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 811-3583
Fidelity Mt. Vernon Street Trust
(Exact name of registrant as specified in charter)
245 Summer St., Boston, Massachusetts 02210
(Address of principal executive offices) (Zip code)
William C. Coffey, Secretary
245 Summer St.
Boston, Massachusetts 02210
(Name and address of agent for service)
Registrant's telephone number, including area code:
617-563-7000
Date of fiscal year end: | November 30 |
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Date of reporting period: | November 30, 2018 |
Item 1.
Reports to Stockholders
Fidelity® Growth Company Fund Annual Report November 30, 2018 |
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 |
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Contents
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2019 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
For the periods ended November 30, 2018 | Past 1 year | Past 5 years | Past 10 years |
Fidelity® Growth Company Fund | 6.19% | 14.12% | 18.49% |
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity® Growth Company Fund, a class of the fund, on November 30, 2008.
The chart shows how the value of your investment would have changed, and also shows how the Russell 3000® Growth Index performed over the same period.
Period Ending Values | ||
$54,572 | Fidelity® Growth Company Fund | |
$45,893 | Russell 3000® Growth Index |
Management's Discussion of Fund Performance
Market Recap: The S&P 500® index gained 6.27% for the 12 months ending November 30, 2018, as the U.S. equity bellwether declined sharply in October after climbing steadily beginning in May and achieving a record close in late September. Rising U.S. Treasury yields and concern about peaking corporate earnings growth sent many investors fleeing from risk assets at a time when they were still dealing with lingering uncertainty related to global trade and the U.S. Federal Reserve picking up the pace of interest rate hikes. The index returned -6.84% in October alone, its largest monthly drop in roughly seven years, and then endured a highly volatile November in which it gained 2.04%. For the full year, growth stocks within the index maintained a sizable advantage over their value counterparts, extending a trend that began in early 2017. A number of economically sensitive sectors dropped to the bottom of the 12-month performance scale, with materials (-7%) and energy (-2%) faring worst, followed by industrials (-1%) and financials (0%). In contrast, the defensive-oriented health care sector gained about 16% to lead the way. Consumer discretionary and information technology were rattled in October but earlier strength resulted in each advancing roughly 13% for the full 12 months. The newly reconstituted communication services