertainment - 2.1% | |||
Media - 2.1% | |||
comScore, Inc. (a) | 461,332 | 7,358,245 | |
REAL ESTATE - 12.2% | |||
Equity Real Estate Investment Trusts (REITs) - 12.2% | |||
CorePoint Lodging, Inc. | 2,325,720 | 38,072,038 | |
JBG SMITH Properties | 130,341 | 4,885,181 | |
42,957,219 | |||
Real Estate Management & Development - 0.0% | |||
Midland Holdings Ltd. | 16,000 | 2,693 | |
TOTAL REAL ESTATE | 42,959,912 | ||
TOTAL COMMON STOCKS | |||
(Cost $307,050,499) | 287,669,400 | ||
Principal Amount | Value | ||
U.S. Treasury Obligations - 0.8% | |||
U.S. Treasury Bills, yield at date of purchase 2.01% to 2.3% 11/8/18 to 1/24/19 (d) | |||
(Cost $2,852,482) | 2,860,000 | 2,852,357 | |
Shares | Value | ||
Money Market Funds - 27.1% | |||
Fidelity Cash Central Fund, 2.23% (e) | 73,093,724 | $73,108,343 | |
Fidelity Securities Lending Cash Central Fund 2.23% (e)(f) | 21,992,926 | 21,995,125 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $95,102,546) | 95,103,468 | ||
TOTAL INVESTMENT IN SECURITIES - 109.8% | |||
(Cost $405,005,527) | 385,625,225 | ||
NET OTHER ASSETS (LIABILITIES) - (9.8)% | (34,471,268) | ||
NET ASSETS - 100% | $351,153,957 |
Futures Contracts | |||||
Number of contracts | Expiration Date | Notional Amount | Value | Unrealized Appreciation/(Depreciation) | |
Purchased | |||||
Equity Index Contracts | |||||
CME E-mini Russell 2000 Index Contracts (United States) | 80 | Dec. 2018 | $6,047,600 | $(811,535) | $(811,535) |
CME E-mini S&P 500 Index Contracts (United States) | 283 | Dec. 2018 | 38,362,065 | (2,736,246) | (2,736,246) |
TOTAL FUTURES CONTRACTS | $(3,547,781) |
The notional amount of futures purchased as a percentage of Net Assets is 12.6%
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $83,819 or 0.0% of net assets.
(d) 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 $2,031,474.
(e) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
(f) Investment made with cash collateral received from securities on loan.
Affiliated Central Funds
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 | $657,619 |
Fidelity Securities Lending Cash Central Fund | 334,152 |
Total | $991,771 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations if applicable.
Investment Valuation
The following is a summary of the inputs used, as of October 31, 2018, 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 | $7,358,245 | $7,358,245 | $-- | $-- |
Consumer Discretionary | 65,236,397 | 65,236,397 | -- | -- |
Consumer Staples | 49,625 | 49,625 | -- | -- |
Energy | 33,967 | 33,967 | -- | -- |
Financials | 56,365,665 | 56,365,665 | -- | -- |
Industrials | 8,292,750 | 8,292,750 | -- | -- |
Information Technology | 107,372,839 | 107,372,839 | -- | -- |
Real Estate | 42,959,912 | 42,959,912 | -- | -- |
U.S. Government and Government Agency Obligations | 2,852,357 | -- | 2,852,357 | -- |
Money Market Funds | 95,103,468 | 95,103,468 | -- | -- |
Total Investments in Securities: | $385,625,225 | $382,772,868 | $2,852,357 | $-- |
Derivative Instruments: | ||||
Liabilities | ||||
Futures Contracts | $(3,547,781) | $(3,547,781) | $-- | $-- |
Total Liabilities | $(3,547,781) | $(3,547,781) | $-- | $-- |
Total Derivative Instruments: | $(3,547,781) | $(3,547,781) | $-- | $-- |
The following is a summary of transfers between Level 1 and Level 2 for the period ended October 31, 2018. Transfers are assumed to have occurred at the beginning of the period, and are primarily attributable to the valuation techniques used for foreign equity securities, as discussed in the accompanying Notes to Financial Statements:
Transfers | Total |
Level 1 to Level 2 | $0 |
Level 2 to Level 1 | $4,056,768 |
Value of Derivative Instruments
The following table is a summary of the Fund's value of derivative instruments by primary risk exposure as of October 31, 2018. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements.
Primary Risk Exposure / Derivative Type | Value | |
Asset | Liability | |
Equity Risk | ||
Futures Contracts(a) | $0 | $(3,547,781) |
Total Equity Risk | 0 | (3,547,781) |
Total Value of Derivatives | $0 | $(3,547,781) |
(a) Reflects gross cumulative appreciation (depreciation) on futures contracts as presented in the Consolidated Schedule of Investments. In the Consolidated 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 net unrealized appreciation (depreciation).
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
United States of America | 73.1% |
United Kingdom | 9.8% |
Germany | 8.3% |
Israel | 2.2% |
Bermuda | 2.1% |
Ireland | 2.1% |
Malaysia | 1.3% |
Sweden | 1.1% |
Others (Individually Less Than 1%) | 0.0% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
October 31, 2018 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $19,280,675) — See accompanying schedule: Unaffiliated issuers (cost $309,902,981) | $290,521,757 | |
Fidelity Central Funds (cost $95,102,546) | 95,103,468 | |
Total Investment in Securities (cost $405,005,527) | $385,625,225 | |
Receivable for investments sold | 11,027,086 | |
Receivable for fund shares sold | 224,481 | |
Dividends receivable | 161,302 | |
Distributions receivable from Fidelity Central Funds | 163,288 | |
Receivable for daily variation margin on futures contracts | 345,500 | |
Prepaid expenses | 922 | |
Other receivables | 31,320 | |
Total assets | 397,579,124 | |
Liabilities | ||
Payable for investments purchased | $5,204,559 | |
Payable for fund shares redeemed | 18,867,414 | |
Accrued management fee | 258,442 | |
Other affiliated payables | 76,238 | |
Other payables and accrued expenses | 26,074 | |
Collateral on securities loaned | 21,992,440 | |
Total liabilities | 46,425,167 | |
Net Assets | $351,153,957 | |
Net Assets consist of: | ||
Paid in capital | $352,124,319 | |
Total distributable earnings (loss) | (970,362) | |
Net Assets, for 27,690,781 shares outstanding | $351,153,957 | |
Net Asset Value, offering price and redemption price per share ($351,153,957 ÷ 27,690,781 shares) | $12.68 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended October 31, 2018 (Unaudited) | ||
Investment Income | ||
Dividends | $3,008,737 | |
Interest | 25,532 | |
Income from Fidelity Central Funds (including $334,152 from security lending) | 991,771 | |
Total income | 4,026,040 | |
Expenses | ||
Management fee | ||
Basic fee | $1,933,233 | |
Performance adjustment | 49,747 | |
Transfer agent fees | 395,656 | |
Accounting and security lending fees | 92,491 | |
Custodian fees and expenses | 8,582 | |
Independent trustees' fees and expenses | 1,398 | |
Registration fees | 19,393 | |
Audit | 19,824 | |
Legal | 2,858 | |
Miscellaneous | 1,413 | |
Total expenses before reductions | 2,524,595 | |
Expense reductions | (45,801) | |
Total expenses after reductions | 2,478,794 | |
Net investment income (loss) | 1,547,246 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 18,330,025 | |
Fidelity Central Funds | 1,117 | |
Foreign currency transactions | 12,475 | |
Futures contracts | 1,842,568 | |
Total net realized gain (loss) | 20,186,185 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | (58,756,687) | |
Fidelity Central Funds | 1 | |
Assets and liabilities in foreign currencies | (556) | |
Futures contracts | (2,071,701) | |
Total change in net unrealized appreciation (depreciation) | (60,828,943) | |
Net gain (loss) | (40,642,758) | |
Net increase (decrease) in net assets resulting from operations | $(39,095,512) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended October 31, 2018 (Unaudited) | Year ended April 30, 2018 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $1,547,246 | $291,935 |
Net realized gain (loss) | 20,186,185 | 52,170,544 |
Change in net unrealized appreciation (depreciation) | (60,828,943) | (1,870,427) |
Net increase (decrease) in net assets resulting from operations | (39,095,512) | 50,592,052 |
Distributions to shareholders | (11,227,746) | – |
Distributions to shareholders from net investment income | – | (242,124) |
Distributions to shareholders from net realized gain | – | (39,805,952) |
Total distributions | (11,227,746) | (40,048,076) |
Share transactions | ||
Proceeds from sales of shares | 63,977,656 | 238,513,115 |
Reinvestment of distributions | 10,489,600 | 37,303,360 |
Cost of shares redeemed | (139,243,984) | (175,498,394) |
Net increase (decrease) in net assets resulting from share transactions | (64,776,728) | 100,318,081 |
Total increase (decrease) in net assets | (115,099,986) | 110,862,057 |
Net Assets | ||
Beginning of period | 466,253,943 | 355,391,886 |
End of period | $351,153,957 | $466,253,943 |
Other Information | ||
Undistributed net investment income end of period | $5,114 | |
Shares | ||
Sold | 4,465,976 | 16,783,267 |
Issued in reinvestment of distributions | 722,424 | 2,726,787 |
Redeemed | (10,130,571) | (12,397,405) |
Net increase (decrease) | (4,942,171) | 7,112,649 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Event Driven Opportunities Fund
Six months ended (Unaudited) October 31, | Years endedApril 30, | |||||
2018 | 2018 | 2017 | 2016 | 2015 | 2014 A | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $14.29 | $13.93 | $11.04 | $11.36 | $10.57 | $10.00 |
Income from Investment Operations | ||||||
Net investment income (loss)B | .05 | .01 | –C | .14D | .06 | .03E |
Net realized and unrealized gain (loss) | (1.32) | 1.71 | 3.12 | (.35)F | .95G | .55H |
Total from investment operations | (1.27) | 1.72 | 3.12 | (.21) | 1.01 | .58 |
Distributions from net investment income | – | (.01) | (.09)I | (.06) | (.06) | (.01) |
Distributions from net realized gain | (.34) | (1.35) | (.14)I | (.05) | (.16) | – |
Total distributions | (.34) | (1.36) | (.23) | (.11) | (.22) | (.01) |
Net asset value, end of period | $12.68 | $14.29 | $13.93 | $11.04 | $11.36 | $10.57 |
Total ReturnJ,K | (9.21)% | 12.89% | 28.57% | (1.89)%F | 9.64%G | 5.77%H |
Ratios to Average Net AssetsL,M | ||||||
Expenses before reductions | 1.10%N | 1.12% | 1.11% | 1.06% | 1.13% | 1.52%N |
Expenses net of fee waivers, if any | 1.10%N | 1.12% | 1.11% | 1.06% | 1.13% | 1.30%N |
Expenses net of all reductions | 1.08%N | 1.10% | 1.10% | 1.04% | 1.12% | 1.30%N |
Net investment income (loss) | .67%N | .07% | .01% | 1.31%D | .58% | .82%E,N |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $351,154 | $466,254 | $355,392 | $168,612 | $193,389 | $60,572 |
Portfolio turnover rateO | 72%N | 89% | 117% | 111% | 119% | 56%P |
A For the period December 12, 2013 (commencement of operations) to April 30, 2014.
B Calculated based on average shares outstanding during the period.
C Amount represents less than $.005 per share.
D Net investment income per share reflects a large, non-recurring dividend which amounted to $.05 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .82%.
E Net investment income per share reflects a large, non-recurring dividend which amounted to $.02 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .28%.
F Amount includes a reimbursement from the investment adviser for an operational error which amounted to less than $.01 per share. Excluding this reimbursement, the total return would have been (1.92)%.
G Amount includes a reimbursement from the investment adviser for an operational error which amounted to less than $.01 per share. Excluding this reimbursement, the total return would have been 9.57%.
H Amount includes a reimbursement from the investment adviser for an operational error which amounted to less than $.01 per share. Excluding this reimbursement, the total return would have been 5.67%.
I The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
J Total returns for periods of less than one year are not annualized.
K Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
L Fees and expenses of any underlying 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.
M Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
N Annualized
O Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
P Amount not annualized.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended October 31, 2018
1. Organization.
Fidelity Event Driven Opportunities Fund (the Fund) is a non-diversified fund of Fidelity Concord Street 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.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – 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. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. U.S. government and government agency obligations are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded and are categorized as Level 1 in the hierarchy. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of October 31, 2018, including information on transfers between Levels 1 and 2, 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. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to futures contracts, foreign currency transactions, market discount, partnerships 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 | $17,824,389 |
Gross unrealized depreciation | (37,654,069) |
Net unrealized appreciation (depreciation) | $(19,829,680) |
Tax cost | $405,454,905 |
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
New Rule Issuance. During August 2018, the U.S. Securities and Exchange Commission issued Final Rule Release No. 33-10532, Disclosure Update and Simplification. This Final Rule includes amendments specific to registered investment companies that are intended to eliminate overlap in disclosure requirements between Regulation S-X and GAAP. In accordance with these amendments, certain line-items in the Fund's financial statements have been combined or removed for the current period as outlined in the table below.
Financial Statement | Current Line-Item Presentation | Prior Line-Item Presentation |
Statement of Assets and Liabilities | Total distributable earnings (loss) | Undistributed/Distributions in excess of/Accumulated net investment income (loss) Accumulated/Undistributed net realized gain (loss) Net unrealized appreciation (depreciation) |
Statement of Changes in Net Assets | N/A – removed | Undistributed/Distributions in excess of/Accumulated net investment income (loss) end of period |
Statement of Changes in Net Assets | Distributions to shareholders | Distributions to shareholders from net investment income Distributions to shareholders from net realized gain |
4. Derivative Instruments.
Risk Exposures and the Use of Derivative Instruments. The Fund's investment objective allows the Fund to enter into various types of derivative contracts, including futures contracts. Derivatives are investments whose value is primarily derived from underlying assets, indices or reference rates and may be transacted on an exchange or over-the-counter (OTC). Derivatives may involve a future commitment to buy or sell a specified asset based on specified terms, to exchange future cash flows at periodic intervals based on a notional principal amount, or for one party to make one or more payments upon the occurrence of specified events in exchange for periodic payments from the other party.
