UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-02737
Fidelity Summer Street Trust
(Exact name of registrant as specified in charter)
245 Summer St., Boston, MA 02210
(Address of principal executive offices) (Zip code)
Cynthia Lo Bessette, Secretary
245 Summer St.
Boston, Massachusetts 02210
(Name and address of agent for service)
Registrant's telephone number, including area code:
617-563-7000
Date of fiscal year end: | April 30 |
Date of reporting period: | October 31, 2020 |
Item 1.
Reports to Stockholders
Fidelity® Capital & Income Fund
Semi-Annual Report
October 31, 2020
See the inside front cover for important information about access to your fund’s shareholder reports.
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Contents
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This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT. Forms N-PORT are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-PORT may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Note to Shareholders:
Early in 2020, the outbreak and spread of a new coronavirus emerged as a public health emergency that had a major influence on financial markets, primarily based on its impact on the global economy and the outlook for corporate earnings. The virus causes a respiratory disease known as COVID-19. On March 11, the World Health Organization declared the COVID-19 outbreak a pandemic, citing sustained risk of further global spread.
In the weeks following, as the crisis worsened, we witnessed an escalating human tragedy with wide-scale social and economic consequences from coronavirus-containment measures. The outbreak of COVID-19 prompted a number of measures to limit the spread, including travel and border restrictions, quarantines, and restrictions on large gatherings. In turn, these resulted in lower consumer activity, diminished demand for a wide range of products and services, disruption in manufacturing and supply chains, and – given the wide variability in outcomes regarding the outbreak – significant market uncertainty and volatility. Amid the turmoil, global governments and central banks took unprecedented action to help support consumers, businesses, and the broader economies, and to limit disruption to financial systems.
The situation continues to unfold, and the extent and duration of its impact on financial markets and the economy remain highly uncertain. Extreme events such as the coronavirus crisis are “exogenous shocks” that can have significant adverse effects on mutual funds and their investments. Although multiple asset classes may be affected by market disruption, the duration and impact may not be the same for all types of assets.
Fidelity is committed to helping you stay informed amid news about COVID-19 and during increased market volatility, and we’re taking extra steps to be responsive to customer needs. We encourage you to visit our websites, where we offer ongoing updates, commentary, and analysis on the markets and our funds.
Investment Summary (Unaudited)
Top Five Holdings as of October 31, 2020
(by issuer, excluding cash equivalents) | % of fund's net assets |
CCO Holdings LLC/CCO Holdings Capital Corp. | 3.3 |
Ally Financial, Inc. | 2.8 |
JPMorgan Chase & Co. | 2.2 |
Bank of America Corp. | 2.2 |
CSC Holdings LLC | 1.9 |
12.4 |
Top Five Market Sectors as of October 31, 2020
% of fund's net assets | |
Energy | 11.4 |
Banks & Thrifts | 10.8 |
Technology | 9.1 |
Telecommunications | 7.6 |
Healthcare | 6.5 |
Quality Diversification (% of fund's net assets)
As of October 31, 2020 | ||
BBB | 9.7% | |
BB | 25.3% | |
B | 28.4% | |
CCC,CC,C | 8.4% | |
Not Rated | 2.3% | |
Equities | 21.1% | |
Short-Term Investments and Net Other Assets | 4.8% |
We have used ratings from Moody's Investors Service, Inc. Where Moody's® ratings are not available, we have used S&P® ratings. All ratings are as of the date indicated and do not reflect subsequent changes.
Asset Allocation (% of fund's net assets)
As of October 31, 2020* | ||
Nonconvertible Bonds | 61.2% | |
Convertible Bonds, Preferred Stocks | 0.1% | |
Common Stocks | 21.1% | |
Bank Loan Obligations | 3.8% | |
Other Investments | 9.0% | |
Short-Term Investments and Net Other Assets (Liabilities) | 4.8% |
* Foreign investments - 13.1%
Schedule of Investments October 31, 2020 (Unaudited)
Showing Percentage of Net Assets
Corporate Bonds - 61.3% | |||
Principal Amount (000s) | Value (000s) | ||
Convertible Bonds - 0.1% | |||
Energy - 0.1% | |||
Forum Energy Technologies, Inc. 9% 8/4/25 | $13,930 | $8,428 | |
Mesquite Energy, Inc. 15% 7/31/23 (a)(b) | 2,071 | 2,071 | |
10,499 | |||
Nonconvertible Bonds - 61.2% | |||
Aerospace - 3.6% | |||
BBA U.S. Holdings, Inc. 5.375% 5/1/26 (c) | 4,405 | 4,449 | |
Bombardier, Inc.: | |||
6.125% 1/15/23 (c) | 10,610 | 9,154 | |
7.5% 12/1/24 (c) | 8,870 | 6,675 | |
7.5% 3/15/25 (c) | 25,865 | 18,817 | |
7.875% 4/15/27 (c) | 47,400 | 34,529 | |
BWX Technologies, Inc. 5.375% 7/15/26 (c) | 8,510 | 8,822 | |
Kaiser Aluminum Corp. 4.625% 3/1/28 (c) | 11,215 | 11,047 | |
Moog, Inc. 4.25% 12/15/27 (c) | 3,455 | 3,546 | |
Rolls-Royce PLC 5.75% 10/15/27 (c) | 10,870 | 11,006 | |
Spirit Aerosystems, Inc. 7.5% 4/15/25 (c) | 15,000 | 15,129 | |
TransDigm UK Holdings PLC 6.875% 5/15/26 | 35,725 | 35,546 | |
TransDigm, Inc.: | |||
5.5% 11/15/27 | 96,325 | 94,037 | |
6.25% 3/15/26 (c) | 17,925 | 18,687 | |
6.375% 6/15/26 | 61,985 | 61,811 | |
6.5% 5/15/25 | 16,505 | 16,505 | |
7.5% 3/15/27 | 18,012 | 18,597 | |
Wolverine Escrow LLC: | |||
8.5% 11/15/24 (c) | 21,705 | 16,903 | |
9% 11/15/26 (c) | 22,920 | 17,484 | |
402,744 | |||
Air Transportation - 1.2% | |||
Air Canada 2013-1 Pass Through Trust 5.375% 11/15/22 (c) | 1,725 | 1,596 | |
Delta Air Lines, Inc. 7% 5/1/25 (c) | 4,635 | 5,058 | |
Delta Air Lines, Inc. / SkyMiles IP Ltd.: | |||
4.5% 10/20/25 (c) | 48,285 | 49,004 | |
4.75% 10/20/28 (c) | 39,880 | 40,777 | |
Delta Air Lines, Inc. pass-thru trust certificates 8.021% 2/10/24 | 3,849 | 3,641 | |
Hawaiian Airlines pass-thru certificates Series 2013-1 Class B, 4.95% 7/15/23 | 3,204 | 2,793 | |
Mileage Plus Holdings LLC 6.5% 6/20/27 (c) | 17,715 | 18,446 | |
Spirit Loyalty Cayman Ltd. / Spirit IP Cayman Ltd. 8% 9/20/25 (c) | 13,000 | 13,780 | |
135,095 | |||
Automotive & Auto Parts - 0.2% | |||
Allison Transmission, Inc.: | |||
5% 10/1/24 (c) | 11,405 | 11,507 | |
5.875% 6/1/29 (c) | 7,960 | 8,691 | |
Exide International Holdings LP 10.75% 10/31/21 pay-in-kind (b)(c)(d) | 858 | 798 | |
Exide Technologies: | |||
11% 10/31/24 pay-in-kind (b)(c)(d)(e) | 2,145 | 1,394 | |
11% 10/31/24 pay-in-kind (b)(c)(d)(e) | 891 | 401 | |
22,791 | |||
Banks & Thrifts - 2.8% | |||
Ally Financial, Inc.: | |||
8% 11/1/31 | 20,638 | 28,166 | |
8% 11/1/31 | 206,609 | 285,054 | |
313,220 | |||
Broadcasting - 1.7% | |||
Netflix, Inc.: | |||
4.875% 4/15/28 | 23,755 | 26,717 | |
5.375% 11/15/29 (c) | 11,075 | 12,972 | |
5.875% 11/15/28 | 64,825 | 77,453 | |
Nexstar Broadcasting, Inc.: | |||
4.75% 11/1/28 (c) | 22,300 | 22,467 | |
5.625% 7/15/27 (c) | 23,735 | 24,744 | |
Sirius XM Radio, Inc.: | |||
5% 8/1/27 (c) | 14,525 | 15,215 | |
5.375% 7/15/26 (c) | 11,315 | 11,784 | |
191,352 | |||
Building Materials - 0.4% | |||
Advanced Drain Systems, Inc. 5% 9/30/27 (c) | 2,325 | 2,433 | |
James Hardie International Finance Ltd.: | |||
4.75% 1/15/25 (c) | 7,815 | 8,010 | |
5% 1/15/28 (c) | 4,136 | 4,384 | |
Summit Materials LLC/Summit Materials Finance Corp.: | |||
5.125% 6/1/25 (c) | 5,095 | 5,159 | |
5.25% 1/15/29 (c) | 10,525 | 10,841 | |
U.S. Concrete, Inc.: | |||
5.125% 3/1/29 (c) | 8,350 | 8,496 | |
6.375% 6/1/24 | 1,842 | 1,888 | |
41,211 | |||
Cable/Satellite TV - 6.1% | |||
Block Communications, Inc. 4.875% 3/1/28 (c) | 7,830 | 8,026 | |
CCO Holdings LLC/CCO Holdings Capital Corp.: | |||
4.25% 2/1/31 (c) | 16,515 | 16,887 | |
4.5% 8/15/30 (c) | 21,660 | 22,499 | |
4.5% 5/1/32 (c) | 11,120 | 11,481 | |
4.75% 3/1/30 (c) | 63,365 | 66,650 | |
5% 2/1/28 (c) | 91,490 | 96,339 | |
5.125% 5/1/27 (c) | 69,885 | 73,379 | |
5.375% 6/1/29 (c) | 18,080 | 19,572 | |
5.5% 5/1/26 (c) | 17,605 | 18,309 | |
5.75% 2/15/26 (c) | 20,340 | 21,086 | |
5.875% 5/1/27 (c) | 17,965 | 18,744 | |
CSC Holdings LLC: | |||
3.375% 2/15/31 (c) | 14,140 | 13,599 | |
4.625% 12/1/30 (c) | 23,570 | 23,564 | |
5.375% 2/1/28 (c) | 23,655 | 25,133 | |
5.5% 5/15/26 (c) | 15,968 | 16,615 | |
5.75% 1/15/30 (c) | 102,845 | 109,946 | |
6.5% 2/1/29 (c) | 24,795 | 27,511 | |
7.5% 4/1/28 (c) | 14,375 | 15,739 | |
Radiate Holdco LLC/Radiate Financial Service Ltd.: | |||
4.5% 9/15/26 (c) | 8,350 | 8,392 | |
6.5% 9/15/28 (c) | 22,260 | 22,928 | |
Virgin Media Finance PLC 5% 7/15/30 (c) | 5,510 | 5,482 | |
Ziggo Bond Co. BV: | |||
5.125% 2/28/30 (c) | 6,000 | 6,165 | |
6% 1/15/27 (c) | 11,435 | 11,864 | |
Ziggo BV: | |||
4.875% 1/15/30 (c) | 7,990 | 8,285 | |
5.5% 1/15/27 (c) | 20,588 | 21,360 | |
689,555 | |||
Capital Goods - 0.1% | |||
Stevens Holding Co., Inc. 6.125% 10/1/26 (c) | 3,245 | 3,468 | |
Vertical U.S. Newco, Inc. 5.25% 7/15/27 (c) | 2,195 | 2,259 | |
5,727 | |||
Chemicals - 3.2% | |||
CF Industries Holdings, Inc.: | |||
4.95% 6/1/43 | 59,882 | 71,781 | |
5.15% 3/15/34 | 26,868 | 31,469 | |
5.375% 3/15/44 | 53,336 | 65,470 | |
Compass Minerals International, Inc. 6.75% 12/1/27 (c) | 24,600 | 26,684 | |
Consolidated Energy Finance SA: | |||
3 month U.S. LIBOR + 3.750% 4.0004% 6/15/22 (c)(d)(f) | 3,025 | 2,891 | |
6.5% 5/15/26 (c) | 53,531 | 49,516 | |
6.875% 6/15/25 (c) | 10,765 | 10,011 | |
Ingevity Corp. 3.875% 11/1/28 (c) | 11,105 | 11,274 | |
LSB Industries, Inc. 9.625% 5/1/23 (c) | 6,090 | 5,954 | |
Neon Holdings, Inc. 10.125% 4/1/26 (c) | 12,060 | 12,753 | |
Nouryon Holding BV 8% 10/1/26 (c) | 8,580 | 9,030 | |
OCI NV 5.25% 11/1/24 (c) | 16,670 | 17,045 | |
The Chemours Co. LLC 5.375% 5/15/27 | 32,330 | 31,724 | |
Tronox, Inc. 6.5% 5/1/25 (c) | 8,760 | 9,242 | |
Valvoline, Inc. 4.25% 2/15/30 (c) | 8,315 | 8,481 | |
363,325 | |||
Consumer Products - 0.0% | |||
ANGI Homeservices, Inc. 3.875% 8/15/28 (c) | 5,530 | 5,468 | |
Containers - 0.7% | |||
ARD Finance SA 6.5% 6/30/27 pay-in-kind (c)(d) | 11,200 | 11,382 | |
Crown Cork & Seal, Inc.: | |||
7.375% 12/15/26 | 4,845 | 5,805 | |
7.5% 12/15/96 | 12,871 | 14,005 | |
Graham Packaging Co., Inc. 7.125% 8/15/28 (c) | 6,000 | 6,270 | |
Intelligent Packaging Ltd. Finco, Inc. 6% 9/15/28 (c) | 4,230 | 4,304 | |
Labl Escrow Issuer LLC 6.75% 7/15/26 (c) | 18,015 | 18,886 | |
Trivium Packaging Finance BV: | |||
5.5% 8/15/26 (c) | 6,930 | 7,259 | |
8.5% 8/15/27 (c) | 12,005 | 12,848 | |
80,759 | |||
Diversified Financial Services - 1.7% | |||
Cargo Aircraft Management, Inc. 4.75% 2/1/28 (c) | 6,915 | 7,027 | |
Icahn Enterprises LP/Icahn Enterprises Finance Corp.: | |||
5.25% 5/15/27 | 29,665 | 30,698 | |
6.25% 5/15/26 | 24,085 | 24,988 | |
6.375% 12/15/25 | 28,275 | 28,982 | |
6.75% 2/1/24 | 10,075 | 10,280 | |
MSCI, Inc. 4% 11/15/29 (c) | 6,385 | 6,664 | |
Shift4 Payments LLC / Shift4 Payments Finance Sub, Inc. 4.625% 11/1/26 (c) | 3,750 | 3,802 | |
Springleaf Finance Corp.: | |||
5.375% 11/15/29 | 9,400 | 9,659 | |
6.625% 1/15/28 | 7,305 | 7,989 | |
6.875% 3/15/25 | 19,480 | 21,428 | |
7.125% 3/15/26 | 38,380 | 42,558 | |
194,075 | |||
Diversified Media - 0.5% | |||
Allen Media LLC 10.5% 2/15/28 (c) | 11,405 | 11,063 | |
Terrier Media Buyer, Inc. 8.875% 12/15/27 (c) | 40,645 | 41,549 | |
52,612 | |||
Energy - 8.0% | |||
Antero Midstream Partners LP/Antero Midstream Finance Corp. 5.75% 1/15/28 (c) | 17,645 | 15,704 | |
Antero Resources Corp. 5.625% 6/1/23 (Reg. S) | 2,240 | 1,882 | |
Callon Petroleum Co. 6.125% 10/1/24 | 4,090 | 1,472 | |
Carrizo Oil & Gas, Inc. 6.25% 4/15/23 | 7,400 | 2,886 | |
Cheniere Energy, Inc. 4.625% 10/15/28 (c) | 22,300 | 23,025 | |
Chesapeake Energy Corp.: | |||
7% 10/1/24 (e) | 6,915 | 346 | |
8% 1/15/25 (e) | 3,385 | 169 | |
8% 6/15/27 (e) | 2,132 | 107 | |
11.5% 1/1/25 (c)(e) | 24,640 | 3,634 | |
Citgo Holding, Inc. 9.25% 8/1/24 (c) | 27,185 | 22,835 | |
Citgo Petroleum Corp. 7% 6/15/25 (c) | 22,045 | 20,447 | |
CNX Midstream Partners LP 6.5% 3/15/26 (c) | 6,675 | 6,782 | |
Comstock Resources, Inc.: | |||
7.5% 5/15/25 (c) | 10,865 | 10,786 | |
9.75% 8/15/26 | 7,275 | 7,666 | |
9.75% 8/15/26 | 61,450 | 64,738 | |
Continental Resources, Inc.: | |||
3.8% 6/1/24 | 19,380 | 18,048 | |
4.375% 1/15/28 | 4,930 | 4,432 | |
4.5% 4/15/23 | 2,660 | 2,547 | |
4.9% 6/1/44 | 12,240 | 10,159 | |
Crestwood Midstream Partners LP/Crestwood Midstream Finance Corp.: | |||
5.625% 5/1/27 (c) | 18,015 | 15,786 | |
5.75% 4/1/25 | 4,790 | 4,317 | |
6.25% 4/1/23 | 1,600 | 1,551 | |
CVR Energy, Inc.: | |||
5.25% 2/15/25 (c) | 16,990 | 12,381 | |
5.75% 2/15/28 (c) | 22,655 | 15,462 | |
DCP Midstream LLC 5.85% 5/21/43 (c)(d) | 18,335 | 13,630 | |
Diamond Offshore Drilling, Inc.: | |||
4.875% 11/1/43 (e) | 550 | 36 | |
5.7% 10/15/39 (e) | 2,813 | 190 | |
Endeavor Energy Resources LP/EER Finance, Inc.: | |||
5.5% 1/30/26 (c) | 9,698 | 9,746 | |
5.75% 1/30/28 (c) | 16,811 | 17,441 | |
6.625% 7/15/25 (c) | 5,510 | 5,717 | |
Energy Transfer Equity LP 5.5% 6/1/27 | 16,735 | 16,139 | |
EQT Corp. 3.9% 10/1/27 | 27,454 | 26,365 | |
Exterran Energy Solutions LP 8.125% 5/1/25 | 11,280 | 9,475 | |
Extraction Oil & Gas, Inc. 7.375% 5/15/24 (c)(e) | 7,165 | 1,739 | |
Hess Midstream Partners LP: | |||
5.125% 6/15/28 (c) | 11,235 | 11,179 | |
5.625% 2/15/26 (c) | 15,535 | 15,535 | |
Hilcorp Energy I LP/Hilcorp Finance Co.: | |||
5% 12/1/24 (c) | 9,920 | 9,176 | |
5.75% 10/1/25 (c) | 11,285 | 10,432 | |
6.25% 11/1/28 (c) | 12,280 | 11,249 | |
Holly Energy Partners LP/Holly Energy Finance Corp. 5% 2/1/28 (c) | 7,615 | 7,120 | |
Indigo Natural Resources LLC 6.875% 2/15/26 (c) | 22,135 | 21,748 | |
Jonah Energy LLC 7.25% 10/15/25 (c) | 18,030 | 586 | |
Laredo Petroleum, Inc. 10.125% 1/15/28 | 4,535 | 1,961 | |
MEG Energy Corp. 7.125% 2/1/27 (c) | 11,335 | 10,198 | |
Nabors Industries Ltd.: | |||
7.25% 1/15/26 (c) | 11,260 | 4,504 | |
7.5% 1/15/28 (c) | 9,715 | 3,692 | |
New Fortress Energy LLC 6.75% 9/15/25 (c) | 44,366 | 45,749 | |
NGL Energy Partners LP/NGL Energy Finance Corp. 6.125% 3/1/25 | 11,961 | 5,981 | |
Nine Energy Service, Inc. 8.75% 11/1/23 (c) | 6,245 | 1,842 | |
NuStar Logistics LP 6% 6/1/26 | 12,025 | 11,875 | |
Occidental Petroleum Corp.: | |||
2.9% 8/15/24 | 13,380 | 11,139 | |
3.2% 8/15/26 | 840 | 649 | |
3.4% 4/15/26 | 1,085 | 849 | |
4.4% 4/15/46 | 9,300 | 6,252 | |
4.4% 8/15/49 | 23,525 | 15,762 | |
4.625% 6/15/45 | 7,660 | 5,171 | |
5.875% 9/1/25 | 11,055 | 9,728 | |
6.2% 3/15/40 | 5,785 | 4,696 | |
6.375% 9/1/28 | 11,055 | 9,673 | |
6.45% 9/15/36 | 19,110 | 15,479 | |
6.6% 3/15/46 | 15,305 | 12,671 | |
6.625% 9/1/30 | 22,115 | 19,379 | |
7.2% 3/15/29 | 3,964 | 3,488 | |
7.5% 5/1/31 | 1,100 | 1,004 | |
PBF Holding Co. LLC/PBF Finance Corp.: | |||
6% 2/15/28 (c) | 27,530 | 10,633 | |
7.25% 6/15/25 | 22,875 | 9,565 | |
9.25% 5/15/25 (c) | 16,370 | 14,528 | |
PBF Logistics LP/PBF Logistics Finance, Inc. 6.875% 5/15/23 | 8,455 | 6,637 | |
PDC Energy, Inc.: | |||
6.125% 9/15/24 | 3,555 | 3,457 | |
6.25% 12/1/25 | 7,435 | 7,100 | |
Sabine Pass Liquefaction LLC 4.5% 5/15/30 (c) | 135 | 151 | |
Sanchez Energy Corp. 7.25% 2/15/23 (b)(c)(e) | 21,977 | 0 | |
SESI LLC 7.75% 9/15/24 | 7,245 | 1,666 | |
SM Energy Co.: | |||
5.625% 6/1/25 | 6,330 | 2,486 | |
6.625% 1/15/27 | 21,320 | 7,995 | |
6.75% 9/15/26 | 4,550 | 1,752 | |
Southern Natural Gas Co.: | |||
7.35% 2/15/31 | 23,497 | 30,678 | |
8% 3/1/32 | 12,475 | 17,441 | |
Southern Star Central Corp. 5.125% 7/15/22 (c) | 3,696 | 3,704 | |
Southwestern Energy Co.: | |||
6.45% 1/23/25 (d) | 1,805 | 1,808 | |
7.5% 4/1/26 | 20,490 | 20,855 | |
7.75% 10/1/27 | 12,945 | 13,366 | |
Summit Midstream Holdings LLC 5.75% 4/15/25 | 5,390 | 3,490 | |
Sunoco LP/Sunoco Finance Corp.: | |||
4.875% 1/15/23 | 9,145 | 9,214 | |
5.5% 2/15/26 | 11,640 | 11,662 | |
Tallgrass Energy Partners LP / Tallgrass Energy Finance Corp. 7.5% 10/1/25 (c) | 8,350 | 8,434 | |
Targa Resources Partners LP/Targa Resources Partners Finance Corp. 4.875% 2/1/31 (c) | 10,360 | 10,110 | |
Teine Energy Ltd. 6.875% 9/30/22 (c) | 11,950 | 11,890 | |
Tennessee Gas Pipeline Co. 7.625% 4/1/37 | 5,445 | 7,180 | |
Ultra Resources, Inc. 11% 7/12/24 pay-in-kind (b)(e) | 10,734 | 537 | |
Unit Corp. 6.625% 5/15/21 (b)(e) | 2,202 | 264 | |
W&T Offshore, Inc. 9.75% 11/1/23 (c) | 41,795 | 27,167 | |
900,177 | |||
Entertainment/Film - 0.0% | |||
Lions Gate Entertainment Corp. 5.875% 11/1/24 (c) | 3,865 | 3,633 | |
Environmental - 0.3% | |||
ADS Waste Holdings, Inc. 5.625% 11/15/24 (c) | 10,140 | 10,375 | |
Covanta Holding Corp.: | |||
5% 9/1/30 | 11,060 | 11,309 | |
5.875% 7/1/25 | 3,205 | 3,314 | |
6% 1/1/27 | 12,335 | 12,846 | |
37,844 | |||
Food & Drug Retail - 0.7% | |||
Albertsons Companies LLC/Safeway, Inc./New Albertson's, Inc./Albertson's LLC: | |||
4.625% 1/15/27 (c) | 16,495 | 17,114 | |
4.875% 2/15/30 (c) | 33,425 | 35,501 | |
Murphy Oil U.S.A., Inc.: | |||
4.75% 9/15/29 | 6,860 | 7,186 | |
5.625% 5/1/27 | 6,030 | 6,332 | |
SEG Holding LLC/SEG Finance Corp. 5.625% 10/15/28 (c) | 11,130 | 11,339 | |
77,472 | |||
Food/Beverage/Tobacco - 2.0% | |||
Chobani LLC/Finance Corp., Inc. 4.625% 11/15/28 (c) | 6,285 | 6,306 | |
Del Monte Foods, Inc. 11.875% 5/15/25 (c) | 6,310 | 6,728 | |
JBS Investments II GmbH: | |||
5.75% 1/15/28 (c) | 10,705 | 11,247 | |
7% 1/15/26 (c) | 11,630 | 12,425 | |
JBS U.S.A. LLC/JBS U.S.A. Finance, Inc.: | |||
5.75% 6/15/25 (c) | 24,630 | 25,320 | |
6.75% 2/15/28 (c) | 18,350 | 20,182 | |
JBS U.S.A. Lux SA / JBS Food Co.: | |||
5.5% 1/15/30 (c) | 20,180 | 21,946 | |
6.5% 4/15/29 (c) | 29,320 | 32,912 | |
KeHE Distributors LLC / KeHE Finance Corp. 8.625% 10/15/26 (c) | 9,735 | 10,465 | |
Lamb Weston Holdings, Inc.: | |||
4.625% 11/1/24 (c) | 7,660 | 7,909 | |
4.875% 11/1/26 (c) | 7,740 | 8,039 | |
Performance Food Group, Inc. 5.5% 10/15/27 (c) | 8,855 | 9,076 | |
Pilgrim's Pride Corp. 5.75% 3/15/25 (c) | 17,930 | 18,356 | |
Post Holdings, Inc.: | |||
4.625% 4/15/30 (c) | 11,405 | 11,704 | |
5.5% 12/15/29 (c) | 14,975 | 16,154 | |
TreeHouse Foods, Inc. 4% 9/1/28 | 3,695 | 3,700 | |
United Natural Foods, Inc. 6.75% 10/15/28 (c) | 7,750 | 7,847 | |
230,316 | |||
Gaming - 2.3% | |||
Caesars Entertainment, Inc.: | |||
6.25% 7/1/25 (c) | 41,240 | 42,343 | |
8.125% 7/1/27 (c) | 54,990 | 57,393 | |
Caesars Resort Collection LLC 5.75% 7/1/25 (c) | 13,750 | 14,102 | |
MCE Finance Ltd.: | |||
4.875% 6/6/25 (c) | 30,275 | 30,424 | |
5.25% 4/26/26 (c) | 12,015 | 12,074 | |
5.375% 12/4/29 (c) | 8,160 | 7,865 | |
5.75% 7/21/28 (c) | 5,530 | 5,516 | |
MGM Mirage, Inc. 4.75% 10/15/28 | 11,125 | 10,875 | |
Peninsula Pacific Entertainment LLC 8.5% 11/15/27 (c) | 11,125 | 11,571 | |
Scientific Games Corp.: | |||
7% 5/15/28 (c) | 8,405 | 8,349 | |
7.25% 11/15/29 (c) | 8,405 | 8,337 | |
VICI Properties, Inc.: | |||
4.25% 12/1/26 (c) | 21,450 | 21,811 | |
4.625% 12/1/29 (c) | 12,240 | 12,717 | |
Wynn Macau Ltd. 5.125% 12/15/29 (c) | 16,800 | 15,549 | |
258,926 | |||
Healthcare - 4.0% | |||
Akumin, Inc. 7% 11/1/25 (c) | 5,550 | 5,481 | |
AMN Healthcare 4.625% 10/1/27 (c) | 2,765 | 2,827 | |
Catalent Pharma Solutions: | |||
4.875% 1/15/26 (c) | 4,000 | 4,080 | |
5% 7/15/27 (c) | 3,765 | 3,925 | |
Centene Corp.: | |||
4.25% 12/15/27 | 11,560 | 12,167 | |
4.75% 1/15/25 | 7,440 | 7,645 | |
5.375% 6/1/26 (c) | 30,420 | 32,008 | |
5.375% 8/15/26 (c) | 7,920 | 8,375 | |
Charles River Laboratories International, Inc. 4.25% 5/1/28 (c) | 3,400 | 3,553 | |
Community Health Systems, Inc.: | |||
6.625% 2/15/25 (c) | 13,150 | 12,824 | |
8% 3/15/26 (c) | 61,410 | 61,656 | |
8.125% 6/30/24 (c) | 41,763 | 32,105 | |
9.875% 6/30/23 (c) | 36,023 | 30,079 | |
Encompass Health Corp.: | |||
5.125% 3/15/23 | 6,440 | 6,488 | |
5.75% 11/1/24 | 12,913 | 12,913 | |
Horizon Pharma U.S.A., Inc. 5.5% 8/1/27 (c) | 12,050 | 12,823 | |
IMS Health, Inc. 5% 5/15/27 (c) | 12,070 | 12,643 | |
Jaguar Holding Co. II/Pharmaceutical Product Development LLC 5% 6/15/28 (c) | 11,590 | 12,080 | |
Molina Healthcare, Inc. 4.375% 6/15/28 (c) | 7,525 | 7,713 | |
Providence Service Corp. 5.875% 11/15/25 (c)(g) | 8,105 | 8,247 | |
Radiology Partners, Inc. 9.25% 2/1/28 (c) | 20,865 | 22,242 | |
Tenet Healthcare Corp.: | |||
4.625% 7/15/24 | 6,055 | 6,157 | |
4.625% 9/1/24 (c) | 12,045 | 12,331 | |
4.875% 1/1/26 (c) | 30,115 | 30,550 | |
5.125% 5/1/25 | 6,055 | 5,993 | |
5.125% 11/1/27 (c) | 18,070 | 18,607 | |
6.125% 10/1/28 (c) | 16,635 | 16,157 | |
6.25% 2/1/27 (c) | 17,930 | 18,617 | |
U.S. Renal Care, Inc. 10.625% 7/15/27 (c) | 21,245 | 22,626 | |
Vizient, Inc. 6.25% 5/15/27 (c) | 2,760 | 2,919 | |
445,831 | |||
Homebuilders/Real Estate - 1.6% | |||
Brookfield Residential Properties, Inc./Brookfield Residential U.S. Corp. 4.875% 2/15/30 (c) | 7,775 | 7,391 | |
DTZ U.S. Borrower LLC 6.75% 5/15/28 (c) | 10,555 | 11,228 | |
LGI Homes, Inc. 6.875% 7/15/26 (c) | 12,190 | 12,739 | |
MPT Operating Partnership LP/MPT Finance Corp.: | |||
4.625% 8/1/29 | 18,080 | 18,930 | |
5% 10/15/27 | 25,968 | 27,174 | |
Odebrecht Finance Ltd.: | |||
4.375% 4/25/25 (c)(e) | 12,020 | 421 | |
5.25% 6/27/29 (c)(e) | 10,987 | 385 | |
7.125% 6/26/42 (c)(e) | 5,370 | 188 | |
Realogy Group LLC/Realogy Co-Issuer Corp. 7.625% 6/15/25 (c) | 33,090 | 34,951 | |
Shea Homes Ltd. Partnership/Corp. 4.75% 4/1/29 (c) | 8,020 | 8,140 | |
Taylor Morrison Communities, Inc./Monarch Communities, Inc.: | |||
5.125% 8/1/30 (c) | 5,150 | 5,591 | |
5.625% 3/1/24 (c) | 1,312 | 1,387 | |
5.875% 6/15/27 (c) | 9,260 | 10,232 | |
TRI Pointe Homes, Inc.: | |||
5.7% 6/15/28 | 14,380 | 15,962 | |
5.875% 6/15/24 | 16,130 | 17,451 | |
Weekley Homes LLC/Weekley Finance Corp. 4.875% 9/15/28 (c) | 5,045 | 5,110 | |
177,280 | |||
Hotels - 0.5% | |||
Choice Hotels International, Inc. 5.75% 7/1/22 | 3,035 | 3,222 | |
Hilton Domestic Operating Co., Inc.: | |||
4.875% 1/15/30 | 6,900 | 7,098 | |
5.125% 5/1/26 | 18,255 | 18,483 | |
Hilton Worldwide Finance LLC/Hilton Worldwide Finance Corp.: | |||
4.625% 4/1/25 | 17,975 | 18,141 | |
4.875% 4/1/27 | 8,435 | 8,533 | |
55,477 | |||
Insurance - 0.9% | |||
Acrisure LLC / Acrisure Finance, Inc.: | |||
7% 11/15/25 (c) | 34,880 | 34,793 | |
8.125% 2/15/24 (c) | 12,845 | 13,433 | |
Alliant Holdings Intermediate LLC: | |||
4.25% 10/15/27 (c) | 11,125 | 11,042 | |
6.75% 10/15/27 (c) | 16,680 | 17,514 | |
AssuredPartners, Inc. 7% 8/15/25 (c) | 4,865 | 4,962 | |
HUB International Ltd. 7% 5/1/26 (c) | 11,770 | 12,064 | |
MGIC Investment Corp. 5.25% 8/15/28 | 7,710 | 7,922 | |
101,730 | |||
Leisure - 1.5% | |||
Carnival Corp.: | |||
9.875% 8/1/27 (c) | 16,600 | 17,254 | |
10.5% 2/1/26 (c) | 11,990 | 12,979 | |
11.5% 4/1/23 (c) | 32,585 | 35,789 | |
Merlin Entertainments PLC 5.75% 6/15/26 (c) | 7,725 | 7,107 | |
NCL Corp. Ltd. 12.25% 5/15/24 (c) | 14,720 | 16,339 | |
Royal Caribbean Cruises Ltd.: | |||
10.875% 6/1/23 (c) | 13,720 | 14,962 | |
11.5% 6/1/25 (c) | 19,950 | 22,743 | |
SeaWorld Parks & Entertainment, Inc. 9.5% 8/1/25 (c) | 8,860 | 9,303 | |
Vail Resorts, Inc. 6.25% 5/15/25 (c) | 6,250 | 6,563 | |
Viking Cruises Ltd.: | |||
5.875% 9/15/27 (c) | 11,595 | 9,044 | |
13% 5/15/25 (c) | 9,250 | 10,476 | |
Voc Escrow Ltd. 5% 2/15/28 (c) | 10,755 | 9,307 | |
171,866 | |||
Metals/Mining - 1.7% | |||
Alcoa Nederland Holding BV: | |||
6.125% 5/15/28 (c) | 3,565 | 3,827 | |
6.75% 9/30/24 (c) | 7,705 | 7,946 | |
7% 9/30/26 (c) | 6,385 | 6,720 | |
Arconic Rolled Products Corp.: | |||
6% 5/15/25 (c) | 6,630 | 7,020 | |
6.125% 2/15/28 (c) | 7,830 | 8,250 | |
Cleveland-Cliffs, Inc.: | |||
4.875% 1/15/24 (c) | 12,165 | 12,135 | |
5.75% 3/1/25 | 3,141 | 3,035 | |
5.875% 6/1/27 | 18,030 | 17,530 | |
First Quantum Minerals Ltd.: | |||
6.5% 3/1/24 (c) | 10,955 | 10,873 | |
6.875% 3/1/26 (c) | 23,905 | 23,763 | |
7.25% 4/1/23 (c) | 3,465 | 3,483 | |
7.5% 4/1/25 (c) | 20,585 | 20,590 | |
FMG Resources (August 2006) Pty Ltd.: | |||
4.5% 9/15/27 (c) | 9,015 | 9,654 | |
4.75% 5/15/22 (c) | 7,950 | 8,135 | |
5.125% 3/15/23 (c) | 12,860 | 13,423 | |
5.125% 5/15/24 (c) | 9,780 | 10,463 | |
Mineral Resources Ltd. 8.125% 5/1/27 (c) | 18,015 | 19,636 | |
Murray Energy Corp.: | |||
11.25% 4/15/21 (c)(e) | 8,915 | 0 | |
12% 4/15/24 pay-in-kind (b)(c)(d)(e) | 10,343 | 1 | |
186,484 | |||
Paper - 0.2% | |||
Cascades, Inc.: | |||
5.125% 1/15/26 (c) | 5,600 | 5,852 | |
5.375% 1/15/28 (c) | 5,600 | 5,838 | |
Enviva Partners LP / Enviva Partners Finance Corp. 6.5% 1/15/26 (c) | 11,230 | 11,848 | |
23,538 | |||
Publishing/Printing - 0.1% | |||
Clear Channel International BV 6.625% 8/1/25 (c) | 15,860 | 16,098 | |
Restaurants - 0.7% | |||
1011778 BC Unlimited Liability Co./New Red Finance, Inc.: | |||
4% 10/15/30 (c)(g) | 39,005 | 38,810 | |
4.375% 1/15/28 (c) | 10,600 | 10,733 | |
5% 10/15/25 (c) | 29,593 | 30,336 | |
79,879 | |||
Services - 1.7% | |||
AECOM 5.125% 3/15/27 | 11,885 | 12,999 | |
Ascend Learning LLC: | |||
6.875% 8/1/25 (c) | 11,865 | 12,237 | |
6.875% 8/1/25 (c) | 4,115 | 4,182 | |
Booz Allen Hamilton, Inc. 3.875% 9/1/28 (c) | 10,240 | 10,394 | |
Fair Isaac Corp. 4% 6/15/28 (c) | 2,910 | 3,008 | |
Gartner, Inc. 3.75% 10/1/30 (c) | 11,495 | 11,755 | |
GEMS MENASA Cayman Ltd. 7.125% 7/31/26 (c) | 8,765 | 8,680 | |
Hertz Corp.: | |||
5.5% 10/15/24 (c)(e) | 9,695 | 3,854 | |
6% 1/15/28 (c)(e) | 5,540 | 2,230 | |
6.25% 10/15/22 (e) | 7,535 | 2,976 | |
7.125% 8/1/26 (c)(e) | 10,285 | 4,063 | |
IAA Spinco, Inc. 5.5% 6/15/27 (c) | 4,680 | 4,920 | |
Iron Mountain, Inc.: | |||
4.5% 2/15/31 (c) | 22,025 | 21,927 | |
4.875% 9/15/29 (c) | 24,110 | 24,231 | |
KAR Auction Services, Inc. 5.125% 6/1/25 (c) | 10,355 | 10,433 | |
Tempo Acquisition LLC 6.75% 6/1/25 (c) | 8,815 | 8,945 | |
The Brink's Co. 4.625% 10/15/27 (c) | 12,180 | 12,428 | |
The GEO Group, Inc.: | |||
5.125% 4/1/23 | 9,625 | 7,748 | |
5.875% 10/15/24 | 14,053 | 9,733 | |
6% 4/15/26 | 9,655 | 6,273 | |
Uber Technologies, Inc. 6.25% 1/15/28 (c) | 9,175 | 9,301 | |
192,317 | |||
Steel - 0.3% | |||
Algoma Steel SCA 0% 12/31/23 (b) | 1,982 | 1,209 | |
Commercial Metals Co. 5.75% 4/15/26 | 9,135 | 9,432 | |
Infrabuild Australia Pty Ltd. 12% 10/1/24 (c) | 9,055 | 8,964 | |
United States Steel Corp. 6.25% 3/15/26 | 12,205 | 9,314 | |
28,919 | |||
Super Retail - 0.5% | |||
Asbury Automotive Group, Inc.: | |||
4.5% 3/1/28 (c) | 3,534 | 3,596 | |
4.75% 3/1/30 (c) | 3,523 | 3,637 | |
Burlington Coat Factory Warehouse Corp. 6.25% 4/15/25 (c) | 3,270 | 3,427 | |
EG Global Finance PLC 8.5% 10/30/25 (c) | 16,085 | 16,455 | |
L Brands, Inc.: | |||
6.625% 10/1/30 (c) | 5,555 | 5,833 | |
6.75% 7/1/36 | 1,115 | 1,126 | |
6.875% 11/1/35 | 5,000 | 5,075 | |
7.5% 6/15/29 | 8,335 | 8,922 | |
Penske Automotive Group, Inc. 5.5% 5/15/26 | 8,565 | 8,838 | |
56,909 | |||
Technology - 2.6% | |||
Banff Merger Sub, Inc. 9.75% 9/1/26 (c) | 9,608 | 10,099 | |
Black Knight InfoServ LLC 3.625% 9/1/28 (c) | 11,390 | 11,532 | |
Boxer Parent Co., Inc. 7.125% 10/2/25 (c) | 5,515 | 5,913 | |
Camelot Finance SA 4.5% 11/1/26 (c) | 10,590 | 11,014 | |
Go Daddy Operating Co. LLC / GD Finance Co., Inc. 5.25% 12/1/27 (c) | 9,345 | 9,789 | |
j2 Cloud Services LLC/j2 Global Communications, Inc. 6% 7/15/25 (c) | 8,065 | 8,428 | |
MTS Systems Corp. 5.75% 8/15/27 (c) | 3,140 | 3,164 | |
NCR Corp.: | |||
5% 10/1/28 (c) | 5,530 | 5,475 | |
5.25% 10/1/30 (c) | 5,530 | 5,475 | |
5.75% 9/1/27 (c) | 9,035 | 9,312 | |
6.125% 9/1/29 (c) | 9,035 | 9,464 | |
8.125% 4/15/25 (c) | 4,675 | 5,143 | |
Northwest Fiber LLC/Northwest Fiber Finance Sub, Inc. 10.75% 6/1/28 (c) | 5,930 | 6,701 | |
Nortonlifelock, Inc. 5% 4/15/25 (c) | 10,050 | 10,236 | |
ON Semiconductor Corp. 3.875% 9/1/28 (c) | 11,065 | 11,259 | |
Open Text Corp.: | |||
3.875% 2/15/28 (c) | 5,690 | 5,780 | |
5.875% 6/1/26 (c) | 8,535 | 8,876 | |
Open Text Holdings, Inc. 4.125% 2/15/30 (c) | 5,690 | 5,903 | |
Parametric Technology Corp.: | |||
3.625% 2/15/25 (c) | 6,650 | 6,771 | |
4% 2/15/28 (c) | 6,575 | 6,797 | |
RP Crown Parent, LLC 7.375% 10/15/24 (c) | 4,060 | 4,101 | |
Uber Technologies, Inc.: | |||
7.5% 9/15/27 (c) | 35,255 | 36,850 | |
8% 11/1/26 (c) | 51,060 | 53,804 | |
Unisys Corp. 6.875% 11/1/27 (c) | 6,095 | 6,308 | |
Veritas U.S., Inc./Veritas Bermuda Ltd.: | |||
7.5% 2/1/23 (c) | 16,225 | 16,144 | |
7.5% 9/1/25 (c) | 13,820 | 14,015 | |
288,353 | |||
Telecommunications - 5.8% | |||
Altice Financing SA 5% 1/15/28 (c) | 11,280 | 10,942 | |
C&W Senior Financing Designated Activity Co. 6.875% 9/15/27 (c) | 22,740 | 23,945 | |
Cablevision Lightpath LLC: | |||
3.875% 9/15/27 (c) | 5,500 | 5,459 | |
5.625% 9/15/28 (c) | 4,350 | 4,394 | |
Frontier Communications Corp.: | |||
5.875% 10/15/27 (c) | 10,375 | 10,570 | |
8.5% 4/1/26 (c) | 42,840 | 43,108 | |
GTT Communications, Inc. 7.875% 12/31/24 (c) | 1,110 | 555 | |
Intelsat Jackson Holdings SA: | |||
5.5% 8/1/23 (e) | 31,470 | 18,449 | |
8% 2/15/24 (c) | 20,755 | 21,066 | |
8.5% 10/15/24 (c)(e) | 21,405 | 13,220 | |
9.75% 7/15/25 (c)(e) | 36,315 | 22,697 | |
LCPR Senior Secured Financing DAC 6.75% 10/15/27 (c) | 11,285 | 11,990 | |
Millicom International Cellular SA 4.5% 4/27/31 (c) | 1,725 | 1,751 | |
NGL Energy Partners LP/NGL Energy Finance Corp. 7.5% 4/15/26 | 15,705 | 8,072 | |
Sable International Finance Ltd. 5.75% 9/7/27 (c) | 20,710 | 21,953 | |
SBA Communications Corp. 3.875% 2/15/27 (c) | 17,015 | 17,291 | |
SFR Group SA: | |||
5.5% 1/15/28 (c) | 22,110 | 22,400 | |
7.375% 5/1/26 (c) | 100,065 | 104,438 | |
8.125% 2/1/27 (c) | 7,635 | 8,303 | |
Sprint Capital Corp.: | |||
6.875% 11/15/28 | 76,454 | 96,619 | |
8.75% 3/15/32 | 66,716 | 99,824 | |
Sprint Corp. 7.625% 3/1/26 | 10,895 | 13,259 | |
U.S. West Communications 7.25% 9/15/25 | 1,480 | 1,702 | |
Uniti Group, Inc. 7.875% 2/15/25 (c) | 17,650 | 18,709 | |
Windstream Escrow LLC 7.75% 8/15/28 (c) | 31,630 | 30,562 | |
Zayo Group Holdings, Inc. 4% 3/1/27 (c) | 17,180 | 16,862 | |
648,140 | |||
Utilities - 3.6% | |||
Clearway Energy Operating LLC 4.75% 3/15/28 (c) | 6,920 | 7,275 | |
NextEra Energy Partners LP: | |||
4.25% 7/15/24 (c) | 6,610 | 6,907 | |
4.25% 9/15/24 (c) | 4,710 | 4,934 | |
NRG Energy, Inc.: | |||
5.75% 1/15/28 | 9,410 | 10,122 | |
6.625% 1/15/27 | 26,747 | 28,151 | |
Pacific Gas & Electric Co.: | |||
3.45% 7/1/25 | 2,868 | 2,986 | |
3.75% 7/1/28 | 2,868 | 2,947 | |
3.75% 8/15/42 | 10,400 | 9,714 | |
3.95% 12/1/47 | 53,930 | 50,802 | |
4% 12/1/46 | 24,380 | 23,063 | |
4.25% 3/15/46 | 2,400 | 2,332 | |
4.3% 3/15/45 | 5,995 | 5,766 | |
4.55% 7/1/30 | 60,820 | 65,265 | |
4.95% 7/1/50 | 60,820 | 63,958 | |
PG&E Corp.: | |||
5% 7/1/28 | 22,000 | 22,056 | |
5.25% 7/1/30 | 8,330 | 8,330 | |
Pike Corp. 5.5% 9/1/28 (c) | 8,695 | 8,892 | |
TerraForm Power Operating LLC: | |||
4.25% 1/31/23 (c) | 6,270 | 6,380 | |
4.75% 1/15/30 (c) | 11,110 | 11,921 | |
5% 1/31/28 (c) | 6,295 | 6,911 | |
The AES Corp. 4.5% 3/15/23 | 4,675 | 4,698 | |
Vistra Operations Co. LLC: | |||
5% 7/31/27 (c) | 22,585 | 23,601 | |
5.5% 9/1/26 (c) | 3,485 | 3,607 | |
5.625% 2/15/27 (c) | 28,195 | 29,393 | |
410,011 | |||
TOTAL NONCONVERTIBLE BONDS | 6,889,134 | ||
TOTAL CORPORATE BONDS | |||
(Cost $6,838,201) | 6,899,633 | ||
Shares | Value (000s) | ||
Common Stocks - 21.1% | |||
Air Transportation - 0.2% | |||
Air Canada (h) | 1,716,900 | 18,982 | |
Automotive & Auto Parts - 0.2% | |||
Allison Transmission Holdings, Inc. | 285,200 | 10,310 | |
Exide Technologies (b)(h) | 9,824 | 10 | |
Exide Technologies (b)(h) | 580,031 | 0 | |
Motors Liquidation Co. GUC Trust (h) | 11,464 | 16 | |
UC Holdings, Inc. (b)(h) | 677,217 | 8,330 | |
TOTAL AUTOMOTIVE & AUTO PARTS | 18,666 | ||
Broadcasting - 0.3% | |||
iHeartMedia, Inc. warrants 5/1/39 (h) | 104 | 1 | |
Nexstar Broadcasting Group, Inc. Class A | 376,429 | 31,018 | |
TOTAL BROADCASTING | 31,019 | ||
Building Materials - 0.3% | |||
Carrier Global Corp. | 1,120,800 | 37,424 | |
Cable/Satellite TV - 0.3% | |||
Altice U.S.A., Inc. Class A (h) | 1,310,300 | 35,313 | |
Capital Goods - 1.2% | |||
Fortive Corp. | 396,900 | 24,449 | |
Thermo Fisher Scientific, Inc. | 112,300 | 53,131 | |
Zebra Technologies Corp. Class A (h) | 197,300 | 55,962 | |
TOTAL CAPITAL GOODS | 133,542 | ||
Chemicals - 0.4% | |||
CF Industries Holdings, Inc. | 695,500 | 19,203 | |
The Chemours Co. LLC | 1,307,240 | 26,328 | |
TOTAL CHEMICALS | 45,531 | ||
Consumer Products - 0.5% | |||
Reddy Ice Holdings, Inc. (b)(h) | 496,439 | 0 | |
Reddy Ice Holdings, Inc. (b)(h) | 199,717 | 11 | |
Tempur Sealy International, Inc. (h) | 586,800 | 52,225 | |
TOTAL CONSUMER PRODUCTS | 52,236 | ||
Containers - 0.4% | |||
Berry Global Group, Inc. (h) | 390,700 | 18,218 | |
WestRock Co. | 754,200 | 28,320 | |
TOTAL CONTAINERS | 46,538 | ||
Diversified Financial Services - 0.7% | |||
ACNR Holdings, Inc. (b) | 37,965 | 262 | |
MasterCard, Inc. Class A | 141,400 | 40,814 | |
OneMain Holdings, Inc. | 921,700 | 32,158 | |
Penson Worldwide, Inc. Class A (b)(h) | 10,322,034 | 0 | |
PJT Partners, Inc. | 5,092 | 345 | |
TOTAL DIVERSIFIED FINANCIAL SERVICES | 73,579 | ||
Energy - 1.5% | |||
Array Technologies, Inc. | 237,759 | 8,761 | |
California Resources Corp. (h)(i) | 4,155,540 | 55,684 | |
California Resources Corp. (a)(i) | 1,853,099 | 22,348 | |
California Resources Corp. warrants 10/27/24 (h) | 57,076 | 0 | |
Chaparral Energy, Inc. Class A (b)(h) | 146,806 | 5 | |
Denbury, Inc. (h)(i) | 3,314,617 | 54,989 | |
Denbury, Inc. warrants 9/18/25 (h) | 439,788 | 1 | |
EP Energy Corp. (b) | 841,775 | 16,777 | |
Forbes Energy Services Ltd. (h) | 193,218 | 18 | |
Goodrich Petroleum Corp. (h) | 129,527 | 1,241 | |
Harvest Oil & Gas Corp. | 25,482 | 726 | |
Sanchez Energy Corp. (b) | 111,852 | 2,880 | |
Ultra Petroleum Corp. warrants 7/14/25 (h) | 211,400 | 0 | |
Whiting Petroleum Corp. (h) | 130,440 | 1,904 | |
TOTAL ENERGY | 165,334 | ||
Entertainment/Film - 0.1% | |||
New Cotai LLC/New Cotai Capital Corp. (a)(b) | 3,366,627 | 16,677 | |
Environmental - 0.4% | |||
Darling Ingredients, Inc. (h) | 1,038,617 | 44,661 | |
Food & Drug Retail - 0.1% | |||
Southeastern Grocers, Inc. (b)(h) | 183,263 | 13,380 | |
Food/Beverage/Tobacco - 0.4% | |||
JBS SA | 14,101,600 | 47,800 | |
Gaming - 2.2% | |||
Boyd Gaming Corp. | 1,243,300 | 39,437 | |
Caesars Entertainment, Inc. (h) | 1,967,636 | 88,189 | |
MGM Mirage, Inc. (j) | 603,800 | 12,420 | |
Penn National Gaming, Inc. (h) | 1,786,500 | 96,435 | |
Studio City International Holdings Ltd. ADR (h) | 695,700 | 10,575 | |
TOTAL GAMING | 247,056 | ||
Healthcare - 2.1% | |||
Bristol-Myers Squibb Co. | 313,200 | 18,307 | |
Charles River Laboratories International, Inc. (h) | 128,000 | 29,146 | |
Encompass Health Corp. | 34 | 2 | |
HCA Holdings, Inc. | 176,200 | 21,838 | |
Humana, Inc. | 81,200 | 32,422 | |
IQVIA Holdings, Inc. (h) | 393,500 | 60,595 | |
Regeneron Pharmaceuticals, Inc. (h) | 72,700 | 39,517 | |
Rotech Healthcare, Inc. (b)(h) | 185,710 | 1,933 | |
UnitedHealth Group, Inc. | 105,800 | 32,284 | |
TOTAL HEALTHCARE | 236,044 | ||
Homebuilders/Real Estate - 0.2% | |||
American Tower Corp. | 11,612 | 2,667 | |
Arthur J. Gallagher & Co. | 224,100 | 23,241 | |
TOTAL HOMEBUILDERS/REAL ESTATE | 25,908 | ||
Metals/Mining - 0.2% | |||
Elah Holdings, Inc. (b)(h) | 906 | 72 | |
First Quantum Minerals Ltd. | 1,764,200 | 20,273 | |
TOTAL METALS/MINING | 20,345 | ||
Services - 0.8% | |||
ASGN, Inc. (h) | 258,700 | 17,250 | |
HD Supply Holdings, Inc. (h) | 362,200 | 14,437 | |
Novus Holdings Ltd. (h) | 100,408 | 5 | |
Penhall Acquisition Co.: | |||
Class A (b)(h) | 26,163 | 1,962 | |
Class B (b)(h) | 8,721 | 654 | |
United Rentals, Inc. (h) | 112,594 | 20,074 | |
Visa, Inc. Class A | 216,640 | 39,366 | |
TOTAL SERVICES | 93,748 | ||
Steel - 0.0% | |||
Algoma Steel GP (b)(h) | 198,162 | 4 | |
Algoma Steel SCA (b)(h) | 198,162 | 28 | |
TOTAL STEEL | 32 | ||
Super Retail - 0.6% | |||
Amazon.com, Inc. (h) | 11,000 | 33,398 | |
Arena Brands Holding Corp. Class B (a)(b)(h) | 659,302 | 1,820 | |
Lowe's Companies, Inc. | 213,700 | 33,786 | |
TOTAL SUPER RETAIL | 69,004 | ||
Technology - 5.6% | |||
Adobe, Inc. (h) | 184,800 | 82,624 | |
Alphabet, Inc. Class A (h) | 41,700 | 67,392 | |
CDW Corp. | 150,300 | 18,427 | |
EPAM Systems, Inc. (h) | 184,400 | 56,970 | |
Facebook, Inc. Class A (h) | 234,000 | 61,568 | |
Global Payments, Inc. | 260,024 | 41,016 | |
GoDaddy, Inc. (h) | 281,500 | 19,913 | |
Lam Research Corp. | 153,700 | 52,578 | |
Microchip Technology, Inc. | 287,100 | 30,168 | |
Micron Technology, Inc. (h) | 328,700 | 16,547 | |
Microsoft Corp. | 352,500 | 71,371 | |
Oak Street Health, Inc. (h) | 17,400 | 828 | |
ON Semiconductor Corp. (h) | 1,146,438 | 28,764 | |
PayPal Holdings, Inc. (h) | 231,600 | 43,108 | |
Snowflake Computing, Inc. (j) | 33,000 | 8,251 | |
SS&C Technologies Holdings, Inc. | 486,982 | 28,839 | |
Vontier Corp. (h) | 158,760 | 4,563 | |
TOTAL TECHNOLOGY | 632,927 | ||
Telecommunications - 1.3% | |||
Alibaba Group Holding Ltd. sponsored ADR (h) | 109,200 | 33,272 | |
Palo Alto Networks, Inc. (h) | 118,300 | 26,167 | |
T-Mobile U.S., Inc. | 577,300 | 63,255 | |
Tencent Holdings Ltd. sponsored ADR | 332,900 | 25,414 | |
TOTAL TELECOMMUNICATIONS | 148,108 | ||
Transportation Ex Air/Rail - 0.2% | |||
Tricer Holdco SCA: | |||
Class A1 (a)(b)(h) | 598,287 | 1 | |
Class A2 (a)(b)(h) | 598,287 | 1 | |
Class A3 (a)(b)(h) | 598,287 | 1 | |
Class A4 (a)(b)(h) | 598,287 | 1 | |
Class A5 (a)(b)(h) | 598,287 | 1 | |
Class A6 (a)(b)(h) | 598,287 | 1 | |
Class A7 (a)(b)(h) | 598,287 | 1 | |
Class A8 (a)(b)(h) | 598,287 | 1 | |
Class A9 (a)(b)(h) | 598,287 | 1 | |
U.S. Shipping Partners Corp. (b)(h) | 51,736 | 0 | |
U.S. Shipping Partners Corp. warrants 12/31/29 (b)(h) | 484,379 | 0 | |
XPO Logistics, Inc. (h) | 202,100 | 18,189 | |
TOTAL TRANSPORTATION EX AIR/RAIL | 18,198 | ||
Utilities - 0.9% | |||
NRG Energy, Inc. | 986,100 | 31,180 | |
PG&E Corp. (h) | 3,756,596 | 35,913 | |
Portland General Electric Co. | 14,817 | 582 | |
Vistra Corp. | 2,179,311 | 37,855 | |
TOTAL UTILITIES | 105,530 | ||
TOTAL COMMON STOCKS | |||
(Cost $2,072,926) | 2,377,582 | ||
Nonconvertible Preferred Stocks - 0.0% | |||
Diversified Financial Services - 0.0% | |||
ACNR Holdings, Inc. (b) | 13,212 | 1,652 | |
Transportation Ex Air/Rail - 0.0% | |||
Tricer Holdco SCA (a)(b)(h) | 287,159,690 | 97 | |
TOTAL NONCONVERTIBLE PREFERRED STOCKS | |||
(Cost $11,902) | 1,749 | ||
Principal Amount (000s) | Value (000s) | ||
Bank Loan Obligations - 3.8% | |||
Air Transportation - 0.1% | |||
Dynasty Acquisition Co., Inc.: | |||
Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.500% 3.7204% 4/8/26 (d)(f)(k) | 2,618 | 2,334 | |
Tranche B2 1LN, term loan 3 month U.S. LIBOR + 3.500% 3.7204% 4/4/26 (d)(f)(k) | 1,407 | 1,255 | |
SkyMiles IP Ltd. Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.750% 4.75% 10/20/27 (d)(f)(k) | 3,490 | 3,473 | |
TOTAL AIR TRANSPORTATION | 7,062 | ||
Automotive & Auto Parts - 0.2% | |||
Wand NewCo 3, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.000% 3.1478% 2/5/26 (d)(f)(k) | 18,262 | 17,566 | |
Banks & Thrifts - 0.0% | |||
Citadel Securities LP Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.750% 2.8978% 2/27/26 (d)(f)(k) | 3,625 | 3,566 | |
Broadcasting - 0.0% | |||
Nexstar Broadcasting, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.750% 2.899% 9/19/26 (d)(f)(k) | 4,270 | 4,155 | |
Building Materials - 0.1% | |||
ACProducts, Inc. 1LN, term loan 3 month U.S. LIBOR + 6.500% 7.5% 8/13/25 (d)(f)(k) | 4,671 | 4,710 | |
Traverse Midstream Partners Ll Tranche B, term loan 3 month U.S. LIBOR + 5.500% 6.5% 9/27/24 (d)(f)(k) | 2,809 | 2,584 | |
TOTAL BUILDING MATERIALS | 7,294 | ||
Cable/Satellite TV - 0.0% | |||
LCPR Loan Financing LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 5.000% 5.1484% 10/22/26 (d)(f)(k) | 2,140 | 2,137 | |
Diversified Financial Services - 0.1% | |||
ACNR Holdings, Inc. term loan 14% 9/21/27 (b)(d)(k) | 5,408 | 5,408 | |
New Cotai LLC 1LN, term loan 3 month U.S. LIBOR + 12.000% 14% 9/9/25 (b)(d)(f)(k) | 889 | 889 | |
RPI Intermediate Finance Trust Tranche B 1LN, term loan 3 month U.S. LIBOR + 1.750% 1.8978% 2/11/27 (d)(f)(k) | 5,016 | 4,986 | |
TOTAL DIVERSIFIED FINANCIAL SERVICES | 11,283 | ||
Diversified Media - 0.1% | |||
Allen Media LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 5.500% 5.7204% 2/10/27 (d)(f)(k) | 8,511 | 8,218 | |
Energy - 0.8% | |||
California Resources Corp. 2LN, term loan 3 month U.S. LIBOR + 9.000% 10% 10/27/25 (b)(d)(f)(k) | 17,255 | 17,255 | |
Chesapeake Energy Corp. term loan 3 month U.S. LIBOR + 8.000% 9% 6/9/24 (d)(e)(f)(k) | 82,975 | 57,771 | |
Citgo Holding, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 7.000% 8% 8/1/23 (d)(f)(k) | 1,391 | 1,277 | |
EG America LLC 2LN, term loan 3 month U.S. LIBOR + 8.000% 9% 3/23/26 (d)(f)(k) | 5,815 | 5,546 | |
Epic Crude Services LP Tranche B 1LN, term loan 3 month U.S. LIBOR + 5.000% 5.26% 3/1/26 (d)(f)(k) | 14,035 | 9,726 | |
Forbes Energy Services LLC Tranche B, term loan 18% 4/13/21 (b)(d)(k) | 2,049 | 2,065 | |
Sanchez Energy Corp.: | |||
1LN, term loan 3 month U.S. LIBOR + 8.000% 0% 12/31/49 (b)(e)(f)(k) | 5,861 | 0 | |
term loan 3 month U.S. LIBOR + 0.000% 0% 12/31/49 (b)(e)(f)(k) | 2,528 | 0 | |
TOTAL ENERGY | 93,640 | ||
Healthcare - 0.4% | |||
Milano Acquisition Corp. Tranche B 1LN, term loan 3 month U.S. LIBOR + 4.000% 4.75% 10/1/27 (d)(f)(k) | 6,120 | 6,008 | |
U.S. Renal Care, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 5.000% 5.1875% 6/13/26 (d)(f)(k) | 43,243 | 41,500 | |
Valeant Pharmaceuticals International, Inc. Tranche B, term loan 3 month U.S. LIBOR + 3.000% 3.1493% 6/1/25 (d)(f)(k) | 1,782 | 1,738 | |
TOTAL HEALTHCARE | 49,246 | ||
Hotels - 0.0% | |||
Travelport Finance Luxembourg SARL 1LN, term loan 3 month U.S. LIBOR + 5.000% 5.2203% 5/30/26 (d)(f)(k) | 9,269 | 4,841 | |
Services - 0.2% | |||
KUEHG Corp. Tranche B 2LN, term loan 3 month U.S. LIBOR + 8.250% 9.25% 8/22/25 (d)(f)(k) | 6,055 | 5,359 | |
Maverick Purchaser Sub LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.500% 3.6478% 1/23/27 (d)(f)(k) | 2,224 | 2,130 | |
Sabert Corp. Tranche B 1LN, term loan 3 month U.S. LIBOR + 4.500% 5.5% 12/10/26 (d)(f)(k) | 8,208 | 8,044 | |
Sotheby's 1LN, term loan 3 month U.S. LIBOR + 5.500% 6.5% 1/3/27 (d)(f)(k) | 11,143 | 11,041 | |
TOTAL SERVICES | 26,574 | ||
Super Retail - 0.2% | |||
Academy Ltd. Tranche B, term loan 3 month U.S. LIBOR + 4.000% 5% 7/2/22 (d)(f)(k) | 16,472 | 16,407 | |
Technology - 0.9% | |||
Boxer Parent Co., Inc. Tranche B, term loan 3 month U.S. LIBOR + 4.250% 4.3978% 10/2/25 (d)(f)(k) | 36,367 | 35,289 | |
Camelot Finance SA Tranche B, term loan 3 month U.S. LIBOR + 3.000% 3.1478% 10/31/26 (d)(f)(k) | 1,141 | 1,110 | |
CPI Holdco LLC 1LN, term loan 3 month U.S. LIBOR + 4.250% 4.3978% 11/4/26 (d)(f)(k) | 597 | 588 | |
Landesk Group, Inc. term loan: | |||
3 month U.S. LIBOR + 4.250% 5.25% 1/20/24 (d)(f)(k) | 3,055 | 3,037 | |
3 month U.S. LIBOR + 9.000% 10% 1/20/25 (d)(f)(k) | 10,270 | 10,150 | |
McAfee LLC Tranche B, term loan 3 month U.S. LIBOR + 3.750% 3.8946% 9/29/24 (d)(f)(k) | 4,552 | 4,501 | |
ON Semiconductor Corp. Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.000% 2.1478% 9/19/26 (d)(f)(k) | 7,767 | 7,586 | |
Ultimate Software Group, Inc.: | |||
1LN, term loan 3 month U.S. LIBOR + 4.000% 4.75% 5/3/26 (d)(f)(k) | 11,005 | 10,929 | |
2LN, term loan 3 month U.S. LIBOR + 6.750% 7.5% 5/3/27 (d)(f)(k) | 2,310 | 2,345 | |
VS Buyer LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.250% 3.3978% 2/28/27 (d)(f)(k) | 2,343 | 2,285 | |
Web.com Group, Inc.: | |||
2LN, term loan 3 month U.S. LIBOR + 7.750% 7.8993% 10/11/26 (d)(f)(k) | 10,089 | 9,484 | |
Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.750% 3.8993% 10/11/25 (d)(f)(k) | 11,054 | 10,622 | |
TOTAL TECHNOLOGY | 97,926 | ||
Telecommunications - 0.5% | |||
Connect Finco Sarl Tranche B 1LN, term loan 3 month U.S. LIBOR + 4.500% 5.5% 12/11/26 (d)(f)(k) | 9,005 | 8,807 | |
Frontier Communications Corp. 1LN, term loan 3 month U.S. LIBOR + 4.750% 5.75% 10/1/27 (d)(f)(k) | 1,575 | 1,557 | |
GTT Communications, Inc. Tranche B, term loan 3 month U.S. LIBOR + 2.750% 2.97% 5/31/25 (d)(f)(k) | 25,725 | 21,889 | |
Intelsat Jackson Holdings SA Tranche DD 1LN, term loan 3 month U.S. LIBOR + 5.500% 5.05% 7/13/22 (d)(f)(k)(l) | 5,148 | 5,225 | |
Radiate Holdco LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.500% 4.25% 9/10/26 (d)(f)(k) | 5,605 | 5,501 | |
Securus Technologies Holdings Tranche B, term loan 3 month U.S. LIBOR + 4.500% 5.5% 11/1/24 (d)(f)(k) | 7,080 | 5,893 | |
Zayo Group Holdings, Inc. 1LN, term loan 3 month U.S. LIBOR + 3.000% 3.1478% 3/9/27 (d)(f)(k) | 8,736 | 8,405 | |
TOTAL TELECOMMUNICATIONS | 57,277 | ||
Utilities - 0.2% | |||
PG&E Corp. Tranche B 1LN, term loan 3 month U.S. LIBOR + 4.500% 5.5% 6/23/25 (d)(f)(k) | 27,436 | 27,093 | |
TOTAL BANK LOAN OBLIGATIONS | |||
(Cost $455,917) | 434,285 | ||
Preferred Securities - 9.0% | |||
Banks & Thrifts - 8.0% | |||
Bank of America Corp.: | |||
5.125% (d)(m) | 36,030 | 37,648 | |
5.2% (d)(m) | 61,440 | 62,527 | |
5.875% (d)(m) | 102,630 | 111,106 | |
6.25% (d)(m) | 28,555 | 31,320 | |
Citigroup, Inc.: | |||
4.7% (d)(m) | 15,285 | 15,158 | |
5% (d)(m) | 60,300 | 60,959 | |
5.9% (d)(m) | 27,015 | 28,317 | |
5.95% (d)(m) | 51,015 | 53,513 | |
6.3% (d)(m) | 5,610 | 5,987 | |
Goldman Sachs Group, Inc.: | |||
3 month U.S. LIBOR + 3.920% 4.1653% (d)(f)(m) | 31,615 | 31,438 | |
4.4% (d)(m) | 8,035 | 7,783 | |
4.95% (d)(m) | 13,335 | 13,808 | |
5% (d)(m) | 70,565 | 69,093 | |
Huntington Bancshares, Inc. 5.7% (d)(m) | 12,990 | 12,498 | |
JPMorgan Chase & Co.: | |||
3 month U.S. LIBOR + 3.320% 3.5451% (d)(f)(m) | 43,545 | 40,630 | |
3 month U.S. LIBOR + 3.800% 4.051% (d)(f)(m) | 16,855 | 16,711 | |
4% (d)(m) | 34,340 | 32,610 | |
4.6% (d)(m) | 23,365 | 23,307 | |
5% (d)(m) | 30,845 | 31,230 | |
6% (d)(m) | 69,385 | 71,964 | |
6.125% (d)(m) | 17,585 | 18,327 | |
6.75% (d)(m) | 8,330 | 9,245 | |
Wells Fargo & Co.: | |||
5.875% (d)(m) | 50,420 | 55,220 | |
5.9% (d)(m) | 63,075 | 65,038 | |
TOTAL BANKS & THRIFTS | 905,437 | ||
Energy - 1.0% | |||
DCP Midstream Partners LP 7.375% (d)(m) | 15,260 | 10,346 | |
Energy Transfer Partners LP: | |||
6.25% (d)(m) | 70,123 | 47,960 | |
6.625% (d)(m) | 27,290 | 19,759 | |
MPLX LP 6.875% (d)(m) | 30,450 | 26,015 | |
Summit Midstream Partners LP 9.5% (d)(m) | 15,260 | 2,954 | |
TOTAL ENERGY | 107,034 | ||
Homebuilders/Real Estate - 0.0% | |||
Odebrecht Finance Ltd. 7.5% (c)(e)(m) | 2,940 | 96 | |
TOTAL PREFERRED SECURITIES | |||
(Cost $1,045,358) | 1,012,567 | ||
Shares | Value (000s) | ||
Money Market Funds - 4.3% | |||
Fidelity Cash Central Fund 0.10% (n) | 473,193,216 | 473,288 | |
Fidelity Securities Lending Cash Central Fund 0.11% (n)(o) | 9,297,196 | 9,298 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $482,540) | 482,586 | ||
TOTAL INVESTMENT IN SECURITIES - 99.5% | |||
(Cost $10,906,844) | 11,208,402 | ||
NET OTHER ASSETS (LIABILITIES) - 0.5% | 51,837 | ||
NET ASSETS - 100% | $11,260,239 |
Values shown as $0 in the Schedule of Investments may reflect amounts less than $500.