sector, which includes dividend-rich telecom stocks, rose about 4%. Real estate (+5%), consumer staples (+3%) and utilities (+2%) also advanced but lagged the broader market.Comments from Portfolio Manager Steven Wymer: For the fiscal year, the fund's share classes gained about 6%, behind the 8.14% advance of the benchmark Russell 3000® Growth Index. Versus the benchmark, security selection within the health care sector was by far the biggest detractor, primarily a result of choices and a sizable overweighting in the biotechnology, pharmaceuticals & life sciences segment. Included was Alnylam Pharmaceuticals (-40%), a biopharma company focused on the innovative area of RNA-interference therapies for genetic diseases. In information technology, chipmaker Nvidia (-18%) was the fund’s largest holding, on average, the past 12 months and also our biggest individual detractor. The stock was hurt by excessive supply in the firm’s video gaming card business in the wake of the robust wave of crypto mining the past year. In addition, Nvidia’s data center business, while strong and well-positioned, experienced slowing growth, partly due to a slowdown in cloud spending. Conversely, security selection in consumer discretionary helped relative performance, as did an overweighing here. Yoga-inspired athletic retailer lululemon athletica (+98%) was our top individual contributor versus the benchmark. The stock benefited from the company’s strong financial results this period, supported by enhanced online capabilities and improved offerings. Cloud-computing enterprise software provider Salesforce.com (+37%) also notably contributed.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Investment Summary (Unaudited)
Top Ten Stocks as of November 30, 2018
% of fund's net assets | |
Amazon.com, Inc. | 6.8 |
Apple, Inc. | 5.2 |
NVIDIA Corp. | 5.0 |
Alphabet, Inc. Class A | 4.1 |
Salesforce.com, Inc. | 3.4 |
Microsoft Corp. | 3.3 |
Facebook, Inc. Class A | 2.4 |
lululemon athletica, Inc. | 2.3 |
Alphabet, Inc. Class C | 2.2 |
adidas AG | 1.7 |
36.4 |
Top Five Market Sectors as of November 30, 2018
% of fund's net assets | |
Information Technology | 32.6 |
Consumer Discretionary | 20.3 |
Health Care | 18.4 |
Communication Services | 13.6 |
Industrials | 5.2 |
Asset Allocation (% of fund's net assets)
As of November 30, 2018* | ||
Stocks | 97.5% | |
Convertible Securities | 2.3% | |
Short-Term Investments and Net Other Assets (Liabilities) | 0.2% |
* Foreign investments - 9.0%
Schedule of Investments November 30, 2018
Showing Percentage of Net Assets
Common Stocks - 97.4% | |||
Shares | Value (000s) | ||
COMMUNICATION SERVICES - 13.0% | |||
Diversified Telecommunication Services - 0.2% | |||
Verizon Communications, Inc. | 1,189,892 | $71,750 | |
Entertainment - 3.2% | |||