The Fund used derivatives to increase returns and to manage exposure to certain risks as defined below. The success of any strategy involving derivatives depends on analysis of numerous economic factors, and if the strategies for investment do not work as intended, the Fund may not achieve its objectives.
The Fund's use of derivatives increased or decreased its exposure to the following risk:
Equity Risk | Equity risk relates to the fluctuations in the value of financial instruments as a result of changes in market prices (other than those arising from interest rate risk or foreign exchange risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment. |
The Fund is also exposed to additional risks from investing in derivatives, such as liquidity risk and counterparty credit risk. Liquidity risk is the risk that the Fund will be unable to close out the derivative in the open market in a timely manner. Counterparty credit risk is the risk that the counterparty will not be able to fulfill its obligation to the Fund. Counterparty credit risk related to exchange-traded futures contracts may be mitigated by the protection provided by the exchange on which they trade.
Investing in derivatives may involve greater risks than investing in the underlying assets directly and, to varying degrees, may involve risk of loss in excess of any initial investment and collateral received and amounts recognized in the Statement of Assets and Liabilities. In addition, there may be the risk that the change in value of the derivative contract does not correspond to the change in value of the underlying instrument.
Futures Contracts. A futures contract is an agreement between two parties to buy or sell a specified underlying instrument for a fixed price at a specified future date. The Fund used futures contracts to manage its exposure to the stock market.
Upon entering into a futures contract, a fund is required to deposit either cash or securities (initial margin) with a clearing broker in an amount equal to a certain percentage of the face value of the contract. Futures contracts are marked-to-market daily and subsequent daily payments (variation margin) are made or received by a fund depending on the daily fluctuations in the value of the futures contracts and are recorded as unrealized appreciation or (depreciation). This receivable and/or payable, if any, is included in daily variation margin on futures contracts in the Statement of Assets and Liabilities. Realized gain or (loss) is recorded upon the expiration or closing of a futures contract. The net realized gain (loss) and change in net unrealized appreciation (depreciation) on futures contracts during the period is presented in the Statement of Operations.
Any open futures contracts at period end are presented in the Schedule of Investments under the caption "Futures Contracts". The notional amount at value reflects each contract's exposure to the underlying instrument or index at period end and is representative of volume of activity during the period. Securities deposited to meet initial margin requirements are identified in the Schedule of Investments.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $137,695,387 and $221,940,726, 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 .60% of the Fund's average net assets and an annualized group fee rate that averaged .24% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of +/- .10% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the Fund's relative investment performance as compared to its benchmark index, the Russell 3000 Index, over the same 36 month performance period. For the reporting period, the total annualized management fee rate, including the performance adjustment, was .86% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of the investment adviser, is the Fund's transfer, dividend disbursing and shareholder servicing agent. FIIOC receives account fees and asset-based fees that vary according to account size and type of account. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the transfer agent fees were equivalent to an annualized rate of .17% of average net assets.
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions. For the period, the fees were equivalent to an annualized rate of .04%.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $5,973 for the period.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
7. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $614 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 through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. 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 FCM. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds and includes $12,531 from securities loaned to FCM.
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 $42,926 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $657.
In addition, during the period the investment adviser reimbursed and/or waived a portion of operating expenses in the amount of $2,218.
10. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
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 (May 1, 2018 to October 31, 2018).
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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee, which was eliminated effective August 1, 2018, is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee, which was eliminated effective August 1, 2018, is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. 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 May 1, 2018 | Ending Account Value October 31, 2018 | Expenses Paid During Period-B May 1, 2018 to October 31, 2018 | |
Actual | 1.10% | $1,000.00 | $907.90 | $5.29 |
Hypothetical-C | $1,000.00 | $1,019.66 | $5.60 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
C 5% return per year before expenses
Board Approval of Investment Advisory Contracts
Fidelity Event Driven Opportunities Fund
At its July 2018 meeting, the Board of Trustees, including the Independent Trustees (together, the Board), voted to continue the management contract with Fidelity Management & Research Company (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund for six months through January 31, 2019, in connection with the reunification of the Fidelity Equity High Income Funds Board, which oversees the fund, and the Sector Portfolios Board.
The Board considered that the approval of the fund's Advisory Contracts will not result in any changes in (i) the investment process or strategies employed in the management of the fund's assets; (ii) the fees and expenses paid by shareholders; (iii) the nature, extent or quality of services provided under the fund's Advisory Contracts; or (iv) the day-to-day management of the fund or the persons primarily responsible for such management. The Board concluded that the fund's Advisory Contracts are fair and reasonable, and that the fund's Advisory Contracts should be renewed, without modification, through January 31, 2019, with the understanding that the Board will consider the annual renewal for a full one year period in January 2019.
In connection with its consideration of future renewals of the fund's Advisory Contracts, the Board will consider: (i) the nature, extent and quality of services provided to the fund, including shareholder and administrative services and investment performance; (ii) the competitiveness of the management fee and total expenses for the fund; (iii) the costs of the services and profitability, including the revenues earned and the expenses incurred in conducting the business of developing, marketing, distributing, managing, administering, and servicing the fund and its shareholders, to the extent applicable, as well as potential fall-out benefits from Fidelity's non-fund businesses; and (iv) whether there have been economies of scale in respect of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is the potential for realization of any further economies.
Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board ultimately concluded that the fund's management fee structure is fair and reasonable, and that the continuation of the fund's Advisory Contracts should be approved.
Corporate Headquarters
245 Summer St.
Boston, MA 02210
www.fidelity.com
EDO-SANN-1218
1.9585359.104
Fidelity Advisor® Event Driven Opportunities Fund Semi-Annual Report October 31, 2018 |
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 1-877-208-0098 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2018 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-Q. Forms N-Q are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Investment Summary (Unaudited)
Top Ten Stocks as of October 31, 2018
% of fund's net assets | |
CorePoint Lodging, Inc. | 11.1 |
Zooplus AG | 8.7 |
AO World PLC | 8.4 |
Alliance Data Systems Corp. | 8.1 |
Brighthouse Financial, Inc. | 3.6 |
SLM Corp. | 3.4 |
WisdomTree Investments, Inc. | 3.3 |
Waddell & Reed Financial, Inc. Class A | 3.3 |
KKR & Co. LP | 3.2 |
Knowles Corp. | 2.3 |
55.4 |
Top Five Market Sectors as of October 31, 2018
% of fund's net assets | |
Information Technology | 31.6 |
Consumer Discretionary | 19.6 |
Financials | 16.9 |
Real Estate | 12.3 |
Industrials | 2.5 |
Asset Allocation (% of fund's net assets)
As of October 31, 2018* | ||
Stocks and Equity Futures | 96.9% | |
Short-Term Investments and Net Other Assets (Liabilities) | 3.1% |
* Foreign investments - 28.0%
Schedule of Investments October 31, 2018 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 84.9% | |||
Shares | Value | ||
CONSUMER DISCRETIONARY - 19.6% | |||
Hotels, Restaurants & Leisure - 0.0% | |||
Wyndham Hotels & Resorts, Inc. | 100 | $4,929 | |
Household Durables - 0.4% | |||
Hamilton Beach Brands Holding Co. Class A | 6,300 | 146,286 | |
Internet & Direct Marketing Retail - 17.1% | |||
AO World PLC (a) | 1,699,161 | 2,897,271 | |
Boohoo.Com PLC (a) | 1,300 | 3,538 | |
Ocado Group PLC (a) | 634 | 6,930 | |
Zooplus AG (a)(b) | 18,290 | 3,028,704 | |
5,936,443 | |||
Multiline Retail - 0.0% | |||
Avenue Supermarts Ltd. (a)(c) | 220 | 3,980 | |
Specialty Retail - 2.1% | |||
Cars.com, Inc. (a)(b) | 26,983 | 704,526 | |
TOTAL CONSUMER DISCRETIONARY | 6,796,164 | ||
CONSUMER STAPLES - 0.0% | |||
Food Products - 0.0% | |||
SunOpta, Inc. (a) | 718 | 5,328 | |
ENERGY - 0.0% | |||
Energy Equipment & Services - 0.0% | |||
Exterran Corp. (a) | 66 | 1,379 | |
FINANCIALS - 16.9% | |||
Capital Markets - 13.4% | |||
Brighthouse Financial, Inc. (a) | 31,235 | 1,237,843 | |
Interactive Brokers Group, Inc. | 100 | 4,941 | |
KKR & Co. LP | 47,254 | 1,117,557 | |
Waddell & Reed Financial, Inc. Class A (b) | 59,239 | 1,129,688 | |
WisdomTree Investments, Inc. | 147,097 | 1,142,944 | |
4,632,973 | |||
Consumer Finance - 3.4% | |||
Encore Capital Group, Inc. (a) | 135 | 3,430 | |
SLM Corp. (a) | 116,548 | 1,181,797 | |
1,185,227 | |||
Diversified Financial Services - 0.1% | |||
Rafael Holdings, Inc. (a) | 3,500 | 28,490 | |
TOTAL FINANCIALS | 5,846,690 | ||
INDUSTRIALS - 2.5% | |||
Airlines - 1.3% | |||
AirAsia Group BHD | 701,800 | 441,088 | |
Ryanair Holdings PLC sponsored ADR (a) | 50 | 4,140 | |
Wizz Air Holdings PLC (a)(c) | 102 | 3,352 | |
448,580 | |||
Machinery - 1.2% | |||
Momentum Group AB Class B | 41,266 | 414,863 | |
TOTAL INDUSTRIALS | 863,443 | ||
INFORMATION TECHNOLOGY - 31.6% | |||
Communications Equipment - 0.0% | |||
Carvana Co. Class A (a) | 100 | 3,875 | |
Electronic Equipment & Components - 4.5% | |||
Cardtronics PLC (a) | 27,578 | 749,018 | |
Knowles Corp. (a) | 49,303 | 797,723 | |
1,546,741 | |||
IT Services - 12.5% | |||
Alliance Data Systems Corp. | 13,573 | 2,798,481 | |
Conduent, Inc. (a) | 38,277 | 731,091 | |
DXC Technology Co. | 46 | 3,350 | |
Perspecta, Inc. | 32,448 | 794,652 | |
4,327,574 | |||
Semiconductors & Semiconductor Equipment - 6.3% | |||
Marvell Technology Group Ltd. | 44,166 | 724,764 | |
Mellanox Technologies Ltd. (a) | 8,848 | 749,337 | |
Versum Materials, Inc. | 23,087 | 728,626 | |
2,202,727 | |||
Software - 4.3% | |||
Black Knight, Inc. (a) | 15,119 | 737,354 | |
LogMeIn, Inc. | 67 | 5,770 | |
Micro Focus International PLC sponsored ADR | 262 | 4,019 | |
Symantec Corp. | 41,100 | 745,965 | |
1,493,108 | |||
Technology Hardware, Storage & Peripherals - 4.0% | |||
3D Systems Corp. (a)(b) | 53,900 | 651,112 | |
Diebold Nixdorf, Inc. (b) | 6,647 | 25,923 | |
Seagate Technology LLC | 17,843 | 717,824 | |
1,394,859 | |||
TOTAL INFORMATION TECHNOLOGY | 10,968,884 | ||
Media & Entertainment - 2.0% | |||
Media - 2.0% | |||
comScore, Inc. (a) | 44,212 | 705,181 | |
REAL ESTATE - 12.3% | |||
Equity Real Estate Investment Trusts (REITs) - 12.3% | |||
CorePoint Lodging, Inc. | 235,560 | 3,856,116 | |
JBG SMITH Properties | 10,864 | 407,183 | |
4,263,299 | |||
TOTAL COMMON STOCKS | |||
(Cost $32,230,436) | 29,450,368 | ||
Principal Amount | Value | ||
U.S. Treasury Obligations - 0.6% | |||
U.S. Treasury Bills, yield at date of purchase 2.09% to 2.16% 11/29/18 to 12/27/18 (d) | |||
(Cost $209,523) | 210,000 | 209,510 | |
Shares | Value | ||
Money Market Funds - 27.2% | |||
Fidelity Cash Central Fund, 2.23% (e) | 4,766,456 | $4,767,409 | |
Fidelity Securities Lending Cash Central Fund 2.23% (e)(f) | 4,660,832 | 4,661,298 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $9,428,628) | 9,428,707 | ||
Equity Funds - 0.3% | |||
Domestic Equity Funds - 0.3% | |||
iShares Russell 3000 Index ETF | |||
(Cost $87,133) | 706 | 112,671 | |
TOTAL INVESTMENT IN SECURITIES - 113.0% | |||
(Cost $41,955,720) | 39,201,256 | ||
NET OTHER ASSETS (LIABILITIES) - (13.0)% | (4,524,816) | ||
NET ASSETS - 100% | $34,676,440 |
Futures Contracts | |||||
Number of contracts | Expiration Date | Notional Amount | Value | Unrealized Appreciation/(Depreciation) | |
Purchased | |||||
Equity Index Contracts | |||||
CME E-mini Russell 2000 Index Contracts (United States) | 7 | Dec. 2018 | $529,165 | $(72,854) | $(72,854) |
CME E-mini S&P 500 Index Contracts (United States) | 26 | Dec. 2018 | 3,524,430 | (249,785) | (249,785) |
TOTAL FUTURES CONTRACTS | $(322,639) |
The notional amount of futures purchased as a percentage of Net Assets is 11.7%
For the period, the average monthly underlying face amount at value for futures contracts in the aggregate was $5,703,049.
Security Type Abbreviations
ETF – Exchange-Traded Fund
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $7,332 or 0.0% of net assets.
(d) 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 $188,563.
(e) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
(f) Investment made with cash collateral received from securities on loan.
Affiliated Central Funds
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 | $62,385 |
Fidelity Securities Lending Cash Central Fund | 54,641 |
Total | $117,026 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations if applicable.