Legend
(a) Restricted securities (including private placements) - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $43,019,000 or 0.4% of net assets.
(b) Level 3 security
(c) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $4,482,585,000 or 39.8% of net assets.
(d) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end.
(e) Non-income producing - Security is in default.
(f) Coupon is indexed to a floating interest rate which may be multiplied by a specified factor and/or subject to caps or floors.
(g) Security or a portion of the security purchased on a delayed delivery or when-issued basis.
(h) Non-income producing
(i) Affiliated company
(j) Security or a portion of the security is on loan at period end.
(k) Remaining maturities of bank loan obligations may be less than the stated maturities shown as a result of contractual or optional prepayments by the borrower. Such prepayments cannot be predicted with certainty.
(l) Position or a portion of the position represents an unfunded loan commitment. At period end, the total principal amount and market value of unfunded commitments totaled $2,574,000 and $2,613,000, respectively.
(m) Security is perpetual in nature with no stated maturity date.
(n) 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.
(o) Investment made with cash collateral received from securities on loan.
Additional information on each restricted holding is as follows:
Security | Acquisition Date | Acquisition Cost (000s) |
Arena Brands Holding Corp. Class B | 6/18/97 - 1/12/99 | $21,592 |
California Resources Corp. | 10/27/20 | $20,266 |
Mesquite Energy, Inc. 15% 7/31/23 | 7/10/20 - 10/15/20 | $2,071 |
New Cotai LLC/New Cotai Capital Corp. | 9/11/20 | $16,677 |
Tricer Holdco SCA | 10/16/09 - 12/30/17 | $10,248 |
Tricer Holdco SCA Class A1 | 10/16/09 - 10/29/09 | $1,653 |
Tricer Holdco SCA Class A2 | 10/16/09 - 10/29/09 | $1,653 |
Tricer Holdco SCA Class A3 | 10/16/09 - 10/29/09 | $1,653 |
Tricer Holdco SCA Class A4 | 10/16/09 - 10/29/09 | $1,653 |
Tricer Holdco SCA Class A5 | 10/16/09 - 10/29/09 | $1,653 |
Tricer Holdco SCA Class A6 | 10/16/09 - 10/29/09 | $1,653 |
Tricer Holdco SCA Class A7 | 10/16/09 - 10/29/09 | $1,653 |
Tricer Holdco SCA Class A8 | 10/16/09 - 10/29/09 | $1,653 |
Tricer Holdco SCA Class A9 | 10/16/09 - 10/29/09 | $1,654 |
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 | $305 |
Fidelity Securities Lending Cash Central Fund | 65 |
Total | $370 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable. Amount for Fidelity Securities Lending Cash Central Fund represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities.
Other Affiliated Issuers
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows:
Affiliate (Amounts in thousands) | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Realized Gain (loss) | Change in Unrealized appreciation (depreciation) | Value, end of period |
California Resources Corp. | $-- | $24,203 | $-- | $-- | $-- | $(184,535) | $55,684 |
California Resources Corp. | -- | 20,266 | -- | -- | -- | 2,082 | 22,348 |
Denbury, Inc. | -- | -- | -- | -- | -- | (65,313) | 54,989 |
Total | $-- | $44,469 | $-- | $-- | $-- | $(247,766) | $133,021 |
Investment Valuation
The following is a summary of the inputs used, as of October 31, 2020, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
(Amounts in thousands) | ||||
Investments in Securities: | ||||
Equities: | ||||
Communication Services | $300,638 | $283,960 | $1 | $16,677 |
Consumer Discretionary | 409,897 | 399,737 | -- | 10,160 |
Consumer Staples | 105,852 | 92,461 | -- | 13,391 |
Energy | 156,573 | 114,562 | 22,349 | 19,662 |
Financials | 57,674 | 55,760 | -- | 1,914 |
Health Care | 290,003 | 288,070 | -- | 1,933 |
Industrials | 163,842 | 161,115 | 5 | 2,722 |
Information Technology | 674,209 | 674,209 | -- | -- |
Materials | 112,446 | 112,342 | -- | 104 |
Real Estate | 2,667 | 2,667 | -- | -- |
Utilities | 105,530 | 105,530 | -- | -- |
Corporate Bonds | 6,899,633 | -- | 6,892,958 | 6,675 |
Bank Loan Obligations | 434,285 | -- | 408,668 | 25,617 |
Preferred Securities | 1,012,567 | -- | 1,012,567 | -- |
Money Market Funds | 482,586 | 482,586 | -- | -- |
Total Investments in Securities: | $11,208,402 | $2,772,999 | $8,336,548 | $98,855 |
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
United States of America | 86.9% |
Canada | 2.7% |
Luxembourg | 1.6% |
Cayman Islands | 1.6% |
France | 1.2% |
Netherlands | 1.2% |
Multi-National | 1.1% |
Others (Individually Less Than 1%) | 3.7% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amount) | October 31, 2020 (Unaudited) | |
Assets | ||
Investment in securities, at value (including securities loaned of $8,575) — See accompanying schedule: Unaffiliated issuers (cost $10,043,517) | $10,592,795 | |
Fidelity Central Funds (cost $482,540) | 482,586 | |
Other affiliated issuers (cost $380,787) | 133,021 | |
Total Investment in Securities (cost $10,906,844) | $11,208,402 | |
Cash | 1,174 | |
Receivable for investments sold | 2,297 | |
Receivable for fund shares sold | 7,626 | |
Dividends receivable | 763 | |
Interest receivable | 130,299 | |
Distributions receivable from Fidelity Central Funds | 41 | |
Prepaid expenses | 19 | |
Other receivables | 686 | |
Total assets | 11,351,307 | |
Liabilities | ||
Payable for investments purchased | ||
Regular delivery | $31,087 | |
Delayed delivery | 30,380 | |
Payable for fund shares redeemed | 9,155 | |
Distributions payable | 3,874 | |
Accrued management fee | 5,240 | |
Other affiliated payables | 1,190 | |
Other payables and accrued expenses | 848 | |
Collateral on securities loaned | 9,294 | |
Total liabilities | 91,068 | |
Net Assets | $11,260,239 | |
Net Assets consist of: | ||
Paid in capital | $10,786,424 | |
Total accumulated earnings (loss) | 473,815 | |
Net Assets | $11,260,239 | |
Net Asset Value, offering price and redemption price per share ($11,260,239 ÷ 1,140,170 shares) | $9.88 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Amounts in thousands | Six months ended October 31, 2020 (Unaudited) | |
Investment Income | ||
Dividends | $39,923 | |
Interest | 224,092 | |
Income from Fidelity Central Funds (including $65 from security lending) | 370 | |
Total income | 264,385 | |
Expenses | ||
Management fee | $30,329 | |
Transfer agent fees | 6,237 | |
Accounting fees | 710 | |
Custodian fees and expenses | 54 | |
Independent trustees' fees and expenses | 30 | |
Registration fees | 92 | |
Audit | 60 | |
Legal | 50 | |
Miscellaneous | 51 | |
Total expenses before reductions | 37,613 | |
Expense reductions | (77) | |
Total expenses after reductions | 37,536 | |
Net investment income (loss) | 226,849 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 109,890 | |
Fidelity Central Funds | (6) | |
Foreign currency transactions | (103) | |
Total net realized gain (loss) | 109,781 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 1,227,412 | |
Fidelity Central Funds | (33) | |
Other affiliated issuers | (247,766) | |
Assets and liabilities in foreign currencies | 24 | |
Total change in net unrealized appreciation (depreciation) | 979,637 | |
Net gain (loss) | 1,089,418 | |
Net increase (decrease) in net assets resulting from operations | $1,316,267 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Amounts in thousands | Six months ended October 31, 2020 (Unaudited) | Year ended April 30, 2020 |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $226,849 | $504,273 |
Net realized gain (loss) | 109,781 | 80,945 |
Change in net unrealized appreciation (depreciation) | 979,637 | (1,461,131) |
Net increase (decrease) in net assets resulting from operations | 1,316,267 | (875,913) |
Distributions to shareholders | (243,447) | (594,227) |
Share transactions | ||
Proceeds from sales of shares | 1,279,861 | 3,247,199 |
Reinvestment of distributions | 217,295 | 527,109 |
Cost of shares redeemed | (1,538,105) | (3,706,922) |
Net increase (decrease) in net assets resulting from share transactions | (40,949) | 67,386 |
Total increase (decrease) in net assets | 1,031,871 | (1,402,754) |
Net Assets | ||
Beginning of period | 10,228,368 | 11,631,122 |
End of period | $11,260,239 | $10,228,368 |
Other Information | ||
Shares | ||
Sold | 130,476 | 335,944 |
Issued in reinvestment of distributions | 22,292 | 53,598 |
Redeemed | (158,836) | (397,075) |
Net increase (decrease) | (6,068) | (7,533) |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Capital & Income Fund
Six months ended (Unaudited) October 31, | Years endedApril 30, | |||||
2020 | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $8.92 | $10.08 | $10.12 | $10.09 | $9.24 | $9.99 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .200 | .426 | .432 | .482 | .430 | .404 |
Net realized and unrealized gain (loss) | .975 | (1.085) | .207 | .065 | .824 | (.710) |
Total from investment operations | 1.175 | (.659) | .639 | .547 | 1.254 | (.306) |
Distributions from net investment income | (.190) | (.425) | (.487) | (.410) | (.405) | (.387) |
Distributions from net realized gain | (.025) | (.076) | (.192) | (.107) | – | (.058) |
Total distributions | (.215) | (.501) | (.679) | (.517) | (.405) | (.445) |
Redemption fees added to paid in capitalA | – | – | – | –B | .001 | .001 |
Net asset value, end of period | $9.88 | $8.92 | $10.08 | $10.12 | $10.09 | $9.24 |
Total ReturnC,D | 13.23% | (6.89)% | 6.74% | 5.51% | 13.85% | (3.05)% |
Ratios to Average Net AssetsE,F | ||||||
Expenses before reductions | .68%G | .67% | .69% | .67% | .73% | .75% |
Expenses net of fee waivers, if any | .68%G | .67% | .69% | .67% | .73% | .75% |
Expenses net of all reductions | .68%G | .67% | .69% | .67% | .73% | .74% |
Net investment income (loss) | 4.08%G | 4.32% | 4.37% | 4.71% | 4.45% | 4.30% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $11,260 | $10,228 | $11,631 | $12,053 | $11,230 | $10,188 |
Portfolio turnover rateH | 44%G | 46% | 43% | 39% | 39% | 35% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.0005 per share.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Fees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment advisor, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
G Annualized
H Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended October 31, 2020
(Amounts in thousands except percentages)
1. Organization.
Fidelity Capital & Income Fund (the Fund) is a fund of Fidelity Summer Street Trust (the Trust) and is authorized to issue an unlimited number of shares. Share transactions on the Statement of Changes in Net Assets may contain exchanges between affiliated funds. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date ranged from less than .005% to .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investment Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. Corporate bonds, bank loan obligations and preferred securities are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances. The Fund invests a significant portion of its assets in below investment grade securities. The value of these securities can be more volatile due to changes in the credit quality of the issuer and is sensitive to changes in economic, market and regulatory conditions.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of October 31, 2020 is included at the end of the Fund's Schedule of Investments.
Foreign Currency. Certain Funds may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received, and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Paid in Kind (PIK) income is recorded at the fair market value of the securities received. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain. Debt obligations may be placed on non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivables when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is reasonably assured.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan) for the Fund, certain independent Trustees have elected to defer receipt of a portion of their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees of $663 are included in the accompanying Statement of Assets and Liabilities in other receivables and other payables and accrued expenses, respectively.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded daily and paid monthly from net investment income. Distributions from realized gains, if any, are declared and recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, defaulted bonds, market discount, partnerships, deferred trustees compensation and losses deferred due to wash sales.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
Gross unrealized appreciation | $1,255,287 |
Gross unrealized depreciation | (922,085) |
Net unrealized appreciation (depreciation) | $333,202 |
Tax cost | $10,875,200 |
Delayed Delivery Transactions and When-Issued Securities. During the period, certain Funds transacted in securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. Securities purchased on a delayed delivery or when-issued basis are identified as such in the Schedule of Investments. Compensation for interest forgone in the purchase of a delayed delivery or when-issued debt security may be received. With respect to purchase commitments, each applicable Fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Payables and receivables associated with the purchases and sales of delayed delivery securities having the same coupon, settlement date and broker are offset. Delayed delivery or when-issued securities that have been purchased from and sold to different brokers are reflected as both payables and receivables in the Statement of Assets and Liabilities under the caption "Delayed delivery", as applicable. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.
Restricted Securities (including Private Placements). The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
Loans and Other Direct Debt Instruments. Direct debt instruments are interests in amounts owed to lenders by corporate or other borrowers. These instruments may be in the form of loans, trade claims or other receivables and may include standby financing commitments such as revolving credit facilities that obligate a fund to supply additional cash to the borrower on demand. Loans may be acquired through assignment, participation, or may be made directly to a borrower. Such instruments are presented in the Bank Loan Obligations section in the Schedule of Investments. Certain funds may also invest in unfunded loan commitments, which are contractual obligations for future funding. Information regarding unfunded commitments is included at the end of the Schedule of Investments, if applicable.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, are noted in the table below.
Purchases ($) | Sales ($) | |
Fidelity Capital & Income Fund | 2,279,454 | 2,429,532 |
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company LLC (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the Fund's average net assets and an annualized group fee rate that averaged .10% during the period. The group fee rate is based upon the monthly average net assets of a group of registered investment companies with which the investment adviser has management contracts. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annualized management fee rate was .55% of the Fund's average net assets.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company LLC (FIIOC), an affiliate of the investment adviser, is the Fund's transfer, dividend disbursing and shareholder servicing agent. FIIOC receives account fees and asset-based fees that vary according to account size and type of account. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the transfer agent fees were equivalent to an annualized rate of .11% of average net assets.
Accounting Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. For the period, the fees were equivalent to the following annualized rates:
% of Average Net Assets | |
Fidelity Capital & Income Fund | .01 |
Brokerage Commissions. A portion of portfolio transactions were placed with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were as follows:
Amount | |
Fidelity Capital & Income Fund | $5 |
Interfund Trades. Funds may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
6. Committed Line of Credit.
Certain Funds participate with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The participating funds have agreed to pay commitment fees on their pro-rata portion of the line of credit, which are reflected in Miscellaneous expenses on the Statement of Operations, and are as follows:
Amount | |
Fidelity Capital & Income Fund | $12 |
During the period, there were no borrowings on this line of credit.
7. Security Lending.
Funds lend portfolio securities from time to time in order to earn additional income. Lending agents are used, including National Financial Services (NFS), an affiliate of the investment adviser. Pursuant to a securities lending agreement, NFS will receive a fee, which is capped at 9.9% of a fund's daily lending revenue, for its services as lending agent. A fund may lend securities to certain qualified borrowers, including NFS. On the settlement date of the loan, a fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of a fund and any additional required collateral is delivered to a fund on the next business day. A fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund may apply collateral received from the borrower against the obligation. A fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. Any loaned securities are identified as such in the Schedule of Investments, and the value of loaned securities and cash collateral at period end, as applicable, are presented in the Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Affiliated security lending activity, if any, was as follows:
Total Security Lending Income Fees Paid to NFS | Security Lending Income From Securities Loaned to NFS | Value of Securities Loaned to NFS at Period End | |
Fidelity Capital & Income Fund | $6 | $– | $– |
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $33 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses by $32.
In addition, during the period the investment adviser or an affiliate reimbursed and/or waived a portion of operating expenses in the amount of $12.
9. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
10. Coronavirus (COVID-19) Pandemic.
An outbreak of COVID-19 first detected in China during December 2019 has since spread globally and was declared a pandemic by the World Health Organization during March 2020. Developments that disrupt global economies and financial markets, such as the COVID-19 pandemic, may magnify factors that affect the Fund's performance.
Shareholder Expense Example
As a shareholder, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or redemption proceeds, as applicable and (2) ongoing costs, which generally include management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in a fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (May 1, 2020 to October 31, 2020).
Actual Expenses
The first line of the accompanying table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class/Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. If any fund is a shareholder of any underlying mutual funds or exchange-traded funds (ETFs) (the Underlying Funds), such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses incurred presented in the table. These fees and expenses are not included in the annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. If any fund is a shareholder of any Underlying Funds, such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses as presented in the table. These fees and expenses are not included in the annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
Annualized Expense Ratio-A | Beginning Account Value May 1, 2020 | Ending Account Value October 31, 2020 | Expenses Paid During Period-B May 1, 2020 to October 31, 2020 | |
Fidelity Capital & Income Fund | .68% | |||
Actual | $1,000.00 | $1,132.30 | $3.65 | |
Hypothetical-C | $1,000.00 | $1,021.78 | $3.47 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/ 365 (to reflect the one-half year period). The fees and expenses of any Underlying Funds are not included in each annualized expense ratio.
C 5% return per year before expenses
Proxy Voting Results
A special meeting of shareholders was held on June 9, 2020. The results of votes taken among shareholders on the proposals before them are reported below. Each vote reported represents one dollar of net asset value held on the record date for the meeting.
PROPOSAL 1
To elect a Board of Trustees.
# of Votes | % of Votes | |
Dennis J. Dirks | ||
Affirmative | 16,477,844,543.945 | 94.954 |
Withheld | 875,616,757.045 | 5.046 |
TOTAL | 17,353,461,300.990 | 100.000 |
Donald F. Donahue | ||
Affirmative | 16,475,304,981.550 | 94.940 |
Withheld | 878,156,319.440 | 5.060 |
TOTAL | 17,353,461,300.990 | 100.000 |
Bettina Doulton | ||
Affirmative | 16,570,440,321.103 | 95.488 |
Withheld | 783,020,979.887 | 4.512 |
TOTAL | 17,353,461,300.990 | 100.000 |
Vicki L. Fuller | ||
Affirmative | 16,590,910,486.905 | 95.606 |
Withheld | 762,550,814.085 | 4.394 |
TOTAL | 17,353,461,300.990 | 100.00 |
Patricia L. Kampling | ||
Affirmative | 16,469,872,791.586 | 94.908 |
Withheld | 883,588,509.404 | 5.092 |
TOTAL | 17,353,461,300.990 | 100.000 |
Alan J. Lacy | ||
Affirmative | 16,344,655,183.636 | 94.187 |
Withheld | 1,008,806,117.354 | 5.813 |
TOTAL | 17,353,461,300.990 | 100.000 |
Ned C. Lautenbach | ||
Affirmative | 15,532,663,704.227 | 89.508 |
Withheld | 1,820,797,596.763 | 10.492 |
TOTAL | 17,353,461,300.990 | 100.000 |
Robert A. Lawrence | ||
Affirmative | 16,389,821,876.677 | 94.447 |
Withheld | 963,639,424.313 | 5.553 |
TOTAL | 17,353,461,300.990 | 100.000 |
Joseph Mauriello | ||
Affirmative | 16,363,427,626.626 | 94.295 |
Withheld | 990,033,674.365 | 5.705 |
TOTAL | 17,353,461,300.990 | 100.000 |
Cornelia M. Small | ||
Affirmative | 16,405,902,888.605 | 94.540 |
Withheld | 947,558,412.386 | 5.460 |
TOTAL | 17,353,461,300.990 | 100.000 |
Garnett A. Smith | ||
Affirmative | 16,371,912,270.945 | 94.344 |
Withheld | 981,549,030.045 | 5.656 |
TOTAL | 17,353,461,300.990 | 100.000 |
David M. Thomas | ||
Affirmative | 16,365,966,852.048 | 94.310 |
Withheld | 987,494,448.942 | 5.690 |
TOTAL | 17,353,461,300.990 | 100.000 |
Susan Tomasky | ||
Affirmative | 16,483,922,579.861 | 94.989 |
Withheld | 869,538,721.129 | 5.011 |
TOTAL | 17,353,461,300.990 | 100.000 |
Michael E. Wiley | ||
Affirmative | 16,379,083,262.890 | 94.385 |
Withheld | 974,378,038.101 | 5.615 |
TOTAL | 17,353,461,300.990 | 100.000 |
PROPOSAL 2
To convert a fundamental investment policy to a non-fundamental investment policy.
# of Votes | % of Votes | |
Affirmative | 4,253,916,673.122 | 68.742 |
Against | 941,111,500.553 | 15.208 |
Abstain | 738,945,957.033 | 11.941 |
Broker Non-Vote | 254,227,785.000 | 4.108 |
TOTAL | 6,188,201,915.709 | 100.000 |
PROPOSAL 5
A shareholder proposal to institute procedures to avoid holding investments in companies that contribute to genocide or crimes against humanity.
# of Votes | % of Votes | |
Affirmative | 2,146,305,818.690 | 34.684 |
Against | 3,303,925,117.646 | 53.391 |
Abstain | 480,748,945.773 | 7.769 |
Broker Non-Vote | 257,222,033.600 | 4.157 |
TOTAL | 6,188,201,915.709 | 100.000 |
Proposal 1 reflects trust wide proposal and voting results. | ||
Proposal 5 was not approved by shareholders. |
CAI-SANN-1220
1.538653.123
Fidelity® High Income Fund
Semi-Annual Report
October 31, 2020
Includes Fidelity and Fidelity Advisor share classes
See the inside front cover for important information about access to your fund’s shareholder reports.
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Contents
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-800-544-8544 if you’re an individual investing directly with Fidelity, call 1-800-835-5092 if you’re a plan sponsor or participant with Fidelity as your recordkeeper or call 1-877-208-0098 on institutional accounts or if you’re an advisor or invest through one to request a free copy of the proxy voting guidelines.
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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. © 2020 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT. Forms N-PORT are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-PORT may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Note to Shareholders:
Early in 2020, the outbreak and spread of a new coronavirus emerged as a public health emergency that had a major influence on financial markets, primarily based on its impact on the global economy and the outlook for corporate earnings. The virus causes a respiratory disease known as COVID-19. On March 11, the World Health Organization declared the COVID-19 outbreak a pandemic, citing sustained risk of further global spread.
In the weeks following, as the crisis worsened, we witnessed an escalating human tragedy with wide-scale social and economic consequences from coronavirus-containment measures. The outbreak of COVID-19 prompted a number of measures to limit the spread, including travel and border restrictions, quarantines, and restrictions on large gatherings. In turn, these resulted in lower consumer activity, diminished demand for a wide range of products and services, disruption in manufacturing and supply chains, and – given the wide variability in outcomes regarding the outbreak – significant market uncertainty and volatility. Amid the turmoil, global governments and central banks took unprecedented action to help support consumers, businesses, and the broader economies, and to limit disruption to financial systems.
The situation continues to unfold, and the extent and duration of its impact on financial markets and the economy remain highly uncertain. Extreme events such as the coronavirus crisis are “exogenous shocks” that can have significant adverse effects on mutual funds and their investments. Although multiple asset classes may be affected by market disruption, the duration and impact may not be the same for all types of assets.
Fidelity is committed to helping you stay informed amid news about COVID-19 and during increased market volatility, and we’re taking extra steps to be responsive to customer needs. We encourage you to visit our websites, where we offer ongoing updates, commentary, and analysis on the markets and our funds.
Investment Summary (Unaudited)
Top Five Holdings as of October 31, 2020
(by issuer, excluding cash equivalents) | % of fund's net assets |
CCO Holdings LLC/CCO Holdings Capital Corp. | 3.4 |
Aramark Services, Inc. | 2.4 |
SFR Group SA | 2.2 |
C&W Senior Financing Designated Activity Co. | 2.0 |
Tenet Healthcare Corp. | 1.9 |
11.9 |
Top Five Market Sectors as of October 31, 2020
% of fund's net assets | |
Telecommunications | 14.7 |
Energy | 12.3 |
Cable/Satellite TV | 8.3 |
Services | 7.3 |
Healthcare | 7.1 |
Quality Diversification (% of fund's net assets)
As of October 31, 2020 | ||
BBB | 1.2% | |
BB | 37.9% | |
B | 42.5% | |
CCC,CC,C | 12.4% | |
Not Rated | 1.5% | |
Equities | 2.9% | |
Short-Term Investments and Net Other Assets | 1.6% |
We have used ratings from Moody's Investors Service, Inc. Where Moody's® ratings are not available, we have used S&P® ratings. All ratings are as of the date indicated and do not reflect subsequent changes.
Asset Allocation (% of fund's net assets)
As of October 31, 2020 * | ||
Nonconvertible Bonds | 93.1% | |
Convertible Bonds, Preferred Stocks | 0.6% | |
Common Stocks | 1.0% | |
Bank Loan Obligations | 1.8% | |
Short-Term Investments and Net Other Assets (Liabilities) | 1.6% |
* Foreign investments - 21.3%
Schedule of Investments October 31, 2020 (Unaudited)
Showing Percentage of Net Assets
Corporate Bonds - 93.7% | |||
Principal Amount (000s) | Value (000s) | ||
Convertible Bonds - 0.6% | |||
Broadcasting - 0.6% | |||
DISH Network Corp.: | |||
2.375% 3/15/24 | $17,054 | $15,319 | |
3.375% 8/15/26 | 26,345 | 23,287 | |
38,606 | |||
Energy - 0.0% | |||
Mesquite Energy, Inc. 15% 7/31/23 (a)(b) | 2,732 | 2,732 | |
TOTAL CONVERTIBLE BONDS | 41,338 | ||
Nonconvertible Bonds - 93.1% | |||
Aerospace - 4.7% | |||
Allegheny Technologies, Inc. 5.875% 12/1/27 | 29,171 | 27,457 | |
BBA U.S. Holdings, Inc.: | |||
4% 3/1/28 (c) | 12,000 | 11,605 | |
5.375% 5/1/26 (c) | 22,816 | 23,044 | |
Bombardier, Inc.: | |||
6% 10/15/22 (c) | 6,535 | 5,931 | |
6.125% 1/15/23 (c) | 4,738 | 4,088 | |
7.5% 12/1/24 (c) | 1,325 | 997 | |
7.5% 3/15/25 (c) | 32,898 | 23,933 | |
7.875% 4/15/27 (c) | 6,392 | 4,656 | |
BWX Technologies, Inc.: | |||
4.125% 6/30/28 (c) | 19,980 | 20,180 | |
5.375% 7/15/26 (c) | 17,280 | 17,913 | |
Kaiser Aluminum Corp.: | |||
4.625% 3/1/28 (c) | 26,809 | 26,407 | |
6.5% 5/1/25 (c) | 9,190 | 9,741 | |
Moog, Inc. 4.25% 12/15/27 (c) | 11,760 | 12,069 | |
Science Applications International Corp. 4.875% 4/1/28 (c) | 1,990 | 2,085 | |
TransDigm UK Holdings PLC 6.875% 5/15/26 | 5,135 | 5,109 | |
TransDigm, Inc.: | |||
5.5% 11/15/27 | 55,485 | 54,167 | |
6.25% 3/15/26 (c) | 32,804 | 34,198 | |
6.5% 5/15/25 | 5,589 | 5,589 | |
7.5% 3/15/27 | 4,474 | 4,619 | |
8% 12/15/25 (c) | 35,940 | 38,860 | |
332,648 | |||
Automotive & Auto Parts - 0.8% | |||
Ford Motor Credit Co. LLC: | |||
3.087% 1/9/23 | 7,780 | 7,702 | |
3.219% 1/9/22 | 6,375 | 6,335 | |
3.339% 3/28/22 | 4,850 | 4,838 | |
4.125% 8/17/27 | 6,250 | 6,156 | |
4.687% 6/9/25 | 9,550 | 9,779 | |
5.113% 5/3/29 | 11,340 | 11,779 | |
5.125% 6/16/25 | 7,065 | 7,364 | |
53,953 | |||
Banks & Thrifts - 1.0% | |||
Ally Financial, Inc.: | |||
5.75% 11/20/25 | 45,705 | 51,939 | |
8% 11/1/31 | 4,926 | 6,723 | |
8% 11/1/31 | 7,348 | 10,138 | |
68,800 | |||
Broadcasting - 2.0% | |||
Netflix, Inc.: | |||
4.875% 4/15/28 | 7,325 | 8,238 | |
4.875% 6/15/30 (c) | 5,105 | 5,826 | |
5.375% 11/15/29 (c) | 11,275 | 13,206 | |
5.875% 11/15/28 | 9,485 | 11,333 | |
6.375% 5/15/29 | 17,940 | 21,977 | |
Sirius XM Radio, Inc.: | |||
4.125% 7/1/30 (c) | 26,000 | 26,728 | |
5% 8/1/27 (c) | 20,227 | 21,188 | |
5.375% 7/15/26 (c) | 18,249 | 19,006 | |
5.5% 7/1/29 (c) | 13,105 | 14,264 | |
141,766 | |||
Building Materials - 0.3% | |||
Advanced Drain Systems, Inc. 5% 9/30/27 (c) | 18,966 | 19,846 | |
Cable/Satellite TV - 8.0% | |||
CCO Holdings LLC/CCO Holdings Capital Corp.: | |||
4% 3/1/23 (c) | 5,601 | 5,657 | |
4.25% 2/1/31 (c) | 18,130 | 18,538 | |
4.5% 8/15/30 (c) | 29,635 | 30,783 | |
4.5% 5/1/32 (c) | 47,900 | 49,457 | |
4.75% 3/1/30 (c) | 11,030 | 11,602 | |
5% 2/1/28 (c) | 22,338 | 23,522 | |
5.125% 5/1/27 (c) | 18,817 | 19,758 | |
5.5% 5/1/26 (c) | 26,948 | 28,026 | |
5.75% 2/15/26 (c) | 26,531 | 27,504 | |
5.875% 5/1/27 (c) | 21,160 | 22,078 | |
CSC Holdings LLC: | |||
4.125% 12/1/30 (c) | 10,635 | 10,813 | |
4.625% 12/1/30 (c) | 34,065 | 34,056 | |
5.25% 6/1/24 | 1,517 | 1,619 | |
5.375% 2/1/28 (c) | 10,000 | 10,625 | |
5.5% 5/15/26 (c) | 32,797 | 34,125 | |
5.5% 4/15/27 (c) | 12,869 | 13,545 | |
7.5% 4/1/28 (c) | 4,650 | 5,091 | |
DISH DBS Corp.: | |||
5.875% 11/15/24 | 3,152 | 3,171 | |
7.75% 7/1/26 | 15,777 | 16,723 | |
Dolya Holdco 18 DAC 5% 7/15/28 (c) | 22,990 | 22,933 | |
Radiate Holdco LLC/Radiate Financial Service Ltd.: | |||
4.5% 9/15/26 (c) | 16,535 | 16,618 | |
6.5% 9/15/28 (c) | 20,020 | 20,621 | |
Telenet Finance Luxembourg Notes SARL 5.5% 3/1/28 (c) | 15,200 | 15,960 | |
Virgin Media Finance PLC 5% 7/15/30 (c) | 16,050 | 15,970 | |
Virgin Media Secured Finance PLC: | |||
4.5% 8/15/30 (c)(d) | 26,115 | 26,539 | |
5.5% 8/15/26 (c) | 12,703 | 13,216 | |
5.5% 5/15/29 (c) | 9,873 | 10,548 | |
Ziggo Bond Co. BV: | |||
5.125% 2/28/30 (c) | 26,465 | 27,193 | |
6% 1/15/27 (c) | 2,185 | 2,267 | |
Ziggo BV: | |||
4.875% 1/15/30 (c) | 6,775 | 7,025 | |
5.5% 1/15/27 (c) | 20,772 | 21,551 | |
567,134 | |||
Capital Goods - 0.5% | |||
Vertical U.S. Newco, Inc. 5.25% 7/15/27 (c) | 34,661 | 35,673 | |
Chemicals - 3.4% | |||
Axalta Coating Systems/Dutch Holding BV 4.75% 6/15/27 (c) | 12,045 | 12,617 | |
Blue Cube Spinco, Inc.: | |||
9.75% 10/15/23 | 665 | 681 | |
10% 10/15/25 | 5,806 | 6,130 | |
CF Industries Holdings, Inc.: | |||
4.95% 6/1/43 | 13,945 | 16,716 | |
5.15% 3/15/34 | 5,310 | 6,219 | |
5.375% 3/15/44 | 9,555 | 11,729 | |
Consolidated Energy Finance SA: | |||
3 month U.S. LIBOR + 3.750% 4.0004% 6/15/22 (c)(e)(f) | 9,346 | 8,933 | |
6.5% 5/15/26 (c) | 21,925 | 20,281 | |
6.875% 6/15/25 (c) | 2,020 | 1,879 | |
Methanex Corp.: | |||
5.125% 10/15/27 | 20,095 | 20,463 | |
5.65% 12/1/44 | 1,685 | 1,620 | |
Olin Corp.: | |||
5% 2/1/30 | 18,145 | 18,281 | |
5.125% 9/15/27 | 2,193 | 2,226 | |
5.625% 8/1/29 | 16,710 | 17,274 | |
The Chemours Co. LLC: | |||
5.375% 5/15/27 | 32,876 | 32,260 | |
6.625% 5/15/23 | 5,481 | 5,467 | |
7% 5/15/25 | 17,027 | 17,155 | |
Valvoline, Inc.: | |||
4.25% 2/15/30 (c) | 32,930 | 33,589 | |
4.375% 8/15/25 | 1,483 | 1,526 | |
W. R. Grace & Co.-Conn.: | |||
4.875% 6/15/27 (c) | 6,785 | 7,068 | |
5.625% 10/1/24 (c) | 1,762 | 1,899 | |
244,013 | |||
Consumer Products - 0.4% | |||
Mattel, Inc.: | |||
5.875% 12/15/27 (c) | 3,125 | 3,391 | |
6.75% 12/31/25 (c) | 23,892 | 25,128 | |
Prestige Brands, Inc. 6.375% 3/1/24 (c) | 671 | 686 | |
29,205 | |||
Containers - 1.8% | |||
Ardagh Packaging Finance PLC/Ardagh MP Holdings U.S.A., Inc.: | |||
4.125% 8/15/26 (c) | 735 | 750 | |
5.25% 8/15/27 (c) | 4,745 | 4,871 | |
5.25% 8/15/27 (c) | 5,130 | 5,282 | |
6% 2/15/25 (c) | 8,555 | 8,844 | |
Berry Global, Inc. 4.875% 7/15/26 (c) | 10,529 | 11,029 | |
Crown Americas LLC/Crown Americas Capital Corp. IV: | |||
4.5% 1/15/23 | 1,934 | 2,011 | |
4.75% 2/1/26 | 9,680 | 10,043 | |
Flex Acquisition Co., Inc.: | |||
6.875% 1/15/25 (c) | 31,576 | 31,063 | |
7.875% 7/15/26 (c) | 10,748 | 10,860 | |
Intelligent Packaging Ltd. Finco, Inc. 6% 9/15/28 (c) | 2,375 | 2,417 | |
OI European Group BV 4% 3/15/23 (c) | 3,094 | 3,109 | |
Owens-Brockway Glass Container, Inc. 5.375% 1/15/25 (c) | 7,524 | 7,863 | |
Reynolds Group Issuer, Inc./Reynolds Group Issuer LLC/Reynolds Group Issuer (Luxembourg) SA 5.125% 7/15/23 (c) | 738 | 747 | |
Silgan Holdings, Inc. 4.75% 3/15/25 | 1,062 | 1,083 | |
Trivium Packaging Finance BV: | |||
5.5% 8/15/26 (c) | 19,966 | 20,914 | |
8.5% 8/15/27 (c) | 6,645 | 7,111 | |
127,997 | |||
Diversified Financial Services - 2.7% | |||
Financial & Risk U.S. Holdings, Inc. 8.25% 11/15/26 (c) | 5,980 | 6,518 | |
Icahn Enterprises LP/Icahn Enterprises Finance Corp.: | |||
4.75% 9/15/24 | 15,905 | 16,177 | |
5.25% 5/15/27 | 42,212 | 43,681 | |
6.25% 5/15/26 | 29,071 | 30,161 | |
6.375% 12/15/25 | 19,248 | 19,729 | |
MSCI, Inc. 3.875% 2/15/31 (c) | 6,130 | 6,406 | |
Navient Corp.: | |||
7.25% 1/25/22 | 6,603 | 6,818 | |
7.25% 9/25/23 | 8,735 | 9,160 | |
Springleaf Finance Corp.: | |||
6.875% 3/15/25 | 8,214 | 9,035 | |
7.125% 3/15/26 | 15,263 | 16,925 | |
VMED O2 UK Financing I PLC 4.25% 1/31/31 (c) | 30,025 | 30,025 | |
194,635 | |||
Diversified Media - 1.4% | |||
Nielsen Co. SARL (Luxembourg) 5% 2/1/25 (c) | 47,417 | 48,707 | |
Nielsen Finance LLC/Nielsen Finance Co.: | |||
5% 4/15/22 (c) | 6,991 | 6,994 | |
5.625% 10/1/28 (c) | 12,480 | 12,917 | |
5.875% 10/1/30 (c) | 12,425 | 13,062 | |
Terrier Media Buyer, Inc. 8.875% 12/15/27 (c) | 14,680 | 15,007 | |
96,687 | |||
Energy - 11.9% | |||
Apache Corp.: | |||
5.1% 9/1/40 | 5,885 | 5,403 | |
7.375% 8/15/47 | 2,085 | 2,012 | |
Cheniere Energy Partners LP: | |||
5.25% 10/1/25 | 60,684 | 61,776 | |
5.625% 10/1/26 | 30,336 | 31,094 | |
Cheniere Energy, Inc. 4.625% 10/15/28 (c) | 14,475 | 14,945 | |
Citgo Petroleum Corp.: | |||
6.25% 8/15/22 (c) | 19,057 | 17,866 | |
7% 6/15/25 (c) | 14,395 | 13,351 | |
Comstock Resources, Inc.: | |||
9.75% 8/15/26 | 10,000 | 10,535 | |
9.75% 8/15/26 | 8,760 | 9,231 | |
Crestwood Midstream Partners LP/Crestwood Midstream Finance Corp.: | |||
5.625% 5/1/27 (c) | 57,991 | 50,815 | |
5.75% 4/1/25 | 46,201 | 41,639 | |
6.25% 4/1/23 | 21,854 | 21,183 | |
CVR Energy, Inc.: | |||
5.25% 2/15/25 (c) | 16,895 | 12,312 | |
5.75% 2/15/28 (c) | 21,059 | 14,373 | |
DCP Midstream Operating LP 5.375% 7/15/25 | 16,932 | 17,779 | |
Duke Energy Field Services 8.125% 8/16/30 | 6,873 | 7,835 | |
Endeavor Energy Resources LP/EER Finance, Inc.: | |||
5.5% 1/30/26 (c) | 975 | 980 | |
5.75% 1/30/28 (c) | 12,140 | 12,595 | |
6.625% 7/15/25 (c) | 2,330 | 2,417 | |
EQM Midstream Partners LP 6.5% 7/1/27 (c) | 6,745 | 7,074 | |
Global Partners LP/GLP Finance Corp. 6.875% 1/15/29 (c) | 14,510 | 14,953 | |
Hess Midstream Partners LP: | |||
5.125% 6/15/28 (c) | 16,860 | 16,776 | |
5.625% 2/15/26 (c) | 25,030 | 25,030 | |
Hilcorp Energy I LP/Hilcorp Finance Co. 5% 12/1/24 (c) | 11,492 | 10,630 | |
Holly Energy Partners LP/Holly Energy Finance Corp. 5% 2/1/28 (c) | 14,960 | 13,988 | |
Jonah Energy LLC 7.25% 10/15/25 (c) | 23,715 | 771 | |
MEG Energy Corp. 7.125% 2/1/27 (c) | 5,748 | 5,172 | |
New Fortress Energy LLC 6.75% 9/15/25 (c) | 21,400 | 22,067 | |
Occidental Petroleum Corp.: | |||
2.9% 8/15/24 | 4,620 | 3,846 | |
3% 2/15/27 | 4,535 | 3,424 | |
3.4% 4/15/26 | 6,655 | 5,205 | |
3.5% 8/15/29 | 20,205 | 14,577 | |
4.2% 3/15/48 | 5,165 | 3,419 | |
4.3% 8/15/39 | 3,290 | 2,237 | |
4.4% 4/15/46 | 4,740 | 3,186 | |
4.4% 8/15/49 | 2,540 | 1,702 | |
5.55% 3/15/26 | 16,090 | 13,998 | |
6.2% 3/15/40 | 3,200 | 2,598 | |
6.45% 9/15/36 | 21,705 | 17,581 | |
6.625% 9/1/30 | 10,315 | 9,039 | |
7.5% 5/1/31 | 26,965 | 24,606 | |
7.875% 9/15/31 | 2,230 | 2,029 | |
8.875% 7/15/30 | 9,235 | 9,039 | |
PBF Holding Co. LLC/PBF Finance Corp.: | |||
7.25% 6/15/25 | 23,277 | 9,733 | |
9.25% 5/15/25 (c) | 19,940 | 17,697 | |
PBF Logistics LP/PBF Logistics Finance, Inc. 6.875% 5/15/23 | 4,650 | 3,650 | |
Rattler Midstream LP 5.625% 7/15/25 (c) | 20,100 | 20,653 | |
Sanchez Energy Corp. 7.25% 2/15/23 (b)(c)(g) | 28,768 | 0 | |
Sunoco LP/Sunoco Finance Corp.: | |||
4.875% 1/15/23 | 7,093 | 7,146 | |
5.5% 2/15/26 | 7,447 | 7,461 | |
5.875% 3/15/28 | 9,770 | 10,136 | |
6% 4/15/27 | 350 | 362 | |
Targa Resources Partners LP/Targa Resources Partners Finance Corp.: | |||
4.25% 11/15/23 | 5,987 | 5,986 | |
4.875% 2/1/31 (c) | 47,385 | 46,243 | |
5% 1/15/28 | 2,000 | 1,975 | |
5.125% 2/1/25 | 460 | 461 | |
5.375% 2/1/27 | 460 | 462 | |
5.5% 3/1/30 (c) | 8,850 | 8,903 | |
5.875% 4/15/26 | 15,924 | 16,242 | |
6.5% 7/15/27 | 4,800 | 5,028 | |
6.875% 1/15/29 | 15,000 | 16,088 | |
U.S.A. Compression Partners LP 6.875% 9/1/27 | 3,813 | 3,833 | |
Viper Energy Partners LP 5.375% 11/1/27 (c) | 20,983 | 21,417 | |
Weatherford International Ltd. 11% 12/1/24 (c) | 9,627 | 5,696 | |
Western Gas Partners LP: | |||
3.95% 6/1/25 | 8,680 | 8,056 | |
4% 7/1/22 | 2,540 | 2,540 | |
4.1% 2/1/25 | 10,035 | 9,454 | |
4.65% 7/1/26 | 3,750 | 3,600 | |
5.05% 2/1/30 | 27,885 | 26,454 | |
5.3% 3/1/48 | 4,850 | 3,904 | |
6.25% 2/1/50 | 1,700 | 1,562 | |
845,830 | |||
Environmental - 0.6% | |||
Darling Ingredients, Inc. 5.25% 4/15/27 (c) | 12,680 | 13,441 | |
LBC Tank Terminals Holding Netherlands BV 6.875% 5/15/23 (c) | 32,658 | 32,576 | |
46,017 | |||
Food/Beverage/Tobacco - 4.7% | |||
Chobani LLC/Finance Corp., Inc. 7.5% 4/15/25 (c) | 1,018 | 1,045 | |
Cott Holdings, Inc. 5.5% 4/1/25 (c) | 8,092 | 8,355 | |
H.J. Heinz Co. 5% 7/15/35 | 13,770 | 15,845 | |
JBS U.S.A. LLC/JBS U.S.A. Finance, Inc.: | |||
5.75% 6/15/25 (c) | 24,735 | 25,428 | |
6.75% 2/15/28 (c) | 44,153 | 48,561 | |
JBS U.S.A. Lux SA / JBS Food Co.: | |||
5.5% 1/15/30 (c) | 24,176 | 26,291 | |
6.5% 4/15/29 (c) | 50,188 | 56,336 | |
Kraft Foods Group, Inc. 5% 6/4/42 | 15,000 | 16,431 | |
Performance Food Group, Inc.: | |||
5.5% 10/15/27 (c) | 11,850 | 12,146 | |
6.875% 5/1/25 (c) | 13,300 | 14,065 | |
Post Holdings, Inc.: | |||
4.625% 4/15/30 (c) | 19,472 | 19,983 | |
5% 8/15/26 (c) | 12,708 | 13,178 | |
5.5% 12/15/29 (c) | 29,078 | 31,368 | |
5.625% 1/15/28 (c) | 11,750 | 12,396 | |
5.75% 3/1/27 (c) | 4,510 | 4,725 | |
TreeHouse Foods, Inc. 4% 9/1/28 | 9,915 | 9,927 | |
U.S. Foods, Inc.: | |||
5.875% 6/15/24 (c) | 4,215 | 4,199 | |
6.25% 4/15/25 (c) | 13,720 | 14,337 | |
334,616 | |||
Gaming - 4.8% | |||
Boyd Gaming Corp.: | |||
4.75% 12/1/27 | 5,860 | 5,699 | |
6% 8/15/26 | 8,224 | 8,427 | |
6.375% 4/1/26 | 14,929 | 15,490 | |
Caesars Entertainment, Inc.: | |||
6.25% 7/1/25 (c) | 20,155 | 20,694 | |
8.125% 7/1/27 (c) | 9,850 | 10,280 | |
Caesars Resort Collection LLC 5.25% 10/15/25 (c) | 45,745 | 43,509 | |
GLP Capital LP/GLP Financing II, Inc.: | |||
5.25% 6/1/25 | 12,203 | 13,332 | |
5.375% 4/15/26 | 999 | 1,110 | |
Golden Entertainment, Inc. 7.625% 4/15/26 (c) | 25,220 | 25,220 | |
Golden Nugget, Inc. 6.75% 10/15/24 (c) | 24,311 | 20,586 | |
MCE Finance Ltd.: | |||
4.875% 6/6/25 (c) | 7,170 | 7,205 | |
5.375% 12/4/29 (c) | 5,605 | 5,402 | |
5.75% 7/21/28 (c) | 8,135 | 8,114 | |
MGM Growth Properties Operating Partnership LP: | |||
4.5% 9/1/26 | 22,885 | 23,457 | |
4.5% 1/15/28 | 1,429 | 1,450 | |
4.625% 6/15/25 (c) | 3,135 | 3,193 | |
5.625% 5/1/24 | 12,713 | 13,383 | |
5.75% 2/1/27 | 4,396 | 4,744 | |
MGM Mirage, Inc. 5.75% 6/15/25 | 5,090 | 5,289 | |
Scientific Games Corp. 5% 10/15/25 (c) | 15,639 | 15,698 | |
Stars Group Holdings BV 7% 7/15/26 (c) | 15,357 | 16,234 | |
Station Casinos LLC: | |||
4.5% 2/15/28 (c) | 4,160 | 3,942 | |
5% 10/1/25 (c) | 7,999 | 7,959 | |
VICI Properties, Inc.: | |||
3.5% 2/15/25 (c) | 6,530 | 6,514 | |
4.25% 12/1/26 (c) | 9,370 | 9,528 | |
4.625% 12/1/29 (c) | 12,665 | 13,159 | |
Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp. 5.25% 5/15/27 (c) | 11,576 | 10,703 | |
Wynn Macau Ltd.: | |||
4.875% 10/1/24 (c) | 11,043 | 10,767 | |
5.5% 10/1/27 (c) | 8,533 | 7,986 | |
339,074 | |||
Healthcare - 7.1% | |||
Avantor Funding, Inc. 4.625% 7/15/28 (c) | 18,360 | 19,025 | |
Avantor, Inc. 6% 10/1/24 (c) | 11,543 | 12,061 | |
Catalent Pharma Solutions 4.875% 1/15/26 (c) | 2,448 | 2,497 | |
Centene Corp.: | |||
3.375% 2/15/30 | 14,870 | 15,445 | |
4.25% 12/15/27 | 7,145 | 7,520 | |
4.625% 12/15/29 | 8,735 | 9,510 | |
5.375% 6/1/26 (c) | 4,580 | 4,819 | |
5.375% 8/15/26 (c) | 28,380 | 30,012 | |
Charles River Laboratories International, Inc.: | |||
4.25% 5/1/28 (c) | 1,503 | 1,571 | |
5.5% 4/1/26 (c) | 6,755 | 7,059 | |
Community Health Systems, Inc.: | |||
6.25% 3/31/23 | 4,297 | 4,259 | |
8% 3/15/26 (c) | 40,496 | 40,658 | |
8.625% 1/15/24 (c) | 14,103 | 14,315 | |
CTR Partnership LP/CareTrust Capital Corp. 5.25% 6/1/25 | 8,669 | 8,929 | |
DaVita HealthCare Partners, Inc. 4.625% 6/1/30 (c) | 25,700 | 26,141 | |
HCA Holdings, Inc.: | |||
3.5% 9/1/30 | 13,625 | 13,916 | |
5.625% 9/1/28 | 13,625 | 15,859 | |
5.875% 5/1/23 | 12,331 | 13,379 | |
Hologic, Inc.: | |||
3.25% 2/15/29 (c) | 14,085 | 14,155 | |
4.625% 2/1/28 (c) | 259 | 271 | |
IMS Health, Inc. 5% 10/15/26 (c) | 3,785 | 3,923 | |
Radiology Partners, Inc. 9.25% 2/1/28 (c) | 11,900 | 12,685 | |
Teleflex, Inc.: | |||
4.25% 6/1/28 (c) | 3,015 | 3,151 | |
4.875% 6/1/26 | 11,052 | 11,494 | |
Tenet Healthcare Corp.: | |||
4.625% 7/15/24 | 16,499 | 16,778 | |
4.625% 6/15/28 (c) | 3,815 | 3,870 | |
4.875% 1/1/26 (c) | 8,160 | 8,278 | |
5.125% 5/1/25 | 31,738 | 31,411 | |
6.125% 10/1/28 (c) | 19,335 | 18,779 | |
6.25% 2/1/27 (c) | 13,954 | 14,489 | |
6.75% 6/15/23 | 19,086 | 20,127 | |
7% 8/1/25 | 26,420 | 27,014 | |
U.S. Renal Care, Inc. 10.625% 7/15/27 (c) | 7,719 | 8,221 | |
Valeant Pharmaceuticals International, Inc.: | |||
5.5% 11/1/25 (c) | 12,649 | 12,994 | |
5.875% 5/15/23 (c) | 289 | 288 | |
6.125% 4/15/25 (c) | 22,023 | 22,640 | |
7% 3/15/24 (c) | 6,700 | 6,943 | |
8.5% 1/31/27 (c) | 4,269 | 4,668 | |
9% 12/15/25 (c) | 6,339 | 6,927 | |
9.25% 4/1/26 (c) | 10,250 | 11,301 | |
Vizient, Inc. 6.25% 5/15/27 (c) | 1,190 | 1,258 | |
508,640 | |||
Homebuilders/Real Estate - 0.8% | |||
Howard Hughes Corp. 5.375% 3/15/25 (c) | 20,858 | 20,884 | |
MPT Operating Partnership LP/MPT Finance Corp.: | |||
5.25% 8/1/26 | 8,245 | 8,554 | |
5.5% 5/1/24 | 9,237 | 9,352 | |
6.375% 3/1/24 | 4,606 | 4,715 | |
Starwood Property Trust, Inc.: | |||
4.75% 3/15/25 | 10,069 | 9,767 | |
5% 12/15/21 | 4,592 | 4,569 | |
57,841 | |||
Hotels - 0.4% | |||
Hilton Domestic Operating Co., Inc.: | |||
4.25% 9/1/24 | 11,034 | 10,973 | |
5.125% 5/1/26 | 13,631 | 13,801 | |
Hilton Worldwide Finance LLC/Hilton Worldwide Finance Corp. 4.875% 4/1/27 | 573 | 580 | |
Wyndham Hotels & Resorts, Inc. 5.375% 4/15/26 (c) | 1,797 | 1,819 | |
27,173 | |||
Insurance - 2.0% | |||
Alliant Holdings Intermediate LLC: | |||
4.25% 10/15/27 (c) | 2,025 | 2,010 | |
6.75% 10/15/27 (c) | 48,033 | 50,435 | |
AmWINS Group, Inc. 7.75% 7/1/26 (c) | 39,688 | 42,367 | |
HUB International Ltd. 7% 5/1/26 (c) | 12,000 | 12,300 | |
USI, Inc. 6.875% 5/1/25 (c) | 31,848 | 32,405 | |
139,517 | |||
Metals/Mining - 1.0% | |||
First Quantum Minerals Ltd.: | |||
6.5% 3/1/24 (c) | 13,569 | 13,467 | |
7.25% 4/1/23 (c) | 19,939 | 20,045 | |
FMG Resources (August 2006) Pty Ltd. 4.5% 9/15/27 (c) | 195 | 209 | |
Freeport-McMoRan, Inc.: | |||
3.55% 3/1/22 | 736 | 747 | |
3.875% 3/15/23 | 10,764 | 11,119 | |
Nufarm Australia Ltd. 5.75% 4/30/26 (c) | 24,883 | 25,132 | |
70,719 | |||
Restaurants - 1.0% | |||
1011778 BC Unlimited Liability Co./New Red Finance, Inc.: | |||
4% 10/15/30 (c) | 21,045 | 20,940 | |
4.25% 5/15/24 (c) | 12,673 | 12,933 | |
5% 10/15/25 (c) | 9,436 | 9,673 | |
5.75% 4/15/25 (c) | 3,930 | 4,187 | |
Yum! Brands, Inc. 7.75% 4/1/25 (c) | 19,915 | 21,876 | |
69,609 | |||
Services - 7.1% | |||
AECOM: | |||
5.125% 3/15/27 | 26,360 | 28,830 | |
5.875% 10/15/24 | 14,724 | 16,196 | |
APX Group, Inc. 6.75% 2/15/27 (c) | 12,960 | 13,511 | |
Aramark Services, Inc.: | |||
4.75% 6/1/26 | 13,365 | 13,281 | |
5% 4/1/25 (c) | 6,344 | 6,440 | |
5% 2/1/28 (c) | 74,495 | 75,155 | |
6.375% 5/1/25 (c) | 67,565 | 70,868 | |
Ascend Learning LLC: | |||
6.875% 8/1/25 (c) | 17,426 | 17,972 | |
6.875% 8/1/25 (c) | 9,095 | 9,243 | |
ASGN, Inc. 4.625% 5/15/28 (c) | 6,430 | 6,612 | |
Booz Allen Hamilton, Inc. 3.875% 9/1/28 (c) | 18,510 | 18,788 | |
Brand Energy & Infrastructure Services, Inc. 8.5% 7/15/25 (c) | 39,343 | 36,971 | |
CoreCivic, Inc.: | |||
4.625% 5/1/23 | 2,448 | 2,240 | |
5% 10/15/22 | 11,751 | 11,252 | |
Fair Isaac Corp. 5.25% 5/15/26 (c) | 17,854 | 19,818 | |
Frontdoor, Inc. 6.75% 8/15/26 (c) | 4,078 | 4,353 | |
Gartner, Inc. 3.75% 10/1/30 (c) | 6,630 | 6,780 | |
GEMS MENASA Cayman Ltd. 7.125% 7/31/26 (c) | 36,499 | 36,145 | |
Laureate Education, Inc. 8.25% 5/1/25 (c) | 19,600 | 20,878 | |
Service Corp. International 5.125% 6/1/29 | 12,173 | 13,303 | |
Sotheby's 7.375% 10/15/27 (c) | 23,700 | 24,272 | |
Tempo Acquisition LLC: | |||
5.75% 6/1/25 (c) | 7,405 | 7,757 | |
6.75% 6/1/25 (c) | 32,342 | 32,819 | |
The GEO Group, Inc.: | |||
5.875% 10/15/24 | 3,649 | 2,527 | |
6% 4/15/26 | 13,385 | 8,696 | |
504,707 | |||
Super Retail - 0.8% | |||
EG Global Finance PLC: | |||
6.75% 2/7/25 (c) | 15,888 | 15,570 | |
8.5% 10/30/25 (c) | 19,353 | 19,798 | |
The William Carter Co. 5.625% 3/15/27 (c) | 7,749 | 8,132 | |
Wolverine World Wide, Inc. 6.375% 5/15/25 (c) | 12,945 | 13,786 | |
57,286 | |||
Technology - 4.0% | |||
Banff Merger Sub, Inc. 9.75% 9/1/26 (c) | 6,235 | 6,554 | |
Black Knight InfoServ LLC 3.625% 9/1/28 (c) | 16,470 | 16,676 | |
Boxer Parent Co., Inc. 7.125% 10/2/25 (c) | 4,580 | 4,910 | |
Camelot Finance SA 4.5% 11/1/26 (c) | 12,670 | 13,177 | |
CDK Global, Inc.: | |||
4.875% 6/1/27 | 700 | 725 | |
5.25% 5/15/29 (c) | 10,200 | 10,942 | |
5.875% 6/15/26 | 8,821 | 9,185 | |
Entegris, Inc. 4.375% 4/15/28 (c) | 9,725 | 10,114 | |
Gartner, Inc. 4.5% 7/1/28 (c) | 8,790 | 9,176 | |
Match Group Holdings II LLC 4.125% 8/1/30 (c) | 3,610 | 3,687 | |
Northwest Fiber LLC/Northwest Fiber Finance Sub, Inc. 10.75% 6/1/28 (c) | 22,030 | 24,894 | |
Nortonlifelock, Inc. 5% 4/15/25 (c) | 30,251 | 30,809 | |
Nuance Communications, Inc. 5.625% 12/15/26 | 14,955 | 15,703 | |
ON Semiconductor Corp. 3.875% 9/1/28 (c) | 7,205 | 7,331 | |
Open Text Holdings, Inc. 4.125% 2/15/30 (c) | 17,480 | 18,136 | |
Rackspace Hosting, Inc. 8.625% 11/15/24 (c) | 49,789 | 51,843 | |
Sensata Technologies BV 5% 10/1/25 (c) | 2,966 | 3,238 | |
Sensata Technologies, Inc. 3.75% 2/15/31 (c) | 2,000 | 1,980 | |
SS&C Technologies, Inc. 5.5% 9/30/27 (c) | 17,716 | 18,829 | |
TTM Technologies, Inc. 5.625% 10/1/25 (c) | 28,741 | 29,531 | |
287,440 | |||
Telecommunications - 14.3% | |||
Altice Financing SA: | |||
5% 1/15/28 (c) | 18,495 | 17,940 | |
7.5% 5/15/26 (c) | 37,330 | 38,963 | |
Altice France Holding SA 6% 2/15/28 (c) | 22,470 | 21,552 | |
C&W Senior Financing Designated Activity Co.: | |||
6.875% 9/15/27 (c) | 102,057 | 107,466 | |
7.5% 10/15/26 (c) | 35,342 | 37,215 | |
Cablevision Lightpath LLC: | |||
3.875% 9/15/27 (c) | 3,945 | 3,915 | |
5.625% 9/15/28 (c) | 2,520 | 2,545 | |
Century Telephone Enterprises, Inc. 6.875% 1/15/28 | 845 | 938 | |
CenturyLink, Inc.: | |||
5.125% 12/15/26 (c) | 53,700 | 54,908 | |
5.625% 4/1/25 | 9,605 | 10,085 | |
Cogent Communications Group, Inc. 5.375% 3/1/22 (c) | 3,779 | 3,845 | |
Communications Sales & Leasing, Inc. 8.25% 10/15/23 | 13,010 | 12,815 | |
Frontier Communications Corp. 5.875% 10/15/27 (c) | 28,075 | 28,601 | |
Intelsat Jackson Holdings SA 8% 2/15/24 (c) | 77,335 | 78,495 | |
Level 3 Financing, Inc.: | |||
3.625% 1/15/29 (c) | 9,250 | 8,949 | |
4.25% 7/1/28 (c) | 24,755 | 24,879 | |
4.625% 9/15/27 (c) | 24,675 | 25,169 | |
Millicom International Cellular SA: | |||
4.5% 4/27/31 (c) | 1,020 | 1,035 | |
5.125% 1/15/28 (c) | 11,300 | 11,858 | |
6.25% 3/25/29 (c) | 4,195 | 4,638 | |
6.625% 10/15/26 (c) | 34,393 | 37,144 | |
Sable International Finance Ltd. 5.75% 9/7/27 (c) | 11,453 | 12,140 | |
SFR Group SA: | |||
5.125% 1/15/29 (c) | 29,280 | 29,234 | |
5.5% 1/15/28 (c) | 28,725 | 29,102 | |
7.375% 5/1/26 (c) | 38,741 | 40,434 | |
8.125% 2/1/27 (c) | 52,833 | 57,456 | |
Sprint Capital Corp.: | |||
6.875% 11/15/28 | 27,368 | 34,586 | |
8.75% 3/15/32 | 15,205 | 22,750 | |
Sprint Communications, Inc. 6% 11/15/22 | 12,834 | 13,737 | |
Sprint Corp.: | |||
7.125% 6/15/24 | 12,655 | 14,556 | |
7.875% 9/15/23 | 49,855 | 56,897 | |
T-Mobile U.S.A., Inc.: | |||
3.75% 4/15/27 (c) | 12,185 | 13,579 | |
3.875% 4/15/30 (c) | 12,185 | 13,688 | |
4.5% 2/1/26 | 1,493 | 1,530 | |
5.375% 4/15/27 | 3,000 | 3,203 | |
Telecom Italia Capital SA 6% 9/30/34 | 4,978 | 5,792 | |
Telecom Italia SpA 5.303% 5/30/24 (c) | 12,228 | 13,230 | |
Uniti Group, Inc.: | |||
7.125% 12/15/24 (c) | 26,290 | 25,137 | |
7.875% 2/15/25 (c) | 60,645 | 64,284 | |
Zayo Group Holdings, Inc.: | |||
4% 3/1/27 (c) | 8,315 | 8,161 | |
6.125% 3/1/28 (c) | 24,560 | 24,775 | |
1,017,226 | |||
Transportation Ex Air/Rail - 0.2% | |||
XPO Logistics, Inc. 6.25% 5/1/25 (c) | 16,290 | 17,313 | |
Utilities - 5.4% | |||
Clearway Energy Operating LLC: | |||
4.75% 3/15/28 (c) | 3,020 | 3,175 | |
5% 9/15/26 | 3,515 | 3,633 | |
5.75% 10/15/25 | 1,180 | 1,236 | |
DCP Midstream Operating LP: | |||
5.125% 5/15/29 | 36,833 | 36,626 | |
5.625% 7/15/27 | 13,745 | 14,245 | |
Global Partners LP/GLP Finance Corp. 7% 8/1/27 | 16,591 | 17,079 | |
InterGen NV 7% 6/30/23 (c) | 42,782 | 40,429 | |
NextEra Energy Partners LP: | |||
4.25% 9/15/24 (c) | 13,775 | 14,429 | |
4.5% 9/15/27 (c) | 357 | 390 | |
NRG Energy, Inc.: | |||
5.25% 6/15/29 (c) | 10,490 | 11,369 | |
5.75% 1/15/28 | 8,281 | 8,907 | |
6.625% 1/15/27 | 1,757 | 1,849 | |
7.25% 5/15/26 | 979 | 1,035 | |
NSG Holdings II LLC/NSG Holdings, Inc. 7.75% 12/15/25 (c) | 17,295 | 18,333 | |
Pattern Energy Operations LP 4.5% 8/15/28 (c) | 5,075 | 5,291 | |
PG&E Corp. 5.25% 7/1/30 | 34,070 | 34,070 | |
Pike Corp. 5.5% 9/1/28 (c) | 23,079 | 23,603 | |
Talen Energy Supply LLC 10.5% 1/15/26 (c) | 5,816 | 4,028 | |
TerraForm Power Operating LLC: | |||
4.25% 1/31/23 (c) | 7,171 | 7,296 | |
4.75% 1/15/30 (c) | 7,653 | 8,212 | |
5% 1/31/28 (c) | 12,590 | 13,822 | |
The AES Corp.: | |||
4.5% 3/15/23 | 919 | 924 | |
5.125% 9/1/27 | 2,599 | 2,788 | |
6% 5/15/26 | 9,707 | 10,171 | |
Vistra Operations Co. LLC: | |||
5% 7/31/27 (c) | 49,576 | 51,807 | |
5.5% 9/1/26 (c) | 21,678 | 22,437 | |
5.625% 2/15/27 (c) | 26,245 | 27,360 | |
384,544 | |||
TOTAL NONCONVERTIBLE BONDS | 6,619,909 | ||
TOTAL CORPORATE BONDS | |||
(Cost $6,648,194) | 6,661,247 | ||
Shares | Value (000s) | ||
Common Stocks - 1.0% | |||
Automotive & Auto Parts - 0.0% | |||
Motors Liquidation Co. GUC Trust (h) | 1,502 | 2 | |
Energy - 0.4% | |||
California Resources Corp. (h) | 25,753 | 345 | |
California Resources Corp. (a) | 27,012 | 326 | |
California Resources Corp. warrants 10/27/24 (h) | 9,174 | 0 | |
Denbury, Inc. (h) | 1,317,818 | 21,863 | |
Forbes Energy Services Ltd. (h) | 47,062 | 4 | |
Sanchez Energy Corp. (b) | 147,579 | 3,800 | |
Weatherford International PLC (h) | 72,884 | 152 | |
TOTAL ENERGY | 26,490 | ||
Food & Drug Retail - 0.6% | |||
Southeastern Grocers, Inc. (b)(h) | 559,052 | 40,816 | |
Telecommunications - 0.0% | |||
Crown Castle International Corp. | 19,105 | 2,984 | |
CUI Acquisition Corp. Class E (b)(h) | 1 | 24 | |
TOTAL TELECOMMUNICATIONS | 3,008 | ||
TOTAL COMMON STOCKS | |||
(Cost $76,443) | 70,316 | ||
Principal Amount (000s) | Value (000s) | ||
Bank Loan Obligations - 1.8% | |||
Cable/Satellite TV - 0.3% | |||
WideOpenWest Finance LLC Tranche B, term loan 3 month U.S. LIBOR + 3.250% 4.25% 8/19/23 (e)(f)(i) | 20,073 | 19,630 | |
Energy - 0.0% | |||
Gavilan Resources LLC Tranche 2LN, term loan 3 month U.S. LIBOR + 6.000% 0% 3/1/24 (f)(g)(i) | 25,259 | 158 | |
Sanchez Energy Corp.: | |||
1LN, term loan 3 month U.S. LIBOR + 8.000% 0% 12/31/49 (b)(f)(g)(i) | 7,758 | 0 | |
term loan 3 month U.S. LIBOR + 0.000% 0% 12/31/49 (b)(f)(g)(i) | 3,310 | 0 | |
TOTAL ENERGY | 158 | ||
Gaming - 0.3% | |||
Golden Entertainment, Inc. Tranche B, term loan 3 month U.S. LIBOR + 3.000% 3.75% 10/20/24 (e)(f)(i) | 4,970 | 4,790 | |
Golden Nugget, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.500% 3.25% 10/4/23 (e)(f)(i) | 18,593 | 16,338 | |
TOTAL GAMING | 21,128 | ||
Insurance - 0.2% | |||
HUB International Ltd. Tranche B, term loan 3 month U.S. LIBOR + 3.000% 3.2147% 4/25/25 (e)(f)(i) | 10,708 | 10,283 | |
Services - 0.2% | |||
Almonde, Inc.: | |||
Tranche 2LN, term loan 3 month U.S. LIBOR + 7.250% 8.25% 6/13/25 (e)(f)(i) | 85 | 83 | |
Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.500% 4.5% 6/13/24 (e)(f)(i) | 16,163 | 15,229 | |
Brand Energy & Infrastructure Services, Inc. Tranche B, term loan 3 month U.S. LIBOR + 4.250% 5.25% 6/21/24 (e)(f)(i) | 2,143 | 1,990 | |
TOTAL SERVICES | 17,302 | ||
Technology - 0.4% | |||
Ultimate Software Group, Inc. 1LN, term loan 3 month U.S. LIBOR + 4.000% 4.75% 5/3/26 (e)(f)(i) | 28,205 | 28,011 | |
Telecommunications - 0.4% | |||
Intelsat Jackson Holdings SA: | |||
Tranche B, term loan 3 month U.S. LIBOR + 3.750% 8% 11/27/23 (e)(f)(i) | 16,730 | 16,790 | |
Tranche B-4, term loan 3 month U.S. LIBOR + 5.500% 8.75% 1/2/24 (e)(f)(i) | 1,485 | 1,491 | |
Tranche DD 1LN, term loan 3 month U.S. LIBOR + 5.500% 5.05% 7/13/22 (e)(f)(i)(j) | 11,361 | 11,531 | |
TOTAL TELECOMMUNICATIONS | 29,812 | ||
TOTAL BANK LOAN OBLIGATIONS | |||
(Cost $146,657) | 126,324 | ||
Preferred Securities - 0.0% | |||
Energy - 0.0% | |||
Summit Midstream Partners LP 9.5% (Cost $5,208)(e)(k) | 5,208 | 1,008 | |
Shares | Value (000s) | ||
Fixed-Income Funds - 1.9% | |||
iShares iBoxx $ High Yield Corporate Bond ETF | |||
(Cost $133,693) | 1,580,934 | 132,610 | |
Money Market Funds - 1.3% | |||
Fidelity Cash Central Fund 0.10% (l) | |||
(Cost $95,904) | 95,894,551 | 95,914 | |
TOTAL INVESTMENT IN SECURITIES - 99.7% | |||
(Cost $7,106,099) | 7,087,419 | ||
NET OTHER ASSETS (LIABILITIES) - 0.3% | 21,614 | ||
NET ASSETS - 100% | $7,109,033 |
Security Type Abbreviations
ETF – Exchange-Traded Fund
Values shown as $0 in the Schedule of Investments may reflect amounts less than $500.