Activision Blizzard, Inc. | 6,113,406 | 304,937 | |
Electronic Arts, Inc. (a) | 1,473,579 | 123,884 | |
Lions Gate Entertainment Corp.: | |||
Class A | 95,549 | 1,855 | |
Class B | 82,622 | 1,490 | |
Live Nation Entertainment, Inc. (a) | 1,148,030 | 63,922 | |
NetEase, Inc. ADR | 200,899 | 45,618 | |
Netflix, Inc. (a) | 1,997,541 | 571,556 | |
Nintendo Co. Ltd. | 109,900 | 33,425 | |
The Walt Disney Co. | 1,434,760 | 165,700 | |
1,312,387 | |||
Interactive Media & Services - 8.9% | |||
Alphabet, Inc.: | |||
Class A (a) | 1,508,185 | 1,673,557 | |
Class C (a) | 804,164 | 880,101 | |
Facebook, Inc. Class A (a) | 7,101,601 | 998,556 | |
Match Group, Inc. (b) | 206,831 | 8,329 | |
Snap, Inc. Class A (a)(b) | 6,452,292 | 42,004 | |
Tencent Holdings Ltd. | 1,103,800 | 44,128 | |
Twitter, Inc. (a) | 465,976 | 14,655 | |
3,661,330 | |||
Media - 0.3% | |||
Comcast Corp. Class A | 2,716,521 | 105,971 | |
Turn, Inc. (Escrow) (a)(c)(d) | 984,774 | 655 | |
106,626 | |||
Wireless Telecommunication Services - 0.4% | |||
T-Mobile U.S., Inc. (a) | 2,589,899 | 177,279 | |
TOTAL COMMUNICATION SERVICES | 5,329,372 | ||
CONSUMER DISCRETIONARY - 20.1% | |||
Auto Components - 0.0% | |||
Garrett Motion, Inc. (a)(b) | 127,964 | 1,472 | |
Automobiles - 1.5% | |||
Tesla, Inc. (a)(b) | 1,808,427 | 633,817 | |
Hotels, Restaurants & Leisure - 0.9% | |||
Chipotle Mexican Grill, Inc. (a) | 39,385 | 18,637 | |
Hyatt Hotels Corp. Class A | 230,053 | 16,405 | |
Marriott International, Inc. Class A | 118,697 | 13,654 | |
McDonald's Corp. | 384,851 | 72,548 | |
Planet Fitness, Inc. (a) | 332,941 | 18,385 | |
Shake Shack, Inc. Class A (a) | 162,238 | 9,012 | |
Starbucks Corp. | 2,177,217 | 145,264 | |
YETI Holdings, Inc. | 633,918 | 10,675 | |
Yum China Holdings, Inc. | 1,204,287 | 43,150 | |
Yum! Brands, Inc. | 119,816 | 11,049 | |
358,779 | |||
Household Durables - 0.7% | |||
iRobot Corp. (a)(b) | 1,181,074 | 112,674 | |
Roku, Inc. (a) | 3,579,213 | 145,853 | |
Roku, Inc. Class A (a)(b) | 605,178 | 24,661 | |
Sony Corp. sponsored ADR | 123,192 | 6,507 | |
289,695 | |||
Internet & Direct Marketing Retail - 9.1% | |||
Alibaba Group Holding Ltd. sponsored ADR (a) | 1,001,910 | 161,167 | |
Amazon.com, Inc. (a) | 1,650,086 | 2,788,938 | |
Ctrip.com International Ltd. ADR (a) | 472,270 | 13,625 | |
eBay, Inc. (a) | 489,582 | 14,614 | |
Etsy, Inc. (a) | 183,195 | 9,900 | |
Expedia, Inc. | 293,464 | 35,448 | |
JD.com, Inc. sponsored ADR (a) | 3,159,305 | 67,072 | |
The Booking Holdings, Inc. (a) | 96,571 | 182,701 | |
The Honest Co., Inc. (a)(c)(d) | 39,835 | 458 | |
Wayfair LLC Class A (a)(b) | 4,099,636 | 435,381 | |
Zozo, Inc. | 640,700 | 14,252 | |
3,723,556 | |||
Leisure Products - 0.1% | |||
Callaway Golf Co. | 1,871,706 | 32,062 | |
Multiline Retail - 0.4% | |||
Dollar General Corp. | 267,799 | 29,723 | |
