Notes
to
Financial Statements
For the period ended January 31, 2014 (Unaudited)
(Amounts in thousands except percentages)
1. Organization.
Fidelity Advisor® Leveraged Company Stock Fund (the Fund) is a fund of Fidelity Advisor Series I (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 August 13, 2013. The Fund
offers Class A, Class T, Class C, Institutional Class and Class Z shares, each of which, along with Class B shares, has equal rights as to assets and
voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has
exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding
period of seven years from the initial date of purchase.
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 .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the
SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The 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
Semiannual Report
3. Significant Accounting Policies - continued
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. In accordance with valuation
policies and procedures approved by the Board of Trustees (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 Fidelity Management & Research Company (FMR) Fair Value Committee (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 is responsible for
approving and reporting to the Board all fair value determinations.
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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Investment Valuation - continued
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 January 31, 2014, is included at the end of the Fund's Schedule of Investments.
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 may 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. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax
filings or other correspondence relating to the underlying investment. Interest income and distributions from the Fidelity Central Funds are accrued
as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Debt obligations may
be placed on non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivables when the
collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual
status when the issuer resumes interest payments or when collectability of interest is reasonably assured.
Semiannual Report
3. Significant Accounting Policies - continued
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.
Distributions are declared and recorded on the ex-dividend date. Income dividends 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, market discount, equity-debt classifications, capital loss carryforwards and
losses deferred due to wash sales and excise tax regulations.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
|
Gross unrealized appreciation
|
$ 1,508,719
|
|
Gross unrealized depreciation
|
(117,993
)
|
|
Net unrealized appreciation (depreciation) on securities and other investments
|
$ 1,390,726
|
|
|
|
|
Tax cost
|
$ 3,122,655
|
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited.
Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in
taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that
expire. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of prior fiscal period end
and is subject to adjustment.
|
Fiscal year of expiration
|
|
|
2018
|
$ (358,992
)
|
Restricted Securities.
The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally
may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve
time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is
included at the end of the Fund's Schedule of Investments.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $275,490 and $236,074, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee.
Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment
management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate
that is based on an annual rate of .35% of the Fund's average net assets and an annualized group fee rate that averaged .25% 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
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Management Fee - continued
investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as
assets under management increase and increases as assets under management decrease. For the reporting period, the total annualized management fee rate was .60% of the Fund's average net assets.
Distribution and Service Plan Fees.
In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service
Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total
fees and amounts retained by FDC were as follows:
|
|
Distribution
Fee
|
Service
Fee
|
Total Fees
|
Retained
by FDC
|
|
Class A
|
-%
|
.25%
|
$ 1,996
|
$ 58
|
|
Class T
|
.25%
|
.25%
|
2,521
|
-
|
|
Class B
|
.75%
|
.25%
|
377
|
284
|
|
Class C
|
.75%
|
.25%
|
2,763
|
332
|
|
|
|
|
$ 7,657
|
$ 674
|
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 T 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 T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00%
for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
|
|
Retained
by FDC
|
|
Class A
|
$ 189
|
|
Class T
|
17
|
|
Class B
*
|
17
|
|
Class C
*
|
11
|
|
|
$ 234
|
*
When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
5. Fees and Other Transactions with Affiliates - continued
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
Average
Net Assets
*
|
|
Class A
|
$ 1,527
|
.19
|
|
Class T
|
911
|
.18
|
|
Class B
|
90
|
.24
|
|
Class C
|
527
|
.19
|
|
Institutional Class
|
946
|
.18
|
|
Class Z
|
1
|
.05
|
|
|
$ 4,002
|
|
*
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.
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 $9 for the period.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be
utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay
commitment fees on its pro-rata portion of the line of credit, which amounted to $4 and is reflected in Miscellaneous expenses on the Statement of
Operations. During the period, there were no borrowings on this line of credit.
Semiannual Report
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. 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 $3,245. 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 $286, including one hundred fifty-eight dollars from securities loaned to FCM.
8. Expense Reductions.
The investment adviser voluntarily agreed to reimburse a portion of the Advisor Leveraged Company Stock Fund's Class A, Class T, Class B, Class C
and Institutional Class operating expenses. During the period, this reimbursement reduced expenses as follows:
|
|
Reimbursement
|
|
Class A
|
$ 5
|
|
Class T
|
4
|
|
Class B
|
-*
|
|
Class C
|
2
|
|
Institutional Class
|
3
|
|
|
$ 14
|
*
Amount represents two hundred fifty-nine dollars.
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 $26 for the period.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
|
|
Six months ended
January 31,
2014
A
|
Year ended
July 31,
2013
|
|
From net investment income
|
|
|
|
Class A
|
$ 5,026
|
$ 1,121
|
|
Class T
|
905
|
84
|
|
Institutional Class
|
5,634
|
1,391
|
|
Class Z
|
10
|
-
|
|
Total
|
$ 11,575
|
$ 2,596
|
A
Distributions for Class Z are for the period August 13, 2013 (commencement of sale of shares) to January 31, 2014
.
10. Share Transactions.
Transactions for each class of shares were as follows:
|
|
Shares
|
Dollars
|
|
|
Six months ended January
31,
2014
A
|
Year ended
July 31,
2013
|
Six months ended January
31,
2014
A
|
Year ended
July 31,
2013
|
|
Class A
|
|
|
|
|
|
Shares sold
|
5,363
|
7,818
|
$ 272,948
|
$ 326,978
|
|
Reinvestment of distributions
|
94
|
27
|
4,657
|
1,036
|
|
Shares redeemed
|
(3,765
)
|
(9,447
)
|
(191,595
)
|
(384,545
)
|
|
Net increase (decrease)
|
1,692
|
(1,602
)
|
$ 86,010
|
$ (56,531
)
|
|
Class T
|
|
|
|
|
|
Shares sold
|
2,302
|
6,400
|
$ 114,357
|
$ 261,455
|
|
Reinvestment of distributions
|
18
|
2
|
845
|
79
|
|
Shares redeemed
|
(4,413
)
|
(7,533
)
|
(219,308
)
|
(301,128
)
|
|
Net increase (decrease)
|
(2,093
)
|
(1,131
)
|
$ (104,106
)
|
$ (39,594
)
|
|
Class B
|
|
|
|
|
|
Shares sold
|
10
|
34
|
$ 452
|
$ 1,361
|
|
Shares redeemed
|
(339
)
|
(874
)
|
(16,090
)
|
(33,817
)
|
|
Net increase (decrease)
|
(329
)
|
(840
)
|
$ (15,638
)
|
$ (32,456
)
|
|
Class C
|
|
|
|
|
|
Shares sold
|
972
|
1,725
|
$ 46,353
|
$ 69,238
|
|
Shares redeemed
|
(796
)
|
(2,699
)
|
(37,803
)
|
(102,735
)
|
|
Net increase (decrease)
|
176
|
(974
)
|
$ 8,550
|
$ (33,497
)
|
|
Institutional Class
|
|
|
|
|
|
Shares sold
|
3,933
|
9,112
|
$ 203,071
|
$ 385,989
|
|
Reinvestment of distributions
|
93
|
29
|
4,709
|
1,155
|
|
Shares redeemed
|
(2,926
)
|
(7,736
)
|
(150,795
)
|
(315,321
)
|
|
Net increase (decrease)
|
1,100
|
1,405
|
$ 56,985
|
$ 71,823
|
Semiannual Report
10. Share Transactions - continued
|
|
Shares
|
Dollars
|
|
|
Six months ended January
31,
2014
A
|
Year ended
July 31,
2013
|
Six months ended January
31,
2014
A
|
Year ended
July 31,
2013
|
|
Class Z
|
|
|
|
|
|
Shares sold
|
160
|
-
|
$ 8,524
|
$ -
|
|
Reinvestment of distributions
|
-*
|
-
|
10
|
-
|
|
Shares redeemed
|
(9
)
|
-
|
(466
)
|
-
|
|
Net increase (decrease)
|
151
|
-
|
$ 8,068
|
$ -
|
A
Share transactions for Class Z are for the period August 13, 2013 (commencement of sale of shares) to January 31, 2014.
*
Amount represents one hundred eighty-seven shares.
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.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
JPMorgan Chase Bank
New York, NY
(Fidelity Investment logo)(registered trademark)
ALSF-USAN-0314
1.786797.111
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor
®
Leveraged Company Stock
Fund - Institutional Class
Semiannual Report
January 31, 2014
(Fidelity Cover Art)
Contents
|
Shareholder Expense Example
|
(Click
Here)
|
An example of shareholder expenses.
|
|
Investment Changes
|
(Click
Here)
|
A summary of major shifts in the fund's investments over the past
six months.
|
|
Investments
|
(Click
Here)
|
A complete list of the fund's investments with their market values.
|
|
Financial Statements
|
(Click
Here)
|
Statements of assets and liabilities, operations, and changes in net
assets, as well as financial highlights.
|
|
Notes
|
(Click
Here)
|
Notes to the financial statements.
|
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. © 2014 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.advisor.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.
Semiannual Report
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 (August 1, 2013
to January 31, 2014) for Class A, Class T, Class B, Class C and Institutional Class and for the period (August 13, 2013 to January 31, 2014) for Class Z.
The hypothetical expense Example is based on an investment of $1,000 invested for the one-half year period (August 1, 2013 to January 31, 2014).
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.
Semiannual Report
Shareholder Expense Example - continued
|
|
Annualized Expense Ratio
B
|
Beginning
Account Value
|
Ending
Account Value
January 31, 2014
|
Expenses Paid
During Period
|
|
Class A
|
1.08%
|
|
|
|
|
Actual
|
|
$ 1,000.00
|
$ 1,071.90
|
$ 5.64
C
|
|
Hypothetical
A
|
|
$ 1,000.00
|
$ 1,019.76
|
$ 5.50
D
|
|
Class T
|
1.32%
|
|
|
|
|
Actual
|
|
$ 1,000.00
|
$ 1,070.50
|
$ 6.89
C
|
|
Hypothetical
A
|
|
$ 1,000.00
|
$ 1,018.55
|
$ 6.72
D
|
|
Class B
|
1.88%
|
|
|
|
|
Actual
|
|
$ 1,000.00
|
$ 1,067.50
|
$ 9.80
C
|
|
Hypothetical
A
|
|
$ 1,000.00
|
$ 1,015.73
|
$ 9.55
D
|
|
Class C
|
1.83%
|
|
|
|
|
Actual
|
|
$ 1,000.00
|
$ 1,067.90
|
$ 9.54
C
|
|
Hypothetical
A
|
|
$ 1,000.00
|
$ 1,015.98
|
$ 9.30
D
|
|
Institutional Class
|
.82%
|
|
|
|
|
Actual
|
|
$ 1,000.00
|
$ 1,073.20
|
$ 4.28
C
|
|
Hypothetical
A
|
|
$ 1,000.00
|
$ 1,021.07
|
$ 4.18
D
|
|
Class Z
|
.68%
|
|
|
|
|
Actual
|
|
$ 1,000.00
|
$ 1,070.00
|
$ 3.32
C
|
|
Hypothetical
A
|
|
$ 1,000.00
|
$ 1,021.78
|
$ 3.47
D
|
A
5% return per year before expenses
B
Annualized expense ratio reflects expenses net of applicable fee waivers.
C
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 T, Class B, Class C and Institutional Class and multiplied by 172/365 (to reflect
the period August 13, 2013 to January 31, 2014) for Class Z. The fees and expenses of the underlying Fidelity Central Funds in which the
Fund invests are not included in each Class' annualized expense ratio.
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). The fees and expenses of the underlying Fidelity Central Funds in which the Fund invests are not included in each Class' annualized expense ratio.
Semiannual Report
Investment Changes (Unaudited)
|
Top Ten Stocks as of January 31, 2014
|
|
|
% of fund's
net assets
|
% of fund's net assets
6 months ago
|
|
LyondellBasell Industries NV Class A
|
8.2
|
7.2
|
|
Comcast Corp. Class A
|
4.0
|
3.6
|
|
Service Corp. International
|
3.6
|
4.2
|
|
General Motors Co.
|
2.8
|
3.1
|
|
Bank of America Corp.
|
2.6
|
2.1
|
|
Boston Scientific Corp.
|
2.5
|
2.0
|
|
Ford Motor Co.
|
2.4
|
2.9
|
|
Delta Air Lines, Inc.
|
2.0
|
1.5
|
|
The AES Corp.
|
1.9
|
1.8
|
|
Rock-Tenn Co. Class A
|
1.7
|
1.7
|
|
|
31.7
|
|
|
Top Five Market Sectors as of January 31, 2014
|
|
|
% of fund's
net assets
|
% of fund's net assets
6 months ago
|
|
Consumer Discretionary
|
23.6
|
26.0
|
|
Materials
|
12.3
|
11.3
|
|
Financials
|
11.4
|
9.9
|
|
Health Care
|
10.9
|
10.6
|
|
Industrials
|
10.7
|
11.2
|
|
Asset Allocation (% of fund's net assets)
|
|
As of January 31, 2014
*
|
As of July 31, 2013
**
|
|
Stocks 91.7%
|
|
|
Stocks 91.2%
|
|
|
Bonds 0.6%
|
|
|
Bonds 0.3%
|
|
|
Convertible
Securities 0.1%
|
|
|
Convertible
Securities 0.1%
|
|
|
Other Investments 0.0%
|
|
|
Other Investments 0.1%
|
|
|
Short-Term
Investments and
Net Other Assets (Liabilities) 7.6%
|
|
|
Short-Term
Investments and
Net Other Assets (Liabilities) 8.3%
|
|
|
*
Foreign investments
|
14.9%
|
|
**
Foreign investments
|
13.4%
|
|
Semiannual Report
Investments January 31, 2014 (Unaudited)
Showing Percentage of Net Assets
|
Common Stocks - 91.5%
|
|
|
Shares
|
|
Value (000s)
|
|
CONSUMER DISCRETIONARY - 23.0%
|
|
Auto Components - 1.9%
|
|
Delphi Automotive PLC
|
446,000
|
|
$ 27,157
|
|
Tenneco, Inc. (a)
|
630,300
|
|
35,826
|
|
TRW Automotive Holdings Corp. (a)
|
298,400
|
|
22,126
|
|
|
|
85,109
|
|
Automobiles - 5.7%
|
|
Ford Motor Co.
|
7,095,667
|
|
106,151
|
|
General Motors Co.
|
3,475,822
|
|
125,408
|
|
General Motors Co.:
|
|
|
|
|
warrants 7/10/16 (a)
|
384,439
|
|
10,245
|
|
warrants 7/10/19 (a)
|
384,439
|
|
7,258
|
|
Motors Liquidation Co. GUC Trust (a)
|
100,812
|
|
3,110
|
|
|
|
252,172
|
|
Diversified Consumer Services - 3.6%
|
|
Service Corp. International
|
8,897,167
|
|
157,480
|
|
Hotels, Restaurants & Leisure - 0.1%
|
|
Penn National Gaming, Inc. (a)
|
297,660
|
|
3,492
|
|
Station Holdco LLC unit (g)(h)
|
116,342
|
|
14
|
|
|
|
3,506
|
|
Household Durables - 2.1%
|
|
Hovnanian Enterprises, Inc. Class A (a)(e)
|
1,181,000
|
|
7,121
|
|
Lennar Corp. Class A
|
576,600
|
|
23,156
|
|
Newell Rubbermaid, Inc.