Legend
(a) Restricted securities (including private placements) - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $3,058,000 or 0.0% of net assets.
(b) Level 3 security
(c) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $4,709,686,000 or 66.2% of net assets.
(d) Security or a portion of the security purchased on a delayed delivery or when-issued basis.
(e) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end.
(f) Coupon is indexed to a floating interest rate which may be multiplied by a specified factor and/or subject to caps or floors.
(g) Non-income producing - Security is in default.
(h) Non-income producing
(i) Remaining maturities of bank loan obligations may be less than the stated maturities shown as a result of contractual or optional prepayments by the borrower. Such prepayments cannot be predicted with certainty.
(j) Position or a portion of the position represents an unfunded loan commitment. At period end, the total principal amount and market value of unfunded commitments totaled $5,680,000 and $5,765,000 respectively.
(k) Security is perpetual in nature with no stated maturity date.
(l) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
Additional information on each restricted holding is as follows:
Security | Acquisition Date | Acquisition Cost (000s) |
California Resources Corp. | 10/27/20 | $174 |
Mesquite Energy, Inc. 15% 7/31/23 | 7/10/20 - 10/15/20 | $2,732 |
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 | $181 |
Total | $181 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable.
Investment Valuation
The following is a summary of the inputs used, as of October 31, 2020, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
(Amounts in thousands) | ||||
Investments in Securities: | ||||
Equities: | ||||
Communication Services | $24 | $-- | $-- | $24 |
Consumer Staples | 40,816 | -- | -- | 40,816 |
Energy | 26,490 | 22,364 | 326 | 3,800 |
Financials | 2 | 2 | -- | -- |
Real Estate | 2,984 | 2,984 | -- | -- |
Corporate Bonds | 6,661,247 | -- | 6,658,515 | 2,732 |
Bank Loan Obligations | 126,324 | -- | 126,324 | -- |
Preferred Securities | 1,008 | -- | 1,008 | -- |
Fixed-Income Funds | 132,610 | 132,610 | -- | -- |
Money Market Funds | 95,914 | 95,914 | -- | -- |
Total Investments in Securities: | $7,087,419 | $253,874 | $6,786,173 | $47,372 |
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
United States of America | 78.7% |
Luxembourg | 5.0% |
Canada | 2.8% |
Multi-National | 2.7% |
Netherlands | 2.5% |
Ireland | 2.3% |
France | 2.2% |
United Kingdom | 1.9% |
Cayman Islands | 1.3% |
Others (Individually Less Than 1%) | 0.6% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | October 31, 2020 (Unaudited) | |
Assets | ||
Investment in securities, at value — See accompanying schedule: Unaffiliated issuers (cost $7,010,195) | $6,991,505 | |
Fidelity Central Funds (cost $95,904) | 95,914 | |
Total Investment in Securities (cost $7,106,099) | $7,087,419 | |
Receivable for investments sold | 71,016 | |
Receivable for fund shares sold | 8,144 | |
Interest receivable | 102,318 | |
Distributions receivable from Fidelity Central Funds | 16 | |
Prepaid expenses | 10 | |
Total assets | 7,268,923 | |
Liabilities | ||
Payable for investments purchased | ||
Regular delivery | $129,517 | |
Delayed delivery | 16,213 | |
Payable for fund shares redeemed | 6,467 | |
Distributions payable | 3,616 | |
Accrued management fee | 3,137 | |
Distribution and service plan fees payable | 69 | |
Other affiliated payables | 800 | |
Other payables and accrued expenses | 71 | |
Total liabilities | 159,890 | |
Net Assets | $7,109,033 | |
Net Assets consist of: | ||
Paid in capital | $7,555,728 | |
Total accumulated earnings (loss) | (446,695) | |
Net Assets | $7,109,033 | |
Net Asset Value and Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($145,502 ÷ 17,349 shares)(a) | $8.39 | |
Maximum offering price per share (100/96.00 of $8.39) | $8.74 | |
Class M: | ||
Net Asset Value and redemption price per share ($40,099 ÷ 4,781 shares)(a) | $8.39 | |
Maximum offering price per share (100/96.00 of $8.39) | $8.74 | |
Class C: | ||
Net Asset Value and offering price per share ($35,233 ÷ 4,199 shares)(a) | $8.39 | |
Fidelity High Income Fund: | ||
Net Asset Value, offering price and redemption price per share ($4,066,408 ÷ 484,818 shares) | $8.39 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($2,580,152 ÷ 307,659 shares) | $8.39 | |
Class Z: | ||
Net Asset Value, offering price and redemption price per share ($241,639 ÷ 28,812 shares) | $8.39 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Amounts in thousands | Six months ended October 31, 2020 (Unaudited) | |
Investment Income | ||
Dividends | $1,431 | |
Interest | 160,431 | |
Income from Fidelity Central Funds | 181 | |
Total income | 162,043 | |
Expenses | ||
Management fee | $16,458 | |
Transfer agent fees | 3,674 | |
Distribution and service plan fees | 422 | |
Accounting fees and expenses | 606 | |
Custodian fees and expenses | 24 | |
Independent trustees' fees and expenses | 15 | |
Registration fees | 182 | |
Audit | 59 | |
Legal | 7 | |
Miscellaneous | 27 | |
Total expenses before reductions | 21,474 | |
Expense reductions | (23) | |
Total expenses after reductions | 21,451 | |
Net investment income (loss) | 140,592 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | (83,234) | |
Fidelity Central Funds | 4 | |
Total net realized gain (loss) | (83,230) | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 355,586 | |
Fidelity Central Funds | (20) | |
Total change in net unrealized appreciation (depreciation) | 355,566 | |
Net gain (loss) | 272,336 | |
Net increase (decrease) in net assets resulting from operations | $412,928 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Amounts in thousands | Six months ended October 31, 2020 (Unaudited) | Year ended April 30, 2020 |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $140,592 | $271,845 |
Net realized gain (loss) | (83,230) | (102,571) |
Change in net unrealized appreciation (depreciation) | 355,566 | (437,488) |
Net increase (decrease) in net assets resulting from operations | 412,928 | (268,214) |
Distributions to shareholders | (134,456) | (266,971) |
Share transactions - net increase (decrease) | 2,119,963 | 121,991 |
Total increase (decrease) in net assets | 2,398,435 | (413,194) |
Net Assets | ||
Beginning of period | 4,710,598 | 5,123,792 |
End of period | $7,109,033 | $4,710,598 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity High Income Fund Class A
Six months ended (Unaudited) October 31, | Years endedApril 30, | ||
2020 | 2020 | 2019 A | |
Selected Per–Share Data | |||
Net asset value, beginning of period | $7.93 | $8.83 | $8.56 |
Income from Investment Operations | |||
Net investment income (loss)B | .185 | .438 | .192 |
Net realized and unrealized gain (loss) | .453 | (.908) | .286 |
Total from investment operations | .638 | (.470) | .478 |
Distributions from net investment income | (.178) | (.430) | (.208) |
Total distributions | (.178) | (.430) | (.208) |
Net asset value, end of period | $8.39 | $7.93 | $8.83 |
Total ReturnC,D,E | 8.07% | (5.63)% | 5.68% |
Ratios to Average Net AssetsF,G | |||
Expenses before reductions | .97%H | .98% | .99%H |
Expenses net of fee waivers, if any | .97%H | .98% | .99%H |
Expenses net of all reductions | .97%H | .98% | .99%H |
Net investment income (loss) | 4.40%H | 5.04% | 5.60%H |
Supplemental Data | |||
Net assets, end of period (in millions) | $146 | $144 | $170 |
Portfolio turnover rateI | 43%H | 44%J | 62%K |
A For the period December 4, 2018 (commencement of sale of shares) to April 30, 2019.
B Calculated based on average shares outstanding during the period.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the sales charges.
F Fees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
H Annualized
I Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
J Portfolio turnover rate excludes securities received or delivered in-kind.
K The portfolio turnover rate does not include the assets acquired in the merger.
See accompanying notes which are an integral part of the financial statements.
Fidelity High Income Fund Class M
Six months ended (Unaudited) October 31, | Years endedApril 30, | ||
2020 | 2020 | 2019 A | |
Selected Per–Share Data | |||
Net asset value, beginning of period | $7.93 | $8.83 | $8.56 |
Income from Investment Operations | |||
Net investment income (loss)B | .185 | .438 | .191 |
Net realized and unrealized gain (loss) | .452 | (.909) | .286 |
Total from investment operations | .637 | (.471) | .477 |
Distributions from net investment income | (.177) | (.429) | (.207) |
Total distributions | (.177) | (.429) | (.207) |
Net asset value, end of period | $8.39 | $7.93 | $8.83 |
Total ReturnC,D,E | 8.06% | (5.64)% | 5.68% |
Ratios to Average Net AssetsF,G | |||
Expenses before reductions | .99%H | .99% | 1.01%H |
Expenses net of fee waivers, if any | .99%H | .99% | 1.01%H |
Expenses net of all reductions | .99%H | .99% | 1.01%H |
Net investment income (loss) | 4.38%H | 5.02% | 5.59%H |
Supplemental Data | |||
Net assets, end of period (in millions) | $40 | $40 | $50 |
Portfolio turnover rateI | 43%H | 44%J | 62%K |
A��For the period December 4, 2018 (commencement of sale of shares) to April 30, 2019.
B Calculated based on average shares outstanding during the period.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the sales charges.
F Fees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
H Annualized
I Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
J Portfolio turnover rate excludes securities received or delivered in-kind.
K The portfolio turnover rate does not include the assets acquired in the merger.
See accompanying notes which are an integral part of the financial statements.
Fidelity High Income Fund Class C
Six months ended (Unaudited) October 31, | Years endedApril 30, | ||
2020 | 2020 | 2019 A | |
Selected Per–Share Data | |||
Net asset value, beginning of period | $7.93 | $8.83 | $8.56 |
Income from Investment Operations | |||
Net investment income (loss)B | .153 | .372 | .166 |
Net realized and unrealized gain (loss) | .452 | (.909) | .285 |
Total from investment operations | .605 | (.537) | .451 |
Distributions from net investment income | (.145) | (.363) | (.181) |
Total distributions | (.145) | (.363) | (.181) |
Net asset value, end of period | $8.39 | $7.93 | $8.83 |
Total ReturnC,D,E | 7.65% | (6.35)% | 5.36% |
Ratios to Average Net AssetsF,G | |||
Expenses before reductions | 1.74%H | 1.75% | 1.77%H |
Expenses net of fee waivers, if any | 1.74%H | 1.75% | 1.77%H |
Expenses net of all reductions | 1.74%H | 1.75% | 1.77%H |
Net investment income (loss) | 3.63%H | 4.27% | 4.84%H |
Supplemental Data | |||
Net assets, end of period (in millions) | $35 | $36 | $52 |
Portfolio turnover rateI | 43%H | 44%J | 62%K |
A For the period December 4, 2018 (commencement of sale of shares) to April 30, 2019.
B Calculated based on average shares outstanding during the period.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the contingent deferred sales charge.
F Fees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
H Annualized
I Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
J Portfolio turnover rate excludes securities received or delivered in-kind.
K The portfolio turnover rate does not include the assets acquired in the merger.
See accompanying notes which are an integral part of the financial statements.
Fidelity High Income Fund
Six months ended (Unaudited) October 31, | Years endedApril 30, | |||||
2020 | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $7.93 | $8.83 | $8.83 | $8.94 | $8.31 | $9.04 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .197 | .464 | .493 | .513 | .501 | .503 |
Net realized and unrealized gain (loss) | .453 | (.909) | –B | (.137) | .597 | (.741) |
Total from investment operations | .650 | (.445) | .493 | .376 | 1.098 | (.238) |
Distributions from net investment income | (.190) | (.455) | (.493) | (.486) | (.469) | (.493) |
Total distributions | (.190) | (.455) | (.493) | (.486) | (.469) | (.493) |
Redemption fees added to paid in capitalA | – | – | – | –B | .001 | .001 |
Net asset value, end of period | $8.39 | $7.93 | $8.83 | $8.83 | $8.94 | $8.31 |
Total ReturnC,D | 8.22% | (5.35)% | 5.83% | 4.27% | 13.56% | (2.47)% |
Ratios to Average Net AssetsE,F | ||||||
Expenses before reductions | .69%G | .69% | .70% | .70% | .72% | .73% |
Expenses net of fee waivers, if any | .69%G | .69% | .70% | .70% | .72% | .73% |
Expenses net of all reductions | .69%G | .69% | .70% | .70% | .72% | .73% |
Net investment income (loss) | 4.68%G | 5.33% | 5.66% | 5.73% | 5.81% | 6.00% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $4,066 | $3,871 | $4,392 | $4,324 | $4,492 | $4,434 |
Portfolio turnover rateH | 43%G | 44%I | 62%J | 51% | 52% | 33% |
A Calculated based on average shares outstanding during the period.
B Amount represents less than $.0005 per share.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Fees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
G Annualized
H Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
I Portfolio turnover rate excludes securities received or delivered in-kind.
J The portfolio turnover rate does not include the assets acquired in the merger.
See accompanying notes which are an integral part of the financial statements.
Fidelity High Income Fund Class I
Six months ended (Unaudited) October 31, | Years endedApril 30, | ||
2020 | 2020 | 2019 A | |
Selected Per–Share Data | |||
Net asset value, beginning of period | $7.93 | $8.83 | $8.56 |
Income from Investment Operations | |||
Net investment income (loss)B | .194 | .458 | .199 |
Net realized and unrealized gain (loss) | .454 | (.907) | .286 |
Total from investment operations | .648 | (.449) | .485 |
Distributions from net investment income | (.188) | (.451) | (.215) |
Total distributions | (.188) | (.451) | (.215) |
Net asset value, end of period | $8.39 | $7.93 | $8.83 |
Total ReturnC,D | 8.21% | (5.40)% | 5.77% |
Ratios to Average Net AssetsE,F | |||
Expenses before reductions | .73%G | .74% | .78%G |
Expenses net of fee waivers, if any | .73%G | .74% | .78%G |
Expenses net of all reductions | .72%G | .74% | .78%G |
Net investment income (loss) | 4.65%G | 5.28% | 5.81%G |
Supplemental Data | |||
Net assets, end of period (in millions) | $2,580 | $558 | $448 |
Portfolio turnover rateH | 43%G | 44%I | 62%J |
A For the period December 4, 2018 (commencement of sale of shares) to April 30, 2019.
B Calculated based on average shares outstanding during the period.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Fees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
G Annualized
H Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
I Portfolio turnover rate excludes securities received or delivered in-kind.
J The portfolio turnover rate does not include the assets acquired in the merger.
See accompanying notes which are an integral part of the financial statements.
Fidelity High Income Fund Class Z
Six months ended (Unaudited) October 31, | Years endedApril 30, | ||
2020 | 2020 | 2019 A | |
Selected Per–Share Data | |||
Net asset value, beginning of period | $7.93 | $8.83 | $8.56 |
Income from Investment Operations | |||
Net investment income (loss)B | .197 | .464 | .201 |
Net realized and unrealized gain (loss) | .455 | (.904) | .289 |
Total from investment operations | .652 | (.440) | .490 |
Distributions from net investment income | (.192) | (.460) | (.220) |
Total distributions | (.192) | (.460) | (.220) |
Net asset value, end of period | $8.39 | $7.93 | $8.83 |
Total ReturnC,D | 8.26% | (5.30)% | 5.83% |
Ratios to Average Net AssetsE,F | |||
Expenses before reductions | .63%G | .63% | .64%G |
Expenses net of fee waivers, if any | .63%G | .63% | .64%G |
Expenses net of all reductions | .62%G | .63% | .63%G |
Net investment income (loss) | 4.75%G | 5.39% | 5.85%G |
Supplemental Data | |||
Net assets, end of period (in millions) | $242 | $61 | $13 |
Portfolio turnover rateH | 43%G | 44%I | 62%J |
A For the period December 4, 2018 (commencement of sale of shares) to April 30, 2019.
B Calculated based on average shares outstanding during the period.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Fees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
G Annualized
H Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
I Portfolio turnover rate excludes securities received or delivered in-kind.
J The portfolio turnover rate does not include the assets acquired in the merger.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended October 31, 2020
(Amounts in thousands except percentages)
1. Organization.
Fidelity High Income Fund (the Fund) is a fund of Fidelity Summer Street Trust (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class M, Class C, Fidelity High Income Fund, Class I and Class Z shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Class C shares will automatically convert to Class A shares after a holding period of ten years from the initial date of purchase, with certain exceptions.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date ranged from less than .005% to .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investment Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. Corporate bonds, bank loan obligations and preferred securities are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances. The Fund invests a significant portion of its assets in below investment grade securities. The value of these securities can be more volatile due to changes in the credit quality of the issuer and is sensitive to changes in economic, market and regulatory conditions.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
ETFs are valued at their last sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day but the exchange reports a closing bid level, ETFs are valued at the closing bid and would be categorized as Level 1 in the hierarchy. In the event there was no closing bid, ETFs may be valued by another method that the Board believes reflects fair value in accordance with the Board's fair value pricing policies and may be categorized as Level 2 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of October 31, 2020 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 include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Debt obligations may be placed on non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivables when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is reasonably assured.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction.
Distributions are declared and recorded daily and paid monthly from net investment income. Distributions from realized gains, if any, are declared and recorded on the ex-dividend date. Income and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to defaulted bonds, market discount, equity-debt classifications, certain conversion ratio adjustments, redemptions in kind, partnerships, capital loss carryforwards and losses deferred due to wash sales.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
Gross unrealized appreciation | $227,752 |
Gross unrealized depreciation | (230,563) |
Net unrealized appreciation (depreciation) | $(2,811) |
Tax cost | $7,090,230 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of prior fiscal period end and is subject to adjustment.
No expiration | |
Short-term | $(99,966) |
Long-term | (272,458) |
Total capital loss carryforward | $(372,424) |
Approximately $15,947 of the Fund's realized capital losses and $16,510 of the Fund's unrealized capital losses are subject to limitation. Due to this limitation, the Fund will only be permitted to use approximately $17,403 of those capital losses per year to offset capital gains. These realized and unrealized losses were acquired from Fidelity Advisor High Income Fund when it merged into the Fund in a prior period.
Delayed Delivery Transactions and When-Issued Securities. During the period, certain Funds transacted in securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. Securities purchased on a delayed delivery or when-issued basis are identified as such in the Schedule of Investments. Compensation for interest forgone in the purchase of a delayed delivery or when-issued debt security may be received. With respect to purchase commitments, each applicable Fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Payables and receivables associated with the purchases and sales of delayed delivery securities having the same coupon, settlement date and broker are offset. Delayed delivery or when-issued securities that have been purchased from and sold to different brokers are reflected as both payables and receivables in the Statement of Assets and Liabilities under the caption "Delayed delivery", as applicable. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.
Restricted Securities (including Private Placements). The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
Loans and Other Direct Debt Instruments. Direct debt instruments are interests in amounts owed to lenders by corporate or other borrowers. These instruments may be in the form of loans, trade claims or other receivables and may include standby financing commitments such as revolving credit facilities that obligate a fund to supply additional cash to the borrower on demand. Loans may be acquired through assignment, participation, or may be made directly to a borrower. Such instruments are presented in the Bank Loan Obligations section in the Schedule of Investments. Certain funds may also invest in unfunded loan commitments, which are contractual obligations for future funding. Information regarding unfunded commitments is included at the end of the Schedule of Investments, if applicable.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, are noted in the table below.
Purchases ($) | Sales ($) | |
Fidelity High Income Fund | 3,479,791 | 1,236,266 |
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company LLC (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the Fund's average net assets and an annualized group fee rate that averaged .10% during the period. The group fee rate is based upon the monthly average net assets of a group of registered investment companies with which the investment adviser has management contracts. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annualized management fee rate was .55% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Company LLC (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
Distribution Fee | Service Fee | Total Fees | Retained by FDC | |
Class A | -% | .25% | $184 | $3 |
Class M | -% | .25% | 51 | –(a) |
Class C | .75% | .25% | 187 | 10 |
$422 | $13 |
(a) Amount represents less than five hundred dollars.
Sales Load. FDC may receive a front-end sales charge of up to 4.00% for selling Class A shares and Class M shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class M and Class C redemptions. The deferred sales charges are 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class M shares.
For the period, sales charge amounts retained by FDC were as follows:
Retained by FDC | |
Class A | $4 |
Class M | 1 |
Class C(a) | 1 |
$6 |
(a) When Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company LLC (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund, except for Class Z. FIIOC receives an asset-based fee of Class Z's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
Amount | % of Class-Level Average Net Assets(a) | |
Class A | $112 | .15 |
Class M | 34 | .16 |
Class C | 33 | .18 |
Fidelity High Income Fund | 2,338 | .11 |
Class I | 1,125 | .15 |
Class Z | 32 | .05 |
$3,674 |
(a) Annualized
Accounting Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. For the period, the fees were equivalent to the following annualized rates:
% of Average Net Assets | |
Fidelity High Income Fund | .02 |
Interfund Trades. Funds may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
Prior Fiscal Year Affiliated Redemptions In-Kind. During the prior period, 12,631 shares of the Fund were redeemed in-kind for investments, including accrued interest, and cash with a value of $112,257. The Fund had a net realized gain of $4,389 on investments delivered through in-kind redemptions. The amount of the in-kind redemptions is included in share transactions in the accompanying Statement of Changes in Net Assets as well as the Notes to Financial Statements. The Fund recognized no gain or loss for federal income tax purposes.
6. Committed Line of Credit.
Certain Funds participate with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The participating funds have agreed to pay commitment fees on their pro-rata portion of the line of credit, which are reflected in Miscellaneous expenses on the Statement of Operations, and are as follows:
Amount | |
Fidelity High Income Fund | $6 |
During the period, there were no borrowings on this line of credit.
7. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled less than five hundred dollars for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses. During the period, custodian credits reduced the Fund's expenses by $18.
In addition, during the period the investment adviser or an affiliate reimbursed and/or waived a portion of fund-level operating expenses in the amount of $5.
8. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended October 31, 2020 | Year ended April 30, 2020 | |
Distributions to shareholders | ||
Class A | $3,143 | $8,150 |
Class M | 873 | 2,479 |
Class C | 649 | 1,908 |
Fidelity High Income Fund | 94,005 | 225,692 |
Class I | 32,863 | 26,243 |
Class Z | 2,923 | 2,499 |
Total | $134,456 | $266,971 |
9. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
Shares | Shares | Dollars | Dollars | |
Six months ended October 31, 2020 | Year ended April 30, 2020 | Six months ended October 31, 2020 | Year ended April 30, 2020 | |
Class A | ||||
Shares sold | 921 | 2,794 | $7,697 | $24,364 |
Reinvestment of distributions | 332 | 830 | 2,776 | 7,189 |
Shares redeemed | (2,045) | (4,721) | (17,022) | (40,339) |
Net increase (decrease) | (792) | (1,097) | $(6,549) | $(8,786) |
Class M | ||||
Shares sold | 189 | 929 | $1,562 | $8,069 |
Reinvestment of distributions | 95 | 265 | 796 | 2,295 |
Shares redeemed | (605) | (1,745) | (5,033) | (14,688) |
Net increase (decrease) | (321) | (551) | $(2,675) | $(4,324) |
Class C | ||||
Shares sold | 256 | 495 | $2,124 | $4,250 |
Reinvestment of distributions | 71 | 201 | 598 | 1,741 |
Shares redeemed | (694) | (2,003) | (5,803) | (17,129) |
Net increase (decrease) | (367) | (1,307) | $(3,081) | $(11,138) |
Fidelity High Income Fund | ||||
Shares sold | 61,682 | 164,477 | $508,086 | $1,383,939 |
Reinvestment of distributions | 9,200 | 20,940 | 76,999 | 181,398 |
Shares redeemed | (74,451) | (194,580)(a) | (621,992) | (1,639,874)(a) |
Net increase (decrease) | (3,569) | (9,163) | $(36,907) | $(74,537) |
Class I | ||||
Shares sold | 253,133 | 45,132 | $2,124,877 | $386,113 |
Reinvestment of distributions | 3,415 | 2,710 | 28,681 | 23,418 |
Shares redeemed | (19,296) | (28,148)(a) | (161,634) | (243,683)(a) |
Net increase (decrease) | 237,252 | 19,694 | $1,991,924 | $165,848 |
Class Z | ||||
Shares sold | 24,000 | 8,794 | $201,654 | $75,919 |
Reinvestment of distributions | 314 | 237 | 2,640 | 2,038 |
Shares redeemed | (3,207) | (2,742) | (27,043) | (23,029) |
Net increase (decrease) | 21,107 | 6,289 | $177,251 | $54,928 |
(a) Amount includes in-kind redemptions (see the Prior Fiscal Year Affiliated Redemptions In-Kind note for additional details).
10. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
11. Coronavirus (COVID-19) Pandemic.
An outbreak of COVID-19 first detected in China during December 2019 has since spread globally and was declared a pandemic by the World Health Organization during March 2020. Developments that disrupt global economies and financial markets, such as the COVID-19 pandemic, may magnify factors that affect the Fund's performance.
Shareholder Expense Example
As a shareholder, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or redemption proceeds, as applicable and (2) ongoing costs, which generally include management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in a fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (May 1, 2020 to October 31, 2020).
Actual Expenses
The first line of the accompanying table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class/Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. If any fund is a shareholder of any underlying mutual funds or exchange-traded funds (ETFs) (the Underlying Funds), such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses incurred presented in the table. These fees and expenses are not included in the annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. If any fund is a shareholder of any Underlying Funds, such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses as presented in the table. These fees and expenses are not included in the annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Annualized Expense Ratio-A | Beginning Account Value May 1, 2020 | Ending Account Value October 31, 2020 | Expenses Paid During Period-B May 1, 2020 to October 31, 2020 | |
Fidelity High Income Fund | ||||
Class A | .97% | |||
Actual | $1,000.00 | $1,080.70 | $5.09 | |
Hypothetical-C | $1,000.00 | $1,020.32 | $4.94 | |
Class M | .99% | |||
Actual | $1,000.00 | $1,080.60 | $5.19 | |
Hypothetical-C | $1,000.00 | $1,020.21 | $5.04 | |
Class C | 1.74% | |||
Actual | $1,000.00 | $1,076.50 | $9.11 | |
Hypothetical-C | $1,000.00 | $1,016.43 | $8.84 | |
Fidelity High Income Fund | .69% | |||
Actual | $1,000.00 | $1,082.20 | $3.62 | |
Hypothetical-C | $1,000.00 | $1,021.73 | $3.52 | |
Class I | .73% | |||
Actual | $1,000.00 | $1,082.10 | $3.83 | |
Hypothetical-C | $1,000.00 | $1,021.53�� | $3.72 | |
Class Z | .63% | |||
Actual | $1,000.00 | $1,082.60 | $3.31 | |
Hypothetical-C | $1,000.00 | $1,022.03 | $3.21 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/ 365 (to reflect the one-half year period). The fees and expenses of any Underlying Funds are not included in each annualized expense ratio.
C 5% return per year before expenses
Proxy Voting Results
A special meeting of shareholders was held on June 9, 2020. The results of votes taken among shareholders on the proposals before them are reported below. Each vote reported represents one dollar of net asset value held on the record date for the meeting.
PROPOSAL 1
To elect a Board of Trustees.
# of Votes | % of Votes | |
Dennis J. Dirks | ||
Affirmative | 16,477,844,543.945 | 94.954 |
Withheld | 875,616,757.045 | 5.046 |
TOTAL | 17,353,461,300.990 | 100.000 |
Donald F. Donahue | ||
Affirmative | 16,475,304,981.550 | 94.940 |
Withheld | 878,156,319.440 | 5.060 |
TOTAL | 17,353,461,300.990 | 100.000 |
Bettina Doulton | ||
Affirmative | 16,570,440,321.103 | 95.488 |
Withheld | 783,020,979.887 | 4.512 |
TOTAL | 17,353,461,300.990 | 100.000 |
Vicki L. Fuller | ||
Affirmative | 16,590,910,486.905 | 95.606 |
Withheld | 762,550,814.085 | 4.394 |
TOTAL | 17,353,461,300.990 | 100.00 |
Patricia L. Kampling | ||
Affirmative | 16,469,872,791.586 | 94.908 |
Withheld | 883,588,509.404 | 5.092 |
TOTAL | 17,353,461,300.990 | 100.000 |
Alan J. Lacy | ||
Affirmative | 16,344,655,183.636 | 94.187 |
Withheld | 1,008,806,117.354 | 5.813 |
TOTAL | 17,353,461,300.990 | 100.000 |
Ned C. Lautenbach | ||
Affirmative | 15,532,663,704.227 | 89.508 |
Withheld | 1,820,797,596.763 | 10.492 |
TOTAL | 17,353,461,300.990 | 100.000 |
Robert A. Lawrence | ||
Affirmative | 16,389,821,876.677 | 94.447 |
Withheld | 963,639,424.313 | 5.553 |
TOTAL | 17,353,461,300.990 | 100.000 |
Joseph Mauriello | ||
Affirmative | 16,363,427,626.626 | 94.295 |
Withheld | 990,033,674.365 | 5.705 |
TOTAL | 17,353,461,300.990 | 100.000 |
Cornelia M. Small | ||
Affirmative | 16,405,902,888.605 | 94.540 |
Withheld | 947,558,412.386 | 5.460 |
TOTAL | 17,353,461,300.990 | 100.000 |
Garnett A. Smith | ||
Affirmative | 16,371,912,270.945 | 94.344 |
Withheld | 981,549,030.045 | 5.656 |
TOTAL | 17,353,461,300.990 | 100.000 |
David M. Thomas | ||
Affirmative | 16,365,966,852.048 | 94.310 |
Withheld | 987,494,448.942 | 5.690 |
TOTAL | 17,353,461,300.990 | 100.000 |
Susan Tomasky | ||
Affirmative | 16,483,922,579.861 | 94.989 |
Withheld | 869,538,721.129 | 5.011 |
TOTAL | 17,353,461,300.990 | 100.000 |
Michael E. Wiley | ||
Affirmative | 16,379,083,262.890 | 94.385 |
Withheld | 974,378,038.101 | 5.615 |
TOTAL | 17,353,461,300.990 | 100.000 |
PROPOSAL 2
To convert a fundamental investment policy to a non-fundamental investment policy.
# of Votes | % of Votes | |
Affirmative | 1,938,025,834.700 | 66.386 |
Against | 471,175,917.812 | 16.140 |
Abstain | 339,614,021.130 | 11.633 |
Broker Non-Vote | 170,497,954.180 | 5.840 |
TOTAL | 2,919,313,727.823 | 100.000 |
Proposal 1 reflects trust wide proposal and voting results. | ||
Proposal 2 was not approved by shareholders. |
SPH-SANN-1220
1.538299.123
Fidelity® Focused High Income Fund
Semi-Annual Report
October 31, 2020
See the inside front cover for important information about access to your fund’s shareholder reports.
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Contents
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
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Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2020 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT. Forms N-PORT are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-PORT may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Note to Shareholders:
Early in 2020, the outbreak and spread of a new coronavirus emerged as a public health emergency that had a major influence on financial markets, primarily based on its impact on the global economy and the outlook for corporate earnings. The virus causes a respiratory disease known as COVID-19. On March 11, the World Health Organization declared the COVID-19 outbreak a pandemic, citing sustained risk of further global spread.
In the weeks following, as the crisis worsened, we witnessed an escalating human tragedy with wide-scale social and economic consequences from coronavirus-containment measures. The outbreak of COVID-19 prompted a number of measures to limit the spread, including travel and border restrictions, quarantines, and restrictions on large gatherings. In turn, these resulted in lower consumer activity, diminished demand for a wide range of products and services, disruption in manufacturing and supply chains, and – given the wide variability in outcomes regarding the outbreak – significant market uncertainty and volatility. Amid the turmoil, global governments and central banks took unprecedented action to help support consumers, businesses, and the broader economies, and to limit disruption to financial systems.
The situation continues to unfold, and the extent and duration of its impact on financial markets and the economy remain highly uncertain. Extreme events such as the coronavirus crisis are “exogenous shocks” that can have significant adverse effects on mutual funds and their investments. Although multiple asset classes may be affected by market disruption, the duration and impact may not be the same for all types of assets.
Fidelity is committed to helping you stay informed amid news about COVID-19 and during increased market volatility, and we’re taking extra steps to be responsive to customer needs. We encourage you to visit our websites, where we offer ongoing updates, commentary, and analysis on the markets and our funds.
Investment Summary (Unaudited)
Top Five Holdings as of October 31, 2020
(by issuer, excluding cash equivalents) | % of fund's net assets |
CCO Holdings LLC/CCO Holdings Capital Corp. | 4.0 |
Centene Corp. | 2.6 |
Sirius XM Radio, Inc. | 2.6 |
Icahn Enterprises LP/Icahn Enterprises Finance Corp. | 2.6 |
Cheniere Energy Partners LP | 2.5 |
14.3 |
Top Five Market Sectors as of October 31, 2020
% of fund's net assets | |
Energy | 12.6 |
Telecommunications | 11.3 |
Utilities | 8.7 |
Healthcare | 8.7 |
Cable/Satellite TV | 8.4 |
Quality Diversification (% of fund's net assets)
As of October 31, 2020 | ||
BBB | 3.7% | |
BB | 62.7% | |
B | 28.4% | |
Not Rated | 0.9% | |
Equities | 0.1% | |
Short-Term Investments and Net Other Assets | 4.2% |
We have used ratings from Moody's Investors Service, Inc. Where Moody's® ratings are not available, we have used S&P® ratings. All ratings are as of the date indicated and do not reflect subsequent changes.
Asset Allocation (% of fund's net assets)
As of October 31, 2020* | ||
Nonconvertible Bonds | 94.4% | |
Convertible Bonds, Preferred Stocks | 0.4% | |
Common Stocks | 0.1% | |
Bank Loan Obligations | 0.9% | |
Short-Term Investments and Net Other Assets (Liabilities) | 4.2% |
* Foreign investments - 16.5%
Schedule of Investments October 31, 2020 (Unaudited)
Showing Percentage of Net Assets
Corporate Bonds - 94.8% | |||
Principal Amount | Value | ||
Convertible Bonds - 0.4% | |||
Broadcasting - 0.4% | |||
DISH Network Corp.: | |||
2.375% 3/15/24 | $1,230,000 | $1,104,841 | |
3.375% 8/15/26 | 680,000 | 601,059 | |
1,705,900 | |||
Nonconvertible Bonds - 94.4% | |||
Aerospace - 3.7% | |||
BBA U.S. Holdings, Inc.: | |||
4% 3/1/28 (a) | 1,500,000 | 1,450,590 | |
5.375% 5/1/26 (a) | 1,620,000 | 1,636,200 | |
BWX Technologies, Inc.: | |||
4.125% 6/30/28 (a) | 795,000 | 802,950 | |
5.375% 7/15/26 (a) | 3,000,000 | 3,109,890 | |
Kaiser Aluminum Corp.: | |||
4.625% 3/1/28 (a) | 1,615,000 | 1,590,775 | |
6.5% 5/1/25 (a) | 430,000 | 455,800 | |
Moog, Inc. 4.25% 12/15/27 (a) | 1,440,000 | 1,477,800 | |
Science Applications International Corp. 4.875% 4/1/28 (a) | 150,000 | 157,134 | |
TransDigm, Inc.: | |||
6.25% 3/15/26 (a) | 4,115,000 | 4,289,888 | |
6.5% 5/15/25 | 165,000 | 165,000 | |
7.5% 3/15/27 | 145,000 | 149,713 | |
8% 12/15/25 (a) | 1,505,000 | 1,627,281 | |
16,913,021 | |||
Automotive & Auto Parts - 0.8% | |||
Ford Motor Credit Co. LLC: | |||
3.087% 1/9/23 | 565,000 | 559,350 | |
3.219% 1/9/22 | 480,000 | 477,005 | |
3.339% 3/28/22 | 360,000 | 359,100 | |
4.687% 6/9/25 | 715,000 | 732,160 | |
5.113% 5/3/29 | 850,000 | 882,938 | |
5.125% 6/16/25 | 530,000 | 552,414 | |
3,562,967 | |||
Banks & Thrifts - 1.5% | |||
Ally Financial, Inc.: | |||
5.75% 11/20/25 | 5,457,000 | 6,201,371 | |
8% 11/1/31 | 450,000 | 620,878 | |
6,822,249 | |||
Broadcasting - 4.6% | |||
Netflix, Inc.: | |||
3.625% 6/15/25 (a) | 740,000 | 768,675 | |
4.375% 11/15/26 | 610,000 | 662,144 | |
4.875% 4/15/28 | 1,370,000 | 1,540,839 | |
4.875% 6/15/30 (a) | 385,000 | 439,381 | |
5.375% 11/15/29 (a) | 845,000 | 989,706 | |
5.875% 11/15/28 | 695,000 | 830,383 | |
6.375% 5/15/29 | 3,215,000 | 3,938,375 | |
Sirius XM Radio, Inc.: | |||
4.125% 7/1/30 (a) | 2,000,000 | 2,056,020 | |
4.625% 7/15/24 (a) | 430,000 | 443,416 | |
5% 8/1/27 (a) | 2,285,000 | 2,393,538 | |
5.375% 7/15/26 (a) | 2,200,000 | 2,291,212 | |
5.5% 7/1/29 (a) | 4,625,000 | 5,034,081 | |
21,387,770 | |||
Building Materials - 0.3% | |||
Advanced Drain Systems, Inc. 5% 9/30/27 (a) | 1,320,000 | 1,381,222 | |
Cable/Satellite TV - 8.4% | |||
CCO Holdings LLC/CCO Holdings Capital Corp.: | |||
4.25% 2/1/31 (a) | 5,000,000 | 5,112,500 | |
4.5% 8/15/30 (a) | 675,000 | 701,156 | |
4.5% 5/1/32 (a) | 1,105,000 | 1,140,913 | |
5% 2/1/28 (a) | 3,780,000 | 3,980,340 | |
5.125% 5/1/27 (a) | 2,110,000 | 2,215,500 | |
5.375% 5/1/25 (a) | 1,000,000 | 1,027,000 | |
5.5% 5/1/26 (a) | 2,290,000 | 2,381,600 | |
5.875% 5/1/27 (a) | 1,630,000 | 1,700,709 | |
CSC Holdings LLC: | |||
4.125% 12/1/30 (a) | 2,835,000 | 2,882,571 | |
5.375% 2/1/28 (a) | 1,500,000 | 1,593,750 | |
5.5% 5/15/26 (a) | 1,200,000 | 1,248,600 | |
5.5% 4/15/27 (a) | 1,320,000 | 1,389,300 | |
5.75% 1/15/30 (a) | 1,600,000 | 1,710,472 | |
DISH DBS Corp. 5.875% 11/15/24 | 1,330,000 | 1,338,027 | |
Telenet Finance Luxembourg Notes SARL 5.5% 3/1/28 (a) | 3,200,000 | 3,360,000 | |
Virgin Media Finance PLC 5% 7/15/30 (a) | 105,000 | 104,475 | |
Virgin Media Secured Finance PLC: | |||
4.5% 8/15/30 (a)(b) | 1,060,000 | 1,077,225 | |
5.5% 8/15/26 (a) | 1,460,000 | 1,518,911 | |
5.5% 5/15/29 (a) | 740,000 | 790,623 | |
Ziggo Bond Co. BV 6% 1/15/27 (a) | 300,000 | 311,250 | |
Ziggo BV 5.5% 1/15/27 (a) | 3,010,000 | 3,122,875 | |
38,707,797 | |||
Chemicals - 4.2% | |||
Axalta Coating Systems/Dutch Holding BV 4.75% 6/15/27 (a) | 935,000 | 979,413 | |
CF Industries Holdings, Inc.: | |||
4.95% 6/1/43 | 5,000 | 5,994 | |
5.15% 3/15/34 | 1,500,000 | 1,756,875 | |
5.375% 3/15/44 | 475,000 | 583,063 | |
Consolidated Energy Finance SA: | |||
3 month U.S. LIBOR + 3.750% 4.0004% 6/15/22 (a)(c)(d) | 1,330,000 | 1,271,203 | |
6.5% 5/15/26 (a) | 1,572,000 | 1,454,100 | |
6.875% 6/15/25 (a) | 140,000 | 130,200 | |
Methanex Corp.: | |||
5.125% 10/15/27 | 1,405,000 | 1,430,712 | |
5.65% 12/1/44 | 110,000 | 105,738 | |
Olin Corp.: | |||
5% 2/1/30 | 2,565,000 | 2,584,238 | |
5.125% 9/15/27 | 1,695,000 | 1,720,425 | |
5.625% 8/1/29 | 305,000 | 315,291 | |
The Chemours Co. LLC: | |||
5.375% 5/15/27 | 1,000,000 | 981,250 | |
7% 5/15/25 | 1,205,000 | 1,214,038 | |
Valvoline, Inc.: | |||
4.25% 2/15/30 (a) | 255,000 | 260,100 | |
4.375% 8/15/25 | 2,490,000 | 2,561,588 | |
W. R. Grace & Co.-Conn.: | |||
4.875% 6/15/27 (a) | 505,000 | 526,089 | |
5.625% 10/1/24 (a) | 1,200,000 | 1,293,240 | |
19,173,557 | |||
Consumer Products - 0.1% | |||
Mattel, Inc. 6.75% 12/31/25 (a) | 375,000 | 394,406 | |
Containers - 1.0% | |||
Ardagh Packaging Finance PLC/Ardagh MP Holdings U.S.A., Inc.: | |||
4.125% 8/15/26 (a) | 50,000 | 51,000 | |
6% 2/15/25 (a) | 235,000 | 242,931 | |
Berry Global, Inc. 4.875% 7/15/26 (a) | 635,000 | 665,163 | |
OI European Group BV 4% 3/15/23 (a) | 1,230,000 | 1,236,150 | |
Owens-Brockway Glass Container, Inc. 5.375% 1/15/25 (a) | 460,000 | 480,700 | |
Reynolds Group Issuer, Inc./Reynolds Group Issuer LLC/Reynolds Group Issuer (Luxembourg) SA 5.125% 7/15/23 (a) | 72,000 | 72,900 | |
Silgan Holdings, Inc. 4.75% 3/15/25 | 810,000 | 826,200 | |
Trivium Packaging Finance BV 5.5% 8/15/26 (a) | 1,215,000 | 1,272,713 | |
4,847,757 | |||
Diversified Financial Services - 4.6% | |||
Icahn Enterprises LP/Icahn Enterprises Finance Corp.: | |||
4.75% 9/15/24 | 3,610,000 | 3,671,659 | |
5.25% 5/15/27 | 6,175,000 | 6,389,931 | |
6.25% 5/15/26 | 1,620,000 | 1,680,750 | |
MSCI, Inc. 4% 11/15/29 (a) | 2,000,000 | 2,087,320 | |
Navient Corp.: | |||
5.5% 1/25/23 | 835,000 | 832,913 | |
7.25% 1/25/22 | 605,000 | 624,663 | |
7.25% 9/25/23 | 1,765,000 | 1,851,044 | |
Springleaf Finance Corp.: | |||
6.875% 3/15/25 | 1,105,000 | 1,215,500 | |
7.125% 3/15/26 | 500,000 | 554,430 | |
VMED O2 UK Financing I PLC 4.25% 1/31/31 (a) | 2,185,000 | 2,185,000 | |
21,093,210 | |||
Diversified Media - 1.1% | |||
Nielsen Co. SARL (Luxembourg) 5% 2/1/25 (a) | 2,130,000 | 2,187,936 | |
Nielsen Finance LLC/Nielsen Finance Co.: | |||
5% 4/15/22 (a) | 823,000 | 823,412 | |
5.625% 10/1/28 (a) | 910,000 | 941,850 | |
5.875% 10/1/30 (a) | 905,000 | 951,381 | |
4,904,579 | |||
Electric Utilities No Longer Use - 0.0% | |||
TerraForm Power Operating LLC 4.75% 1/15/30 (a) | 130,000 | 139,489 | |
Energy - 12.5% | |||
Cheniere Energy Partners LP: | |||
5.25% 10/1/25 | 4,820,000 | 4,906,760 | |
5.625% 10/1/26 | 6,235,000 | 6,390,875 | |
Cheniere Energy, Inc. 4.625% 10/15/28 (a) | 1,015,000 | 1,047,988 | |
Crestwood Midstream Partners LP/Crestwood Midstream Finance Corp.: | |||
5.625% 5/1/27 (a) | 1,748,000 | 1,531,685 | |
5.75% 4/1/25 | 4,312,000 | 3,886,190 | |
6.25% 4/1/23 | 1,170,000 | 1,134,087 | |
CVR Energy, Inc.: | |||
5.25% 2/15/25 (a) | 1,200,000 | 874,500 | |
5.75% 2/15/28 (a) | 150,000 | 102,375 | |
DCP Midstream Operating LP 5.375% 7/15/25 | 2,410,000 | 2,530,500 | |
Endeavor Energy Resources LP/EER Finance, Inc.: | |||
5.5% 1/30/26 (a) | 75,000 | 75,375 | |
5.75% 1/30/28 (a) | 735,000 | 762,563 | |
6.625% 7/15/25 (a) | 170,000 | 176,375 | |
EQM Midstream Partners LP 6.5% 7/1/27 (a) | 505,000 | 529,641 | |
Hess Midstream Partners LP: | |||
5.125% 6/15/28 (a) | 1,070,000 | 1,064,650 | |
5.625% 2/15/26 (a) | 2,310,000 | 2,310,000 | |
Hilcorp Energy I LP/Hilcorp Finance Co. 5% 12/1/24 (a) | 695,000 | 642,875 | |
Holly Energy Partners LP/Holly Energy Finance Corp. 5% 2/1/28 (a) | 1,360,000 | 1,271,600 | |
Jonah Energy LLC 7.25% 10/15/25 (a) | 750,000 | 24,375 | |
Occidental Petroleum Corp.: | |||
2.9% 8/15/24 | 860,000 | 715,950 | |
3.4% 4/15/26 | 505,000 | 395,001 | |
3.5% 8/15/29 | 810,000 | 584,383 | |
4.2% 3/15/48 | 390,000 | 258,200 | |
4.3% 8/15/39 | 260,000 | 176,800 | |
4.4% 4/15/46 | 375,000 | 252,083 | |
4.4% 8/15/49 | 505,000 | 338,350 | |
5.55% 3/15/26 | 1,275,000 | 1,109,250 | |
6.2% 3/15/40 | 255,000 | 207,009 | |
6.45% 9/15/36 | 1,340,000 | 1,085,400 | |
7.5% 5/1/31 | 1,780,000 | 1,624,250 | |
7.875% 9/15/31 | 170,000 | 154,700 | |
8.875% 7/15/30 | 580,000 | 567,675 | |
Parsley Energy LLC/Parsley Finance Corp. 4.125% 2/15/28 (a) | 1,000,000 | 1,040,550 | |
PBF Holding Co. LLC/PBF Finance Corp.: | |||
7.25% 6/15/25 | 1,000,000 | 418,125 | |
9.25% 5/15/25 (a) | 1,785,000 | 1,584,188 | |
Rattler Midstream LP 5.625% 7/15/25 (a) | 1,900,000 | 1,952,250 | |
Sunoco LP/Sunoco Finance Corp.: | |||
4.875% 1/15/23 | 50,000 | 50,375 | |
5.5% 2/15/26 | 1,010,000 | 1,011,894 | |
5.875% 3/15/28 | 1,695,000 | 1,758,563 | |
6% 4/15/27 | 25,000 | 25,843 | |
Targa Resources Partners LP/Targa Resources Partners Finance Corp.: | |||
4.25% 11/15/23 | 335,000 | 334,965 | |
4.875% 2/1/31 (a) | 1,275,000 | 1,244,285 | |
5.125% 2/1/25 | 780,000 | 781,950 | |
5.375% 2/1/27 | 2,245,000 | 2,256,225 | |
5.5% 3/1/30 (a) | 255,000 | 256,513 | |
5.875% 4/15/26 | 1,840,000 | 1,876,800 | |
Viper Energy Partners LP 5.375% 11/1/27 (a) | 1,500,000 | 1,531,050 | |
Western Gas Partners LP: | |||
3.95% 6/1/25 | 190,000 | 176,345 | |
4% 7/1/22 | 185,000 | 185,000 | |
4.1% 2/1/25 | 745,000 | 701,879 | |
4.65% 7/1/26 | 2,500,000 | 2,400,000 | |
5.05% 2/1/30 | 1,265,000 | 1,200,061 | |
5.3% 3/1/48 | 360,000 | 289,800 | |
6.25% 2/1/50 | 120,000 | 110,226 | |
57,918,352 | |||
Environmental - 0.4% | |||
Darling Ingredients, Inc. 5.25% 4/15/27 (a) | 970,000 | 1,028,200 | |
LBC Tank Terminals Holding Netherlands BV 6.875% 5/15/23 (a) | 900,000 | 897,750 | |
1,925,950 | |||
Food/Beverage/Tobacco - 5.1% | |||
H.J. Heinz Co.: | |||
3.875% 5/15/27 (a) | 820,000 | 866,652 | |
4.25% 3/1/31 (a) | 775,000 | 839,938 | |
5% 7/15/35 | 3,015,000 | 3,469,403 | |
JBS U.S.A. LLC/JBS U.S.A. Finance, Inc.: | |||
5.75% 6/15/25 (a) | 4,315,000 | 4,435,820 | |
6.75% 2/15/28 (a) | 1,245,000 | 1,369,288 | |
JBS U.S.A. Lux SA / JBS Food Co.: | |||
5.5% 1/15/30 (a) | 2,525,000 | 2,745,938 | |
6.5% 4/15/29 (a) | 3,890,000 | 4,366,525 | |
Lamb Weston Holdings, Inc. 4.875% 5/15/28 (a) | 1,220,000 | 1,321,864 | |
Post Holdings, Inc.: | |||
4.625% 4/15/30 (a) | 2,135,000 | 2,191,044 | |
5% 8/15/26 (a) | 135,000 | 139,995 | |
5.5% 12/15/29 (a) | 590,000 | 636,463 | |
5.625% 1/15/28 (a) | 405,000 | 427,275 | |
U.S. Foods, Inc. 6.25% 4/15/25 (a) | 650,000 | 679,250 | |
23,489,455 | |||
Gaming - 4.0% | |||
Caesars Entertainment, Inc. 6.25% 7/1/25 (a) | 1,515,000 | 1,555,519 | |
GLP Capital LP/GLP Financing II, Inc. 5.25% 6/1/25 | 995,000 | 1,087,018 | |
MCE Finance Ltd.: | |||
4.875% 6/6/25 (a) | 1,225,000 | 1,231,048 | |
5.375% 12/4/29 (a) | 360,000 | 346,991 | |
5.75% 7/21/28 (a) | 530,000 | 528,650 | |
MGM Growth Properties Operating Partnership LP: | |||
4.5% 9/1/26 | 3,300,000 | 3,382,500 | |
4.5% 1/15/28 | 1,525,000 | 1,547,875 | |
4.625% 6/15/25 (a) | 245,000 | 249,523 | |
5.75% 2/1/27 | 270,000 | 291,366 | |
MGM Mirage, Inc. 5.75% 6/15/25 | 866,000 | 899,839 | |
Scientific Games Corp. 5% 10/15/25 (a) | 790,000 | 792,963 | |
VICI Properties, Inc.: | |||
3.5% 2/15/25 (a) | 470,000 | 468,825 | |
4.25% 12/1/26 (a) | 2,210,000 | 2,247,239 | |
4.625% 12/1/29 (a) | 925,000 | 961,084 | |
Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp.: | |||
5.25% 5/15/27 (a) | 870,000 | 804,359 | |
5.5% 3/1/25 (a) | 900,000 | 861,750 | |
Wynn Macau Ltd. 4.875% 10/1/24 (a) | 830,000 | 809,250 | |
Wynn Resorts Finance LLC / Wynn Resorts Capital Corp. 5.125% 10/1/29 (a) | 380,000 | 363,850 | |
18,429,649 | |||
Healthcare - 8.7% | |||
Centene Corp.: | |||
4.25% 12/15/27 | 3,635,000 | 3,825,838 | |
5.375% 6/1/26 (a) | 1,820,000 | 1,915,022 | |
5.375% 8/15/26 (a) | 6,205,000 | 6,561,788 | |
Charles River Laboratories International, Inc.: | |||
4.25% 5/1/28 (a) | 90,000 | 94,050 | |
5.5% 4/1/26 (a) | 1,675,000 | 1,750,375 | |
CTR Partnership LP/CareTrust Capital Corp. 5.25% 6/1/25 | 1,195,000 | 1,230,850 | |
DaVita HealthCare Partners, Inc. 4.625% 6/1/30 (a) | 510,000 | 518,744 | |
HCA Holdings, Inc.: | |||
3.5% 9/1/30 | 2,000,000 | 2,042,715 | |
5.375% 2/1/25 | 2,425,000 | 2,685,275 | |
5.875% 2/15/26 | 1,600,000 | 1,808,000 | |
Hologic, Inc.: | |||
3.25% 2/15/29 (a) | 1,000,000 | 1,005,000 | |
4.625% 2/1/28 (a) | 1,650,000 | 1,724,250 | |
IMS Health, Inc.: | |||
5% 10/15/26 (a) | 2,250,000 | 2,331,889 | |
5% 5/15/27 (a) | 820,000 | 858,950 | |
Teleflex, Inc.: | |||
4.25% 6/1/28 (a) | 235,000 | 245,575 | |
4.875% 6/1/26 | 1,955,000 | 2,033,200 | |
Tenet Healthcare Corp.: | |||
4.625% 7/15/24 | 2,520,000 | 2,562,592 | |
4.875% 1/1/26 (a) | 595,000 | 603,586 | |
5.125% 5/1/25 | 1,200,000 | 1,187,640 | |
5.125% 11/1/27 (a) | 1,200,000 | 1,235,640 | |
6.25% 2/1/27 (a) | 925,000 | 960,432 | |
Valeant Pharmaceuticals International, Inc. 7% 3/15/24 (a) | 3,040,000 | 3,150,200 | |
40,331,611 | |||
Homebuilders/Real Estate - 0.9% | |||
Howard Hughes Corp. 5.375% 3/15/25 (a) | 1,345,000 | 1,346,681 | |
MPT Operating Partnership LP/MPT Finance Corp.: | |||
5.25% 8/1/26 | 1,455,000 | 1,509,563 | |
6.375% 3/1/24 | 880,000 | 900,856 | |
Starwood Property Trust, Inc. 4.75% 3/15/25 | 440,000 | 426,800 | |
4,183,900 | |||
Hotels - 0.7% | |||
Hilton Domestic Operating Co., Inc. 4.25% 9/1/24 | 945,000 | 939,803 | |
Hilton Worldwide Finance LLC/Hilton Worldwide Finance Corp.: | |||
4.625% 4/1/25 | 750,000 | 756,945 | |
4.875% 4/1/27 | 445,000 | 450,173 | |
Wyndham Hotels & Resorts, Inc. 5.375% 4/15/26 (a) | 1,020,000 | 1,032,750 | |
3,179,671 | |||
Metals/Mining - 0.7% | |||
FMG Resources (August 2006) Pty Ltd. 4.5% 9/15/27 (a) | 15,000 | 16,064 | |
Freeport-McMoRan, Inc.: | |||
3.55% 3/1/22 | 248,000 | 251,720 | |
4.55% 11/14/24 | 340,000 | 365,500 | |
Nufarm Australia Ltd. 5.75% 4/30/26 (a) | 2,460,000 | 2,484,600 | |
3,117,884 | |||
Restaurants - 0.9% | |||
1011778 BC Unlimited Liability Co./New Red Finance, Inc.: | |||
4.25% 5/15/24 (a) | 1,325,000 | 1,352,163 | |
4.375% 1/15/28 (a) | 1,035,000 | 1,047,938 | |
5.75% 4/15/25 (a) | 285,000 | 303,673 | |
Yum! Brands, Inc. 7.75% 4/1/25 (a) | 1,300,000 | 1,427,985 | |
4,131,759 | |||
Services - 4.8% | |||
AECOM: | |||
5.125% 3/15/27 | 2,000,000 | 2,187,400 | |
5.875% 10/15/24 | 2,155,000 | 2,370,500 | |
Aramark Services, Inc.: | |||
4.75% 6/1/26 | 2,570,000 | 2,553,938 | |
5% 2/1/28 (a) | 1,685,000 | 1,699,929 | |
6.375% 5/1/25 (a) | 4,550,000 | 4,772,404 | |
ASGN, Inc. 4.625% 5/15/28 (a) | 1,900,000 | 1,953,751 | |
Booz Allen Hamilton, Inc. 3.875% 9/1/28 (a) | 1,395,000 | 1,415,925 | |
CoreCivic, Inc.: | |||
4.625% 5/1/23 | 145,000 | 132,675 | |
5% 10/15/22 | 530,000 | 507,475 | |
Fair Isaac Corp. 5.25% 5/15/26 (a) | 1,305,000 | 1,448,550 | |
Gartner, Inc. 3.75% 10/1/30 (a) | 470,000 | 480,622 | |
GEMS MENASA Cayman Ltd. 7.125% 7/31/26 (a) | 1,030,000 | 1,020,022 | |
Service Corp. International 5.125% 6/1/29 | 1,425,000 | 1,557,283 | |
22,100,474 | |||
Super Retail - 0.3% | |||
The William Carter Co. 5.625% 3/15/27 (a) | 465,000 | 487,959 | |
Wolverine World Wide, Inc. 6.375% 5/15/25 (a) | 955,000 | 1,017,075 | |
1,505,034 | |||
Technology - 4.9% | |||
CDK Global, Inc.: | |||
4.875% 6/1/27 | 2,505,000 | 2,595,994 | |
5.25% 5/15/29 (a) | 140,000 | 150,178 | |
CDW LLC/CDW Finance Corp. 4.25% 4/1/28 | 1,300,000 | 1,344,532 | |
Entegris, Inc.: | |||
4.375% 4/15/28 (a) | 715,000 | 743,600 | |
4.625% 2/10/26 (a) | 1,400,000 | 1,438,500 | |
Gartner, Inc. 4.5% 7/1/28 (a) | 660,000 | 689,014 | |
Match Group Holdings II LLC 4.125% 8/1/30 (a) | 265,000 | 270,631 | |
Nortonlifelock, Inc. 5% 4/15/25 (a) | 4,335,000 | 4,415,024 | |
Nuance Communications, Inc. 5.625% 12/15/26 | 1,495,000 | 1,569,750 | |
ON Semiconductor Corp. 3.875% 9/1/28 (a) | 545,000 | 554,538 | |
Open Text Corp.: | |||
3.875% 2/15/28 (a) | 655,000 | 665,336 | |
5.875% 6/1/26 (a) | 1,015,000 | 1,055,600 | |
Open Text Holdings, Inc. 4.125% 2/15/30 (a) | 130,000 | 134,875 | |
Qorvo, Inc. 4.375% 10/15/29 | 500,000 | 536,060 | |
Sensata Technologies BV 5% 10/1/25 (a) | 915,000 | 998,855 | |
SoftBank Group Corp. 5.375% 7/30/22 (Reg. S) | 1,000,000 | 1,030,000 | |
SS&C Technologies, Inc. 5.5% 9/30/27 (a) | 2,020,000 | 2,146,917 | |
TTM Technologies, Inc. 5.625% 10/1/25 (a) | 2,265,000 | 2,327,288 | |
22,666,692 | |||
Telecommunications - 10.8% | |||
Altice Financing SA: | |||
5% 1/15/28 (a) | 340,000 | 329,800 | |
7.5% 5/15/26 (a) | 433,000 | 451,944 | |
C&W Senior Financing Designated Activity Co.: | |||
6.875% 9/15/27 (a) | 1,510,000 | 1,590,030 | |
7.5% 10/15/26 (a) | 3,575,000 | 3,764,439 | |
Century Telephone Enterprises, Inc. 6.875% 1/15/28 | 60,000 | 66,600 | |
CenturyLink, Inc.: | |||
5.125% 12/15/26 (a) | 2,585,000 | 2,643,163 | |
5.625% 4/1/25 | 640,000 | 672,000 | |
Intelsat Jackson Holdings SA 8% 2/15/24 (a) | 2,010,000 | 2,040,150 | |
Level 3 Financing, Inc.: | |||
3.625% 1/15/29 (a) | 165,000 | 159,638 | |
4.25% 7/1/28 (a) | 2,645,000 | 2,658,225 | |
4.625% 9/15/27 (a) | 4,200,000 | 4,284,000 | |
5.25% 3/15/26 | 1,186,000 | 1,224,426 | |
Millicom International Cellular SA: | |||
4.5% 4/27/31 (a) | 200,000 | 203,000 | |
5.125% 1/15/28 (a) | 1,000,000 | 1,049,375 | |
6.625% 10/15/26 (a) | 3,125,000 | 3,375,000 | |
Sable International Finance Ltd. 5.75% 9/7/27 (a) | 2,905,000 | 3,079,300 | |
SBA Communications Corp. 4.875% 9/1/24 | 1,500,000 | 1,532,700 | |
SFR Group SA 7.375% 5/1/26 (a) | 1,800,000 | 1,878,660 | |
Sprint Capital Corp. 6.875% 11/15/28 | 7,150,000 | 9,035,789 | |
Sprint Communications, Inc. 6% 11/15/22 | 965,000 | 1,032,907 | |
T-Mobile U.S.A., Inc.: | |||
3.75% 4/15/27 (a) | 2,560,000 | 2,852,787 | |
3.875% 4/15/30 (a) | 1,938,000 | 2,177,072 | |
4.5% 2/1/26 | 845,000 | 866,125 | |
6.5% 1/15/26 | 10,000 | 10,420 | |
Telecom Italia Capital SA 6% 9/30/34 | 295,000 | 343,233 | |
Telecom Italia SpA 5.303% 5/30/24 (a) | 2,540,000 | 2,748,153 | |
50,068,936 | |||
Transportation Ex Air/Rail - 0.7% | |||
XPO Logistics, Inc. 6.25% 5/1/25 (a) | 2,845,000 | 3,023,723 | |
Utilities - 8.7% | |||
Clearway Energy Operating LLC: | |||
4.75% 3/15/28 (a) | 195,000 | 204,994 | |
5% 9/15/26 | 1,600,000 | 1,653,808 | |
5.75% 10/15/25 | 525,000 | 549,938 | |
DCP Midstream Operating LP: | |||
5.125% 5/15/29 | 3,925,000 | 3,902,981 | |
5.625% 7/15/27 | 1,035,000 | 1,072,674 | |
Global Partners LP/GLP Finance Corp. 7% 8/1/27 | 997,000 | 1,026,342 | |
InterGen NV 7% 6/30/23 (a) | 1,635,000 | 1,545,075 | |
NextEra Energy Partners LP: | |||
4.25% 9/15/24 (a) | 1,760,000 | 1,843,600 | |
4.5% 9/15/27 (a) | 255,000 | 278,588 | |
NRG Energy, Inc.: | |||
5.25% 6/15/29 (a) | 625,000 | 677,344 | |
5.75% 1/15/28 | 865,000 | 930,416 | |
6.625% 1/15/27 | 2,390,000 | 2,515,475 | |
NSG Holdings II LLC/NSG Holdings, Inc. 7.75% 12/15/25 (a) | 2,387,152 | 2,530,381 | |
Pattern Energy Operations LP 4.5% 8/15/28 (a) | 365,000 | 380,560 | |
PG&E Corp. 5.25% 7/1/30 | 2,115,000 | 2,115,000 | |
TerraForm Power Operating LLC: | |||
4.25% 1/31/23 (a) | 1,205,000 | 1,226,088 | |
5% 1/31/28 (a) | 1,125,000 | 1,235,053 | |
The AES Corp.: | |||
5.125% 9/1/27 | 1,035,000 | 1,110,125 | |
5.5% 4/15/25 | 1,365,000 | 1,402,142 | |
6% 5/15/26 | 3,845,000 | 4,028,868 | |
Vistra Operations Co. LLC: | |||
5% 7/31/27 (a) | 4,395,000 | 4,592,775 | |
5.5% 9/1/26 (a) | 2,520,000 | 2,608,200 | |
5.625% 2/15/27 (a) | 2,830,000 | 2,950,275 | |
40,380,702 | |||
TOTAL NONCONVERTIBLE BONDS | 435,781,816 | ||
TOTAL CORPORATE BONDS | |||
(Cost $428,947,855) | 437,487,716 | ||
Shares | Value | ||
Common Stocks - 0.1% | |||
Energy - 0.1% | |||
Denbury, Inc. (e) | |||
(Cost $787,513) | 32,239 | 534,845 | |
Principal Amount | Value | ||
Bank Loan Obligations - 0.9% | |||
Gaming - 0.0% | |||
Golden Entertainment, Inc. Tranche B, term loan 3 month U.S. LIBOR + 3.000% 3.75% 10/20/24 (c)(d)(f) | 205,000 | 197,569 | |
Technology - 0.4% | |||
Ultimate Software Group, Inc. 1LN, term loan 3 month U.S. LIBOR + 4.000% 4.75% 5/3/26 (c)(d)(f) | 1,860,000 | 1,847,222 | |
Telecommunications - 0.5% | |||
Intelsat Jackson Holdings SA: | |||
Tranche B, term loan 3 month U.S. LIBOR + 3.750% 8% 11/27/23 (c)(d)(f) | 1,175,000 | 1,179,242 | |
Tranche B-4, term loan 3 month U.S. LIBOR + 5.500% 8.75% 1/2/24 (c)(d)(f) | 100,000 | 100,403 | |
Tranche DD 1LN, term loan 3 month U.S. LIBOR + 5.500% 5.05% 7/13/22 (c)(d)(f)(g) | 796,736 | 808,687 | |
TOTAL TELECOMMUNICATIONS | 2,088,332 | ||
TOTAL BANK LOAN OBLIGATIONS | |||
(Cost $4,108,754) | 4,133,123 | ||
Shares | Value | ||
Money Market Funds - 3.5% | |||
Fidelity Cash Central Fund 0.10% (h) | |||
(Cost $16,012,226) | 16,009,024 | 16,012,226 | |
TOTAL INVESTMENT IN SECURITIES - 99.3% | |||
(Cost $449,856,348) | 458,167,910 | ||
NET OTHER ASSETS (LIABILITIES) - 0.7% | 3,209,824 | ||
NET ASSETS - 100% | $461,377,734 |
Legend
(a) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $260,837,256 or 56.5% of net assets.