Investment Valuation
The following is a summary of the inputs used, as of October 31, 2018, 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 | $705,181 | $705,181 | $-- | $-- |
Consumer Discretionary | 6,796,164 | 6,796,164 | -- | -- |
Consumer Staples | 5,328 | 5,328 | -- | -- |
Energy | 1,379 | 1,379 | -- | -- |
Financials | 5,846,690 | 5,846,690 | -- | -- |
Industrials | 863,443 | 863,443 | -- | -- |
Information Technology | 10,968,884 | 10,968,884 | -- | -- |
Real Estate | 4,263,299 | 4,263,299 | -- | -- |
U.S. Government and Government Agency Obligations | 209,510 | -- | 209,510 | -- |
Money Market Funds | 9,428,707 | 9,428,707 | -- | -- |
Equity Funds | 112,671 | 112,671 | -- | -- |
Total Investments in Securities: | $39,201,256 | $38,991,746 | $209,510 | $-- |
Derivative Instruments: | ||||
Liabilities | ||||
Futures Contracts | $(322,639) | $(322,639) | $-- | $-- |
Total Liabilities | $(322,639) | $(322,639) | $-- | $-- |
Total Derivative Instruments: | $(322,639) | $(322,639) | $-- | $-- |
The following is a summary of transfers between Level 1 and Level 2 for the period ended October 31, 2018. Transfers are assumed to have occurred at the beginning of the period, and are primarily attributable to the valuation techniques used for foreign equity securities, as discussed in the accompanying Notes to Financial Statements:
Transfers | Total |
Level 1 to Level 2 | $0 |
Level 2 to Level 1 | $406,214 |
Value of Derivative Instruments
The following table is a summary of the Fund's value of derivative instruments by primary risk exposure as of October 31, 2018. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements.
Primary Risk Exposure / Derivative Type | Value | |
Asset | Liability | |
Equity Risk | ||
Futures Contracts(a) | $0 | $(322,639) |
Total Equity Risk | 0 | (322,639) |
Total Value of Derivatives | $0 | $(322,639) |
(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 net unrealized appreciation (depreciation).
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
United States of America | 72.0% |
United Kingdom | 10.6% |
Germany | 8.7% |
Israel | 2.1% |
Bermuda | 2.1% |
Ireland | 2.0% |
Malaysia | 1.3% |
Sweden | 1.2% |
Others (Individually Less Than 1%) | 0.0% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
October 31, 2018 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $4,189,528) — See accompanying schedule: Unaffiliated issuers (cost $32,457,092) | $29,772,549 | |
Fidelity Central Funds (cost $9,428,628) | 9,428,707 | |
Total Investment in Securities (cost $41,885,720) | $39,201,256 | |
Cash | 29,778 | |
Receivable for investments sold | 1,115,061 | |
Receivable for fund shares sold | 12,953 | |
Dividends receivable | 17,035 | |
Distributions receivable from Fidelity Central Funds | 13,179 | |
Receivable for daily variation margin on futures contracts | 31,502 | |
Prepaid expenses | 95 | |
Other receivables | 3,429 | |
Total assets | 40,424,288 | |
Liabilities | ||
Payable for investments purchased | $456,758 | |
Payable for fund shares redeemed | 561,233 | |
Accrued management fee | 25,721 | |
Distribution and service plan fees payable | 7,930 | |
Other affiliated payables | 8,734 | |
Other payables and accrued expenses | 26,371 | |
Collateral on securities loaned | 4,661,101 | |
Total liabilities | 5,747,848 | |
Net Assets | $34,676,440 | |
Net Assets consist of: | ||
Paid in capital | $35,998,104 | |
Total distributable earnings (loss) | (1,321,664) | |
Net Assets | $34,676,440 | |
Net Asset Value and Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($10,691,198 ÷ 861,997 shares) | $12.40 | |
Maximum offering price per share (100/94.25 of $12.40) | $13.16 | |
Class M: | ||
Net Asset Value and redemption price per share ($2,784,384 ÷ 225,616 shares) | $12.34 | |
Maximum offering price per share (100/96.50 of $12.34) | $12.79 | |
Class C: | ||
Net Asset Value and offering price per share ($4,716,375 ÷ 387,746 shares)(a) | $12.16 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($14,635,825 ÷ 1,173,747 shares) | $12.47 | |
Class Z: | ||
Net Asset Value, offering price and redemption price per share ($1,848,658 ÷ 148,213 shares) | $12.47 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended October 31, 2018 (Unaudited) | ||
Investment Income | ||
Dividends | $313,487 | |
Interest | 2,572 | |
Income from Fidelity Central Funds (including $54,641 from security lending) | 117,026 | |
Total income | 433,085 | |
Expenses | ||
Management fee | ||
Basic fee | $197,842 | |
Performance adjustment | 334 | |
Transfer agent fees | 47,407 | |
Distribution and service plan fees | 51,113 | |
Accounting and security lending fees | 9,603 | |
Custodian fees and expenses | 5,647 | |
Independent trustees' fees and expenses | 141 | |
Registration fees | 22,092 | |
Audit | 22,462 | |
Legal | 2,511 | |
Miscellaneous | 193 | |
Total expenses before reductions | 359,345 | |
Expense reductions | (10,498) | |
Total expenses after reductions | 348,847 | |
Net investment income (loss) | 84,238 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 1,177,034 | |
Fidelity Central Funds | 360 | |
Foreign currency transactions | 1,147 | |
Futures contracts | 410,579 | |
Total net realized gain (loss) | 1,589,120 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | (5,557,325) | |
Fidelity Central Funds | (1) | |
Assets and liabilities in foreign currencies | (110) | |
Futures contracts | (194,276) | |
Total change in net unrealized appreciation (depreciation) | (5,751,712) | |
Net gain (loss) | (4,162,592) | |
Net increase (decrease) in net assets resulting from operations | $(4,078,354) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended October 31, 2018 (Unaudited) | Year ended April 30, 2018 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $84,238 | $(125,323) |
Net realized gain (loss) | 1,589,120 | 3,355,101 |
Change in net unrealized appreciation (depreciation) | (5,751,712) | 351,728 |
Net increase (decrease) in net assets resulting from operations | (4,078,354) | 3,581,506 |
Distributions to shareholders | (815,259) | – |
Distributions to shareholders from net realized gain | – | (2,300,863) |
Total distributions | (815,259) | (2,300,863) |
Share transactions - net increase (decrease) | (7,470,986) | 19,977,448 |
Total increase (decrease) in net assets | (12,364,599) | 21,258,091 |
Net Assets | ||
Beginning of period | 47,041,039 | 25,782,948 |
End of period | $34,676,440 | $47,041,039 |
Other Information | ||
Undistributed net investment income end of period | $626 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Advisor Event Driven Opportunities Fund Class A
Six months ended (Unaudited) October 31, | Years endedApril 30, | |||||
2018 | 2018 | 2017 | 2016 | 2015 | 2014 A | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $13.97 | $13.39 | $10.87 | $11.26 | $10.58 | $10.00 |
Income from Investment Operations | ||||||
Net investment income (loss)B | .02 | (.05) | (.06) | .08C | .01 | .02D |
Net realized and unrealized gain (loss) | (1.36) | 1.62 | 2.95 | (.36)E | .89F | .56G |
Total from investment operations | (1.34) | 1.57 | 2.89 | (.28) | .90 | .58 |
Distributions from net investment income | – | – | (.04) | – | (.01) | – |
Distributions from net realized gain | (.23) | (.99) | (.32) | (.11) | (.20) | – |
Total distributions | (.23) | (.99) | (.37)H | (.11) | (.22)I | – |
Net asset value, end of period | $12.40 | $13.97 | $13.39 | $10.87 | $11.26 | $10.58 |
Total ReturnJ,K,L | (9.82)% | 12.15% | 26.97% | (2.49)%E | 8.55%F | 5.80%G |
Ratios to Average Net AssetsM,N | ||||||
Expenses before reductions | 1.59%O | 1.80% | 2.34% | 2.76% | 2.82% | 4.76%O |
Expenses net of fee waivers, if any | 1.55%O | 1.55% | 1.55% | 1.55% | 1.55% | 1.55%O |
Expenses net of all reductions | 1.53%O | 1.53% | 1.54% | 1.54% | 1.53% | 1.55%O |
Net investment income (loss) | .31%O | (.38)% | (.53)% | .74%C | .10% | .59%D,O |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $10,691 | $11,752 | $6,407 | $2,513 | $2,983 | $1,389 |
Portfolio turnover rateP | 78%O | 86% | 120% | 113% | 150% | 57%Q |
A For the period December 12, 2013 (commencement of operations) to April 30, 2014.
B Calculated based on average shares outstanding during the period.
C Net investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .22%.
D Net investment income per share reflects a large, non-recurring dividend which amounted to $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.25) %.
E Amount includes a reimbursement from the investment adviser for an operational error which amounted to less than $.01 per share. Excluding this reimbursement, the total return would have been (2.52)%.
F Amount includes a reimbursement from the investment adviser for an operational error which amounted to less than $.01 per share. Excluding this reimbursement, the total return would have been 8.47%.
G Amount includes a reimbursement from the investment adviser for an operational error which amounted to less than $.01 per share. Excluding this reimbursement, the total return would have been 5.70%.
H Total distributions of $.37 per share is comprised of distributions from net investment income of $.043 and distributions from net realized gain of $.323 per share.
I Total distributions of $.22 per share is comprised of distributions from net investment income of $.014 and distributions from net realized gain of $.201 per share.
J Total returns for periods of less than one year are not annualized.
K Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
L Total returns do not include the effect of the sales charges.
M Fees and expenses of any underlying 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.
N Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
O Annualized
P Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
Q Amount not annualized.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Event Driven Opportunities Fund Class M
Six months ended (Unaudited) October 31, | Years endedApril 30, | |||||
2018 | 2018 | 2017 | 2016 | 2015 | 2014 A | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $13.91 | $13.33 | $10.83 | $11.25 | $10.57 | $10.00 |
Income from Investment Operations | ||||||
Net investment income (loss)B | – | (.09) | (.09) | .05C | (.02) | .01D |
Net realized and unrealized gain (loss) | (1.36) | 1.63 | 2.93 | (.36)E | .89F | .56G |
Total from investment operations | (1.36) | 1.54 | 2.84 | (.31) | .87 | .57 |
Distributions from net investment income | – | – | (.03) | – | (.01) | – |
Distributions from net realized gain | (.21) | (.96) | (.31) | (.11) | (.18) | – |
Total distributions | (.21) | (.96) | (.34) | (.11) | (.19) | – |
Net asset value, end of period | $12.34 | $13.91 | $13.33 | $10.83 | $11.25 | $10.57 |
Total ReturnH,I,J | (9.95)% | 11.91% | 26.59% | (2.76)%E | 8.35%F | 5.70%G |
Ratios to Average Net AssetsK,L | ||||||
Expenses before reductions | 1.86%M | 2.10% | 2.60% | 2.98% | 3.18% | 4.95%M |
Expenses net of fee waivers, if any | 1.80%M | 1.80% | 1.80% | 1.80% | 1.80% | 1.80%M |
Expenses net of all reductions | 1.78%M | 1.78% | 1.79% | 1.79% | 1.78% | 1.80%M |
Net investment income (loss) | .06%M | (.63)% | (.78)% | .49%C | (.15)% | .34%D,M |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $2,784 | $3,149 | $2,568 | $966 | $1,977 | $1,631 |
Portfolio turnover rateN | 78%M | 86% | 120% | 113% | 150% | 57%O |
A For the period December 12, 2013 (commencement of operations) to April 30, 2014.
B Calculated based on average shares outstanding during the period.
C Net investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.03) %.
D Net investment income per share reflects a large, non-recurring dividend which amounted to $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.50) %.
E Amount includes a reimbursement from the investment adviser for an operational error which amounted to less than $.01 per share. Excluding this reimbursement, the total return would have been (2.79)%.
F Amount includes a reimbursement from the investment adviser for an operational error which amounted to less than $.01 per share. Excluding this reimbursement, the total return would have been 8.27%.
G Amount includes a reimbursement from the investment adviser for an operational error which amounted to less than $.01 per share. Excluding this reimbursement, the total return would have been 5.60%.
H Total returns for periods of less than one year are not annualized.
I Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
J Total returns do not include the effect of the sales charges.
K Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
L Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
M Annualized
N Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
O Amount not annualized.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Event Driven Opportunities Fund Class C
Six months ended (Unaudited) October 31, | Years endedApril 30, | |||||
2018 | 2018 | 2017 | 2016 | 2015 | 2014 A | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $13.73 | $13.18 | $10.72 | $11.19 | $10.55 | $10.00 |
Income from Investment Operations | ||||||
Net investment income (loss)B | (.03) | (.15) | (.15) | –C,D | (.07) | (.01)E |
Net realized and unrealized gain (loss) | (1.34) | 1.61 | 2.90 | (.36)F | .88G | .56H |
Total from investment operations | (1.37) | 1.46 | 2.75 | (.36) | .81 | .55 |
Distributions from net investment income | – | – | (.02) | – | – | – |
Distributions from net realized gain | (.20) | (.91) | (.28) | (.11) | (.17) | – |
Total distributions | (.20) | (.91) | (.29)I | (.11) | (.17) | – |
Net asset value, end of period | $12.16 | $13.73 | $13.18 | $10.72 | $11.19 | $10.55 |
Total ReturnJ,K,L | (10.19)% | 11.39% | 25.96% | (3.23)%F | 7.75%G | 5.50%H |
Ratios to Average Net AssetsM,N | ||||||
Expenses before reductions | 2.35%O | 2.55% | 3.03% | 3.46% | 3.63% | 5.38%O |
Expenses net of fee waivers, if any | 2.30%O | 2.30% | 2.30% | 2.30% | 2.30% | 2.30%O |
Expenses net of all reductions | 2.28%O | 2.28% | 2.29% | 2.29% | 2.29% | 2.30%O |
Net investment income (loss) | (.44)%O | (1.13)% | (1.28)% | (.01)%C | (.65)% | (.16)%E,O |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $4,716 | $5,290 | $3,663 | $1,046 | $1,846 | $3,011 |
Portfolio turnover rateP | 78%O | 86% | 120% | 113% | 150% | 57%Q |
A For the period December 12, 2013 (commencement of operations) to April 30, 2014.
B Calculated based on average shares outstanding during the period.
C Net investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.53) %.
D Amount represents less than $.005 per share.
E Net investment income per share reflects a large, non-recurring dividend which amounted to $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (1.00) %.
F Amount includes a reimbursement from the investment adviser for an operational error which amounted to less than $.01 per share. Excluding this reimbursement, the total return would have been (3.26)%.
G Amount includes a reimbursement from the investment adviser for an operational error which amounted to less than $.01 per share. Excluding this reimbursement, the total return would have been 7.67%.