|
1,935,853
|
|
59,818
|
|
|
|
90,095
|
|
Media - 6.8%
|
|
Cinemark Holdings, Inc.
|
2,129,655
|
|
62,420
|
|
Comcast Corp. Class A
|
3,208,166
|
|
174,685
|
|
Gray Television, Inc. (a)(f)
|
3,167,163
|
|
36,042
|
|
Nexstar Broadcasting Group, Inc. Class A
|
478,402
|
|
22,987
|
|
|
|
296,134
|
|
Specialty Retail - 2.8%
|
|
Asbury Automotive Group, Inc. (a)
|
314,878
|
|
14,806
|
|
GameStop Corp. Class A (e)
|
2,061,075
|
|
72,282
|
|
Sally Beauty Holdings, Inc. (a)
|
1,303,600
|
|
36,996
|
|
|
|
124,084
|
|
TOTAL CONSUMER DISCRETIONARY
|
|
1,008,580
|
|
Common Stocks - continued
|
|
|
Shares
|
|
Value (000s)
|
|
CONSUMER STAPLES - 1.6%
|
|
Food Products - 1.4%
|
|
ConAgra Foods, Inc.
|
438,800
|
|
$ 13,949
|
|
Darling International, Inc. (a)
|
2,452,617
|
|
47,973
|
|
|
|
61,922
|
|
Personal Products - 0.2%
|
|
Revlon, Inc. (a)
|
459,739
|
|
10,795
|
|
TOTAL CONSUMER STAPLES
|
|
72,717
|
|
ENERGY - 9.3%
|
|
Energy Equipment & Services - 2.6%
|
|
Ensco PLC Class A
|
90,000
|
|
4,533
|
|
Halliburton Co.
|
943,707
|
|
46,251
|
|
Noble Corp.
|
753,990
|
|
23,396
|
|
Oil States International, Inc. (a)
|
203,434
|
|
19,113
|
|
Schlumberger Ltd.
|
90,600
|
|
7,934
|
|
Transocean Ltd. (United States)
|
316,300
|
|
13,689
|
|
|
|
114,916
|
|
Oil, Gas & Consumable Fuels - 6.7%
|
|
Alpha Natural Resources, Inc. (a)
|
5,150,437
|
|
29,254
|
|
Continental Resources, Inc. (a)(e)
|
384,513
|
|
42,373
|
|
Hess Corp.
|
633,490
|
|
47,822
|
|
HollyFrontier Corp.
|
1,208,529
|
|
55,955
|
|
Kodiak Oil & Gas Corp. (a)
|
1,639,653
|
|
17,397
|
|
Peabody Energy Corp.
|
677,175
|
|
11,546
|
|
Range Resources Corp.
|
202,800
|
|
17,479
|
|
Valero Energy Corp.
|
1,003,334
|
|
51,270
|
|
Western Refining, Inc. (e)
|
511,986
|
|
20,024
|
|
|
|
293,120
|
|
TOTAL ENERGY
|
|
408,036
|
|
FINANCIALS - 11.2%
|
|
Commercial Banks - 4.1%
|
|
Barclays PLC sponsored ADR (e)
|
1,945,679
|
|
34,828
|
|
CIT Group, Inc.
|
170,690
|
|
7,946
|
|
Huntington Bancshares, Inc.
|
7,094,120
|
|
64,344
|
|
Regions Financial Corp.
|
4,218,220
|
|
42,899
|
|
SunTrust Banks, Inc.
|
836,400
|
|
30,964
|
|
|
|
180,981
|
|
Common Stocks - continued
|
|
|
Shares
|
|
Value (000s)
|
|
FINANCIALS - continued
|
|
Consumer Finance - 1.0%
|
|
American Express Co.
|
515,752
|
|
$ 43,849
|
|
Diversified Financial Services - 3.8%
|
|
Bank of America Corp.
|
6,881,001
|
|
115,257
|
|
Citigroup, Inc.
|
1,110,553
|
|
52,674
|
|
|
|
167,931
|
|
Insurance - 1.2%
|
|
AFLAC, Inc.
|
530,400
|
|
33,299
|
|
Lincoln National Corp.
|
360,400
|
|
17,310
|
|
|
|
50,609
|
|
Real Estate Investment Trusts - 0.6%
|
|
Host Hotels & Resorts, Inc.
|
832,331
|
|
15,307
|
|
Sabra Health Care REIT, Inc.
|
452,492
|
|
13,091
|
|
|
|
28,398
|
|
Real Estate Management & Development - 0.4%
|
|
Realogy Holdings Corp. (a)
|
369,860
|
|
16,855
|
|
Thrifts & Mortgage Finance - 0.1%
|
|
MGIC Investment Corp. (a)
|
328,300
|
|
2,787
|
|
TOTAL FINANCIALS
|
|
491,410
|
|
HEALTH CARE - 10.9%
|
|
Health Care Equipment & Supplies - 2.9%
|
|
Boston Scientific Corp. (a)
|
8,034,144
|
|
108,702
|
|
Covidien PLC
|
286,325
|
|
19,539
|
|
|
|
128,241
|
|
Health Care Providers & Services - 5.3%
|
|
Community Health Systems, Inc. (a)
|
1,152,373
|
|
47,720
|
|
DaVita HealthCare Partners, Inc. (a)
|
606,706
|
|
39,393
|
|
HCA Holdings, Inc. (a)
|
998,521
|
|
50,196
|
|
Tenet Healthcare Corp. (a)
|
1,535,663
|
|
70,656
|
|
Universal Health Services, Inc. Class B
|
317,795
|
|
26,066
|
|
|
|
234,031
|
|
Pharmaceuticals - 2.7%
|
|
Johnson & Johnson
|
127,900
|
|
11,315
|
|
Common Stocks - continued
|
|
|
Shares
|
|
Value (000s)
|
|
HEALTH CARE - continued
|
|
Pharmaceuticals - continued
|
|
Merck & Co., Inc.
|
1,321,200
|
|
$ 69,984
|
|
Sanofi SA sponsored ADR
|
745,266
|
|
36,444
|
|
|
|
117,743
|
|
TOTAL HEALTH CARE
|
|
480,015
|
|
INDUSTRIALS - 10.6%
|
|
Aerospace & Defense - 1.6%
|
|
Honeywell International, Inc.
|
387,924
|
|
35,390
|
|
Huntington Ingalls Industries, Inc.
|
196,360
|
|
18,658
|
|
Textron, Inc.
|
497,300
|
|
17,654
|
|
|
|
71,702
|
|
Airlines - 3.5%
|
|
American Airlines Group, Inc. (a)(e)
|
1,236,200
|
|
41,475
|
|
Delta Air Lines, Inc.
|
2,920,820
|
|
89,406
|
|
Southwest Airlines Co.
|
478,033
|
|
10,015
|
|
United Continental Holdings, Inc. (a)
|
309,700
|
|
14,197
|
|
|
|
155,093
|
|
Building Products - 1.0%
|
|
Allegion PLC (a)
|
201,992
|
|
9,968
|
|
Armstrong World Industries, Inc. (a)
|
580,581
|
|
32,327
|
|
|
|
42,295
|
|
Commercial Services & Supplies - 0.9%
|
|
Deluxe Corp.
|
626,387
|
|
30,411
|
|
Tyco International Ltd.
|
267,791
|
|
10,843
|
|
|
|
41,254
|
|
Electrical Equipment - 0.6%
|
|
Emerson Electric Co.
|
136,500
|
|
9,001
|
|
Generac Holdings, Inc.
|
373,058
|
|
17,955
|
|
|
|
26,956
|
|
Industrial Conglomerates - 0.5%
|
|
General Electric Co.
|
896,117
|
|
22,519
|
|
Machinery - 1.7%
|
|
Harsco Corp.
|
854,076
|
|
21,685
|
|
Ingersoll-Rand PLC
|
605,977
|
|
35,625
|
|
Pentair Ltd.
|
64,254
|
|
4,776
|
|
Timken Co.
|
187,566
|
|
10,566
|
|
|
|
72,652
|
|
Common Stocks - continued
|
|
|
Shares
|
|
Value (000s)
|
|
INDUSTRIALS - continued
|
|
Marine - 0.4%
|
|
Navios Maritime Holdings, Inc.
|
1,788,039
|
|
$ 16,951
|
|
Road & Rail - 0.4%
|
|
Hertz Global Holdings, Inc. (a)
|
583,000
|
|
15,170
|
|
TOTAL INDUSTRIALS
|
|
464,592
|
|
INFORMATION TECHNOLOGY - 8.6%
|
|
Communications Equipment - 1.0%
|
|
Cisco Systems, Inc.
|
1,982,651
|
|
43,440
|
|
Computers & Peripherals - 1.6%
|
|
EMC Corp.
|
1,160,700
|
|
28,135
|
|
Gaming & Leisure Properties
|
297,660
|
|
10,329
|
|
NCR Corp. (a)
|
882,069
|
|
31,040
|
|
|
|
69,504
|
|
Electronic Equipment & Components - 1.8%
|
|
Avnet, Inc.
|
489,587
|
|
20,107
|
|
Belden, Inc.
|
649,536
|
|
42,031
|
|
Corning, Inc.
|
605,400
|
|
10,419
|
|
Viasystems Group, Inc. (a)
|
441,914
|
|
5,771
|
|
|
|
78,328
|
|
Internet Software & Services - 0.3%
|
|
VeriSign, Inc. (a)
|
194,300
|
|
11,415
|
|
Semiconductors & Semiconductor Equipment - 2.6%
|
|
Advanced Micro Devices, Inc. (a)(e)
|
1,295,308
|
|
4,443
|
|
Freescale Semiconductor Holdings I Ltd. (a)(e)
|
939,600
|
|
17,035
|
|
Intersil Corp. Class A
|
1,177,013
|
|
13,347
|
|
Micron Technology, Inc. (a)
|
1,890,455
|
|
43,556
|
|
ON Semiconductor Corp. (a)
|
4,465,694
|
|
37,333
|
|
|
|
115,714
|
|
Software - 1.3%
|
|
Citrix Systems, Inc. (a)
|
190,801
|
|
10,317
|
|
Microsoft Corp.
|
1,258,432
|
|
47,632
|
|
|
|
57,949
|
|
TOTAL INFORMATION TECHNOLOGY
|
|
376,350
|
|
MATERIALS - 12.3%
|
|
Chemicals - 9.6%
|
|
H.B. Fuller Co.
|
380,376
|
|
17,718
|
|
Common Stocks - continued
|
|
|
Shares
|
|
Value (000s)
|
|
MATERIALS - continued
|
|
Chemicals - continued
|
|
LyondellBasell Industries NV Class A
|
4,550,590
|
|
$ 358,403
|
|
OMNOVA Solutions, Inc. (a)(f)
|
2,609,132
|
|
23,587
|
|
Phosphate Holdings, Inc. (a)
|
192,500
|
|
73
|
|
W.R. Grace & Co. (a)
|
209,004
|
|
19,713
|
|
|
|
419,494
|
|
Containers & Packaging - 2.0%
|
|
Rock-Tenn Co. Class A
|
755,151
|
|
76,633
|
|
Sealed Air Corp.
|
378,366
|
|
11,801
|
|
|
|
88,434
|
|
Metals & Mining - 0.0%
|
|
Ormet Corp. (a)
|
650,000
|
|
3
|
|
|
|
|
|
Paper & Forest Products - 0.7%
|
|
Louisiana-Pacific Corp. (a)
|
1,221,110
|
|
21,406
|
|
Neenah Paper, Inc.
|
231,700
|
|
10,065
|
|
|
|
31,471
|
|
TOTAL MATERIALS
|
|
539,402
|
|
TELECOMMUNICATION SERVICES - 1.0%
|
|
Diversified Telecommunication Services - 1.0%
|
|
Frontier Communications Corp. (e)
|
4,666,144
|
|
21,931
|
|
Intelsat SA
|
855,300
|
|
17,089
|
|
Level 3 Communications, Inc. (a)
|
184,741
|
|
5,930
|
|
|
|
44,950
|
|
UTILITIES - 3.0%
|
|
Electric Utilities - 0.2%
|
|
FirstEnergy Corp.
|
341,796
|
|
10,763
|
|
Independent Power Producers & Energy Traders - 2.8%
|
|
Calpine Corp. (a)
|
1,970,200
|
|
37,394
|
|
The AES Corp.
|
5,982,695
|
|
84,117
|
|
|
|
121,511
|
|
TOTAL UTILITIES
|
|
132,274
|
|
TOTAL COMMON STOCKS
(Cost $2,631,315)
|
$ 4,018,326
|
|
Nonconvertible Preferred Stocks - 0.2%
|
|
|
Shares
|
|
Value (000s)
|
|
FINANCIALS - 0.2%
|
|
Diversified Financial Services - 0.2%
|
|
GMAC Capital Trust I Series 2, 8.125%
(Cost $9,025)
|
360,987
|
|
$ 9,884
|
|
Corporate Bonds - 0.7%
|
|
|
Principal Amount (000s)
|
|
|
|
Convertible Bonds - 0.1%
|
|
INDUSTRIALS - 0.1%
|
|
Marine - 0.1%
|
|
Genco Shipping & Trading Ltd. 5% 8/15/15
|
|
$ 9,034
|
|
4,884
|
|
Nonconvertible Bonds - 0.6%
|
|
CONSUMER DISCRETIONARY - 0.6%
|
|
Automobiles - 0.0%
|
|
General Motors Corp.:
|
|
|
|
|
|
6.75% 5/1/28 (d)
|
|
2,515
|
|
0
|
|
7.125% 7/15/49 (d)
|
|
6,805
|
|
0
|
|
7.2% 1/15/11 (d)
|
|
18,790
|
|
0
|
|
8.25% 7/15/23 (d)
|
|
20,460
|
|
0
|
|
8.375% 7/15/33 (d)
|
|
41,210
|
|
0
|
|
8.8% 3/1/21 (d)
|
|
8,800
|
|
0
|
|
|
|
|
|
0
|
|
Multiline Retail - 0.6%
|
|
The Bon-Ton Department Stores, Inc.:
|
|
|
|
|
|
8% 6/15/21
|
|
11,475
|
|
11,116
|
|
10.625% 7/15/17
|
|
13,962
|
|
13,927
|
|
|
|
25,043
|
|
TOTAL CORPORATE BONDS
(Cost $29,088)
|
$ 29,927
|
|
Money Market Funds - 10.3%
|
|
|
Shares
|
|
Value (000s)
|
|
Fidelity Cash Central Fund, 0.10% (b)
|
340,100,055
|
|
$ 340,100
|
|
Fidelity Securities Lending Cash Central Fund, 0.09% (b)(c)
|
115,143,633
|
|
115,144
|
|
TOTAL MONEY MARKET FUNDS
(Cost $455,244)
|
$ 455,244
|
|
TOTAL INVESTMENT PORTFOLIO - 102.7%
(Cost $3,124,672)
|
|
4,513,381
|
|
NET OTHER ASSETS (LIABILITIES) - (2.7)%
|
|
(120,661
)
|
|
NET ASSETS - 100%
|
$ 4,392,720
|
|
Legend
|
|
(a) Non-income producing
|
|
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the
annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon
request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
|
|
(c) Investment made with cash collateral received from securities on loan.