(b) Security or a portion of the security purchased on a delayed delivery or when-issued basis.
(c) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end.
(d) Coupon is indexed to a floating interest rate which may be multiplied by a specified factor and/or subject to caps or floors.
(e) Non-income producing
(f) Remaining maturities of bank loan obligations may be less than the stated maturities shown as a result of contractual or optional prepayments by the borrower. Such prepayments cannot be predicted with certainty.
(g) Position or a portion of the position represents an unfunded loan commitment. At period end, the total principal amount and market value of unfunded commitments totaled $398,368 and $404,344, respectively.
(h) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
Fidelity Cash Central Fund | $15,269 |
Total | $15,269 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable.
Investment Valuation
The following is a summary of the inputs used, as of October 31, 2020, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Equities: | ||||
Energy | $534,845 | $534,845 | $-- | $-- |
Corporate Bonds | 437,487,716 | -- | 437,487,716 | -- |
Bank Loan Obligations | 4,133,123 | -- | 4,133,123 | -- |
Money Market Funds | 16,012,226 | 16,012,226 | -- | -- |
Total Investments in Securities: | $458,167,910 | $16,547,071 | $441,620,839 | $-- |
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
United States of America | 83.5% |
Luxembourg | 3.9% |
Multi-National | 3.0% |
Netherlands | 2.1% |
Canada | 1.9% |
Cayman Islands | 1.6% |
United Kingdom | 1.2% |
Ireland | 1.1% |
Others (Individually Less Than 1%) | 1.7% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
October 31, 2020 (Unaudited) | ||
Assets | ||
Investment in securities, at value — See accompanying schedule: Unaffiliated issuers (cost $433,844,122) | $442,155,684 | |
Fidelity Central Funds (cost $16,012,226) | 16,012,226 | |
Total Investment in Securities (cost $449,856,348) | $458,167,910 | |
Cash | 243,345 | |
Receivable for fund shares sold | 171,519 | |
Interest receivable | 6,110,740 | |
Distributions receivable from Fidelity Central Funds | 1,171 | |
Prepaid expenses | 728 | |
Total assets | 464,695,413 | |
Liabilities | ||
Payable for investments purchased | ||
Regular delivery | $1,326,109 | |
Delayed delivery | 979,200 | |
Payable for fund shares redeemed | 352,940 | |
Distributions payable | 344,912 | |
Accrued management fee | 213,127 | |
Other affiliated payables | 63,454 | |
Other payables and accrued expenses | 37,937 | |
Total liabilities | 3,317,679 | |
Net Assets | $461,377,734 | |
Net Assets consist of: | ||
Paid in capital | $467,920,667 | |
Total accumulated earnings (loss) | (6,542,933) | |
Net Assets | $461,377,734 | |
Net Asset Value, offering price and redemption price per share ($461,377,734 ÷ 53,220,433 shares) | $8.67 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended October 31, 2020 (Unaudited) | ||
Investment Income | ||
Dividends | $165,539 | |
Interest | 10,049,417 | |
Income from Fidelity Central Funds | 15,269 | |
Total income | 10,230,225 | |
Expenses | ||
Management fee | $1,200,717 | |
Transfer agent fees | 275,115 | |
Accounting fees and expenses | 90,606 | |
Custodian fees and expenses | 4,122 | |
Independent trustees' fees and expenses | 1,105 | |
Registration fees | 40,079 | |
Audit | 38,625 | |
Legal | 861 | |
Miscellaneous | 1,638 | |
Total expenses before reductions | 1,652,868 | |
Expense reductions | (1,949) | |
Total expenses after reductions | 1,650,919 | |
Net investment income (loss) | 8,579,306 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | (3,171,278) | |
Fidelity Central Funds | (1,227) | |
Total net realized gain (loss) | (3,172,505) | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 21,076,477 | |
Fidelity Central Funds | (1,284) | |
Total change in net unrealized appreciation (depreciation) | 21,075,193 | |
Net gain (loss) | 17,902,688 | |
Net increase (decrease) in net assets resulting from operations | $26,481,994 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended October 31, 2020 (Unaudited) | Year ended April 30, 2020 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $8,579,306 | $14,239,264 |
Net realized gain (loss) | (3,172,505) | (1,073,893) |
Change in net unrealized appreciation (depreciation) | 21,075,193 | (18,780,418) |
Net increase (decrease) in net assets resulting from operations | 26,481,994 | (5,615,047) |
Distributions to shareholders | (8,263,708) | (13,902,230) |
Share transactions | ||
Proceeds from sales of shares | 160,056,599 | 215,542,959 |
Reinvestment of distributions | 6,381,679 | 11,724,346 |
Cost of shares redeemed | (70,788,455) | (163,021,665) |
Net increase (decrease) in net assets resulting from share transactions | 95,649,823 | 64,245,640 |
Total increase (decrease) in net assets | 113,868,109 | 44,728,363 |
Net Assets | ||
Beginning of period | 347,509,625 | 302,781,262 |
End of period | $461,377,734 | $347,509,625 |
Other Information | ||
Shares | ||
Sold | 18,691,678 | 24,818,287 |
Issued in reinvestment of distributions | 737,085 | 1,351,795 |
Redeemed | (8,195,704)�� | (19,197,228) |
Net increase (decrease) | 11,233,059 | 6,972,854 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Focused High Income Fund
Six months ended (Unaudited) October 31, | Years endedApril 30, | |||||
2020 | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $8.28 | $8.65 | $8.47 | $8.67 | $8.22 | $8.73 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .170 | .374 | .399 | .380 | .397 | .396 |
Net realized and unrealized gain (loss) | .384 | (.378) | .190 | (.219) | .423 | (.519) |
Total from investment operations | .554 | (.004) | .589 | .161 | .820 | (.123) |
Distributions from net investment income | (.164) | (.366) | (.409) | (.362) | (.373) | (.389) |
Total distributions | (.164) | (.366) | (.409) | (.362) | (.373) | (.389) |
Redemption fees added to paid in capitalA | – | – | – | .001 | .003 | .002 |
Net asset value, end of period | $8.67 | $8.28 | $8.65 | $8.47 | $8.67 | $8.22 |
Total ReturnB,C | 6.71% | (.16)% | 7.21% | 1.86% | 10.22% | (1.30)% |
Ratios to Average Net AssetsD,E | ||||||
Expenses before reductions | .75%F | .78% | .79% | .80% | .83% | .85% |
Expenses net of fee waivers, if any | .75%F | .78% | .79% | .80% | .83% | .85% |
Expenses net of all reductions | .75%F | .78% | .78% | .79% | .82% | .85% |
Net investment income (loss) | 3.90%F | 4.31% | 4.73% | 4.38% | 4.70% | 4.80% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $461,378 | $347,510 | $302,781 | $397,850 | $548,971 | $769,732 |
Portfolio turnover rateG | 27%F | 43% | 49% | 47% | 51% | 47% |
A Calculated based on average shares outstanding during the period.
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Fees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment advisor, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
F Annualized
G Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended October 31, 2020
1. Organization.
Fidelity Focused High Income Fund (the Fund) is a fund of Fidelity Summer Street Trust (the Trust) and is authorized to issue an unlimited number of shares. Share transactions on the Statement of Changes in Net Assets may contain exchanges between affiliated funds. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date ranged from less than .005% to .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investment Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. Corporate bonds and bank loan obligations are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances. The Fund invests a significant portion of its assets in below investment grade securities. The value of these securities can be more volatile due to changes in the credit quality of the issuer and is sensitive to changes in economic, market and regulatory conditions.
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 equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of October 31, 2020 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. Dividend income is recorded on the ex-dividend date. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Debt obligations may be placed on non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivables when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is reasonably assured.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction.
Distributions are declared and recorded daily and paid monthly from net investment income. Distributions from realized gains, if any, are declared and recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to market discount, partnerships, capital loss carryforwards and losses deferred due to wash sales.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
Gross unrealized appreciation | $13,336,199 |
Gross unrealized depreciation | (4,291,717) |
Net unrealized appreciation (depreciation) | $9,044,482 |
Tax cost | $449,123,428 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of prior fiscal period end and is subject to adjustment.
No expiration | |
Short-term | $(12,922,587) |
Delayed Delivery Transactions and When-Issued Securities. During the period, certain Funds transacted in securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. Securities purchased on a delayed delivery or when-issued basis are identified as such in the Schedule of Investments. Compensation for interest forgone in the purchase of a delayed delivery or when-issued debt security may be received. With respect to purchase commitments, each applicable Fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Payables and receivables associated with the purchases and sales of delayed delivery securities having the same coupon, settlement date and broker are offset. Delayed delivery or when-issued securities that have been purchased from and sold to different brokers are reflected as both payables and receivables in the Statement of Assets and Liabilities under the caption "Delayed delivery", as applicable. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.
Restricted Securities (including Private Placements). The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
Loans and Other Direct Debt Instruments. Direct debt instruments are interests in amounts owed to lenders by corporate or other borrowers. These instruments may be in the form of loans, trade claims or other receivables and may include standby financing commitments such as revolving credit facilities that obligate a fund to supply additional cash to the borrower on demand. Loans may be acquired through assignment, participation, or may be made directly to a borrower. Such instruments are presented in the Bank Loan Obligations section in the Schedule of Investments. Certain funds may also invest in unfunded loan commitments, which are contractual obligations for future funding. Information regarding unfunded commitments is included at the end of the Schedule of Investments, if applicable.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, are noted in the table below.
Purchases ($) | Sales ($) | |
Fidelity Focused High Income Fund | 158,373,397 | 55,849,687 |
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company LLC (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the Fund's average net assets and an annualized group fee rate that averaged .10% during the period. The group fee rate is based upon the monthly average net assets of a group of registered investment companies with which the investment adviser has management contracts. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annualized management fee rate was .55% of the Fund's average net assets.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company LLC (FIIOC), an affiliate of the investment adviser, is the Fund's transfer, dividend disbursing and shareholder servicing agent. FIIOC receives account fees and asset-based fees that vary according to account size and type of account. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the transfer agent fees were equivalent to an annualized rate of .13% of average net assets.
Accounting Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. For the period, the fees were equivalent to the following annualized rates:
% of Average Net Assets | |
Fidelity Focused High Income Fund | .04 |
Interfund Trades. Funds may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
6. Committed Line of Credit.
Certain Funds participate with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The participating funds have agreed to pay commitment fees on their pro-rata portion of the line of credit, which are reflected in Miscellaneous expenses on the Statement of Operations, and are as follows:
Amount | |
Fidelity Focused High Income Fund | $459 |
During the period, there were no borrowings on this line of credit.
7. Expense Reductions.
Through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses by $1,588.
In addition, during the period the investment adviser or an affiliate reimbursed and/or waived a portion of operating expenses in the amount of $361.
8. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
9. Coronavirus (COVID-19) Pandemic.
An outbreak of COVID-19 first detected in China during December 2019 has since spread globally and was declared a pandemic by the World Health Organization during March 2020. Developments that disrupt global economies and financial markets, such as the COVID-19 pandemic, may magnify factors that affect the Fund's performance.
Shareholder Expense Example
As a shareholder, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or redemption proceeds, as applicable and (2) ongoing costs, which generally include management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in a fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (May 1, 2020 to October 31, 2020).
Actual Expenses
The first line of the accompanying table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class/Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. If any fund is a shareholder of any underlying mutual funds or exchange-traded funds (ETFs) (the Underlying Funds), such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses incurred presented in the table. These fees and expenses are not included in the annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. If any fund is a shareholder of any Underlying Funds, such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses as presented in the table. These fees and expenses are not included in the annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
Annualized Expense Ratio-A | Beginning Account Value May 1, 2020 | Ending Account Value October 31, 2020 | Expenses Paid During Period-B May 1, 2020 to October 31, 2020 | |
Fidelity Focused High Income Fund | .75% | |||
Actual | $1,000.00 | $1,067.10 | $3.91 | |
Hypothetical-C | $1,000.00 | $1,021.42 | $3.82 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/ 365 (to reflect the one-half year period). The fees and expenses of any Underlying Funds are not included in each annualized expense ratio.
C 5% return per year before expenses
Proxy Voting Results
A special meeting of shareholders was held on June 9, 2020. The results of votes taken among shareholders on the proposals before them are reported below. Each vote reported represents one dollar of net asset value held on the record date for the meeting.
PROPOSAL 1
To elect a Board of Trustees.
# of Votes | % of Votes | |
Dennis J. Dirks | ||
Affirmative | 16,477,844,543.945 | 94.954 |
Withheld | 875,616,757.045 | 5.046 |
TOTAL | 17,353,461,300.990 | 100.000 |
Donald F. Donahue | ||
Affirmative | 16,475,304,981.550 | 94.940 |
Withheld | 878,156,319.440 | 5.060 |
TOTAL | 17,353,461,300.990 | 100.000 |
Bettina Doulton | ||
Affirmative | 16,570,440,321.103 | 95.488 |
Withheld | 783,020,979.887 | 4.512 |
TOTAL | 17,353,461,300.990 | 100.000 |
Vicki L. Fuller | ||
Affirmative | 16,590,910,486.905 | 95.606 |
Withheld | 762,550,814.085 | 4.394 |
TOTAL | 17,353,461,300.990 | 100.00 |
Patricia L. Kampling | ||
Affirmative | 16,469,872,791.586 | 94.908 |
Withheld | 883,588,509.404 | 5.092 |
TOTAL | 17,353,461,300.990 | 100.000 |
Alan J. Lacy | ||
Affirmative | 16,344,655,183.636 | 94.187 |
Withheld | 1,008,806,117.354 | 5.813 |
TOTAL | 17,353,461,300.990 | 100.000 |
Ned C. Lautenbach | ||
Affirmative | 15,532,663,704.227 | 89.508 |
Withheld | 1,820,797,596.763 | 10.492 |
TOTAL | 17,353,461,300.990 | 100.000 |
Robert A. Lawrence | ||
Affirmative | 16,389,821,876.677 | 94.447 |
Withheld | 963,639,424.313 | 5.553 |
TOTAL | 17,353,461,300.990 | 100.000 |
Joseph Mauriello | ||
Affirmative | 16,363,427,626.626 | 94.295 |
Withheld | 990,033,674.365 | 5.705 |
TOTAL | 17,353,461,300.990 | 100.000 |
Cornelia M. Small | ||
Affirmative | 16,405,902,888.605 | 94.540 |
Withheld | 947,558,412.386 | 5.460 |
TOTAL | 17,353,461,300.990 | 100.000 |
Garnett A. Smith | ||
Affirmative | 16,371,912,270.945 | 94.344 |
Withheld | 981,549,030.045 | 5.656 |
TOTAL | 17,353,461,300.990 | 100.000 |
David M. Thomas | ||
Affirmative | 16,365,966,852.048 | 94.310 |
Withheld | 987,494,448.942 | 5.690 |
TOTAL | 17,353,461,300.990 | 100.000 |
Susan Tomasky | ||
Affirmative | 16,483,922,579.861 | 94.989 |
Withheld | 869,538,721.129 | 5.011 |
TOTAL | 17,353,461,300.990 | 100.000 |
Michael E. Wiley | ||
Affirmative | 16,379,083,262.890 | 94.385 |
Withheld | 974,378,038.101 | 5.615 |
TOTAL | 17,353,461,300.990 | 100.000 |
PROPOSAL 2
To convert a fundamental investment policy to a non-fundamental investment policy.
# of Votes | % of Votes | |
Affirmative | 153,396,100.574 | 71.934 |
Against | 32,003,972.649 | 15.008 |
Abstain | 23,132,540.110 | 10.848 |
Broker Non-Vote | 4,712,175.600 | 2.210 |
TOTAL | 213,244,788.934 | 100.000 |
Proposal 1 reflects trust wide proposal and voting results. |
FFH-SANN-1220
1.801609.117
Fidelity® Series High Income Fund
Semi-Annual Report
October 31, 2020
See the inside front cover for important information about access to your fund’s shareholder reports.
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of a fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a financial advisor, broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from a fund electronically, by contacting your financial intermediary. For Fidelity customers, visit Fidelity's web site or call Fidelity using the contact information listed below.
You may elect to receive all future reports in paper free of charge. If you wish to continue receiving paper copies of your shareholder reports, you may contact your financial intermediary or, if you are a Fidelity customer, visit Fidelity’s website, or call Fidelity at the applicable toll-free number listed below. Your election to receive reports in paper will apply to all funds held with the fund complex/your financial intermediary.
Account Type | Website | Phone Number |
Brokerage, Mutual Fund, or Annuity Contracts: | fidelity.com/mailpreferences | 1-800-343-3548 |
Employer Provided Retirement Accounts: | netbenefits.fidelity.com/preferences (choose 'no' under Required Disclosures to continue to print) | 1-800-343-0860 |
Advisor Sold Accounts Serviced Through Your Financial Intermediary: | Contact Your Financial Intermediary | Your Financial Intermediary's phone number |
Advisor Sold Accounts Serviced by Fidelity: | institutional.fidelity.com | 1-877-208-0098 |
Contents
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-800-544-8544 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. © 2020 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT. Forms N-PORT are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-PORT may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Note to Shareholders:
Early in 2020, the outbreak and spread of a new coronavirus emerged as a public health emergency that had a major influence on financial markets, primarily based on its impact on the global economy and the outlook for corporate earnings. The virus causes a respiratory disease known as COVID-19. On March 11, the World Health Organization declared the COVID-19 outbreak a pandemic, citing sustained risk of further global spread.
In the weeks following, as the crisis worsened, we witnessed an escalating human tragedy with wide-scale social and economic consequences from coronavirus-containment measures. The outbreak of COVID-19 prompted a number of measures to limit the spread, including travel and border restrictions, quarantines, and restrictions on large gatherings. In turn, these resulted in lower consumer activity, diminished demand for a wide range of products and services, disruption in manufacturing and supply chains, and – given the wide variability in outcomes regarding the outbreak – significant market uncertainty and volatility. Amid the turmoil, global governments and central banks took unprecedented action to help support consumers, businesses, and the broader economies, and to limit disruption to financial systems.
The situation continues to unfold, and the extent and duration of its impact on financial markets and the economy remain highly uncertain. Extreme events such as the coronavirus crisis are “exogenous shocks” that can have significant adverse effects on mutual funds and their investments. Although multiple asset classes may be affected by market disruption, the duration and impact may not be the same for all types of assets.
Fidelity is committed to helping you stay informed amid news about COVID-19 and during increased market volatility, and we’re taking extra steps to be responsive to customer needs. We encourage you to visit our websites, where we offer ongoing updates, commentary, and analysis on the markets and our funds.
Investment Summary (Unaudited)
Top Five Holdings as of October 31, 2020
(by issuer, excluding cash equivalents) | % of fund's net assets |
CCO Holdings LLC/CCO Holdings Capital Corp. | 2.9 |
TransDigm, Inc. | 2.6 |
C&W Senior Financing Designated Activity Co. | 2.4 |
Southeastern Grocers, Inc. | 2.0 |
Tenet Healthcare Corp. | 1.9 |
11.8 |
Top Five Market Sectors as of October 31, 2020
% of fund's net assets | |
Telecommunications | 13.0 |
Energy | 12.9 |
Healthcare | 7.1 |
Services | 6.7 |
Cable/Satellite TV | 6.4 |
Quality Diversification (% of fund's net assets)
As of October 31, 2020 | ||
BBB | 1.2% | |
BB | 37.9% | |
B | 40.8% | |
CCC,CC,C | 13.6% | |
Not Rated | 1.5% | |
Equities | 2.7% | |
Short-Term Investments and Net Other Assets | 2.3% |
We have used ratings from Moody's Investors Service, Inc. Where Moody's® ratings are not available, we have used S&P® ratings. All ratings are as of the date indicated and do not reflect subsequent changes.
Asset Allocation (% of fund's net assets)
As of October 31, 2020 * | ||
Nonconvertible Bonds | 92.7% | |
Convertible Bonds, Preferred Stocks | 0.9% | |
Common Stocks | 2.7% | |
Bank Loan Obligations | 1.3% | |
Other Investments | 0.1% | |
Short-Term Investments and Net Other Assets (Liabilities) | 2.3% |
* Foreign investments - 22.9%
Schedule of Investments October 31, 2020 (Unaudited)
Showing Percentage of Net Assets
Corporate Bonds - 93.6% | |||
Principal Amount | Value | ||
Convertible Bonds - 0.9% | |||
Broadcasting - 0.8% | |||
DISH Network Corp.: | |||
2.375% 3/15/24 | $5,404,000 | $4,854,115 | |
3.375% 8/15/26 | 9,285,000 | 8,207,101 | |
13,061,216 | |||
Energy - 0.1% | |||
Mesquite Energy, Inc. 15% 7/31/23 (a)(b) | 975,931 | 975,931 | |
TOTAL CONVERTIBLE BONDS | 14,037,147 | ||
Nonconvertible Bonds - 92.7% | |||
Aerospace - 5.5% | |||
Allegheny Technologies, Inc. 5.875% 12/1/27 | 6,400,000 | 6,024,000 | |
BBA U.S. Holdings, Inc. 5.375% 5/1/26 (c) | 7,334,000 | 7,407,340 | |
Bombardier, Inc.: | |||
6% 10/15/22 (c) | 1,560,000 | 1,415,700 | |
6.125% 1/15/23 (c) | 102,000 | 88,001 | |
7.5% 12/1/24 (c) | 315,000 | 237,036 | |
7.5% 3/15/25 (c) | 11,692,000 | 8,505,930 | |
7.875% 4/15/27 (c) | 2,013,000 | 1,466,410 | |
BWX Technologies, Inc.: | |||
4.125% 6/30/28 (c) | 3,035,000 | 3,065,350 | |
5.375% 7/15/26 (c) | 5,995,000 | 6,214,597 | |
Kaiser Aluminum Corp.: | |||
4.625% 3/1/28 (c) | 4,265,000 | 4,201,025 | |
6.5% 5/1/25 (c) | 1,655,000 | 1,754,300 | |
Moog, Inc. 4.25% 12/15/27 (c) | 3,715,000 | 3,812,519 | |
TransDigm UK Holdings PLC 6.875% 5/15/26 | 1,610,000 | 1,601,950 | |
TransDigm, Inc.: | |||
5.5% 11/15/27 | 16,920,000 | 16,518,150 | |
6.25% 3/15/26 (c) | 12,871,000 | 13,418,018 | |
6.5% 5/15/25 | 801,000 | 801,000 | |
7.5% 3/15/27 | 1,455,000 | 1,502,288 | |
8% 12/15/25 (c) | 7,155,000 | 7,736,344 | |
85,769,958 | |||
Automotive & Auto Parts - 0.8% | |||
Ford Motor Credit Co. LLC: | |||
3.087% 1/9/23 | 1,935,000 | 1,915,650 | |
3.219% 1/9/22 | 1,815,000 | 1,803,674 | |
3.339% 3/28/22 | 1,375,000 | 1,371,563 | |
4.687% 6/9/25 | 2,715,000 | 2,780,160 | |
5.113% 5/3/29 | 3,220,000 | 3,344,775 | |
5.125% 6/16/25 | 2,015,000 | 2,100,214 | |
13,316,036 | |||
Banks & Thrifts - 0.8% | |||
Ally Financial, Inc.: | |||
5.75% 11/20/25 | 8,360,000 | 9,500,360 | |
8% 11/1/31 | 2,332,000 | 3,217,530 | |
12,717,890 | |||
Broadcasting - 1.6% | |||
Netflix, Inc.: | |||
4.875% 4/15/28 | 2,305,000 | 2,592,434 | |
5.375% 11/15/29 (c) | 865,000 | 1,013,131 | |
5.875% 11/15/28 | 2,985,000 | 3,566,463 | |
6.375% 5/15/29 | 925,000 | 1,133,125 | |
Sirius XM Radio, Inc.: | |||
3.875% 8/1/22 (c) | 1,746,000 | 1,759,095 | |
4.125% 7/1/30 (c) | 985,000 | 1,012,590 | |
4.625% 7/15/24 (c) | 2,298,000 | 2,369,698 | |
5% 8/1/27 (c) | 4,558,000 | 4,774,505 | |
5.375% 7/15/26 (c) | 6,784,000 | 7,065,265 | |
25,286,306 | |||
Building Materials - 0.4% | |||
Advanced Drain Systems, Inc. 5% 9/30/27 (c) | 6,029,000 | 6,308,625 | |
Cable/Satellite TV - 6.4% | |||
CCO Holdings LLC/CCO Holdings Capital Corp.: | |||
4.5% 8/15/30 (c) | 2,885,000 | 2,996,794 | |
4.5% 5/1/32 (c) | 3,775,000 | 3,897,688 | |
4.75% 3/1/30 (c) | 4,755,000 | 5,001,547 | |
5% 2/1/28 (c) | 5,417,000 | 5,704,101 | |
5.125% 5/1/27 (c) | 5,123,000 | 5,379,150 | |
5.5% 5/1/26 (c) | 4,657,000 | 4,843,280 | |
5.75% 2/15/26 (c) | 7,889,000 | 8,178,211 | |
5.875% 5/1/27 (c) | 8,528,000 | 8,897,945 | |
CSC Holdings LLC: | |||
4.125% 12/1/30 (c) | 3,245,000 | 3,299,451 | |
5.25% 6/1/24 | 33,000 | 35,228 | |
5.5% 5/15/26 (c) | 1,888,000 | 1,964,464 | |
5.5% 4/15/27 (c) | 4,086,000 | 4,300,515 | |
5.75% 1/15/30 (c) | 2,685,000 | 2,870,386 | |
7.5% 4/1/28 (c) | 1,885,000 | 2,063,821 | |
DISH DBS Corp. 5.875% 11/15/24 | 68,000 | 68,410 | |
Dolya Holdco 18 DAC 5% 7/15/28 (c) | 3,880,000 | 3,870,338 | |
Radiate Holdco LLC/Radiate Financial Service Ltd.: | |||
4.5% 9/15/26 (c) | 4,065,000 | 4,085,325 | |
6.5% 9/15/28 (c) | 4,920,000 | 5,067,600 | |
Telenet Finance Luxembourg Notes SARL 5.5% 3/1/28 (c) | 5,400,000 | 5,670,000 | |
Virgin Media Finance PLC 5% 7/15/30 (c) | 3,645,000 | 3,626,775 | |
Virgin Media Secured Finance PLC: | |||
4.5% 8/15/30 (c)(d) | 3,280,000 | 3,333,300 | |
5.5% 8/15/26 (c) | 2,947,000 | 3,065,911 | |
Ziggo Bond Co. BV 5.125% 2/28/30 (c) | 3,605,000 | 3,704,138 | |
Ziggo BV 5.5% 1/15/27 (c) | 8,404,000 | 8,719,150 | |
100,643,528 | |||
Capital Goods - 0.5% | |||
Vertical U.S. Newco, Inc. 5.25% 7/15/27 (c) | 8,115,000 | 8,351,958 | |
Chemicals - 3.1% | |||
Axalta Coating Systems/Dutch Holding BV 4.75% 6/15/27 (c) | 3,675,000 | 3,849,563 | |
Blue Cube Spinco, Inc.: | |||
9.75% 10/15/23 | 14,000 | 14,333 | |
10% 10/15/25 | 124,000 | 130,930 | |
CF Industries Holdings, Inc.: | |||
4.95% 6/1/43 | 25,000 | 29,968 | |
5.15% 3/15/34 | 7,790,000 | 9,124,038 | |
5.375% 3/15/44 | 1,856,000 | 2,278,240 | |
Consolidated Energy Finance SA: | |||
3 month U.S. LIBOR + 3.750% 4.0004% 6/15/22 (c)(e)(f) | 389,000 | 371,803 | |
6.5% 5/15/26 (c) | 5,380,000 | 4,976,500 | |
6.875% 6/15/25 (c) | 475,000 | 441,750 | |
Methanex Corp.: | |||
5.125% 10/15/27 | 4,800,000 | 4,887,840 | |
5.65% 12/1/44 | 370,000 | 355,663 | |
Olin Corp.: | |||
5% 2/1/30 | 3,090,000 | 3,113,175 | |
5.125% 9/15/27 | 47,000 | 47,705 | |
5.625% 8/1/29 | 1,040,000 | 1,075,090 | |
The Chemours Co. LLC: | |||
5.375% 5/15/27 | 3,599,000 | 3,531,519 | |
6.625% 5/15/23 | 3,636,000 | 3,626,910 | |
7% 5/15/25 | 5,533,000 | 5,574,498 | |
Valvoline, Inc.: | |||
4.25% 2/15/30 (c) | 1,100,000 | 1,122,000 | |
4.375% 8/15/25 | 32,000 | 32,920 | |
W. R. Grace & Co.-Conn.: | |||
4.875% 6/15/27 (c) | 1,925,000 | 2,005,388 | |
5.625% 10/1/24 (c) | 1,513,000 | 1,630,560 | |
48,220,393 | |||
Consumer Products - 0.5% | |||
Mattel, Inc.: | |||
5.875% 12/15/27 (c) | 155,000 | 168,175 | |
6.75% 12/31/25 (c) | 7,323,000 | 7,701,965 | |
Prestige Brands, Inc. 6.375% 3/1/24 (c) | 14,000 | 14,315 | |
7,884,455 | |||
Containers - 1.7% | |||
Ardagh Packaging Finance PLC/Ardagh MP Holdings U.S.A., Inc.: | |||
4.125% 8/15/26 (c) | 160,000 | 163,200 | |
6% 2/15/25 (c) | 1,907,000 | 1,971,361 | |
Berry Global, Inc. 4.875% 7/15/26 (c) | 3,396,000 | 3,557,310 | |
Crown Americas LLC/Crown Americas Capital Corp. IV: | |||
4.5% 1/15/23 | 41,000 | 42,640 | |
4.75% 2/1/26 | 924,000 | 958,650 | |
Flex Acquisition Co., Inc.: | |||
6.875% 1/15/25 (c) | 7,499,000 | 7,377,141 | |
7.875% 7/15/26 (c) | 3,388,000 | 3,423,235 | |
Intelligent Packaging Ltd. Finco, Inc. 6% 9/15/28 (c) | 590,000 | 600,325 | |
OI European Group BV 4% 3/15/23 (c) | 66,000 | 66,330 | |
Owens-Brockway Glass Container, Inc. 5.375% 1/15/25 (c) | 161,000 | 168,245 | |
Reynolds Group Issuer, Inc./Reynolds Group Issuer LLC/Reynolds Group Issuer (Luxembourg) SA 5.125% 7/15/23 (c) | 218,000 | 220,725 | |
Silgan Holdings, Inc. 4.75% 3/15/25 | 23,000 | 23,460 | |
Trivium Packaging Finance BV: | |||
5.5% 8/15/26 (c) | 5,719,000 | 5,990,653 | |
8.5% 8/15/27 (c) | 1,685,000 | 1,803,287 | |
26,366,562 | |||
Diversified Financial Services - 2.6% | |||
Financial & Risk U.S. Holdings, Inc. 8.25% 11/15/26 (c) | 2,064,000 | 2,249,657 | |
Icahn Enterprises LP/Icahn Enterprises Finance Corp.: | |||
4.75% 9/15/24 | 4,960,000 | 5,044,717 | |
5.25% 5/15/27 | 220,000 | 227,657 | |
6.25% 5/15/26 | 3,535,000 | 3,667,563 | |
6.375% 12/15/25 | 6,562,000 | 6,726,116 | |
MSCI, Inc.: | |||
4.75% 8/1/26 (c) | 33,000 | 34,279 | |
5.375% 5/15/27 (c) | 110,000 | 117,425 | |
Navient Corp.: | |||
6.625% 7/26/21 | 79,000 | 80,580 | |
7.25% 1/25/22 | 1,067,000 | 1,101,678 | |
7.25% 9/25/23 | 3,232,000 | 3,389,560 | |
Quicken Loans, Inc. 5.25% 1/15/28 (c) | 4,724,000 | 4,937,808 | |
Springleaf Finance Corp.: | |||
6.875% 3/15/25 | 1,911,000 | 2,102,100 | |
7.125% 3/15/26 | 3,787,000 | 4,199,253 | |
VMED O2 UK Financing I PLC 4.25% 1/31/31 (c) | 7,460,000 | 7,460,000 | |
41,338,393 | |||
Diversified Media - 1.1% | |||
Nielsen Co. SARL (Luxembourg) 5% 2/1/25 (c) | 3,963,000 | 4,070,794 | |
Nielsen Finance LLC/Nielsen Finance Co.: | |||
5% 4/15/22 (c) | 2,636,000 | 2,637,318 | |
5.625% 10/1/28 (c) | 3,100,000 | 3,208,500 | |
5.875% 10/1/30 (c) | 3,085,000 | 3,243,106 | |
Terrier Media Buyer, Inc. 8.875% 12/15/27 (c) | 3,540,000 | 3,618,747 | |
16,778,465 | |||
Energy - 12.2% | |||
Apache Corp.: | |||
5.1% 9/1/40 | 1,465,000 | 1,344,892 | |
7.375% 8/15/47 | 515,000 | 496,975 | |
Cheniere Energy Partners LP: | |||
5.25% 10/1/25 | 25,422,000 | 25,879,596 | |
5.625% 10/1/26 | 2,413,000 | 2,473,325 | |
Cheniere Energy, Inc. 4.625% 10/15/28 (c) | 3,465,000 | 3,577,613 | |
Citgo Petroleum Corp. 6.25% 8/15/22 (c) | 6,536,000 | 6,127,500 | |
Comstock Resources, Inc. 9.75% 8/15/26 | 1,050,000 | 1,106,438 | |
Crestwood Midstream Partners LP/Crestwood Midstream Finance Corp.: | |||
5.625% 5/1/27 (c) | 11,489,000 | 10,067,236 | |
5.75% 4/1/25 | 5,985,000 | 5,393,981 | |
6.25% 4/1/23 | 8,761,000 | 8,492,081 | |
CVR Energy, Inc.: | |||
5.25% 2/15/25 (c) | 5,320,000 | 3,876,950 | |
5.75% 2/15/28 (c) | 680,000 | 464,100 | |
DCP Midstream Operating LP 5.375% 7/15/25 | 5,258,000 | 5,520,900 | |
Endeavor Energy Resources LP/EER Finance, Inc.: | |||
5.5% 1/30/26 (c) | 275,000 | 276,375 | |
5.75% 1/30/28 (c) | 2,778,000 | 2,882,175 | |
6.625% 7/15/25 (c) | 677,000 | 702,388 | |
EQM Midstream Partners LP 6.5% 7/1/27 (c) | 1,925,000 | 2,018,930 | |
Global Partners LP/GLP Finance Corp. 6.875% 1/15/29 (c) | 3,460,000 | 3,565,703 | |
Hess Midstream Partners LP: | |||
5.125% 6/15/28 (c) | 3,025,000 | 3,009,875 | |
5.625% 2/15/26 (c) | 6,665,000 | 6,665,000 | |
Hilcorp Energy I LP/Hilcorp Finance Co. 5% 12/1/24 (c) | 3,570,000 | 3,302,250 | |
Holly Energy Partners LP/Holly Energy Finance Corp. 5% 2/1/28 (c) | 4,665,000 | 4,361,775 | |
Jonah Energy LLC 7.25% 10/15/25 (c) | 9,408,000 | 305,760 | |
MEG Energy Corp. 7.125% 2/1/27 (c) | 1,810,000 | 1,628,511 | |
New Fortress Energy LLC 6.75% 9/15/25 (c) | 5,570,000 | 5,743,617 | |
Occidental Petroleum Corp.: | |||
2.9% 8/15/24 | 1,475,000 | 1,227,938 | |
3.4% 4/15/26 | 1,970,000 | 1,540,895 | |
3.5% 8/15/29 | 2,930,000 | 2,113,878 | |
4.2% 3/15/48 | 1,475,000 | 976,524 | |
4.3% 8/15/39 | 1,035,000 | 703,800 | |
4.4% 4/15/46 | 1,485,000 | 998,247 | |
4.4% 8/15/49 | 835,000 | 559,450 | |
5.55% 3/15/26 | 5,025,000 | 4,371,750 | |
6.2% 3/15/40 | 1,005,000 | 815,859 | |
6.45% 9/15/36 | 5,290,000 | 4,284,900 | |
7.5% 5/1/31 | 6,540,000 | 5,967,750 | |
7.875% 9/15/31 | 635,000 | 577,850 | |
8.875% 7/15/30 | 2,170,000 | 2,123,888 | |
PBF Holding Co. LLC/PBF Finance Corp.: | |||
7.25% 6/15/25 | 4,371,000 | 1,827,624 | |
9.25% 5/15/25 (c) | 4,230,000 | 3,754,125 | |
PBF Logistics LP/PBF Logistics Finance, Inc. 6.875% 5/15/23 | 100,000 | 78,500 | |
Rattler Midstream LP 5.625% 7/15/25 (c) | 5,460,000 | 5,610,150 | |
Sanchez Energy Corp. 7.25% 2/15/23 (b)(c)(g) | 10,580,000 | 1 | |
Sunoco LP/Sunoco Finance Corp.: | |||
4.875% 1/15/23 | 2,757,000 | 2,777,678 | |
5.5% 2/15/26 | 2,308,000 | 2,312,328 | |
5.875% 3/15/28 | 875,000 | 907,813 | |
6% 4/15/27 | 115,000 | 118,877 | |
Targa Resources Partners LP/Targa Resources Partners Finance Corp.: | |||
4.25% 11/15/23 | 4,313,000 | 4,312,547 | |
4.875% 2/1/31 (c) | 4,375,000 | 4,269,606 | |
5.125% 2/1/25 | 10,000 | 10,025 | |
5.375% 2/1/27 | 10,000 | 10,050 | |
5.5% 3/1/30 (c) | 845,000 | 850,015 | |
5.875% 4/15/26 | 9,481,000 | 9,670,620 | |
U.S.A. Compression Partners LP 6.875% 9/1/27 | 2,097,000 | 2,107,925 | |
Viper Energy Partners LP 5.375% 11/1/27 (c) | 4,037,000 | 4,120,566 | |
Weatherford International Ltd. 11% 12/1/24 (c) | 3,224,000 | 1,907,447 | |
Western Gas Partners LP: | |||
3.95% 6/1/25 | 730,000 | 677,535 | |
4% 7/1/22 | 790,000 | 790,000 | |
4.1% 2/1/25 | 3,005,000 | 2,831,071 | |
4.65% 7/1/26 | 1,150,000 | 1,104,000 | |
5.05% 2/1/30 | 5,100,000 | 4,838,192 | |
5.3% 3/1/48 | 1,535,000 | 1,235,675 | |
6.25% 2/1/50 | 540,000 | 496,017 | |
192,165,062 | |||
Environmental - 1.1% | |||
Darling Ingredients, Inc. 5.25% 4/15/27 (c) | 3,875,000 | 4,107,500 | |
LBC Tank Terminals Holding Netherlands BV 6.875% 5/15/23 (c) | 13,470,000 | 13,436,325 | |
17,543,825 | |||
Food/Beverage/Tobacco - 4.4% | |||
Chobani LLC/Finance Corp., Inc. 7.5% 4/15/25 (c) | 22,000 | 22,578 | |
Cott Holdings, Inc. 5.5% 4/1/25 (c) | 3,048,000 | 3,147,060 | |
H.J. Heinz Co. 5% 7/15/35 | 3,470,000 | 3,992,978 | |
JBS U.S.A. LLC/JBS U.S.A. Finance, Inc.: | |||
5.75% 6/15/25 (c) | 15,105,000 | 15,527,940 | |
6.75% 2/15/28 (c) | 11,672,000 | 12,837,216 | |
JBS U.S.A. Lux SA / JBS Food Co.: | |||
5.5% 1/15/30 (c) | 4,490,000 | 4,882,875 | |
6.5% 4/15/29 (c) | 9,811,000 | 11,012,848 | |
Performance Food Group, Inc.: | |||
5.5% 10/15/27 (c) | 3,085,000 | 3,162,125 | |
6.875% 5/1/25 (c) | 4,250,000 | 4,494,375 | |
Post Holdings, Inc.: | |||
4.625% 4/15/30 (c) | 1,290,000 | 1,323,863 | |
5.5% 12/15/29 (c) | 2,815,000 | 3,036,681 | |
TreeHouse Foods, Inc. 4% 9/1/28 | 2,445,000 | 2,448,056 | |
U.S. Foods, Inc.: | |||
5.875% 6/15/24 (c) | 90,000 | 89,663 | |
6.25% 4/15/25 (c) | 2,810,000 | 2,936,450 | |
68,914,708 | |||
Gaming - 6.1% | |||
Boyd Gaming Corp.: | |||
4.75% 12/1/27 | 1,933,000 | 1,879,862 | |
6% 8/15/26 | 3,636,000 | 3,725,773 | |
6.375% 4/1/26 | 3,693,000 | 3,831,783 | |
Caesars Entertainment, Inc.: | |||
6.25% 7/1/25 (c) | 5,725,000 | 5,878,115 | |
8.125% 7/1/27 (c) | 2,795,000 | 2,917,128 | |
Caesars Resort Collection LLC 5.25% 10/15/25 (c) | 10,030,000 | 9,539,734 | |
GLP Capital LP/GLP Financing II, Inc.: | |||
5.25% 6/1/25 | 3,642,000 | 3,978,812 | |
5.375% 4/15/26 | 1,221,000 | 1,356,091 | |
Golden Entertainment, Inc. 7.625% 4/15/26 (c) | 7,980,000 | 7,980,000 | |
Golden Nugget, Inc. 6.75% 10/15/24 (c) | 7,388,000 | 6,255,937 | |
MCE Finance Ltd.: | |||
4.875% 6/6/25 (c) | 2,855,000 | 2,869,095 | |
5.375% 12/4/29 (c) | 1,245,000 | 1,200,012 | |
5.75% 7/21/28 (c) | 1,800,000 | 1,795,415 | |
MGM Growth Properties Operating Partnership LP: | |||
4.5% 9/1/26 | 5,335,000 | 5,468,375 | |
4.5% 1/15/28 | 31,000 | 31,465 | |
4.625% 6/15/25 (c) | 955,000 | 972,629 | |
5.625% 5/1/24 | 2,742,000 | 2,886,503 | |
5.75% 2/1/27 | 1,434,000 | 1,547,480 | |
MGM Mirage, Inc. 5.75% 6/15/25 | 2,163,000 | 2,247,519 | |
Scientific Games Corp. 5% 10/15/25 (c) | 4,706,000 | 4,723,648 | |
Stars Group Holdings BV 7% 7/15/26 (c) | 3,833,000 | 4,051,960 | |
Station Casinos LLC: | |||
4.5% 2/15/28 (c) | 920,000 | 871,700 | |
5% 10/1/25 (c) | 1,655,000 | 1,646,725 | |
VICI Properties, Inc.: | |||
3.5% 2/15/25 (c) | 2,030,000 | 2,024,925 | |
4.25% 12/1/26 (c) | 2,955,000 | 3,004,792 | |
4.625% 12/1/29 (c) | 3,990,000 | 4,145,650 | |
Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp. 5.25% 5/15/27 (c) | 3,289,000 | 3,040,845 | |
Wynn Macau Ltd.: | |||
4.875% 10/1/24 (c) | 3,137,000 | 3,058,575 | |
5.5% 10/1/27 (c) | 2,575,000 | 2,410,071 | |
95,340,619 | |||
Healthcare - 7.1% | |||
Avantor Funding, Inc. 4.625% 7/15/28 (c) | 4,885,000 | 5,061,837 | |
Avantor, Inc. 6% 10/1/24 (c) | 247,000 | 258,090 | |
Catalent Pharma Solutions 4.875% 1/15/26 (c) | 1,007,000 | 1,027,140 | |
Centene Corp.: | |||
4.25% 12/15/27 | 1,595,000 | 1,678,738 | |
5.375% 8/15/26 (c) | 5,965,000 | 6,307,988 | |
Charles River Laboratories International, Inc.: | |||
4.25% 5/1/28 (c) | 472,000 | 493,240 | |
5.5% 4/1/26 (c) | 2,695,000 | 2,816,275 | |
Community Health Systems, Inc.: | |||
6.25% 3/31/23 | 523,000 | 518,424 | |
8% 3/15/26 (c) | 10,019,000 | 10,059,076 | |
8.625% 1/15/24 (c) | 3,242,000 | 3,290,630 | |
CTR Partnership LP/CareTrust Capital Corp. 5.25% 6/1/25 | 4,651,000 | 4,790,530 | |
DaVita HealthCare Partners, Inc. 4.625% 6/1/30 (c) | 5,235,000 | 5,324,754 | |
HCA Holdings, Inc.: | |||
5.375% 2/1/25 | 265,000 | 293,442 | |
5.375% 9/1/26 | 3,032,000 | 3,407,210 | |
Hologic, Inc.: | |||
3.25% 2/15/29 (c) | 3,405,000 | 3,422,025 | |
4.625% 2/1/28 (c) | 6,000 | 6,270 | |
IMS Health, Inc. 5% 5/15/27 (c) | 4,387,000 | 4,595,383 | |
Radiology Partners, Inc. 9.25% 2/1/28 (c) | 2,845,000 | 3,032,713 | |
Teleflex, Inc.: | |||
4.25% 6/1/28 (c) | 930,000 | 971,850 | |
4.875% 6/1/26 | 3,382,000 | 3,517,280 | |
Tenet Healthcare Corp.: | |||
4.625% 7/15/24 | 3,581,000 | 3,641,525 | |
4.625% 6/15/28 (c) | 1,165,000 | 1,181,747 | |
4.875% 1/1/26 (c) | 2,570,000 | 2,607,087 | |
5.125% 5/1/25 | 2,027,000 | 2,006,122 | |
6.125% 10/1/28 (c) | 4,810,000 | 4,671,713 | |
6.25% 2/1/27 (c) | 6,226,000 | 6,464,487 | |
6.75% 6/15/23 | 414,000 | 436,580 | |
7% 8/1/25 | 9,720,000 | 9,938,700 | |
U.S. Renal Care, Inc. 10.625% 7/15/27 (c) | 2,095,000 | 2,231,175 | |
Valeant Pharmaceuticals International, Inc.: | |||
5.5% 11/1/25 (c) | 3,916,000 | 4,022,907 | |
5.875% 5/15/23 (c) | 94,000 | 93,765 | |
7% 3/15/24 (c) | 285,000 | 295,331 | |
8.5% 1/31/27 (c) | 2,946,000 | 3,221,215 | |
9% 12/15/25 (c) | 4,871,000 | 5,322,542 | |
9.25% 4/1/26 (c) | 4,165,000 | 4,591,913 | |
Vizient, Inc. 6.25% 5/15/27 (c) | 385,000 | 407,138 | |
112,006,842 | |||
Homebuilders/Real Estate - 1.0% | |||
Howard Hughes Corp. 5.375% 3/15/25 (c) | 5,982,000 | 5,989,478 | |
MPT Operating Partnership LP/MPT Finance Corp.: | |||
5.25% 8/1/26 | 2,072,000 | 2,149,700 | |
5.5% 5/1/24 | 1,713,000 | 1,734,413 | |
6.375% 3/1/24 | 2,694,000 | 2,757,848 | |
Starwood Property Trust, Inc.: | |||
4.75% 3/15/25 | 3,421,000 | 3,318,370 | |
5% 12/15/21 | 98,000 | 97,510 | |
16,047,319 | |||
Hotels - 0.5% | |||
Hilton Domestic Operating Co., Inc.: | |||
4.25% 9/1/24 | 2,236,000 | 2,223,702 | |
5.125% 5/1/26 | 5,924,000 | 5,998,050 | |
Hilton Worldwide Finance LLC/Hilton Worldwide Finance Corp. 4.875% 4/1/27 | 12,000 | 12,140 | |
Wyndham Hotels & Resorts, Inc. 5.375% 4/15/26 (c) | 38,000 | 38,475 | |
8,272,367 | |||
Insurance - 2.5% | |||
Alliant Holdings Intermediate LLC: | |||
4.25% 10/15/27 (c) | 445,000 | 441,663 | |
6.75% 10/15/27 (c) | 14,585,000 | 15,314,250 | |
AmWINS Group, Inc. 7.75% 7/1/26 (c) | 10,082,000 | 10,762,535 | |
HUB International Ltd. 7% 5/1/26 (c) | 3,770,000 | 3,864,250 | |
USI, Inc. 6.875% 5/1/25 (c) | 9,449,000 | 9,614,358 | |
39,997,056 | |||
Metals/Mining - 1.1% | |||
First Quantum Minerals Ltd.: | |||
6.5% 3/1/24 (c) | 2,641,000 | 2,621,193 | |
7.25% 4/1/23 (c) | 6,245,000 | 6,278,177 | |
FMG Resources (August 2006) Pty Ltd. 4.5% 9/15/27 (c) | 65,000 | 69,610 | |
Freeport-McMoRan, Inc.: | |||
3.55% 3/1/22 | 16,000 | 16,240 | |
3.875% 3/15/23 | 2,066,000 | 2,134,178 | |
Nufarm Australia Ltd. 5.75% 4/30/26 (c) | 5,812,000 | 5,870,120 | |
16,989,518 | |||
Restaurants - 1.1% | |||
1011778 BC Unlimited Liability Co./New Red Finance, Inc.: | |||
4% 10/15/30 (c) | 5,035,000 | 5,009,825 | |
4.25% 5/15/24 (c) | 4,770,000 | 4,867,785 | |
5% 10/15/25 (c) | 932,000 | 955,393 | |
5.75% 4/15/25 (c) | 1,340,000 | 1,427,797 | |
Yum! Brands, Inc. 7.75% 4/1/25 (c) | 5,105,000 | 5,607,587 | |
17,868,387 | |||
Services - 6.7% | |||
AECOM 5.125% 3/15/27 | 2,960,000 | 3,237,352 | |
APX Group, Inc. 6.75% 2/15/27 (c) | 3,440,000 | 3,586,200 | |
Aramark Services, Inc.: | |||
4.75% 6/1/26 | 265,000 | 263,344 | |
5% 4/1/25 (c) | 3,171,000 | 3,218,787 | |
5% 2/1/28 (c) | 15,670,000 | 15,808,836 | |
6.375% 5/1/25 (c) | 9,035,000 | 9,476,631 | |
Ascend Learning LLC: | |||
6.875% 8/1/25 (c) | 793,000 | 805,886 | |
6.875% 8/1/25 (c) | 5,259,000 | 5,423,896 | |
ASGN, Inc. 4.625% 5/15/28 (c) | 1,770,000 | 1,820,073 | |
Booz Allen Hamilton, Inc. 3.875% 9/1/28 (c) | 4,820,000 | 4,892,300 | |
Brand Energy & Infrastructure Services, Inc. 8.5% 7/15/25 (c) | 8,652,000 | 8,130,284 | |
CoreCivic, Inc.: | |||
4.625% 5/1/23 | 1,337,000 | 1,223,355 | |
5% 10/15/22 | 5,682,000 | 5,440,515 | |
Fair Isaac Corp. 5.25% 5/15/26 (c) | 1,581,000 | 1,754,910 | |
Frontdoor, Inc. 6.75% 8/15/26 (c) | 1,942,000 | 2,073,085 | |
Gartner, Inc. 3.75% 10/1/30 (c) | 1,600,000 | 1,636,160 | |
GEMS MENASA Cayman Ltd. 7.125% 7/31/26 (c) | 7,846,000 | 7,769,992 | |
Laureate Education, Inc. 8.25% 5/1/25 (c) | 5,945,000 | 6,332,673 | |
Service Corp. International 5.125% 6/1/29 | 2,272,000 | 2,482,910 | |
Sotheby's 7.375% 10/15/27 (c) | 4,990,000 | 5,110,359 | |
Tempo Acquisition LLC: | |||
5.75% 6/1/25 (c) | 2,340,000 | 2,451,150 | |
6.75% 6/1/25 (c) | 8,188,000 | 8,308,773 | |
The GEO Group, Inc.: | |||
5.875% 10/15/24 | 1,116,000 | 772,930 | |
6% 4/15/26 | 4,190,000 | 2,722,243 | |
104,742,644 | |||
Super Retail - 1.2% | |||
EG Global Finance PLC: | |||
6.75% 2/7/25 (c) | 3,560,000 | 3,488,800 | |
8.5% 10/30/25 (c) | 6,085,000 | 6,224,955 | |
The William Carter Co. 5.625% 3/15/27 (c) | 4,251,000 | 4,460,893 | |
Wolverine World Wide, Inc. 6.375% 5/15/25 (c) | 4,100,000 | 4,366,500 | |
18,541,148 | |||
Technology - 4.6% | |||
Banff Merger Sub, Inc. 9.75% 9/1/26 (c) | 1,765,000 | 1,855,192 | |
Black Knight InfoServ LLC 3.625% 9/1/28 (c) | 4,235,000 | 4,287,938 | |
Boxer Parent Co., Inc. 7.125% 10/2/25 (c) | 1,385,000 | 1,484,886 | |
Camelot Finance SA 4.5% 11/1/26 (c) | 3,870,000 | 4,024,800 | |
CDK Global, Inc.: | |||
4.875% 6/1/27 | 15,000 | 15,545 | |
5.25% 5/15/29 (c) | 745,000 | 799,162 | |
5.875% 6/15/26 | 2,899,000 | 3,018,584 | |
Entegris, Inc. 4.375% 4/15/28 (c) | 3,105,000 | 3,229,200 | |
Gartner, Inc. 4.5% 7/1/28 (c) | 2,505,000 | 2,615,120 | |
Match Group Holdings II LLC 4.125% 8/1/30 (c) | 1,135,000 | 1,159,119 | |
Northwest Fiber LLC/Northwest Fiber Finance Sub, Inc. 10.75% 6/1/28 (c) | 4,845,000 | 5,474,850 | |
Nuance Communications, Inc. 5.625% 12/15/26 | 4,915,000 | 5,160,750 | |
ON Semiconductor Corp. 3.875% 9/1/28 (c) | 1,875,000 | 1,907,813 | |
Open Text Corp. 3.875% 2/15/28 (c) | 2,815,000 | 2,859,421 | |
Rackspace Hosting, Inc. 8.625% 11/15/24 (c) | 15,576,000 | 16,218,510 | |
Sensata Technologies BV 5% 10/1/25 (c) | 64,000 | 69,865 | |
SS&C Technologies, Inc. 5.5% 9/30/27 (c) | 7,899,000 | 8,395,294 | |
TTM Technologies, Inc. 5.625% 10/1/25 (c) | 9,454,000 | 9,713,985 | |
72,290,034 | |||
Telecommunications - 12.2% | |||
Altice Financing SA 7.5% 5/15/26 (c) | 12,375,000 | 12,916,406 | |
Altice France Holding SA 6% 2/15/28 (c) | 7,170,000 | 6,877,070 | |
C&W Senior Financing Designated Activity Co.: | |||
6.875% 9/15/27 (c) | 22,054,000 | 23,222,862 | |
7.5% 10/15/26 (c) | 13,208,000 | 13,907,892 | |
Cablevision Lightpath LLC: | |||
3.875% 9/15/27 (c) | 765,000 | 759,263 | |
5.625% 9/15/28 (c) | 605,000 | 611,050 | |
Century Telephone Enterprises, Inc. 6.875% 1/15/28 | 260,000 | 288,600 | |
CenturyLink, Inc.: | |||
5.125% 12/15/26 (c) | 8,125,000 | 8,307,813 | |
5.625% 4/1/25 | 2,775,000 | 2,913,750 | |
Cogent Communications Group, Inc. 5.375% 3/1/22 (c) | 2,531,000 | 2,575,293 | |
Communications Sales & Leasing, Inc. 8.25% 10/15/23 | 2,885,000 | 2,841,725 | |
Frontier Communications Corp. 5.875% 10/15/27 (c) | 1,455,000 | 1,482,281 | |
Intelsat Jackson Holdings SA 8% 2/15/24 (c) | 13,055,000 | 13,250,825 | |
Level 3 Financing, Inc.: | |||
3.625% 1/15/29 (c) | 565,000 | 546,638 | |
4.25% 7/1/28 (c) | 3,945,000 | 3,964,725 | |
Millicom International Cellular SA: | |||
4.5% 4/27/31 (c) | 240,000 | 243,600 | |
5.125% 1/15/28 (c) | 4,000,000 | 4,197,500 | |
6.625% 10/15/26 (c) | 7,662,000 | 8,274,960 | |
Sable International Finance Ltd. 5.75% 9/7/27 (c) | 830,000 | 879,800 | |
SFR Group SA: | |||
5.125% 1/15/29 (c) | 4,525,000 | 4,517,873 | |
7.375% 5/1/26 (c) | 15,724,000 | 16,411,139 | |
8.125% 2/1/27 (c) | 7,717,000 | 8,392,238 | |
Sprint Capital Corp.: | |||
6.875% 11/15/28 | 6,215,000 | 7,854,206 | |
8.75% 3/15/32 | 3,550,000 | 5,311,688 | |
Sprint Corp. 7.875% 9/15/23 | 1,515,000 | 1,728,994 | |
T-Mobile U.S.A., Inc.: | |||
3.75% 4/15/27 (c) | 4,165,000 | 4,641,351 | |
3.875% 4/15/30 (c) | 4,165,000 | 4,678,794 | |
4.5% 2/1/26 | 32,000 | 32,800 | |
Telecom Italia Capital SA 6% 9/30/34 | 2,727,000 | 3,172,865 | |
Uniti Group, Inc.: | |||
7.125% 12/15/24 (c) | 6,260,000 | 5,985,468 | |
7.875% 2/15/25 (c) | 14,425,000 | 15,290,500 | |
Zayo Group Holdings, Inc.: | |||
4% 3/1/27 (c) | 2,600,000 | 2,551,887 | |
6.125% 3/1/28 (c) | 3,040,000 | 3,066,600 | |
191,698,456 | |||
Transportation Ex Air/Rail - 0.3% | |||
XPO Logistics, Inc. 6.25% 5/1/25 (c) | 5,145,000 | 5,468,209 | |
Utilities - 5.6% | |||
Clearway Energy Operating LLC: | |||
4.75% 3/15/28 (c) | 955,000 | 1,003,944 | |
5% 9/15/26 | 1,810,000 | 1,870,870 | |
5.75% 10/15/25 | 25,000 | 26,188 | |
DCP Midstream Operating LP: | |||
5.125% 5/15/29 | 6,994,000 | 6,954,764 | |
5.625% 7/15/27 | 3,920,000 | 4,062,688 | |
Global Partners LP/GLP Finance Corp. 7% 8/1/27 | 4,632,000 | 4,768,320 | |
InterGen NV 7% 6/30/23 (c) | 15,134,000 | 14,301,630 | |
NextEra Energy Partners LP: | |||
4.25% 9/15/24 (c) | 4,580,000 | 4,797,550 | |
4.5% 9/15/27 (c) | 8,000 | 8,740 | |
NRG Energy, Inc.: | |||
5.25% 6/15/29 (c) | 3,365,000 | 3,646,819 | |
5.75% 1/15/28 | 4,384,000 | 4,715,540 | |
6.625% 1/15/27 | 38,000 | 39,995 | |
7.25% 5/15/26 | 21,000 | 22,197 | |
NSG Holdings II LLC/NSG Holdings, Inc. 7.75% 12/15/25 (c) | 2,655,034 | 2,814,336 | |
Pattern Energy Operations LP 4.5% 8/15/28 (c) | 1,350,000 | 1,407,551 | |
PG&E Corp. 5.25% 7/1/30 | 4,955,000 | 4,955,000 | |
Pike Corp. 5.5% 9/1/28 (c) | 5,677,000 | 5,805,925 | |
Talen Energy Supply LLC 10.5% 1/15/26 (c) | 1,831,000 | 1,267,968 | |
TerraForm Power Operating LLC: | |||
4.25% 1/31/23 (c) | 2,904,000 | 2,954,820 | |
5% 1/31/28 (c) | 1,355,000 | 1,487,553 | |
The AES Corp.: | |||
4.5% 3/15/23 | 20,000 | 20,100 | |
5.125% 9/1/27 | 1,756,000 | 1,883,459 | |
6% 5/15/26 | 208,000 | 217,947 | |
Vistra Operations Co. LLC: | |||
5% 7/31/27 (c) | 6,324,000 | 6,608,580 | |
5.5% 9/1/26 (c) | 8,542,000 | 8,840,970 | |
5.625% 2/15/27 (c) | 3,595,000 | 3,747,788 | |
88,231,242 | |||
TOTAL NONCONVERTIBLE BONDS | 1,459,100,005 | ||
TOTAL CORPORATE BONDS | |||
(Cost $1,470,209,951) | 1,473,137,152 | ||
Shares | Value | ||
Common Stocks - 2.7% | |||
Energy - 0.6% | |||
California Resources Corp. (h) | 8,061 | 108,017 | |
California Resources Corp. (a) | 8,455 | 101,967 | |
California Resources Corp. warrants 10/27/24 (h) | 2,871 | 0 | |
Denbury, Inc. (h) | 460,577 | 7,640,972 | |
Sanchez Energy Corp. (b) | 52,695 | 1,356,903 | |
Weatherford International PLC (h)(i) | 24,110 | 50,390 | |
TOTAL ENERGY | 9,258,249 | ||
Food & Drug Retail - 2.0% | |||
Southeastern Grocers, Inc. (b)(h) | 436,231 | 31,849,198 | |
Metals/Mining - 0.0% | |||
Elah Holdings, Inc. (b)(h) | 333 | 26,307 | |
Telecommunications - 0.1% | |||
Crown Castle International Corp. | 12,766 | 1,994,049 | |
TOTAL COMMON STOCKS | |||
(Cost $33,300,053) | 43,127,803 | ||
Principal Amount | Value | ||
Bank Loan Obligations - 1.3% | |||
Cable/Satellite TV - 0.0% | |||
WideOpenWest Finance LLC Tranche B, term loan 3 month U.S. LIBOR + 3.250% 4.25% 8/19/23 (e)(f)(j) | 430,561 | 421,054 | |
Energy - 0.0% | |||
Gavilan Resources LLC Tranche 2LN, term loan 3 month U.S. LIBOR + 6.000% 0% 3/1/24 (f)(g)(j) | 7,786,000 | 48,663 | |
Sanchez Energy Corp.: | |||
1LN, term loan 3 month U.S. LIBOR + 8.000% 0% 12/31/49 (b)(f)(g)(j) | 2,735,146 | 0 | |
term loan 3 month U.S. LIBOR + 0.000% 0% 12/31/49 (b)(f)(g)(j) | 1,217,000 | 0 | |
TOTAL ENERGY | 48,663 | ||
Gaming - 0.3% | |||
Golden Entertainment, Inc. Tranche B, term loan 3 month U.S. LIBOR + 3.000% 3.75% 10/20/24 (e)(f)(j) | 700,000 | 674,625 | |
Golden Nugget, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.500% 3.25% 10/4/23 (e)(f)(j) | 4,931,127 | 4,333,228 | |
TOTAL GAMING | 5,007,853 | ||
Insurance - 0.2% | |||
HUB International Ltd. Tranche B, term loan 3 month U.S. LIBOR + 3.000% 3.2147% 4/25/25 (e)(f)(j) | 3,789,746 | 3,639,256 | |
Services - 0.0% | |||
Almonde, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.500% 4.5% 6/13/24 (e)(f)(j) | 346,241 | 326,235 | |
Technology - 0.2% | |||
Ultimate Software Group, Inc. 1LN, term loan 3 month U.S. LIBOR + 4.000% 4.75% 5/3/26 (e)(f)(j) | 2,120,000 | 2,105,436 | |
Telecommunications - 0.6% | |||
Intelsat Jackson Holdings SA: | |||
Tranche B, term loan 3 month U.S. LIBOR + 3.750% 8% 11/27/23 (e)(f)(j) | 5,360,000 | 5,379,350 | |
Tranche B-4, term loan 3 month U.S. LIBOR + 5.500% 8.75% 1/2/24 (e)(f)(j) | 475,000 | 476,914 | |
Tranche DD 1LN, term loan 3 month U.S. LIBOR + 5.500% 5.05% 7/13/22 (e)(f)(j)(k) | 3,638,451 | 3,693,027 | |
TOTAL TELECOMMUNICATIONS | 9,549,291 | ||
TOTAL BANK LOAN OBLIGATIONS | |||
(Cost $27,343,386) | 21,097,788 | ||
Preferred Securities - 0.1% | |||
Energy - 0.1% | |||
Summit Midstream Partners LP 9.5% (Cost $3,467,765)(e)(l) | 3,512,000 | 679,850 | |
Shares | Value | ||
Money Market Funds - 1.9% | |||
Fidelity Cash Central Fund 0.10% (m) | 29,735,684 | 29,741,631 | |
Fidelity Securities Lending Cash Central Fund 0.11% (m)(n) | 31,947 | 31,950 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $29,773,581) | 29,773,581 | ||
TOTAL INVESTMENT IN SECURITIES - 99.6% | |||
(Cost $1,564,094,736) | 1,567,816,174 | ||
NET OTHER ASSETS (LIABILITIES) - 0.4% | 5,937,212 | ||
NET ASSETS - 100% | $1,573,753,386 |
Legend
(a) Restricted securities (including private placements) - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $1,077,898 or 0.1% of net assets.