H Amount includes a reimbursement from the investment adviser for an operational error which amounted to less than $.01 per share. Excluding this reimbursement, the total return would have been 5.40%.
I Total distributions of $.29 per share is comprised of distributions from net investment income of $.015 and distributions from net realized gain of $.275 per share.
J Total returns for periods of less than one year are not annualized.
K Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
L Total returns do not include the effect of the contingent deferred sales charge.
M Fees and expenses of any underlying 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.
N Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
O Annualized
P Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
Q Amount not annualized.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Event Driven Opportunities Fund Class I
Six months ended (Unaudited) October 31, | Years endedApril 30, | |||||
2018 | 2018 | 2017 | 2016 | 2015 | 2014 A | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $14.05 | $13.45 | $10.91 | $11.28 | $10.59 | $10.00 |
Income from Investment Operations | ||||||
Net investment income (loss)B | .04 | (.02) | (.03) | .11C | .04 | .03D |
Net realized and unrealized gain (loss) | (1.37) | 1.64 | 2.96 | (.37)E | .89F | .56G |
Total from investment operations | (1.33) | 1.62 | 2.93 | (.26) | .93 | .59 |
Distributions from net investment income | – | – | (.05) | – | (.03) | – |
Distributions from net realized gain | (.25) | (1.02) | (.34) | (.11) | (.21) | – |
Total distributions | (.25) | (1.02) | (.39) | (.11) | (.24) | – |
Net asset value, end of period | $12.47 | $14.05 | $13.45 | $10.91 | $11.28 | $10.59 |
Total ReturnH,I | (9.72)% | 12.50% | 27.33% | (2.31)%E | 8.86%F | 5.90%G |
Ratios to Average Net AssetsJ,K | ||||||
Expenses before reductions | 1.28%L | 1.46% | 1.97% | 2.17% | 2.63% | 4.50%L |
Expenses net of fee waivers, if any | 1.28%L | 1.30% | 1.30% | 1.30% | 1.30% | 1.30%L |
Expenses net of all reductions | 1.26%L | 1.28% | 1.29% | 1.28% | 1.28% | 1.30%L |
Net investment income (loss) | .59%L | (.13)% | (.28)% | 1.00%C | .35% | .84%D,L |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $14,636 | $26,849 | $13,145 | $3,604 | $1,990 | $1,962 |
Portfolio turnover rateM | 78%L | 86% | 120% | 113% | 150% | 57%N |
A For the period December 12, 2013 (commencement of operations) to April 30, 2014.
B Calculated based on average shares outstanding during the period.
C Net investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .47%.
D Net investment income per share reflects a large, non-recurring dividend which amounted to $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.01) %.
E Amount includes a reimbursement from the investment adviser for an operational error which amounted to less than $.01 per share. Excluding this reimbursement, the total return would have been (2.34)%.
F Amount includes a reimbursement from the investment adviser for an operational error which amounted to less than $.01 per share. Excluding this reimbursement, the total return would have been 8.78%.
G Amount includes a reimbursement from the investment adviser for an operational error which amounted to less than $.01 per share. Excluding this reimbursement, the total return would have been 5.80%.
H Total returns for periods of less than one year are not annualized.
I Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
J Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
K Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
L Annualized
M Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
N Amount not annualized.
See accompanying notes which are an integral part of the financial statements.
Fidelity Advisor Event Driven Opportunities Fund Class Z
Six months ended (Unaudited) October 31, | |
2018 A | |
Selected Per–Share Data | |
Net asset value, beginning of period | $13.70 |
Income from Investment Operations | |
Net investment income (loss)B | – |
Net realized and unrealized gain (loss) | (1.23) |
Total from investment operations | (1.23) |
Net asset value, end of period | $12.47 |
Total ReturnC,D | (8.98)% |
Ratios to Average Net AssetsE,F | |
Expenses before reductions | 1.00%G |
Expenses net of fee waivers, if any | .99%G |
Expenses net of all reductions | .97%G |
Net investment income (loss) | (.35)%G |
Supplemental Data | |
Net assets, end of period (000 omitted) | $1,849 |
Portfolio turnover rateH | 78%G |
A For the period October 2, 2018 (commencement of sale of shares) to October 31, 2018.
B Calculated based on average shares outstanding during the period.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Annualized
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended October 31, 2018
1. Organization.
Fidelity Advisor Event Driven Opportunities Fund (the Fund) is a non-diversified fund of Fidelity Concord Street 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 commenced sale of Class Z shares on October 2, 2018. The Fund offers Class A, Class M, Class C, Class I and Class Z shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – 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. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. U.S. government and government agency obligations are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances. ETFs are valued at their last sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day but the exchange reports a closing bid level, ETFs are valued at the closing bid and would be categorized as Level 1 in the hierarchy. In the event there was no closing bid, ETFs may be valued by another method that the Board believes reflects fair value in accordance with the Board's fair value pricing policies and may be categorized as Level 2 in the hierarchy.
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 October 31, 2018, including information on transfers between Levels 1 and 2, 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. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to futures contracts, foreign currency transactions, partnerships, market discount 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 | $1,579,567 |
Gross unrealized depreciation | (4,369,906) |
Net unrealized appreciation (depreciation) | $(2,790,339) |
Tax cost | $41,991,595 |
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
New Rule Issuance. During August 2018, the U.S. Securities and Exchange Commission issued Final Rule Release No. 33-10532, Disclosure Update and Simplification. This Final Rule includes amendments specific to registered investment companies that are intended to eliminate overlap in disclosure requirements between Regulation S-X and GAAP. In accordance with these amendments, certain line-items in the Fund's financial statements have been combined or removed for the current period as outlined in the table below.
Financial Statement | Current Line-Item Presentation | Prior Line-Item Presentation |
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. Securities deposited to meet initial margin requirements are identified in the Schedule of Investments.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $15,370,361 and $22,480,588, 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 .60% of the Fund's average net assets and an annualized group fee rate that averaged .24% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of +/- .10% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of Class I of the Fund as compared to its benchmark index, the Russell 3000 Index, over the same 36 month performance period. For the reporting period, the total annualized management fee rate, including the performance adjustment, was .84% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
Distribution Fee | Service Fee | Total Fees | Retained by FDC | |
Class A | -% | .25% | $15,716 | $2,641 |
Class M | .25% | .25% | 8,232 | 216 |
Class C | .75% | .25% | 27,165 | 8,212 |
$51,113 | $11,069 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class M shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class M and Class C redemptions. The deferred sales charges are 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class M shares.
For the period, sales charge amounts retained by FDC were as follows:
Retained by FDC | |
Class A | $6,091 |
Class M | 527 |
Class C(a) | 316 |
$6,934 |
(a) When Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund, except for Class Z. FIIOC receives an asset-based fee of Class Z's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
Amount | % of Class-Level Average Net Assets(a) | |
Class A | $15,102 | .24 |
Class M | 4,147 | .25 |
Class C | 6,552 | .24 |
Class I | 21,595 | .17 |
Class Z | 11 | .04 |
$47,407 |
(a) Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions. For the period, the fees were equivalent to an annualized rate of .04%.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $710 for the period.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
7. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $63 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 through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. 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 FCM. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds, and includes $2,554 from securities loaned to FCM.
9. Expense Reductions.
The investment adviser contractually agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of class-level average net assets as noted in the table below. This reimbursement will remain in place through August 31, 2020. Some expenses, for example the compensation of the independent Trustees, and certain miscellaneous expenses such as proxy and shareholder meeting expenses, are excluded from this reimbursement.
The following classes were in reimbursement during the period:
Expense Limitations | Reimbursement | |
Class A | 1.55% | $2,641 |
Class M | 1.80% | 908 |
Class C | 2.30% | 1,227 |
$4,776 |
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 $5,523 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $25.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $174.
10. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended October 31, 2018 | Year ended April 30, 2018 | |
Distributions to shareholders | ||
Class A | $197,817 | $– |
Class M | 49,425 | – |
Class C | 78,799 | – |
Class I | 489,218 | – |
Total | $815,259 | $– |
From net realized gain | ||
Class A | $– | $593,053 |
Class M | – | 184,264 |
Class C | – | 298,372 |
Class I | – | 1,225,174 |
Total | $– | $2,300,863 |
11. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
Shares | Shares | Dollars | Dollars | |
Six months ended October 31, 2018(a) | Year ended April 30, 2018 | Six months ended October 31, 2018(a) | Year ended April 30, 2018 | |
Class A | ||||
Shares sold | 150,273 | 450,756 | $2,100,944 | $6,238,605 |
Reinvestment of distributions | 13,812 | 44,180 | 197,240 | 591,573 |
Shares redeemed | (143,062) | (132,477) | (1,876,987) | (1,823,574) |
Net increase (decrease) | 21,023 | 362,459 | $421,197 | $5,006,604 |
Class M | ||||
Shares sold | 18,758 | 94,566 | $262,023 | $1,299,217 |
Reinvestment of distributions | 3,476 | 13,813 | 49,425 | 184,264 |
Shares redeemed | (23,026) | (74,588) | (293,251) | (1,015,070) |
Net increase (decrease) | (792) | 33,791 | $18,197 | $468,411 |
Class C | ||||
Shares sold | 69,203 | 164,128 | $950,899 | $2,231,576 |
Reinvestment of distributions | 5,598 | 22,465 | 78,655 | 296,504 |
Shares redeemed | (72,343) | (79,141) | (974,333) | (1,067,604) |
Net increase (decrease) | 2,458 | 107,452 | $55,221 | $1,460,476 |
Class I | ||||
Shares sold | 461,598 | 1,360,275 | $6,477,461 | $18,956,142 |
Reinvestment of distributions | 26,276 | 57,819 | 376,796 | 777,083 |
Shares redeemed | (1,225,614) | (483,947) | (16,658,948) | (6,691,268) |
Net increase (decrease) | (737,740) | 934,147 | $(9,804,691) | $13,041,957 |
Class Z | ||||
Shares sold | 149,809 | – | $1,858,737 | $– |
Shares redeemed | (1,596) | – | (19,647) | – |
Net increase (decrease) | 148,213 | – | $1,839,090 | $– |
(a) Share transactions for Class Z are for the period October 2, 2018 (commencement of sale of shares) to October 31, 2018
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.
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The actual expense Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (May 1, 2018 to October 31, 2018) for Class A, Class M, Class C and Class I, and for the period (October 2, 2018 to October 31, 2018) for Class Z. The hypothetical expense Example is based on an investment of $1,000 invested for one-half year period (May 1, 2018 to October 31, 2018).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Annualized Expense Ratio-A | Beginning Account Value | Ending Account Value October 31, 2018 | Expenses Paid During Period | |
Class A | 1.55% | |||
Actual | $1,000.00 | $901.80 | $7.43-B | |
Hypothetical-C | $1,000.00 | $1,017.39 | $7.88-D | |
Class M | 1.80% | |||
Actual | $1,000.00 | $900.50 | $8.62-B | |
Hypothetical-C | $1,000.00 | $1,016.13 | $9.15-D | |
Class C | 2.30% | |||
Actual | $1,000.00 | $898.10 | $11.00-B | |
Hypothetical-C | $1,000.00 | $1,013.61 | $11.67-D | |
Class I | 1.28% | |||
Actual | $1,000.00 | $902.80 | $6.14-B | |
Hypothetical-C | $1,000.00 | $1,018.75 | $6.51-D | |
Class Z | .99% | |||
Actual | $1,000.00 | $910.20 | $.78-B | |
Hypothetical-C | $1,000.00 | $1,020.21 | $5.04-D |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Actual 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) for Class A, Class M, Class C and Class I, and multiplied by 30/365 (to reflect the period October 2, 2018 to October 31, 2018) for Class Z.
C 5% return per year before expenses
D Hypothetical 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).
Board Approval of Investment Advisory Contracts
Fidelity Advisor Event Driven Opportunities Fund
At its July 2018 meeting, the Board of Trustees, including the Independent Trustees (together, the Board), voted to continue the management contract with Fidelity Management & Research Company (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund for six months through January 31, 2019, in connection with the reunification of the Fidelity Equity High Income Funds Board, which oversees the fund, and the Sector Portfolios Board.
The Board considered that the approval of the fund's Advisory Contracts will not result in any changes in (i) the investment process or strategies employed in the management of the fund's assets; (ii) the fees and expenses paid by shareholders, including the expense cap arrangement currently in place for the fund; (iii) the nature, extent or quality of services provided under the fund's Advisory Contracts; or (iv) the day-to-day management of the fund or the persons primarily responsible for such management. The Board concluded that the fund's Advisory Contracts are fair and reasonable, and that the fund's Advisory Contracts should be renewed, without modification, through January 31, 2019, with the understanding that the Board will consider the annual renewal for a full one year period in January 2019.
In connection with its consideration of future renewals of the fund's Advisory Contracts, the Board will consider: (i) the nature, extent and quality of services provided to the fund, including shareholder and administrative services and investment performance; (ii) the competitiveness of the management fee and total expenses for the fund; (iii) the costs of the services and profitability, including the revenues earned and the expenses incurred in conducting the business of developing, marketing, distributing, managing, administering, and servicing the fund and its shareholders, to the extent applicable, as well as potential fall-out benefits from Fidelity's non-fund businesses; and (iv) whether there have been economies of scale in respect of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is the potential for realization of any further economies.
Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board ultimately concluded that the fund's management fee structure is fair and reasonable, and that the continuation of the fund's Advisory Contracts should be approved.