|
|
(d) Non-income producing - Security is in default.
|
|
(e) Security or a portion of the security is on loan at period end.
|
|
(f) Affiliated company
|
|
(g) Investment is owned by an entity that is treated as a corporation for U.S. tax purposes and is owned by the Fund.
|
|
(h) 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 $14,000 or 0.0% of net assets.
|
|
Additional information on each restricted holding is as follows:
|
|
Security
|
Acquisition Date
|
Acquisition Cost (000s)
|
|
Station Holdco LLC unit
|
10/28/08 - 12/1/08
|
$ 4,745
|
|
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
|
$ 189
|
|
Fidelity Securities Lending Cash Central Fund
|
286
|
|
Total
|
$ 475
|
|
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
|
Value,
end of
period
|
|
Gray Television, Inc.
|
$ 24,736
|
$ -
|
$ -
|
$ -
|
$ 36,042
|
|
OMNOVA Solutions, Inc.
|
21,030
|
-
|
-
|
-
|
23,587
|
|
Total
|
$ 45,766
|
$ -
|
$ -
|
$ -
|
$ 59,629
|
|
Other Information
|
|
The following is a summary of the inputs used, as of January 31, 2014, 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 in the table below, please refer to the Investment Valuation section in the accompanying Notes to Financial
Statements.
|
|
Valuation Inputs at Reporting Date:
|
|
Description
(Amounts in thousands)
|
Total
|
Level 1
|
Level 2
|
Level 3
|
|
Investments in Securities:
|
|
|
|
|
|
Equities:
|
|
|
|
|
|
Consumer Discretionary
|
$ 1,008,580
|
$ 1,008,566
|
$ -
|
$ 14
|
|
Consumer Staples
|
72,717
|
72,717
|
-
|
-
|
|
Energy
|
408,036
|
408,036
|
-
|
-
|
|
Financials
|
501,294
|
501,294
|
-
|
-
|
|
Health Care
|
480,015
|
480,015
|
-
|
-
|
|
Industrials
|
464,592
|
464,592
|
-
|
-
|
|
Information Technology
|
376,350
|
376,350
|
-
|
-
|
|
Materials
|
539,402
|
539,402
|
-
|
-
|
|
Telecommunication Services
|
44,950
|
44,950
|
-
|
-
|
|
Utilities
|
132,274
|
132,274
|
-
|
-
|
|
Corporate Bonds
|
29,927
|
-
|
29,927
|
-
|
|
Money Market Funds
|
455,244
|
455,244
|
-
|
-
|
|
Total Investments in Securities:
|
$ 4,513,381
|
$ 4,483,440
|
$ 29,927
|
$ 14
|
|
Other Information - continued
|
|
Distribution of investments by country or territory of incorporation, as a percentage of total net assets, is as follows (Unaudited):
|
|
United States of America
|
85.1%
|
|
Netherlands
|
8.2%
|
|
Ireland
|
1.4%
|
|
United Kingdom
|
1.4%
|
|
Others (Individually Less Than 1%)
|
3.9%
|
|
|
100.0%
|
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
|
Amounts in thousands (except per-share amounts)
|
January 31, 2014 (Unaudited)
|
|
|
|
|
|
Assets
|
|
|
|
Investment in securities, at value (including securities loaned of $111,636) - See
accompanying schedule:
Unaffiliated issuers (cost $2,634,463)
|
$ 3,998,508
|
|
|
Fidelity Central Funds (cost $455,244)
|
455,244
|
|
|
Other affiliated issuers (cost $34,965)
|
59,629
|
|
|
Total Investments (cost $3,124,672)
|
|
$ 4,513,381
|
|
Receivable for fund shares sold
|
|
7,742
|
|
Dividends receivable
|
|
5,359
|
|
Interest receivable
|
|
888
|
|
Distributions receivable from Fidelity Central Funds
|
|
126
|
|
Prepaid expenses
|
|
9
|
|
Other receivables
|
|
12
|
|
Total assets
|
|
4,527,517
|
|
|
|
|
|
Liabilities
|
|
|
|
Payable for investments purchased
|
$ 4,768
|
|
|
Payable for fund shares redeemed
|
10,234
|
|
|
Accrued management fee
|
2,244
|
|
|
Distribution and service plan fees payable
|
1,319
|
|
|
Other affiliated payables
|
759
|
|
|
Other payables and accrued expenses
|
329
|
|
|
Collateral on securities loaned, at value
|
115,144
|
|
|
Total liabilities
|
|
134,797
|
|
|
|
|
|
Net Assets
|
|
$ 4,392,720
|
|
Net Assets consist of:
|
|
|
|
Paid in capital
|
|
$ 3,356,192
|
|
Undistributed net investment income
|
|
3,687
|
|
Accumulated undistributed net realized gain (loss) on investments
|
|
(355,868)
|
|
Net unrealized appreciation (depreciation) on investments
|
|
1,388,709
|
|
Net Assets
|
|
$ 4,392,720
|
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
|
Amounts in thousands (except per-share amounts)
|
January 31, 2014 (Unaudited)
|
|
|
|
|
|
Calculation of Maximum Offering Price
Class A:
Net Asset Value
and redemption price per share ($1,680,374 ÷ 32,341.16 shares)
|
|
$ 51.96
|
|
|
|
|
|
Maximum offering price per share (100/94.25 of $51.96)
|
|
$ 55.13
|
|
Class T
:
Net Asset Value
and redemption price per share ($975,849 ÷ 19,170.21 shares)
|
|
$ 50.90
|
|
|
|
|
|
Maximum offering price per share (100/96.50 of $50.90)
|
|
$ 52.75
|
|
Class B
:
Net Asset Value
and offering price per share ($69,257 ÷ 1,422.59 shares)
A
|
|
$ 48.68
|
|
|
|
|
|
Class C
:
Net Asset Value
and offering price per share ($570,829 ÷ 11,709.68 shares)
A
|
|
$ 48.75
|
|
|
|
|
|
Institutional Class
:
Net Asset Value
, offering price and redemption price per share ($1,088,458 ÷ 20,648.31
shares)
|
|
$ 52.71
|
|
|
|
|
|
Class Z
:
Net Asset Value
, offering price and redemption price per share ($7,953 ÷ 150.86 shares)
|
|
$ 52.72
|
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.
Semiannual Report
Financial Statements - continued
Statement of Operations
|
Amounts in thousands Six months ended January 31, 2014 (Unaudited)
|
|
|
|
|
|
Investment Income
|
|
|
|
Dividends
|
|
$ 30,173
|
|
Interest
|
|
2,358
|
|
Income from Fidelity Central Funds
|
|
475
|
|
Total income
|
|
33,006
|
|
|
|
|
|
Expenses
|
|
|
|
Management fee
|
$ 12,854
|
|
|
Transfer agent fees
|
4,002
|
|
|
Distribution and service plan fees
|
7,657
|
|
|
Accounting and security lending fees
|
533
|
|
|
Custodian fees and expenses
|
21
|
|
|
Independent trustees' compensation
|
9
|
|
|
Registration fees
|
138
|
|
|
Audit
|
41
|
|
|
Legal
|
10
|
|
|
Miscellaneous
|
15
|
|
|
Total expenses before reductions
|
25,280
|
|
|
Expense reductions
|
(40
)
|
25,240
|
|
Net investment income (loss)
|
|
7,766
|
|
Realized and Unrealized Gain (Loss)
Net realized gain (loss) on:
|
|
|
|
Investment securities:
|
|
|
|
Unaffiliated issuers
|
|
3,228
|
|
Change in net unrealized appreciation (depreciation) on investment securities
|
|
279,234
|
|
Net gain (loss)
|
|
282,462
|
|
Net
increase (decrease) in net assets resulting from operations
|
|
$ 290,228
|
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
|
Amounts in thousands
|
Six months ended January 31,
2014 (Unaudited)
|
Year ended
July 31,
2013
|
|
Increase (Decrease) in Net Assets
|
|
|
|
Operations
|
|
|
|
Net investment income (loss)
|
$ 7,766
|
$ 33,015
|
|
Net realized gain (loss)
|
3,228
|
272,683
|
|
Change in net unrealized appreciation (depreciation)
|
279,234
|
883,039
|
|
Net
increase (decrease) in net assets resulting
from operations
|
290,228
|
1,188,737
|
|
Distributions to shareholders from net investment income
|
(11,575
)
|
(2,596
)
|
|
Share transactions - net increase (decrease)
|
39,869
|
(90,255
)
|
|
Total increase (decrease) in net assets
|
318,522
|
1,095,886
|
|
|
|
|
|
Net Assets
|
|
|
|
Beginning of period
|
4,074,198
|
2,978,312
|
|
End of period (including undistributed net investment income of $3,687 and undistributed
net investment income of $7,496, respectively)
|
$ 4,392,720
|
$ 4,074,198
|
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
|
|
Six months ended
January 31, 2014
|
Years ended July 31,
|
|
|
(Unaudited)
|
2013
|
2012
|
2011
|
2010
|
2009
|
|
Selected Per-Share Data
|
|
|
|
|
|
|
|
Net asset value, beginning of period
|
$ 48.63
|
$ 34.29
|
$ 35.01
|
$ 28.55
|
$ 23.69
|
$ 36.47
|
|
Income from Investment Operations
|
|
|
|
|
|
|
|
Net investment income (loss)
E
|
.12
|
.44
H
|
.11
|
(.08)
|
.05
|
.27
|
|
Net realized and unrealized gain (loss)
|
3.37
|
13.94
|
(.51
)
|
6.61
|
4.91
|
(12.93
)
|
|
Total from investment operations
|
3.49
|
14.38
|
(.40
)
|
6.53
|
4.96
|
(12.66
)
|
|
Distributions from net investment income
|
(.16)
|
(.04)
|
(.32)
|
(.01)
I
|
(.09)
|
(.12)
|
|
Distributions from net realized gain
|
-
|
-
|
-
|
(.06
)
I
|
(.01
)
|
-
|
|
Total distributions
|
(.16
)
|
(.04
)
|
(.32
)
|
(.07
)
|
(.10
)
|
(.12
)
|
|
Net asset value, end of period
|
$ 51.96
|
$ 48.63
|
$ 34.29
|
$ 35.01
|
$ 28.55
|
$ 23.69
|
|
Total Return
B, C, D
|
7.19%
|
41.95%
|
(1.04)%
|
22.88%
|
20.96%
|
(34.57)%
|
|
Ratios to Average Net Assets
F,
J
|
|
|
|
|
|
|
|
Expenses before reductions
|
1.08%
A
|
1.11%
|
1.13%
|
1.13%
|
1.15%
|
1.20%
|
|
Expenses net of fee waivers, if any
|
1.08%
A
|
1.11%
|
1.13%
|
1.13%
|
1.15%
|
1.20%
|
|
Expenses net of all reductions
|
1.08%
A
|
1.10%
|
1.13%
|
1.12%
|
1.15%
|
1.20%
|
|
Net investment income (loss)
|
.47%
A
|
1.07%
H
|
.33%
|
(.23)%
|
.18%
|
1.27%
|
|
Supplemental Data
|
|
|
|
|
|
|
|
Net assets, end of period (in millions)
|
$ 1,680
|
$ 1,490
|
$ 1,106
|
$ 1,426
|
$ 1,428
|
$ 1,343
|
|
Portfolio turnover rate
G
|
12%
A
|
17%
|
30%
|
18%
|
22%
|
45%
|
|
A
Annualized
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
Total returns do not include the effect of the
sales charges.
E
Calculated based on average shares outstanding during the period.
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
Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H
Investment income per share reflects a large, non-recurring dividend which amounted to $.10 per share.
Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .84%.
I
The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year
shown.
J
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.
|
Semiannual Report
See accompanying notes which are an integral part of the financial statements.
Financial Highlights - Class T
|
|
Six months ended
January 31, 2014
|
Years ended July 31,
|
|
|
(Unaudited)
|
2013
|
2012
|
2011
|
2010
|
2009
|
|
Selected Per-Share Data
|
|
|
|
|
|
|
|
Net asset value, beginning of period
|
$ 47.59
|
$ 33.60
|
$ 34.36
|
$ 28.05
|
$ 23.30
|
$ 35.91
|
|
Income from Investment Operations
|
|
|
|
|
|
|
|
Net investment income (loss)
E
|
.06
|
.34
H
|
.03
|
(.15)
|
(.01)
|
.22
|
|
Net realized and unrealized gain (loss)
|
3.29
|
13.65
|
(.50
)
|
6.48
|
4.83
|
(12.73
)
|
|
Total from investment operations
|
3.35
|
13.99
|
(.47
)
|
6.33
|
4.82
|
(12.51
)
|
|
Distributions from net investment income
|
(.04)
|
-
K
|
(.29)
|
-
I
|
(.06)
|
(.10)
|
|
Distributions from net realized gain
|
-
|
-
|
-
|
(.02
)
I
|
(.01
)
|
-
|
|
Total distributions
|
(.04
)
|
-
K
|
(.29
)
|
(.02
)
|
(.07
)
|
(.10
)
|
|
Net asset value, end of period
|
$ 50.90
|
$ 47.59
|
$ 33.60
|
$ 34.36
|
$ 28.05
|
$ 23.30
|
|
Total Return
B, C, D
|
7.05%
|
41.65%
|
(1.26)%
|
22.58%
|
20.72%
|
(34.71)%
|
|
Ratios to Average Net Assets
F,
J
|
|
|
|
|
|
|
|
Expenses before reductions
|
1.32%
A
|
1.34%
|
1.35%
|
1.35%
|
1.37%
|
1.42%
|
|
Expenses net of fee waivers, if any
|
1.32%
A
|
1.34%
|
1.35%
|
1.35%
|
1.37%
|
1.42%
|
|
Expenses net of all reductions
|
1.32%
A
|
1.33%
|
1.35%
|
1.35%
|
1.37%
|
1.42%
|
|
Net investment income (loss)
|
.23%
A
|
.85%
H
|
.11%
|
(.45)%
|
(.04)%
|
1.05%
|
|
Supplemental Data
|
|
|
|
|
|
|
|
Net assets, end of period (in millions)
|
$ 976
|
$ 1,012
|
$ 753
|
$ 906
|
$ 867
|
$ 728
|
|
Portfolio turnover rate
G
|
12%
A
|
17%
|
30%
|
18%
|
22%
|
45%
|
|
A
Annualized
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
Total returns do not include the effect of the
sales charges.