(b) Level 3 security
(c) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $1,062,674,211 or 67.5% of net assets.
(d) Security or a portion of the security purchased on a delayed delivery or when-issued basis.
(e) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end.
(f) Coupon is indexed to a floating interest rate which may be multiplied by a specified factor and/or subject to caps or floors.
(g) Non-income producing - Security is in default.
(h) Non-income producing
(i) Security or a portion of the security is on loan at period end.
(j) Remaining maturities of bank loan obligations may be less than the stated maturities shown as a result of contractual or optional prepayments by the borrower. Such prepayments cannot be predicted with certainty.
(k) Position or a portion of the position represents an unfunded loan commitment. At period end, the total principal amount and market value of unfunded commitments totaled $1,819,225 and $1,846,514, respectively.
(l) Security is perpetual in nature with no stated maturity date.
(m) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
(n) Investment made with cash collateral received from securities on loan.
Additional information on each restricted holding is as follows:
Security | Acquisition Date | Acquisition Cost |
California Resources Corp. | 10/27/20 | $54,440 |
Mesquite Energy, Inc. 15% 7/31/23 | 7/10/20 - 10/15/20 | $975,931 |
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
Fidelity Cash Central Fund | $20,992 |
Fidelity Securities Lending Cash Central Fund | 244 |
Total | $21,236 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable. Amount for Fidelity Securities Lending Cash Central Fund represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities.
Investment Valuation
The following is a summary of the inputs used, as of October 31, 2020, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Equities: | ||||
Consumer Staples | $31,849,198 | $-- | $-- | $31,849,198 |
Energy | 9,258,249 | 7,799,379 | 101,967 | 1,356,903 |
Materials | 26,307 | -- | -- | 26,307 |
Real Estate | 1,994,049 | 1,994,049 | -- | -- |
Corporate Bonds | 1,473,137,152 | -- | 1,472,161,220 | 975,932 |
Bank Loan Obligations | 21,097,788 | -- | 21,097,788 | -- |
Preferred Securities | 679,850 | -- | 679,850 | -- |
Money Market Funds | 29,773,581 | 29,773,581 | -- | -- |
Total Investments in Securities: | $1,567,816,174 | $39,567,009 | $1,494,040,825 | $34,208,340 |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value:
Investments in Securities: | |
Equities - Consumer Staples | |
Beginning Balance | $17,689,167 |
Net Realized Gain (Loss) on Investment Securities | -- |
Net Unrealized Gain (Loss) on Investment Securities | 14,160,031 |
Cost of Purchases | -- |
Proceeds of Sales | -- |
Amortization/Accretion | -- |
Transfers into Level 3 | -- |
Transfers out of Level 3 | -- |
Ending Balance | $31,849,198 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at October 31, 2020 | $14,160,031 |
Equities - Other Investments in Securities | |
Beginning Balance | $3,161,717 |
Net Realized Gain (Loss) on Investment Securities | (1,785,292) |
Net Unrealized Gain (Loss) on Investment Securities | 1,098,647 |
Cost of Purchases | 4,706,020 |
Proceeds of Sales | (4,805,697) |
Amortization/Accretion | (139,369) |
Transfers into Level 3 | 123,116 |
Transfers out of Level 3 | -- |
Ending Balance | $2,359,142 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at October 31, 2020 | $(1,762,253) |
The information used in the above reconciliations represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Cost of purchases and proceeds of sales may include securities received and/or delivered through in-kind transactions. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliation{s} are included in Net Gain (Loss) on the Fund's Statement of Operations.
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
United States of America | 77.1% |
Luxembourg | 4.9% |
Canada | 3.4% |
Netherlands | 3.3% |
Multi-National | 3.2% |
Ireland | 2.6% |
France | 1.8% |
United Kingdom | 1.8% |
Cayman Islands | 1.4% |
Others (Individually Less Than 1%) | 0.5% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
October 31, 2020 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $29,678) — See accompanying schedule: Unaffiliated issuers (cost $1,534,321,155) | $1,538,042,593 | |
Fidelity Central Funds (cost $29,773,581) | 29,773,581 | |
Total Investment in Securities (cost $1,564,094,736) | $1,567,816,174 | |
Cash | 1,254,531 | |
Receivable for fund shares sold | 164,759 | |
Interest receivable | 23,205,660 | |
Distributions receivable from Fidelity Central Funds | 2,346 | |
Other receivables | 95 | |
Total assets | 1,592,443,565 | |
Liabilities | ||
Payable for investments purchased | ||
Regular delivery | $10,714,189 | |
Delayed delivery | 3,345,600 | |
Payable for fund shares redeemed | 4,590,497 | |
Other payables and accrued expenses | 7,943 | |
Collateral on securities loaned | 31,950 | |
Total liabilities | 18,690,179 | |
Net Assets | $1,573,753,386 | |
Net Assets consist of: | ||
Paid in capital | $1,918,038,210 | |
Total accumulated earnings (loss) | (344,284,824) | |
Net Assets | $1,573,753,386 | |
Net Asset Value, offering price and redemption price per share ($1,573,753,386 ÷ 173,077,308 shares) | $9.09 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended October 31, 2020 (Unaudited) | ||
Investment Income | ||
Dividends | $379,381 | |
Interest | 43,912,454 | |
Income from Fidelity Central Funds (including $244 from security lending) | 21,236 | |
Total income | 44,313,071 | |
Expenses | ||
Custodian fees and expenses | $9,981 | |
Independent trustees' fees and expenses | 4,283 | |
Interest | 336 | |
Miscellaneous | 1,008 | |
Total expenses before reductions | 15,608 | |
Expense reductions | (7,933) | |
Total expenses after reductions | 7,675 | |
Net investment income (loss) | 44,305,396 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | (18,427,470) | |
Fidelity Central Funds | 302 | |
Total net realized gain (loss) | (18,427,168) | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 114,479,744 | |
Fidelity Central Funds | (4,029) | |
Total change in net unrealized appreciation (depreciation) | 114,475,715 | |
Net gain (loss) | 96,048,547 | |
Net increase (decrease) in net assets resulting from operations | $140,353,943 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended October 31, 2020 (Unaudited) | Year ended April 30, 2020 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $44,305,396 | $96,869,192 |
Net realized gain (loss) | (18,427,168) | (30,157,124) |
Change in net unrealized appreciation (depreciation) | 114,475,715 | (135,778,017) |
Net increase (decrease) in net assets resulting from operations | 140,353,943 | (69,065,949) |
Distributions to shareholders | (42,993,078) | (100,751,571) |
Share transactions | ||
Proceeds from sales of shares | 29,685,186 | 238,271,398 |
Reinvestment of distributions | 42,992,607 | 100,586,768 |
Cost of shares redeemed | (87,817,734) | (188,249,664) |
Net increase (decrease) in net assets resulting from share transactions | (15,139,941) | 150,608,502 |
Total increase (decrease) in net assets | 82,220,924 | (19,209,018) |
Net Assets | ||
Beginning of period | 1,491,532,462 | 1,510,741,480 |
End of period | $1,573,753,386 | $1,491,532,462 |
Other Information | ||
Shares | ||
Sold | 3,299,110 | 25,321,877 |
Issued in reinvestment of distributions | 4,755,140 | 10,832,064 |
Redeemed | (9,726,672) | (20,475,888) |
Net increase (decrease) | (1,672,422) | 15,678,053 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Series High Income Fund
Six months ended (Unaudited) October 31, | Years endedApril 30, | |||||
2020 | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $8.54 | $9.50 | $9.56 | $9.68 | $8.96 | $9.87 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .255 | .577 | .607 | .623 | .557 | .550 |
Net realized and unrealized gain (loss) | .542 | (.935) | (.051) | (.141) | .687 | (.867) |
Total from investment operations | .797 | (.358) | .556 | .482 | 1.244 | (.317) |
Distributions from net investment income | (.247) | (.598) | (.616) | (.602) | (.524) | (.546) |
Distributions from net realized gain | – | (.004) | – | – | – | (.047) |
Total distributions | (.247) | (.602) | (.616) | (.602) | (.524) | (.593) |
Net asset value, end of period | $9.09 | $8.54 | $9.50 | $9.56 | $9.68 | $8.96 |
Total ReturnB,C | 9.38% | (4.11)% | 6.12% | 5.08% | 14.25% | (3.08)% |
Ratios to Average Net AssetsD,E | ||||||
Expenses before reductions | - %F,G | - %G | - %G | .06% | .69% | .69% |
Expenses net of fee waivers, if any | - %F,G | - %G | - %G | .05% | .69% | .69% |
Expenses net of all reductions | - %F,G | - %G | - %G | .05% | .69% | .69% |
Net investment income (loss) | 5.60%F | 6.20% | 6.44% | 6.44% | 6.00% | 6.07% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $1,573,753 | $1,491,532 | $1,510,741 | $2,883,805 | $1,285,072 | $2,417,317 |
Portfolio turnover rateH | 52%F | 41%I | 69% | 49% | 44% | 34% |
A Calculated based on average shares outstanding during the period.
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Fees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment advisor, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
F Annualized
G Amount represents less than .005%.
H Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
I Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended October 31, 2020
1. Organization.
Fidelity Series High Income Fund (the Fund) is a fund of Fidelity Summer Street Trust (the Trust) and is authorized to issue an unlimited number of shares. Shares are offered only to certain other Fidelity funds and Fidelity managed 529 plans. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date ranged from less than .005% to .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investment Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the investments to the Fair Value Committee (the Committee) established by the investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. Corporate bonds, bank loan obligations and preferred securities are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances. The Fund invests a significant portion of its assets in below investment grade securities. The value of these securities can be more volatile due to changes in the credit quality of the issuer and is sensitive to changes in economic, market and regulatory conditions.
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy. Securities, including private placements or other restricted securities, for which observable inputs are not available are valued using alternate valuation approaches, including the market approach, the income approach and cost approach, and are categorized as Level 3 in the hierarchy. The market approach considers factors including the price of recent investments in the same or a similar security or financial metrics of comparable securities. The income approach considers factors including expected future cash flows, security specific risks and corresponding discount rates. The cost approach considers factors including the value of the security's underlying assets and liabilities.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
The following provides information on Level 3 securities held by the Fund that were valued at period end based on unobservable inputs. These amounts exclude valuations provided by a broker.
Asset Type | Fair Value | Valuation Technique (s) | Unobservable Input | Amount or Range / Weighted Average | Impact to Valuation from an Increase in Input(a) |
Equities | $33,206,129 | Market comparable | Discount rate | 20.0% | Decrease |
Discounted cash flow | Discount rate | 8.1% | Decrease | ||
Discount for lack of marketability | 10.0% | Decrease | |||
Growth rate | 1.5% | Increase | |||
Book value | Book value multiple | 4.5 | Increase | ||
Corporate Bonds | $975,932 | Recovery value | Recovery value | 0.0% | Increase |
Broker Quoted | Bid price | $98.75 | Increase | ||
Bank Loan Obligations | $ - | Recovery value | Recovery value | 0.0% | Increase |
(a) Represents the directional change in the fair value of the Level 3 investments that could have resulted from an increase in the corresponding input as of period end. A decrease to the unobservable input would have had the opposite effect. Significant changes in these inputs may have resulted in a significantly higher or lower fair value measurement at period end.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of October 31, 2020, as well as a roll forward of Level 3 investments, 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. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Debt obligations may be placed on non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivables when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is reasonably assured.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction.
Distributions are declared and recorded daily and paid monthly from net investment income. Distributions from realized gains, if any, are declared and recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to defaulted bonds, market discount, certain conversion ratio adjustments, equity-debt classifications, partnerships, capital loss carryforwards and losses deferred due to wash sales.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
Gross unrealized appreciation | $76,254,587 |
Gross unrealized depreciation | (66,533,110) |
Net unrealized appreciation (depreciation) | $9,721,477 |
Tax cost | $1,558,094,697 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of prior fiscal period end and is subject to adjustment.
No expiration | |
Short-term | $(26,835,436) |
Long-term | (311,280,038) |
Total capital loss carryforward | $(338,115,474) |
Delayed Delivery Transactions and When-Issued Securities. During the period, certain Funds transacted in securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. Securities purchased on a delayed delivery or when-issued basis are identified as such in the Schedule of Investments. Compensation for interest forgone in the purchase of a delayed delivery or when-issued debt security may be received. With respect to purchase commitments, each applicable Fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Payables and receivables associated with the purchases and sales of delayed delivery securities having the same coupon, settlement date and broker are offset. Delayed delivery or when-issued securities that have been purchased from and sold to different brokers are reflected as both payables and receivables in the Statement of Assets and Liabilities under the caption "Delayed delivery", as applicable. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.
Restricted Securities (including Private Placements). The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
Loans and Other Direct Debt Instruments. Direct debt instruments are interests in amounts owed to lenders by corporate or other borrowers. These instruments may be in the form of loans, trade claims or other receivables and may include standby financing commitments such as revolving credit facilities that obligate a fund to supply additional cash to the borrower on demand. Loans may be acquired through assignment, participation, or may be made directly to a borrower. Such instruments are presented in the Bank Loan Obligations section in the Schedule of Investments. Certain funds may also invest in unfunded loan commitments, which are contractual obligations for future funding. Information regarding unfunded commitments is included at the end of the Schedule of Investments, if applicable.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities are noted in the table below.
Purchases ($) | Sales ($) | |
Fidelity Series High Income Fund | 417,688,117 | 403,370,250 |
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company LLC (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund does not pay a management fee. Under the management contract, the investment adviser or an affiliate pays all ordinary operating expenses of the Fund, except custody fees, fees and expenses of the independent Trustees, and certain miscellaneous expenses such as proxy and shareholder meeting expenses.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with Fidelity Management & Research Company LLC (FMR), or other affiliated entities of FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the Fund to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. Activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Loan Balance | Weighted Average Interest Rate | Interest Expense | |
Fidelity Series High Income Fund | Borrower | $7,239,600 | .33% | $336 |
Interfund Trades. Funds may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
Prior Fiscal Year Affiliated Exchanges In-Kind. During the prior period, the Fund received investments, including accrued interest, and cash valued at $112,256,713 in exchange for 11,804,071 shares of the Fund. The amount of in-kind exchanges is included in share transactions in the accompanying Statement of Changes in Net Assets.
6. Committed Line of Credit.
Certain Funds participate with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The participating funds have agreed to pay commitment fees on their pro-rata portion of the line of credit, which are reflected in Miscellaneous expenses on the Statement of Operations, and are as follows:
Amount | |
Fidelity Series High Income Fund | $1,733 |
During the period, there were no borrowings on this line of credit.
7. Security Lending.
Funds lend portfolio securities from time to time in order to earn additional income. Lending agents are used, including National Financial Services (NFS), an affiliate of the investment adviser. Pursuant to a securities lending agreement, NFS will receive a fee, which is capped at 9.9% of a fund's daily lending revenue, for its services as lending agent. A fund may lend securities to certain qualified borrowers, including NFS. On the settlement date of the loan, a fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of a fund and any additional required collateral is delivered to a fund on the next business day. A fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund may apply collateral received from the borrower against the obligation. A fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. Any loaned securities are identified as such in the Schedule of Investments, and the value of loaned securities and cash collateral at period end, as applicable, are presented in the Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Affiliated security lending activity, if any, was as follows:
Total Security Lending Income Fees Paid to NFS | Security Lending Income From Securities Loaned to NFS | Value of Securities Loaned to NFS at Period End | |
Fidelity Series High Income Fund | $22 | $– | $– |
8. Expense Reductions.
Through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses by $7,933.
9. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
At the end of the period, mutual funds and accounts managed by the investment adviser or its affiliates were the owners of record of all of the outstanding shares of the Fund.
10. Coronavirus (COVID-19) Pandemic.
An outbreak of COVID-19 first detected in China during December 2019 has since spread globally and was declared a pandemic by the World Health Organization during March 2020. Developments that disrupt global economies and financial markets, such as the COVID-19 pandemic, may magnify factors that affect the Fund's performance.
Shareholder Expense Example
As a shareholder, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or redemption proceeds, as applicable and (2) ongoing costs, which generally include management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in a fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (May 1, 2020 to October 31, 2020).
Actual Expenses
The first line of the accompanying table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class/Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. If any fund is a shareholder of any underlying mutual funds or exchange-traded funds (ETFs) (the Underlying Funds), such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses incurred presented in the table. These fees and expenses are not included in the annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. If any fund is a shareholder of any Underlying Funds, such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses as presented in the table. These fees and expenses are not included in the annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
Annualized Expense Ratio-A | Beginning Account Value May 1, 2020 | Ending Account Value October 31, 2020 | Expenses Paid During Period-B May 1, 2020 to October 31, 2020 | |
Fidelity Series High Income Fund | - %-C | |||
Actual | $1,000.00 | $1,093.80 | $--D | |
Hypothetical-E | $1,000.00 | $1,025.21 | $--D |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/ 365 (to reflect the one-half year period). The fees and expenses of any Underlying Funds are not included in each annualized expense ratio.
C Amount represents less than .005%.
D Amount represents less than $.005.
E 5% return per year before expenses
Proxy Voting Results
A special meeting of shareholders was held on June 9, 2020. The results of votes taken among shareholders on the proposals before them are reported below. Each vote reported represents one dollar of net asset value held on the record date for the meeting.
PROPOSAL 1
To elect a Board of Trustees.
# of Votes | % of Votes | |
Dennis J. Dirks | ||
Affirmative | 16,477,844,543.945 | 94.954 |
Withheld | 875,616,757.045 | 5.046 |
TOTAL | 17,353,461,300.990 | 100.000 |
Donald F. Donahue | ||
Affirmative | 16,475,304,981.550 | 94.940 |
Withheld | 878,156,319.440 | 5.060 |
TOTAL | 17,353,461,300.990 | 100.000 |
Bettina Doulton | ||
Affirmative | 16,570,440,321.103 | 95.488 |
Withheld | 783,020,979.887 | 4.512 |
TOTAL | 17,353,461,300.990 | 100.000 |
Vicki L. Fuller | ||
Affirmative | 16,590,910,486.905 | 95.606 |
Withheld | 762,550,814.085 | 4.394 |
TOTAL | 17,353,461,300.990 | 100.00 |
Patricia L. Kampling | ||
Affirmative | 16,469,872,791.586 | 94.908 |
Withheld | 883,588,509.404 | 5.092 |
TOTAL | 17,353,461,300.990 | 100.000 |
Alan J. Lacy | ||
Affirmative | 16,344,655,183.636 | 94.187 |
Withheld | 1,008,806,117.354 | 5.813 |
TOTAL | 17,353,461,300.990 | 100.000 |
Ned C. Lautenbach | ||
Affirmative | 15,532,663,704.227 | 89.508 |
Withheld | 1,820,797,596.763 | 10.492 |
TOTAL | 17,353,461,300.990 | 100.000 |
Robert A. Lawrence | ||
Affirmative | 16,389,821,876.677 | 94.447 |
Withheld | 963,639,424.313 | 5.553 |
TOTAL | 17,353,461,300.990 | 100.000 |
Joseph Mauriello | ||
Affirmative | 16,363,427,626.626 | 94.295 |
Withheld | 990,033,674.365 | 5.705 |
TOTAL | 17,353,461,300.990 | 100.000 |
Cornelia M. Small | ||
Affirmative | 16,405,902,888.605 | 94.540 |
Withheld | 947,558,412.386 | 5.460 |
TOTAL | 17,353,461,300.990 | 100.000 |
Garnett A. Smith | ||
Affirmative | 16,371,912,270.945 | 94.344 |
Withheld | 981,549,030.045 | 5.656 |
TOTAL | 17,353,461,300.990 | 100.000 |
David M. Thomas | ||
Affirmative | 16,365,966,852.048 | 94.310 |
Withheld | 987,494,448.942 | 5.690 |
TOTAL | 17,353,461,300.990 | 100.000 |
Susan Tomasky | ||
Affirmative | 16,483,922,579.861 | 94.989 |
Withheld | 869,538,721.129 | 5.011 |
TOTAL | 17,353,461,300.990 | 100.000 |
Michael E. Wiley | ||
Affirmative | 16,379,083,262.890 | 94.385 |
Withheld | 974,378,038.101 | 5.615 |
TOTAL | 17,353,461,300.990 | 100.000 |
PROPOSAL 2
To convert a fundamental investment policy to a non-fundamental investment policy.
# of Votes | % of Votes | |
Affirmative | 1,500,900,781.485 | 100.000 |
Against | 0.000 | 0.000 |
Abstain | 0.000 | 0.000 |
Broker Non-Vote | 0.000 | 0.000 |
TOTAL | 1,500,900,781.485 | 100.000 |
Proposal 1 reflects trust wide proposal and voting results. |
FSH-SANN-1220
1.924273.109
Fidelity® Global High Income Fund
Semi-Annual Report
October 31, 2020
Includes Fidelity and Fidelity Advisor share classes
See the inside front cover for important information about access to your fund’s shareholder reports.
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of a fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a financial advisor, broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from a fund electronically, by contacting your financial intermediary. For Fidelity customers, visit Fidelity's web site or call Fidelity using the contact information listed below.
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Contents
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Note to Shareholders:
Early in 2020, the outbreak and spread of a new coronavirus emerged as a public health emergency that had a major influence on financial markets, primarily based on its impact on the global economy and the outlook for corporate earnings. The virus causes a respiratory disease known as COVID-19. On March 11, the World Health Organization declared the COVID-19 outbreak a pandemic, citing sustained risk of further global spread.
In the weeks following, as the crisis worsened, we witnessed an escalating human tragedy with wide-scale social and economic consequences from coronavirus-containment measures. The outbreak of COVID-19 prompted a number of measures to limit the spread, including travel and border restrictions, quarantines, and restrictions on large gatherings. In turn, these resulted in lower consumer activity, diminished demand for a wide range of products and services, disruption in manufacturing and supply chains, and – given the wide variability in outcomes regarding the outbreak – significant market uncertainty and volatility. Amid the turmoil, global governments and central banks took unprecedented action to help support consumers, businesses, and the broader economies, and to limit disruption to financial systems.
The situation continues to unfold, and the extent and duration of its impact on financial markets and the economy remain highly uncertain. Extreme events such as the coronavirus crisis are “exogenous shocks” that can have significant adverse effects on mutual funds and their investments. Although multiple asset classes may be affected by market disruption, the duration and impact may not be the same for all types of assets.
Fidelity is committed to helping you stay informed amid news about COVID-19 and during increased market volatility, and we’re taking extra steps to be responsive to customer needs. We encourage you to visit our websites, where we offer ongoing updates, commentary, and analysis on the markets and our funds.
Investment Summary (Unaudited)
Top Five Holdings as of October 31, 2020
(by issuer, excluding cash equivalents) | % of fund's net assets |
Ally Financial, Inc. | 1.5 |
Citigroup, Inc. | 1.3 |
CCO Holdings LLC/CCO Holdings Capital Corp. | 1.2 |
First Quantum Minerals Ltd. | 1.1 |
Sprint Capital Corp. | 1.1 |
6.2 |
Top Five Countries as of October 31, 2020
(excluding cash equivalents) | % of fund's net assets |
United States of America | 47.2 |
Cayman Islands | 7.0 |
Netherlands | 5.6 |
Luxembourg | 4.8 |
Canada | 2.8 |
Top Five Market Sectors as of October 31, 2020
% of fund's net assets | |
Energy | 13.7 |
Telecommunications | 8.5 |
Homebuilders/Real Estate | 6.8 |
Banks & Thrifts | 6.4 |
Utilities | 5.8 |
Quality Diversification (% of fund's net assets)
As of October 31, 2020 | ||
AAA,AA,A | 0.3% | |
BBB | 5.9% | |
BB | 37.0% | |
B | 32.0% | |
CCC,CC,C | 12.7% | |
D | 0.1% | |
Not Rated | 3.2% | |
Equities | 2.3% | |
Short-Term Investments and Net Other Assets | 6.5% |
We have used ratings from Moody's Investors Service, Inc. Where Moody's® ratings are not available, we have used S&P® ratings. All ratings are as of the date indicated and do not reflect subsequent changes.
Asset Allocation (% of fund's net assets)
As of October 31, 2020 * | ||
Corporate Bonds | 80.9% | |
Government Obligations | 0.5% | |
Stocks | 2.3% | |
Preferred Securities | 6.4% | |
Other Investments | 3.4% | |
Short-Term Investments and Net Other Assets (Liabilities) | 6.5% |
* Foreign investments - 46.3%
Schedule of Investments October 31, 2020 (Unaudited)
Showing Percentage of Net Assets
Corporate Bonds - 80.9% | |||
Principal Amount(a) | Value | ||
Convertible Bonds - 0.9% | |||
Broadcasting - 0.5% | |||
DISH Network Corp.: | |||
2.375% 3/15/24 | $120,000 | $107,789 | |
3.375% 8/15/26 | 392,000 | 346,493 | |
454,282 | |||
Diversified Financial Services - 0.1% | |||
Nexi SpA 1.75% 4/24/27 (Reg. S) | EUR | 100,000 | 130,633 |
Energy - 0.0% | |||
Mesquite Energy, Inc. 15% 7/31/23 (b)(c) | 22,882 | 22,882 | |
Technology - 0.3% | |||
ams AG 2.125% 11/3/27 (Reg. S) | EUR | 200,000 | 227,689 |
TOTAL CONVERTIBLE BONDS | 835,486 | ||
Nonconvertible Bonds - 80.0% | |||
Aerospace - 1.9% | |||
Allegheny Technologies, Inc. 5.875% 12/1/27 | 70,000 | 65,888 | |
BBA U.S. Holdings, Inc.: | |||
4% 3/1/28 (d) | 55,000 | 53,188 | |
5.375% 5/1/26 (d) | 40,000 | 40,400 | |
Bombardier, Inc.: | |||
7.5% 12/1/24 (d) | 96,000 | 72,240 | |
7.875% 4/15/27 (d) | 260,000 | 189,402 | |
BWX Technologies, Inc. 5.375% 7/15/26 (d) | 65,000 | 67,381 | |
DAE Funding LLC 4.5% 8/1/22 (d) | 50,000 | 50,391 | |
Moog, Inc. 4.25% 12/15/27 (d) | 20,000 | 20,525 | |
Rolls-Royce PLC: | |||
4.625% 2/16/26 (Reg. S) | EUR | 100,000 | 116,462 |
5.75% 10/15/27 (d) | 55,000 | 55,688 | |
TransDigm UK Holdings PLC 6.875% 5/15/26 | 200,000 | 199,000 | |
TransDigm, Inc.: | |||
5.5% 11/15/27 | 455,000 | 444,194 | |
6.25% 3/15/26 (d) | 25,000 | 26,063 | |
7.5% 3/15/27 | 285,000 | 294,263 | |
Wolverine Escrow LLC 8.5% 11/15/24 (d) | 45,000 | 35,044 | |
1,730,129 | |||
Air Transportation - 0.9% | |||
Aerovias de Mexico SA de CV 7% 2/5/25 (d)(e) | 200,000 | 46,438 | |
Azul Investments LLP 5.875% 10/26/24 (d) | 365,000 | 288,483 | |
International Consolidated Airlines Group SA 0.5% 7/4/23 (Reg. S) | EUR | 100,000 | 94,337 |
Mileage Plus Holdings LLC 6.5% 6/20/27 (d) | 55,000 | 57,269 | |
Rumo Luxembourg SARL 7.375% 2/9/24 (d) | 200,000 | 208,813 | |
Spirit Loyalty Cayman Ltd. / Spirit IP Cayman Ltd. 8% 9/20/25 (d) | 65,000 | 68,900 | |
Western Global Airlines LLC 10.375% 8/15/25 (d) | 60,000 | 62,099 | |
826,339 | |||
Automotive & Auto Parts - 2.1% | |||
Faurecia SA 3.75% 6/15/28 (Reg. S) | EUR | 205,000 | 241,785 |
Fiat Chrysler Automobiles NV 4.5% 7/7/28 (Reg. S) | EUR | 313,000 | 422,777 |
Ford Motor Co.: | |||
9% 4/22/25 | 120,000 | 141,407 | |
9.625% 4/22/30 | 40,000 | 53,700 | |
Ford Motor Credit Co. LLC: | |||
3.087% 1/9/23 | 200,000 | 198,000 | |
5.125% 6/16/25 | 170,000 | 177,189 | |
5.875% 8/2/21 | 115,000 | 117,438 | |
Jaguar Land Rover PLC 7.75% 10/15/25 (d) | 35,000 | 34,913 | |
LKQ European Holdings BV 3.625% 4/1/26 | EUR | 100,000 | 117,887 |
Metalsa SA de CV 4.9% 4/24/23 (d) | 150,000 | 150,656 | |
Novem Group GmbH 3 month EURIBOR + 5.250% 5.25% 5/15/24 (Reg. S) (f)(g) | EUR | 100,000 | 111,658 |
Volvo Car AB 2.125% 4/2/24 (Reg. S) | EUR | 100,000 | 117,338 |
Winnebago Industries, Inc. 6.25% 7/15/28 (d) | 45,000 | 47,588 | |
1,932,336 | |||
Banks & Thrifts - 2.8% | |||
Ally Financial, Inc.: | |||
8% 11/1/31 | 155,000 | 211,542 | |
8% 11/1/31 | 868,000 | 1,197,548 | |
Banca Monte dei Paschi di Siena SpA 5.375% 1/18/28 (f) | EUR | 100,000 | 89,981 |
Banco de Reservas de La Republica Dominicana 7% 2/1/23 (d) | 150,000 | 153,563 | |
Banco de Sabadell SA 5.625% 5/6/26 (Reg. S) | EUR | 100,000 | 123,066 |
Biz Finance PLC 9.625% 4/27/22 (d) | 37,500 | 38,355 | |
Georgia Bank Joint Stock Co. 6% 7/26/23 (d) | 200,000 | 205,438 | |
Industrial Senior Trust 5.5% 11/1/22 (d) | 200,000 | 208,600 | |
TBC Bank JSC 5.75% 6/19/24 (d) | 200,000 | 201,313 | |
Turkiye Sinai Kalkinma Bankasi A/S 6% 1/23/25 (d) | 200,000 | 185,688 | |
2,615,094 | |||
Broadcasting - 1.8% | |||
AMC Networks, Inc.: | |||
4.75% 12/15/22 | 66,000 | 66,000 | |
4.75% 8/1/25 | 125,000 | 124,812 | |
Cable Onda SA 4.5% 1/30/30 (d) | 200,000 | 211,813 | |
E.W. Scripps Co. 5.125% 5/15/25 (d) | 30,000 | 28,613 | |
Entercom Media Corp. 6.5% 5/1/27 (d) | 40,000 | 34,803 | |
Netflix, Inc.: | |||
3.625% 6/15/30 (Reg. S) | EUR | 100,000 | 126,771 |
3.875% 11/15/29 (Reg. S) | EUR | 200,000 | 258,203 |
5.875% 11/15/28 | 140,000 | 167,271 | |
Nexstar Broadcasting, Inc. 5.625% 7/15/27 (d) | 75,000 | 78,188 | |
Scripps Escrow, Inc. 5.875% 7/15/27 (d) | 60,000 | 58,350 | |
Sirius XM Radio, Inc.: | |||
4.125% 7/1/30 (d) | 75,000 | 77,101 | |
4.625% 7/15/24 (d) | 100,000 | 103,120 | |
5% 8/1/27 (d) | 65,000 | 68,088 | |
Tegna, Inc. 5% 9/15/29 | 85,000 | 86,063 | |
TV Azteca SA de CV 8.25% 8/9/24 (Reg. S) | 200,000 | 121,313 | |
Univision Communications, Inc. 6.625% 6/1/27 (d) | 110,000 | 111,238 | |
1,721,747 | |||
Building Materials - 0.7% | |||
Advanced Drain Systems, Inc. 5% 9/30/27 (d) | 315,000 | 329,610 | |
CEMEX S.A.B. de CV 5.45% 11/19/29 (d) | 200,000 | 211,560 | |
HMAN Finance Sub Corp. 6.375% 7/15/22 (d) | 100,000 | 98,750 | |
639,920 | |||
Cable/Satellite TV - 3.9% | |||
Altice France Holding SA 8% 5/15/27 (d) | EUR | 175,000 | 213,495 |
CCO Holdings LLC/CCO Holdings Capital Corp.: | |||
4.5% 8/15/30 (d) | 95,000 | 98,681 | |
4.75% 3/1/30 (d) | 140,000 | 147,259 | |
5.125% 5/1/27 (d) | 725,000 | 761,250 | |
5.75% 2/15/26 (d) | 65,000 | 67,383 | |
CSC Holdings LLC: | |||
3.375% 2/15/31 (d) | 75,000 | 72,132 | |
4.625% 12/1/30 (d) | 75,000 | 74,980 | |
5.375% 2/1/28 (d) | 165,000 | 175,313 | |
5.5% 4/15/27 (d) | 115,000 | 121,038 | |
5.75% 1/15/30 (d) | 100,000 | 106,905 | |
6.5% 2/1/29 (d) | 165,000 | 183,071 | |
7.5% 4/1/28 (d) | 230,000 | 251,819 | |
DISH DBS Corp.: | |||
5% 3/15/23 | 250,000 | 250,938 | |
7.75% 7/1/26 | 185,000 | 196,097 | |
Radiate Holdco LLC/Radiate Financial Service Ltd.: | |||
4.5% 9/15/26 (d) | 150,000 | 150,750 | |
6.5% 9/15/28 (d) | 110,000 | 113,300 | |
UPC Holding BV 3.875% 6/15/29 (Reg. S) | EUR | 100,000 | 112,389 |
Virgin Media Secured Finance PLC 5.5% 5/15/29 (d) | 170,000 | 181,630 | |
Ziggo Bond Co. BV: | |||
5.125% 2/28/30 (d) | 35,000 | 35,963 | |
6% 1/15/27 (d) | 160,000 | 166,000 | |
Ziggo BV: | |||
4.25% 1/15/27 (Reg. S) | EUR | 90,000 | 107,491 |
4.875% 1/15/30 (d) | 50,000 | 51,844 | |
3,639,728 | |||
Capital Goods - 0.1% | |||
Vertical Holdco GmbH 6.625% 7/15/28 (Reg. S) | EUR | 100,000 | 119,863 |
Chemicals - 3.3% | |||
Braskem Idesa SAPI 7.45% 11/15/29 (d) | 250,000 | 236,380 | |
Braskem Netherlands BV 4.5% 1/31/30 (d) | 200,000 | 184,710 | |
CF Industries Holdings, Inc.: | |||
4.95% 6/1/43 | 175,000 | 209,773 | |
5.15% 3/15/34 | 100,000 | 117,125 | |
5.375% 3/15/44 | 225,000 | 276,188 | |
Compass Minerals International, Inc. 6.75% 12/1/27 (d) | 140,000 | 151,861 | |
Consolidated Energy Finance SA: | |||
3 month U.S. LIBOR + 3.750% 4.0004% 6/15/22 (d)(f)(g) | 320,000 | 305,853 | |
6.5% 5/15/26 (d) | 185,000 | 171,125 | |
6.875% 6/15/25 (d) | 200,000 | 186,000 | |
CTC BondCo GmbH 5.25% 12/15/25 | EUR | 200,000 | 224,121 |
MEGlobal Canada, Inc. 5% 5/18/25 (d) | 200,000 | 217,500 | |
OCI NV 5.25% 11/1/24 (d) | 110,000 | 112,475 | |
SPCM SA 2.625% 2/1/29 (Reg. S) | EUR | 101,000 | 117,336 |
The Chemours Co. LLC: | |||
5.375% 5/15/27 | 240,000 | 235,500 | |
6.625% 5/15/23 | 65,000 | 64,838 | |
7% 5/15/25 | 130,000 | 130,975 | |
Valeant Pharmaceuticals International, Inc. 6.25% 2/15/29 (d) | 40,000 | 41,222 | |
Valvoline, Inc. 4.25% 2/15/30 (d) | 45,000 | 45,900 | |
W. R. Grace & Co.-Conn. 4.875% 6/15/27 (d) | 70,000 | 72,923 | |
3,101,805 | |||
Consumer Products - 0.4% | |||
Central Garden & Pet Co. 4.125% 10/15/30 | 35,000 | 35,394 | |
Prosus NV 4.027% 8/3/50 (d) | 200,000 | 207,500 | |
TripAdvisor, Inc. 7% 7/15/25 (d) | 35,000 | 36,409 | |
Walnut Bidco PLC 6.75% 8/1/24 (Reg. S) | EUR | 100,000 | 112,407 |
391,710 | |||
Containers - 0.4% | |||
ARD Finance SA 6.5% 6/30/27 pay-in-kind (d)(f) | 70,000 | 71,138 | |
Ardagh Packaging Finance PLC/Ardagh MP Holdings U.S.A., Inc. 6% 2/15/25 (d) | 50,000 | 51,688 | |
Ball Corp. 4.875% 3/15/26 | 85,000 | 94,563 | |
Berry Global, Inc. 4.875% 7/15/26 (d) | 40,000 | 41,900 | |
CANPACK SA and Eastern PA Land Investment Holding LLC 3.125% 11/1/25 (d) | 35,000 | 35,438 | |
Graham Packaging Co., Inc. 7.125% 8/15/28 (d) | 30,000 | 31,350 | |
Intelligent Packaging Ltd. Finco, Inc. 6% 9/15/28 (d) | 20,000 | 20,350 | |
Plastipak Holdings, Inc. 6.25% 10/15/25 (d) | 20,000 | 20,025 | |
Trivium Packaging Finance BV 5.5% 8/15/26 (d) | 40,000 | 41,900 | |
408,352 | |||
Diversified Financial Services - 3.0% | |||
Altice France Holding SA 10.5% 5/15/27 (d) | 130,000 | 143,325 | |
Comcel Trust 6.875% 2/6/24 (d) | 220,000 | 224,950 | |
Diamond Sports Group LLC/Diamond Sports Finance Co. 5.375% 8/15/26 (d) | 70,000 | 40,775 | |
FLY Leasing Ltd. 5.25% 10/15/24 | 35,000 | 29,050 | |
Ford Credit Europe PLC 1.615% 5/11/23 (Reg. S) | EUR | 200,000 | 226,233 |
Fortune Star (BVI) Ltd.: | |||
6.75% 7/2/23 (Reg. S) | 200,000 | 206,875 | |
6.85% 7/2/24 (Reg. S) | 200,000 | 207,563 | |
Garfunkelux Holdco 3 SA: | |||
3 month EURIBOR + 3.500% 3.5% 9/1/23 (Reg. S) (f)(g) | EUR | 100,000 | 116,174 |
7.5% 8/1/22 (Reg. S) | EUR | 100,000 | 116,290 |
HTA Group Ltd. 7% 12/18/25 (d) | 200,000 | 208,960 | |
Icahn Enterprises LP/Icahn Enterprises Finance Corp.: | |||
4.75% 9/15/24 | 90,000 | 91,537 | |
5.25% 5/15/27 | 90,000 | 93,133 | |
6.25% 5/15/26 | 260,000 | 269,750 | |
6.375% 12/15/25 | 215,000 | 220,377 | |
Lincoln Financing SARL 3.625% 4/1/24 (Reg. S) | EUR | 125,000 | 138,302 |
Nexi SpA 1.75% 10/31/24 (Reg. S) | EUR | 100,000 | 116,000 |
Park Aerospace Holdings Ltd. 4.5% 3/15/23 (d) | 20,000 | 20,227 | |
Springleaf Finance Corp.: | |||
6.875% 3/15/25 | 75,000 | 82,500 | |
8.875% 6/1/25 | 75,000 | 82,500 | |
Verisure Holding AB 3.875% 7/15/26 (Reg. S) | EUR | 125,000 | 145,035 |
Yihua Overseas Investment Ltd. 8.5% 12/31/49 (Reg. S) (e) | 200,000 | 20,100 | |
2,799,656 | |||
Diversified Media - 0.4% | |||
Allen Media LLC 10.5% 2/15/28 (d) | 70,000 | 67,900 | |
CBS Corp.: | |||
5.875% 2/28/57 (f) | 33,000 | 33,330 | |
6.25% 2/28/57 (f) | 90,000 | 97,875 | |
Lamar Media Corp. 4.875% 1/15/29 | 45,000 | 46,800 | |
Terrier Media Buyer, Inc. 8.875% 12/15/27 (d) | 90,000 | 92,002 | |
337,907 | |||
Energy - 12.3% | |||
Antero Midstream Partners LP/Antero Midstream Finance Corp.: | |||
5.75% 3/1/27 (d) | 140,000 | 126,000 | |
5.75% 1/15/28 (d) | 60,000 | 53,400 | |
Apache Corp.: | |||
4.625% 11/15/25 | 55,000 | 52,250 | |
4.875% 11/15/27 | 135,000 | 126,698 | |
Archrock Partners LP / Archrock Partners Finance Corp. 6.25% 4/1/28 (d) | 70,000 | 67,550 | |
Cenovus Energy, Inc. 5.375% 7/15/25 | 55,000 | 57,956 | |
Cheniere Corpus Christi Holdings LLC 5.125% 6/30/27 | 135,000 | 151,147 | |
Cheniere Energy Partners LP 5.625% 10/1/26 | 90,000 | 92,250 | |
Cheniere Energy, Inc. 4.625% 10/15/28 (d) | 180,000 | 185,850 | |
Citgo Holding, Inc. 9.25% 8/1/24 (d) | 185,000 | 155,400 | |
Citgo Petroleum Corp.: | |||
6.25% 8/15/22 (d) | 85,000 | 79,688 | |
7% 6/15/25 (d) | 130,000 | 120,575 | |
Comstock Resources, Inc.: | |||
7.5% 5/15/25 (d) | 210,000 | 208,467 | |
9.75% 8/15/26 | 90,000 | 94,838 | |
9.75% 8/15/26 | 140,000 | 147,490 | |
Continental Resources, Inc. 4.5% 4/15/23 | 10,000 | 9,576 | |
CVR Energy, Inc.: | |||
5.25% 2/15/25 (d) | 140,000 | 102,025 | |
5.75% 2/15/28 (d) | 140,000 | 95,550 | |
DCP Midstream LLC 5.85% 5/21/43 (d)(f) | 60,000 | 44,605 | |
DCP Midstream Operating LP 5.375% 7/15/25 | 135,000 | 141,750 | |
Duke Energy Field Services 8.125% 8/16/30 | 5,000 | 5,700 | |
Ecopetrol SA 5.875% 5/28/45 | 100,000 | 108,536 | |
EG Global Finance PLC 6.25% 10/30/25 (Reg. S) | EUR | 100,000 | 110,572 |
Endeavor Energy Resources LP/EER Finance, Inc.: | |||
5.75% 1/30/28 (d) | 125,000 | 129,688 | |
6.625% 7/15/25 (d) | 55,000 | 57,063 | |
EQM Midstream Partners LP 6.5% 7/1/27 (d) | 70,000 | 73,416 | |
EQT Corp. 5% 1/15/29 (h) | 55,000 | 55,413 | |
GeoPark Ltd.: | |||
5.5% 1/17/27 (d) | 200,000 | 174,188 | |
6.5% 9/21/24 (d) | 200,000 | 187,690 | |
Global Partners LP/GLP Finance Corp. 6.875% 1/15/29 (d) | 55,000 | 56,680 | |
Greenko Dutch BV 5.25% 7/24/24 | 200,000 | 204,875 | |
Harvest Midstream I LP 7.5% 9/1/28 (d) | 95,000 | 94,288 | |
Hess Midstream Partners LP: | |||
5.125% 6/15/28 (d) | 80,000 | 79,600 | |
5.625% 2/15/26 (d) | 100,000 | 100,000 | |
Hilcorp Energy I LP/Hilcorp Finance Co. 5% 12/1/24 (d) | 145,000 | 134,125 | |
Indika Energy Capital III Pte. Ltd. 5.875% 11/9/24 (d) | 200,000 | 187,563 | |
Jonah Energy LLC 7.25% 10/15/25 (d) | 215,000 | 6,988 | |
KLX Energy Services Holdings, Inc. 11.5% 11/1/25 (d) | 95,000 | 45,600 | |
Kosmos Energy Ltd. 7.125% 4/4/26 (d) | 285,000 | 244,744 | |
Leviathan Bond Ltd.: | |||
6.125% 6/30/25 (Reg. S) (d) | 150,000 | 155,070 | |
6.5% 6/30/27 (Reg. S) (d) | 30,000 | 30,900 | |
6.75% 6/30/30 (Reg. S) (d) | 20,000 | 20,526 | |
Magnolia Oil & Gas Operating LLC 6% 8/1/26 (d) | 85,000 | 80,750 | |
Medco Bell Pte Ltd.: | |||
6.375% 1/30/27 (d) | 200,000 | 175,500 | |
6.375% 1/30/27 (Reg. S) | 200,000 | 175,500 | |
Medco Oak Tree Pte Ltd. 7.375% 5/14/26 (d) | 200,000 | 193,688 | |
MEG Energy Corp.: | |||
7% 3/31/24 (d) | 216,000 | 205,200 | |
7.125% 2/1/27 (d) | 140,000 | 125,962 | |
Murphy Oil Corp. 5.875% 12/1/27 | 90,000 | 71,017 | |
Nabors Industries, Inc. 5.75% 2/1/25 | 105,000 | 28,718 | |
Neerg Energy Ltd. 6% 2/13/22 (Reg. S) | 200,000 | 202,063 | |
New Fortress Energy LLC 6.75% 9/15/25 (d) | 55,000 | 56,714 | |
Noble Holding International Ltd.: | |||
6.05% 3/1/41 (e) | 5,000 | 34 | |
6.2% 8/1/40 (e) | 85,000 | 425 | |
7.75% 1/15/24 (e) | 48,000 | 120 | |
7.95% 4/1/25 (e)(f) | 55,000 | 413 | |
Nostrum Oil & Gas Finance BV 8% 7/25/22 (d)(e) | 400,000 | 100,000 | |
Occidental Petroleum Corp.: | |||
2.7% 8/15/22 | 55,000 | 50,861 | |
2.9% 8/15/24 | 35,000 | 29,138 | |
5.55% 3/15/26 | 65,000 | 56,550 | |
5.875% 9/1/25 | 40,000 | 35,200 | |
6.375% 9/1/28 | 55,000 | 48,125 | |
6.6% 3/15/46 | 55,000 | 45,535 | |
6.625% 9/1/30 | 195,000 | 170,879 | |
6.95% 7/1/24 | 65,000 | 61,425 | |
7.5% 5/1/31 | 230,000 | 209,875 | |
8.875% 7/15/30 | 145,000 | 141,919 | |
Oleoducto Central SA 4% 7/14/27 (d) | 200,000 | 208,540 | |
Pacific Drilling SA 12% 4/1/24 pay-in-kind (d)(e)(f) | 9,642 | 96 | |
Parsley Energy LLC/Parsley Finance Corp. 5.625% 10/15/27 (d) | 160,000 | 170,200 | |
PBF Holding Co. LLC/PBF Finance Corp.: | |||
6% 2/15/28 (d) | 160,000 | 61,800 | |
7.25% 6/15/25 | 70,000 | 29,269 | |
9.25% 5/15/25 (d) | 85,000 | 75,438 | |
PBF Logistics LP/PBF Logistics Finance, Inc. 6.875% 5/15/23 | 130,000 | 102,050 | |
Petrobras Global Finance BV: | |||
5.093% 1/15/30 | 113,000 | 118,337 | |
6.9% 3/19/49 | 115,000 | 130,139 | |
Petroleos Mexicanos: | |||
4.25% 1/15/25 | 185,000 | 172,073 | |
4.875% 1/24/22 | 85,000 | 85,478 | |
5.5% 2/24/25 (Reg. S) | EUR | 200,000 | 238,680 |
6.49% 1/23/27 | 175,000 | 162,794 | |
7.69% 1/23/50 | 75,000 | 62,246 | |
Pride International, Inc. 7.875% 8/15/40 (e) | 95,000 | 7,600 | |
Puma International Financing SA 5.125% 10/6/24 (Reg. S) | 200,000 | 168,600 | |
Rattler Midstream LP 5.625% 7/15/25 (d) | 50,000 | 51,375 | |
Repsol International Finance BV 4.5% 3/25/75 (Reg. S) (f) | EUR | 200,000 | 240,791 |
Saudi Arabian Oil Co. 3.5% 4/16/29 (d) | 200,000 | 219,500 | |
SESI LLC 7.75% 9/15/24 | 40,000 | 9,200 | |
Sibur Securities DAC 2.95% 7/8/25 (d) | 200,000 | 202,563 | |
SM Energy Co.: | |||
5% 1/15/24 | 65,000 | 32,500 | |
5.625% 6/1/25 | 100,000 | 39,271 | |
6.625% 1/15/27 | 65,000 | 24,375 | |
6.75% 9/15/26 | 25,000 | 9,625 | |
Southwestern Energy Co. 8.375% 9/15/28 | 60,000 | 62,700 | |
Sunoco LP/Sunoco Finance Corp.: | |||
4.875% 1/15/23 | 90,000 | 90,675 | |
5.5% 2/15/26 | 75,000 | 75,141 | |
6% 4/15/27 | 175,000 | 180,899 | |
Targa Resources Partners LP/Targa Resources Partners Finance Corp.: | |||
4.875% 2/1/31 (d) | 55,000 | 53,675 | |
5.125% 2/1/25 | 35,000 | 35,088 | |
5.375% 2/1/27 | 35,000 | 35,175 | |
5.5% 3/1/30 (d) | 70,000 | 70,415 | |
5.875% 4/15/26 | 70,000 | 71,400 | |
6.5% 7/15/27 | 40,000 | 41,900 | |
6.875% 1/15/29 | 70,000 | 75,075 | |
Tengizchevroil Finance Co. International Ltd. 3.25% 8/15/30 (d) | 200,000 | 203,063 | |
Termocandelaria Power Ltd. 7.875% 1/30/29 (d) | 200,000 | 217,200 | |
Transocean Sentry Ltd. 5.375% 5/15/23 (d) | 85,000 | 54,613 | |
Transocean, Inc. 11.5% 1/30/27 (d) | 76,000 | 25,126 | |
Transportadora de Gas del Sur SA 6.75% 5/2/25 (d) | 300,000 | 245,531 | |
Tullow Oil PLC: | |||
6.25% 4/15/22 (d) | 200,000 | 125,250 | |
7% 3/1/25 (d) | 200,000 | 103,188 | |
U.S.A. Compression Partners LP 6.875% 4/1/26 | 35,000 | 34,706 | |
Ultra Resources, Inc. 11% 7/12/24 pay-in-kind (c)(e) | 63,329 | 3,166 | |
Valaris PLC: | |||
5.2% 3/15/25 (e) | 30,000 | 1,275 | |
7.75% 2/1/26 (e) | 85,000 | 3,825 | |
Viper Energy Partners LP 5.375% 11/1/27 (d) | 30,000 | 30,621 | |
W&T Offshore, Inc. 9.75% 11/1/23 (d) | 75,000 | 48,750 | |
YPF SA 8.5% 3/23/25 (d) | 471,000 | 301,440 | |
11,454,338 | |||
Entertainment/Film - 0.2% | |||
Live Nation Entertainment, Inc. 4.75% 10/15/27 (d) | 80,000 | 73,600 | |
Petroleos Mexicanos 3.625% 11/24/25 (Reg. S) | EUR | 100,000 | 104,928 |
178,528 | |||
Environmental - 0.3% | |||
LBC Tank Terminals Holding Netherlands BV 6.875% 5/15/23 (d) | 215,000 | 214,463 | |
Paprec Holding 3 month EURIBOR + 3.500% 3.5% 3/31/25 (f)(g) | EUR | 100,000 | 107,569 |
322,032 | |||
Food & Drug Retail - 0.8% | |||
Albertsons Companies LLC/Safeway, Inc./New Albertson's, Inc./Albertson's LLC: | |||
4.625% 1/15/27 (d) | 95,000 | 98,563 | |
4.875% 2/15/30 (d) | 95,000 | 100,900 | |
Camposol SA 6% 2/3/27 (d) | 200,000 | 210,688 | |
Emergent BioSolutions, Inc. 3.875% 8/15/28 (d) | 35,000 | 35,175 | |
SEG Holding LLC/SEG Finance Corp. 5.625% 10/15/28 (d) | 100,000 | 101,880 | |
Sigma Holdco BV 5.75% 5/15/26 (Reg. S) | EUR | 110,000 | 122,234 |
Tops Markets LLC 13% 11/19/24 pay-in-kind (c)(f) | 33,712 | 32,701 | |
702,141 | |||
Food/Beverage/Tobacco - 2.2% | |||
Central American Bottling Corp. 5.75% 1/31/27 (d) | 200,000 | 208,875 | |
Chobani LLC/Finance Corp., Inc.: | |||
4.625% 11/15/28 (d) | 30,000 | 30,099 | |
7.5% 4/15/25 (d) | 15,000 | 15,394 | |
Del Monte Foods, Inc. 11.875% 5/15/25 (d) | 40,000 | 42,650 | |
JBS Investments II GmbH: | |||
5.75% 1/15/28 (d) | 200,000 | 210,125 | |
7% 1/15/26 (d) | 400,000 | 427,360 | |
JBS U.S.A. LLC/JBS U.S.A. Finance, Inc.: | |||
5.75% 6/15/25 (d) | 30,000 | 30,840 | |
6.75% 2/15/28 (d) | 185,000 | 203,469 | |
JBS U.S.A. Lux SA / JBS Food Co.: | |||
5.5% 1/15/30 (d) | 120,000 | 130,500 | |
6.5% 4/15/29 (d) | 80,000 | 89,800 | |
KeHE Distributors LLC / KeHE Finance Corp. 8.625% 10/15/26 (d) | 60,000 | 64,500 | |
Lamb Weston Holdings, Inc.: | |||
4.625% 11/1/24 (d) | 45,000 | 46,463 | |
4.875% 11/1/26 (d) | 45,000 | 46,737 | |
MHP SA 7.75% 5/10/24 (d) | 200,000 | 208,188 | |
Post Holdings, Inc.: | |||
4.625% 4/15/30 (d) | 95,000 | 97,494 | |
5.625% 1/15/28 (d) | 110,000 | 116,050 | |
TreeHouse Foods, Inc. 4% 9/1/28 | 20,000 | 20,025 | |
United Natural Foods, Inc. 6.75% 10/15/28 (d) | 40,000 | 40,500 | |
2,029,069 | |||
Gaming - 2.9% | |||
Caesars Entertainment, Inc.: | |||
6.25% 7/1/25 (d) | 110,000 | 112,942 | |
8.125% 7/1/27 (d) | 275,000 | 287,016 | |
Caesars Resort Collection LLC 5.25% 10/15/25 (d) | 300,000 | 285,336 | |
GLP Capital LP/GLP Financing II, Inc.: | |||
5.25% 6/1/25 | 95,000 | 103,786 | |
5.375% 4/15/26 | 30,000 | 33,319 | |
Golden Nugget, Inc. 6.75% 10/15/24 (d) | 130,000 | 110,080 | |
LHMC Finco SARL 6.25% 12/20/23 (Reg. S) | EUR | 100,000 | 102,772 |
MCE Finance Ltd. 5.375% 12/4/29 (Reg. S) | 200,000 | 192,773 | |
MGM Growth Properties Operating Partnership LP: | |||
4.5% 1/15/28 | 350,000 | 355,250 | |
5.75% 2/1/27 | 70,000 | 75,539 | |
NagaCorp Ltd. 7.95% 7/6/24 (Reg. S) | 200,000 | 200,188 | |
Peninsula Pacific Entertainment LLC 8.5% 11/15/27 (d) | 35,000 | 36,405 | |
Scientific Games Corp. 8.625% 7/1/25 (d) | 35,000 | 36,389 | |
Station Casinos LLC 5% 10/1/25 (d) | 155,000 | 154,225 | |
Studio City Finance Ltd.: | |||
6% 7/15/25 (d) | 25,000 | 25,031 | |
6.5% 1/15/28 (d) | 110,000 | 108,372 | |
6.5% 1/15/28 (Reg. S) | 200,000 | 197,040 | |
Twin River Worldwide Holdings, Inc. 6.75% 6/1/27 (d) | 75,000 | 75,944 | |
Wynn Macau Ltd. 5.5% 1/15/26 (d) | 200,000 | 193,750 | |
2,686,157 | |||
Healthcare - 5.4% | |||
Avantor Funding, Inc. 4.625% 7/15/28 (d) | 75,000 | 77,715 | |
Catalent Pharma Solutions 5% 7/15/27 (d) | 20,000 | 20,850 | |
Centene Corp.: | |||
3% 10/15/30 | 55,000 | 57,115 | |
3.375% 2/15/30 | 60,000 | 62,320 | |
4.25% 12/15/27 | 70,000 | 73,675 | |
4.625% 12/15/29 | 105,000 | 114,317 | |
5.375% 6/1/26 (d) | 245,000 | 257,791 | |
5.375% 8/15/26 (d) | 55,000 | 58,163 | |
Charles River Laboratories International, Inc.: | |||
4.25% 5/1/28 (d) | 20,000 | 20,900 | |
5.5% 4/1/26 (d) | 65,000 | 67,925 | |
Community Health Systems, Inc. 8% 3/15/26 (d) | 390,000 | 391,560 | |
CTR Partnership LP/CareTrust Capital Corp. 5.25% 6/1/25 | 100,000 | 103,000 | |
DaVita HealthCare Partners, Inc.: | |||
3.75% 2/15/31 (d) | 60,000 | 57,675 | |
4.625% 6/1/30 (d) | 120,000 | 122,057 | |
Encompass Health Corp. 5.75% 9/15/25 | 15,000 | 15,488 | |
Eurofins Scientific SA 2.125% 7/25/24 (Reg. S) | EUR | 100,000 | 123,152 |
HCA Holdings, Inc.: | |||
5.375% 9/1/26 | 85,000 | 95,519 | |
5.875% 2/15/26 | 85,000 | 96,050 | |
5.875% 2/1/29 | 45,000 | 52,942 | |
Hologic, Inc. 3.25% 2/15/29 (d) | 55,000 | 55,275 | |
IMS Health, Inc. 5% 10/15/26 (d) | 120,000 | 124,367 | |
InRetail Pharma SA 5.375% 5/2/23 (d) | 200,000 | 207,625 | |
Molina Healthcare, Inc. 4.375% 6/15/28 (d) | 40,000 | 41,000 | |
Ortho-Clinical Diagnostics, Inc.: | |||
7.25% 2/1/28 (d) | 30,000 | 31,350 | |
7.375% 6/1/25 (d) | 45,000 | 47,475 | |
Radiology Partners, Inc. 9.25% 2/1/28 (d) | 220,000 | 234,516 | |
Sabra Health Care LP 3.9% 10/15/29 | 72,000 | 72,385 | |
Service Corp. International 3.375% 8/15/30 | 300,000 | 304,125 | |
Surgery Center Holdings, Inc.: | |||
6.75% 7/1/25 (d) | 30,000 | 29,550 | |
10% 4/15/27 (d) | 15,000 | 16,013 | |
Teleflex, Inc. 4.625% 11/15/27 | 30,000 | 31,636 | |
Tenet Healthcare Corp.: | |||
4.625% 7/15/24 | 80,000 | 81,352 | |
6.125% 10/1/28 (d) | 240,000 | 233,100 | |
6.25% 2/1/27 (d) | 195,000 | 202,469 | |
6.75% 6/15/23 | 300,000 | 316,362 | |
6.875% 11/15/31 | 10,000 | 10,000 | |
Teva Pharmaceutical Finance Netherlands III BV: | |||
3.15% 10/1/26 | 75,000 | 66,000 | |
4.1% 10/1/46 | 200,000 | 166,000 | |
6% 1/31/25 | EUR | 100,000 | 120,780 |
U.S. Renal Care, Inc. 10.625% 7/15/27 (d) | 110,000 | 117,150 | |
Valeant Pharmaceuticals International, Inc.: | |||
5.5% 3/1/23 (d) | 18,000 | 17,955 | |
5.5% 11/1/25 (d) | 260,000 | 267,098 | |
5.875% 5/15/23 (d) | 5,000 | 4,988 | |
8.5% 1/31/27 (d) | 55,000 | 60,138 | |
9.25% 4/1/26 (d) | 230,000 | 253,575 | |
Vizient, Inc. 6.25% 5/15/27 (d) | 15,000 | 15,863 | |
4,996,361 | |||
Homebuilders/Real Estate - 6.2% | |||
ADLER Real Estate AG 3% 4/27/26 (Reg. S) | EUR | 100,000 | 115,939 |
Ashton Woods U.S.A. LLC/Ashton Woods Finance Co.: | |||
6.625% 1/15/28 (d) | 5,000 | 5,025 | |
9.875% 4/1/27 (d) | 39,000 | 43,290 | |
China Aoyuan Group Ltd. 6.2% 3/24/26 (Reg. S) | 200,000 | 191,875 | |
China SCE Property Holdings Ltd.: | |||
7.25% 4/19/23 (Reg. S) | 200,000 | 204,500 | |
7.375% 4/9/24 (Reg. S) | 200,000 | 204,563 | |
China South City Holdings Ltd. 11.5% 2/12/22 (Reg. S) | 200,000 | 197,500 | |
Easy Tactic Ltd. 5.875% 2/13/23 (Reg. S) | 200,000 | 169,102 | |
Evergrande Real Estate Group Ltd.: | |||
8.25% 3/23/22 (Reg. S) | 200,000 | 168,125 | |
8.75% 6/28/25 (Reg. S) | 200,000 | 146,500 | |
Hospitality Properties Trust 7.5% 9/15/25 | 95,000 | 99,566 | |
Jababeka International BV 6.5% 10/5/23 (Reg. S) | 200,000 | 167,875 | |
Kaisa Group Holdings Ltd.: | |||
8.5% 6/30/22 (Reg. S) | 200,000 | 195,125 | |
11.5% 1/30/23 (Reg. S) | 200,000 | 202,625 | |
KWG Property Holding Ltd. 5.2% 9/21/22 (Reg. S) | 200,000 | 200,032 | |
Lennar Corp. 5.375% 10/1/22 | 55,000 | 58,575 | |
Liquid Telecommunications Financing PLC 8.5% 7/13/22 (d) | 200,000 | 203,281 | |
Modernland Overseas Pte Ltd. 6.95% 4/13/24 | 200,000 | 80,688 | |
MPT Operating Partnership LP/MPT Finance Corp.: | |||
5% 10/15/27 | 330,000 | 345,329 | |
5.25% 8/1/26 | 100,000 | 103,750 | |
New Home Co. LLC 7.25% 10/15/25 (d) | 35,000 | 35,219 | |
New Metro Global Ltd. 6.8% 8/5/23 (Reg. S) | 200,000 | 206,375 | |
Realogy Group LLC/Realogy Co-Issuer Corp. 7.625% 6/15/25 (d) | 25,000 | 26,406 | |
Redsun Properties Group Ltd. 9.7% 4/16/23 (Reg. S) | 220,000 | 223,960 | |
Ronshine China Holdings Ltd. 11.25% 8/22/21 (Reg. S) | 200,000 | 207,563 | |