AEDO-SANN-1218
1.9585369.104
Fidelity® Large Cap Stock K6 Fund Semi-Annual Report October 31, 2018 |
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. © 2018 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-Q. Forms N-Q are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Investment Summary (Unaudited)
Top Ten Stocks as of October 31, 2018
% of fund's net assets | |
Microsoft Corp. | 4.6 |
Comcast Corp. Class A | 3.5 |
Exxon Mobil Corp. | 3.5 |
Bank of America Corp. | 3.3 |
Altria Group, Inc. | 3.0 |
JPMorgan Chase & Co. | 2.9 |
Apple, Inc. | 2.7 |
Wells Fargo & Co. | 2.2 |
Citigroup, Inc. | 2.1 |
Chevron Corp. | 2.0 |
29.8 |
Top Five Market Sectors as of October 31, 2018
% of fund's net assets | |
Financials | 20.1 |
Health Care | 16.2 |
Information Technology | 15.9 |
Energy | 12.6 |
Industrials | 9.7 |
Asset Allocation (% of fund's net assets)
As of October 31, 2018* | ||
Stocks | 97.9% | |
Convertible Securities | 0.2% | |
Short-Term Investments and Net Other Assets (Liabilities) | 1.9% |
* Foreign investments - 13.0%
Schedule of Investments October 31, 2018 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.9% | |||
Shares | Value | ||
COMMUNICATION SERVICES - 8.4% | |||
Diversified Telecommunication Services - 1.4% | |||
AT&T, Inc. | 2,894 | $88,788 | |
Verizon Communications, Inc. | 19,649 | 1,121,761 | |
1,210,549 | |||
Entertainment - 1.3% | |||
The Walt Disney Co. | 6,709 | 770,394 | |
Viacom, Inc. Class B (non-vtg.) | 2,382 | 76,176 | |
Vivendi SA | 12,400 | 299,067 | |
1,145,637 | |||
Interactive Media & Services - 1.1% | |||
Alphabet, Inc.: | |||
Class A (a) | 427 | 465,678 | |
Class C (a) | 406 | 437,169 | |
Snap, Inc. Class A (a) | 5,900 | 38,999 | |
941,846 | |||
Media - 4.6% | |||
Charter Communications, Inc. Class A (a) | 789 | 252,772 | |
Comcast Corp. Class A | 82,103 | 3,131,408 | |
Discovery Communications, Inc. Class A (a)(b) | 7,071 | 229,030 | |
Interpublic Group of Companies, Inc. | 16,994 | 393,581 | |
Omnicom Group, Inc. | 1,294 | 96,170 | |
4,102,961 | |||
TOTAL COMMUNICATION SERVICES | 7,400,993 | ||
CONSUMER DISCRETIONARY - 2.7% | |||
Auto Components - 0.0% | |||
Gentex Corp. | 1,100 | 23,155 | |
Distributors - 0.1% | |||
LKQ Corp. (a) | 2,000 | 54,540 | |
Hotels, Restaurants & Leisure - 0.0% | |||
Drive Shack, Inc. (a) | 5,310 | 28,355 | |
Household Durables - 0.2% | |||
Mohawk Industries, Inc. (a) | 900 | 112,257 | |
NVR, Inc. (a) | 20 | 44,781 | |
157,038 | |||
Multiline Retail - 0.4% | |||
Dollar Tree, Inc. (a) | 2,000 | 168,600 | |
Target Corp. | 2,539 | 212,337 | |
380,937 | |||
Specialty Retail - 2.0% | |||
L Brands, Inc. | 7,827 | 253,751 | |
Lowe's Companies, Inc. | 9,005 | 857,456 | |
Ross Stores, Inc. | 487 | 48,213 | |
Sally Beauty Holdings, Inc. (a) | 11,061 | 196,996 | |
TJX Companies, Inc. | 3,817 | 419,412 | |
1,775,828 | |||
TOTAL CONSUMER DISCRETIONARY | 2,419,853 | ||
CONSUMER STAPLES - 9.1% | |||
Beverages - 1.3% | |||
The Coca-Cola Co. | 23,970 | 1,147,684 | |
Food & Staples Retailing - 1.8% | |||
Walgreens Boots Alliance, Inc. | 3,400 | 271,218 | |
Walmart, Inc. | 13,402 | 1,343,953 | |
1,615,171 | |||
Food Products - 0.3% | |||
The Hershey Co. | 2,706 | 289,948 | |
Household Products - 1.5% | |||
Kimberly-Clark Corp. | 719 | 74,992 | |
Procter & Gamble Co. | 13,896 | 1,232,297 | |
Spectrum Brands Holdings, Inc. | 300 | 19,485 | |
1,326,774 | |||
Tobacco - 4.2% | |||
Altria Group, Inc. | 40,431 | 2,629,632 | |
British American Tobacco PLC sponsored ADR | 25,126 | 1,090,468 | |
3,720,100 | |||
TOTAL CONSUMER STAPLES | 8,099,677 | ||
ENERGY - 12.6% | |||
Energy Equipment & Services - 1.7% | |||
Baker Hughes, a GE Co. Class A | 14,542 | 388,126 | |
Ensco PLC Class A | 7,398 | 52,822 | |
National Oilwell Varco, Inc. | 9,377 | 345,074 | |
Oceaneering International, Inc. (a) | 10,162 | 192,468 | |
Schlumberger Ltd. | 5,800 | 297,598 | |
TechnipFMC PLC | 10,100 | 265,630 | |
Transocean Ltd. (United States) (a)(b) | 1,700 | 18,717 | |
1,560,435 | |||
Oil, Gas & Consumable Fuels - 10.9% | |||
BP PLC sponsored ADR | 23,278 | 1,009,567 | |
Cabot Oil & Gas Corp. | 14,746 | 357,296 | |
Cenovus Energy, Inc. (Canada) | 129,883 | 1,099,090 | |
Chevron Corp. | 15,475 | 1,727,784 | |
Enterprise Products Partners LP | 636 | 17,058 | |
Equinor ASA sponsored ADR | 26,287 | 675,576 | |
Exxon Mobil Corp. | 38,673 | 3,081,465 | |
Hess Corp. | 343 | 19,688 | |
Imperial Oil Ltd. | 10,963 | 342,435 | |
Kosmos Energy Ltd. (a) | 36,600 | 237,534 | |
Legacy Reserves, Inc. (a) | 10,653 | 44,849 | |
Suncor Energy, Inc. | 19,162 | 642,785 | |
Teekay Offshore Partners LP | 11,448 | 24,957 | |
The Williams Companies, Inc. | 15,592 | 379,353 | |
9,659,437 | |||
TOTAL ENERGY | 11,219,872 | ||
FINANCIALS - 20.1% | |||
Banks - 13.2% | |||
Bank of America Corp. | 107,587 | 2,958,643 | |
BNP Paribas SA | 500 | 26,125 | |
Citigroup, Inc. | 28,357 | 1,856,249 | |
First Hawaiian, Inc. | 1,400 | 34,692 | |
JPMorgan Chase & Co. | 23,277 | 2,537,659 | |
M&T Bank Corp. | 700 | 115,787 | |
PNC Financial Services Group, Inc. | 6,200 | 796,638 | |
Standard Chartered PLC (United Kingdom) | 32 | 225 | |
SunTrust Banks, Inc. | 11,860 | 743,148 | |
U.S. Bancorp | 15,357 | 802,710 | |
Wells Fargo & Co. | 35,785 | 1,904,836 | |
11,776,712 | |||
Capital Markets - 4.7% | |||
Cboe Global Markets, Inc. | 1,100 | 124,135 | |
Charles Schwab Corp. | 11,136 | 514,929 | |
KKR & Co. LP | 16,059 | 379,795 | |
Morgan Stanley | 15,498 | 707,639 | |
Northern Trust Corp. | 11,456 | 1,077,666 | |
State Street Corp. | 18,835 | 1,294,906 | |
Virtu Financial, Inc. Class A | 1,400 | 33,208 | |
4,132,278 | |||
Insurance - 0.8% | |||
Chubb Ltd. | 1,500 | 187,365 | |
MetLife, Inc. | 9,117 | 375,529 | |
The Travelers Companies, Inc. | 1,000 | 125,130 | |
688,024 | |||
Thrifts & Mortgage Finance - 1.4% | |||
MGIC Investment Corp. (a) | 27,618 | 337,216 | |
Radian Group, Inc. | 49,369 | 947,391 | |
1,284,607 | |||
TOTAL FINANCIALS | 17,881,621 | ||
HEALTH CARE - 16.2% | |||
Biotechnology - 2.1% | |||
Alexion Pharmaceuticals, Inc. (a) | 6,071 | 680,377 | |
Alnylam Pharmaceuticals, Inc. (a) | 1,001 | 80,510 | |
Amgen, Inc. | 1,164 | 224,408 | |
AnaptysBio, Inc. (a) | 500 | 37,360 | |
Atara Biotherapeutics, Inc. (a) | 2,430 | 83,033 | |
Insmed, Inc. (a) | 5,969 | 87,147 | |
Intercept Pharmaceuticals, Inc. (a) | 5,496 | 527,671 | |
Mirati Therapeutics, Inc. (a) | 1,700 | 63,529 | |
Spark Therapeutics, Inc. (a) | 1,373 | 61,771 | |
TESARO, Inc. (a) | 325 | 9,386 | |
1,855,192 | |||
Health Care Equipment & Supplies - 2.0% | |||
Boston Scientific Corp. (a) | 36,289 | 1,311,484 | |
Danaher Corp. | 3,203 | 318,378 | |
Zimmer Biomet Holdings, Inc. | 1,114 | 126,539 | |
1,756,401 | |||
Health Care Providers & Services - 6.2% | |||
AmerisourceBergen Corp. | 6,497 | 571,736 | |
Anthem, Inc. | 1,641 | 452,210 | |
Cardinal Health, Inc. | 12,322 | 623,493 | |
Cigna Corp. | 3,753 | 802,429 | |
CVS Health Corp. | 21,596 | 1,563,334 | |
Henry Schein, Inc. (a) | 200 | 16,600 | |
Humana, Inc. | 625 | 200,256 | |
McKesson Corp. | 7,097 | 885,422 | |
MEDNAX, Inc. (a) | 800 | 33,032 | |
UnitedHealth Group, Inc. | 1,495 | 390,718 | |
5,539,230 | |||
Health Care Technology - 0.1% | |||
Castlight Health, Inc. Class B (a) | 20,322 | 50,195 | |
Pharmaceuticals - 5.8% | |||
Allergan PLC | 703 | 111,081 | |
AstraZeneca PLC sponsored ADR | 5,237 | 203,091 | |
Bayer AG | 8,802 | 674,695 | |
Eli Lilly & Co. | 1,200 | 130,128 | |
GlaxoSmithKline PLC sponsored ADR | 36,790 | 1,437,017 | |
Jazz Pharmaceuticals PLC (a) | 3,348 | 531,729 | |
Johnson & Johnson | 8,656 | 1,211,753 | |
Perrigo Co. PLC | 1,200 | 84,360 | |
Sanofi SA | 1,758 | 157,096 | |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 18,952 | 378,661 | |
The Medicines Company (a) | 600 | 13,956 | |
TherapeuticsMD, Inc. (a)(b) | 51,131 | 250,031 | |
5,183,598 | |||
TOTAL HEALTH CARE | 14,384,616 | ||
INDUSTRIALS - 9.7% | |||
Aerospace & Defense - 1.7% | |||
General Dynamics Corp. | 1,465 | 252,830 | |
Huntington Ingalls Industries, Inc. | 100 | 21,848 | |
United Technologies Corp. | 10,293 | 1,278,494 | |
1,553,172 | |||
Air Freight & Logistics - 1.8% | |||
C.H. Robinson Worldwide, Inc. | 2,569 | 228,718 | |
FedEx Corp. | 594 | 130,882 | |
United Parcel Service, Inc. Class B | 11,681 | 1,244,494 | |
1,604,094 | |||
Building Products - 0.0% | |||
A.O. Smith Corp. | 400 | 18,212 | |
Commercial Services & Supplies - 0.2% | |||
ADS Waste Holdings, Inc. (a) | 2,887 | 78,209 | |
Stericycle, Inc. (a) | 1,656 | 82,750 | |
160,959 | |||
Electrical Equipment - 0.6% | |||
Acuity Brands, Inc. | 3,049 | 383,076 | |
Hubbell, Inc. Class B | 1,447 | 147,160 | |
530,236 | |||
Industrial Conglomerates - 1.7% | |||
3M Co. | 100 | 19,026 | |
General Electric Co. | 146,944 | 1,484,134 | |
1,503,160 | |||
Machinery - 0.8% | |||
Flowserve Corp. | 11,498 | 527,758 | |
Wabtec Corp. | 2,330 | 191,107 | |
718,865 | |||
Professional Services - 0.3% | |||
IHS Markit Ltd. (a) | 4,337 | 227,823 | |
Road & Rail - 2.5% | |||
CSX Corp. | 3,274 | 225,448 | |
J.B. Hunt Transport Services, Inc. | 4,778 | 528,495 | |
Knight-Swift Transportation Holdings, Inc. Class A | 7,900 | 252,800 | |
Norfolk Southern Corp. | 2,739 | 459,686 | |
Union Pacific Corp. | 5,472 | 800,116 | |
2,266,545 | |||
Trading Companies & Distributors - 0.1% | |||
Fastenal Co. | 1,108 | 56,962 | |
TOTAL INDUSTRIALS | 8,640,028 | ||
INFORMATION TECHNOLOGY - 15.7% | |||
Communications Equipment - 0.9% | |||
Cisco Systems, Inc. | 17,333 | 792,985 | |
Electronic Equipment & Components - 0.1% | |||
Itron, Inc. (a) | 2,282 | 118,983 | |
IT Services - 3.5% | |||
IBM Corp. | 643 | 74,221 | |
Interxion Holding N.V. (a) | 2,224 | 130,927 | |
MasterCard, Inc. Class A | 2,812 | 555,848 | |
Paychex, Inc. | 9,906 | 648,744 | |
Unisys Corp. (a) | 13,223 | 243,435 | |
Visa, Inc. Class A | 10,366 | 1,428,953 | |
3,082,128 | |||
Semiconductors & Semiconductor Equipment - 2.0% | |||
Analog Devices, Inc. | 809 | 67,721 | |
Applied Materials, Inc. | 7,200 | 236,736 | |
Lam Research Corp. | 900 | 127,557 | |
Qualcomm, Inc. | 21,693 | 1,364,273 | |
1,796,287 | |||
Software - 6.3% | |||
Micro Focus International PLC | 2,000 | 31,004 | |
Microsoft Corp. | 38,488 | 4,110,903 | |
Oracle Corp. | 19,844 | 969,181 | |
SAP SE sponsored ADR | 4,743 | 508,734 | |
5,619,822 | |||
Technology Hardware, Storage & Peripherals - 2.9% | |||
Apple, Inc. | 10,960 | 2,398,706 | |
Western Digital Corp. | 3,100 | 133,517 | |
2,532,223 | |||
TOTAL INFORMATION TECHNOLOGY | 13,942,428 | ||
MATERIALS - 1.8% | |||
Chemicals - 1.7% | |||
CF Industries Holdings, Inc. | 3,509 | 168,537 | |
DowDuPont, Inc. | 1,600 | 86,272 | |
International Flavors & Fragrances, Inc. | 1,000 | 144,660 | |
Intrepid Potash, Inc. (a) | 39,717 | 156,882 | |
LyondellBasell Industries NV Class A | 3,119 | 278,433 | |
Nutrien Ltd. | 9,645 | 510,585 | |
The Scotts Miracle-Gro Co. Class A | 1,041 | 69,476 | |
W.R. Grace & Co. | 1,949 | 126,276 | |
1,541,121 | |||
Metals & Mining - 0.1% | |||
Lundin Mining Corp. | 19,900 | 81,780 | |
TOTAL MATERIALS | 1,622,901 | ||
REAL ESTATE - 0.6% | |||
Equity Real Estate Investment Trusts (REITs) - 0.6% | |||
American Tower Corp. | 1,001 | 155,966 | |
Equinix, Inc. | 572 | 216,639 | |
Public Storage | 583 | 119,789 | |
Simon Property Group, Inc. | 200 | 36,704 | |
529,098 | |||
UTILITIES - 1.0% | |||
Electric Utilities - 1.0% | |||
Duke Energy Corp. | 800 | 66,104 | |
Exelon Corp. | 10,481 | 459,173 | |
PPL Corp. | 4,794 | 145,738 | |
Southern Co. | 2,351 | 105,866 | |
Vistra Energy Corp. (a) | 5,377 | 121,682 | |
898,563 | |||
Multi-Utilities - 0.0% | |||
Sempra Energy | 400 | 44,048 | |
TOTAL UTILITIES | 942,611 | ||
TOTAL COMMON STOCKS | |||
(Cost $84,921,474) | 87,083,698 | ||
Convertible Preferred Stocks - 0.2% | |||
INFORMATION TECHNOLOGY - 0.2% | |||
Internet Software & Services - 0.2% | |||
Lyft, Inc. Series I (c)(d) | |||
(Cost $172,984) | 3,653 | 172,984 | |
Money Market Funds - 2.7% | |||
Fidelity Cash Central Fund, 2.23% (e) | 1,862,777 | 1,863,149 | |
Fidelity Securities Lending Cash Central Fund 2.23% (e)(f) | 515,644 | 515,696 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $2,378,845) | 2,378,845 | ||
TOTAL INVESTMENT IN SECURITIES - 100.8% | |||
(Cost $87,473,303) | 89,635,527 | ||
NET OTHER ASSETS (LIABILITIES) - (0.8)% | (722,299) | ||
NET ASSETS - 100% | $88,913,228 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $172,984 or 0.2% of net assets.