E
Calculated based on average shares outstanding during the period.
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
Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H
Investment income per share reflects a large, non-recurring dividend which amounted to $.09 per share.
Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .61%.
I
The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year
shown.
J
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.
K
Amount represents less than $.01 per share.
|
Semiannual Report
See accompanying notes which are an integral part of the financial statements.
Financial Highlights - Class B
|
|
Six months ended
January 31, 2014
|
Years ended July 31,
|
|
|
(Unaudited)
|
2013
|
2012
|
2011
|
2010
|
2009
|
|
Selected Per-Share Data
|
|
|
|
|
|
|
|
Net asset value, beginning of period
|
$ 45.60
|
$ 32.38
|
$ 33.24
|
$ 27.27
|
$ 22.73
|
$ 35.10
|
|
Income from Investment Operations
|
|
|
|
|
|
|
|
Net investment income (loss)
E
|
(.08)
|
.10
H
|
(.15)
|
(.33)
|
(.17)
|
.10
|
|
Net realized and unrealized gain (loss)
|
3.16
|
13.12
|
(.49
)
|
6.30
|
4.72
|
(12.43
)
|
|
Total from investment operations
|
3.08
|
13.22
|
(.64
)
|
5.97
|
4.55
|
(12.33
)
|
|
Distributions from net investment income
|
-
|
-
|
(.22)
|
-
|
-
|
(.04)
|
|
Distributions from net realized gain
|
-
|
-
|
-
|
-
|
(.01
)
|
-
|
|
Total distributions
|
-
|
-
|
(.22
)
|
-
|
(.01
)
|
(.04
)
|
|
Net asset value, end of period
|
$ 48.68
|
$ 45.60
|
$ 32.38
|
$ 33.24
|
$ 27.27
|
$ 22.73
|
|
Total Return
B, C, D
|
6.75%
|
40.83%
|
(1.85)%
|
21.89%
|
20.00%
|
(35.06)%
|
|
Ratios to Average Net Assets
F,
I
|
|
|
|
|
|
|
|
Expenses before reductions
|
1.88%
A
|
1.91%
|
1.94%
|
1.93%
|
1.96%
|
1.97%
|
|
Expenses net of fee waivers, if any
|
1.88%
A
|
1.91%
|
1.94%
|
1.93%
|
1.96%
|
1.97%
|
|
Expenses net of all reductions
|
1.88%
A
|
1.91%
|
1.93%
|
1.92%
|
1.96%
|
1.97%
|
|
Net investment income (loss)
|
(.33)%
A
|
.27%
H
|
(.48)%
|
(1.03)%
|
(.63)%
|
.49%
|
|
Supplemental Data
|
|
|
|
|
|
|
|
Net assets, end of period (in millions)
|
$ 69
|
$ 80
|
$ 84
|
$ 121
|
$ 131
|
$ 128
|
|
Portfolio turnover rate
G
|
12%
A
|
17%
|
30%
|
18%
|
22%
|
45%
|
|
A
Annualized
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
Total returns do not include the effect of the
contingent deferred sales charge.
E
Calculated based on average shares outstanding during the period.
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
Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H
Investment income per share reflects a large, non-recurring dividend which
amounted to $.09 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .04%.
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.
|
Semiannual Report
See accompanying notes which are an integral part of the financial statements.
Financial Highlights - Class C
|
|
Six months ended
January 31, 2014
|
Years ended July 31,
|
|
|
(Unaudited)
|
2013
|
2012
|
2011
|
2010
|
2009
|
|
Selected Per-Share Data
|
|
|
|
|
|
|
|
Net asset value, beginning of period
|
$ 45.65
|
$ 32.40
|
$ 33.24
|
$ 27.26
|
$ 22.70
|
$ 35.05
|
|
Income from Investment Operations
|
|
|
|
|
|
|
|
Net investment income (loss)
E
|
(.07)
|
.13
H
|
(.12)
|
(.31)
|
(.15)
|
.11
|
|
Net realized and unrealized gain (loss)
|
3.17
|
13.12
|
(.49
)
|
6.29
|
4.72
|
(12.42
)
|
|
Total from investment operations
|
3.10
|
13.25
|
(.61
)
|
5.98
|
4.57
|
(12.31
)
|
|
Distributions from net investment income
|
-
|
-
|
(.23)
|
-
|
-
J
|
(.04)
|
|
Distributions from net realized gain
|
-
|
-
|
-
|
-
|
(.01
)
|
-
|
|
Total distributions
|
-
|
-
|
(.23
)
|
-
|
(.01
)
|
(.04
)
|
|
Net asset value, end of period
|
$ 48.75
|
$ 45.65
|
$ 32.40
|
$ 33.24
|
$ 27.26
|
$ 22.70
|
|
Total Return
B, C, D
|
6.79%
|
40.90%
|
(1.76)%
|
21.94%
|
20.13%
|
(35.06)%
|
|
Ratios to Average Net Assets
F,
I
|
|
|
|
|
|
|
|
Expenses before reductions
|
1.83%
A
|
1.85%
|
1.87%
|
1.86%
|
1.89%
|
1.94%
|
|
Expenses net of fee waivers, if any
|
1.83%
A
|
1.85%
|
1.87%
|
1.86%
|
1.89%
|
1.94%
|
|
Expenses net of all reductions
|
1.83%
A
|
1.85%
|
1.86%
|
1.86%
|
1.89%
|
1.94%
|
|
Net investment income (loss)
|
(.28)%
A
|
.33%
H
|
(.41)%
|
(.97)%
|
(.56)%
|
.53%
|
|
Supplemental Data
|
|
|
|
|
|
|
|
Net assets, end of period (in millions)
|
$ 571
|
$ 527
|
$ 405
|
$ 522
|
$ 525
|
$ 496
|
|
Portfolio turnover rate
G
|
12%
A
|
17%
|
30%
|
18%
|
22%
|
45%
|
|
A
Annualized
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
Total returns do not include the effect of the
contingent deferred sales charge.
E
Calculated based on average shares outstanding during the period.
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
Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H
Investment income per share reflects a large, non-recurring dividend which
amounted to $.09 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .10%.
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
Amount represents less than $.01 per share.
|
Semiannual Report
See accompanying notes which are an integral part of the financial statements.
Financial Highlights - Institutional Class
|
|
Six months ended
January 31, 2014
|
Years ended July 31,
|
|
|
(Unaudited)
|
2013
|
2012
|
2011
|
2010
|
2009
|
|
Selected Per-Share Data
|
|
|
|
|
|
|
|
Net asset value, beginning of period
|
$ 49.39
|
$ 34.77
|
$ 35.44
|
$ 28.90
|
$ 23.97
|
$ 36.85
|
|
Income from Investment Operations
|
|
|
|
|
|
|
|
Net investment income (loss)
D
|
.19
|
.57
G
|
.20
|
.02
|
.13
|
.33
|
|
Net realized and unrealized gain (loss)
|
3.41
|
14.13
|
(.52
)
|
6.67
|
4.96
|
(13.06
)
|
|
Total from investment operations
|
3.60
|
14.70
|
(.32
)
|
6.69
|
5.09
|
(12.73
)
|
|
Distributions from net investment income
|
(.28)
|
(.08)
|
(.35)
|
(.05)
H
|
(.15)
|
(.15)
|
|
Distributions from net realized gain
|
-
|
-
|
-
|
(.10
)
H
|
(.01
)
|
-
|
|
Total distributions
|
(.28
)
|
(.08
)
|
(.35
)
|
(.15
)
|
(.16
)
|
(.15
)
|
|
Net asset value, end of period
|
$ 52.71
|
$ 49.39
|
$ 34.77
|
$ 35.44
|
$ 28.90
|
$ 23.97
|
|
Total Return
B, C
|
7.32%
|
42.34%
|
(.77)%
|
23.21%
|
21.30%
|
(34.38)%
|
|
Ratios to Average Net Assets
E, I
|
|
|
|
|
|
|
|
Expenses before reductions
|
.82%
A
|
.84%
|
.86%
|
.85%
|
.87%
|
.93%
|
|
Expenses net of fee waivers, if any
|
.82%
A
|
.84%
|
.86%
|
.85%
|
.87%
|
.93%
|
|
Expenses net of all reductions
|
.82%
A
|
.84%
|
.85%
|
.85%
|
.87%
|
.93%
|
|
Net investment income (loss)
|
.73%
A
|
1.34%
G
|
.60%
|
.04%
|
.46%
|
1.54%
|
|
Supplemental Data
|
|
|
|
|
|
|
|
Net assets, end of period (in millions)
|
$ 1,088
|
$ 965
|
$ 631
|
$ 694
|
$ 710
|
$ 561
|
|
Portfolio turnover rate
F
|
12%
A
|
17%
|
30%
|
18%
|
22%
|
45%
|
|
A
Annualized
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
Calculated based on average shares
outstanding during the period.
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
Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G
Investment income per share reflects a large, non-recurring dividend which amounted to $.10 per share. Excluding this non-recurring dividend, the
ratio of net investment income (loss) to average net assets would have been 1.11%.
H
The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
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.
|
Semiannual Report
See accompanying notes which are an integral part of the financial statements.
Financial Highlights - Class Z
|
|
Period ended
January 31, 2014
G
|
|
|
(Unaudited)
|
|
Selected Per-Share Data
|
|
|
Net asset value, beginning of period
|
$ 49.58
|
|
Income from Investment Operations
|
|
|
Net investment income (loss)
D
|
.21
|
|
Net realized and unrealized gain (loss)
|
3.25
|
|
Total from investment operations
|
3.46
|
|
Distributions from net investment income
|
(.32
)
|
|
Net asset value, end of period
|
$ 52.72
|
|
Total Return
B, C
|
7.00%
|
|
Ratios to Average Net Assets
E,
H
|
|
|
Expenses before reductions
|
.68%
A
|
|
Expenses net of fee waivers, if any
|
.68%
A
|
|
Expenses net of all reductions
|
.68%
A
|
|
Net investment income (loss)
|
.86%
A
|
|
Supplemental Data
|
|
|
Net assets, end of period (in millions)
|
$ 8
|
|
Portfolio turnover rate
F
|
12%
A
|
A
Annualized
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
Calculated based on average shares outstanding during the period.
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
Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G
For the period August 13, 2013 (commencement of sale of shares) to January 31, 2014.
H
Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of
fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the
class.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes
to
Financial Statements
For the period ended January 31, 2014 (Unaudited)
(Amounts in thousands except percentages)
1. Organization.
Fidelity Advisor® Leveraged Company Stock Fund (the Fund) is a fund of Fidelity Advisor Series I (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 August 13, 2013. The Fund
offers Class A, Class T, Class C, Institutional Class and Class Z shares, each of which, along with Class B shares, has equal rights as to assets and
voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has
exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding
period of seven years from the initial date of purchase.
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 .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the
SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The 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
Semiannual Report
3. Significant Accounting Policies - continued
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. In accordance with valuation
policies and procedures approved by the Board of Trustees (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 Fidelity Management & Research Company (FMR) Fair Value Committee (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 is responsible for
approving and reporting to the Board all fair value determinations.
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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Investment Valuation - continued
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 January 31, 2014, is included at the end of the Fund's Schedule of Investments.
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 may 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. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax
filings or other correspondence relating to the underlying investment. Interest income and distributions from the Fidelity Central Funds are accrued
as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Debt obligations may
be placed on non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivables when the
collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual
status when the issuer resumes interest payments or when collectability of interest is reasonably assured.
Semiannual Report
3. Significant Accounting Policies - continued
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.
Distributions are declared and recorded on the ex-dividend date. Income dividends 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, market discount, equity-debt classifications, capital loss carryforwards and
losses deferred due to wash sales and excise tax regulations.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
|
Gross unrealized appreciation
|
$ 1,508,719
|
|
Gross unrealized depreciation
|
(117,993
)
|
|
Net unrealized appreciation (depreciation) on securities and other investments
|
$ 1,390,726
|
|
|
|
|
Tax cost
|
$ 3,122,655
|
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited.
Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in
taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that
expire. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of prior fiscal period end
and is subject to adjustment.
|
Fiscal year of expiration
|
|
|
2018
|
$ (358,992
)
|
Restricted Securities.
The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally
may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve
time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is
included at the end of the Fund's Schedule of Investments.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $275,490 and $236,074, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee.
Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment
management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate
that is based on an annual rate of .35% of the Fund's average net assets and an annualized group fee rate that averaged .25% 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
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Management Fee - continued
investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as
assets under management increase and increases as assets under management decrease. For the reporting period, the total annualized management fee rate was .60% of the Fund's average net assets.
Distribution and Service Plan Fees.
In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service
Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total
fees and amounts retained by FDC were as follows:
|
|
Distribution
Fee
|
Service
Fee
|
Total Fees
|
Retained
by FDC
|
|
Class A
|
-%
|
.25%
|
$ 1,996
|
$ 58
|
|
Class T
|
.25%
|
.25%
|
2,521
|
-
|
|
Class B
|
.75%
|
.25%
|
377
|
284
|
|
Class C
|
.75%
|
.25%
|
2,763
|
332
|
|
|
|
|
$ 7,657
|
$ 674
|
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 T 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 T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00%
for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
|
|
Retained
by FDC
|
|
Class A
|
$ 189
|
|
Class T
|
17
|
|
Class B
*
|
17
|
|
Class C
*
|
11
|
|
|
$ 234
|
*
When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
5. Fees and Other Transactions with Affiliates - continued
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
Average
Net Assets
*
|
|
Class A
|
$ 1,527
|
.19
|
|
Class T
|
911
|
.18
|
|
Class B
|
90
|
.24
|
|
Class C
|
527
|
.19
|
|
Institutional Class
|
946
|
.18
|
|
Class Z
|
1
|
.05
|
|
|
$ 4,002
|
|
*
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.
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 $9 for the period.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be
utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay
commitment fees on its pro-rata portion of the line of credit, which amounted to $4 and is reflected in Miscellaneous expenses on the Statement of
Operations. During the period, there were no borrowings on this line of credit.
Semiannual Report
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. 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 $3,245. 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 $286, including one hundred fifty-eight dollars from securities loaned to FCM.
8. Expense Reductions.
The investment adviser voluntarily agreed to reimburse a portion of the Advisor Leveraged Company Stock Fund's Class A, Class T, Class B, Class C
and Institutional Class operating expenses. During the period, this reimbursement reduced expenses as follows:
|
|
Reimbursement
|
|
Class A
|
$ 5
|
|
Class T
|
4
|
|
Class B
|
-*
|
|
Class C
|
2
|
|
Institutional Class
|
3
|
|
|
$ 14
|
*
Amount represents two hundred fifty-nine dollars.