Starwood Property Trust, Inc. 4.75% 3/15/25 | 75,000 | 72,750 | |
Sunac China Holdings Ltd.: | |||
6.5% 7/9/23 (Reg. S) | 200,000 | 195,563 | |
7.5% 2/1/24 (Reg. S) | 200,000 | 199,438 | |
Taylor Morrison Communities, Inc./Monarch Communities, Inc.: | |||
5.75% 1/15/28 (d) | 80,000 | 88,800 | |
5.875% 6/15/27 (d) | 55,000 | 60,775 | |
Times China Holdings Ltd. 6.6% 3/2/23 (Reg. S) | 200,000 | 203,813 | |
TRI Pointe Homes, Inc. 5.7% 6/15/28 | 15,000 | 16,650 | |
VICI Properties, Inc.: | |||
3.75% 2/15/27 (d) | 55,000 | 55,138 | |
4.125% 8/15/30 (d) | 70,000 | 70,875 | |
Wanda Properties Overseas Ltd. 6.875% 7/23/23 (Reg. S) | 200,000 | 195,625 | |
Weekley Homes LLC/Weekley Finance Corp. 4.875% 9/15/28 (d) | 25,000 | 25,321 | |
Yango Justice International Ltd.: | |||
8.25% 11/25/23 (Reg. S) | 220,000 | 223,438 | |
10% 2/12/23 (Reg. S) | 200,000 | 210,938 | |
Yuzhou Properties Co. 7.375% 1/13/26 (Reg. S) | 200,000 | 191,999 | |
Zhenro Properties Group Ltd. 8.7% 8/3/22 (Reg. S) | 200,000 | 203,813 | |
5,817,724 | |||
Hotels - 0.3% | |||
Hilton Domestic Operating Co., Inc.: | |||
4.875% 1/15/30 | 120,000 | 123,450 | |
5.125% 5/1/26 | 70,000 | 70,875 | |
Hilton Worldwide Finance LLC/Hilton Worldwide Finance Corp. 4.875% 4/1/27 | 40,000 | 40,465 | |
234,790 | |||
Insurance - 1.2% | |||
Acrisure LLC / Acrisure Finance, Inc.: | |||
7% 11/15/25 (d) | 235,000 | 234,413 | |
8.125% 2/15/24 (d) | 55,000 | 57,517 | |
10.125% 8/1/26 (d) | 25,000 | 27,633 | |
Alliant Holdings Intermediate LLC 6.75% 10/15/27 (d) | 225,000 | 236,250 | |
AmWINS Group, Inc. 7.75% 7/1/26 (d) | 15,000 | 16,013 | |
HUB International Ltd. 7% 5/1/26 (d) | 190,000 | 194,750 | |
MGIC Investment Corp. 5.25% 8/15/28 | 40,000 | 41,100 | |
USI, Inc. 6.875% 5/1/25 (d) | 275,000 | 279,813 | |
1,087,489 | |||
Leisure - 0.9% | |||
Carnival Corp.: | |||
9.875% 8/1/27 (d) | 210,000 | 218,269 | |
10.5% 2/1/26 (d) | 75,000 | 81,188 | |
NCL Corp. Ltd. 10.25% 2/1/26 (d) | 115,000 | 118,163 | |
POWDR Corp. 6% 8/1/25 (d) | 35,000 | 35,291 | |
Royal Caribbean Cruises Ltd.: | |||
9.125% 6/15/23 (d) | 85,000 | 88,506 | |
11.5% 6/1/25 (d) | 105,000 | 119,700 | |
SeaWorld Parks & Entertainment, Inc. 9.5% 8/1/25 (d) | 50,000 | 52,500 | |
Vail Resorts, Inc. 6.25% 5/15/25 (d) | 35,000 | 36,750 | |
Viking Cruises Ltd. 13% 5/15/25 (d) | 50,000 | 56,625 | |
Voc Escrow Ltd. 5% 2/15/28 (d) | 70,000 | 60,576 | |
867,568 | |||
Metals/Mining - 3.3% | |||
Abja Investment Co. Pte Ltd. 5.45% 1/24/28 | 300,000 | 291,084 | |
Alpha Natural Resources, Inc. 9.75% 4/15/18 (c)(e) | 210,000 | 0 | |
Alrosa Finance SA 3.1% 6/25/27 (d) | 200,000 | 200,563 | |
Antofagasta PLC 2.375% 10/14/30 (d) | 200,000 | 197,313 | |
First Quantum Minerals Ltd.: | |||
6.5% 3/1/24 (d) | 200,000 | 198,500 | |
6.875% 3/1/26 (d) | 200,000 | 198,813 | |
6.875% 10/15/27 (d) | 185,000 | 184,769 | |
7.25% 4/1/23 (d) | 325,000 | 326,727 | |
7.5% 4/1/25 (d) | 130,000 | 130,033 | |
FMG Resources (August 2006) Pty Ltd.: | |||
4.75% 5/15/22 (d) | 45,000 | 46,049 | |
5.125% 3/15/23 (d) | 95,000 | 99,156 | |
Freeport-McMoRan, Inc.: | |||
4.625% 8/1/30 | 55,000 | 58,713 | |
5.4% 11/14/34 | 30,000 | 34,350 | |
Howmet Aerospace, Inc. 5.95% 2/1/37 | 45,000 | 49,050 | |
HudBay Minerals, Inc. 6.125% 4/1/29 (d) | 105,000 | 107,625 | |
Industrias Penoles SA de CV 4.75% 8/6/50 (d) | 200,000 | 209,250 | |
Joseph T. Ryerson & Son, Inc. 8.5% 8/1/28 (d) | 45,000 | 48,220 | |
Stillwater Mining Co. 6.125% 6/27/22 (d) | 200,000 | 202,563 | |
Vedanta Resources PLC 6.375% 7/30/22 (Reg. S) | 400,000 | 282,000 | |
VM Holding SA 6.5% 1/18/28 (d) | 200,000 | 220,938 | |
3,085,716 | |||
Paper - 0.1% | |||
Berry Global, Inc. 5.625% 7/15/27 (d) | 35,000 | 36,615 | |
Enviva Partners LP / Enviva Partners Finance Corp. 6.5% 1/15/26 (d) | 90,000 | 94,950 | |
131,565 | |||
Publishing/Printing - 0.2% | |||
Clear Channel International BV 6.625% 8/1/25 (d) | 200,000 | 203,000 | |
Railroad - 0.2% | |||
Groupe Eurotunnel SA 3.5% 10/30/25 (Reg. S) | EUR | 140,000 | 163,338 |
Restaurants - 0.3% | |||
1011778 BC Unlimited Liability Co./New Red Finance, Inc.: | |||
4% 10/15/30 (d)(h) | 160,000 | 159,200 | |
5% 10/15/25 (d) | 73,000 | 74,832 | |
Golden Nugget, Inc. 8.75% 10/1/25 (d) | 60,000 | 49,200 | |
Yum! Brands, Inc. 7.75% 4/1/25 (d) | 20,000 | 21,969 | |
305,201 | |||
Services - 2.2% | |||
APX Group, Inc. 7.625% 9/1/23 | 75,000 | 75,591 | |
ASGN, Inc. 4.625% 5/15/28 (d) | 160,000 | 164,526 | |
Booz Allen Hamilton, Inc. 3.875% 9/1/28 (d) | 55,000 | 55,825 | |
Brand Energy & Infrastructure Services, Inc. 8.5% 7/15/25 (d) | 250,000 | 234,925 | |
Expedia, Inc. 7% 5/1/25 (d) | 75,000 | 80,311 | |
Fair Isaac Corp. 5.25% 5/15/26 (d) | 50,000 | 55,500 | |
GEMS MENASA Cayman Ltd. 7.125% 7/31/26 (d) | 520,000 | 514,963 | |
Hertz Corp.: | |||
5.5% 10/15/24 (d)(e) | 50,000 | 19,875 | |
6% 1/15/28 (d)(e) | 50,000 | 20,125 | |
6.25% 10/15/22 (e) | 35,000 | 13,825 | |
7.125% 8/1/26 (d)(e) | 85,000 | 33,575 | |
IAA Spinco, Inc. 5.5% 6/15/27 (d) | 30,000 | 31,538 | |
IHS Markit Ltd.: | |||
4% 3/1/26 (d) | 35,000 | 38,970 | |
4.75% 2/15/25 (d) | 65,000 | 73,288 | |
Intrum Justitia AB 2.75% 7/15/22 (Reg. S) | EUR | 20,000 | 23,125 |
Laureate Education, Inc. 8.25% 5/1/25 (d) | 195,000 | 207,716 | |
Sabre GLBL, Inc. 7.375% 9/1/25 (d) | 60,000 | 61,200 | |
Service Corp. International 5.125% 6/1/29 | 35,000 | 38,249 | |
Sotheby's 7.375% 10/15/27 (d) | 80,000 | 81,930 | |
Tempo Acquisition LLC 6.75% 6/1/25 (d) | 55,000 | 55,811 | |
The GEO Group, Inc.: | |||
5.125% 4/1/23 | 50,000 | 40,250 | |
5.875% 10/15/24 | 15,000 | 10,389 | |
6% 4/15/26 | 170,000 | 110,449 | |
2,041,956 | |||
Steel - 1.2% | |||
Big River Steel LLC/BRS Finance Corp. 6.625% 1/31/29 (d) | 165,000 | 169,950 | |
CSN Resources SA 7.625% 4/17/26 (d) | 200,000 | 204,688 | |
Infrabuild Australia Pty Ltd. 12% 10/1/24 (d) | 60,000 | 59,400 | |
JSW Steel Ltd. 5.375% 4/4/25 (Reg. S) | 200,000 | 199,000 | |
Thyssenkrupp AG: | |||
1.875% 3/6/23 (Reg. S) | EUR | 25,000 | 27,078 |
2.75% 3/8/21 (Reg. S) | EUR | 10,000 | 11,643 |
TMK Capital SA 4.3% 2/12/27 (Reg. S) | 200,000 | 195,625 | |
Usiminas International SARL 5.875% 7/18/26 (d) | 200,000 | 207,563 | |
1,074,947 | |||
Super Retail - 0.8% | |||
Academy Ltd. 6% 11/15/27 (d) | 75,000 | 74,956 | |
Asbury Automotive Group, Inc.: | |||
4.5% 3/1/28 (d) | 21,000 | 21,368 | |
4.75% 3/1/30 (d) | 20,000 | 20,650 | |
Carvana Co. 5.875% 10/1/28 (d) | 55,000 | 54,324 | |
EG Global Finance PLC: | |||
6.75% 2/7/25 (d) | 250,000 | 245,000 | |
8.5% 10/30/25 (d) | 50,000 | 51,150 | |
Group 1 Automotive, Inc. 4% 8/15/28 (d) | 200,000 | 200,250 | |
L Brands, Inc. 6.625% 10/1/30 (d) | 110,000 | 115,500 | |
783,198 | |||
Technology - 2.9% | |||
ams AG 6% 7/31/25 (Reg. S) | EUR | 100,000 | 120,891 |
Arcelik A/S 5% 4/3/23 (d) | 200,000 | 199,000 | |
Banff Merger Sub, Inc. 9.75% 9/1/26 (d) | 205,000 | 215,476 | |
Black Knight InfoServ LLC 3.625% 9/1/28 (d) | 60,000 | 60,750 | |
Camelot Finance SA 4.5% 11/1/26 (d) | 150,000 | 156,000 | |
CDK Global, Inc.: | |||
4.875% 6/1/27 | 80,000 | 82,906 | |
5.25% 5/15/29 (d) | 35,000 | 37,545 | |
5.875% 6/15/26 | 35,000 | 36,444 | |
CDW LLC/CDW Finance Corp. 4.25% 4/1/28 | 80,000 | 82,740 | |
Entegris, Inc. 4.625% 2/10/26 (d) | 85,000 | 87,338 | |
Go Daddy Operating Co. LLC / GD Finance Co., Inc. 5.25% 12/1/27 (d) | 205,000 | 214,738 | |
Itron, Inc. 5% 1/15/26 (d) | 30,000 | 30,600 | |
j2 Cloud Services LLC/j2 Global Communications, Inc. 6% 7/15/25 (d) | 45,000 | 47,025 | |
Jain International Trading BV 7.125% 2/1/22 (Reg. S) (e) | 200,000 | 49,250 | |
Lenovo Group Ltd. 3.421% 11/2/30 (d) | 200,000 | 202,042 | |
Match Group Holdings II LLC 5.625% 2/15/29 (d) | 65,000 | 70,038 | |
Northwest Fiber LLC/Northwest Fiber Finance Sub, Inc. 10.75% 6/1/28 (d) | 30,000 | 33,900 | |
ON Semiconductor Corp. 3.875% 9/1/28 (d) | 70,000 | 71,225 | |
Open Text Holdings, Inc. 4.125% 2/15/30 (d) | 95,000 | 98,563 | |
Orano SA: | |||
2.75% 3/8/28 (Reg. S) | EUR | 100,000 | 113,553 |
3.375% 4/23/26 (Reg. S) | EUR | 100,000 | 119,524 |
Qorvo, Inc. 4.375% 10/15/29 | 45,000 | 48,245 | |
Solera LLC/Solera Finance, Inc. 10.5% 3/1/24 (d) | 260,000 | 270,075 | |
TTM Technologies, Inc. 5.625% 10/1/25 (d) | 125,000 | 128,438 | |
Uber Technologies, Inc. 7.5% 5/15/25 (d) | 115,000 | 120,894 | |
Unisys Corp. 6.875% 11/1/27 (d) | 30,000 | 31,050 | |
2,728,250 | |||
Telecommunications - 7.9% | |||
Altice France Holding SA 6% 2/15/28 (d) | 75,000 | 71,936 | |
Axtel S.A.B. de CV 6.375% 11/14/24 (d) | 300,000 | 312,000 | |
C&W Senior Financing Designated Activity Co.: | |||
6.875% 9/15/27 (d) | 340,000 | 358,020 | |
7.5% 10/15/26 (d) | 100,000 | 105,299 | |
Cablevision Lightpath LLC: | |||
3.875% 9/15/27 (d) | 30,000 | 29,775 | |
5.625% 9/15/28 (d) | 20,000 | 20,200 | |
Cellnex Telecom SA 2.375% 1/16/24 (Reg. S) | EUR | 100,000 | 122,288 |
CenturyLink, Inc.: | |||
4% 2/15/27 (d) | 115,000 | 117,574 | |
5.125% 12/15/26 (d) | 150,000 | 153,375 | |
Communications Sales & Leasing, Inc. 8.25% 10/15/23 | 115,000 | 113,275 | |
Crystal Almond SARL 4.25% 10/15/24 (Reg. S) | EUR | 100,000 | 112,746 |
Digicel Group Ltd. 6.75% 3/1/23 (d) | 150,000 | 93,000 | |
Equinix, Inc. 5.375% 5/15/27 | 50,000 | 54,512 | |
Frontier Communications Corp.: | |||
5.875% 10/15/27 (d) | 50,000 | 50,938 | |
8.5% 4/1/26 (d) | 225,000 | 226,406 | |
11% 9/15/25 (e) | 215,000 | 89,494 | |
GTT Communications, Inc. 7.875% 12/31/24 (d) | 180,000 | 90,000 | |
IHS Netherlands Holdco BV 8% 9/18/27 (d) | 200,000 | 203,750 | |
Intelsat Jackson Holdings SA: | |||
5.5% 8/1/23 (e) | 315,000 | 184,669 | |
8.5% 10/15/24 (d)(e) | 45,000 | 27,792 | |
LCPR Senior Secured Financing DAC 6.75% 10/15/27 (d) | 100,000 | 106,250 | |
Level 3 Financing, Inc.: | |||
4.25% 7/1/28 (d) | 75,000 | 75,375 | |
5.375% 1/15/24 | 200,000 | 201,442 | |
Millicom International Cellular SA 5.125% 1/15/28 (d) | 250,000 | 262,344 | |
Olivetti Finance NV 7.75% 1/24/33 | EUR | 75,000 | 125,236 |
Sable International Finance Ltd. 5.75% 9/7/27 (d) | 325,000 | 344,500 | |
Sabre GLBL, Inc. 9.25% 4/15/25 (d) | 45,000 | 49,613 | |
SBA Communications Corp. 3.875% 2/15/27 (d) | 120,000 | 121,950 | |
SFR Group SA: | |||
5.125% 1/15/29 (d) | 50,000 | 49,921 | |
5.5% 1/15/28 (d) | 130,000 | 131,706 | |
7.375% 5/1/26 (d) | 150,000 | 156,555 | |
8.125% 2/1/27 (d) | 245,000 | 266,438 | |
Sprint Capital Corp.: | |||
6.875% 11/15/28 | 165,000 | 208,519 | |
8.75% 3/15/32 | 530,000 | 793,013 | |
Sprint Corp.: | |||
7.125% 6/15/24 | 200,000 | 230,040 | |
7.625% 3/1/26 | 70,000 | 85,188 | |
TBG Global Pte. Ltd. 5.25% 2/10/22 (Reg. S) | 200,000 | 200,086 | |
Telecom Italia SpA 2.75% 4/15/25 (Reg. S) | EUR | 100,000 | 120,354 |
Telefonica Celular del Paraguay SA 5.875% 4/15/27 (d) | 200,000 | 211,188 | |
Telenet Finance Luxembourg Notes SARL 3.5% 3/1/28 (Reg. S) | EUR | 200,000 | 239,336 |
Telesat Canada/Telesat LLC 6.5% 10/15/27 (d) | 45,000 | 44,775 | |
Turk Telekomunikasyon A/S 6.875% 2/28/25 (d) | 200,000 | 203,563 | |
Turkcell Iletisim Hizmet A/S 5.8% 4/11/28 (d) | 200,000 | 192,375 | |
VTR Comunicaciones SpA 5.125% 1/15/28 (d) | 200,000 | 210,875 | |
Windstream Escrow LLC 7.75% 8/15/28 (d) | 80,000 | 77,300 | |
Zayo Group Holdings, Inc.: | |||
4% 3/1/27 (d) | 115,000 | 112,872 | |
6.125% 3/1/28 (d) | 60,000 | 60,525 | |
7,418,388 | |||
Textiles/Apparel - 0.1% | |||
CBR Fashion Finance BV 5.125% 10/1/22 (Reg. S) | EUR | 100,000 | 103,372 |
Transportation Ex Air/Rail - 1.5% | |||
Autostrade per L'italia SpA: | |||
1.625% 6/12/23 | EUR | 215,000 | 247,270 |
1.75% 6/26/26 (Reg. S) | EUR | 100,000 | 113,026 |
1.875% 9/26/29 (Reg. S) | EUR | 100,000 | 113,233 |
Avolon Holdings Funding Ltd. 5.25% 5/15/24 (d) | 135,000 | 137,704 | |
Holding d'Infrastructures de Transport SAS 2.5% 5/4/27 (Reg. S) | EUR | 100,000 | 126,621 |
Mersin Uluslararasi Liman Isletmeciligi A/S 5.375% 11/15/24 (d) | 200,000 | 202,063 | |
Navios Maritime Acquisition Corp./Navios Acquisition Finance U.S., Inc. 8.125% 11/15/21 (d) | 235,000 | 157,450 | |
Navios Maritime Holdings, Inc.: | |||
7.375% 1/15/22 (d) | 90,000 | 42,975 | |
11.25% 8/15/22 (d) | 135,000 | 110,869 | |
Navios South American Logistics, Inc./Navios Logistics Finance U.S., Inc. 10.75% 7/1/25 (d) | 110,000 | 117,322 | |
Teekay Corp. 9.25% 11/15/22 (d) | 60,000 | 56,887 | |
1,425,420 | |||
Utilities - 4.9% | |||
Clearway Energy Operating LLC 4.75% 3/15/28 (d) | 40,000 | 42,050 | |
DCP Midstream Operating LP: | |||
5.125% 5/15/29 | 105,000 | 104,411 | |
5.625% 7/15/27 | 45,000 | 46,638 | |
DPL, Inc.: | |||
4.125% 7/1/25 (d) | 180,000 | 188,100 | |
4.35% 4/15/29 | 115,000 | 124,665 | |
Drax Finco PLC 2.625% 11/1/25 (Reg. S) (h) | EUR | 100,000 | 116,747 |
Energias de Portugal SA 4.496% 4/30/79 (Reg. S) (f) | EUR | 100,000 | 125,445 |
Eskom Holdings SOC Ltd. 5.75% 1/26/21 (d) | 275,000 | 269,586 | |
Greenko Investment Co. 4.875% 8/16/23 (Reg. S) | 200,000 | 200,688 | |
InterGen NV 7% 6/30/23 (d) | 845,000 | 798,525 | |
NextEra Energy Partners LP: | |||
4.25% 9/15/24 (d) | 50,000 | 52,375 | |
4.5% 9/15/27 (d) | 35,000 | 38,238 | |
NRG Energy, Inc.: | |||
5.25% 6/15/29 (d) | 60,000 | 65,025 | |
5.75% 1/15/28 | 265,000 | 285,041 | |
NSG Holdings II LLC/NSG Holdings, Inc. 7.75% 12/15/25 (d) | 208,422 | 220,927 | |
Pacific Gas & Electric Co.: | |||
3.75% 8/15/42 | 10,000 | 9,340 | |
3.95% 12/1/47 | 55,000 | 51,810 | |
4.55% 7/1/30 | 415,000 | 445,331 | |
4.95% 7/1/50 | 415,000 | 436,414 | |
Pattern Energy Operations LP 4.5% 8/15/28 (d) | 40,000 | 41,705 | |
PG&E Corp.: | |||
5% 7/1/28 | 75,000 | 75,189 | |
5.25% 7/1/30 | 45,000 | 45,000 | |
Pike Corp. 5.5% 9/1/28 (d) | 45,000 | 46,022 | |
Teollisuuden Voima Oyj 2.125% 2/4/25 (Reg. S) | EUR | 100,000 | 115,139 |
TerraForm Global, Inc. 6.125% 3/1/26 (d) | 160,000 | 161,600 | |
TerraForm Power Operating LLC: | |||
4.25% 1/31/23 (d) | 150,000 | 152,625 | |
4.75% 1/15/30 (d) | 130,000 | 139,489 | |
5% 1/31/28 (d) | 50,000 | 54,891 | |
Vistra Operations Co. LLC: | |||
5.5% 9/1/26 (d) | 45,000 | 46,575 | |
5.625% 2/15/27 (d) | 60,000 | 62,550 | |
4,562,141 | |||
TOTAL NONCONVERTIBLE BONDS | 74,667,275 | ||
TOTAL CORPORATE BONDS | |||
(Cost $77,022,396) | 75,502,761 | ||
Government Obligations - 0.5% | |||
Germany - 0.1% | |||
German Federal Republic 2% 8/15/23 | EUR | 90,000 | 113,216 |
Sri Lanka - 0.4% | |||
Democratic Socialist Republic of Sri Lanka: | |||
6.2% 5/11/27 (Reg. S) | 200,000 | 107,500 | |
7.55% 3/28/30 (Reg. S) | 200,000 | 108,125 | |
7.85% 3/14/29(Reg. S) | 200,000 | 108,063 | |
TOTAL SRI LANKA | 323,688 | ||
TOTAL GOVERNMENT OBLIGATIONS | |||
(Cost $707,693) | 436,904 | ||
Shares | Value | ||
Common Stocks - 2.3% | |||
Automotive & Auto Parts - 0.0% | |||
UC Holdings, Inc. (c)(i) | 3,510 | 43,173 | |
Broadcasting - 0.0% | |||
DISH Network Corp. Class A (i) | 314 | 8,004 | |
Energy - 0.7% | |||
California Resources Corp. (i) | 7,660 | 102,644 | |
California Resources Corp. (b) | 4,169 | 50,278 | |
California Resources Corp. warrants 10/27/24 (i) | 530 | 0 | |
Denbury, Inc. (i) | 14,960 | 248,186 | |
Denbury, Inc. warrants 9/18/25 (i) | 1,038 | 2 | |
EP Energy Corp. (c) | 7,975 | 158,942 | |
Pacific Drilling SA (i) | 19,106 | 4,375 | |
Sanchez Energy Corp. (c) | 1,250 | 32,195 | |
Tidewater, Inc.: | |||
warrants 11/14/42 (i) | 5,448 | 35,412 | |
warrants 11/14/42 (i) | 1,897 | 12,331 | |
Ultra Petroleum Corp. warrants 7/14/25 (i) | 1,260 | 0 | |
TOTAL ENERGY | 644,365 | ||
Entertainment/Film - 0.7% | |||
New Cotai LLC/New Cotai Capital Corp. (b)(c) | 125,818 | 623,271 | |
Food & Drug Retail - 0.2% | |||
Southeastern Grocers, Inc. (c)(i) | 1,789 | 130,615 | |
Tops Markets Corp. (c)(i) | 165 | 58,007 | |
TOTAL FOOD & DRUG RETAIL | 188,622 | ||
Gaming - 0.2% | |||
Boyd Gaming Corp. | 4,800 | 152,256 | |
Healthcare - 0.0% | |||
HCA Holdings, Inc. | 400 | 49,576 | |
Services - 0.2% | |||
United Rentals, Inc. (i) | 1,000 | 178,290 | |
Utilities - 0.3% | |||
NRG Energy, Inc. | 3,200 | 101,184 | |
Vistra Corp. | 9,795 | 170,139 | |
TOTAL UTILITIES | 271,323 | ||
TOTAL COMMON STOCKS | |||
(Cost $4,420,825) | 2,158,880 | ||
Principal Amount(a) | Value | ||
Bank Loan Obligations - 3.4% | |||
Aerospace - 0.1% | |||
TransDigm, Inc. Tranche F 1LN, term loan 3 month U.S. LIBOR + 2.250% 2.3978% 12/9/25 (f)(g)(j) | 77,620 | 72,905 | |
Banks & Thrifts - 0.0% | |||
First Eagle Holdings, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.500% 2.7204% 2/1/27 (f)(g)(j) | 29,775 | 28,898 | |
Building Materials - 0.0% | |||
ACProducts, Inc. 1LN, term loan 3 month U.S. LIBOR + 6.500% 7.5% 8/13/25 (f)(g)(j) | 24,688 | 24,893 | |
Cable/Satellite TV - 0.2% | |||
WideOpenWest Finance LLC Tranche B, term loan 3 month U.S. LIBOR + 3.250% 4.25% 8/19/23 (f)(g)(j) | 227,686 | 222,658 | |
Chemicals - 0.1% | |||
Starfruit U.S. Holdco LLC Tranche B, term loan 3 month U.S. LIBOR + 3.000% 3.1453% 10/1/25 (f)(g)(j) | 43,184 | 41,759 | |
Diversified Financial Services - 0.5% | |||
BCP Renaissance Parent LLC Tranche B, term loan 3 month U.S. LIBOR + 3.500% 4.5% 10/31/24 (f)(g)(j) | 14,660 | 13,432 | |
Financial & Risk U.S. Holdings, Inc. Tranche B, term loan 3 month U.S. LIBOR + 3.250% 3.3978% 10/1/25 (f)(g)(j) | 384,135 | 377,955 | |
HarbourVest Partners LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.250% 2.3984% 3/1/25 (f)(g)(j) | 15,831 | 15,515 | |
New Cotai LLC 1LN, term loan 3 month U.S. LIBOR + 12.000% 14% 9/9/25 (c)(f)(g)(j) | 33,230 | 33,230 | |
TOTAL DIVERSIFIED FINANCIAL SERVICES | 440,132 | ||
Energy - 0.6% | |||
BCP Raptor LLC Tranche B, term loan 3 month U.S. LIBOR + 4.250% 5.25% 6/24/24 (f)(g)(j) | 48,375 | 39,668 | |
California Resources Corp. 2LN, term loan 3 month U.S. LIBOR + 9.000% 10% 10/27/25 (c)(f)(g)(j) | 26,646 | 26,646 | |
Chesapeake Energy Corp. term loan 3 month U.S. LIBOR + 8.000% 9% 6/9/24 (e)(f)(g)(j) | 265,000 | 184,506 | |
Citgo Holding, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 7.000% 8% 8/1/23 (f)(g)(j) | 9,900 | 9,087 | |
Citgo Petroleum Corp. Tranche B 1LN, term loan 3 month U.S. LIBOR + 5.000% 6% 3/28/24 (f)(g)(j) | 139,181 | 129,554 | |
Epic Crude Services LP Tranche B 1LN, term loan 3 month U.S. LIBOR + 5.000% 5.26% 3/1/26 (f)(g)(j) | 269,325 | 186,642 | |
Sanchez Energy Corp.: | |||
1LN, term loan 3 month U.S. LIBOR + 8.000% 0% 12/31/49 (c)(e)(g)(j) | 65,772 | 0 | |
term loan 3 month U.S. LIBOR + 0.000% 0% 12/31/49 (c)(e)(g)(j) | 28,000 | 0 | |
TOTAL ENERGY | 576,103 | ||
Food & Drug Retail - 0.1% | |||
Tops Markets LLC 1LN, term loan 3 month U.S. LIBOR + 8.500% 9.5% 11/19/23 (c)(f)(g)(j) | 53,261 | 54,327 | |
Healthcare - 0.3% | |||
U.S. Renal Care, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 5.000% 5.1875% 6/13/26 (f)(g)(j) | 331,650 | 318,281 | |
Hotels - 0.1% | |||
Travelport Finance Luxembourg SARL 1LN, term loan: | |||
3 month U.S. LIBOR + 5.000% 5.2203% 5/30/26 (f)(g)(j) | 37,277 | 19,467 | |
3 month U.S. LIBOR + 7.000% 9% 2/28/25 (f)(g)(j) | 41,329 | 38,909 | |
TOTAL HOTELS | 58,376 | ||
Insurance - 0.1% | |||
Alliant Holdings Intermediate LLC: | |||
Tranche B, term loan 3 month U.S. LIBOR + 2.750% 2.8978% 5/10/25 (f)(g)(j) | 4,838 | 4,652 | |
Tranche B-2 1LN, term loan 3 month U.S. LIBOR + 3.250% 3.3993% 5/9/25 (f)(g)(j) | 64,188 | 62,041 | |
TOTAL INSURANCE | 66,693 | ||
Leisure - 0.0% | |||
Alterra Mountain Co. Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.750% 2.8978% 7/31/24 (f)(g)(j) | 4,863 | 4,662 | |
Services - 0.4% | |||
Almonde, Inc. Tranche 2LN, term loan 3 month U.S. LIBOR + 7.250% 8.25% 6/13/25 (f)(g)(j) | 220,000 | 214,317 | |
CoreCivic, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 4.500% 5.5% 12/18/24 (f)(g)(j) | 52,750 | 51,607 | |
KUEHG Corp. Tranche B 2LN, term loan 3 month U.S. LIBOR + 8.250% 9.25% 8/22/25 (f)(g)(j) | 95,000 | 84,075 | |
Maverick Purchaser Sub LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.500% 3.6478% 1/23/27 (f)(g)(j) | 14,963 | 14,327 | |
Sotheby's 1LN, term loan 3 month U.S. LIBOR + 5.500% 6.5% 1/3/27 (f)(g)(j) | 11,017 | 10,916 | |
TOTAL SERVICES | 375,242 | ||
Super Retail - 0.4% | |||
Academy Ltd. Tranche B, term loan 3 month U.S. LIBOR + 4.000% 5% 7/2/22 (f)(g)(j) | 399,460 | 397,878 | |
Technology - 0.1% | |||
Ultimate Software Group, Inc.: | |||
1LN, term loan: | |||
3 month U.S. LIBOR + 3.750% 3.8978% 5/4/26 (f)(g)(j) | 19,800 | 19,432 | |
3 month U.S. LIBOR + 4.000% 4.75% 5/3/26 (f)(g)(j) | 75,000 | 74,485 | |
2LN, term loan 3 month U.S. LIBOR + 6.750% 7.5% 5/3/27 (f)(g)(j) | 10,000 | 10,150 | |
VM Consolidated, Inc. Tranche B L1N, term loan 3 month U.S. LIBOR + 3.250% 3.3978% 2/28/25 (f)(g)(j) | 9,534 | 9,272 | |
VS Buyer LLC Tranche B 1LN, term loan 3 month U.S. LIBOR + 3.250% 3.3978% 2/28/27 (f)(g)(j) | 14,925 | 14,552 | |
TOTAL TECHNOLOGY | 127,891 | ||
Telecommunications - 0.4% | |||
SFR Group SA Tranche B 12LN, term loan 3 month U.S. LIBOR + 3.680% 3.8359% 1/31/26 (f)(g)(j) | 378,786 | 365,673 | |
TOTAL BANK LOAN OBLIGATIONS | |||
(Cost $3,461,240) | 3,176,371 | ||
Preferred Securities - 6.4% | |||
Automotive & Auto Parts - 0.3% | |||
Volkswagen International Finance NV 3.875% (Reg. S) (f)(k) | EUR | 200,000 | 237,833 |
Banks & Thrifts - 3.6% | |||
AIB Group PLC 5.25% (Reg. S) (f)(k) | EUR | 200,000 | 222,639 |
Alfa Bond Issuance PLC 8% (Reg. S) (f)(k) | 200,000 | 206,101 | |
Banco Mercantil del Norte SA 6.875% (d)(f)(k) | 200,000 | 200,159 | |
Bank of America Corp.: | |||
4.3% (f)(k) | 160,000 | 157,995 | |
5.875% (f)(k) | 275,000 | 297,712 | |
Citigroup, Inc.: | |||
4.7% (f)(k) | 90,000 | 89,252 | |
5% (f)(k) | 180,000 | 181,968 | |
5.35% (f)(k) | 550,000 | 575,700 | |
5.95% (f)(k) | 375,000 | 393,363 | |
Intesa Sanpaolo SpA 7% (Reg. S) (f)(k) | EUR | 200,000 | 237,854 |
Itau Unibanco Holding SA 6.125% (d)(f)(k) | 375,000 | 366,616 | |
JPMorgan Chase & Co. 4.6% (f)(k) | 135,000 | 134,663 | |
UniCredit SpA 9.25% (Reg. S) (f)(k) | EUR | 200,000 | 258,269 |
TOTAL BANKS & THRIFTS | 3,322,291 | ||
Broadcasting - 0.2% | |||
TMB Bank PCL 4.9% (Reg. S) (f)(k) | 200,000 | 193,445 | |
Consumer Products - 0.3% | |||
Cosan Overseas Ltd. 8.25% (k) | 285,000 | 294,185 | |
Diversified Financial Services - 0.3% | |||
LeasePlan Corp. NV 7.375% (Reg. S) (f)(k) | EUR | 200,000 | 242,088 |
Energy - 0.1% | |||
Repsol International Finance BV 3.75% (Reg. S) (f)(k) | EUR | 100,000 | 118,276 |
Homebuilders/Real Estate - 0.6% | |||
CIFI Holdings Group Co. Ltd. 5.375% (Reg. S) (f)(k) | 200,000 | 201,766 | |
RKI Overseas Finance 2017 (A) 7% (Reg. S) (k) | 200,000 | 183,761 | |
Yuzhou Properties Co. 5.375% (Reg. S) (f)(k) | 200,000 | 192,417 | |
TOTAL HOMEBUILDERS/REAL ESTATE | 577,944 | ||
Technology - 0.2% | |||
Network i2i Ltd. 5.65% (Reg. S) (f)(k) | 200,000 | 200,828 | |
Telecommunications - 0.2% | |||
Telefonica Europe BV 3.875% (Reg. S) (f)(k) | EUR | 200,000 | 237,278 |
Utilities - 0.6% | |||
EDF SA: | |||
3.375% (f)(k) | EUR | 200,000 | 229,572 |
5.375% 12/31/99 (f) | EUR | 200,000 | 264,662 |
Veolia Environnement SA 2.5% (Reg. S) (f)(k) | EUR | 100,000 | 112,898 |
TOTAL UTILITIES | 607,132 | ||
TOTAL PREFERRED SECURITIES | |||
(Cost $5,979,067) | 6,031,300 | ||
Shares | Value | ||
Money Market Funds - 6.2% | |||
Fidelity Cash Central Fund 0.10% (l) | |||
(Cost $5,754,190) | 5,753,132 | 5,754,283 | |
TOTAL INVESTMENT IN SECURITIES - 99.7% | |||
(Cost $97,345,411) | 93,060,499 | ||
NET OTHER ASSETS (LIABILITIES) - 0.3% | 301,516 | ||
NET ASSETS - 100% | $93,362,015 |
Currency Abbreviations
EUR – European Monetary Unit
Legend
(a) Amount is stated in United States dollars unless otherwise noted.
(b) Restricted securities (including private placements) - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $696,431 or 0.7% of net assets.
(c) Level 3 security
(d) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $42,840,118 or 45.9% of net assets.
(e) Non-income producing - Security is in default.
(f) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end.
(g) Coupon is indexed to a floating interest rate which may be multiplied by a specified factor and/or subject to caps or floors.
(h) Security or a portion of the security purchased on a delayed delivery or when-issued basis.
(i) Non-income producing
(j) Remaining maturities of bank loan obligations may be less than the stated maturities shown as a result of contractual or optional prepayments by the borrower. Such prepayments cannot be predicted with certainty.
(k) Security is perpetual in nature with no stated maturity date.
(l) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
Additional information on each restricted holding is as follows:
Security | Acquisition Date | Acquisition Cost |
California Resources Corp. | 10/27/20 | $40,023 |
Mesquite Energy, Inc. 15% 7/31/23 | 7/10/20 - 10/15/20 | $22,882 |
New Cotai LLC/New Cotai Capital Corp. | 9/11/20 | $623,271 |
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
Fidelity Cash Central Fund | $2,372 |
Fidelity Securities Lending Cash Central Fund | 2,154 |
Total | $4,526 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable. Amount for Fidelity Securities Lending Cash Central Fund represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities.
The value, beginning of period, for the Fidelity Cash Central Fund was $2,978,347. Net realized gain (loss) and change in net unrealized appreciation (depreciation) on Fidelity Cash Central Fund is presented in the Statement of Operations, if applicable. Purchases and sales of the Fidelity Cash Central Fund were $36,816,466 and $34,039,880, respectively, during the period.
Investment Valuation
The following is a summary of the inputs used, as of October 31, 2020, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Equities: | ||||
Communication Services | $631,275 | $8,004 | $-- | $623,271 |
Consumer Discretionary | 195,429 | 152,256 | -- | 43,173 |
Consumer Staples | 188,622 | -- | -- | 188,622 |
Energy | 644,365 | 402,948 | 50,280 | 191,137 |
Health Care | 49,576 | 49,576 | -- | -- |
Industrials | 178,290 | 178,290 | -- | -- |
Utilities | 271,323 | 271,323 | -- | -- |
Corporate Bonds | 75,502,761 | -- | 75,444,012 | 58,749 |
Government Obligations | 436,904 | -- | 436,904 | -- |
Bank Loan Obligations | 3,176,371 | -- | 3,062,168 | 114,203 |
Preferred Securities | 6,031,300 | -- | 6,031,300 | -- |
Money Market Funds | 5,754,283 | 5,754,283 | -- | -- |
Total Investments in Securities: | $93,060,499 | $6,816,680 | $85,024,664 | $1,219,155 |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value:
Investments in Securities: | |
Beginning Balance | $359,535 |
Net Realized Gain (Loss) on Investment Securities | 2,355 |
Net Unrealized Gain (Loss) on Investment Securities | (558,194) |
Cost of Purchases | 1,486,263 |
Proceeds of Sales | (107,116) |
Amortization/Accretion | (188) |
Transfers into Level 3 | 36,500 |
Transfers out of Level 3 | -- |
Ending Balance | $1,219,155 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at October 31, 2020 | $(558,192) |
The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Cost of purchases and proceeds of sales may include securities received and/or delivered through in-kind transactions. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations.
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
United States of America | 53.7% |
Cayman Islands | 7.0% |
Netherlands | 5.6% |
Luxembourg | 4.8% |
Canada | 2.8% |
France | 2.7% |
United Kingdom | 2.4% |
Mexico | 2.3% |
British Virgin Islands | 1.7% |
Multi-National | 1.5% |
Italy | 1.5% |
Singapore | 1.4% |
Ireland | 1.2% |
Bermuda | 1.1% |
Austria | 1.1% |
Turkey | 1.0% |
Others (Individually Less Than 1%) | 8.2% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
October 31, 2020 (Unaudited) | ||
Assets | ||
Investment in securities, at value — See accompanying schedule: Unaffiliated issuers (cost $91,591,221) | $87,306,216 | |
Fidelity Central Funds (cost $5,754,190) | 5,754,283 | |
Total Investment in Securities (cost $97,345,411) | $93,060,499 | |
Cash | 55,792 | |
Receivable for investments sold | 181,997 | |
Receivable for fund shares sold | 69,054 | |
Dividends receivable | 13,448 | |
Interest receivable | 1,313,313 | |
Distributions receivable from Fidelity Central Funds | 481 | |
Prepaid expenses | 168 | |
Total assets | 94,694,752 | |
Liabilities | ||
Payable to custodian bank | $3,549 | |
Payable for investments purchased | ||
Regular delivery | 820,673 | |
Delayed delivery | 276,465 | |
Payable for fund shares redeemed | 63,084 | |
Distributions payable | 53,225 | |
Accrued management fee | 58,254 | |
Distribution and service plan fees payable | 4,405 | |
Other affiliated payables | 14,662 | |
Other payables and accrued expenses | 38,420 | |
Total liabilities | 1,332,737 | |
Net Assets | $93,362,015 | |
Net Assets consist of: | ||
Paid in capital | $104,083,287 | |
Total accumulated earnings (loss) | (10,721,272) | |
Net Assets | $93,362,015 | |
Net Asset Value and Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($6,383,207 ÷ 697,728 shares)(a) | $9.15 | |
Maximum offering price per share (100/96.00 of $9.15) | $9.53 | |
Class M: | ||
Net Asset Value and redemption price per share ($2,706,193 ÷ 295,840 shares)(a) | $9.15 | |
Maximum offering price per share (100/96.00 of $9.15) | $9.53 | |
Class C: | ||
Net Asset Value and offering price per share ($2,942,996 ÷ 321,688 shares)(a) | $9.15 | |
Global High Income: | ||
Net Asset Value, offering price and redemption price per share ($76,817,808 ÷ 8,395,673 shares) | $9.15 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($4,511,811 ÷ 493,115 shares) | $9.15 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended October 31, 2020 (Unaudited) | ||
Investment Income | ||
Dividends | $187,499 | |
Interest | 2,526,455 | |
Income from Fidelity Central Funds (including $2,154 from security lending) | 4,526 | |
Total income | 2,718,480 | |
Expenses | ||
Management fee | $335,232 | |
Transfer agent fees | 70,087 | |
Distribution and service plan fees | 26,035 | |
Accounting fees | 19,876 | |
Custodian fees and expenses | 6,923 | |
Independent trustees' fees and expenses | 264 | |
Registration fees | 24,789 | |
Audit | 36,186 | |
Legal | 3,287 | |
Miscellaneous | 345 | |
Total expenses before reductions | 523,024 | |
Expense reductions | (15,005) | |
Total expenses after reductions | 508,019 | |
Net investment income (loss) | 2,210,461 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | (1,432,510) | |
Fidelity Central Funds | (442) | |
Foreign currency transactions | 4,168 | |
Total net realized gain (loss) | (1,428,784) | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 9,521,574 | |
Fidelity Central Funds | (208) | |
Assets and liabilities in foreign currencies | 1,309 | |
Total change in net unrealized appreciation (depreciation) | 9,522,675 | |
Net gain (loss) | 8,093,891 | |
Net increase (decrease) in net assets resulting from operations | $10,304,352 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended October 31, 2020 (Unaudited) | Year ended April 30, 2020 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $2,210,461 | $5,725,423 |
Net realized gain (loss) | (1,428,784) | (1,487,799) |
Change in net unrealized appreciation (depreciation) | 9,522,675 | (12,444,519) |
Net increase (decrease) in net assets resulting from operations | 10,304,352 | (8,206,895) |
Distributions to shareholders | (2,138,991) | (5,486,858) |
Share transactions - net increase (decrease) | (3,731,569) | (17,407,596) |
Total increase (decrease) in net assets | 4,433,792 | (31,101,349) |
Net Assets | ||
Beginning of period | 88,928,223 | 120,029,572 |
End of period | $93,362,015 | $88,928,223 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Global High Income Fund Class A
Six months ended (Unaudited) October 31, | Years endedApril 30, | |||||
2020 | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $8.38 | $9.48 | $9.61 | $9.54 | $9.07 | $9.60 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .200 | .445 | .468 | .462 | .463 | .462 |
Net realized and unrealized gain (loss) | .764 | (1.120) | (.115) | .006 | .422 | (.541) |
Total from investment operations | .964 | (.675) | .353 | .468 | .885 | (.079) |
Distributions from net investment income | (.194) | (.425) | (.457) | (.399) | (.418) | (.454) |
Distributions from net realized gain | – | – | (.026) | – | – | – |
Total distributions | (.194) | (.425) | (.483) | (.399) | (.418) | (.454) |
Redemption fees added to paid in capitalA | – | – | – | .001 | .003 | .003 |
Net asset value, end of period | $9.15 | $8.38 | $9.48 | $9.61 | $9.54 | $9.07 |
Total ReturnB,C,D | 11.54% | (7.44)% | 3.88% | 4.94% | 10.00% | (.65)% |
Ratios to Average Net AssetsE,F | ||||||
Expenses before reductions | 1.32%G | 1.34% | 1.32% | 1.31% | 1.36% | 1.38% |
Expenses net of fee waivers, if any | 1.25%G | 1.25% | 1.25% | 1.25% | 1.25% | 1.25% |
Expenses net of all reductions | 1.25%G | 1.25% | 1.25% | 1.25% | 1.25% | 1.25% |
Net investment income (loss) | 4.38%G | 4.77% | 5.00%�� | 4.75% | 4.98% | 5.11% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $6,383 | $5,927 | $7,365 | $8,712 | $7,102 | $6,187 |
Portfolio turnover rateH | 57%G | 54% | 44% | 48% | 48% | 41% |
A Calculated based on average shares outstanding during the period.
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Fees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
G Annualized
H Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
See accompanying notes which are an integral part of the financial statements.
Fidelity Global High Income Fund Class M
Six months ended (Unaudited) October 31, | Years endedApril 30, | |||||
2020 | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $8.38 | $9.48 | $9.61 | $9.54 | $9.07 | $9.60 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .200 | .445 | .467 | .462 | .464 | .462 |
Net realized and unrealized gain (loss) | .764 | (1.120) | (.114) | .006 | .421 | (.541) |
Total from investment operations | .964 | (.675) | .353 | .468 | .885 | (.079) |
Distributions from net investment income | (.194) | (.425) | (.457) | (.399) | (.418) | (.454) |
Distributions from net realized gain | – | – | (.026) | – | – | – |
Total distributions | (.194) | (.425) | (.483) | (.399) | (.418) | (.454) |
Redemption fees added to paid in capitalA | – | – | – | .001 | .003 | .003 |
Net asset value, end of period | $9.15 | $8.38 | $9.48 | $9.61 | $9.54 | $9.07 |
Total ReturnB,C,D | 11.54% | (7.44)% | 3.88% | 4.94% | 10.00% | (.65)% |
Ratios to Average Net AssetsE,F | ||||||
Expenses before reductions | 1.38%G | 1.41% | 1.40% | 1.40% | 1.50% | 1.48% |
Expenses net of fee waivers, if any | 1.25%G | 1.25% | 1.25% | 1.25% | 1.25% | 1.25% |
Expenses net of all reductions | 1.25%G | 1.25% | 1.25% | 1.25% | 1.25% | 1.25% |
Net investment income (loss) | 4.38%G | 4.77% | 5.00% | 4.75% | 4.98% | 5.11% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $2,706 | $2,928 | $3,971 | $4,301 | $3,029 | $1,436 |
Portfolio turnover rateH | 57%G | 54% | 44% | 48% | 48% | 41% |
A Calculated based on average shares outstanding during the period.
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the sales charges.
E Fees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
G Annualized
H Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
See accompanying notes which are an integral part of the financial statements.
Fidelity Global High Income Fund Class C
Six months ended (Unaudited) October 31, | Years endedApril 30, | |||||
2020 | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $8.38 | $9.48 | $9.61 | $9.54 | $9.07 | $9.60 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .166 | .375 | .398 | .390 | .394 | .394 |
Net realized and unrealized gain (loss) | .764 | (1.119) | (.115) | .005 | .422 | (.540) |
Total from investment operations | .930 | (.744) | .283 | .395 | .816 | (.146) |
Distributions from net investment income | (.160) | (.356) | (.387) | (.326) | (.349) | (.387) |
Distributions from net realized gain | – | – | (.026) | – | – | – |
Total distributions | (.160) | (.356) | (.413) | (.326) | (.349) | (.387) |
Redemption fees added to paid in capitalA | – | – | – | .001 | .003 | .003 |
Net asset value, end of period | $9.15 | $8.38 | $9.48 | $9.61 | $9.54 | $9.07 |
Total ReturnB,C,D | 11.12% | (8.13)% | 3.10% | 4.16% | 9.19% | (1.39)% |
Ratios to Average Net AssetsE,F | ||||||
Expenses before reductions | 2.11%G | 2.11% | 2.08% | 2.08% | 2.18% | 2.20% |
Expenses net of fee waivers, if any | 2.00%G | 2.00% | 2.00% | 2.00% | 2.00% | 2.00% |
Expenses net of all reductions | 2.00%G | 2.00% | 2.00% | 2.00% | 2.00% | 2.00% |
Net investment income (loss) | 3.63%G | 4.02% | 4.25% | 4.00% | 4.23% | 4.36% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $2,943 | $2,684 | $3,723 | $4,420 | $3,775 | $3,437 |
Portfolio turnover rateH | 57%G | 54% | 44% | 48% | 48% | 41% |
A Calculated based on average shares outstanding during the period.
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Total returns do not include the effect of the contingent deferred sales charge.
E Fees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
G Annualized
H Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
See accompanying notes which are an integral part of the financial statements.
Fidelity Global High Income Fund
Six months ended (Unaudited) October 31, | Years endedApril 30, | |||||
2020 | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $8.38 | $9.48 | $9.62 | $9.54 | $9.07 | $9.60 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .212 | .468 | .491 | .487 | .486 | .486 |
Net realized and unrealized gain (loss) | .763 | (1.119) | (.125) | .015 | .423 | (.542) |
Total from investment operations | .975 | (.651) | .366 | .502 | .909 | (.056) |
Distributions from net investment income | (.205) | (.449) | (.480) | (.423) | (.442) | (.477) |
Distributions from net realized gain | – | – | (.026) | – | – | – |
Total distributions | (.205) | (.449) | (.506) | (.423) | (.442) | (.477) |
Redemption fees added to paid in capitalA | – | – | – | .001 | .003 | .003 |
Net asset value, end of period | $9.15 | $8.38 | $9.48 | $9.62 | $9.54 | $9.07 |
Total ReturnB,C | 11.68% | (7.21)% | 4.03% | 5.31% | 10.28% | (.40)% |
Ratios to Average Net AssetsD,E | ||||||
Expenses before reductions | 1.02%F | 1.03% | 1.01% | 1.02% | 1.14% | 1.20% |
Expenses net of fee waivers, if any | 1.00%F | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Expenses net of all reductions | 1.00%F | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Net investment income (loss) | 4.63%F | 5.02% | 5.25% | 5.00% | 5.23% | 5.35% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $76,818 | $73,039 | $97,619 | $125,192 | $85,188 | $93,256 |
Portfolio turnover rateG | 57%F | 54% | 44% | 48% | 48% | 41% |
A Calculated based on average shares outstanding during the period.
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Fees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
F Annualized
G Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
See accompanying notes which are an integral part of the financial statements.
Fidelity Global High Income Fund Class I
Six months ended (Unaudited) October 31, | Years endedApril 30, | |||||
2020 | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $8.38 | $9.48 | $9.62 | $9.54 | $9.07 | $9.60 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .213 | .473 | .491 | .485 | .486 | .483 |
Net realized and unrealized gain (loss) | .763 | (1.124) | (.125) | .017 | .423 | (.539) |
Total from investment operations | .976 | (.651) | .366 | .502 | .909 | (.056) |
Distributions from net investment income | (.206) | (.449) | (.480) | (.423) | (.442) | (.477) |
Distributions from net realized gain | – | – | (.026) | – | – | – |
Total distributions | (.206) | (.449) | (.506) | (.423) | (.442) | (.477) |
Redemption fees added to paid in capitalA | – | – | – | .001 | .003 | .003 |
Net asset value, end of period | $9.15 | $8.38 | $9.48 | $9.62 | $9.54 | $9.07 |
Total ReturnB,C | 11.68% | (7.21)% | 4.03% | 5.31% | 10.28% | (.40)% |
Ratios to Average Net AssetsD,E | ||||||
Expenses before reductions | 1.02%F | 1.03% | 1.05% | 1.03% | 1.16% | 1.10% |
Expenses net of fee waivers, if any | 1.00%F | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Expenses net of all reductions | 1.00%F | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% |
Net investment income (loss) | 4.63%F | 5.02% | 5.25% | 5.00% | 5.23% | 5.35% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $4,512 | $4,350 | $7,352 | $9,999 | $2,817 | $1,905 |
Portfolio turnover rateG | 57%F | 54% | 44% | 48% | 48% | 41% |
A Calculated based on average shares outstanding during the period.
B Total returns for periods of less than one year are not annualized.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Fees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
F Annualized
G Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended October 31, 2020
1. Organization.
Fidelity Global High Income Fund (the Fund) is a fund of Fidelity Summer Street Trust (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class M, Class C, Global High Income and Class I shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Class C shares will automatically convert to Class A shares after a holding period of ten years from the initial date of purchase, with certain exceptions.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date ranged from less than .005% to .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investment Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. Corporate bonds, bank loan obligations, foreign government and government agency obligations and preferred securities are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. 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. For foreign debt securities, when significant market or security specific events arise, valuations may be determined in good faith in accordance with procedures adopted by the Board. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances. The Fund invests a significant portion of its assets in below investment grade securities. The value of these securities can be more volatile due to changes in the credit quality of the issuer and is sensitive to changes in economic, market and regulatory conditions.
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 equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy. Securities, including private placements or other restricted securities, for which observable inputs are not available are valued using alternate valuation approaches, including the market approach, the income approach and cost approach, and are categorized as Level 3 in the hierarchy. The market approach considers factors including the price of recent investments in the same or a similar security or financial metrics of comparable securities. The income approach considers factors including expected future cash flows, security specific risks and corresponding discount rates. The cost approach considers factors including the value of the security's underlying assets and liabilities.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
The following provides information on Level 3 securities held by the Fund that were valued at period end based on unobservable inputs. These amounts exclude valuations provided by a broker.
Asset Type | Fair Value | Valuation Technique(s) | Unobservable Input | Amount or Range/Weighted Average | Impact to Valuation from an Increase in Input(a) |
Equities | $ 1,046,203 | Market comparable | Enterprise value/EBITDA multiple (EV/EBITDA) | 6.9 | Increase |
Discount rate | 15.0% - 20.0% / 17.1 | Decrease | |||
Discount for lack of marketability | 10.0% | Decrease | |||
Market approach | Parity price | $4.95 - $351.56 / $31.72 | Increase | ||
Discount cash flow | Discount rate | 8.1% | Decrease | ||
Discount for lack of marketability | 10.0% | Decrease | |||
Growth rate | 1.5% | Increase | |||
Book value | Book value multiple | 4.5 | Increase | ||
Corporate Bonds | $ 58,749 | Recover value | Recovery value | 0.0% | Increase |
Broker quoted | Bid price | $5.00 - $98.75 / $92.72 | Increase | ||
Bank Loan Obligations | $ 114,203 | Recovery value | Recovery value | 0.0% | Increase |
Market approach | Transaction price | $100.00 | Increase | ||
Broker quoted | Bid price | $102.00 | Increase |
(a) Represents the directional change in the fair value of the Level 3 investments that could have resulted from an increase in the corresponding input as of period end. A decrease to the unobservable input would have had the opposite effect. Significant changes in these inputs may have resulted in a significantly higher or lower fair value measurement at period end.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of October 31, 2020, as well as a roll-forward of Level 3 investments, is included at the end of the Fund's Schedule of Investments.
Foreign Currency. Certain Funds may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received, and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Paid in Kind (PIK) income is recorded at the fair market value of the securities received. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain. Debt obligations may be placed on non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivables when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is reasonably assured.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded daily and paid monthly from net investment income. Distributions from realized gains, if any, are declared and recorded on the ex-dividend date. Income and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, defaulted bonds, market discount, equity-debt classifications, capital loss carryforwards and losses deferred due to wash sales.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
Gross unrealized appreciation | $3,418,400 |
Gross unrealized depreciation | (7,422,996) |
Net unrealized appreciation (depreciation) | $(4,004,596) |
Tax cost | $97,065,095 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of prior fiscal period end and is subject to adjustment.
No expiration | |
Short-term | $(1,322,101) |
Long-term | (4,328,888) |
Total capital loss carryforward | $(5,650,989) |
Delayed Delivery Transactions and When-Issued Securities. During the period, certain Funds transacted in securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. Securities purchased on a delayed delivery or when-issued basis are identified as such in the Schedule of Investments. Compensation for interest forgone in the purchase of a delayed delivery or when-issued debt security may be received. With respect to purchase commitments, each applicable Fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Payables and receivables associated with the purchases and sales of delayed delivery securities having the same coupon, settlement date and broker are offset. Delayed delivery or when-issued securities that have been purchased from and sold to different brokers are reflected as both payables and receivables in the Statement of Assets and Liabilities under the caption "Delayed delivery", as applicable. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.
Restricted Securities (including Private Placements). The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
Loans and Other Direct Debt Instruments. Direct debt instruments are interests in amounts owed to lenders by corporate or other borrowers. These instruments may be in the form of loans, trade claims or other receivables and may include standby financing commitments such as revolving credit facilities that obligate a fund to supply additional cash to the borrower on demand. Loans may be acquired through assignment, participation, or may be made directly to a borrower. Such instruments are presented in the Bank Loan Obligations section in the Schedule of Investments. Certain funds may also invest in unfunded loan commitments, which are contractual obligations for future funding. Information regarding unfunded commitments is included at the end of the Schedule of Investments, if applicable.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, are noted in the table below.
Purchases ($) | Sales ($) | |
Fidelity Global High Income Fund | 25,662,317 | 31,413,417 |
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company LLC (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .60% of the Fund's average net assets and an annualized group fee rate that averaged .10% during the period. The group fee rate is based upon the monthly average net assets of a group of registered investment companies with which the investment adviser has management contracts. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annualized management fee rate was .70% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Company LLC (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
Distribution Fee | Service Fee | Total Fees | Retained by FDC | |
Class A | -% | .25% | $7,867 | $102 |
Class M | -% | .25% | 3,580 | 6 |
Class C | .75% | .25% | 14,588 | 1,084 |
$26,035 | $1,192 |
Sales Load. FDC may receive a front-end sales charge of up to 4.00% for selling Class A shares and Class M shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class M and Class C redemptions. The deferred sales charges are 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class M shares.
For the period, sales charge amounts retained by FDC were as follows:
Retained by FDC | |
Class A | $282 |
Class M | 38 |
Class C(a) | 92 |
$412 |
(a) When Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company LLC (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
Amount | % of Class-Level Average Net Assets(a) | |
Class A | $5,822 | .18 |
Class M | 3,595 | .25 |
Class C | 3,456 | .24 |
Global High Income | 53,368 | .14 |
Class I | 3,846 | .14 |
$70,087 |
(a) Annualized
Accounting Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. For the period, the fees were equivalent to the following annualized rates:
% of Average Net Assets | |
Fidelity Global High Income Fund | .04 |
Interfund Trades. Funds may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
6. Committed Line of Credit.
Certain Funds participate with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The participating funds have agreed to pay commitment fees on their pro-rata portion of the line of credit, which are reflected in Miscellaneous expenses on the Statement of Operations, and are as follows:
Amount | |
Fidelity Global High Income Fund | $106 |
During the period, there were no borrowings on this line of credit.
7. Security Lending.
Funds lend portfolio securities from time to time in order to earn additional income. Lending agents are used, including National Financial Services (NFS), an affiliate of the investment adviser. Pursuant to a securities lending agreement, NFS will receive a fee, which is capped at 9.9% of a fund's daily lending revenue, for its services as lending agent. A fund may lend securities to certain qualified borrowers, including NFS. On the settlement date of the loan, a fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of a fund and any additional required collateral is delivered to a fund on the next business day. A fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund may apply collateral received from the borrower against the obligation. A fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. Any loaned securities are identified as such in the Schedule of Investments, and the value of loaned securities and cash collateral at period end, as applicable, are presented in the Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Affiliated security lending activity, if any, was as follows:
Total Security Lending Income Fees Paid to NFS | Security Lending Income From Securities Loaned to NFS | Value of Securities Loaned to NFS at Period End | |
Fidelity Global High Income Fund | $212 | $– | $– |
8. Expense Reductions.
The investment adviser contractually agreed to reimburse expenses of each class to the extent annual operating expenses exceeded certain levels of class-level average net assets as noted in the table below. This reimbursement will remain in place through August 31, 2021. Some expenses, for example the compensation of the independent Trustees, and certain miscellaneous expenses such as proxy and shareholder meeting expenses, are excluded from this reimbursement.
The following classes were in reimbursement during the period:
Expense Limitations | Reimbursement | |
Class A | 1.25% | $2,072 |
Class M | 1.25% | 1,923 |
Class C | 2.00% | 1,630 |
Global High Income | 1.00% | 7,519 |
Class I | 1.00% | 492 |
$13,636 |
Through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses. During the period, custodian credits reduced the Fund's expenses by $1,248.