(d) Level 3 security
(e) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
(f) Investment made with cash collateral received from securities on loan.
Additional information on each restricted holding is as follows:
Security | Acquisition Date | Acquisition Cost |
Lyft, Inc. Series I | 6/27/18 | $172,984 |
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
Fidelity Cash Central Fund | $9,999 |
Fidelity Securities Lending Cash Central Fund | 4,728 |
Total | $14,727 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations if applicable.
Investment Valuation
The following is a summary of the inputs used, as of October 31, 2018, 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 | $7,400,993 | $7,101,926 | $299,067 | $-- |
Consumer Discretionary | 2,419,853 | 2,419,853 | -- | -- |
Consumer Staples | 8,099,677 | 8,099,677 | -- | -- |
Energy | 11,219,872 | 11,219,872 | -- | -- |
Financials | 17,881,621 | 17,881,621 | -- | -- |
Health Care | 14,384,616 | 13,552,825 | 831,791 | -- |
Industrials | 8,640,028 | 8,640,028 | -- | -- |
Information Technology | 14,115,412 | 13,911,424 | 31,004 | 172,984 |
Materials | 1,622,901 | 1,622,901 | -- | -- |
Real Estate | 529,098 | 529,098 | -- | -- |
Utilities | 942,611 | 942,611 | -- | -- |
Money Market Funds | 2,378,845 | 2,378,845 | -- | -- |
Total Investments in Securities: | $89,635,527 | $88,300,681 | $1,161,862 | $172,984 |
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
United States of America | 87.0% |
United Kingdom | 4.5% |
Canada | 3.0% |
Germany | 1.4% |
Others (Individually Less Than 1%) | 4.1% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
October 31, 2018 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $499,764) — See accompanying schedule: Unaffiliated issuers (cost $85,094,458) | $87,256,682 | |
Fidelity Central Funds (cost $2,378,845) | 2,378,845 | |
Total Investment in Securities (cost $87,473,303) | $89,635,527 | |
Cash | 12,348 | |
Receivable for investments sold | 108,859 | |
Receivable for fund shares sold | 10,642 | |
Dividends receivable | 71,742 | |
Distributions receivable from Fidelity Central Funds | 2,836 | |
Other receivables | 1,561 | |
Total assets | 89,843,515 | |
Liabilities | ||
Payable for investments purchased | $370,381 | |
Payable for fund shares redeemed | 9,943 | |
Accrued management fee | 34,216 | |
Collateral on securities loaned | 515,747 | |
Total liabilities | 930,287 | |
Net Assets | $88,913,228 | |
Net Assets consist of: | ||
Paid in capital | $84,502,471 | |
Total distributable earnings (loss) | 4,410,757 | |
Net Assets, for 7,889,494 shares outstanding | $88,913,228 | |
Net Asset Value, offering price and redemption price per share ($88,913,228 ÷ 7,889,494 shares) | $11.27 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended October 31, 2018 (Unaudited) | ||
Investment Income | ||
Dividends | $997,201 | |
Income from Fidelity Central Funds | 14,727 | |
Total income | 1,011,928 | |
Expenses | ||
Management fee | $202,273 | |
Independent trustees' fees and expenses | 253 | |
Commitment fees | 111 | |
Total expenses before reductions | 202,637 | |
Expense reductions | (3,695) | |
Total expenses after reductions | 198,942 | |
Net investment income (loss) | 812,986 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 1,591,727 | |
Fidelity Central Funds | (106) | |
Foreign currency transactions | 232 | |
Total net realized gain (loss) | 1,591,853 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 340,867 | |
Assets and liabilities in foreign currencies | 140 | |
Total change in net unrealized appreciation (depreciation) | 341,007 | |
Net gain (loss) | 1,932,860 | |
Net increase (decrease) in net assets resulting from operations | $2,745,846 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended October 31, 2018 (Unaudited) | For the period May 25, 2017 (commencement of operations) to April 30, 2018 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $812,986 | $668,095 |
Net realized gain (loss) | 1,591,853 | 310,259 |
Change in net unrealized appreciation (depreciation) | 341,007 | 1,821,176 |
Net increase (decrease) in net assets resulting from operations | 2,745,846 | 2,799,530 |
Distributions to shareholders | (771,425) | – |
Distributions to shareholders from net investment income | – | (290,555) |
Distributions to shareholders from net realized gain | – | (72,639) |
Total distributions | (771,425) | (363,194) |
Share transactions | ||
Proceeds from sales of shares | 9,152,958 | 95,862,843 |
Reinvestment of distributions | 771,425 | 363,194 |
Cost of shares redeemed | (7,202,679) | (14,445,270) |
Net increase (decrease) in net assets resulting from share transactions | 2,721,704 | 81,780,767 |
Total increase (decrease) in net assets | 4,696,125 | 84,217,103 |
Net Assets | ||
Beginning of period | 84,217,103 | – |
End of period | $88,913,228 | $84,217,103 |
Other Information | ||
Undistributed net investment income end of period | $358,283 | |
Shares | ||
Sold | 787,857 | 8,938,068 |
Issued in reinvestment of distributions | 67,550 | 33,168 |
Redeemed | (621,882) | (1,315,267) |
Net increase (decrease) | 233,525 | 7,655,969 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Large Cap Stock K6 Fund
Six months ended (Unaudited) October 31, | Years endedApril 30, | |
2018 | 2018 A | |
Selected Per–Share Data | ||
Net asset value, beginning of period | $11.00 | $10.00 |
Income from Investment Operations | ||
Net investment income (loss)B | .10 | .16 |
Net realized and unrealized gain (loss) | .27 | .91 |
Total from investment operations | .37 | 1.07 |
Distributions from net investment income | (.05) | (.05) |
Distributions from net realized gain | (.05) | (.01) |
Total distributions | (.10) | (.07)C |
Net asset value, end of period | $11.27 | $11.00 |
Total ReturnD,E | 3.36% | 10.65% |
Ratios to Average Net AssetsF,G | ||
Expenses before reductions | .45%H | .45%H |
Expenses net of fee waivers, if any | .45%H | .45%H |
Expenses net of all reductions | .44%H | .45%H |
Net investment income (loss) | 1.81%H | 1.55%H |
Supplemental Data | ||
Net assets, end of period (000 omitted) | $88,913 | $84,217 |
Portfolio turnover rateI | 48%H | 67%H,J |
A For the period May 25, 2017 (commencement of operations) to April 30, 2018.
B Calculated based on average shares outstanding during the period.
C Total distributions of $.07 per share is comprised of distributions from net investment income of $.052 and distributions from net realized gain of $.013 per share.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
H Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
J Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended October 31, 2018
1. Organization.
Fidelity Large Cap Stock K6 Fund (the Fund) is a fund of Fidelity Concord Street 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.
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 are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – 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. Utilizing these techniques may result in transfers between Level 1 and Level 2. 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 October 31, 2018 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. 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 | $7,247,412 |
Gross unrealized depreciation | (5,259,522) |
Net unrealized appreciation (depreciation) | $1,987,890 |
Tax cost | $87,647,637 |
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
New Rule Issuance. During August 2018, the U.S. Securities and Exchange Commission issued Final Rule Release No. 33-10532, Disclosure Update and Simplification. This Final Rule includes amendments specific to registered investment companies that are intended to eliminate overlap in disclosure requirements between Regulation S-X and GAAP. In accordance with these amendments, certain line-items in the Fund's financial statements have been combined or removed for the current period as outlined in the table below.
Financial Statement | Current Line-Item Presentation | Prior Line-Item Presentation |
Statement of Assets and Liabilities | Total distributable earnings (loss) | Undistributed/Distributions in excess of/Accumulated net investment income (loss) Accumulated/Undistributed net realized gain (loss) Net unrealized appreciation (depreciation) |
Statement of Changes in Net Assets | N/A – removed | Undistributed/Distributions in excess of/Accumulated net investment income (loss) end of period |
Statement of Changes in Net Assets | Distributions to shareholders | Distributions to shareholders from net investment income Distributions to shareholders from net realized gain |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $23,913,594 and $20,847,804, respectively.
Prior Fiscal Year Exchanges In-Kind. During the prior period, investments and cash received in-kind through subscriptions totaled $49,744,521 in exchange for 4,593,796 shares of the Fund. The amount of in-kind exchanges is included in share transactions in the accompanying Statement of Changes in Net Assets. The Fund recognized no gain or loss for federal income tax purposes.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee that is based on an annual rate of .45% of average net assets. Under the management contract, the investment adviser or an affiliate pays all other expenses of the Fund, excluding fees and expenses of the independent Trustees, and certain miscellaneous expenses such as proxy and shareholder meeting expenses.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $740 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.
Prior Fiscal Year Exchanges In-Kind. During the prior period, an affiliated entity completed an exchange in-kind with the Fund. The affiliated entity delivered investments and cash valued at $28,434,880 in exchange for 2,763,351 shares of the Fund. The amount of in-kind exchanges is included in share transactions in the accompanying Statement of Changes in Net Assets. The Fund recognized no gain or loss for federal income tax purposes.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $111 and is reflected in Commitment fees on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. The value of securities loaned to FCM at period end was $241,566. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $4,728, including $2,085 from securities loaned to FCM.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $3,640 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $55.
9. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
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 (May 1, 2018 to October 31, 2018).
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 May 1, 2018 | Ending Account Value October 31, 2018 | Expenses Paid During Period-B May 1, 2018 to October 31, 2018 | |
Actual | .45% | $1,000.00 | $1,033.60 | $2.31 |
Hypothetical-C | $1,000.00 | $1,022.94 | $2.29 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to the 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).
C 5% return per year before expenses
Board Approval of Investment Advisory Contracts
Fidelity Large Cap Stock K6 Fund
At its July 2018 meeting, the Board of Trustees, including the Independent Trustees (together, the Board), voted to continue the management contract with Fidelity Management & Research Company (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund for six months through January 31, 2019, in connection with the reunification of the Fidelity Equity High Income Funds Board, which oversees the fund, and the Sector Portfolios Board.
The Board considered that the approval of the fund's Advisory Contracts will not result in any changes in (i) the investment process or strategies employed in the management of the fund's assets; (ii) the fees and expenses paid by shareholders; (iii) the nature, extent or quality of services provided under the fund's Advisory Contracts; or (iv) the day-to-day management of the fund or the persons primarily responsible for such management. The Board concluded that the fund's Advisory Contracts are fair and reasonable, and that the fund's Advisory Contracts should be renewed, without modification, through January 31, 2019, with the understanding that the Board will consider the annual renewal for a full one year period in January 2019.
In connection with its consideration of future renewals of the fund's Advisory Contracts, the Board will consider: (i) the nature, extent and quality of services provided to the fund, including shareholder and administrative services and investment performance; (ii) the competitiveness of the management fee and total expenses for the fund; (iii) the costs of the services and profitability, including the revenues earned and the expenses incurred in conducting the business of developing, marketing, distributing, managing, administering, and servicing the fund and its shareholders, to the extent applicable, as well as potential fall-out benefits from Fidelity's non-fund businesses; and (iv) whether there have been economies of scale in respect of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is the potential for realization of any further economies.
Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board ultimately concluded that the fund's management fee structure is fair and reasonable, and that the continuation of the fund's Advisory Contracts should be approved.