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 $26 for the period.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
|
|
Six months ended
January 31,
2014
A
|
Year ended
July 31,
2013
|
|
From net investment income
|
|
|
|
Class A
|
$ 5,026
|
$ 1,121
|
|
Class T
|
905
|
84
|
|
Institutional Class
|
5,634
|
1,391
|
|
Class Z
|
10
|
-
|
|
Total
|
$ 11,575
|
$ 2,596
|
A
Distributions for Class Z are for the period August 13, 2013 (commencement of sale of shares) to January 31, 2014
.
10. Share Transactions.
Transactions for each class of shares were as follows:
|
|
Shares
|
Dollars
|
|
|
Six months ended January
31,
2014
A
|
Year ended
July 31,
2013
|
Six months ended January
31,
2014
A
|
Year ended
July 31,
2013
|
|
Class A
|
|
|
|
|
|
Shares sold
|
5,363
|
7,818
|
$ 272,948
|
$ 326,978
|
|
Reinvestment of distributions
|
94
|
27
|
4,657
|
1,036
|
|
Shares redeemed
|
(3,765
)
|
(9,447
)
|
(191,595
)
|
(384,545
)
|
|
Net increase (decrease)
|
1,692
|
(1,602
)
|
$ 86,010
|
$ (56,531
)
|
|
Class T
|
|
|
|
|
|
Shares sold
|
2,302
|
6,400
|
$ 114,357
|
$ 261,455
|
|
Reinvestment of distributions
|
18
|
2
|
845
|
79
|
|
Shares redeemed
|
(4,413
)
|
(7,533
)
|
(219,308
)
|
(301,128
)
|
|
Net increase (decrease)
|
(2,093
)
|
(1,131
)
|
$ (104,106
)
|
$ (39,594
)
|
|
Class B
|
|
|
|
|
|
Shares sold
|
10
|
34
|
$ 452
|
$ 1,361
|
|
Shares redeemed
|
(339
)
|
(874
)
|
(16,090
)
|
(33,817
)
|
|
Net increase (decrease)
|
(329
)
|
(840
)
|
$ (15,638
)
|
$ (32,456
)
|
|
Class C
|
|
|
|
|
|
Shares sold
|
972
|
1,725
|
$ 46,353
|
$ 69,238
|
|
Shares redeemed
|
(796
)
|
(2,699
)
|
(37,803
)
|
(102,735
)
|
|
Net increase (decrease)
|
176
|
(974
)
|
$ 8,550
|
$ (33,497
)
|
|
Institutional Class
|
|
|
|
|
|
Shares sold
|
3,933
|
9,112
|
$ 203,071
|
$ 385,989
|
|
Reinvestment of distributions
|
93
|
29
|
4,709
|
1,155
|
|
Shares redeemed
|
(2,926
)
|
(7,736
)
|
(150,795
)
|
(315,321
)
|
|
Net increase (decrease)
|
1,100
|
1,405
|
$ 56,985
|
$ 71,823
|
Semiannual Report
10. Share Transactions - continued
|
|
Shares
|
Dollars
|
|
|
Six months ended January
31,
2014
A
|
Year ended
July 31,
2013
|
Six months ended January
31,
2014
A
|
Year ended
July 31,
2013
|
|
Class Z
|
|
|
|
|
|
Shares sold
|
160
|
-
|
$ 8,524
|
$ -
|
|
Reinvestment of distributions
|
-*
|
-
|
10
|
-
|
|
Shares redeemed
|
(9
)
|
-
|
(466
)
|
-
|
|
Net increase (decrease)
|
151
|
-
|
$ 8,068
|
$ -
|
A
Share transactions for Class Z are for the period August 13, 2013 (commencement of sale of shares) to January 31, 2014.
*
Amount represents one hundred eighty-seven shares.
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.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
JPMorgan Chase Bank
New York, NY
(Fidelity Investment logo)(registered trademark)
ALSFI-USAN-0314
1.786798.111
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor
®
Leveraged Company Stock
Fund - Class Z
Semiannual Report
January 31, 2014
(Fidelity Cover Art)
Contents
|
Shareholder Expense Example
|
(Click
Here)
|
An example of shareholder expenses.
|
|
Investment Changes
|
(Click
Here)
|
A summary of major shifts in the fund's investments over the past
six months.
|
|
Investments
|
(Click
Here)
|
A complete list of the fund's investments with their market values.
|
|
Financial Statements
|
(Click
Here)
|
Statements of assets and liabilities, operations, and changes in net
assets, as well as financial highlights.
|
|
Notes
|
(Click
Here)
|
Notes to the financial statements.
|
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. © 2014 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.advisor.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.
Semiannual Report
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 (August 1, 2013
to January 31, 2014) for Class A, Class T, Class B, Class C and Institutional Class and for the period (August 13, 2013 to January 31, 2014) for Class Z.
The hypothetical expense Example is based on an investment of $1,000 invested for the one-half year period (August 1, 2013 to January 31, 2014).
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.
Semiannual Report
Shareholder Expense Example - continued
|
|
Annualized Expense Ratio
B
|
Beginning
Account Value
|
Ending
Account Value
January 31, 2014
|
Expenses Paid
During Period
|
|
Class A
|
1.08%
|
|
|
|
|
Actual
|
|
$ 1,000.00
|
$ 1,071.90
|
$ 5.64
C
|
|
Hypothetical
A
|
|
$ 1,000.00
|
$ 1,019.76
|
$ 5.50
D
|
|
Class T
|
1.32%
|
|
|
|
|
Actual
|
|
$ 1,000.00
|
$ 1,070.50
|
$ 6.89
C
|
|
Hypothetical
A
|
|
$ 1,000.00
|
$ 1,018.55
|
$ 6.72
D
|
|
Class B
|
1.88%
|
|
|
|
|
Actual
|
|
$ 1,000.00
|
$ 1,067.50
|
$ 9.80
C
|
|
Hypothetical
A
|
|
$ 1,000.00
|
$ 1,015.73
|
$ 9.55
D
|
|
Class C
|
1.83%
|
|
|
|
|
Actual
|
|
$ 1,000.00
|
$ 1,067.90
|
$ 9.54
C
|
|
Hypothetical
A
|
|
$ 1,000.00
|
$ 1,015.98
|
$ 9.30
D
|
|
Institutional Class
|
.82%
|
|
|
|
|
Actual
|
|
$ 1,000.00
|
$ 1,073.20
|
$ 4.28
C
|
|
Hypothetical
A
|
|
$ 1,000.00
|
$ 1,021.07
|
$ 4.18
D
|
|
Class Z
|
.68%
|
|
|
|
|
Actual
|
|
$ 1,000.00
|
$ 1,070.00
|
$ 3.32
C
|
|
Hypothetical
A
|
|
$ 1,000.00
|
$ 1,021.78
|
$ 3.47
D
|
A
5% return per year before expenses
B
Annualized expense ratio reflects expenses net of applicable fee waivers.
C
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 T, Class B, Class C and Institutional Class and multiplied by 172/365 (to reflect
the period August 13, 2013 to January 31, 2014) for Class Z. The fees and expenses of the underlying Fidelity Central Funds in which the
Fund invests are not included in each Class' annualized expense ratio.
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). The fees and expenses of the underlying Fidelity Central Funds in which the Fund invests are not included in each Class' annualized expense ratio.
Semiannual Report
Investment Changes (Unaudited)
|
Top Ten Stocks as of January 31, 2014
|
|
|
% of fund's
net assets
|
% of fund's net assets
6 months ago
|
|
LyondellBasell Industries NV Class A
|
8.2
|
7.2
|
|
Comcast Corp. Class A
|
4.0
|
3.6
|
|
Service Corp. International
|
3.6
|
4.2
|
|
General Motors Co.
|
2.8
|
3.1
|
|
Bank of America Corp.
|
2.6
|
2.1
|
|
Boston Scientific Corp.
|
2.5
|
2.0
|
|
Ford Motor Co.
|
2.4
|
2.9
|
|
Delta Air Lines, Inc.
|
2.0
|
1.5
|
|
The AES Corp.
|
1.9
|
1.8
|
|
Rock-Tenn Co. Class A
|
1.7
|
1.7
|
|
|
31.7
|
|
|
Top Five Market Sectors as of January 31, 2014
|
|
|
% of fund's
net assets
|
% of fund's net assets
6 months ago
|
|
Consumer Discretionary
|
23.6
|
26.0
|
|
Materials
|
12.3
|
11.3
|
|
Financials
|
11.4
|
9.9
|
|
Health Care
|
10.9
|
10.6
|
|
Industrials
|
10.7
|
11.2
|
|
Asset Allocation (% of fund's net assets)
|
|
As of January 31, 2014
*
|
As of July 31, 2013
**
|
|
Stocks 91.7%
|
|
|
Stocks 91.2%
|
|
|
Bonds 0.6%
|
|
|
Bonds 0.3%
|
|
|
Convertible
Securities 0.1%
|
|
|
Convertible
Securities 0.1%
|
|
|
Other Investments 0.0%
|
|
|
Other Investments 0.1%
|
|
|
Short-Term
Investments and
Net Other Assets (Liabilities) 7.6%
|
|
|
Short-Term
Investments and
Net Other Assets (Liabilities) 8.3%
|
|
|
*
Foreign investments
|
14.9%
|
|
**
Foreign investments
|
13.4%
|
|
Semiannual Report
Investments January 31, 2014 (Unaudited)
Showing Percentage of Net Assets
|
Common Stocks - 91.5%
|
|
|
Shares
|
|
Value (000s)
|
|
CONSUMER DISCRETIONARY - 23.0%
|
|
Auto Components - 1.9%
|
|
Delphi Automotive PLC
|
446,000
|
|
$ 27,157
|
|
Tenneco, Inc. (a)
|
630,300
|
|
35,826
|
|
TRW Automotive Holdings Corp. (a)
|
298,400
|
|
22,126
|
|
|
|
85,109
|
|
Automobiles - 5.7%
|
|
Ford Motor Co.
|
7,095,667
|
|
106,151
|
|
General Motors Co.
|
3,475,822
|
|
125,408
|
|
General Motors Co.:
|
|
|
|
|
warrants 7/10/16 (a)
|
384,439
|
|
10,245
|
|
warrants 7/10/19 (a)
|
384,439
|
|
7,258
|
|
Motors Liquidation Co. GUC Trust (a)
|
100,812
|
|
3,110
|
|
|
|
252,172
|
|
Diversified Consumer Services - 3.6%
|
|
Service Corp. International
|
8,897,167
|
|
157,480
|
|
Hotels, Restaurants & Leisure - 0.1%
|
|
Penn National Gaming, Inc. (a)
|
297,660
|
|
3,492
|
|
Station Holdco LLC unit (g)(h)
|
116,342
|
|
14
|
|
|
|
3,506
|
|
Household Durables - 2.1%
|
|
Hovnanian Enterprises, Inc. Class A (a)(e)
|
1,181,000
|
|
7,121
|
|
Lennar Corp. Class A
|
576,600
|
|
23,156
|
|
Newell Rubbermaid, Inc.
|
1,935,853
|
|
59,818
|
|
|
|
90,095
|
|
Media - 6.8%
|
|
Cinemark Holdings, Inc.
|
2,129,655
|
|
62,420
|
|
Comcast Corp. Class A
|
3,208,166
|
|
174,685
|
|
Gray Television, Inc. (a)(f)
|
3,167,163
|
|
36,042
|
|
Nexstar Broadcasting Group, Inc. Class A
|
478,402
|
|
22,987
|
|
|
|
296,134
|
|
Specialty Retail - 2.8%
|
|
Asbury Automotive Group, Inc. (a)
|
314,878
|
|
14,806
|
|
GameStop Corp. Class A (e)
|
2,061,075
|
|
72,282
|
|
Sally Beauty Holdings, Inc. (a)
|
1,303,600
|
|
36,996
|
|
|
|
124,084
|
|
TOTAL CONSUMER DISCRETIONARY
|
|
1,008,580
|
|
Common Stocks - continued
|
|
|
Shares
|
|
Value (000s)
|
|
CONSUMER STAPLES - 1.6%
|
|
Food Products - 1.4%
|
|
ConAgra Foods, Inc.
|
438,800
|
|
$ 13,949
|
|
Darling International, Inc. (a)
|
2,452,617
|
|
47,973
|
|
|
|
61,922
|
|
Personal Products - 0.2%
|
|
Revlon, Inc. (a)
|
459,739
|
|
10,795
|
|
TOTAL CONSUMER STAPLES
|
|
72,717
|
|
ENERGY - 9.3%
|
|
Energy Equipment & Services - 2.6%
|
|
Ensco PLC Class A
|
90,000
|
|
4,533
|
|
Halliburton Co.
|
943,707
|
|
46,251
|
|
Noble Corp.
|
753,990
|
|
23,396
|
|
Oil States International, Inc. (a)
|
203,434
|
|
19,113
|
|
Schlumberger Ltd.
|
90,600
|
|
7,934
|
|
Transocean Ltd. (United States)
|
316,300
|
|
13,689
|
|
|
|
114,916
|
|
Oil, Gas & Consumable Fuels - 6.7%
|
|
Alpha Natural Resources, Inc. (a)
|
5,150,437
|
|
29,254
|
|
Continental Resources, Inc. (a)(e)
|
384,513
|
|
42,373
|
|
Hess Corp.
|
633,490
|
|
47,822
|
|
HollyFrontier Corp.
|
1,208,529
|
|
55,955
|
|
Kodiak Oil & Gas Corp. (a)
|
1,639,653
|
|
17,397
|
|
Peabody Energy Corp.
|
677,175
|
|
11,546
|
|
Range Resources Corp.
|
202,800
|
|
17,479
|
|
Valero Energy Corp.
|
1,003,334
|
|
51,270
|
|
Western Refining, Inc. (e)
|
511,986
|
|
20,024
|
|
|
|
293,120
|
|
TOTAL ENERGY
|
|
408,036
|
|
FINANCIALS - 11.2%
|
|
Commercial Banks - 4.1%
|
|
Barclays PLC sponsored ADR (e)
|
1,945,679
|
|
34,828
|
|
CIT Group, Inc.
|
170,690
|
|
7,946
|
|
Huntington Bancshares, Inc.
|
7,094,120
|
|
64,344
|
|
Regions Financial Corp.
|
4,218,220
|
|
42,899
|
|
SunTrust Banks, Inc.
|
836,400
|
|
30,964
|
|
|
|
180,981
|
|
Common Stocks - continued
|
|
|
Shares
|
|
Value (000s)
|
|
FINANCIALS - continued
|
|
Consumer Finance - 1.0%
|
|
American Express Co.
|
515,752
|
|
$ 43,849
|
|
Diversified Financial Services - 3.8%
|
|
Bank of America Corp.
|
6,881,001
|
|
115,257
|
|
Citigroup, Inc.
|
1,110,553
|
|
52,674
|
|
|
|
167,931
|
|
Insurance - 1.2%
|
|
AFLAC, Inc.