In addition, during the period the investment adviser or an affiliate reimbursed and/or waived a portion of fund-level operating expenses in the amount of $121.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended October 31, 2020 | Year ended April 30, 2020 | |
Distributions to shareholders | ||
Class A | $134,545 | $319,152 |
Class M | 61,404 | 175,538 |
Class C | 51,325 | 133,488 |
Global High Income | 1,771,494 | 4,505,816 |
Class I | 120,223 | 352,864 |
Total | $2,138,991 | $5,486,858 |
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
Shares | Shares | Dollars | Dollars | |
Six months ended October 31, 2020 | Year ended April 30, 2020 | Six months ended October 31, 2020 | Year ended April 30, 2020 | |
Class A | ||||
Shares sold | 24,116 | 197,034 | $218,143 | $1,858,939 |
Reinvestment of distributions | 14,164 | 33,059 | 128,745 | 305,262 |
Shares redeemed | (47,741) | (299,995) | (425,807) | (2,770,187) |
Net increase (decrease) | (9,461) | (69,902) | $(78,919) | $(605,986) |
Class M | ||||
Shares sold | 9,862 | 77,844 | $90,808 | $706,114 |
Reinvestment of distributions | 6,570 | 18,336 | 59,657 | 169,732 |
Shares redeemed | (69,979) | (165,796) | (632,580) | (1,461,219) |
Net increase (decrease) | (53,547) | (69,616) | $(482,115) | $(585,373) |
Class C | ||||
Shares sold | 20,799 | 41,564 | $187,868 | $394,093 |
Reinvestment of distributions | 5,555 | 14,119 | 50,499 | 130,433 |
Shares redeemed | (24,910) | (128,235) | (224,930) | (1,134,831) |
Net increase (decrease) | 1,444 | (72,552) | $13,437 | $(610,305) |
Global High Income | ||||
Shares sold | 1,617,023 | 2,579,185 | $14,698,537 | $24,201,126 |
Reinvestment of distributions | 161,854 | 399,861 | 1,471,777 | 3,695,269 |
Shares redeemed | (2,096,766) | (4,564,449) | (19,142,836) | (41,279,073) |
Net increase (decrease) | (317,889) | (1,585,403) | $(2,972,522) | $(13,382,678) |
Class I | ||||
Shares sold | 334,822 | 747,752 | $3,093,923 | $7,064,718 |
Reinvestment of distributions | 10,523 | 32,909 | 95,906 | 305,644 |
Shares redeemed | (371,236) | (1,037,268) | (3,401,279) | (9,593,616) |
Net increase (decrease) | (25,891) | (256,607) | $(211,450) | $(2,223,254) |
11. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
12. Credit Risk.
The Fund's relatively large investment in countries with limited or developing capital markets may involve greater risks than investments in more developed markets and the prices of such investments may be volatile. The yields of emerging market debt obligations reflect, among other things, perceived credit risk. The consequences of political, social or economic changes in these markets may have disruptive effects on the market prices of the Fund's investments and the income they generate, as well as the Fund's ability to repatriate such amounts.
13. Coronavirus (COVID-19) Pandemic.
An outbreak of COVID-19 first detected in China during December 2019 has since spread globally and was declared a pandemic by the World Health Organization during March 2020. Developments that disrupt global economies and financial markets, such as the COVID-19 pandemic, may magnify factors that affect the Fund's performance.
Shareholder Expense Example
As a shareholder, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or redemption proceeds, as applicable and (2) ongoing costs, which generally include management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in a fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (May 1, 2020 to October 31, 2020).
Actual Expenses
The first line of the accompanying table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class/Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. If any fund is a shareholder of any underlying mutual funds or exchange-traded funds (ETFs) (the Underlying Funds), such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses incurred presented in the table. These fees and expenses are not included in the annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. If any fund is a shareholder of any Underlying Funds, such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses as presented in the table. These fees and expenses are not included in the annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Annualized Expense Ratio-A | Beginning Account Value May 1, 2020 | Ending Account Value October 31, 2020 | Expenses Paid During Period-B May 1, 2020 to October 31, 2020 | |
Fidelity Global High Income Fund | ||||
Class A | 1.25% | |||
Actual | $1,000.00 | $1,115.40 | $6.66 | |
Hypothetical-C | $1,000.00 | $1,018.90 | $6.36 | |
Class M | 1.25% | |||
Actual | $1,000.00 | $1,115.40 | $6.66 | |
Hypothetical-C | $1,000.00 | $1,018.90 | $6.36 | |
Class C | 2.00% | |||
Actual | $1,000.00 | $1,111.20 | $10.64 | |
Hypothetical-C | $1,000.00 | $1,015.12 | $10.16 | |
Global High Income | 1.00% | |||
Actual | $1,000.00 | $1,116.80 | $5.34 | |
Hypothetical-C | $1,000.00 | $1,020.16 | $5.09 | |
Class I | 1.00% | |||
Actual | $1,000.00 | $1,116.80 | $5.34 | |
Hypothetical-C | $1,000.00 | $1,020.16 | $5.09 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/ 365 (to reflect the one-half year period). The fees and expenses of any Underlying Funds are not included in each annualized expense ratio.
C 5% return per year before expenses
Proxy Voting Results
A special meeting of shareholders was held on June 9, 2020. The results of votes taken among shareholders on the proposals before them are reported below. Each vote reported represents one dollar of net asset value held on the record date for the meeting.
PROPOSAL 1
To elect a Board of Trustees.
# of Votes | % of Votes | |
Dennis J. Dirks | ||
Affirmative | 16,477,844,543.945 | 94.954 |
Withheld | 875,616,757.045 | 5.046 |
TOTAL | 17,353,461,300.990 | 100.000 |
Donald F. Donahue | ||
Affirmative | 16,475,304,981.550 | 94.940 |
Withheld | 878,156,319.440 | 5.060 |
TOTAL | 17,353,461,300.990 | 100.000 |
Bettina Doulton | ||
Affirmative | 16,570,440,321.103 | 95.488 |
Withheld | 783,020,979.887 | 4.512 |
TOTAL | 17,353,461,300.990 | 100.000 |
Vicki L. Fuller | ||
Affirmative | 16,590,910,486.905 | 95.606 |
Withheld | 762,550,814.085 | 4.394 |
TOTAL | 17,353,461,300.990 | 100.00 |
Patricia L. Kampling | ||
Affirmative | 16,469,872,791.586 | 94.908 |
Withheld | 883,588,509.404 | 5.092 |
TOTAL | 17,353,461,300.990 | 100.000 |
Alan J. Lacy | ||
Affirmative | 16,344,655,183.636 | 94.187 |
Withheld | 1,008,806,117.354 | 5.813 |
TOTAL | 17,353,461,300.990 | 100.000 |
Ned C. Lautenbach | ||
Affirmative | 15,532,663,704.227 | 89.508 |
Withheld | 1,820,797,596.763 | 10.492 |
TOTAL | 17,353,461,300.990 | 100.000 |
Robert A. Lawrence | ||
Affirmative | 16,389,821,876.677 | 94.447 |
Withheld | 963,639,424.313 | 5.553 |
TOTAL | 17,353,461,300.990 | 100.000 |
Joseph Mauriello | ||
Affirmative | 16,363,427,626.626 | 94.295 |
Withheld | 990,033,674.365 | 5.705 |
TOTAL | 17,353,461,300.990 | 100.000 |
Cornelia M. Small | ||
Affirmative | 16,405,902,888.605 | 94.540 |
Withheld | 947,558,412.386 | 5.460 |
TOTAL | 17,353,461,300.990 | 100.000 |
Garnett A. Smith | ||
Affirmative | 16,371,912,270.945 | 94.344 |
Withheld | 981,549,030.045 | 5.656 |
TOTAL | 17,353,461,300.990 | 100.000 |
David M. Thomas | ||
Affirmative | 16,365,966,852.048 | 94.310 |
Withheld | 987,494,448.942 | 5.690 |
TOTAL | 17,353,461,300.990 | 100.000 |
Susan Tomasky | ||
Affirmative | 16,483,922,579.861 | 94.989 |
Withheld | 869,538,721.129 | 5.011 |
TOTAL | 17,353,461,300.990 | 100.000 |
Michael E. Wiley | ||
Affirmative | 16,379,083,262.890 | 94.385 |
Withheld | 974,378,038.101 | 5.615 |
TOTAL | 17,353,461,300.990 | 100.000 |
PROPOSAL 2
To convert a fundamental investment policy to a non-fundamental investment policy.
# of Votes | % of Votes | |
Affirmative | 39,488,970.943 | 74.679 |
Against | 4,261,035.626 | 8.058 |
Abstain | 4,185,244.810 | 7.915 |
Broker Non-Vote | 4,942,828.800 | 9.348 |
TOTAL | 52,878,080.179 | 100.000 |
Proposal 1 reflects trust wide proposal and voting results. |
GHI-SANN-1220
1.926252.109
Fidelity® Short Duration High Income Fund
Semi-Annual Report
October 31, 2020
Includes Fidelity and Fidelity Advisor share classes
See the inside front cover for important information about access to your fund’s shareholder reports.
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of a fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a financial advisor, broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
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Contents
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-800-544-8544 if you’re an individual investing directly with Fidelity, call 1-800-835-5092 if you’re a plan sponsor or participant with Fidelity as your recordkeeper or call 1-877-208-0098 on institutional accounts or if you’re an advisor or invest through one to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2020 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT. Forms N-PORT are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-PORT may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Note to Shareholders:
Early in 2020, the outbreak and spread of a new coronavirus emerged as a public health emergency that had a major influence on financial markets, primarily based on its impact on the global economy and the outlook for corporate earnings. The virus causes a respiratory disease known as COVID-19. On March 11, the World Health Organization declared the COVID-19 outbreak a pandemic, citing sustained risk of further global spread.
In the weeks following, as the crisis worsened, we witnessed an escalating human tragedy with wide-scale social and economic consequences from coronavirus-containment measures. The outbreak of COVID-19 prompted a number of measures to limit the spread, including travel and border restrictions, quarantines, and restrictions on large gatherings. In turn, these resulted in lower consumer activity, diminished demand for a wide range of products and services, disruption in manufacturing and supply chains, and – given the wide variability in outcomes regarding the outbreak – significant market uncertainty and volatility. Amid the turmoil, global governments and central banks took unprecedented action to help support consumers, businesses, and the broader economies, and to limit disruption to financial systems.
The situation continues to unfold, and the extent and duration of its impact on financial markets and the economy remain highly uncertain. Extreme events such as the coronavirus crisis are “exogenous shocks” that can have significant adverse effects on mutual funds and their investments. Although multiple asset classes may be affected by market disruption, the duration and impact may not be the same for all types of assets.
Fidelity is committed to helping you stay informed amid news about COVID-19 and during increased market volatility, and we’re taking extra steps to be responsive to customer needs. We encourage you to visit our websites, where we offer ongoing updates, commentary, and analysis on the markets and our funds.
Investment Summary (Unaudited)
Top Five Holdings as of October 31, 2020
(by issuer, excluding cash equivalents) | % of fund's net assets |
JBS U.S.A. LLC/JBS U.S.A. Finance, Inc. | 4.2 |
CCO Holdings LLC/CCO Holdings Capital Corp. | 3.6 |
Sprint Corp. | 3.4 |
Aramark Services, Inc. | 3.0 |
Intelsat Jackson Holdings SA | 2.8 |
17.0 |
Top Five Market Sectors as of October 31, 2020
% of fund's net assets | |
Telecommunications | 17.8 |
Energy | 9.1 |
Cable/Satellite TV | 8.2 |
Healthcare | 7.9 |
Services | 7.8 |
Quality Diversification (% of fund's net assets)
As of October 31, 2020 | ||
BBB | 6.1% | |
BB | 40.0% | |
B | 43.2% | |
CCC,CC,C | 5.1% | |
Not Rated | 3.0% | |
Equities | 0.5% | |
Short-Term Investments and Net Other Assets | 2.1% |
We have used ratings from Moody's Investors Service, Inc. Where Moody's® ratings are not available, we have used S&P® ratings. All ratings are as of the date indicated and do not reflect subsequent changes.
Asset Allocation (% of fund's net assets)
As of October 31, 2020* | ||
Nonconvertible Bonds | 96.0% | |
Convertible Bonds, Preferred Stocks | 0.5% | |
Common Stocks | 0.5% | |
Bank Loan Obligations | 0.9% | |
Short-Term Investments and Net Other Assets (Liabilities) | 2.1% |
* Foreign investments - 22.3%
Schedule of Investments October 31, 2020 (Unaudited)
Showing Percentage of Net Assets
Corporate Bonds - 96.5% | |||
Principal Amount | Value | ||
Convertible Bonds - 0.5% | |||
Broadcasting - 0.5% | |||
DISH Network Corp. 2.375% 3/15/24 | $510,000 | $458,105 | |
Energy - 0.0% | |||
Mesquite Energy, Inc. 15% 7/31/23 (a)(b) | 12,585 | 12,585 | |
TOTAL CONVERTIBLE BONDS | 470,690 | ||
Nonconvertible Bonds - 96.0% | |||
Aerospace - 2.0% | |||
Kaiser Aluminum Corp. 6.5% 5/1/25 (c) | 735,000 | 779,100 | |
TransDigm, Inc.: | |||
5.5% 11/15/27 | 535,000 | 522,294 | |
6.25% 3/15/26 (c) | 515,000 | 536,888 | |
7.5% 3/15/27 | 25,000 | 25,813 | |
1,864,095 | |||
Automotive & Auto Parts - 1.4% | |||
Ford Motor Credit Co. LLC: | |||
3.219% 1/9/22 | 105,000 | 104,345 | |
3.339% 3/28/22 | 80,000 | 79,800 | |
4.25% 9/20/22 | 600,000 | 608,494 | |
4.687% 6/9/25 | 455,000 | 465,920 | |
5.113% 5/3/29 | 35,000 | 36,356 | |
1,294,915 | |||
Banks & Thrifts - 2.5% | |||
Ally Financial, Inc.: | |||
3.875% 5/21/24 | 970,000 | 1,043,186 | |
4.125% 2/13/22 | 1,200,000 | 1,250,276 | |
2,293,462 | |||
Broadcasting - 2.8% | |||
Netflix, Inc. 4.375% 11/15/26 | 685,000 | 743,555 | |
Sirius XM Radio, Inc. 3.875% 8/1/22 (c) | 1,830,000 | 1,843,725 | |
2,587,280 | |||
Building Materials - 0.3% | |||
Advanced Drain Systems, Inc. 5% 9/30/27 (c) | 245,000 | 256,363 | |
Cable/Satellite TV - 8.2% | |||
Cablevision Systems Corp. 5.875% 9/15/22 | 2,145,000 | 2,262,975 | |
CCO Holdings LLC/CCO Holdings Capital Corp. 4% 3/1/23 (c) | 3,315,000 | 3,348,150 | |
DISH DBS Corp.: | |||
5.875% 7/15/22 | 1,260,000 | 1,297,800 | |
6.75% 6/1/21 | 430,000 | 438,600 | |
Radiate Holdco LLC/Radiate Financial Service Ltd. 4.5% 9/15/26 (c) | 245,000 | 246,225 | |
7,593,750 | |||
Capital Goods - 0.6% | |||
Vertical U.S. Newco, Inc. 5.25% 7/15/27 (c) | 525,000 | 540,330 | |
Chemicals - 3.2% | |||
Blue Cube Spinco, Inc. 9.75% 10/15/23 | 166,000 | 169,943 | |
CF Industries Holdings, Inc.: | |||
3.4% 12/1/21 (c) | 30,000 | 30,742 | |
3.45% 6/1/23 | 805,000 | 823,113 | |
Consolidated Energy Finance SA 3 month U.S. LIBOR + 3.750% 4.0004% 6/15/22 (c)(d)(e) | 520,000 | 497,012 | |
NOVA Chemicals Corp. 5.25% 8/1/23 (c) | 500,000 | 497,500 | |
The Chemours Co. LLC 6.625% 5/15/23 | 950,000 | 947,625 | |
2,965,935 | |||
Consumer Products - 0.2% | |||
Mattel, Inc.: | |||
5.875% 12/15/27 (c) | 10,000 | 10,850 | |
6.75% 12/31/25 (c) | 165,000 | 173,539 | |
184,389 | |||
Containers - 1.9% | |||
Ardagh Packaging Finance PLC/Ardagh MP Holdings U.S.A., Inc. 4.125% 8/15/26 (c) | 10,000 | 10,200 | |
Berry Global, Inc.: | |||
4.875% 7/15/26 (c) | 175,000 | 183,313 | |
5.125% 7/15/23 | 302,000 | 305,700 | |
OI European Group BV 4% 3/15/23 (c) | 950,000 | 954,750 | |
Trivium Packaging Finance BV: | |||
5.5% 8/15/26 (c) | 220,000 | 230,450 | |
8.5% 8/15/27 (c) | 100,000 | 107,020 | |
1,791,433 | |||
Diversified Financial Services - 2.9% | |||
Financial & Risk U.S. Holdings, Inc.: | |||
6.25% 5/15/26 (c) | 170,000 | 181,582 | |
8.25% 11/15/26 (c) | 120,000 | 130,794 | |
Icahn Enterprises LP/Icahn Enterprises Finance Corp.: | |||
4.75% 9/15/24 | 1,800,000 | 1,830,744 | |
5.25% 5/15/27 | 535,000 | 553,622 | |
2,696,742 | |||
Diversified Media - 0.9% | |||
Nielsen Finance LLC/Nielsen Finance Co. 5% 4/15/22 (c) | 858,000 | 858,429 | |
Energy - 8.5% | |||
Cheniere Energy Partners LP 5.625% 10/1/26 | 1,430,000 | 1,465,750 | |
Citgo Petroleum Corp. 6.25% 8/15/22 (c) | 650,000 | 609,375 | |
Crestwood Midstream Partners LP/Crestwood Midstream Finance Corp. 6.25% 4/1/23 | 1,800,000 | 1,744,749 | |
CVR Energy, Inc.: | |||
5.25% 2/15/25 (c) | 65,000 | 47,369 | |
5.75% 2/15/28 (c) | 50,000 | 34,125 | |
DCP Midstream Operating LP 5.375% 7/15/25 | 1,400,000 | 1,470,000 | |
PBF Logistics LP/PBF Logistics Finance, Inc. 6.875% 5/15/23 | 190,000 | 149,150 | |
Sanchez Energy Corp. 7.25% 2/15/23 (b)(c)(f) | 135,000 | 0 | |
Sunoco LP/Sunoco Finance Corp.: | |||
4.875% 1/15/23 | 615,000 | 619,613 | |
5.5% 2/15/26 | 70,000 | 70,131 | |
5.875% 3/15/28 | 60,000 | 62,250 | |
6% 4/15/27 | 10,000 | 10,337 | |
Targa Resources Partners LP/Targa Resources Partners Finance Corp.: | |||
4.25% 11/15/23 | 625,000 | 624,934 | |
5.125% 2/1/25 | 1,000,000 | 1,002,500 | |
7,910,283 | |||
Environmental - 1.2% | |||
LBC Tank Terminals Holding Netherlands BV 6.875% 5/15/23 (c) | 1,150,000 | 1,147,125 | |
Food/Beverage/Tobacco - 6.4% | |||
JBS U.S.A. LLC/JBS U.S.A. Finance, Inc. 5.75% 6/15/25 (c) | 3,750,000 | 3,854,990 | |
Post Holdings, Inc.: | |||
4.625% 4/15/30 (c) | 40,000 | 41,050 | |
5% 8/15/26 (c) | 40,000 | 41,480 | |
5.625% 1/15/28 (c) | 125,000 | 131,875 | |
5.75% 3/1/27 (c) | 1,700,000 | 1,781,107 | |
U.S. Foods, Inc. 6.25% 4/15/25 (c) | 75,000 | 78,375 | |
5,928,877 | |||
Gaming - 6.8% | |||
Golden Nugget, Inc. 6.75% 10/15/24 (c) | 800,000 | 677,416 | |
MCE Finance Ltd. 5.25% 4/26/26 (c) | 1,000,000 | 1,004,949 | |
MGM Mirage, Inc. 6% 3/15/23 | 1,000,000 | 1,037,500 | |
Scientific Games Corp. 5% 10/15/25 (c) | 200,000 | 200,750 | |
Station Casinos LLC 5% 10/1/25 (c) | 1,100,000 | 1,094,500 | |
VICI Properties, Inc.: | |||
3.5% 2/15/25 (c) | 1,000,000 | 997,500 | |
4.625% 12/1/29 (c) | 285,000 | 296,118 | |
Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp. 4.25% 5/30/23 (c) | 500,000 | 476,875 | |
Wynn Macau Ltd. 4.875% 10/1/24 (c) | 500,000 | 487,500 | |
6,273,108 | |||
Healthcare - 7.9% | |||
Centene Corp. 5.375% 8/15/26 (c) | 2,100,000 | 2,220,750 | |
Community Health Systems, Inc. 6.25% 3/31/23 | 405,000 | 401,456 | |
Encompass Health Corp. 5.125% 3/15/23 | 255,000 | 256,913 | |
HCA Holdings, Inc.: | |||
4.75% 5/1/23 | 700,000 | 763,850 | |
5% 3/15/24 | 300,000 | 336,015 | |
Tenet Healthcare Corp.: | |||
4.625% 7/15/24 | 210,000 | 213,549 | |
5.125% 11/1/27 (c) | 500,000 | 514,850 | |
6.75% 6/15/23 | 1,165,000 | 1,228,539 | |
Teva Pharmaceutical Finance Netherlands III BV 2.2% 7/21/21 | 65,000 | 63,987 | |
Valeant Pharmaceuticals International, Inc.: | |||
5.875% 5/15/23 (c) | 175,000 | 174,563 | |
9.25% 4/1/26 (c) | 1,000,000 | 1,102,500 | |
Vizient, Inc. 6.25% 5/15/27 (c) | 20,000 | 21,150 | |
7,298,122 | |||
Insurance - 0.0% | |||
Alliant Holdings Intermediate LLC 6.75% 10/15/27 (c) | 20,000 | 21,000 | |
Metals/Mining - 0.6% | |||
First Quantum Minerals Ltd. 7.25% 4/1/23 (c) | 535,000 | 537,842 | |
Freeport-McMoRan, Inc. 3.55% 3/1/22 | 40,000 | 40,600 | |
578,442 | |||
Restaurants - 3.7% | |||
1011778 BC Unlimited Liability Co./New Red Finance, Inc.: | |||
5% 10/15/25 (c) | 568,000 | 582,257 | |
5.75% 4/15/25 (c) | 1,000,000 | 1,065,520 | |
Yum! Brands, Inc.: | |||
3.875% 11/1/23 | 1,225,000 | 1,274,000 | |
7.75% 4/1/25 (c) | 500,000 | 549,225 | |
3,471,002 | |||
Services - 7.8% | |||
AECOM 5.875% 10/15/24 | 2,000,000 | 2,200,000 | |
Aramark Services, Inc.: | |||
5% 4/1/25 (c) | 1,300,000 | 1,319,591 | |
6.375% 5/1/25 (c) | 1,385,000 | 1,452,699 | |
CoreCivic, Inc. 5% 10/15/22 | 1,225,000 | 1,172,938 | |
Laureate Education, Inc. 8.25% 5/1/25 (c) | 1,075,000 | 1,145,101 | |
7,290,329 | |||
Super Retail - 1.9% | |||
EG Global Finance PLC 6.75% 2/7/25 (c) | 700,000 | 686,000 | |
Netflix, Inc. 5.75% 3/1/24 | 1,000,000 | 1,106,250 | |
1,792,250 | |||
Technology - 1.9% | |||
CommScope, Inc.: | |||
5.5% 3/1/24 (c) | 100,000 | 102,227 | |
6% 3/1/26 (c) | 100,000 | 103,737 | |
Sensata Technologies BV: | |||
4.875% 10/15/23 (c) | 155,000 | 164,300 | |
5% 10/1/25 (c) | 1,300,000 | 1,419,139 | |
1,789,403 | |||
Telecommunications - 17.4% | |||
C&W Senior Financing Designated Activity Co.: | |||
6.875% 9/15/27 (c) | 25,000 | 26,325 | |
7.5% 10/15/26 (c) | 1,030,000 | 1,084,580 | |
CenturyLink, Inc. 6.75% 12/1/23 | 600,000 | 652,500 | |
Cogent Communications Group, Inc. 5.375% 3/1/22 (c) | 1,375,000 | 1,399,063 | |
Communications Sales & Leasing, Inc. 8.25% 10/15/23 | 170,000 | 167,450 | |
Intelsat Jackson Holdings SA: | |||
8% 2/15/24 (c) | 955,000 | 969,325 | |
9.5% 9/30/22 (c) | 1,200,000 | 1,308,564 | |
Qwest Corp. 6.75% 12/1/21 | 700,000 | 735,566 | |
Sable International Finance Ltd. 5.75% 9/7/27 (c) | 1,000,000 | 1,060,000 | |
SBA Communications Corp.: | |||
4% 10/1/22 | 500,000 | 504,375 | |
4.875% 9/1/24 | 500,000 | 510,900 | |
SFR Group SA: | |||
7.375% 5/1/26 (c) | 1,125,000 | 1,174,163 | |
8.125% 2/1/27 (c) | 160,000 | 174,000 | |
Sprint Corp.: | |||
7.25% 9/15/21 | 500,000 | 520,790 | |
7.875% 9/15/23 | 2,280,000 | 2,602,050 | |
Telecom Italia SpA 5.303% 5/30/24 (c) | 1,000,000 | 1,081,950 | |
Uniti Group, Inc.: | |||
7.125% 12/15/24 (c) | 365,000 | 348,993 | |
7.875% 2/15/25 (c) | 1,705,000 | 1,807,300 | |
16,127,894 | |||
Utilities - 5.0% | |||
Clearway Energy Operating LLC 5% 9/15/26 | 245,000 | 253,239 | |
Global Partners LP/GLP Finance Corp. 7% 8/1/27 | 62,000 | 63,825 | |
NextEra Energy Partners LP 4.25% 9/15/24 (c) | 455,000 | 476,613 | |
TerraForm Power Operating LLC 4.25% 1/31/23 (c) | 1,350,000 | 1,373,625 | |
The AES Corp. 4.5% 3/15/23 | 108,000 | 108,540 | |
Vistra Operations Co. LLC: | |||
5% 7/31/27 (c) | 225,000 | 235,125 | |
5.625% 2/15/27 (c) | 2,055,000 | 2,142,338 | |
4,653,305 | |||
TOTAL NONCONVERTIBLE BONDS | 89,208,263 | ||
TOTAL CORPORATE BONDS | |||
(Cost $89,413,675) | 89,678,953 | ||
Shares | Value | ||
Common Stocks - 0.5% | |||
Energy - 0.5% | |||
California Resources Corp. (g) | 5 | 67 | |
California Resources Corp. (a) | 9 | 109 | |
California Resources Corp. warrants 10/27/24 (g) | 2 | 0 | |
Denbury, Inc. (g) | 28,208 | 467,971 | |
Forbes Energy Services Ltd. (g) | 6,468 | 614 | |
Sanchez Energy Corp. (b) | 678 | 17,467 | |
TOTAL COMMON STOCKS | |||
($1,108,357) | 486,228 | ||
Principal Amount | Value | ||
Bank Loan Obligations - 0.9% | |||
Energy - 0.1% | |||
Forbes Energy Services LLC Tranche B, term loan 18% 4/13/21 (b)(d)(h) | 68,606 | 69,121 | |
Sanchez Energy Corp.: | |||
1LN, term loan 3 month U.S. LIBOR + 8.000% 0% 12/31/49 (b)(e)(f)(h) | 35,876 | 0 | |
term loan 3 month U.S. LIBOR + 0.000% 0% 12/31/49 (b)(e)(f)(h) | 15,000 | 0 | |
TOTAL ENERGY | 69,121 | ||
Food & Drug Retail - 0.1% | |||
Tops Markets LLC 1LN, term loan 3 month U.S. LIBOR + 8.500% 9.5% 11/19/23 (b)(d)(e)(h) | 64,559 | 65,851 | |
Gaming - 0.3% | |||
Golden Entertainment, Inc. Tranche B, term loan 3 month U.S. LIBOR + 3.000% 3.75% 10/20/24 (d)(e)(h) | 40,000 | 38,550 | |
Golden Nugget, Inc. Tranche B 1LN, term loan 3 month U.S. LIBOR + 2.500% 3.25% 10/4/23 (d)(e)(h) | 293,202 | 257,652 | |
TOTAL GAMING | 296,202 | ||
Telecommunications - 0.4% | |||
Intelsat Jackson Holdings SA Tranche DD 1LN, term loan 3 month U.S. LIBOR + 5.500% 5.05% 7/13/22 (d)(e)(h)(i) | 423,471 | 429,823 | |
TOTAL BANK LOAN OBLIGATIONS | |||
(Cost $881,481) | 860,997 | ||
Shares | Value | ||
Money Market Funds - 1.0% | |||
Fidelity Cash Central Fund 0.10% (j) | |||
(Cost $962,165) | 962,012 | 962,204 | |
TOTAL INVESTMENT IN SECURITIES - 98.9% | |||
(Cost $92,365,678) | 91,988,382 | ||
NET OTHER ASSETS (LIABILITIES) - 1.1% | 993,922 | ||
NET ASSETS - 100% | $92,982,304 |
Legend
(a) Restricted securities (including private placements) - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $12,694 or 0.0% of net assets.
(b) Level 3 security
(c) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $52,263,856 or 56.2% of net assets.
(d) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end.
(e) Coupon is indexed to a floating interest rate which may be multiplied by a specified factor and/or subject to caps or floors.
(f) Non-income producing - Security is in default.
(g) Non-income producing
(h) Remaining maturities of bank loan obligations may be less than the stated maturities shown as a result of contractual or optional prepayments by the borrower. Such prepayments cannot be predicted with certainty.
(i) Position or a portion of the position represents an unfunded loan commitment. At period end, the total principal amount and market value of unfunded commitments totaled $211,735 and $214,911, respectively.
(j) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
Additional information on each restricted holding is as follows:
Security | Acquisition Date | Acquisition Cost |
California Resources Corp. | 10/27/20 | $57 |
Mesquite Energy, Inc. 15% 7/31/23 | 7/10/20 - 10/15/20 | $12,585 |
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
Fidelity Cash Central Fund | $2,795 |
Total | $2,795 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable.
Investment Valuation
The following is a summary of the inputs used, as of October 31, 2020, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Equities: | ||||
Energy | $486,228 | $468,652 | $109 | $17,467 |
Corporate Bonds | 89,678,953 | -- | 89,666,368 | 12,585 |
Bank Loan Obligations | 860,997 | -- | 726,025 | 134,972 |
Money Market Funds | 962,204 | 962,204 | -- | -- |
Total Investments in Securities: | $91,988,382 | $1,430,856 | $90,392,502 | $165,024 |
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
United States of America | 77.7% |
Netherlands | 4.4% |
Multi-National | 4.2% |
Luxembourg | 3.3% |
Canada | 3.1% |
Cayman Islands | 2.7% |
France | 1.5% |
Ireland | 1.2% |
Italy | 1.2% |
Others (Individually Less Than 1%) | 0.7% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
October 31, 2020 (Unaudited) | ||
Assets | ||
Investment in securities, at value — See accompanying schedule: Unaffiliated issuers (cost $91,403,513) | $91,026,178 | |
Fidelity Central Funds (cost $962,165) | 962,204 | |
Total Investment in Securities (cost $92,365,678) | $91,988,382 | |
Cash | 505,575 | |
Receivable for investments sold | 47,138 | |
Receivable for fund shares sold | 276,721 | |
Interest receivable | 1,131,001 | |
Distributions receivable from Fidelity Central Funds | 302 | |
Prepaid expenses | 163 | |
Receivable from investment adviser for expense reductions | 37,947 | |
Total assets | 93,987,229 | |
Liabilities | ||
Payable for investments purchased | $763,406 | |
Payable for fund shares redeemed | 108,136 | |
Distributions payable | 33,447 | |
Accrued management fee | 42,727 | |
Distribution and service plan fees payable | 6,121 | |
Other affiliated payables | 12,379 | |
Other payables and accrued expenses | 38,709 | |
Total liabilities | 1,004,925 | |
Net Assets | $92,982,304 | |
Net Assets consist of: | ||
Paid in capital | $101,976,573 | |
Total accumulated earnings (loss) | (8,994,269) | |
Net Assets | $92,982,304 | |
Net Asset Value and Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($13,755,337 ÷ 1,484,707 shares)(a) | $9.26 | |
Maximum offering price per share (100/96.00 of $9.26) | $9.65 | |
Class M: | ||
Net Asset Value and redemption price per share ($2,195,068 ÷ 236,949 shares)(a) | $9.26 | |
Maximum offering price per share (100/96.00 of $9.26) | $9.65 | |
Class C: | ||
Net Asset Value and offering price per share ($3,341,101 ÷ 360,579 shares)(a) | $9.27 | |
Short Duration High Income: | ||
Net Asset Value, offering price and redemption price per share ($66,681,649 ÷ 7,197,129 shares) | $9.27 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($4,827,351 ÷ 521,017 shares) | $9.27 | |
Class Z: | ||
Net Asset Value, offering price and redemption price per share ($2,181,798 ÷ 235,416 shares) | $9.27 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended October 31, 2020 (Unaudited) | ||
Investment Income | ||
Dividends | $15,286 | |
Interest | 1,958,638 | |
Income from Fidelity Central Funds | 2,795 | |
Total income | 1,976,719 | |
Expenses | ||
Management fee | $255,136 | |
Transfer agent fees | 55,893 | |
Distribution and service plan fees | 37,627 | |
Accounting fees and expenses | 19,253 | |
Custodian fees and expenses | 1,273 | |
Independent trustees' fees and expenses | 258 | |
Registration fees | 74,505 | |
Audit | 34,649 | |
Legal | 1,354 | |
Miscellaneous | 323 | |
Total expenses before reductions | 480,271 | |
Expense reductions | (70,072) | |
Total expenses after reductions | 410,199 | |
Net investment income (loss) | 1,566,520 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | (470,989) | |
Fidelity Central Funds | 172 | |
Total net realized gain (loss) | (470,817) | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 4,365,210 | |
Fidelity Central Funds | (141) | |
Total change in net unrealized appreciation (depreciation) | 4,365,069 | |
Net gain (loss) | 3,894,252 | |
Net increase (decrease) in net assets resulting from operations | $5,460,772 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended October 31, 2020 (Unaudited) | Year ended April 30, 2020 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $1,566,520 | $4,477,003 |
Net realized gain (loss) | (470,817) | (4,197,100) |
Change in net unrealized appreciation (depreciation) | 4,365,069 | (4,145,629) |
Net increase (decrease) in net assets resulting from operations | 5,460,772 | (3,865,726) |
Distributions to shareholders | (1,554,641) | (4,465,978) |
Share transactions - net increase (decrease) | 665,440 | (18,299,860) |
Total increase (decrease) in net assets | 4,571,571 | (26,631,564) |
Net Assets | ||
Beginning of period | 88,410,733 | 115,042,297 |
End of period | $92,982,304 | $88,410,733 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Short Duration High Income Fund Class A
Six months ended (Unaudited) October 31, | Years endedApril 30, | |||||
2020 | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $8.87 | $9.44 | $9.42 | $9.57 | $9.14 | $9.86 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .148 | .348 | .409 | .381 | .395 | .429 |
Net realized and unrealized gain (loss) | .388 | (.571) | .004B | (.159) | .397 | (.737) |
Total from investment operations | .536 | (.223) | .413 | .222 | .792 | (.308) |
Distributions from net investment income | (.146) | (.347) | (.393) | (.373) | (.365) | (.413) |
Distributions from net realized gain | – | – | – | – | – | (.002) |
Total distributions | (.146) | (.347) | (.393) | (.373) | (.365) | (.415) |
Redemption fees added to paid in capitalA | – | – | – | .001 | .003 | .003 |
Net asset value, end of period | $9.26 | $8.87 | $9.44 | $9.42 | $9.57 | $9.14 |
Total ReturnC,D,E | 6.06% | (2.47)% | 4.52% | 2.36% | 8.84% | (3.06)% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | 1.22%H | 1.15% | 1.15% | 1.16% | 1.22% | 1.24% |
Expenses net of fee waivers, if any | 1.05%H | 1.05% | 1.05% | 1.05% | 1.05% | 1.05% |
Expenses net of all reductions | 1.05%H | 1.05% | 1.05% | 1.05% | 1.05% | 1.05% |
Net investment income (loss) | 3.18%H | 3.74% | 4.37% | 4.00% | 4.21% | 4.65% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $13,755 | $12,603 | $15,050 | $12,351 | $9,304 | $6,823 |
Portfolio turnover rateI | 65%H | 77% | 33% | 65% | 105% | 56% |
A Calculated based on average shares outstanding during the period.
B The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the sales charges.
F Fees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
H Annualized
I Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
See accompanying notes which are an integral part of the financial statements.
Fidelity Short Duration High Income Fund Class M
Six months ended (Unaudited) October 31, | Years endedApril 30, | |||||
2020 | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $8.86 | $9.44 | $9.42 | $9.57 | $9.14 | $9.86 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .148 | .348 | .408 | .382 | .395 | .433 |
Net realized and unrealized gain (loss) | .398 | (.581) | .005B | (.160) | .397 | (.741) |
Total from investment operations | .546 | (.233) | .413 | .222 | .792 | (.308) |
Distributions from net investment income | (.146) | (.347) | (.393) | (.373) | (.365) | (.413) |
Distributions from net realized gain | – | – | – | – | – | (.002) |
Total distributions | (.146) | (.347) | (.393) | (.373) | (.365) | (.415) |
Redemption fees added to paid in capitalA | – | – | – | .001 | .003 | .003 |
Net asset value, end of period | $9.26 | $8.86 | $9.44 | $9.42 | $9.57 | $9.14 |
Total ReturnC,D,E | 6.18% | (2.58)% | 4.52% | 2.36% | 8.84% | (3.06)% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | 1.23%H | 1.16% | 1.16% | 1.16% | 1.22% | 1.25% |
Expenses net of fee waivers, if any | 1.05%H | 1.05% | 1.05% | 1.05% | 1.05% | 1.05% |
Expenses net of all reductions | 1.05%H | 1.05% | 1.05% | 1.05% | 1.05% | 1.05% |
Net investment income (loss) | 3.18%H | 3.74% | 4.37% | 4.00% | 4.21% | 4.65% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $2,195 | $2,106 | $2,537 | $2,081 | $2,703 | $2,426 |
Portfolio turnover rateI | 65%H | 77% | 33% | 65% | 105% | 56% |
A Calculated based on average shares outstanding during the period.
B The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the sales charges.
F Fees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
H Annualized
I Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
See accompanying notes which are an integral part of the financial statements.
Fidelity Short Duration High Income Fund Class C
Six months ended (Unaudited) October 31, | Years endedApril 30, | |||||
2020 | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $8.87 | $9.44 | $9.42 | $9.57 | $9.15 | $9.86 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .113 | .278 | .338 | .310 | .325 | .360 |
Net realized and unrealized gain (loss) | .399 | (.571) | .005B | (.159) | .386 | (.728) |
Total from investment operations | .512 | (.293) | .343 | .151 | .711 | (.368) |
Distributions from net investment income | (.112) | (.277) | (.323) | (.302) | (.294) | (.343) |
Distributions from net realized gain | – | – | – | – | – | (.002) |
Total distributions | (.112) | (.277) | (.323) | (.302) | (.294) | (.345) |
Redemption fees added to paid in capitalA | – | – | – | .001 | .003 | .003 |
Net asset value, end of period | $9.27 | $8.87 | $9.44 | $9.42 | $9.57 | $9.15 |
Total ReturnC,D,E | 5.78% | (3.20)% | 3.74% | 1.59% | 7.92% | (3.68)% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | 1.99%H | 1.93% | 1.92% | 1.93% | 2.00% | 2.00% |
Expenses net of fee waivers, if any | 1.80%H | 1.80% | 1.80% | 1.80% | 1.80% | 1.80% |
Expenses net of all reductions | 1.80%H | 1.80% | 1.80% | 1.80% | 1.80% | 1.80% |
Net investment income (loss) | 2.42%H | 2.99% | 3.61% | 3.25% | 3.46% | 3.90% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $3,341 | $4,017 | $4,541 | $5,146 | $5,387 | $3,827 |
Portfolio turnover rateI | 65%H | 77% | 33% | 65% | 105% | 56% |
A Calculated based on average shares outstanding during the period.
B The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the contingent deferred sales charge.
F Fees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
H Annualized
I Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
See accompanying notes which are an integral part of the financial statements.
Fidelity Short Duration High Income Fund
Six months ended (Unaudited) October 31, | Years endedApril 30, | |||||
2020 | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $8.87 | $9.44 | $9.42 | $9.57 | $9.15 | $9.86 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .159 | .372 | .431 | .405 | .420 | .455 |
Net realized and unrealized gain (loss) | .399 | (.572) | .006B | (.159) | .385 | (.730) |
Total from investment operations | .558 | (.200) | .437 | .246 | .805 | (.275) |
Distributions from net investment income | (.158) | (.370) | (.417) | (.397) | (.388) | (.436) |
Distributions from net realized gain | – | – | – | – | – | (.002) |
Total distributions | (.158) | (.370) | (.417) | (.397) | (.388) | (.438) |
Redemption fees added to paid in capitalA | – | – | – | .001 | .003 | .003 |
Net asset value, end of period | $9.27 | $8.87 | $9.44 | $9.42 | $9.57 | $9.15 |
Total ReturnC,D | 6.31% | (2.23)% | 4.78% | 2.61% | 9.00% | (2.71)% |
Ratios to Average Net AssetsE,F | ||||||
Expenses before reductions | .94%G | .86% | .86% | .86% | .93% | .96% |
Expenses net of fee waivers, if any | .80%G | .80% | .80% | .80% | .80% | .80% |
Expenses net of all reductions | .80%G | .80% | .80% | .80% | .80% | .80% |
Net investment income (loss) | 3.43%G | 3.99% | 4.61% | 4.25% | 4.46% | 4.90% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $66,683 | $63,703 | $88,429 | $83,652 | $68,646 | $47,531 |
Portfolio turnover rateH | 65%G | 77% | 33% | 65% | 105% | 56% |
A Calculated based on average shares outstanding during the period.
B The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Fees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
G Annualized
H Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
See accompanying notes which are an integral part of the financial statements.
Fidelity Short Duration High Income Fund Class I
Six months ended (Unaudited) October 31, | Years endedApril 30, | |||||
2020 | 2020 | 2019 | 2018 | 2017 | 2016 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $8.87 | $9.44 | $9.42 | $9.57 | $9.15 | $9.86 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .159 | .372 | .430 | .406 | .420 | .460 |
Net realized and unrealized gain (loss) | .399 | (.572) | .007B | (.160) | .385 | (.735) |
Total from investment operations | .558 | (.200) | .437 | .246 | .805 | (.275) |
Distributions from net investment income | (.158) | (.370) | (.417) | (.397) | (.388) | (.436) |
Distributions from net realized gain | – | – | – | – | – | (.002) |
Total distributions | (.158) | (.370) | (.417) | (.397) | (.388) | (.438) |
Redemption fees added to paid in capitalA | – | – | – | .001 | .003 | .003 |
Net asset value, end of period | $9.27 | $8.87 | $9.44 | $9.42 | $9.57 | $9.15 |
Total ReturnC,D | 6.31% | (2.23)% | 4.78% | 2.61% | 8.99% | (2.71)% |
Ratios to Average Net AssetsE,F | ||||||
Expenses before reductions | .99%G | .89% | .89% | .91% | .96% | .99% |
Expenses net of fee waivers, if any | .80%G | .80% | .80% | .80% | .80% | .80% |
Expenses net of all reductions | .79%G | .80% | .80% | .80% | .80% | .80% |
Net investment income (loss) | 3.43%G | 3.99% | 4.60% | 4.25% | 4.46% | 4.90% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $4,827 | $3,950 | $4,060 | $4,686 | $10,122 | $2,856 |
Portfolio turnover rateH | 65%G | 77% | 33% | 65% | 105% | 56% |
A Calculated based on average shares outstanding during the period.
B The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Fees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
G Annualized
H Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
See accompanying notes which are an integral part of the financial statements.
Fidelity Short Duration High Income Fund Class Z
Six months ended (Unaudited) October 31, | Years endedApril 30, | ||
2020 | 2020 | 2019 A | |
Selected Per–Share Data | |||
Net asset value, beginning of period | $8.87 | $9.45 | $9.46 |
Income from Investment Operations | |||
Net investment income (loss)B | .163 | .378 | .261 |
Net realized and unrealized gain (loss) | .399 | (.579) | (.016) |
Total from investment operations | .562 | (.201) | .245 |
Distributions from net investment income | (.162) | (.379) | (.255) |
Distributions from net realized gain | – | – | – |
Total distributions | (.162) | (.379) | (.255) |
Redemption fees added to paid in capitalB | – | – | – |
Net asset value, end of period | $9.27 | $8.87 | $9.45 |
Total ReturnC,D | 6.36% | (2.24)% | 2.67% |
Ratios to Average Net AssetsE,F | |||
Expenses before reductions | .88%G | .80% | .82%G |
Expenses net of fee waivers, if any | .71%G | .71% | .71%G |
Expenses net of all reductions | .71%G | .71% | .71%G |
Net investment income (loss) | 3.51%G | 4.08% | 4.86%G |
Supplemental Data | |||
Net assets, end of period (000 omitted) | $2,182 | $2,031 | $425 |
Portfolio turnover rateH | 65%G | 77% | 33% |
A For the period October 2, 2018 (commencement of sale of shares) to April 30, 2019.
B Calculated based on average shares outstanding during the period.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Fees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
G Annualized
H Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended October 31, 2020
1. Organization.
Fidelity Short Duration High Income Fund (the Fund) is a fund of Fidelity Summer Street Trust (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class M, Class C, Short Duration High Income, Class I and Class Z shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Class C shares will automatically convert to Class A shares after a holding period of ten years from the initial date of purchase, with certain exceptions.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date ranged from less than .005% to .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investment Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. Corporate bonds and bank loan obligations are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances. The Fund invests a significant portion of its assets in below investment grade securities. The value of these securities can be more volatile due to changes in the credit quality of the issuer and is sensitive to changes in economic, market and regulatory conditions.
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 equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of October 31, 2020 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. Dividend income is recorded on the ex-dividend date. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Debt obligations may be placed on non-accrual status and related interest income may be reduced by ceasing current accruals and writing off interest receivables when the collection of all or a portion of interest has become doubtful based on consistently applied procedures. A debt obligation is removed from non-accrual status when the issuer resumes interest payments or when collectability of interest is reasonably assured.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction.
Distributions are declared and recorded daily and paid monthly from net investment income. Distributions from realized gains, if any, are declared and recorded on the ex-dividend date. Income and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to market discount, defaulted bonds, capital loss carryforwards, partnerships and losses deferred due to wash sales.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
Gross unrealized appreciation | $1,278,370 |
Gross unrealized depreciation | (1,503,843) |
Net unrealized appreciation (depreciation) | $(225,473) |
Tax cost | $92,213,855 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of prior fiscal period end and is subject to adjustment.
No expiration | |
Short-term | $(3,531,628) |
Long-term | (4,869,856) |
Total no expiration | $(8,401,484) |
Restricted Securities (including Private Placements). The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
Loans and Other Direct Debt Instruments. Direct debt instruments are interests in amounts owed to lenders by corporate or other borrowers. These instruments may be in the form of loans, trade claims or other receivables and may include standby financing commitments such as revolving credit facilities that obligate a fund to supply additional cash to the borrower on demand. Loans may be acquired through assignment, participation, or may be made directly to a borrower. Such instruments are presented in the Bank Loan Obligations section in the Schedule of Investments. Certain funds may also invest in unfunded loan commitments, which are contractual obligations for future funding. Information regarding unfunded commitments is included at the end of the Schedule of Investments, if applicable.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, are noted in the table below.
Purchases ($) | Sales ($) | |
Fidelity Short Duration High Income Fund | 30,881,929 | 29,020,374 |
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company LLC (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the Fund's average net assets and an annualized group fee rate that averaged .10% during the period. The group fee rate is based upon the monthly average net assets of a group of registered investment companies with which the investment adviser has management contracts. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annualized management fee rate was .55% of the Fund's average net assets.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Company LLC (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
Distribution Fee | Service Fee | Total Fees | Retained by FDC | |
Class A | -% | .25% | $16,636 | $762 |
Class M | -% | .25% | 2,730 | 47 |
Class C | .75% | .25% | 18,261 | 1,928 |
$37,627 | $2,737 |
Sales Load. FDC may receive a front-end sales charge of up to 4.00% for selling Class A shares and Class M shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class M and Class C redemptions. The deferred sales charges are 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class M shares.
For the period, sales charge amounts retained by FDC were as follows:
Retained by FDC | |
Class A | $758 |
Class M | 162 |
Class C(a) | 468 |
$1,388 |
(a) When Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company LLC (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund, except for Class Z. FIIOC receives an asset-based fee of Class Z's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
Amount | % of Class-Level Average Net Assets(a) | |
Class A | $9,569 | .14 |
Class M | 1,762 | .16 |
Class C | 3,204 | .17 |
Short Duration High Income | 37,087 | .11 |
Class I | 3,701 | .17 |
Class Z | 570 | .05 |
$55,893 |
(a) Annualized
Accounting Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. For the period, the fees were equivalent to the following annualized rates:
% of Average Net Assets | |
Fidelity Short Duration High Income Fund | .04 |
Interfund Trades. Funds may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
6. Committed Line of Credit.
Certain Funds participate with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The participating funds have agreed to pay commitment fees on their pro-rata portion of the line of credit, which are reflected in Miscellaneous expenses on the Statement of Operations, and are as follows:
Amount | |
Fidelity Short Duration High Income Fund | $103 |
During the period, there were no borrowings on this line of credit.
7. Expense Reductions.
The investment adviser contractually agreed to reimburse expenses of each class to the extent annual operating expenses exceeded certain levels of class-level average net assets as noted in the table below. This reimbursement will remain in place through August 31, 2021. Some expenses, for example the compensation of the independent Trustees, and certain miscellaneous expenses such as proxy and shareholder meeting expenses, are excluded from this reimbursement.
The following classes were in reimbursement during the period:
Expense Limitations | Reimbursement | |
Class A | 1.05% | $11,214 |
Class M | 1.05% | 2,036 |
Class C | 1.80% | 3,443 |
Short Duration High Income | .80% | 45,967 |
Class I | .80% | 4,401 |
Class Z | .71% | 1,861 |
$68,922 |
In addition, through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses. During the period, custodian credits reduced the Fund's expenses by $1,030.
In addition, during the period the investment adviser or an affiliate reimbursed and/or waived a portion of fund-level operating expenses in the amount of $120.
8. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended October 31, 2020 | Year ended April 30, 2020 | |
Distributions to shareholders | ||
Class A | $211,448 | $556,252 |
Class M | 34,705 | 87,233 |
Class C | 44,343 | 131,011 |
Short Duration High Income | 1,148,577 | 3,441,833 |
Class I | 75,479 | 176,433 |
Class Z | 40,089 | 73,216 |
Total | $1,554,641 | $4,465,978 |
9. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
Shares | Shares | Dollars | Dollars | |
Six months ended October 31, 2020 | Year ended April 30, 2020 | Six months ended October 31, 2020 | Year ended April 30, 2020 | |
Class A | ||||
Shares sold | 161,790 | 738,163 | $1,487,865 | $6,904,779 |
Reinvestment of distributions | 22,278 | 57,544 | 205,674 | 535,421 |
Shares redeemed | (120,929) | (967,983) | (1,113,623) | (8,738,906) |
Net increase (decrease) | 63,139 | (172,276) | $579,916 | $(1,298,706) |
Class M | ||||
Shares sold | 30,779 | 84,494 | $285,119 | $785,458 |
Reinvestment of distributions | 3,676 | 9,140 | 33,937 | 85,002 |
Shares redeemed | (35,067) | (124,747) | (325,347) | (1,130,115) |
Net increase (decrease) | (612) | (31,113) | $(6,291) | $(259,655) |
Class C | ||||
Shares sold | 19,781 | 262,330 | $180,879 | $2,400,007 |
Reinvestment of distributions | 4,758 | 14,026 | 43,916 | 130,387 |
Shares redeemed | (117,055) | (304,136) | (1,068,351) | (2,603,723) |
Net increase (decrease) | (92,516) | (27,780) | $(843,556) | $(73,329) |
Short Duration High Income | ||||
Shares sold | 2,096,030 | 3,574,469 | $19,363,687 | $33,404,598 |
Reinvestment of distributions | 103,796 | 295,232 | 958,575 | 2,749,018 |
Shares redeemed | (2,187,782) | (6,048,897) | (20,143,474) | (54,825,149) |
Net increase (decrease) | 12,044 | (2,179,196) | $178,788 | $(18,671,533) |
Class I | ||||
Shares sold | 163,137 | 281,610 | $1,502,245 | $2,620,824 |
Reinvestment of distributions | 7,373 | 17,079 | 68,112 | 158,857 |
Shares redeemed | (95,000) | (283,117) | (867,489) | (2,545,724) |
Net increase (decrease) | 75,510 | 15,572 | $702,868 | $233,957 |
Class Z | ||||
Shares sold | 92,846 | 325,736 | $855,409 | $3,038,787 |
Reinvestment of distributions | 4,282 | 7,685 | 39,543 | 71,252 |
Shares redeemed | (90,708) | (149,394) | (841,237) | (1,340,633) |
Net increase (decrease) | 6,420 | 184,027 | $53,715 | $1,769,406 |
10. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
11. Coronavirus (COVID-19) Pandemic.
An outbreak of COVID-19 first detected in China during December 2019 has since spread globally and was declared a pandemic by the World Health Organization during March 2020. Developments that disrupt global economies and financial markets, such as the COVID-19 pandemic, may magnify factors that affect the Fund's performance.
Shareholder Expense Example
As a shareholder, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or redemption proceeds, as applicable and (2) ongoing costs, which generally include management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in a fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (May 1, 2020 to October 31, 2020).
Actual Expenses
The first line of the accompanying table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class/Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. If any fund is a shareholder of any underlying mutual funds or exchange-traded funds (ETFs) (the Underlying Funds), such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses incurred presented in the table. These fees and expenses are not included in the annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. If any fund is a shareholder of any Underlying Funds, such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses as presented in the table. These fees and expenses are not included in the annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Annualized Expense Ratio-A | Beginning Account Value May 1, 2020 | Ending Account Value October 31, 2020 | Expenses Paid During Period-B May 1, 2020 to October 31, 2020 | |
Fidelity Short Duration High Income Fund | ||||
Class A | 1.05% | |||
Actual | $1,000.00 | $1,060.60 | $5.45 | |
Hypothetical-C | $1,000.00 | $1,019.91 | $5.35 | |
Class M | 1.05% | |||
Actual | $1,000.00 | $1,061.80 | $5.46 | |
Hypothetical-C | $1,000.00 | $1,019.91 | $5.35 | |
Class C | 1.80% | |||
Actual | $1,000.00 | $1,057.80 | $9.34 | |
Hypothetical-C | $1,000.00 | $1,016.13 | $9.15 | |
Short Duration High Income | .80% | |||
Actual | $1,000.00 | $1,063.10 | $4.16 | |
Hypothetical-C | $1,000.00 | $1,021.17 | $4.08 | |
Class I | .80% | |||
Actual | $1,000.00 | $1,063.10 | $4.16 | |
Hypothetical-C | $1,000.00 | $1,021.17 | $4.08 | |
Class Z | .71% | |||
Actual | $1,000.00 | $1,063.60 | $3.69 | |
Hypothetical-C | $1,000.00 | $1,021.63 | $3.62 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/ 365 (to reflect the one-half year period). The fees and expenses of any Underlying Funds are not included in each annualized expense ratio.
C 5% return per year before expenses
Proxy Voting Results
A special meeting of shareholders was held on June 9, 2020. The results of votes taken among shareholders on the proposals before them are reported below. Each vote reported represents one dollar of net asset value held on the record date for the meeting.
PROPOSAL 1
To elect a Board of Trustees.
# of Votes | % of Votes | |
Dennis J. Dirks | ||
Affirmative | 16,477,844,543.945 | 94.954 |
Withheld | 875,616,757.045 | 5.046 |
TOTAL | 17,353,461,300.990 | 100.000 |
Donald F. Donahue | ||
Affirmative | 16,475,304,981.550 | 94.940 |
Withheld | 878,156,319.440 | 5.060 |
TOTAL | 17,353,461,300.990 | 100.000 |
Bettina Doulton | ||
Affirmative | 16,570,440,321.103 | 95.488 |
Withheld | 783,020,979.887 | 4.512 |
TOTAL | 17,353,461,300.990 | 100.000 |
Vicki L. Fuller | ||
Affirmative | 16,590,910,486.905 | 95.606 |
Withheld | 762,550,814.085 | 4.394 |
TOTAL | 17,353,461,300.990 | 100.00 |
Patricia L. Kampling | ||
Affirmative | 16,469,872,791.586 | 94.908 |
Withheld | 883,588,509.404 | 5.092 |
TOTAL | 17,353,461,300.990 | 100.000 |
Alan J. Lacy | ||
Affirmative | 16,344,655,183.636 | 94.187 |
Withheld | 1,008,806,117.354 | 5.813 |
TOTAL | 17,353,461,300.990 | 100.000 |
Ned C. Lautenbach | ||
Affirmative | 15,532,663,704.227 | 89.508 |
Withheld | 1,820,797,596.763 | 10.492 |
TOTAL | 17,353,461,300.990 | 100.000 |
Robert A. Lawrence | ||
Affirmative | 16,389,821,876.677 | 94.447 |
Withheld | 963,639,424.313 | 5.553 |
TOTAL | 17,353,461,300.990 | 100.000 |
Joseph Mauriello | ||
Affirmative | 16,363,427,626.626 | 94.295 |
Withheld | 990,033,674.365 | 5.705 |
TOTAL | 17,353,461,300.990 | 100.000 |
Cornelia M. Small | ||
Affirmative | 16,405,902,888.605 | 94.540 |
Withheld | 947,558,412.386 | 5.460 |
TOTAL | 17,353,461,300.990 | 100.000 |
Garnett A. Smith | ||
Affirmative | 16,371,912,270.945 | 94.344 |
Withheld | 981,549,030.045 | 5.656 |
TOTAL | 17,353,461,300.990 | 100.000 |
David M. Thomas | ||
Affirmative | 16,365,966,852.048 | 94.310 |
Withheld | 987,494,448.942 | 5.690 |
TOTAL | 17,353,461,300.990 | 100.000 |
Susan Tomasky | ||
Affirmative | 16,483,922,579.861 | 94.989 |
Withheld | 869,538,721.129 | 5.011 |
TOTAL | 17,353,461,300.990 | 100.000 |
Michael E. Wiley | ||
Affirmative | 16,379,083,262.890 | 94.385 |
Withheld | 974,378,038.101 | 5.615 |
TOTAL | 17,353,461,300.990 | 100.000 |
PROPOSAL 2
To convert a fundamental investment policy to a non-fundamental investment policy.
# of Votes | % of Votes | |
Affirmative | 30,615,294.449 | 60.714 |
Against | 4,052,405.580 | 8.036 |
Abstain | 5,129,703.683 | 10.173 |
Broker Non-Vote | 10,628,203.010 | 21.077 |
TOTAL | 50,425,606.722 | 100.000 |
Proposal 1 reflects trust wide proposal and voting results. | ||
Proposal 2 was not approved by shareholders. |
SDH-SANN-1220
1.969437.106
Fidelity® Women's Leadership Fund
Semi-Annual Report
October 31, 2020
Includes Fidelity and Fidelity Advisor share classes
See the inside front cover for important information about access to your fund’s shareholder reports.
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of a fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a financial advisor, broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
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Contents
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You may also call 1-800-544-8544 if you’re an individual investing directly with Fidelity, call 1-800-835-5092 if you’re a plan sponsor or participant with Fidelity as your recordkeeper or call 1-877-208-0098 on institutional accounts or if you’re an advisor or invest through one to request a free copy of the proxy voting guidelines.
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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.
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For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
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Note to Shareholders:
Early in 2020, the outbreak and spread of a new coronavirus emerged as a public health emergency that had a major influence on financial markets, primarily based on its impact on the global economy and the outlook for corporate earnings. The virus causes a respiratory disease known as COVID-19. On March 11, the World Health Organization declared the COVID-19 outbreak a pandemic, citing sustained risk of further global spread.
In the weeks following, as the crisis worsened, we witnessed an escalating human tragedy with wide-scale social and economic consequences from coronavirus-containment measures. The outbreak of COVID-19 prompted a number of measures to limit the spread, including travel and border restrictions, quarantines, and restrictions on large gatherings. In turn, these resulted in lower consumer activity, diminished demand for a wide range of products and services, disruption in manufacturing and supply chains, and – given the wide variability in outcomes regarding the outbreak – significant market uncertainty and volatility. Amid the turmoil, global governments and central banks took unprecedented action to help support consumers, businesses, and the broader economies, and to limit disruption to financial systems.
The situation continues to unfold, and the extent and duration of its impact on financial markets and the economy remain highly uncertain. Extreme events such as the coronavirus crisis are “exogenous shocks” that can have significant adverse effects on mutual funds and their investments. Although multiple asset classes may be affected by market disruption, the duration and impact may not be the same for all types of assets.
Fidelity is committed to helping you stay informed amid news about COVID-19 and during increased market volatility, and we’re taking extra steps to be responsive to customer needs. We encourage you to visit our websites, where we offer ongoing updates, commentary, and analysis on the markets and our funds.