Dollar Tree, Inc. (a) | 875,342 | 75,953 | |
Target Corp. | 664,180 | 47,130 | |
152,806 | |||
Specialty Retail - 1.6% | |||
Home Depot, Inc. | 1,878,105 | 338,660 | |
L Brands, Inc. | 132,742 | 4,395 | |
Lowe's Companies, Inc. | 1,459,509 | 137,734 | |
RH (a)(b) | 1,073,356 | 124,660 | |
TJX Companies, Inc. | 1,396,218 | 68,205 | |
673,654 | |||
Textiles, Apparel & Luxury Goods - 5.8% | |||
adidas AG | 3,196,966 | 705,037 | |
Allbirds, Inc. (c)(d) | 61,486 | 3,372 | |
Canada Goose Holdings, Inc. (a) | 1,519,270 | 102,180 | |
Kering SA | 123,575 | 53,721 | |
lululemon athletica, Inc. (a)(e) | 7,235,213 | 959,027 | |
NIKE, Inc. Class B | 2,049,785 | 153,980 | |
Skechers U.S.A., Inc. Class A (sub. vtg.) (a) | 9,047,844 | 244,292 | |
Tory Burch LLC: | |||
Class A (c)(d)(f) | 950,844 | 57,678 | |
Class B (c)(d)(f) | 324,840 | 20,662 | |
Under Armour, Inc. Class C (non-vtg.) (a)(b) | 747,344 | 16,688 | |
VF Corp. | 370,442 | 30,113 | |
2,346,750 | |||
TOTAL CONSUMER DISCRETIONARY | 8,212,591 | ||
CONSUMER STAPLES - 4.7% | |||
Beverages - 2.2% | |||
Fever-Tree Drinks PLC | 1,644,066 | 50,111 | |
Keurig Dr. Pepper, Inc. | 4,569,194 | 123,368 | |
Monster Beverage Corp. (a) | 6,218,389 | 371,113 | |
PepsiCo, Inc. | 884,470 | 107,852 | |
The Coca-Cola Co. | 5,013,941 | 252,703 | |
905,147 | |||
Food & Staples Retailing - 1.0% | |||
Costco Wholesale Corp. | 835,967 | 193,342 | |
Kroger Co. | 6,999,248 | 207,598 | |
400,940 | |||
Food Products - 0.3% | |||
Kellogg Co. | 79,997 | 5,092 | |
Lamb Weston Holdings, Inc. | 753,321 | 57,780 | |
Mondelez International, Inc. | 1,053,345 | 47,379 | |
The Hershey Co. | 179,903 | 19,483 | |
The Kraft Heinz Co. | 248,373 | 12,697 | |
142,431 | |||
Household Products - 0.2% | |||
Church & Dwight Co., Inc. | 727,958 | 48,184 | |
Colgate-Palmolive Co. | 312,361 | 19,841 | |
Kimberly-Clark Corp. | 89,222 | 10,294 | |
78,319 | |||
Personal Products - 0.4% | |||
Coty, Inc. Class A | 5,666,476 | 47,258 | |
Godrej Consumer Products Ltd. | 451,576 | 4,865 | |
Herbalife Nutrition Ltd. (a) | 1,576,401 | 90,249 | |
Unilever NV (Certificaten Van Aandelen) (Bearer) | 614,874 | 34,122 | |
176,494 | |||
Tobacco - 0.6% | |||
Altria Group, Inc. | 2,801,597 | 153,612 | |
JUUL Labs, Inc. Class A (c)(d) | 44,067 | 9,474 | |
Philip Morris International, Inc. | 842,388 | 72,892 | |
235,978 | |||
TOTAL CONSUMER STAPLES | 1,939,309 | ||
ENERGY - 1.8% | |||
Energy Equipment & Services - 0.1% | |||
Baker Hughes, a GE Co. Class A | 1,841,491 | 42,023 | |
Halliburton Co. | 494,825 | 15,552 | |
57,575 | |||
Oil, Gas & Consumable Fuels - 1.7% | |||
Anadarko Petroleum Corp. | 467,764 | 24,745 | |
Cabot Oil & Gas Corp. | 1,943,259 | 48,892 | |
Concho Resources, Inc. (a) | 409,372 | 53,358 | |
Continental Resources, Inc. (a) | 402,015 | 18,380 | |