|
530,400
|
|
33,299
|
|
Lincoln National Corp.
|
360,400
|
|
17,310
|
|
|
|
50,609
|
|
Real Estate Investment Trusts - 0.6%
|
|
Host Hotels & Resorts, Inc.
|
832,331
|
|
15,307
|
|
Sabra Health Care REIT, Inc.
|
452,492
|
|
13,091
|
|
|
|
28,398
|
|
Real Estate Management & Development - 0.4%
|
|
Realogy Holdings Corp. (a)
|
369,860
|
|
16,855
|
|
Thrifts & Mortgage Finance - 0.1%
|
|
MGIC Investment Corp. (a)
|
328,300
|
|
2,787
|
|
TOTAL FINANCIALS
|
|
491,410
|
|
HEALTH CARE - 10.9%
|
|
Health Care Equipment & Supplies - 2.9%
|
|
Boston Scientific Corp. (a)
|
8,034,144
|
|
108,702
|
|
Covidien PLC
|
286,325
|
|
19,539
|
|
|
|
128,241
|
|
Health Care Providers & Services - 5.3%
|
|
Community Health Systems, Inc. (a)
|
1,152,373
|
|
47,720
|
|
DaVita HealthCare Partners, Inc. (a)
|
606,706
|
|
39,393
|
|
HCA Holdings, Inc. (a)
|
998,521
|
|
50,196
|
|
Tenet Healthcare Corp. (a)
|
1,535,663
|
|
70,656
|
|
Universal Health Services, Inc. Class B
|
317,795
|
|
26,066
|
|
|
|
234,031
|
|
Pharmaceuticals - 2.7%
|
|
Johnson & Johnson
|
127,900
|
|
11,315
|
|
Common Stocks - continued
|
|
|
Shares
|
|
Value (000s)
|
|
HEALTH CARE - continued
|
|
Pharmaceuticals - continued
|
|
Merck & Co., Inc.
|
1,321,200
|
|
$ 69,984
|
|
Sanofi SA sponsored ADR
|
745,266
|
|
36,444
|
|
|
|
117,743
|
|
TOTAL HEALTH CARE
|
|
480,015
|
|
INDUSTRIALS - 10.6%
|
|
Aerospace & Defense - 1.6%
|
|
Honeywell International, Inc.
|
387,924
|
|
35,390
|
|
Huntington Ingalls Industries, Inc.
|
196,360
|
|
18,658
|
|
Textron, Inc.
|
497,300
|
|
17,654
|
|
|
|
71,702
|
|
Airlines - 3.5%
|
|
American Airlines Group, Inc. (a)(e)
|
1,236,200
|
|
41,475
|
|
Delta Air Lines, Inc.
|
2,920,820
|
|
89,406
|
|
Southwest Airlines Co.
|
478,033
|
|
10,015
|
|
United Continental Holdings, Inc. (a)
|
309,700
|
|
14,197
|
|
|
|
155,093
|
|
Building Products - 1.0%
|
|
Allegion PLC (a)
|
201,992
|
|
9,968
|
|
Armstrong World Industries, Inc. (a)
|
580,581
|
|
32,327
|
|
|
|
42,295
|
|
Commercial Services & Supplies - 0.9%
|
|
Deluxe Corp.
|
626,387
|
|
30,411
|
|
Tyco International Ltd.
|
267,791
|
|
10,843
|
|
|
|
41,254
|
|
Electrical Equipment - 0.6%
|
|
Emerson Electric Co.
|
136,500
|
|
9,001
|
|
Generac Holdings, Inc.
|
373,058
|
|
17,955
|
|
|
|
26,956
|
|
Industrial Conglomerates - 0.5%
|
|
General Electric Co.
|
896,117
|
|
22,519
|
|
Machinery - 1.7%
|
|
Harsco Corp.
|
854,076
|
|
21,685
|
|
Ingersoll-Rand PLC
|
605,977
|
|
35,625
|
|
Pentair Ltd.
|
64,254
|
|
4,776
|
|
Timken Co.
|
187,566
|
|
10,566
|
|
|
|
72,652
|
|
Common Stocks - continued
|
|
|
Shares
|
|
Value (000s)
|
|
INDUSTRIALS - continued
|
|
Marine - 0.4%
|
|
Navios Maritime Holdings, Inc.
|
1,788,039
|
|
$ 16,951
|
|
Road & Rail - 0.4%
|
|
Hertz Global Holdings, Inc. (a)
|
583,000
|
|
15,170
|
|
TOTAL INDUSTRIALS
|
|
464,592
|
|
INFORMATION TECHNOLOGY - 8.6%
|
|
Communications Equipment - 1.0%
|
|
Cisco Systems, Inc.
|
1,982,651
|
|
43,440
|
|
Computers & Peripherals - 1.6%
|
|
EMC Corp.
|
1,160,700
|
|
28,135
|
|
Gaming & Leisure Properties
|
297,660
|
|
10,329
|
|
NCR Corp. (a)
|
882,069
|
|
31,040
|
|
|
|
69,504
|
|
Electronic Equipment & Components - 1.8%
|
|
Avnet, Inc.
|
489,587
|
|
20,107
|
|
Belden, Inc.
|
649,536
|
|
42,031
|
|
Corning, Inc.
|
605,400
|
|
10,419
|
|
Viasystems Group, Inc. (a)
|
441,914
|
|
5,771
|
|
|
|
78,328
|
|
Internet Software & Services - 0.3%
|
|
VeriSign, Inc. (a)
|
194,300
|
|
11,415
|
|
Semiconductors & Semiconductor Equipment - 2.6%
|
|
Advanced Micro Devices, Inc. (a)(e)
|
1,295,308
|
|
4,443
|
|
Freescale Semiconductor Holdings I Ltd. (a)(e)
|
939,600
|
|
17,035
|
|
Intersil Corp. Class A
|
1,177,013
|
|
13,347
|
|
Micron Technology, Inc. (a)
|
1,890,455
|
|
43,556
|
|
ON Semiconductor Corp. (a)
|
4,465,694
|
|
37,333
|
|
|
|
115,714
|
|
Software - 1.3%
|
|
Citrix Systems, Inc. (a)
|
190,801
|
|
10,317
|
|
Microsoft Corp.
|
1,258,432
|
|
47,632
|
|
|
|
57,949
|
|
TOTAL INFORMATION TECHNOLOGY
|
|
376,350
|
|
MATERIALS - 12.3%
|
|
Chemicals - 9.6%
|
|
H.B. Fuller Co.
|
380,376
|
|
17,718
|
|
Common Stocks - continued
|
|
|
Shares
|
|
Value (000s)
|
|
MATERIALS - continued
|
|
Chemicals - continued
|
|
LyondellBasell Industries NV Class A
|
4,550,590
|
|
$ 358,403
|
|
OMNOVA Solutions, Inc. (a)(f)
|
2,609,132
|
|
23,587
|
|
Phosphate Holdings, Inc. (a)
|
192,500
|
|
73
|
|
W.R. Grace & Co. (a)
|
209,004
|
|
19,713
|
|
|
|
419,494
|
|
Containers & Packaging - 2.0%
|
|
Rock-Tenn Co. Class A
|
755,151
|
|
76,633
|
|
Sealed Air Corp.
|
378,366
|
|
11,801
|
|
|
|
88,434
|
|
Metals & Mining - 0.0%
|
|
Ormet Corp. (a)
|
650,000
|
|
3
|
|
|
|
|
|
Paper & Forest Products - 0.7%
|
|
Louisiana-Pacific Corp. (a)
|
1,221,110
|
|
21,406
|
|
Neenah Paper, Inc.
|
231,700
|
|
10,065
|
|
|
|
31,471
|
|
TOTAL MATERIALS
|
|
539,402
|
|
TELECOMMUNICATION SERVICES - 1.0%
|
|
Diversified Telecommunication Services - 1.0%
|
|
Frontier Communications Corp. (e)
|
4,666,144
|
|
21,931
|
|
Intelsat SA
|
855,300
|
|
17,089
|
|
Level 3 Communications, Inc. (a)
|
184,741
|
|
5,930
|
|
|
|
44,950
|
|
UTILITIES - 3.0%
|
|
Electric Utilities - 0.2%
|
|
FirstEnergy Corp.
|
341,796
|
|
10,763
|
|
Independent Power Producers & Energy Traders - 2.8%
|
|
Calpine Corp. (a)
|
1,970,200
|
|
37,394
|
|
The AES Corp.
|
5,982,695
|
|
84,117
|
|
|
|
121,511
|
|
TOTAL UTILITIES
|
|
132,274
|
|
TOTAL COMMON STOCKS
(Cost $2,631,315)
|
$ 4,018,326
|
|
Nonconvertible Preferred Stocks - 0.2%
|
|
|
Shares
|
|
Value (000s)
|
|
FINANCIALS - 0.2%
|
|
Diversified Financial Services - 0.2%
|
|
GMAC Capital Trust I Series 2, 8.125%
(Cost $9,025)
|
360,987
|
|
$ 9,884
|
|
Corporate Bonds - 0.7%
|
|
|
Principal Amount (000s)
|
|
|
|
Convertible Bonds - 0.1%
|
|
INDUSTRIALS - 0.1%
|
|
Marine - 0.1%
|
|
Genco Shipping & Trading Ltd. 5% 8/15/15
|
|
$ 9,034
|
|
4,884
|
|
Nonconvertible Bonds - 0.6%
|
|
CONSUMER DISCRETIONARY - 0.6%
|
|
Automobiles - 0.0%
|
|
General Motors Corp.:
|
|
|
|
|
|
6.75% 5/1/28 (d)
|
|
2,515
|
|
0
|
|
7.125% 7/15/49 (d)
|
|
6,805
|
|
0
|
|
7.2% 1/15/11 (d)
|
|
18,790
|
|
0
|
|
8.25% 7/15/23 (d)
|
|
20,460
|
|
0
|
|
8.375% 7/15/33 (d)
|
|
41,210
|
|
0
|
|
8.8% 3/1/21 (d)
|
|
8,800
|
|
0
|
|
|
|
|
|
0
|
|
Multiline Retail - 0.6%
|
|
The Bon-Ton Department Stores, Inc.:
|
|
|
|
|
|
8% 6/15/21
|
|
11,475
|
|
11,116
|
|
10.625% 7/15/17
|
|
13,962
|
|
13,927
|
|
|
|
25,043
|
|
TOTAL CORPORATE BONDS
(Cost $29,088)
|
$ 29,927
|
|
Money Market Funds - 10.3%
|
|
|
Shares
|
|
Value (000s)
|
|
Fidelity Cash Central Fund, 0.10% (b)
|
340,100,055
|
|
$ 340,100
|
|
Fidelity Securities Lending Cash Central Fund, 0.09% (b)(c)
|
115,143,633
|
|
115,144
|
|
TOTAL MONEY MARKET FUNDS
(Cost $455,244)
|
$ 455,244
|
|
TOTAL INVESTMENT PORTFOLIO - 102.7%
(Cost $3,124,672)
|
|
4,513,381
|
|
NET OTHER ASSETS (LIABILITIES) - (2.7)%
|
|
(120,661
)
|
|
NET ASSETS - 100%
|
$ 4,392,720
|
|
Legend
|
|
(a) Non-income producing
|
|
(b) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the
annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon
request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
|
|
(c) Investment made with cash collateral received from securities on loan.
|
|
(d) Non-income producing - Security is in default.
|
|
(e) Security or a portion of the security is on loan at period end.
|
|
(f) Affiliated company
|
|
(g) Investment is owned by an entity that is treated as a corporation for U.S. tax purposes and is owned by the Fund.
|
|
(h) 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 $14,000 or 0.0% of net assets.
|
|
Additional information on each restricted holding is as follows:
|
|
Security
|
Acquisition Date
|
Acquisition Cost (000s)
|
|
Station Holdco LLC unit
|
10/28/08 - 12/1/08
|
$ 4,745
|
|
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
|
$ 189
|
|
Fidelity Securities Lending Cash Central Fund
|
286
|
|
Total
|
$ 475
|
|
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
|
Value,
end of
period
|
|
Gray Television, Inc.
|
$ 24,736
|
$ -
|
$ -
|
$ -
|
$ 36,042
|
|
OMNOVA Solutions, Inc.
|
21,030
|
-
|
-
|
-
|
23,587
|
|
Total
|
$ 45,766
|
$ -
|
$ -
|
$ -
|
$ 59,629
|
|
Other Information
|
|
The following is a summary of the inputs used, as of January 31, 2014, 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 in the table below, please refer to the Investment Valuation section in the accompanying Notes to Financial
Statements.