Investment Summary (Unaudited)
Top Five Stocks as of October 31, 2020
% of fund's net assets | |
Microsoft Corp. | 3.4 |
Salesforce.com, Inc. | 2.0 |
Accenture PLC Class A | 1.8 |
Adobe, Inc. | 1.8 |
Hologic, Inc. | 1.6 |
10.6 |
Top Five Market Sectors as of October 31, 2020
% of fund's net assets | |
Information Technology | 28.0 |
Consumer Discretionary | 14.7 |
Health Care | 12.9 |
Financials | 11.5 |
Industrials | 10.0 |
Asset Allocation (% of fund's net assets)
As of October 31, 2020* | ||
Stocks | 96.1% | |
Short-Term Investments and Net Other Assets (Liabilities) | 3.9% |
* Foreign investments – 12.4%
Schedule of Investments October 31, 2020 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 96.1% | |||
Shares | Value | ||
COMMUNICATION SERVICES - 6.5% | |||
Entertainment - 3.4% | |||
Netflix, Inc. (a) | 1,422 | $676,502 | |
The Walt Disney Co. | 6,634 | 804,373 | |
Zynga, Inc. (a) | 32,931 | 296,050 | |
1,776,925 | |||
Interactive Media & Services - 1.7% | |||
Facebook, Inc. Class A (a) | 1,421 | 373,879 | |
Match Group, Inc. (a) | 1,417 | 165,477 | |
Snap, Inc. Class A (a) | 8,666 | 341,354 | |
880,710 | |||
Media - 1.4% | |||
Cable One, Inc. | 129 | 223,410 | |
Interpublic Group of Companies, Inc. | 16,948 | 306,589 | |
The New York Times Co. Class A (b) | 5,921 | 234,827 | |
764,826 | |||
TOTAL COMMUNICATION SERVICES | 3,422,461 | ||
CONSUMER DISCRETIONARY - 14.7% | |||
Automobiles - 0.3% | |||
General Motors Co. | 5,089 | 175,723 | |
Diversified Consumer Services - 1.0% | |||
Bright Horizons Family Solutions, Inc. (a) | 3,282 | 518,720 | |
Hotels, Restaurants & Leisure - 2.2% | |||
Dunkin' Brands Group, Inc. | 3,181 | 317,178 | |
Marriott International, Inc. Class A | 3,171 | 294,522 | |
Starbucks Corp. | 5,899 | 512,977 | |
1,124,677 | |||
Household Durables - 0.8% | |||
Taylor Morrison Home Corp. (a) | 20,217 | 436,687 | |
Internet & Direct Marketing Retail - 1.9% | |||
Amazon.com, Inc. (a) | 200 | 607,230 | |
Etsy, Inc. (a) | 2,265 | 275,401 | |
Trainline PLC (a)(c) | 33,276 | 118,550 | |
1,001,181 | |||
Specialty Retail - 7.5% | |||
Bed Bath & Beyond, Inc. (b) | 17,386 | 344,243 | |
Best Buy Co., Inc. | 5,163 | 575,933 | |
Burlington Stores, Inc. (a) | 979 | 189,515 | |
Gap, Inc. | 14,443 | 280,916 | |
Lowe's Companies, Inc. | 4,457 | 704,652 | |
Ross Stores, Inc. | 1,471 | 125,285 | |
Signet Jewelers Ltd. | 5,618 | 125,169 | |
The Home Depot, Inc. | 2,016 | 537,687 | |
Ulta Beauty, Inc. (a) | 2,100 | 434,217 | |
Williams-Sonoma, Inc. | 6,642 | 605,817 | |
3,923,434 | |||
Textiles, Apparel & Luxury Goods - 1.0% | |||
Aritzia LP (a) | 15,162 | 228,972 | |
LVMH Moet Hennessy Louis Vuitton SE | 574 | 269,061 | |
498,033 | |||
TOTAL CONSUMER DISCRETIONARY | 7,678,455 | ||
CONSUMER STAPLES - 4.8% | |||
Beverages - 0.6% | |||
The Coca-Cola Co. | 6,004 | 288,552 | |
Food & Staples Retailing - 0.3% | |||
Loblaw Companies Ltd. | 3,516 | 175,021 | |
Food Products - 1.6% | |||
General Mills, Inc. | 6,902 | 408,046 | |
Laird Superfood, Inc. | 2,236 | 102,856 | |
The Hershey Co. | 2,370 | 325,780 | |
836,682 | |||
Household Products - 0.4% | |||
Clorox Co. | 1,009 | 209,115 | |
Personal Products - 1.9% | |||
Estee Lauder Companies, Inc. Class A | 2,042 | 448,546 | |
Shiseido Co. Ltd. | 3,586 | 221,999 | |
Unilever NV | 5,600 | 316,645 | |
987,190 | |||
TOTAL CONSUMER STAPLES | 2,496,560 | ||
ENERGY - 0.3% | |||
Oil, Gas & Consumable Fuels - 0.3% | |||
Equinor ASA | 13,275 | 168,603 | |
FINANCIALS - 11.5% | |||
Banks - 3.0% | |||
Bank of America Corp. | 22,216 | 526,519 | |
Citigroup, Inc. | 11,460 | 474,673 | |
First Horizon National Corp. | 23,641 | 246,103 | |
First United Corp. | 7,033 | 83,833 | |
JPMorgan Chase & Co. | 2,559 | 250,884 | |
1,582,012 | |||
Capital Markets - 3.5% | |||
Macquarie Group Ltd. | 3,062 | 273,008 | |
Morningstar, Inc. | 3,350 | 637,773 | |
MSCI, Inc. | 624 | 218,300 | |
The NASDAQ OMX Group, Inc. | 5,971 | 722,431 | |
1,851,512 | |||
Consumer Finance - 1.5% | |||
American Express Co. | 3,691 | 336,767 | |
Synchrony Financial | 17,159 | 429,318 | |
766,085 | |||
Insurance - 2.7% | |||
Hartford Financial Services Group, Inc. | 7,094 | 273,261 | |
Primerica, Inc. | 1,822 | 200,857 | |
Principal Financial Group, Inc. | 5,836 | 228,888 | |
Progressive Corp. | 7,679 | 705,700 | |
1,408,706 | |||
Thrifts & Mortgage Finance - 0.8% | |||
NMI Holdings, Inc. (a) | 20,134 | 432,680 | |
TOTAL FINANCIALS | 6,040,995 | ||
HEALTH CARE - 12.9% | |||
Biotechnology - 1.5% | |||
Veracyte, Inc. (a) | 6,557 | 227,266 | |
Vertex Pharmaceuticals, Inc. (a) | 1,410 | 293,788 | |
Zai Lab Ltd. ADR (a) | 2,885 | 236,714 | |
757,768 | |||
Health Care Equipment & Supplies - 3.0% | |||
Hologic, Inc. (a) | 12,327 | 848,344 | |
Insulet Corp. (a) | 1,131 | 251,365 | |
Outset Medical, Inc. | 1,000 | 46,470 | |
Stryker Corp. | 2,094 | 423,009 | |
1,569,188 | |||
Health Care Providers & Services - 4.5% | |||
1Life Healthcare, Inc. (a) | 11,484 | 323,964 | |
AMN Healthcare Services, Inc. (a) | 4,464 | 291,410 | |
Anthem, Inc. | 2,987 | 814,854 | |
Cigna Corp. | 3,112 | 519,611 | |
CVS Health Corp. | 6,873 | 385,507 | |
2,335,346 | |||
Health Care Technology - 0.1% | |||
Phreesia, Inc. (a) | 1,800 | 66,546 | |
Pharmaceuticals - 3.8% | |||
AstraZeneca PLC sponsored ADR | 14,462 | 725,414 | |
GlaxoSmithKline PLC | 35,350 | 590,292 | |
UCB SA | 2,443 | 240,992 | |
Zoetis, Inc. Class A | 2,876 | 455,990 | |
2,012,688 | |||
TOTAL HEALTH CARE | 6,741,536 | ||
INDUSTRIALS - 10.0% | |||
Aerospace & Defense - 1.7% | |||
Lockheed Martin Corp. | 1,365 | 477,927 | |
Northrop Grumman Corp. | 1,432 | 415,022 | |
892,949 | |||
Air Freight & Logistics - 0.5% | |||
United Parcel Service, Inc. Class B | 1,540 | 241,949 | |
Airlines - 0.4% | |||
Southwest Airlines Co. | 5,578 | 220,498 | |
Commercial Services & Supplies - 1.8% | |||
Stericycle, Inc. (a) | 2,620 | 163,226 | |
Tomra Systems ASA | 6,742 | 271,681 | |
Waste Management, Inc. | 4,858 | 524,227 | |
959,134 | |||
Electrical Equipment - 2.8% | |||
AMETEK, Inc. | 4,665 | 458,103 | |
nVent Electric PLC | 11,156 | 201,366 | |
Sunrun, Inc. (a) | 7,999 | 416,108 | |
Vestas Wind Systems A/S | 2,237 | 383,789 | |
1,459,366 | |||
Machinery - 2.4% | |||
Federal Signal Corp. | 19,243 | 551,889 | |
Ingersoll Rand, Inc. (a) | 8,901 | 311,001 | |
Otis Worldwide Corp. | 6,003 | 367,864 | |
1,230,754 | |||
Professional Services - 0.4% | |||
Verisk Analytics, Inc. | 1,231 | 219,081 | |
TOTAL INDUSTRIALS | 5,223,731 | ||
INFORMATION TECHNOLOGY - 28.0% | |||
Communications Equipment - 0.8% | |||
Arista Networks, Inc. (a) | 2,022 | 422,396 | |
Electronic Equipment & Components - 1.5% | |||
CDW Corp. | 4,053 | 496,898 | |
Insight Enterprises, Inc. (a) | 5,017 | 267,657 | |
764,555 | |||
IT Services - 10.4% | |||
Accenture PLC Class A | 4,464 | 968,286 | |
Automatic Data Processing, Inc. | 1,833 | 289,541 | |
Capgemini SA | 4,925 | 568,657 | |
Genpact Ltd. | 7,496 | 257,638 | |
Leidos Holdings, Inc. | 5,156 | 427,948 | |
MasterCard, Inc. Class A | 1,640 | 473,370 | |
PayPal Holdings, Inc. (a) | 3,578 | 665,973 | |
Science Applications International Corp. | 4,808 | 367,187 | |
Twilio, Inc. Class A (a) | 1,718 | 479,270 | |
Visa, Inc. Class A | 2,586 | 469,902 | |
WEX, Inc. (a) | 4,048 | 512,274 | |
5,480,046 | |||
Semiconductors & Semiconductor Equipment - 2.8% | |||
Advanced Micro Devices, Inc. (a) | 4,986 | 375,396 | |
NVIDIA Corp. | 1,507 | 755,550 | |
Universal Display Corp. | 1,620 | 321,262 | |
1,452,208 | |||
Software - 11.1% | |||
Absolute Software Corp. | 1,400 | 15,792 | |
Adobe, Inc. (a) | 2,109 | 942,934 | |
HubSpot, Inc. (a) | 1,866 | 541,271 | |
Intuit, Inc. | 1,979 | 622,752 | |
Microsoft Corp. | 8,763 | 1,774,243 | |
Pagerduty, Inc. (a) | 9,885 | 267,884 | |
Rapid7, Inc. (a) | 4,947 | 306,368 | |
Salesforce.com, Inc. (a) | 4,531 | 1,052,415 | |
Talend SA ADR (a) | 7,966 | 299,840 | |
5,823,499 | |||
Technology Hardware, Storage & Peripherals - 1.4% | |||
Apple, Inc. | 6,589 | 717,279 | |
TOTAL INFORMATION TECHNOLOGY | 14,659,983 | ||
MATERIALS - 2.2% | |||
Chemicals - 0.4% | |||
Valvoline, Inc. | 10,140 | 199,454 | |
Containers & Packaging - 0.5% | |||
Ball Corp. | 2,877 | 256,053 | |
Metals & Mining - 1.3% | |||
Commercial Metals Co. | 7,218 | 149,052 | |
Newmont Corp. | 8,668 | 544,697 | |
693,749 | |||
TOTAL MATERIALS | 1,149,256 | ||
REAL ESTATE - 2.0% | |||
Equity Real Estate Investment Trusts (REITs) - 2.0% | |||
Equity Lifestyle Properties, Inc. | 7,499 | 443,866 | |
Store Capital Corp. | 14,726 | 378,458 | |
Ventas, Inc. | 6,177 | 243,806 | |
1,066,130 | |||
UTILITIES - 3.2% | |||
Electric Utilities - 2.3% | |||
Duke Energy Corp. | 2,439 | 224,656 | |
NextEra Energy, Inc. | 4,232 | 309,825 | |
ORSTED A/S (c) | 4,293 | 681,359 | |
1,215,840 | |||
Multi-Utilities - 0.2% | |||
CMS Energy Corp. | 2,067 | 130,903 | |
Water Utilities - 0.7% | |||
American Water Works Co., Inc. | 2,318 | 348,882 | |
TOTAL UTILITIES | 1,695,625 | ||
TOTAL COMMON STOCKS | |||
(Cost $45,771,493) | 50,343,335 | ||
Money Market Funds - 6.2% | |||
Fidelity Cash Central Fund 0.10% (d) | 2,678,890 | 2,679,426 | |
Fidelity Securities Lending Cash Central Fund 0.11% (d)(e) | 594,641 | 594,700 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $3,274,126) | 3,274,126 | ||
TOTAL INVESTMENT IN SECURITIES - 102.3% | |||
(Cost $49,045,619) | 53,617,461 | ||
NET OTHER ASSETS (LIABILITIES) - (2.3)% | (1,221,070) | ||
NET ASSETS - 100% | $52,396,391 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $799,909 or 1.5% of net assets.
(d) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
(e) Investment made with cash collateral received from securities on loan.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
Fidelity Cash Central Fund | $893 |
Fidelity Securities Lending Cash Central Fund | 3,830 |
Total | $4,723 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable. Amount for Fidelity Securities Lending Cash Central Fund represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities.
The value, beginning of period, for the Fidelity Cash Central Fund was $813,312. Net realized gain (loss) and change in net unrealized appreciation (depreciation) on Fidelity Cash Central Fund is presented in the Statement of Operations, if applicable. Purchases and sales of the Fidelity Cash Central Fund were $15,189,825 and $13,323,606, respectively, during the period.
Investment Valuation
The following is a summary of the inputs used, as of October 31, 2020, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Equities: | ||||
Communication Services | $3,422,461 | $3,422,461 | $-- | $-- |
Consumer Discretionary | 7,678,455 | 7,409,394 | 269,061 | -- |
Consumer Staples | 2,496,560 | 2,274,561 | 221,999 | -- |
Energy | 168,603 | 168,603 | -- | -- |
Financials | 6,040,995 | 5,767,987 | 273,008 | -- |
Health Care | 6,741,536 | 6,151,244 | 590,292 | -- |
Industrials | 5,223,731 | 4,839,942 | 383,789 | -- |
Information Technology | 14,659,983 | 14,659,983 | -- | -- |
Materials | 1,149,256 | 1,149,256 | -- | -- |
Real Estate | 1,066,130 | 1,066,130 | -- | -- |
Utilities | 1,695,625 | 1,695,625 | -- | -- |
Money Market Funds | 3,274,126 | 3,274,126 | -- | -- |
Total Investments in Securities: | $53,617,461 | $51,879,312 | $1,738,149 | $-- |
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
United States of America | 87.6% |
Ireland | 2.2% |
France | 2.2% |
Denmark | 2.0% |
United Kingdom | 1.3% |
Others (Individually Less Than 1%) | 4.7% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
October 31, 2020 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $566,634) — See accompanying schedule: Unaffiliated issuers (cost $45,771,493) | $50,343,335 | |
Fidelity Central Funds (cost $3,274,126) | 3,274,126 | |
Total Investment in Securities (cost $49,045,619) | $53,617,461 | |
Receivable for investments sold | 518,122 | |
Receivable for fund shares sold | 135,897 | |
Dividends receivable | 39,973 | |
Distributions receivable from Fidelity Central Funds | 374 | |
Prepaid expenses | 56 | |
Other receivables | 551 | |
Total assets | 54,312,434 | |
Liabilities | ||
Payable for investments purchased | $1,223,809 | |
Payable for fund shares redeemed | 25,523 | |
Accrued management fee | 26,094 | |
Distribution and service plan fees payable | 1,116 | |
Other affiliated payables | 11,654 | |
Other payables and accrued expenses | 33,147 | |
Collateral on securities loaned | 594,700 | |
Total liabilities | 1,916,043 | |
Net Assets | $52,396,391 | |
Net Assets consist of: | ||
Paid in capital | $49,121,024 | |
Total accumulated earnings (loss) | 3,275,367 | |
Net Assets | $52,396,391 | |
Net Asset Value and Maximum Offering Price | ||
Class A: | ||
Net Asset Value and redemption price per share ($1,389,879 ÷ 120,585 shares)(a) | $11.53 | |
Maximum offering price per share (100/94.25 of $11.53) | $12.23 | |
Class M: | ||
Net Asset Value and redemption price per share ($604,196 ÷ 52,545 shares)(a) | $11.50 | |
Maximum offering price per share (100/96.50 of $11.50) | $11.92 | |
Class C: | ||
Net Asset Value and offering price per share ($690,714 ÷ 60,458 shares)(a) | $11.42 | |
Fidelity Women's Leadership Fund: | ||
Net Asset Value, offering price and redemption price per share ($43,894,222 ÷ 3,800,683 shares) | $11.55 | |
Class I: | ||
Net Asset Value, offering price and redemption price per share ($1,092,980 ÷ 94,643 shares) | $11.55 | |
Class Z: | ||
Net Asset Value, offering price and redemption price per share ($4,724,400 ÷ 408,175 shares) | $11.57 |
(a) Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended October 31, 2020 (Unaudited) | ||
Investment Income | ||
Dividends | $252,675 | |
Income from Fidelity Central Funds (including $3,830 from security lending) | 4,723 | |
Total income | 257,398 | |
Expenses | ||
Management fee | ||
Basic fee | $105,876 | |
Performance adjustment | (198) | |
Transfer agent fees | 49,659 | |
Distribution and service plan fees | 5,587 | |
Accounting fees | 7,769 | |
Custodian fees and expenses | 7,928 | |
Independent trustees' fees and expenses | 92 | |
Registration fees | 29,155 | |
Audit | 22,329 | |
Legal | 16 | |
Miscellaneous | 131 | |
Total expenses before reductions | 228,344 | |
Expense reductions | (26,638) | |
Total expenses after reductions | 201,706 | |
Net investment income (loss) | 55,692 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 92,452 | |
Fidelity Central Funds | (53) | |
Foreign currency transactions | 761 | |
Total net realized gain (loss) | 93,160 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 4,819,398 | |
Fidelity Central Funds | (52) | |
Assets and liabilities in foreign currencies | (7) | |
Total change in net unrealized appreciation (depreciation) | 4,819,339 | |
Net gain (loss) | 4,912,499 | |
Net increase (decrease) in net assets resulting from operations | $4,968,191 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended October 31, 2020 (Unaudited) | Year ended April 30, 2020 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $55,692 | $106,560 |
Net realized gain (loss) | 93,160 | (1,438,851) |
Change in net unrealized appreciation (depreciation) | 4,819,339 | (247,516) |
Net increase (decrease) in net assets resulting from operations | 4,968,191 | (1,579,807) |
Distributions to shareholders | (43,247) | (61,425) |
Share transactions - net increase (decrease) | 20,441,912 | 28,670,767 |
Total increase (decrease) in net assets | 25,366,856 | 27,029,535 |
Net Assets | ||
Beginning of period | 27,029,535 | – |
End of period | $52,396,391 | $27,029,535 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Women's Leadership Fund Class A
Six months ended (Unaudited) October 31, | Years endedApril 30, | |
2020 | 2020 A | |
Selected Per–Share Data | ||
Net asset value, beginning of period | $9.80 | $10.00 |
Income from Investment Operations | ||
Net investment income (loss)B | –C | .04 |
Net realized and unrealized gain (loss) | 1.74 | (.22) |
Total from investment operations | 1.74 | (.18) |
Distributions from net investment income | (.01) | (.02) |
Total distributions | (.01) | (.02) |
Net asset value, end of period | $11.53 | $9.80 |
Total ReturnD,E,F | 17.74% | (1.84)% |
Ratios to Average Net AssetsG,H | ||
Expenses before reductions | 1.31%I | 2.50% |
Expenses net of fee waivers, if any | 1.25%I | 1.25% |
Expenses net of all reductions | 1.24%I | 1.25% |
Net investment income (loss) | .05%I | .37% |
Supplemental Data | ||
Net assets, end of period (000 omitted) | $1,390 | $769 |
Portfolio turnover rateJ | 29%I | 52% |
A For the period May 1, 2019 (commencement of operations) to April 30, 2020.
B Calculated based on average shares outstanding during the period.
C Amount represents less than $.005 per share.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the sales charges.
G Fees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
I Annualized
J Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
See accompanying notes which are an integral part of the financial statements.
Fidelity Women's Leadership Fund Class M
Six months ended (Unaudited) October 31, | Years endedApril 30, | |
2020 | 2020 A | |
Selected Per–Share Data | ||
Net asset value, beginning of period | $9.78 | $10.00 |
Income from Investment Operations | ||
Net investment income (loss)B | (.01) | .01 |
Net realized and unrealized gain (loss) | 1.73 | (.22) |
Total from investment operations | 1.72 | (.21) |
Distributions from net investment income | –C | (.01) |
Total distributions | –C | (.01) |
Net asset value, end of period | $11.50 | $9.78 |
Total ReturnD,E,F | 17.61% | (2.12)% |
Ratios to Average Net AssetsG,H | ||
Expenses before reductions | 1.57%I | 2.86% |
Expenses net of fee waivers, if any | 1.50%I | 1.50% |
Expenses net of all reductions | 1.49%I | 1.50% |
Net investment income (loss) | (.21)%I | .12% |
Supplemental Data | ||
Net assets, end of period (000 omitted) | $604 | $443 |
Portfolio turnover rateJ | 29%I | 52% |
A For the period May 1, 2019 (commencement of operations) to April 30, 2020.
B Calculated based on average shares outstanding during the period.
C Amount represents less than $.005 per share.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Total returns do not include the effect of the sales charges.
G Fees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
I Annualized
J Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
See accompanying notes which are an integral part of the financial statements.
Fidelity Women's Leadership Fund Class C
Six months ended (Unaudited) October 31, | Years endedApril 30, | |
2020 | 2020 A | |
Selected Per–Share Data | ||
Net asset value, beginning of period | $9.74 | $10.00 |
Income from Investment Operations | ||
Net investment income (loss)B | (.04) | (.04) |
Net realized and unrealized gain (loss) | 1.72 | (.22) |
Total from investment operations | 1.68 | (.26) |
Net asset value, end of period | $11.42 | $9.74 |
Total ReturnC,D,E | 17.25% | (2.60)% |
Ratios to Average Net AssetsF,G | ||
Expenses before reductions | 2.04%H | 3.36% |
Expenses net of fee waivers, if any | 2.00%H | 2.00% |
Expenses net of all reductions | 1.99%H | 2.00% |
Net investment income (loss) | (.70)%H | (.38)% |
Supplemental Data | ||
Net assets, end of period (000 omitted) | $691 | $468 |
Portfolio turnover rateI | 29%H | 52% |
A For the period May 1, 2019 (commencement of operations) to April 30, 2020.
B Calculated based on average shares outstanding during the period.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Total returns do not include the effect of the contingent deferred sales charge.
F Fees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
H Annualized
I Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
See accompanying notes which are an integral part of the financial statements.
Fidelity Women's Leadership Fund
Six months ended (Unaudited) October 31, | Years endedApril 30, | |
2020 | 2020 A | |
Selected Per–Share Data | ||
Net asset value, beginning of period | $9.81 | $10.00 |
Income from Investment Operations | ||
Net investment income (loss)B | .02 | .06 |
Net realized and unrealized gain (loss) | 1.74 | (.22) |
Total from investment operations | 1.76 | (.16) |
Distributions from net investment income | (.02) | (.03) |
Total distributions | (.02) | (.03) |
Net asset value, end of period | $11.55 | $9.81 |
Total ReturnC,D | 17.91% | (1.63)% |
Ratios to Average Net AssetsE,F | ||
Expenses before reductions | 1.14%G | 2.19% |
Expenses net of fee waivers, if any | 1.00%G | 1.00% |
Expenses net of all reductions | .99%G | 1.00% |
Net investment income (loss) | .29%G | .62% |
Supplemental Data | ||
Net assets, end of period (000 omitted) | $43,894 | $22,272 |
Portfolio turnover rateH | 29%G | 52% |
A For the period May 1, 2019 (commencement of operations) to April 30, 2020.
B Calculated based on average shares outstanding during the period.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Fees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
G Annualized
H Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
See accompanying notes which are an integral part of the financial statements.
Fidelity Women's Leadership Fund Class I
Six months ended (Unaudited) October 31, | Years endedApril 30, | |
2020 | 2020 A | |
Selected Per–Share Data | ||
Net asset value, beginning of period | $9.81 | $10.00 |
Income from Investment Operations | ||
Net investment income (loss)B | .02 | .06 |
Net realized and unrealized gain (loss) | 1.74 | (.22) |
Total from investment operations | 1.76 | (.16) |
Distributions from net investment income | (.02) | (.03) |
Total distributions | (.02) | (.03) |
Net asset value, end of period | $11.55 | $9.81 |
Total ReturnC,D | 17.91% | (1.63)% |
Ratios to Average Net AssetsE,F | ||
Expenses before reductions | 1.04%G | 2.22% |
Expenses net of fee waivers, if any | 1.00%G | 1.00% |
Expenses net of all reductions | .99%G | 1.00% |
Net investment income (loss) | .30%G | .62% |
Supplemental Data | ||
Net assets, end of period (000 omitted) | $1,093 | $702 |
Portfolio turnover rateH | 29%G | 52% |
A For the period May 1, 2019 (commencement of operations) to April 30, 2020.
B Calculated based on average shares outstanding during the period.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Fees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
G Annualized
H Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
See accompanying notes which are an integral part of the financial statements.
Fidelity Women's Leadership Fund Class Z
Six months ended (Unaudited) October 31, | Years endedApril 30, | |
2020 | 2020 A | |
Selected Per–Share Data | ||
Net asset value, beginning of period | $9.83 | $10.00 |
Income from Investment Operations | ||
Net investment income (loss)B | .03 | .08 |
Net realized and unrealized gain (loss) | 1.73 | (.22) |
Total from investment operations | 1.76 | (.14) |
Distributions from net investment income | (.02) | (.03) |
Total distributions | (.02) | (.03) |
Net asset value, end of period | $11.57 | $9.83 |
Total ReturnC,D | 17.87% | (1.43)% |
Ratios to Average Net AssetsE,F | ||
Expenses before reductions | .92%G | 1.88% |
Expenses net of fee waivers, if any | .85%G | .85% |
Expenses net of all reductions | .84%G | .85% |
Net investment income (loss) | .44%G | .76% |
Supplemental Data | ||
Net assets, end of period (000 omitted) | $4,724 | $2,376 |
Portfolio turnover rateH | 29%G | 52% |
A For the period May 1, 2019 (commencement of operations) to April 30, 2020.
B Calculated based on average shares outstanding during the period.
C Total returns for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Fees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
G Annualized
H Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended October 31, 2020
1. Organization.
Fidelity Women's Leadership Fund (the Fund) is a fund of Fidelity Summer Street Trust (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class M, Class C, Fidelity Women's Leadership Fund, Class I and Class Z shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Class C shares will automatically convert to Class A shares after a holding period of ten years from the initial date of purchase, with certain exceptions.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date ranged from less than .005% to .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investment Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of October 31, 2020 is included at the end of the Fund's Schedule of Investments.
Foreign Currency. Certain Funds may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received, and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, capital loss carryforwards and losses deferred due to wash sales.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
Gross unrealized appreciation | $6,933,383 |
Gross unrealized depreciation | (2,461,273) |
Net unrealized appreciation (depreciation) | $4,472,110 |
Tax cost | $49,145,351 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of prior fiscal period end and is subject to adjustment.
No expiration | |
Short-term | $(1,293,766) |
Restricted Securities (including Private Placements). The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, are noted in the table below.
Purchases ($) | Sales ($) | |
Fidelity Women's Leadership Fund | 24,772,395 | 5,549,692 |
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company LLC (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .23% during the period. The group fee rate is based upon the monthly average net assets of a group of registered investment companies with which the investment adviser has management contracts. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of +/- .10% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of Fidelity Women's Leadership Fund as compared to its benchmark index, the Russell 3000 Index, over the same 36 month performance period. The Fund's performance adjustment took effect in May 2020. Subsequent months will be added until the performance period includes 36 months. For the reporting period, the total annualized management fee rate, including the performance adjustment, was .53% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
Distribution and Service Plan Fees. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Company LLC (FDC), an affiliate of the investment adviser, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were as follows:
Distribution Fee | Service Fee | Total Fees | Retained by FDC | |
Class A | -% | .25% | $1,296 | $215 |
Class M | .25% | .25% | 1,422 | 398 |
Class C | .75% | .25% | 2,869 | 1,934 |
$5,587 | $2,547 |
Sales Load. FDC may receive a front-end sales charge of up to 5.75% for selling Class A shares and 3.50% for selling Class M shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on Class A, Class M and Class C redemptions. The deferred sales charges are 1.00% for Class C shares, 1.00% for certain purchases of Class A shares and .25% for certain purchases of Class M shares.
For the period, sales charge amounts retained by FDC were as follows:
Retained by FDC | |
Class A | $2,050 |
Class M | 398 |
$2,448 |
Transfer Agent Fees. Fidelity Investments Institutional Operations Company LLC (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund, except for Class Z. FIIOC receives an asset-based fee of Class Z's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
Amount | % of Class-Level Average Net Assets(a) | |
Class A | $968 | .19 |
Class M | 531 | .19 |
Class C | 429 | .15 |
Fidelity Women's Leadership Fund | 46,512 | .27 |
Class I | 511 | .13 |
Class Z | 708 | .04 |
$49,659 |
(a) Annualized
Accounting Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. For the period, the fees were equivalent to the following annualized rates:
% of Average Net Assets | |
Fidelity Women's Leadership Fund | .04 |
Brokerage Commissions. A portion of portfolio transactions were placed with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were as follows:
Amount | |
Fidelity Women's Leadership Fund | $253 |
Interfund Trades. Funds may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
6. Committed Line of Credit.
Certain Funds participate with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The participating funds have agreed to pay commitment fees on their pro-rata portion of the line of credit, which are reflected in Miscellaneous expenses on the Statement of Operations, and are as follows:
Amount | |
Fidelity Women's Leadership Fund | $39 |
During the period, there were no borrowings on this line of credit.
7. Security Lending.
Funds lend portfolio securities from time to time in order to earn additional income. Lending agents are used, including National Financial Services (NFS), an affiliate of the investment adviser. Pursuant to a securities lending agreement, NFS will receive a fee, which is capped at 9.9% of a fund's daily lending revenue, for its services as lending agent. A fund may lend securities to certain qualified borrowers, including NFS. On the settlement date of the loan, a fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of a fund and any additional required collateral is delivered to a fund on the next business day. A fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund may apply collateral received from the borrower against the obligation. A fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. Any loaned securities are identified as such in the Schedule of Investments, and the value of loaned securities and cash collateral at period end, as applicable, are presented in the Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Affiliated security lending activity, if any, was as follows:
Total Security Lending Income Fees Paid to NFS | Security Lending Income From Securities Loaned to NFS | Value of Securities Loaned to NFS at Period End | |
Fidelity Women's Leadership Fund | $368 | $– | $– |
8. Expense Reductions.
The investment adviser contractually agreed to reimburse expenses of each class to the extent annual operating expenses exceeded certain levels of class-level average net assets as noted in the table below. This reimbursement will remain in place through August 31, 2021. Some expenses, for example the compensation of the independent Trustees are excluded from this reimbursement.
The following classes were in reimbursement during the period:
Expense Limitations | Reimbursement | |
Class A | 1.25% | $342 |
Class M | 1.50% | 216 |
Class C | 2.00% | 119 |
Fidelity Women's Leadership Fund | 1.00% | 23,334 |
Class I | 1.00% | 155 |
Class Z | .85% | 1,094 |
$25,260 |
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $1,333 for the period.
In addition, during the period the investment adviser or an affiliate reimbursed and/or waived a portion of fund-level operating expenses in the amount of $45.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended October 31, 2020 | Year ended April 30, 2020 | |
Distributions to shareholders | ||
Class A | $624 | $1,124 |
Class M | 105 | 307 |
Fidelity Women's Leadership Fund | 37,448 | 51,980 |
Class I | 1,059 | 1,486 |
Class Z | 4,011 | 6,528 |
Total | $43,247 | $61,425 |
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
Shares | Shares | Dollars | Dollars | |
Six months ended October 31, 2020 | Year ended April 30, 2020 | Six months ended October 31, 2020 | Year ended April 30, 2020 | |
Class A | ||||
Shares sold | 47,626 | 80,039 | $552,554 | $809,764 |
Reinvestment of distributions | 56 | 103 | 624 | 1,124 |
Shares redeemed | (5,537) | (1,702) | (60,589) | (15,681) |
Net increase (decrease) | 42,145 | 78,440 | $492,589 | $795,207 |
Class M | ||||
Shares sold | 12,201 | 46,220 | $133,133 | $479,639 |
Reinvestment of distributions | 10 | 28 | 105 | 307 |
Shares redeemed | (4,969) | (945) | (57,283) | (9,259) |
Net increase (decrease) | 7,242 | 45,303 | $75,955 | $470,687 |
Class C | ||||
Shares sold | 14,785 | 48,236 | $170,955 | $512,663 |
Shares redeemed | (2,368) | (195) | (25,623) | (2,000) |
Net increase (decrease) | 12,417 | 48,041 | $145,332 | $510,663 |
Fidelity Women's Leadership Fund | ||||
Shares sold | 1,942,567 | 2,817,326 | $22,099,472 | $28,987,122 |
Reinvestment of distributions | 3,256 | 4,612 | 36,112 | 50,270 |
Shares redeemed | (414,488) | (552,590) | (4,681,337) | (5,444,931) |
Net increase (decrease) | 1,531,335 | 2,269,348 | $17,454,247 | $23,592,461 |
Class I | ||||
Shares sold | 32,595 | 78,405 | $388,832 | $812,024 |
Reinvestment of distributions | 93 | 127 | 1,035 | 1,383 |
Shares redeemed | (9,586) | (6,991) | (98,287) | (68,276) |
Net increase (decrease) | 23,102 | 71,541 | $291,580 | $745,131 |
Class Z | ||||
Shares sold | 209,660 | 382,936 | $2,457,359 | $3,866,272 |
Reinvestment of distributions | 346 | 521 | 3,847 | 5,680 |
Shares redeemed | (43,557) | (141,731) | (478,997) | (1,315,334) |
Net increase (decrease) | 166,449 | 241,726 | $1,982,209 | $2,556,618 |
11. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
12. Coronavirus (COVID-19) Pandemic.
An outbreak of COVID-19 first detected in China during December 2019 has since spread globally and was declared a pandemic by the World Health Organization during March 2020. Developments that disrupt global economies and financial markets, such as the COVID-19 pandemic, may magnify factors that affect the Fund's performance.
Shareholder Expense Example
As a shareholder, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or redemption proceeds, as applicable and (2) ongoing costs, which generally include management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in a fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (May 1, 2020 to October 31, 2020).
Actual Expenses
The first line of the accompanying table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class/Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. If any fund is a shareholder of any underlying mutual funds or exchange-traded funds (ETFs) (the Underlying Funds), such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses incurred presented in the table. These fees and expenses are not included in the annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. If any fund is a shareholder of any Underlying Funds, such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses as presented in the table. These fees and expenses are not included in the annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Annualized Expense Ratio-A | Beginning Account Value May 1, 2020 | Ending Account Value October 31, 2020 | Expenses Paid During Period-B May 1, 2020 to October 31, 2020 | |
Fidelity Women's Leadership Fund | ||||
Class A | 1.25% | |||
Actual | $1,000.00 | $1,177.40 | $6.86 | |
Hypothetical-C | $1,000.00 | $1,018.90 | $6.36 | |
Class M | 1.50% | |||
Actual | $1,000.00 | $1,176.10 | $8.23 | |
Hypothetical-C | $1,000.00 | $1,017.64 | $7.63 | |
Class C | 2.00% | |||
Actual | $1,000.00 | $1,172.50 | $10.95 | |
Hypothetical-C | $1,000.00 | $1,015.12 | $10.16 | |
Fidelity Women's Leadership Fund | 1.00% | |||
Actual | $1,000.00 | $1,179.10 | $5.49 | |
Hypothetical-C | $1,000.00 | $1,020.16 | $5.09 | |
Class I | 1.00% | |||
Actual | $1,000.00 | $1,179.10 | $5.49 | |
Hypothetical-C | $1,000.00 | $1,020.16 | $5.09 | |
Class Z | .85% | |||
Actual | $1,000.00 | $1,178.70 | $4.67 | |
Hypothetical-C | $1,000.00 | $1,020.92 | $4.33 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/ 365 (to reflect the one-half year period). The fees and expenses of any Underlying Funds are not included in each annualized expense ratio.
C 5% return per year before expenses
Proxy Voting Results
A special meeting of shareholders was held on June 9, 2020. The results of votes taken among shareholders on the proposal before them are reported below. Each vote reported represents one dollar of net asset value held on the record date for the meeting.
PROPOSAL 1
To elect a Board of Trustees.
# of Votes | % of Votes | |
Dennis J. Dirks | ||
Affirmative | 16,477,844,543.945 | 94.954 |
Withheld | 875,616,757.045 | 5.046 |
TOTAL | 17,353,461,300.990 | 100.000 |
Donald F. Donahue | ||
Affirmative | 16,475,304,981.550 | 94.940 |
Withheld | 878,156,319.440 | 5.060 |
TOTAL | 17,353,461,300.990 | 100.000 |
Bettina Doulton | ||
Affirmative | 16,570,440,321.103 | 95.488 |
Withheld | 783,020,979.887 | 4.512 |
TOTAL | 17,353,461,300.990 | 100.000 |
Vicki L. Fuller | ||
Affirmative | 16,590,910,486.905 | 95.606 |
Withheld | 762,550,814.085 | 4.394 |
TOTAL | 17,353,461,300.990 | 100.00 |
Patricia L. Kampling | ||
Affirmative | 16,469,872,791.586 | 94.908 |
Withheld | 883,588,509.404 | 5.092 |
TOTAL | 17,353,461,300.990 | 100.000 |
Alan J. Lacy | ||
Affirmative | 16,344,655,183.636 | 94.187 |
Withheld | 1,008,806,117.354 | 5.813 |
TOTAL | 17,353,461,300.990 | 100.000 |
Ned C. Lautenbach | ||
Affirmative | 15,532,663,704.227 | 89.508 |
Withheld | 1,820,797,596.763 | 10.492 |
TOTAL | 17,353,461,300.990 | 100.000 |
Robert A. Lawrence | ||
Affirmative | 16,389,821,876.677 | 94.447 |
Withheld | 963,639,424.313 | 5.553 |
TOTAL | 17,353,461,300.990 | 100.000 |
Joseph Mauriello | ||
Affirmative | 16,363,427,626.626 | 94.295 |
Withheld | 990,033,674.365 | 5.705 |
TOTAL | 17,353,461,300.990 | 100.000 |
Cornelia M. Small | ||
Affirmative | 16,405,902,888.605 | 94.540 |
Withheld | 947,558,412.386 | 5.460 |
TOTAL | 17,353,461,300.990 | 100.000 |
Garnett A. Smith | ||
Affirmative | 16,371,912,270.945 | 94.344 |
Withheld | 981,549,030.045 | 5.656 |
TOTAL | 17,353,461,300.990 | 100.000 |
David M. Thomas | ||
Affirmative | 16,365,966,852.048 | 94.310 |
Withheld | 987,494,448.942 | 5.690 |
TOTAL | 17,353,461,300.990 | 100.000 |
Susan Tomasky | ||
Affirmative | 16,483,922,579.861 | 94.989 |
Withheld | 869,538,721.129 | 5.011 |
TOTAL | 17,353,461,300.990 | 100.000 |
Michael E. Wiley | ||
Affirmative | 16,379,083,262.890 | 94.385 |
Withheld | 974,378,038.101 | 5.615 |
TOTAL | 17,353,461,300.990 | 100.000 |
Proposal 1 reflects trust wide proposal and voting results. |
WLF-SANN-1220
1.9893106.101
Fidelity® U.S. Low Volatility Equity Fund
Semi-Annual Report
October 31, 2020
See the inside front cover for important information about access to your fund’s shareholder reports.
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of a fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a financial advisor, broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from a fund electronically, by contacting your financial intermediary. For Fidelity customers, visit Fidelity's web site or call Fidelity using the contact information listed below.
You may elect to receive all future reports in paper free of charge. If you wish to continue receiving paper copies of your shareholder reports, you may contact your financial intermediary or, if you are a Fidelity customer, visit Fidelity’s website, or call Fidelity at the applicable toll-free number listed below. Your election to receive reports in paper will apply to all funds held with the fund complex/your financial intermediary.
Account Type | Website | Phone Number |
Brokerage, Mutual Fund, or Annuity Contracts: | fidelity.com/mailpreferences | 1-800-343-3548 |
Employer Provided Retirement Accounts: | netbenefits.fidelity.com/preferences (choose 'no' under Required Disclosures to continue to print) | 1-800-343-0860 |
Advisor Sold Accounts Serviced Through Your Financial Intermediary: | Contact Your Financial Intermediary | Your Financial Intermediary's phone number |
Advisor Sold Accounts Serviced by Fidelity: | institutional.fidelity.com | 1-877-208-0098 |
Contents
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-800-544-8544 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. © 2020 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT. Forms N-PORT are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-PORT may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Note to Shareholders:
Early in 2020, the outbreak and spread of a new coronavirus emerged as a public health emergency that had a major influence on financial markets, primarily based on its impact on the global economy and the outlook for corporate earnings. The virus causes a respiratory disease known as COVID-19. On March 11, the World Health Organization declared the COVID-19 outbreak a pandemic, citing sustained risk of further global spread.
In the weeks following, as the crisis worsened, we witnessed an escalating human tragedy with wide-scale social and economic consequences from coronavirus-containment measures. The outbreak of COVID-19 prompted a number of measures to limit the spread, including travel and border restrictions, quarantines, and restrictions on large gatherings. In turn, these resulted in lower consumer activity, diminished demand for a wide range of products and services, disruption in manufacturing and supply chains, and – given the wide variability in outcomes regarding the outbreak – significant market uncertainty and volatility. Amid the turmoil, global governments and central banks took unprecedented action to help support consumers, businesses, and the broader economies, and to limit disruption to financial systems.
The situation continues to unfold, and the extent and duration of its impact on financial markets and the economy remain highly uncertain. Extreme events such as the coronavirus crisis are “exogenous shocks” that can have significant adverse effects on mutual funds and their investments. Although multiple asset classes may be affected by market disruption, the duration and impact may not be the same for all types of assets.
Fidelity is committed to helping you stay informed amid news about COVID-19 and during increased market volatility, and we’re taking extra steps to be responsive to customer needs. We encourage you to visit our websites, where we offer ongoing updates, commentary, and analysis on the markets and our funds.
Investment Summary (Unaudited)
Top Five Stocks as of October 31, 2020
% of fund's net assets | |
iShares MSCI USA Minimum Volatility ETF | 1.6 |
Newmont Corp. | 1.1 |
Dollar General Corp. | 1.1 |
Danaher Corp. | 1.1 |
Wheaton Precious Metals Corp. | 1.1 |
6.0 |
Top Five Market Sectors as of October 31, 2020
% of fund's net assets | |
Information Technology | 16.3 |
Health Care | 15.6 |
Consumer Staples | 13.0 |
Consumer Discretionary | 10.5 |
Financials | 9.2 |
Asset Allocation (% of fund's net assets)
As of October 31, 2020 * | ||
Stocks | 99.7% | |
Short-Term Investments and Net Other Assets (Liabilities) | 0.3% |
* Foreign investments - 14.8%
Schedule of Investments October 31, 2020 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.1% | |||
Shares | Value | ||
COMMUNICATION SERVICES - 7.8% | |||
Diversified Telecommunication Services - 1.0% | |||
HKT Trust/HKT Ltd. unit | 745,626 | $963,711 | |
Liberty Global PLC Class C (a) | 106,800 | 1,992,888 | |
2,956,599 | |||
Entertainment - 4.0% | |||
Activision Blizzard, Inc. | 33,497 | 2,536,728 | |
Electronic Arts, Inc. (a) | 19,454 | 2,331,173 | |
Netflix, Inc. (a) | 4,795 | 2,281,173 | |
Take-Two Interactive Software, Inc. (a) | 18,037 | 2,794,292 | |
Zynga, Inc. (a) | 259,500 | 2,332,905 | |
12,276,271 | |||
Interactive Media & Services - 1.8% | |||
Alphabet, Inc. Class A (a) | 1,531 | 2,474,264 | |
Facebook, Inc. Class A (a) | 10,785 | 2,837,641 | |
5,311,905 | |||
Wireless Telecommunication Services - 1.0% | |||
T-Mobile U.S., Inc. | 28,676 | 3,142,029 | |
TOTAL COMMUNICATION SERVICES | 23,686,804 | ||
CONSUMER DISCRETIONARY - 10.5% | |||
Diversified Consumer Services - 0.8% | |||
Service Corp. International | 51,620 | 2,390,522 | |
Hotels, Restaurants & Leisure - 1.6% | |||
McDonald's Corp. | 11,541 | 2,458,233 | |
Starbucks Corp. | 26,460 | 2,300,962 | |
4,759,195 | |||
Household Durables - 2.5% | |||
D.R. Horton, Inc. | 38,646 | 2,581,939 | |
Lennar Corp. Class A | 36,214 | 2,543,309 | |
NVR, Inc. (a) | 657 | 2,597,180 | |
7,722,428 | |||
Internet & Direct Marketing Retail - 0.9% | |||
Amazon.com, Inc. (a) | 950 | 2,884,343 | |
Leisure Products - 0.6% | |||
Sturm, Ruger & Co., Inc. | 26,138 | 1,747,587 | |
Multiline Retail - 2.8% | |||
Dollar General Corp. | 15,807 | 3,299,079 | |
Dollar Tree, Inc. (a) | 29,820 | 2,693,342 | |
Target Corp. | 16,200 | 2,465,964 | |
8,458,385 | |||
Specialty Retail - 1.3% | |||
Ross Stores, Inc. | 19,343 | 1,647,443 | |
TJX Companies, Inc. | 46,108 | 2,342,286 | |
3,989,729 | |||
TOTAL CONSUMER DISCRETIONARY | 31,952,189 | ||
CONSUMER STAPLES - 13.0% | |||
Beverages - 2.2% | |||
Keurig Dr. Pepper, Inc. | 72,950 | 1,962,355 | |
Monster Beverage Corp. (a) | 35,962 | 2,753,610 | |
The Coca-Cola Co. | 43,253 | 2,078,739 | |
6,794,704 | |||
Food & Staples Retailing - 4.1% | |||
BJ's Wholesale Club Holdings, Inc. (a) | 83,393 | 3,193,118 | |
Costco Wholesale Corp. | 7,367 | 2,634,587 | |
Grocery Outlet Holding Corp. (a) | 53,215 | 2,342,524 | |
Kroger Co. | 74,145 | 2,388,210 | |
Performance Food Group Co. (a) | 22,495 | 756,057 | |
U.S. Foods Holding Corp. (a) | 50,394 | 1,053,235 | |
12,367,731 | |||
Food Products - 5.1% | |||
Conagra Brands, Inc. | 60,092 | 2,108,628 | |
Lamb Weston Holdings, Inc. | 26,733 | 1,696,209 | |
Mondelez International, Inc. | 45,013 | 2,391,091 | |
Nestle SA (Reg. S) | 18,335 | 2,062,283 | |
Sanderson Farms, Inc. | 19,731 | 2,524,976 | |
The J.M. Smucker Co. | 21,902 | 2,457,404 | |
TreeHouse Foods, Inc. (a) | 55,426 | 2,152,746 | |
15,393,337 | |||
Household Products - 1.6% | |||
Kimberly-Clark Corp. | 16,851 | 2,234,274 | |
Procter & Gamble Co. | 19,286 | 2,644,111 | |
4,878,385 | |||
TOTAL CONSUMER STAPLES | 39,434,157 | ||
FINANCIALS - 9.2% | |||
Capital Markets - 1.6% | |||
Intercontinental Exchange, Inc. | 24,301 | 2,294,014 | |
The NASDAQ OMX Group, Inc. | 21,660 | 2,620,643 | |
4,914,657 | |||
Diversified Financial Services - 0.7% | |||
Berkshire Hathaway, Inc. Class B (a) | 10,348 | 2,089,261 | |
Insurance - 6.9% | |||
Allstate Corp. | 20,285 | 1,800,294 | |
Assurant, Inc. | 16,626 | 2,067,776 | |
Axis Capital Holdings Ltd. | 42,635 | 1,820,088 | |
Brown & Brown, Inc. | 63,334 | 2,755,662 | |
Chubb Ltd. | 16,599 | 2,156,376 | |
Marsh & McLennan Companies, Inc. | 18,716 | 1,936,357 | |
Old Republic International Corp. | 102,022 | 1,660,918 | |
The Travelers Companies, Inc. | 16,761 | 2,023,220 | |
Tokio Marine Holdings, Inc. | 36,141 | 1,615,312 | |
White Mountains Insurance Group Ltd. | 2,036 | 1,849,360 | |
Willis Towers Watson PLC | 7,086 | 1,293,053 | |
20,978,416 | |||
TOTAL FINANCIALS | 27,982,334 | ||
HEALTH CARE - 15.6% | |||
Biotechnology - 4.1% | |||
Alexion Pharmaceuticals, Inc. (a) | 20,188 | 2,324,446 | |
Amgen, Inc. | 9,417 | 2,042,924 | |
Regeneron Pharmaceuticals, Inc. (a) | 5,354 | 2,910,220 | |
Seagen, Inc. (a) | 12,300 | 2,051,640 | |
United Therapeutics Corp. (a) | 11,400 | 1,530,222 | |
Vertex Pharmaceuticals, Inc. (a) | 7,972 | 1,661,046 | |
12,520,498 | |||
Health Care Equipment & Supplies - 2.5% | |||
Becton, Dickinson & Co. | 8,585 | 1,984,251 | |
Danaher Corp. | 14,355 | 3,295,047 | |
Masimo Corp. (a) | 9,768 | 2,186,274 | |
7,465,572 | |||
Health Care Providers & Services - 2.3% | |||
Humana, Inc. | 6,376 | 2,545,809 | |
Premier, Inc. | 66,245 | 2,168,199 | |
UnitedHealth Group, Inc. | 7,591 | 2,316,318 | |
7,030,326 | |||
Life Sciences Tools & Services - 1.9% | |||
Bio-Rad Laboratories, Inc. Class A (a) | 4,500 | 2,638,890 | |
Thermo Fisher Scientific, Inc. | 6,412 | 3,033,645 | |
5,672,535 | |||
Pharmaceuticals - 4.8% | |||
AstraZeneca PLC (United Kingdom) | 21,231 | 2,131,709 | |
Bristol-Myers Squibb Co. | 39,698 | 2,320,348 | |
Eli Lilly & Co. | 16,556 | 2,159,896 | |
Jazz Pharmaceuticals PLC (a) | 11,211 | 1,615,505 | |
Recordati SpA | 44,204 | 2,290,443 | |
Roche Holding AG (participation certificate) | 6,768 | 2,174,772 | |
Sanofi SA sponsored ADR | 45,300 | 2,052,090 | |
14,744,763 | |||
TOTAL HEALTH CARE | 47,433,694 | ||
INDUSTRIALS - 7.9% | |||
Aerospace & Defense - 1.3% | |||
Lockheed Martin Corp. | 5,861 | 2,052,112 | |
Northrop Grumman Corp. | 6,378 | 1,848,472 | |
3,900,584 | |||
Commercial Services & Supplies - 1.6% | |||
Waste Connection, Inc. (United States) | 25,450 | 2,527,694 | |
Waste Management, Inc. | 20,306 | 2,191,220 | |
4,718,914 | |||
Industrial Conglomerates - 0.8% | |||
Roper Technologies, Inc. | 6,700 | 2,487,978 | |
Machinery - 0.8% | |||
IDEX Corp. | 13,797 | 2,350,871 | |
Professional Services - 1.2% | |||
FTI Consulting, Inc. (a) | 11,100 | 1,092,906 | |
Verisk Analytics, Inc. | 14,364 | 2,556,361 | |
3,649,267 | |||
Road & Rail - 2.2% | |||
Heartland Express, Inc. | 106,125 | 1,943,149 | |
Landstar System, Inc. | 20,168 | 2,514,950 | |
Schneider National, Inc. Class B | 100,515 | 2,217,361 | |
6,675,460 | |||
TOTAL INDUSTRIALS | 23,783,074 | ||
INFORMATION TECHNOLOGY - 16.3% | |||
Communications Equipment - 1.3% | |||
Ciena Corp. (a) | 38,800 | 1,528,332 | |
F5 Networks, Inc. (a) | 11,660 | 1,550,080 | |
Juniper Networks, Inc. | 47,202 | 930,823 | |
4,009,235 | |||
Electronic Equipment & Components - 2.0% | |||
Keyence Corp. | 5,167 | 2,397,230 | |
Keysight Technologies, Inc. (a) | 21,298 | 2,233,521 | |
TE Connectivity Ltd. | 16,086 | 1,558,412 | |
6,189,163 | |||
IT Services - 7.5% | |||
Accenture PLC Class A | 11,637 | 2,524,182 | |
Akamai Technologies, Inc. (a) | 20,611 | 1,960,518 | |
Black Knight, Inc. (a) | 35,293 | 3,104,019 | |
Booz Allen Hamilton Holding Corp. Class A | 31,288 | 2,456,108 | |
Fidelity National Information Services, Inc. | 15,968 | 1,989,453 | |
Fiserv, Inc. (a) | 19,710 | 1,881,714 | |
Jack Henry & Associates, Inc. | 15,558 | 2,306,474 | |
MasterCard, Inc. Class A | 7,531 | 2,173,748 | |
Maximus, Inc. | 29,957 | 2,024,494 | |
Visa, Inc. Class A | 12,194 | 2,215,772 | |
22,636,482 | |||
Software - 5.5% | |||
Adobe, Inc. (a) | 6,408 | 2,865,017 | |
Everbridge, Inc. (a) | 18,000 | 1,884,420 | |
Microsoft Corp. | 15,656 | 3,169,870 | |
Oracle Corp. | 51,184 | 2,871,934 | |
Oracle Corp. Japan | 17,111 | 1,710,075 | |
Salesforce.com, Inc. (a) | 12,243 | 2,843,682 | |
SAP SE sponsored ADR | 12,100 | 1,292,643 | |
16,637,641 | |||
TOTAL INFORMATION TECHNOLOGY | 49,472,521 | ||
MATERIALS - 5.9% | |||
Containers & Packaging - 0.8% | |||
Aptargroup, Inc. | 20,066 | 2,289,330 | |
Metals & Mining - 5.1% | |||
Agnico Eagle Mines Ltd. (Canada) | 35,448 | 2,806,200 | |
Barrick Gold Corp. (Canada) | 119,776 | 3,202,298 | |
Newmont Corp. | 52,872 | 3,322,476 | |
Royal Gold, Inc. | 25,142 | 2,987,121 | |
Wheaton Precious Metals Corp. | 69,876 | 3,206,649 | |
15,524,744 | |||
TOTAL MATERIALS | 17,814,074 | ||
REAL ESTATE - 3.8% | |||
Equity Real Estate Investment Trusts (REITs) - 3.8% | |||
Alexandria Real Estate Equities, Inc. | 14,033 | 2,126,280 | |
American Tower Corp. | 10,884 | 2,499,511 | |
CubeSmart | 75,344 | 2,556,422 | |
Equinix, Inc. | 3,957 | 2,893,517 | |
UDR, Inc. | 47,340 | 1,478,902 | |
11,554,632 | |||
UTILITIES - 8.1% | |||
Electric Utilities - 6.2% | |||
Duke Energy Corp. | 25,970 | 2,392,097 | |
Entergy Corp. | 18,855 | 1,908,503 | |
Evergy, Inc. | 35,581 | 1,964,071 | |
Eversource Energy | 27,993 | 2,442,949 | |
NextEra Energy, Inc. | 37,088 | 2,715,212 | |
Pinnacle West Capital Corp. | 25,669 | 2,093,820 | |
Portland General Electric Co. | 30,102 | 1,183,009 | |
PPL Corp. | 66,211 | 1,820,803 | |
Xcel Energy, Inc. | 31,891 | 2,233,327 | |
18,753,791 | |||
Gas Utilities - 1.2% | |||
Atmos Energy Corp. | 20,764 | 1,903,436 | |
ONE Gas, Inc. | 24,625 | 1,700,110 | |
3,603,546 | |||
Multi-Utilities - 0.7% | |||
Dominion Energy, Inc. | 27,289 | 2,192,398 | |
TOTAL UTILITIES | 24,549,735 | ||
TOTAL COMMON STOCKS | |||
(Cost $282,847,991) | 297,663,214 | ||
Money Market Funds - 0.3% | |||
Fidelity Cash Central Fund 0.10% (b) | |||
(Cost $790,292) | 790,134 | 790,292 | |
Equity Funds - 1.6% | |||
Domestic Equity Funds - 1.6% | |||
iShares MSCI USA Minimum Volatility ETF | |||
(Cost $4,900,865) | 80,390 | 4,956,850 | |
TOTAL INVESTMENT IN SECURITIES - 100.0% | |||
(Cost $288,539,148) | 303,410,356 | ||
NET OTHER ASSETS (LIABILITIES) - 0.0% | (40,161) | ||
NET ASSETS - 100% | $303,370,195 |
Security Type Abbreviations
ETF – Exchange-Traded Fund
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.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
Fidelity Cash Central Fund | $649 |
Total | $649 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable.
Investment Valuation
The following is a summary of the inputs used, as of October 31, 2020, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Equities: | ||||
Communication Services | $23,686,804 | $23,686,804 | $-- | $-- |
Consumer Discretionary | 31,952,189 | 31,952,189 | -- | -- |
Consumer Staples | 39,434,157 | 37,371,874 | 2,062,283 | -- |
Financials | 27,982,334 | 26,367,022 | 1,615,312 | -- |
Health Care | 47,433,694 | 43,127,213 | 4,306,481 | -- |
Industrials | 23,783,074 | 23,783,074 | -- | -- |
Information Technology | 49,472,521 | 47,762,446 | 1,710,075 | -- |
Materials | 17,814,074 | 17,814,074 | -- | -- |
Real Estate | 11,554,632 | 11,554,632 | -- | -- |
Utilities | 24,549,735 | 24,549,735 | -- | -- |
Money Market Funds | 790,292 | 790,292 | -- | -- |
Equity Funds | 4,956,850 | 4,956,850 | -- | -- |
Total Investments in Securities: | $303,410,356 | $293,716,205 | $9,694,151 | $-- |
Other Information
Distribution of investments by country or territory of incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
United States of America | 85.2% |
Canada | 3.9% |
Switzerland | 2.6% |
Japan | 1.9% |
United Kingdom | 1.8% |
Ireland | 1.3% |
Bermuda | 1.2% |
Others (Individually Less Than 1%) | 2.1% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
October 31, 2020 (Unaudited) | ||
Assets | ||
Investment in securities, at value — See accompanying schedule: Unaffiliated issuers (cost $287,748,856) | $302,620,064 | |
Fidelity Central Funds (cost $790,292) | 790,292 | |
Total Investment in Securities (cost $288,539,148) | $303,410,356 | |
Receivable for fund shares sold | 46,310 | |
Dividends receivable | 158,603 | |
Distributions receivable from Fidelity Central Funds | 51 | |
Prepaid expenses | 552 | |
Other receivables | 4,189 | |
Total assets | 303,620,061 | |
Liabilities | ||
Payable for fund shares redeemed | $36,848 | |
Accrued management fee | 140,682 | |
Transfer agent fee payable | 45,056 | |
Other affiliated payables | 10,329 | |
Other payables and accrued expenses | 16,951 | |
Total liabilities | 249,866 | |
Net Assets | $303,370,195 | |
Net Assets consist of: | ||
Paid in capital | $287,304,127 | |
Total accumulated earnings (loss) | 16,066,068 | |
Net Assets | $303,370,195 | |
Net Asset Value, offering price and redemption price per share ($303,370,195 ÷ 30,825,783 shares) | $9.84 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended October 31, 2020 (Unaudited) | ||
Investment Income | ||
Dividends | $2,470,028 | |
Income from Fidelity Central Funds | 649 | |
Total income | 2,470,677 | |
Expenses | ||
Management fee | $831,158 | |
Transfer agent fees | 267,561 | |
Accounting fees and expenses | 60,956 | |
Custodian fees and expenses | 4,867 | |
Independent trustees' fees and expenses | 629 | |
Registration fees | 37,413 | |
Audit | 22,414 | |
Legal | 11 | |
Miscellaneous | (69) | |
Total expenses before reductions | 1,224,940 | |
Expense reductions | (7,798) | |
Total expenses after reductions | 1,217,142 | |
Net investment income (loss) | 1,253,535 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 570,059 | |
Fidelity Central Funds | (99) | |
Foreign currency transactions | 1,758 | |
Total net realized gain (loss) | 571,718 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 19,730,135 | |
Assets and liabilities in foreign currencies | 298 | |
Total change in net unrealized appreciation (depreciation) | 19,730,433 | |
Net gain (loss) | 20,302,151 | |
Net increase (decrease) in net assets resulting from operations | $21,555,686 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended October 31, 2020 (Unaudited) | For the period November 5, 2019 (commencement of operations) to April 30, 2020 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $1,253,535 | $61,363 |
Net realized gain (loss) | 571,718 | (585,484) |
Change in net unrealized appreciation (depreciation) | 19,730,433 | (4,858,894) |
Net increase (decrease) in net assets resulting from operations | 21,555,686 | (5,383,015) |
Distributions to shareholders | (96,663) | (9,940) |
Share transactions | ||
Proceeds from sales of shares | 12,895,542 | 303,645,984 |
Reinvestment of distributions | 96,640 | 9,899 |
Cost of shares redeemed | (25,771,091) | (3,572,847) |
Net increase (decrease) in net assets resulting from share transactions | (12,778,909) | 300,083,036 |
Total increase (decrease) in net assets | 8,680,114 | 294,690,081 |
Net Assets | ||
Beginning of period | 294,690,081 | – |
End of period | $303,370,195 | $294,690,081 |
Other Information | ||
Shares | ||
Sold | 1,483,696 | 32,321,840 |
Issued in reinvestment of distributions | 9,801 | 970 |
Redeemed | (2,598,596) | (391,928) |
Net increase (decrease) | (1,105,099) | 31,930,882 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity U.S. Low Volatility Equity Fund
Six months ended (Unaudited) October 31, | Years endedApril 30, | |
2020 | 2020 A | |
Selected Per–Share Data | ||
Net asset value, beginning of period | $9.23 | $10.00 |
Income from Investment Operations | ||
Net investment income (loss)B | .04 | .05 |
Net realized and unrealized gain (loss) | .57 | (.79) |
Total from investment operations | .61 | (.74) |
Distributions from net investment income | –C | (.03) |
Total distributions | –C | (.03) |
Net asset value, end of period | $9.84 | $9.23 |
Total ReturnD,E | 6.64% | (7.44)% |
Ratios to Average Net AssetsF,G | ||
Expenses before reductions | .78%H | 2.28%H |
Expenses net of fee waivers, if any | .78%H | .95%H |
Expenses net of all reductions | .78%H | .95%H |
Net investment income (loss) | .80%H | 1.46%H |
Supplemental Data | ||
Net assets, end of period (000 omitted) | $303,370 | $294,690 |
Portfolio turnover rateI | 45%H | 101%J,K |
A For the period November 5, 2019 (commencement of operations) to April 30, 2020.
B Calculated based on average shares outstanding during the period.
C Amount represents less than $.005 per share.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Fees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment advisor, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
H Annualized
I Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
J Portfolio turnover rate excludes securities received or delivered in-kind.
K Amount not annualized.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended October 31, 2020
1. Organization.
Fidelity U.S. Low Volatility Equity Fund (the Fund) is a fund of Fidelity Summer Street Trust (the Trust) and is authorized to issue an unlimited number of shares. Share transactions on the Statement of Changes in Net Assets may contain exchanges between affiliated funds. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date ranged from less than .005% to .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investment Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
ETFs are valued at their last sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day but the exchange reports a closing bid level, ETFs are valued at the closing bid and would be categorized as Level 1 in the hierarchy. In the event there was no closing bid, ETFs may be valued by another method that the Board believes reflects fair value in accordance with the Board's fair value pricing policies and may be categorized as Level 2 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of October 31, 2020 is included at the end of the Fund's Schedule of Investments.
Foreign Currency. Certain Funds may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received, and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to in-kind transactions, foreign currency transactions and losses deferred due to wash sales and capital loss carryforwards.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
Gross unrealized appreciation | $26,086,856 |
Gross unrealized depreciation | (10,339,930) |
Net unrealized appreciation (depreciation) | $15,746,926 |
Tax cost | $287,663,430 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of prior fiscal period end and is subject to adjustment.
No expiration | |
Short-term | $(523,430) |
Total capital loss carryforward | $(523,430) |
Due to large subscriptions in a prior period, $437,552 of capital losses that will be available to offset future capital gains of the Fund will be limited to approximately $148,547 per year.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, are noted in the table below.
Purchases ($) | Sales ($) | |
Fidelity U.S. Low Volatility Equity Fund | 70,213,940 | 79,783,307 |
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company LLC (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .23% during the period. The group fee rate is based upon the monthly average net assets of a group of registered investment companies with which the investment adviser has management contracts. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the reporting period, the total annualized management fee rate was .53% of the Fund's average net assets.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company LLC (FIIOC), an affiliate of the investment adviser, is the Fund's transfer, dividend disbursing and shareholder servicing agent. FIIOC receives account fees and asset-based fees that vary according to account size and type of account. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the transfer agent fees were equivalent to an annualized rate of .17% of average net assets.
Accounting Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. For the period, the fees were equivalent to the following annualized rates:
% of Average Net Assets | |
Fidelity U.S. Low Volatility Equity Fund | .04 |
Brokerage Commissions. A portion of portfolio transactions were placed with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were as follows:
Amount | |
Fidelity U.S. Low Volatility Equity Fund | $2,494 |
Interfund Trades. Funds may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
Prior Fiscal Year Affiliated Exchanges In-Kind. During the prior period, VIP FundsManager 20% Portfolio, VIP FundsManager 50% Portfolio, VIP FundsManager 60% Portfolio, VIP FundsManager 70% Portfolio, and VIP FundsManager 85% Portfolio (the Investing Funds) completed exchange in-kind transactions with the Fund. The Investing Funds delivered investments and cash valued at $289,970,779, in exchange for 30,946,721 shares of the Fund, as presented in the accompanying table. The value of investments delivered from the Investing Funds is included in proceeds from sales of shares in the accompanying Statements of Changes in Net Assets. Each Fund did not recognize gain or loss for federal income tax purposes. Details of the transactions are presented in the accompanying table:
Fund | Value of investments and cash, delivered from Investing Fund | Exchanged number of shares |
VIP FundsManager 20% Portfolio | $5,912,068 | 630,957 |
VIP FundsManager 50% Portfolio | 101,614,757 | 10,844,691 |
VIP FundsManager 60% Portfolio | 127,748,659 | 13,633,795 |
VIP FundsManager 70% Portfolio | 38,918,062 | 4,153,475 |
VIP FundsManager 85% Portfolio | 15,777,233 | 1,683,803 |
Total | $289,970,779 | 30,946,721 |
6. Committed Line of Credit.
Certain Funds participate with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The participating funds have agreed to pay commitment fees on their pro-rata portion of the line of credit, which are reflected in Miscellaneous expenses on the Statement of Operations, and are as follows:
Amount | |
Fidelity U.S. Low Volatility Equity Fund | $290 |
During the period, there were no borrowings on this line of credit.
7. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $7,788 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses by $3.
In addition, during the period the investment adviser or an affiliate reimbursed and/or waived a portion of operating expenses in the amount of $7.
8. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
At the end of the period, VIP FundsManager 50% Portfolio, VIP FundsManager 60% Portfolio and VIP FundsManager 70% Portfolio, were the owners of record of approximately 32%, 43% and 13%, respectively, of the total outstanding shares of the Fund. Mutual funds managed by the investment adviser or its affiliates were the owners of record, in the aggregate, of approximately 96% of the total outstanding shares of the Fund.
9. Coronavirus (COVID-19) Pandemic.
An outbreak of COVID-19 first detected in China during December 2019 has since spread globally and was declared a pandemic by the World Health Organization during March 2020. Developments that disrupt global economies and financial markets, such as the COVID-19 pandemic, may magnify factors that affect the Fund's performance.
Shareholder Expense Example
As a shareholder, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or redemption proceeds, as applicable and (2) ongoing costs, which generally include management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in a fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (May 1, 2020 to October 31, 2020).
Actual Expenses
The first line of the accompanying table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class/Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. If any fund is a shareholder of any underlying mutual funds or exchange-traded funds (ETFs) (the Underlying Funds), such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses incurred presented in the table. These fees and expenses are not included in the annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. If any fund is a shareholder of any Underlying Funds, such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses as presented in the table. These fees and expenses are not included in the annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
Annualized Expense Ratio-A | Beginning Account Value May 1, 2020 | Ending Account Value October 31, 2020 | Expenses Paid During Period-B May 1, 2020 to October 31, 2020 | |
Fidelity U.S. Low Volatility Equity Fund | .78% | |||
Actual | $1,000.00 | $1,066.40 | $4.06 | |
Hypothetical-C | $1,000.00 | $1,021.27 | $3.97 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/ 365 (to reflect the one-half year period). The fees and expenses of any Underlying Funds are not included in each annualized expense ratio.
C 5% return per year before expenses
Proxy Voting Results
A special meeting of shareholders was held on June 9, 2020. The results of votes taken among shareholders on the proposal before them are reported below. Each vote reported represents one dollar of net asset value held on the record date for the meeting.
USL-SANN-1220
1.9896229.100
Item 2.
Code of Ethics
Not applicable.
Item 3.
Audit Committee Financial Expert
Not applicable.
Item 4.
Principal Accountant Fees and Services
Not applicable.
Item 5.
Audit Committee of Listed Registrants
Not applicable.
Item 6.
Investments
(a)
Not applicable.
(b)
Not applicable
Item 7.
Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not applicable.
Item 8.
Portfolio Managers of Closed-End Management Investment Companies
Not applicable.
Item 9.
Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
Not applicable.
Item 10.
Submission of Matters to a Vote of Security Holders
There were no material changes to the procedures by which shareholders may recommend nominees to the Fidelity Summer Street Trust’s Board of Trustees.
Item 11.
Controls and Procedures
(a)(i) The President and Treasurer and the Chief Financial Officer have concluded that the Fidelity Summer Street Trust’s (the “Trust”) disclosure controls and procedures (as
defined in Rule 30a-3(c) under the Investment Company Act) provide reasonable assurances that material information relating to the Trust is made known to them by the appropriate persons, based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this report.
(a)(ii) There was no change in the Trust’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act) that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Trust’s internal control over financial reporting.
Item 12.
Disclosure of Securities Lending Activities for Closed-End Management
Investment Companies
Not applicable.
Item 13.
Exhibits
(a) | (1) | Not applicable. |
(a) | (2) | |
(a) | (3) | Not applicable. |
(b) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Fidelity Summer Street Trust
By: | /s/Stacie M. Smith |
Stacie M. Smith | |
President and Treasurer | |
Date: | December 18, 2020 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/Stacie M. Smith |
Stacie M. Smith | |
President and Treasurer | |
Date: | December 18, 2020 |
By: | /s/John J. Burke III |
John J. Burke III | |
Chief Financial Officer | |
Date: | December 18, 2020 |