Devon Energy Corp. | 268,650 | 7,262 | |
EOG Resources, Inc. | 1,727,427 | 178,460 | |
Hess Corp. | 521,160 | 28,085 | |
Noble Energy, Inc. | 1,232,872 | 29,268 | |
Oasis Petroleum, Inc. (a) | 1,884,753 | 13,457 | |
Occidental Petroleum Corp. | 675,457 | 47,464 | |
PDC Energy, Inc. (a) | 383,674 | 13,022 | |
Pioneer Natural Resources Co. | 587,236 | 86,764 | |
Range Resources Corp. | 1,596,508 | 23,229 | |
Reliance Industries Ltd. | 5,022,380 | 84,191 | |
Southwestern Energy Co. (a) | 607,920 | 2,930 | |
Valero Energy Corp. | 482,684 | 38,566 | |
698,073 | |||
TOTAL ENERGY | 755,648 | ||
FINANCIALS - 2.4% | |||
Banks - 0.9% | |||
Bank of America Corp. | 1,924,613 | 54,659 | |
HDFC Bank Ltd. sponsored ADR | 1,209,154 | 122,632 | |
JPMorgan Chase & Co. | 1,346,783 | 149,749 | |
Signature Bank | 68,405 | 8,436 | |
Wells Fargo & Co. | 620,691 | 33,691 | |
369,167 | |||
Capital Markets - 1.2% | |||
BlackRock, Inc. Class A | 328,643 | 140,662 | |
Charles Schwab Corp. | 6,548,255 | 293,362 | |
Edelweiss Financial Services Ltd. | 7,060,364 | 17,202 | |
T. Rowe Price Group, Inc. | 377,660 | 37,524 | |
488,750 | |||
Consumer Finance - 0.3% | |||
American Express Co. | 1,129,057 | 126,759 | |
Discover Financial Services | 130,276 | 9,289 | |
136,048 | |||
Insurance - 0.0% | |||
Hiscox Ltd. | 332,000 | 7,133 | |
TOTAL FINANCIALS | 1,001,098 | ||
HEALTH CARE - 17.4% | |||
Biotechnology - 11.5% | |||
AbbVie, Inc. | 1,259,197 | 118,705 | |
ACADIA Pharmaceuticals, Inc. (a)(e) | 7,257,318 | 138,324 | |
Agios Pharmaceuticals, Inc. (a) | 2,341,036 | 154,040 | |
Alexion Pharmaceuticals, Inc. (a) | 1,290,057 | 158,871 | |
Alkermes PLC (a)(e) | 7,989,655 | 291,143 | |
Allakos, Inc. (a) | 130,309 | 7,677 | |
Allogene Therapeutics, Inc. (b) | 831,440 | 26,007 | |
Allogene Therapeutics, Inc. | 301,764 | 8,495 | |
Alnylam Pharmaceuticals, Inc. (a)(e) | 5,072,739 | 411,703 | |
Amgen, Inc. | 1,101,874 | 229,465 | |
AnaptysBio, Inc. (a) | 530,173 | 39,540 | |
Argenx SE ADR (a) | 70,170 | 6,790 | |
Array BioPharma, Inc. (a) | 5,203,619 | 82,894 | |
aTyr Pharma, Inc. (a)(e) | 2,196,464 | 1,353 | |
BeiGene Ltd. | 1,780,053 | 19,612 | |
BeiGene Ltd. ADR (a) | 2,190,913 | 335,889 | |
Biogen, Inc. (a) | 350,238 | 116,881 | |
bluebird bio, Inc. (a) | 2,651,554 | 325,849 | |
Blueprint Medicines Corp. (a) | 369,977 | 21,226 | |
Calyxt, Inc. (a)(e) | 1,683,949 | 19,399 | |
Celgene Corp. (a) | 859,375 | 62,064 | |
Cellectis SA sponsored ADR (a) | 830,950 | 18,298 | |
Chimerix, Inc. (a) | 576,423 | 1,896 | |
Cibus Global Ltd. Series C (c)(d)(f) | 4,523,810 | 9,500 | |
Coherus BioSciences, Inc. (a) | 1,266,325 | 14,006 | |
Constellation Pharmaceuticals, Inc. | 202,297 | 1,194 | |
Constellation Pharmaceuticals, Inc. | 423,827 | 2,376 | |
Crinetics Pharmaceuticals, Inc. (a) | 208,633 | 7,290 | |