Corporate Headquarters
245 Summer St.
Boston, MA 02210
www.fidelity.com
LCSK6-SANN-1218
1.9883970.101
Fidelity® Small Cap Stock K6 Fund Semi-Annual Report October 31, 2018 |
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. © 2018 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-Q. Forms N-Q are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Investment Summary (Unaudited)
Top Ten Stocks as of October 31, 2018
% of fund's net assets | |
NICE Systems Ltd. sponsored ADR | 2.7 |
CBIZ, Inc. | 2.4 |
Insperity, Inc. | 2.1 |
Allison Transmission Holdings, Inc. | 2.0 |
Primerica, Inc. | 1.9 |
Ebix, Inc. | 1.9 |
Charles River Laboratories International, Inc. | 1.9 |
Stamps.com, Inc. | 1.9 |
Cable One, Inc. | 1.9 |
SYNNEX Corp. | 1.9 |
20.6 |
Top Five Market Sectors as of October 31, 2018
% of fund's net assets | |
Financials | 18.5 |
Information Technology | 16.8 |
Industrials | 16.5 |
Consumer Discretionary | 16.2 |
Health Care | 15.9 |
Asset Allocation (% of fund's net assets)
As of October 31, 2018* | ||
Stocks | 100.2% | |
Short-Term Investments and Net Other Assets (Liabilities)** | (0.2)% |
* Foreign investments – 21.0%
** Short-Term Investments and Net Other Assets (Liabilities) are not included in the pie chart
Schedule of Investments October 31, 2018 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 100.2% | |||
Shares | Value | ||
COMMUNICATION SERVICES - 2.3% | |||
Interactive Media & Services - 0.2% | |||
Mitula Group Ltd. (a) | 297,602 | $143,308 | |
Media - 2.1% | |||
Cable One, Inc. | 1,871 | 1,675,930 | |
comScore, Inc. (a) | 13,561 | 216,298 | |
1,892,228 | |||
TOTAL COMMUNICATION SERVICES | 2,035,536 | ||
CONSUMER DISCRETIONARY - 16.2% | |||
Distributors - 0.3% | |||
Educational Development Corp. | 19,042 | 233,265 | |
Diversified Consumer Services - 3.0% | |||
Arco Platform Ltd. Class A | 800 | 17,048 | |
Career Education Corp. (a) | 100,531 | 1,445,636 | |
Collectors Universe, Inc. | 23,762 | 342,173 | |
Laureate Education, Inc. Class A (a) | 60,909 | 906,935 | |
2,711,792 | |||
Hotels, Restaurants & Leisure - 2.7% | |||
Choice Hotels International, Inc. | 11,239 | 824,943 | |
MTY Food Group, Inc. | 31,397 | 1,619,875 | |
2,444,818 | |||
Household Durables - 6.1% | |||
Cavco Industries, Inc. (a) | 5,280 | 1,059,221 | |
Helen of Troy Ltd. (a) | 10,720 | 1,330,566 | |
LGI Homes, Inc. (a)(b) | 23,780 | 1,017,546 | |
New Home Co. LLC (a) | 62,130 | 442,987 | |
Skyline Champion Corp. | 12,464 | 297,017 | |
TRI Pointe Homes, Inc. (a) | 112,004 | 1,332,848 | |
5,480,185 | |||
Internet & Direct Marketing Retail - 3.2% | |||
Duluth Holdings, Inc. (a)(b) | 29,780 | 915,139 | |
Kogan.Com Ltd. | 18,900 | 37,877 | |
Points International Ltd. (a) | 15,569 | 193,990 | |
Stamps.com, Inc. (a) | 8,385 | 1,695,195 | |
2,842,201 | |||
Specialty Retail - 0.9% | |||
Boot Barn Holdings, Inc. (a) | 16,126 | 397,990 | |
Winmark Corp. | 2,533 | 389,297 | |
787,287 | |||
TOTAL CONSUMER DISCRETIONARY | 14,499,548 | ||
CONSUMER STAPLES - 3.7% | |||
Beverages - 1.7% | |||
National Beverage Corp. (a)(b) | 15,696 | 1,451,095 | |
Nichols PLC | 2,212 | 38,028 | |
1,489,123 | |||
Food & Staples Retailing - 1.8% | |||
BJ's Wholesale Club Holdings, Inc. | 14,254 | 315,726 | |
Performance Food Group Co. (a) | 23,672 | 694,063 | |
Smart & Final Stores, Inc. (a) | 126,889 | 640,789 | |
1,650,578 | |||
Food Products - 0.0% | |||
Armanino Foods of Distinction | 16,598 | 46,474 | |
Personal Products - 0.2% | |||
BWX Ltd. (b) | 94,370 | 169,743 | |
TOTAL CONSUMER STAPLES | 3,355,918 | ||
ENERGY - 3.7% | |||
Energy Equipment & Services - 1.3% | |||
Dril-Quip, Inc. (a) | 23,102 | 983,221 | |
Profire Energy, Inc. (a) | 76,791 | 175,083 | |
1,158,304 | |||
Oil, Gas & Consumable Fuels - 2.4% | |||
Midstates Petroleum Co., Inc. (a) | 47,344 | 341,350 | |
Murphy Oil Corp. | 32,921 | 1,048,863 | |
World Fuel Services Corp. | 25,277 | 808,864 | |
2,199,077 | |||
TOTAL ENERGY | 3,357,381 | ||
FINANCIALS - 18.5% | |||
Banks - 4.3% | |||
Bank of the Ozarks, Inc. | 29,429 | 805,177 | |
Camden National Corp. | 17,420 | 706,381 | |
First Citizen Bancshares, Inc. | 512 | 218,435 | |
First Hawaiian, Inc. | 22,800 | 564,984 | |
Great Western Bancorp, Inc. | 1,996 | 73,153 | |
Hilltop Holdings, Inc. | 24,187 | 481,321 | |
Plumas Bancorp | 3,999 | 103,574 | |
Popular, Inc. | 11,968 | 622,456 | |
West Bancorp., Inc. | 10,817 | 237,866 | |
3,813,347 | |||
Capital Markets - 4.5% | |||
Ashford, Inc. | 6,110 | 385,174 | |
FactSet Research Systems, Inc. | 2,230 | 498,985 | |
INTL FCStone, Inc. (a) | 27,261 | 1,234,378 | |
Morningstar, Inc. | 12,660 | 1,579,968 | |
OM Asset Management Ltd. | 27,292 | 311,129 | |
4,009,634 | |||
Consumer Finance - 2.0% | |||
Encore Capital Group, Inc. (a)(b) | 36,190 | 919,588 | |
First Cash Financial Services, Inc. | 11,240 | 903,696 | |
1,823,284 | |||
Diversified Financial Services - 0.6% | |||
Cannae Holdings, Inc. (a) | 30,636 | 565,847 | |
Insurance - 3.1% | |||
First American Financial Corp. | 17,386 | 770,721 | |
Investors Title Co. | 1,246 | 226,772 | |
Primerica, Inc. | 15,897 | 1,744,537 | |
2,742,030 | |||
Real Estate Management & Development - 1.3% | |||
The RMR Group, Inc. | 15,172 | 1,151,251 | |
Thrifts & Mortgage Finance - 2.7% | |||
Essent Group Ltd. (a) | 26,869 | 1,059,176 | |
Home Bancorp, Inc. | 2,141 | 85,083 | |
LendingTree, Inc. (a)(b) | 4,480 | 903,571 | |
Southern Missouri Bancorp, Inc. | 5,128 | 172,660 | |
Timberland Bancorp, Inc. | 7,449 | 216,170 | |
2,436,660 | |||
TOTAL FINANCIALS | 16,542,053 | ||
HEALTH CARE - 15.9% | |||
Biotechnology - 0.5% | |||
BioGaia AB | 1,000 | 40,487 | |
Bioventix PLC | 1,089 | 39,671 | |
Essex Bio-Technology Ltd. | 146,000 | 94,951 | |
Ligand Pharmaceuticals, Inc. Class B (a) | 664 | 109,434 | |
Shanghai Haohai Biological Technology Co. Ltd. Class H | 24,100 | 126,002 | |
410,545 | |||
Health Care Equipment & Supplies - 3.6% | |||
Boule Diagnostics AB | 1,300 | 10,228 | |
Kewaunee Scientific Corp. | 1,494 | 42,728 | |
LivaNova PLC (a) | 12,696 | 1,421,825 | |
Utah Medical Products, Inc. | 4,919 | 428,838 | |
Varex Imaging Corp. (a) | 50,515 | 1,311,369 | |
3,214,988 | |||
Health Care Providers & Services - 5.2% | |||
Chemed Corp. | 2,225 | 677,134 | |
Guardant Health, Inc. | 623 | 20,858 | |
HealthSouth Corp. | 18,947 | 1,275,133 | |
Magellan Health Services, Inc. (a) | 8,825 | 574,155 | |
MEDNAX, Inc. (a) | 26,498 | 1,094,102 | |
Ship Healthcare Holdings, Inc. | 22,000 | 796,473 | |
Viemed Healthcare, Inc. (a) | 43,580 | 243,316 | |
4,681,171 | |||
Health Care Technology - 1.5% | |||
Cegedim SA (a) | 46 | 1,151 | |
Inovalon Holdings, Inc. Class A (a)(b) | 145,617 | 1,370,256 | |
1,371,407 | |||
Life Sciences Tools & Services - 3.3% | |||
Charles River Laboratories International, Inc. (a) | 14,017 | 1,707,551 | |
ICON PLC (a) | 9,303 | 1,284,558 | |
2,992,109 | |||
Pharmaceuticals - 1.8% | |||
Alliance Pharma PLC | 925,274 | 790,034 | |
BioSyent, Inc. (a) | 38,490 | 272,788 | |
Dechra Pharmaceuticals PLC | 15,174 | 443,379 | |
Mallinckrodt PLC (a) | 4,509 | 112,996 | |
1,619,197 | |||
TOTAL HEALTH CARE | 14,289,417 | ||
INDUSTRIALS - 16.5% | |||
Building Products - 1.9% | |||
Continental Building Products, Inc. (a) | 37,546 | 1,044,154 | |
Reliance Worldwide Corp. Ltd. | 2,754 | 9,771 | |
Universal Forest Products, Inc. | 25,122 | 710,199 | |
1,764,124 | |||
Commercial Services & Supplies - 2.4% | |||
Boyd Group Income Fund | 13,892 | 1,269,586 | |
Loomis AB (B Shares) | 20,581 | 636,469 | |
VSE Corp. | 7,303 | 229,022 | |
2,135,077 | |||
Construction & Engineering - 1.0% | |||
AECOM (a) | 32,809 | 956,054 | |
Machinery - 4.6% | |||
AGCO Corp. | 16,503 | 924,828 | |
Allison Transmission Holdings, Inc. | 41,234 | 1,817,595 | |
L.B. Foster Co. Class A (a) | 11,080 | 201,434 | |
Middleby Corp. (a)(b) | 10,409 | 1,168,931 | |
4,112,788 | |||
Professional Services - 5.6% | |||
Asiakastieto Group Oyj (c) | 1,200 | 39,416 | |
Barrett Business Services, Inc. | 7,320 | 460,574 | |
CBIZ, Inc. (a) | 98,037 | 2,174,461 | |
Franklin Covey Co. (a) | 12,626 | 282,065 | |
Insperity, Inc. | 16,996 | 1,867,011 | |
TriNet Group, Inc. (a) | 3,780 | 177,622 | |
5,001,149 | |||
Trading Companies & Distributors - 0.6% | |||
Textainer Group Holdings Ltd. (a) | 44,131 | 517,657 | |
Transportation Infrastructure - 0.4% | |||
Macquarie Infrastructure Co. LLC | 9,211 | 340,346 | |
TOTAL INDUSTRIALS | 14,827,195 | ||
INFORMATION TECHNOLOGY - 16.8% | |||
Electronic Equipment & Components - 1.9% | |||
SYNNEX Corp. | 21,509 | 1,669,313 | |
Internet Software & Services - 0.3% | |||
MSL Solutions Ltd. (a) | 302,200 | 38,521 | |
Scout24 AG (c) | 4,800 | 199,310 | |
237,831 | |||
IT Services - 6.5% | |||
Cass Information Systems, Inc. | 7,929 | 524,107 | |
Computer Services, Inc. (b) | 5,551 | 277,939 | |
CoreLogic, Inc. (a) | 35,886 | 1,457,689 | |
Elastic NV | 200 | 13,600 | |
EVO Payments, Inc. Class A | 1,700 | 40,358 | |
Hackett Group, Inc. | 33,924 | 694,424 | |
Netcompany Group A/S | 1,400 | 46,303 | |
Presidio, Inc. | 49,783 | 667,092 | |
Prodware | 7,815 | 86,304 | |
Sylogist Ltd. | 40,728 | 417,660 | |
WEX, Inc. (a) | 9,034 | 1,589,623 | |
5,815,099 | |||
Software - 8.1% | |||
Cardlytics, Inc. (a) | 3,600 | 76,176 | |
CyberArk Software Ltd. (a) | 1,192 | 81,366 | |
Ebix, Inc. (b) | 30,123 | 1,726,349 | |
Enghouse Systems Ltd. | 9,752 | 539,732 | |
Hansen Technologies Ltd. | 188,649 | 462,228 | |
j2 Global, Inc. | 15,048 | 1,096,096 | |
Micro Focus International PLC | 36,060 | 559,010 | |
NICE Systems Ltd. sponsored ADR (a) | 22,411 | 2,374,222 | |
QAD, Inc. Class A | 8,269 | 350,854 | |
StoneCo Ltd. Class A (a) | 400 | 11,476 | |
Vitec Software Group AB | 3,612 | 33,076 | |
7,310,585 | |||
Technology Hardware, Storage & Peripherals - 0.0% | |||
Astro-Med, Inc. | 1,700 | 32,844 | |
TOTAL INFORMATION TECHNOLOGY | 15,065,672 | ||
MATERIALS - 3.6% | |||
Chemicals - 2.5% | |||
Core Molding Technologies, Inc. | 10,900 | 74,229 | |
Innospec, Inc. | 23,436 | 1,568,337 | |
NewMarket Corp. | 1,326 | 511,783 | |
Northern Technologies International Corp. | 3,420 | 110,637 | |
2,264,986 | |||
Containers & Packaging - 1.1% | |||
Silgan Holdings, Inc. | 28,268 | 679,280 | |
UFP Technologies, Inc. (a) | 7,089 | 244,712 | |
923,992 | |||
TOTAL MATERIALS | 3,188,978 | ||
REAL ESTATE - 2.4% | |||
Equity Real Estate Investment Trusts (REITs) - 1.9% | |||
CoreSite Realty Corp. | 4,419 | 414,767 | |
EPR Properties | 5,040 | 346,450 | |
PS Business Parks, Inc. | 957 | 124,984 | |
Store Capital Corp. | 28,185 | 818,211 | |
1,704,412 | |||
Real Estate Management & Development - 0.5% | |||
Consolidated-Tomoka Land Co. | 5,936 | 343,813 | |
FRP Holdings, Inc. (a) | 2,542 | 123,211 | |
467,024 | |||
TOTAL REAL ESTATE | 2,171,436 | ||
UTILITIES - 0.6% | |||
Gas Utilities - 0.6% | |||
Star Gas Partners LP | 51,591 | 493,210 | |
TOTAL COMMON STOCKS | |||
(Cost $93,158,920) | 89,826,344 | ||
Money Market Funds - 6.1% | |||
Fidelity Securities Lending Cash Central Fund 2.23% (d)(e) | |||
(Cost $5,460,142) | 5,459,596 | 5,460,142 | |
TOTAL INVESTMENT IN SECURITIES - 106.3% | |||
(Cost $98,619,062) | 95,286,486 | ||
NET OTHER ASSETS (LIABILITIES) - (6.3)% | (5,672,042) | ||
NET ASSETS - 100% | $89,614,444 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $238,726 or 0.3% of net assets.