|
|
Valuation Inputs at Reporting Date:
|
|
Description
(Amounts in thousands)
|
Total
|
Level 1
|
Level 2
|
Level 3
|
|
Investments in Securities:
|
|
|
|
|
|
Equities:
|
|
|
|
|
|
Consumer Discretionary
|
$ 1,008,580
|
$ 1,008,566
|
$ -
|
$ 14
|
|
Consumer Staples
|
72,717
|
72,717
|
-
|
-
|
|
Energy
|
408,036
|
408,036
|
-
|
-
|
|
Financials
|
501,294
|
501,294
|
-
|
-
|
|
Health Care
|
480,015
|
480,015
|
-
|
-
|
|
Industrials
|
464,592
|
464,592
|
-
|
-
|
|
Information Technology
|
376,350
|
376,350
|
-
|
-
|
|
Materials
|
539,402
|
539,402
|
-
|
-
|
|
Telecommunication Services
|
44,950
|
44,950
|
-
|
-
|
|
Utilities
|
132,274
|
132,274
|
-
|
-
|
|
Corporate Bonds
|
29,927
|
-
|
29,927
|
-
|
|
Money Market Funds
|
455,244
|
455,244
|
-
|
-
|
|
Total Investments in Securities:
|
$ 4,513,381
|
$ 4,483,440
|
$ 29,927
|
$ 14
|
|
Other Information - continued
|
|
Distribution of investments by country or territory of incorporation, as a percentage of total net assets, is as follows (Unaudited):
|
|
United States of America
|
85.1%
|
|
Netherlands
|
8.2%
|
|
Ireland
|
1.4%
|
|
United Kingdom
|
1.4%
|
|
Others (Individually Less Than 1%)
|
3.9%
|
|
|
100.0%
|
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities
|
Amounts in thousands (except per-share amounts)
|
January 31, 2014 (Unaudited)
|
|
|
|
|
|
Assets
|
|
|
|
Investment in securities, at value (including securities loaned of $111,636) - See
accompanying schedule:
Unaffiliated issuers (cost $2,634,463)
|
$ 3,998,508
|
|
|
Fidelity Central Funds (cost $455,244)
|
455,244
|
|
|
Other affiliated issuers (cost $34,965)
|
59,629
|
|
|
Total Investments (cost $3,124,672)
|
|
$ 4,513,381
|
|
Receivable for fund shares sold
|
|
7,742
|
|
Dividends receivable
|
|
5,359
|
|
Interest receivable
|
|
888
|
|
Distributions receivable from Fidelity Central Funds
|
|
126
|
|
Prepaid expenses
|
|
9
|
|
Other receivables
|
|
12
|
|
Total assets
|
|
4,527,517
|
|
|
|
|
|
Liabilities
|
|
|
|
Payable for investments purchased
|
$ 4,768
|
|
|
Payable for fund shares redeemed
|
10,234
|
|
|
Accrued management fee
|
2,244
|
|
|
Distribution and service plan fees payable
|
1,319
|
|
|
Other affiliated payables
|
759
|
|
|
Other payables and accrued expenses
|
329
|
|
|
Collateral on securities loaned, at value
|
115,144
|
|
|
Total liabilities
|
|
134,797
|
|
|
|
|
|
Net Assets
|
|
$ 4,392,720
|
|
Net Assets consist of:
|
|
|
|
Paid in capital
|
|
$ 3,356,192
|
|
Undistributed net investment income
|
|
3,687
|
|
Accumulated undistributed net realized gain (loss) on investments
|
|
(355,868)
|
|
Net unrealized appreciation (depreciation) on investments
|
|
1,388,709
|
|
Net Assets
|
|
$ 4,392,720
|
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Assets and Liabilities - continued
|
Amounts in thousands (except per-share amounts)
|
January 31, 2014 (Unaudited)
|
|
|
|
|
|
Calculation of Maximum Offering Price
Class A:
Net Asset Value
and redemption price per share ($1,680,374 ÷ 32,341.16 shares)
|
|
$ 51.96
|
|
|
|
|
|
Maximum offering price per share (100/94.25 of $51.96)
|
|
$ 55.13
|
|
Class T
:
Net Asset Value
and redemption price per share ($975,849 ÷ 19,170.21 shares)
|
|
$ 50.90
|
|
|
|
|
|
Maximum offering price per share (100/96.50 of $50.90)
|
|
$ 52.75
|
|
Class B
:
Net Asset Value
and offering price per share ($69,257 ÷ 1,422.59 shares)
A
|
|
$ 48.68
|
|
|
|
|
|
Class C
:
Net Asset Value
and offering price per share ($570,829 ÷ 11,709.68 shares)
A
|
|
$ 48.75
|
|
|
|
|
|
Institutional Class
:
Net Asset Value
, offering price and redemption price per share ($1,088,458 ÷ 20,648.31
shares)
|
|
$ 52.71
|
|
|
|
|
|
Class Z
:
Net Asset Value
, offering price and redemption price per share ($7,953 ÷ 150.86 shares)
|
|
$ 52.72
|
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.
Semiannual Report
Financial Statements - continued
Statement of Operations
|
Amounts in thousands Six months ended January 31, 2014 (Unaudited)
|
|
|
|
|
|
Investment Income
|
|
|
|
Dividends
|
|
$ 30,173
|
|
Interest
|
|
2,358
|
|
Income from Fidelity Central Funds
|
|
475
|
|
Total income
|
|
33,006
|
|
|
|
|
|
Expenses
|
|
|
|
Management fee
|
$ 12,854
|
|
|
Transfer agent fees
|
4,002
|
|
|
Distribution and service plan fees
|
7,657
|
|
|
Accounting and security lending fees
|
533
|
|
|
Custodian fees and expenses
|
21
|
|
|
Independent trustees' compensation
|
9
|
|
|
Registration fees
|
138
|
|
|
Audit
|
41
|
|
|
Legal
|
10
|
|
|
Miscellaneous
|
15
|
|
|
Total expenses before reductions
|
25,280
|
|
|
Expense reductions
|
(40
)
|
25,240
|
|
Net investment income (loss)
|
|
7,766
|
|
Realized and Unrealized Gain (Loss)
Net realized gain (loss) on:
|
|
|
|
Investment securities:
|
|
|
|
Unaffiliated issuers
|
|
3,228
|
|
Change in net unrealized appreciation (depreciation) on investment securities
|
|
279,234
|
|
Net gain (loss)
|
|
282,462
|
|
Net
increase (decrease) in net assets resulting from operations
|
|
$ 290,228
|
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Statement of Changes in Net Assets
|
Amounts in thousands
|
Six months ended January 31,
2014 (Unaudited)
|
Year ended
July 31,
2013
|
|
Increase (Decrease) in Net Assets
|
|
|
|
Operations
|
|
|
|
Net investment income (loss)
|
$ 7,766
|
$ 33,015
|
|
Net realized gain (loss)
|
3,228
|
272,683
|
|
Change in net unrealized appreciation (depreciation)
|
279,234
|
883,039
|
|
Net
increase (decrease) in net assets resulting
from operations
|
290,228
|
1,188,737
|
|
Distributions to shareholders from net investment income
|
(11,575
)
|
(2,596
)
|
|
Share transactions - net increase (decrease)
|
39,869
|
(90,255
)
|
|
Total increase (decrease) in net assets
|
318,522
|
1,095,886
|
|
|
|
|
|
Net Assets
|
|
|
|
Beginning of period
|
4,074,198
|
2,978,312
|
|
End of period (including undistributed net investment income of $3,687 and undistributed
net investment income of $7,496, respectively)
|
$ 4,392,720
|
$ 4,074,198
|
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Financial Highlights - Class A
|
|
Six months ended
January 31, 2014
|
Years ended July 31,
|
|
|
(Unaudited)
|
2013
|
2012
|
2011
|
2010
|
2009
|
|
Selected Per-Share Data
|
|
|
|
|
|
|
|
Net asset value, beginning of period
|
$ 48.63
|
$ 34.29
|
$ 35.01
|
$ 28.55
|
$ 23.69
|
$ 36.47
|
|
Income from Investment Operations
|
|
|
|
|
|
|
|
Net investment income (loss)
E
|
.12
|
.44
H
|
.11
|
(.08)
|
.05
|
.27
|
|
Net realized and unrealized gain (loss)
|
3.37
|
13.94
|
(.51
)
|
6.61
|
4.91
|
(12.93
)
|
|
Total from investment operations
|
3.49
|
14.38
|
(.40
)
|
6.53
|
4.96
|
(12.66
)
|
|
Distributions from net investment income
|
(.16)
|
(.04)
|
(.32)
|
(.01)
I
|
(.09)
|
(.12)
|
|
Distributions from net realized gain
|
-
|
-
|
-
|
(.06
)
I
|
(.01
)
|
-
|
|
Total distributions
|
(.16
)
|
(.04
)
|
(.32
)
|
(.07
)
|
(.10
)
|
(.12
)
|
|
Net asset value, end of period
|
$ 51.96
|
$ 48.63
|
$ 34.29
|
$ 35.01
|
$ 28.55
|
$ 23.69
|
|
Total Return
B, C, D
|
7.19%
|
41.95%
|
(1.04)%
|
22.88%
|
20.96%
|
(34.57)%
|
|
Ratios to Average Net Assets
F,
J
|
|
|
|
|
|
|
|
Expenses before reductions
|
1.08%
A
|
1.11%
|
1.13%
|
1.13%
|
1.15%
|
1.20%
|
|
Expenses net of fee waivers, if any
|
1.08%
A
|
1.11%
|
1.13%
|
1.13%
|
1.15%
|
1.20%
|
|
Expenses net of all reductions
|
1.08%
A
|
1.10%
|
1.13%
|
1.12%
|
1.15%
|
1.20%
|
|
Net investment income (loss)
|
.47%
A
|
1.07%
H
|
.33%
|
(.23)%
|
.18%
|
1.27%
|
|
Supplemental Data
|
|
|
|
|
|
|
|
Net assets, end of period (in millions)
|
$ 1,680
|
$ 1,490
|
$ 1,106
|
$ 1,426
|
$ 1,428
|
$ 1,343
|
|
Portfolio turnover rate
G
|
12%
A
|
17%
|
30%
|
18%
|
22%
|
45%
|
|
A
Annualized
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
Total returns do not include the effect of the
sales charges.
E
Calculated based on average shares outstanding during the period.
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
Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H
Investment income per share reflects a large, non-recurring dividend which amounted to $.10 per share.
Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .84%.
I
The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year
shown.
J
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.
|
Semiannual Report
See accompanying notes which are an integral part of the financial statements.
Financial Highlights - Class T
|
|
Six months ended
January 31, 2014
|
Years ended July 31,
|
|
|
(Unaudited)
|
2013
|
2012
|
2011
|
2010
|
2009
|
|
Selected Per-Share Data
|
|
|
|
|
|
|
|
Net asset value, beginning of period
|
$ 47.59
|
$ 33.60
|
$ 34.36
|
$ 28.05
|
$ 23.30
|
$ 35.91
|
|
Income from Investment Operations
|
|
|
|
|
|
|
|
Net investment income (loss)
E
|
.06
|
.34
H
|
.03
|
(.15)
|
(.01)
|
.22
|
|
Net realized and unrealized gain (loss)
|
3.29
|
13.65
|
(.50
)
|
6.48
|
4.83
|
(12.73
)
|
|
Total from investment operations
|
3.35
|
13.99
|
(.47
)
|
6.33
|
4.82
|
(12.51
)
|
|
Distributions from net investment income
|
(.04)
|
-
K
|
(.29)
|
-
I
|
(.06)
|
(.10)
|
|
Distributions from net realized gain
|
-
|
-
|
-
|
(.02
)
I
|
(.01
)
|
-
|
|
Total distributions
|
(.04
)
|
-
K
|
(.29
)
|
(.02
)
|
(.07
)
|
(.10
)
|
|
Net asset value, end of period
|
$ 50.90
|
$ 47.59
|
$ 33.60
|
$ 34.36
|
$ 28.05
|
$ 23.30
|
|
Total Return
B, C, D
|
7.05%
|
41.65%
|
(1.26)%
|
22.58%
|
20.72%
|
(34.71)%
|
|
Ratios to Average Net Assets
F,
J
|
|
|
|
|
|
|
|
Expenses before reductions
|
1.32%
A
|
1.34%
|
1.35%
|
1.35%
|
1.37%
|
1.42%
|
|
Expenses net of fee waivers, if any
|
1.32%
A
|
1.34%
|
1.35%
|
1.35%
|
1.37%
|
1.42%
|
|
Expenses net of all reductions
|
1.32%
A
|
1.33%
|
1.35%
|
1.35%
|
1.37%
|
1.42%
|
|
Net investment income (loss)
|
.23%
A
|
.85%
H
|
.11%
|
(.45)%
|
(.04)%
|
1.05%
|
|
Supplemental Data
|
|
|
|
|
|
|
|
Net assets, end of period (in millions)
|
$ 976
|
$ 1,012
|
$ 753
|
$ 906
|
$ 867
|
$ 728
|
|
Portfolio turnover rate
G
|
12%
A
|
17%
|
30%
|
18%
|
22%
|
45%
|
|
A
Annualized
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
Total returns do not include the effect of the
sales charges.
E
Calculated based on average shares outstanding during the period.
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
Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H
Investment income per share reflects a large, non-recurring dividend which amounted to $.09 per share.
Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .61%.
I
The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year
shown.
J
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.
K
Amount represents less than $.01 per share.
|
Semiannual Report
See accompanying notes which are an integral part of the financial statements.
Financial Highlights - Class B
|
|
Six months ended
January 31, 2014
|
Years ended July 31,
|
|
|
(Unaudited)
|
2013
|
2012
|
2011
|
2010
|
2009
|
|
Selected Per-Share Data
|
|
|
|
|
|
|
|
Net asset value, beginning of period
|
$ 45.60
|
$ 32.38
|
$ 33.24
|
$ 27.27
|
$ 22.73
|
$ 35.10
|
|
Income from Investment Operations
|
|
|
|
|
|
|
|
Net investment income (loss)
E
|
(.08)
|
.10
H
|
(.15)
|
(.33)
|
(.17)
|
.10
|
|
Net realized and unrealized gain (loss)
|
3.16
|
13.12
|
(.49
)
|
6.30
|
4.72
|
(12.43
)
|
|
Total from investment operations
|
3.08
|
13.22
|
(.64
)
|
5.97
|
4.55
|
(12.33
)
|
|
Distributions from net investment income
|
-
|
-
|
(.22)
|
-
|
-
|
(.04)
|
|
Distributions from net realized gain
|
-
|
-
|
-
|
-
|
(.01
)
|
-
|
|
Total distributions
|
-
|
-
|
(.22
)
|
-
|
(.01
)
|
(.04
)
|
|
Net asset value, end of period
|
$ 48.68
|
$ 45.60
|
$ 32.38
|
$ 33.24
|
$ 27.27
|
$ 22.73
|
|
Total Return
B, C, D
|
6.75%
|
40.83%
|
(1.85)%
|
21.89%
|
20.00%
|
(35.06)%
|
|
Ratios to Average Net Assets
F,
I
|
|
|
|
|
|
|
|
Expenses before reductions
|
1.88%
A
|
1.91%
|
1.94%
|
1.93%
|
1.96%
|
1.97%
|
|
Expenses net of fee waivers, if any
|
1.88%
A
|
1.91%
|
1.94%
|
1.93%
|
1.96%
|
1.97%
|
|
Expenses net of all reductions
|
1.88%
A
|
1.91%
|
1.93%
|
1.92%
|
1.96%
|
1.97%
|
|
Net investment income (loss)
|
(.33)%
A
|
.27%
H
|
(.48)%
|
(1.03)%
|
(.63)%
|
.49%
|
|
Supplemental Data
|
|
|
|
|
|
|
|
Net assets, end of period (in millions)
|
$ 69
|
$ 80
|
$ 84
|
$ 121
|
$ 131
|
$ 128
|
|
Portfolio turnover rate
G
|
12%
A
|
17%
|
30%
|
18%
|
22%
|
45%
|
|
A
Annualized
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
Total returns do not include the effect of the
contingent deferred sales charge.
E
Calculated based on average shares outstanding during the period.
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
Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H
Investment income per share reflects a large, non-recurring dividend which
amounted to $.09 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .04%.
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.
|
Semiannual Report
See accompanying notes which are an integral part of the financial statements.