CytomX Therapeutics, Inc. (a) | 989,847 | 13,660 | |
CytomX Therapeutics, Inc. (a)(g) | 794,033 | 10,958 | |
Denali Therapeutics, Inc. (a)(b) | 641,196 | 12,292 | |
Editas Medicine, Inc. (a) | 249,825 | 7,785 | |
Evelo Biosciences, Inc. | 672,270 | 6,669 | |
Evelo Biosciences, Inc. | 909,286 | 9,020 | |
Exact Sciences Corp. (a) | 271,181 | 21,147 | |
Exelixis, Inc. (a) | 9,616,746 | 195,316 | |
Fate Therapeutics, Inc. (a) | 2,783,904 | 42,761 | |
Five Prime Therapeutics, Inc. (a) | 1,426,948 | 18,322 | |
Global Blood Therapeutics, Inc. (a) | 1,323,733 | 41,751 | |
Heron Therapeutics, Inc. (a) | 694,781 | 19,961 | |
Homology Medicines, Inc. (a)(b) | 382,900 | 8,420 | |
Homology Medicines, Inc. (g) | 712,521 | 15,668 | |
Intellia Therapeutics, Inc. (a)(b) | 762,855 | 13,663 | |
Intercept Pharmaceuticals, Inc. (a) | 134,086 | 14,871 | |
Ionis Pharmaceuticals, Inc. (a)(e) | 7,985,431 | 465,471 | |
Ironwood Pharmaceuticals, Inc. Class A (a) | 4,546,765 | 62,836 | |
Jounce Therapeutics, Inc. (a) | 146,622 | 633 | |
Kiniksa Pharmaceuticals Ltd. (g) | 304,279 | 6,153 | |
Lexicon Pharmaceuticals, Inc. (a)(b)(e) | 6,613,917 | 53,573 | |
Macrogenics, Inc. (a) | 198,438 | 3,415 | |
Momenta Pharmaceuticals, Inc. (a)(e) | 5,076,752 | 60,109 | |
Neon Therapeutics, Inc. | 17,627 | 109 | |
Neon Therapeutics, Inc. | 889,854 | 5,233 | |
Principia Biopharma, Inc. | 186,301 | 5,190 | |
Protagonist Therapeutics, Inc. (a) | 818,818 | 5,298 | |
Prothena Corp. PLC (a) | 1,745,414 | 20,962 | |
Regeneron Pharmaceuticals, Inc. (a) | 610,536 | 223,242 | |
Rigel Pharmaceuticals, Inc. (a)(e) | 11,402,836 | 32,270 | |
Rubius Therapeutics, Inc. | 1,166,576 | 24,941 | |
Rubius Therapeutics, Inc. | 1,865,277 | 37,886 | |
Sage Therapeutics, Inc. (a) | 2,149,704 | 247,839 | |
Sarepta Therapeutics, Inc. (a) | 160,097 | 20,728 | |
Scholar Rock Holding Corp. | 233,823 | 5,696 | |
Scholar Rock Holding Corp. (g) | 470,781 | 11,468 | |
Seres Therapeutics, Inc. (a)(b)(e) | 1,537,051 | 12,834 | |
Seres Therapeutics, Inc. (a)(e)(g) | 572,827 | 4,783 | |
Sienna Biopharmaceuticals, Inc. (a)(e) | 839,110 | 8,483 | |
Sienna Biopharmaceuticals, Inc. (e)(g) | 564,045 | 5,702 | |
Spark Therapeutics, Inc. (a) | 709,143 | 29,876 | |
Syros Pharmaceuticals, Inc. (a)(e) | 1,221,889 | 8,321 | |
Syros Pharmaceuticals, Inc. (a)(e)(g) | 938,007 | 6,388 | |
Translate Bio, Inc. (e) | 420,012 | 3,037 | |
Translate Bio, Inc. (e) | 1,993,527 | 13,693 | |
Ultragenyx Pharmaceutical, Inc. (a) | 659,920 | 35,418 | |
uniQure B.V. (a) | 882,638 | 25,844 | |
UNITY Biotechnology, Inc. (b) | 681,325 | 8,762 | |
UNITY Biotechnology, Inc. (g) | 1,193,604 | 15,350 | |
Vertex Pharmaceuticals, Inc. (a) | 413,384 | 74,736 | |
Wuxi Biologics (Cayman), Inc. (a) | 4,024,500 | 33,743 | |
Xencor, Inc. (a) | 1,249,765 | 52,503 | |