(d) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
(e) Investment made with cash collateral received from securities on loan.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
Fidelity Cash Central Fund | $7,143 |
Fidelity Securities Lending Cash Central Fund | 9,808 |
Total | $16,951 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations if applicable.
Investment Valuation
The following is a summary of the inputs used, as of October 31, 2018, 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 | $2,035,536 | $2,035,536 | $-- | $-- |
Consumer Discretionary | 14,499,548 | 14,499,548 | -- | -- |
Consumer Staples | 3,355,918 | 3,355,918 | -- | -- |
Energy | 3,357,381 | 3,357,381 | -- | -- |
Financials | 16,542,053 | 16,542,053 | -- | -- |
Health Care | 14,289,417 | 14,289,417 | -- | -- |
Industrials | 14,827,195 | 14,827,195 | -- | -- |
Information Technology | 15,065,672 | 14,506,662 | 559,010 | -- |
Materials | 3,188,978 | 3,188,978 | -- | -- |
Real Estate | 2,171,436 | 2,171,436 | -- | -- |
Utilities | 493,210 | 493,210 | -- | -- |
Money Market Funds | 5,460,142 | 5,460,142 | -- | -- |
Total Investments in Securities: | $95,286,486 | $94,727,476 | $559,010 | $-- |
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
United States of America | 79.0% |
Canada | 5.1% |
United Kingdom | 4.1% |
Bermuda | 3.3% |
Israel | 2.8% |
Ireland | 1.5% |
Australia | 1.1% |
Others (Individually Less Than 1%) | 3.1% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
October 31, 2018 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $5,364,667) — See accompanying schedule: Unaffiliated issuers (cost $93,158,920) | $89,826,344 | |
Fidelity Central Funds (cost $5,460,142) | 5,460,142 | |
Total Investment in Securities (cost $98,619,062) | $95,286,486 | |
Receivable for investments sold | 91,086 | |
Receivable for fund shares sold | 32,062 | |
Dividends receivable | 24,544 | |
Distributions receivable from Fidelity Central Funds | 3,050 | |
Other receivables | 4,070 | |
Total assets | 95,441,298 | |
Liabilities | ||
Payable to custodian bank | $151,121 | |
Payable for investments purchased | 106,900 | |
Payable for fund shares redeemed | 61,592 | |
Accrued management fee | 46,983 | |
Collateral on securities loaned | 5,460,258 | |
Total liabilities | 5,826,854 | |
Net Assets | $89,614,444 | |
Net Assets consist of: | ||
Paid in capital | $89,368,708 | |
Total distributable earnings (loss) | 245,736 | |
Net Assets, for 8,409,193 shares outstanding | $89,614,444 | |
Net Asset Value, offering price and redemption price per share ($89,614,444 ÷ 8,409,193 shares) | $10.66 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended October 31, 2018 (Unaudited) | ||
Investment Income | ||
Dividends | $455,078 | |
Income from Fidelity Central Funds | 16,951 | |
Total income | 472,029 | |
Expenses | ||
Management fee | $300,630 | |
Independent trustees' fees and expenses | 281 | |
Commitment fees | 125 | |
Total expenses before reductions | 301,036 | |
Expense reductions | (6,982) | |
Total expenses after reductions | 294,054 | |
Net investment income (loss) | 177,975 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 3,446,239 | |
Fidelity Central Funds | (124) | |
Foreign currency transactions | 1,445 | |
Total net realized gain (loss) | 3,447,560 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | (6,025,785) | |
Assets and liabilities in foreign currencies | 648 | |
Total change in net unrealized appreciation (depreciation) | (6,025,137) | |
Net gain (loss) | (2,577,577) | |
Net increase (decrease) in net assets resulting from operations | $(2,399,602) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended October 31, 2018 (Unaudited) | For the period May 25, 2017 (commencement of operations) to April 30, 2018 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $177,975 | $255,669 |
Net realized gain (loss) | 3,447,560 | 533,022 |
Change in net unrealized appreciation (depreciation) | (6,025,137) | 2,692,391 |
Net increase (decrease) in net assets resulting from operations | (2,399,602) | 3,481,082 |
Distributions to shareholders | (504,875) | – |
Distributions to shareholders from net investment income | – | (144,088) |
Distributions to shareholders from net realized gain | – | (186,781) |
Total distributions | (504,875) | (330,869) |
Share transactions | ||
Proceeds from sales of shares | 4,768,884 | 103,510,837 |
Reinvestment of distributions | 504,875 | 330,869 |
Cost of shares redeemed | (9,279,977) | (10,466,780) |
Net increase (decrease) in net assets resulting from share transactions | (4,006,218) | 93,374,926 |
Total increase (decrease) in net assets | (6,910,695) | 96,525,139 |
Net Assets | ||
Beginning of period | 96,525,139 | – |
End of period | $89,614,444 | $96,525,139 |
Other Information | ||
Undistributed net investment income end of period | $99,776 | |
Shares | ||
Sold | 412,579 | 9,698,327 |
Issued in reinvestment of distributions | 43,374 | 30,411 |
Redeemed | (809,570) | (965,928) |
Net increase (decrease) | (353,617) | 8,762,810 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Small Cap Stock K6 Fund
Six months ended (Unaudited) October 31, | Years endedApril 30, | |
2018 | 2018 A | |
Selected Per–Share Data | ||
Net asset value, beginning of period | $11.02 | $10.00 |
Income from Investment Operations | ||
Net investment income (loss)B | .02 | .06 |
Net realized and unrealized gain (loss) | (.32) | 1.02 |
Total from investment operations | (.30) | 1.08 |
Distributions from net investment income | (.01) | (.03) |
Distributions from net realized gain | (.05) | (.04) |
Total distributions | (.06) | (.06)C |
Net asset value, end of period | $10.66 | $11.02 |
Total ReturnD,E | (2.78)% | 10.83% |
Ratios to Average Net AssetsF,G | ||
Expenses before reductions | .60%H | .60%H |
Expenses net of fee waivers, if any | .60%H | .60%H |
Expenses net of all reductions | .59%H | .59%H |
Net investment income (loss) | .36%H | .56%H |
Supplemental Data | ||
Net assets, end of period (000 omitted) | $89,614 | $96,525 |
Portfolio turnover rateI | 78%H | 90%H,J |
A For the period May 25, 2017 (commencement of operations) to April 30, 2018.
B Calculated based on average shares outstanding during the period.
C Total distributions of $.06 per share is comprised of distributions from net investment income of $.027 and distributions from net realized gain of $.035 per share.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
H Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
J Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended October 31, 2018
1. Organization.
Fidelity Small Cap Stock K6 Fund (the Fund) is a fund of Fidelity Concord Street 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.
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 are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – 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. Utilizing these techniques may result in transfers between Level 1 and Level 2. 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 October 31, 2018 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. 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 partnerships, 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 | $7,425,507 |
Gross unrealized depreciation | (10,770,059) |
Net unrealized appreciation (depreciation) | $(3,344,552) |
Tax cost | $98,631,038 |
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
New Rule Issuance. During August 2018, the U.S. Securities and Exchange Commission issued Final Rule Release No. 33-10532, Disclosure Update and Simplification. This Final Rule includes amendments specific to registered investment companies that are intended to eliminate overlap in disclosure requirements between Regulation S-X and GAAP. In accordance with these amendments, certain line-items in the Fund's financial statements have been combined or removed for the current period as outlined in the table below.
Financial Statement | Current Line-Item Presentation | Prior Line-Item Presentation |
Statement of Assets and Liabilities | Total distributable earnings (loss) | Undistributed/Distributions in excess of/Accumulated net investment income (loss) Accumulated/Undistributed net realized gain (loss) Net unrealized appreciation (depreciation) |
Statement of Changes in Net Assets | N/A – removed | Undistributed/Distributions in excess of/Accumulated net investment income (loss) end of period |
Statement of Changes in Net Assets | Distributions to shareholders | Distributions to shareholders from net investment income Distributions to shareholders from net realized gain |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $38,382,703 and $41,148,724, respectively.
Prior Fiscal Year Exchanges In-Kind. During the prior period, investments and cash received in-kind through subscriptions totaled $49,431,374 in exchange for 4,449,152 shares of the Fund. The amount of in-kind exchanges is included in share transactions in the accompanying Statement of Changes in Net Assets. The Fund recognized no gain or loss for federal income tax purposes.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee that is based on an annual rate of .60% of average net assets. Under the management contract, the investment adviser or an affiliate pays all other expenses of the Fund, excluding fees and expenses of the independent Trustees, and certain miscellaneous expenses such as proxy and shareholder meeting expenses.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $1,265 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.
Prior Fiscal Year Exchanges In-Kind. During the prior period, an affiliated entity completed an exchange in-kind with the Fund. The affiliated entity delivered investments and cash, valued at $46,842,473 in exchange for 4,578,932 shares of the Fund. The amount of in-kind exchanges is included in share transactions in the accompanying Statement of Changes in Net Assets. The Fund recognized no gain or loss for federal income tax purposes.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $125 and is reflected in Commitment fees on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. The value of securities loaned to FCM at period end was $953,233. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $9,808, including $736 from securities loaned to FCM.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $6,957 for the period.
In addition, through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's expenses by $25.
9. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Shareholder Expense Example
As a shareholder of a 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 Funds 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 (May 1, 2018 to October 31, 2018).
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 May 1, 2018 | Ending Account Value October 31, 2018 | Expenses Paid During Period-B May 1, 2018 to October 31, 2018 | |
Actual | .60% | $1,000.00 | $972.20 | $2.98 |
Hypothetical-C | $1,000.00 | $1,022.18 | $3.06 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to the 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).
C 5% return per year before expenses
Board Approval of Investment Advisory Contracts
Fidelity Small Cap Stock K6 Fund
At its July 2018 meeting, the Board of Trustees, including the Independent Trustees (together, the Board), voted to continue the management contract with Fidelity Management & Research Company (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund for six months through January 31, 2019, in connection with the reunification of the Fidelity Equity High Income Funds Board, which oversees the fund, and the Sector Portfolios Board.
The Board considered that the approval of the fund's Advisory Contracts will not result in any changes in (i) the investment process or strategies employed in the management of the fund's assets; (ii) the fees and expenses paid by shareholders; (iii) the nature, extent or quality of services provided under the fund's Advisory Contracts; or (iv) the day-to-day management of the fund or the persons primarily responsible for such management. The Board concluded that the fund's Advisory Contracts are fair and reasonable, and that the fund's Advisory Contracts should be renewed, without modification, through January 31, 2019, with the understanding that the Board will consider the annual renewal for a full one year period in January 2019.
In connection with its consideration of future renewals of the fund's Advisory Contracts, the Board will consider: (i) the nature, extent and quality of services provided to the fund, including shareholder and administrative services and investment performance; (ii) the competitiveness of the management fee and total expenses for the fund; (iii) the costs of the services and profitability, including the revenues earned and the expenses incurred in conducting the business of developing, marketing, distributing, managing, administering, and servicing the fund and its shareholders, to the extent applicable, as well as potential fall-out benefits from Fidelity's non-fund businesses; and (iv) whether there have been economies of scale in respect of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is the potential for realization of any further economies.
Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board ultimately concluded that the fund's management fee structure is fair and reasonable, and that the continuation of the fund's Advisory Contracts should be approved.
Corporate Headquarters
245 Summer St.
Boston, MA 02210
www.fidelity.com
SLCXK6-SANN-1218
1.9883974.101
Item 2.
Code of Ethics
Not applicable.
Item 3.
Audit Committee Financial Expert
Not applicable.
Item 4.
Principal Accountant Fees and Services
Not applicable.
Item 5.
Audit Committee of Listed Registrants
Not applicable.
Item 6.
Investments
(a)
Not applicable.
(b)
Not applicable
Item 7.
Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not applicable.
Item 8.
Portfolio Managers of Closed-End Management Investment Companies
Not applicable.
Item 9.
Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
Not applicable.
Item 10.
Submission of Matters to a Vote of Security Holders
There were no material changes to the procedures by which shareholders may recommend nominees to the Fidelity Concord Street 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 Fidelity Concord Street Trust’s (the “Trust”) disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act) provide reasonable
assurances that material information relating to the Trust is made known to them by the appropriate persons, based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this report.
(a)(ii) There was no change in the Trust’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act) that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Trust’s internal control over financial reporting.
Item 12.
Disclosure of Securities Lending Activities for Closed-End Management
Investment Companies
Not applicable.
Item 13.
Exhibits
(a) | (1) | Not applicable. |
(a) | (2) | 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 Concord Street Trust
By: | /s/Stacie M. Smith |
Stacie M. Smith | |
President and Treasurer | |
Date: | December 26, 2018 |
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: | December 26, 2018 |
By: | /s/John J. Burke III |
John J. Burke III | |
Chief Financial Officer | |
Date: | December 26, 2018 |