Financial Highlights - Class C
|
|
Six months ended
January 31, 2014
|
Years ended July 31,
|
|
|
(Unaudited)
|
2013
|
2012
|
2011
|
2010
|
2009
|
|
Selected Per-Share Data
|
|
|
|
|
|
|
|
Net asset value, beginning of period
|
$ 45.65
|
$ 32.40
|
$ 33.24
|
$ 27.26
|
$ 22.70
|
$ 35.05
|
|
Income from Investment Operations
|
|
|
|
|
|
|
|
Net investment income (loss)
E
|
(.07)
|
.13
H
|
(.12)
|
(.31)
|
(.15)
|
.11
|
|
Net realized and unrealized gain (loss)
|
3.17
|
13.12
|
(.49
)
|
6.29
|
4.72
|
(12.42
)
|
|
Total from investment operations
|
3.10
|
13.25
|
(.61
)
|
5.98
|
4.57
|
(12.31
)
|
|
Distributions from net investment income
|
-
|
-
|
(.23)
|
-
|
-
J
|
(.04)
|
|
Distributions from net realized gain
|
-
|
-
|
-
|
-
|
(.01
)
|
-
|
|
Total distributions
|
-
|
-
|
(.23
)
|
-
|
(.01
)
|
(.04
)
|
|
Net asset value, end of period
|
$ 48.75
|
$ 45.65
|
$ 32.40
|
$ 33.24
|
$ 27.26
|
$ 22.70
|
|
Total Return
B, C, D
|
6.79%
|
40.90%
|
(1.76)%
|
21.94%
|
20.13%
|
(35.06)%
|
|
Ratios to Average Net Assets
F,
I
|
|
|
|
|
|
|
|
Expenses before reductions
|
1.83%
A
|
1.85%
|
1.87%
|
1.86%
|
1.89%
|
1.94%
|
|
Expenses net of fee waivers, if any
|
1.83%
A
|
1.85%
|
1.87%
|
1.86%
|
1.89%
|
1.94%
|
|
Expenses net of all reductions
|
1.83%
A
|
1.85%
|
1.86%
|
1.86%
|
1.89%
|
1.94%
|
|
Net investment income (loss)
|
(.28)%
A
|
.33%
H
|
(.41)%
|
(.97)%
|
(.56)%
|
.53%
|
|
Supplemental Data
|
|
|
|
|
|
|
|
Net assets, end of period (in millions)
|
$ 571
|
$ 527
|
$ 405
|
$ 522
|
$ 525
|
$ 496
|
|
Portfolio turnover rate
G
|
12%
A
|
17%
|
30%
|
18%
|
22%
|
45%
|
|
A
Annualized
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
Total returns do not include the effect of the
contingent deferred sales charge.
E
Calculated based on average shares outstanding during the period.
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
Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H
Investment income per share reflects a large, non-recurring dividend which
amounted to $.09 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .10%.
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
Amount represents less than $.01 per share.
|
Semiannual Report
See accompanying notes which are an integral part of the financial statements.
Financial Highlights - Institutional Class
|
|
Six months ended
January 31, 2014
|
Years ended July 31,
|
|
|
(Unaudited)
|
2013
|
2012
|
2011
|
2010
|
2009
|
|
Selected Per-Share Data
|
|
|
|
|
|
|
|
Net asset value, beginning of period
|
$ 49.39
|
$ 34.77
|
$ 35.44
|
$ 28.90
|
$ 23.97
|
$ 36.85
|
|
Income from Investment Operations
|
|
|
|
|
|
|
|
Net investment income (loss)
D
|
.19
|
.57
G
|
.20
|
.02
|
.13
|
.33
|
|
Net realized and unrealized gain (loss)
|
3.41
|
14.13
|
(.52
)
|
6.67
|
4.96
|
(13.06
)
|
|
Total from investment operations
|
3.60
|
14.70
|
(.32
)
|
6.69
|
5.09
|
(12.73
)
|
|
Distributions from net investment income
|
(.28)
|
(.08)
|
(.35)
|
(.05)
H
|
(.15)
|
(.15)
|
|
Distributions from net realized gain
|
-
|
-
|
-
|
(.10
)
H
|
(.01
)
|
-
|
|
Total distributions
|
(.28
)
|
(.08
)
|
(.35
)
|
(.15
)
|
(.16
)
|
(.15
)
|
|
Net asset value, end of period
|
$ 52.71
|
$ 49.39
|
$ 34.77
|
$ 35.44
|
$ 28.90
|
$ 23.97
|
|
Total Return
B, C
|
7.32%
|
42.34%
|
(.77)%
|
23.21%
|
21.30%
|
(34.38)%
|
|
Ratios to Average Net Assets
E, I
|
|
|
|
|
|
|
|
Expenses before reductions
|
.82%
A
|
.84%
|
.86%
|
.85%
|
.87%
|
.93%
|
|
Expenses net of fee waivers, if any
|
.82%
A
|
.84%
|
.86%
|
.85%
|
.87%
|
.93%
|
|
Expenses net of all reductions
|
.82%
A
|
.84%
|
.85%
|
.85%
|
.87%
|
.93%
|
|
Net investment income (loss)
|
.73%
A
|
1.34%
G
|
.60%
|
.04%
|
.46%
|
1.54%
|
|
Supplemental Data
|
|
|
|
|
|
|
|
Net assets, end of period (in millions)
|
$ 1,088
|
$ 965
|
$ 631
|
$ 694
|
$ 710
|
$ 561
|
|
Portfolio turnover rate
F
|
12%
A
|
17%
|
30%
|
18%
|
22%
|
45%
|
|
A
Annualized
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
Calculated based on average shares
outstanding during the period.
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
Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G
Investment income per share reflects a large, non-recurring dividend which amounted to $.10 per share. Excluding this non-recurring dividend, the
ratio of net investment income (loss) to average net assets would have been 1.11%.
H
The amounts shown reflect certain reclassifications related to book to tax differences that were made in the year shown.
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.
|
Semiannual Report
See accompanying notes which are an integral part of the financial statements.
Financial Highlights - Class Z
|
|
Period ended
January 31, 2014
G
|
|
|
(Unaudited)
|
|
Selected Per-Share Data
|
|
|
Net asset value, beginning of period
|
$ 49.58
|
|
Income from Investment Operations
|
|
|
Net investment income (loss)
D
|
.21
|
|
Net realized and unrealized gain (loss)
|
3.25
|
|
Total from investment operations
|
3.46
|
|
Distributions from net investment income
|
(.32
)
|
|
Net asset value, end of period
|
$ 52.72
|
|
Total Return
B, C
|
7.00%
|
|
Ratios to Average Net Assets
E,
H
|
|
|
Expenses before reductions
|
.68%
A
|
|
Expenses net of fee waivers, if any
|
.68%
A
|
|
Expenses net of all reductions
|
.68%
A
|
|
Net investment income (loss)
|
.86%
A
|
|
Supplemental Data
|
|
|
Net assets, end of period (in millions)
|
$ 8
|
|
Portfolio turnover rate
F
|
12%
A
|
A
Annualized
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
Calculated based on average shares outstanding during the period.
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
Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
G
For the period August 13, 2013 (commencement of sale of shares) to January 31, 2014.
H
Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of
fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the
class.
See accompanying notes which are an integral part of the financial statements.
Semiannual Report
Notes
to
Financial Statements
For the period ended January 31, 2014 (Unaudited)
(Amounts in thousands except percentages)
1. Organization.
Fidelity Advisor® Leveraged Company Stock Fund (the Fund) is a fund of Fidelity Advisor Series I (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 August 13, 2013. The Fund
offers Class A, Class T, Class C, Institutional Class and Class Z shares, each of which, along with Class B shares, has equal rights as to assets and
voting privileges. Class B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has
exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding
period of seven years from the initial date of purchase.
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 .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the
SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The 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
Semiannual Report
3. Significant Accounting Policies - continued
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. In accordance with valuation
policies and procedures approved by the Board of Trustees (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 Fidelity Management & Research Company (FMR) Fair Value Committee (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 is responsible for
approving and reporting to the Board all fair value determinations.
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.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Investment Valuation - continued
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 January 31, 2014, is included at the end of the Fund's Schedule of Investments.
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 may 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. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Subsequent to ex-dividend date the Fund determines the components of these distributions, based upon receipt of tax
filings or other correspondence relating to the underlying investment. Interest income and distributions from the Fidelity Central Funds are accrued
as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Debt obligations may
be placed on non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivables when the
collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual
status when the issuer resumes interest payments or when collectability of interest is reasonably assured.
Semiannual Report
3. Significant Accounting Policies - continued
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.
Distributions are declared and recorded on the ex-dividend date. Income dividends 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, market discount, equity-debt classifications, capital loss carryforwards and
losses deferred due to wash sales and excise tax regulations.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
|
Gross unrealized appreciation
|
$ 1,508,719
|
|
Gross unrealized depreciation
|
(117,993
)
|
|
Net unrealized appreciation (depreciation) on securities and other investments
|
$ 1,390,726
|
|
|
|
|
Tax cost
|
$ 3,122,655
|
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited.
Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in
taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that
expire. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of prior fiscal period end
and is subject to adjustment.
|
Fiscal year of expiration
|
|
|
2018
|
$ (358,992
)
|
Restricted Securities.
The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally
may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve
time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is
included at the end of the Fund's Schedule of Investments.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $275,490 and $236,074, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee.
Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment
management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate
that is based on an annual rate of .35% of the Fund's average net assets and an annualized group fee rate that averaged .25% 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
Semiannual Report
5. Fees and Other Transactions with Affiliates - continued
Management Fee - continued
investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as
assets under management increase and increases as assets under management decrease. For the reporting period, the total annualized management fee rate was .60% of the Fund's average net assets.
Distribution and Service Plan Fees.
In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service
Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total
fees and amounts retained by FDC were as follows:
|
|
Distribution
Fee
|
Service
Fee
|
Total Fees
|
Retained
by FDC
|
|
Class A
|
-%
|
.25%
|
$ 1,996
|
$ 58
|
|
Class T
|
.25%
|
.25%
|
2,521
|
-
|
|
Class B
|
.75%
|
.25%
|
377
|
284
|
|
Class C
|
.75%
|
.25%
|
2,763
|
332
|
|
|
|
|
$ 7,657
|
$ 674
|
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 T 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 T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00%
for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
|
|
Retained
by FDC
|
|
Class A
|
$ 189
|
|
Class T
|
17
|
|
Class B
*
|
17
|
|
Class C
*
|
11
|
|
|
$ 234
|
*
When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
5. Fees and Other Transactions with Affiliates - continued
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
Average
Net Assets
*
|
|
Class A
|
$ 1,527
|
.19
|
|
Class T
|
911
|
.18
|
|
Class B
|
90
|
.24
|
|
Class C
|
527
|
.19
|
|
Institutional Class
|
946
|
.18
|
|
Class Z
|
1
|
.05
|
|
|
$ 4,002
|
|
*
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.
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 $9 for the period.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be
utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay
commitment fees on its pro-rata portion of the line of credit, which amounted to $4 and is reflected in Miscellaneous expenses on the Statement of
Operations. During the period, there were no borrowings on this line of credit.
Semiannual Report
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. 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 $3,245. 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 $286, including one hundred fifty-eight dollars from securities loaned to FCM.
8. Expense Reductions.
The investment adviser voluntarily agreed to reimburse a portion of the Advisor Leveraged Company Stock Fund's Class A, Class T, Class B, Class C
and Institutional Class operating expenses. During the period, this reimbursement reduced expenses as follows:
|
|
Reimbursement
|
|
Class A
|
$ 5
|
|
Class T
|
4
|
|
Class B
|
-*
|
|
Class C
|
2
|
|
Institutional Class
|
3
|
|
|
$ 14
|
*
Amount represents two hundred fifty-nine dollars.
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 $26 for the period.
Semiannual Report
Notes to Financial Statements (Unaudited) - continued
(Amounts in thousands except percentages)
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
|
|
Six months ended
January 31,
2014
A
|
Year ended
July 31,
2013
|
|
From net investment income
|
|
|
|
Class A
|
$ 5,026
|
$ 1,121
|
|
Class T
|
905
|
84
|
|
Institutional Class
|
5,634
|
1,391
|
|
Class Z
|
10
|
-
|
|
Total
|
$ 11,575
|
$ 2,596
|
A
Distributions for Class Z are for the period August 13, 2013 (commencement of sale of shares) to January 31, 2014
.
10. Share Transactions.
Transactions for each class of shares were as follows:
|
|
Shares
|
Dollars
|
|
|
Six months ended January
31,
2014
A
|
Year ended
July 31,
2013
|
Six months ended January
31,
2014
A
|
Year ended
July 31,
2013
|
|
Class A
|
|
|
|
|
|
Shares sold
|
5,363
|
7,818
|
$ 272,948
|
$ 326,978
|
|
Reinvestment of distributions
|
94
|
27
|
4,657
|
1,036
|
|
Shares redeemed
|
(3,765
)
|
(9,447
)
|
(191,595
)
|
(384,545
)
|
|
Net increase (decrease)
|
1,692
|
(1,602
)
|
$ 86,010
|
$ (56,531
)
|
|
Class T
|
|
|
|
|
|
Shares sold
|
2,302
|
6,400
|
$ 114,357
|
$ 261,455
|
|
Reinvestment of distributions
|
18
|
2
|
845
|
79
|
|
Shares redeemed
|
(4,413
)
|
(7,533
)
|
(219,308
)
|
(301,128
)
|
|
Net increase (decrease)
|
(2,093
)
|
(1,131
)
|
$ (104,106
)
|
$ (39,594
)
|
|
Class B
|
|
|
|
|
|
Shares sold
|
10
|
34
|
$ 452
|
$ 1,361
|
|
Shares redeemed
|
(339
)
|
(874
)
|
(16,090
)
|
(33,817
)
|
|
Net increase (decrease)
|
(329
)
|
(840
)
|
$ (15,638
)
|
$ (32,456
)
|
|
Class C
|
|
|
|
|
|
Shares sold
|
972
|
1,725
|
$ 46,353
|
$ 69,238
|
|
Shares redeemed
|
(796
)
|
(2,699
)
|
(37,803
)
|
(102,735
)
|
|
Net increase (decrease)
|
176
|
(974
)
|
$ 8,550
|
$ (33,497
)
|
|
Institutional Class
|
|
|
|
|
|
Shares sold
|
3,933
|
9,112
|
$ 203,071
|
$ 385,989
|
|
Reinvestment of distributions
|
93
|
29
|
4,709
|
1,155
|
|
Shares redeemed
|
(2,926
)
|
(7,736
)
|
(150,795
)
|
(315,321
)
|
|
Net increase (decrease)
|
1,100
|
1,405
|
$ 56,985
|
$ 71,823
|
Semiannual Report
10. Share Transactions - continued
|
|
Shares
|
Dollars
|
|
|
Six months ended January
31,
2014
A
|
Year ended
July 31,
2013
|
Six months ended January
31,
2014
A
|
Year ended
July 31,
2013
|
|
Class Z
|
|
|
|
|
|
Shares sold
|
160
|
-
|
$ 8,524
|
$ -
|
|
Reinvestment of distributions
|
-*
|
-
|
10
|
-
|
|
Shares redeemed
|
(9
)
|
-
|
(466
)
|
-
|
|
Net increase (decrease)
|
151
|
-
|
$ 8,068
|
$ -
|
A
Share transactions for Class Z are for the period August 13, 2013 (commencement of sale of shares) to January 31, 2014.
*
Amount represents one hundred eighty-seven shares.
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.
Semiannual Report
Investment Adviser
Fidelity Management & Research Company
Boston, MA
Investment Sub-Advisers
FMR Co., Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
JPMorgan Chase Bank
New York, NY
(Fidelity Investment logo)(registered trademark)
ALSFZ-USAN-0314
1.9586380.100