Zai Lab Ltd. ADR (a) | 1,833,135 | 36,149 | |
4,751,425 | |||
Health Care Equipment & Supplies - 2.8% | |||
Abbott Laboratories | 741,251 | 54,890 | |
Align Technology, Inc. (a) | 23,288 | 5,354 | |
Boston Scientific Corp. (a) | 2,072,354 | 78,066 | |
Danaher Corp. | 1,296,432 | 142,011 | |
DexCom, Inc. (a) | 925,912 | 119,989 | |
Genmark Diagnostics, Inc. (a) | 1,457,915 | 7,596 | |
Insulet Corp. (a) | 1,939,586 | 162,789 | |
Intuitive Surgical, Inc. (a) | 480,584 | 255,128 | |
Novocure Ltd. (a) | 3,685,877 | 126,499 | |
Novocure Ltd. (a)(g) | 571,461 | 19,613 | |
Penumbra, Inc. (a) | 1,088,637 | 151,560 | |
Presbia PLC (a)(e) | 1,258,087 | 888 | |
Wright Medical Group NV (a) | 375,185 | 10,490 | |
1,134,873 | |||
Health Care Providers & Services - 0.9% | |||
G1 Therapeutics, Inc. (a) | 343,036 | 13,114 | |
Humana, Inc. | 61,326 | 20,205 | |
Laboratory Corp. of America Holdings (a) | 112,995 | 16,457 | |
OptiNose, Inc. (a)(e) | 1,328,318 | 10,454 | |
OptiNose, Inc. (e)(g) | 992,571 | 7,812 | |
UnitedHealth Group, Inc. | 1,111,603 | 312,761 | |
380,803 | |||
Health Care Technology - 0.1% | |||
Castlight Health, Inc. Class B (a) | 2,101,679 | 5,485 | |
Teladoc Health, Inc. (a) | 374,353 | 23,378 | |
28,863 | |||
Life Sciences Tools & Services - 0.1% | |||
Illumina, Inc. (a) | 48,821 | 16,477 | |
Thermo Fisher Scientific, Inc. | 147,563 | 36,824 | |
53,301 | |||
Pharmaceuticals - 2.0% | |||
Adimab LLC (c)(d)(f) | 3,162,765 | 128,503 | |
Akcea Therapeutics, Inc. (a)(b)(e) | 5,249,296 | 177,899 | |
Bristol-Myers Squibb Co. | 991,987 | 53,032 | |
Intra-Cellular Therapies, Inc. (a)(e) | 3,772,282 | 54,509 | |
Jiangsu Hengrui Medicine Co. Ltd. (A Shares) | 178,600 | 1,679 | |
Kolltan Pharmaceuticals, Inc. rights (a)(d) | 7,940,644 | 0 | |
MyoKardia, Inc. (a) | 1,613,248 | 100,134 | |
Nektar Therapeutics (a) | 5,175,334 | 209,032 | |
Rhythm Pharmaceuticals, Inc. (a) | 457,608 | 13,513 | |
RPI International Holdings LP (a)(c)(d) | 130,847 | 20,080 | |
Stemcentrx, Inc. rights 12/31/21 (a)(d) | 2,065,715 | 3,780 | |
The Medicines Company (a) | 1,954,997 | 43,264 | |
Theravance Biopharma, Inc. (a) | 1,102,526 | 30,441 | |
835,866 | |||
TOTAL HEALTH CARE | 7,185,131 | ||
INDUSTRIALS - 5.1% | |||
Aerospace & Defense - 1.2% | |||
Lockheed Martin Corp. | 418,907 | 125,852 | |
Northrop Grumman Corp. | 55,202 | 14,346 | |
Space Exploration Technologies Corp. Class A (a)(c)(d) | 418,210 | 70,677 | |
The Boeing Co. | 682,805 | 236,769 | |
United Technologies Corp. | 423,395 | 51,586 | |
499,230 | |||
Air Freight & Logistics - 0.3% | |||
FedEx Corp. | 82,913 | 18,987 | |
United Parcel Service, Inc. Class B | 883,167 | 101,820 | |
120,807 | |||
Airlines - 1.2% | |||
Azul SA sponsored ADR (a) | 441,863 | 11,926 | |
Delta Air Lines, Inc. | 736,656 | 44,722 | |
JetBlue Airways Corp. (a) | 4,281,080 | 83,567 | |
Ryanair Holdings PLC sponsored ADR (a) | 447,741 | 36,863 | |
Southwest Airlines Co. | 2,007,140 | 109,610 | |
Spirit Airlines, Inc. (a) | 352,944 | 22,631 | |
United Continental Holdings, Inc. (a) | 541,195 | 52,334 | |
Wheels Up Partners Holdings LLC: | |||
Series B (a)(c)(d)(f) | 6,703,518 | 10,323 | |
Series C (a)(c)(d)(f) | 3,466,281 | 5,338 | |
Wizz Air Holdings PLC (a)(g) | 2,734,384 | 104,389 | |
481,703 | |||
Building Products - 0.1% | |||
Resideo Technologies, Inc. (a) | 1,889,819 | 38,987 | |
Construction & Engineering - 0.0% | |||
Fluor Corp. | 429,034 | 17,560 | |
Electrical Equipment - 0.3% | |||
AMETEK, Inc. | 23,375 | 1,716 | |
Eaton Corp. PLC | 277,011 | 21,313 | |
Emerson Electric Co. | 470,281 | 31,753 | |
Fortive Corp. | 802,708 | 61,062 | |
115,844 | |||
Industrial Conglomerates - 0.7% | |||
3M Co. | 387,264 | 80,520 | |
Honeywell International, Inc. | 1,362,427 | 199,936 | |
280,456 | |||
Machinery - 0.9% | |||
Aumann AG (g) | 87,086 | 3,880 | |
Caterpillar, Inc. | 872,879 | 118,423 | |
Deere & Co. | 368,687 | 57,102 | |
Illinois Tool Works, Inc. | 270,585 | 37,625 | |
Ingersoll-Rand PLC | 126,448 | 13,090 | |
Rational AG | 18,321 | 10,422 | |
Wabtec Corp. (b) | 168,973 | 15,985 | |
WashTec AG | 109,322 | 8,032 | |
Xylem, Inc. | 1,181,269 | 86,209 | |
350,768 | |||
Professional Services - 0.0% | |||
CoStar Group, Inc. (a) | 25,746 | 9,510 | |
Road & Rail - 0.4% | |||
Union Pacific Corp. | 1,027,287 | 157,976 | |
TOTAL INDUSTRIALS | 2,072,841 | ||
INFORMATION TECHNOLOGY - 32.2% | |||
Communications Equipment - 0.5% | |||
Arista Networks, Inc. (a) | 143,786 | 34,290 | |
Infinera Corp. (a)(e) | 13,010,495 | 56,075 | |
NETGEAR, Inc. (a)(e) | 2,361,124 | 130,806 | |
221,171 | |||
Electronic Equipment & Components - 0.3% | |||
Arlo Technologies, Inc. (b) | 3,576,054 | 43,020 | |
Cognex Corp. | 50,560 | 2,226 | |
IPG Photonics Corp. (a) | 16,893 | 2,401 | |
TE Connectivity Ltd. | 103,705 | 7,978 | |
Trimble, Inc. (a) | 1,641,893 | 62,441 | |
118,066 | |||
Internet Software & Services - 0.1% | |||
CarGurus, Inc. Class A (a) | 51,226 | 1,993 | |
Farfetch Ltd. Class A (b) | 1,020,219 | 23,210 | |
25,203 | |||
IT Services - 5.6% | |||
Actua Corp. (d)(e) | 1,773,597 | 1,135 | |
Adyen BV | 10,589 | 5,479 | |
Cognizant Technology Solutions Corp. Class A | 883,703 | 62,946 | |
Elastic NV | 41,434 | 2,960 | |
IBM Corp. | 91,027 | 11,312 | |
MasterCard, Inc. Class A | 2,119,172 | 426,102 | |
MongoDB, Inc. (a) | 956,702 | 79,311 | |
MongoDB, Inc. Class A (a) | 42,136 | 3,493 | |
Okta, Inc. (a) | 184,840 | 11,765 | |
PayPal Holdings, Inc. (a) | 4,983,730 | 427,654 | |
Shopify, Inc. Class A (a) | 3,261,996 | 496,524 | |
Square, Inc. (a) | 2,655,338 | 185,449 | |
Visa, Inc. Class A | 3,767,259 | 533,858 | |
Wix.com Ltd. (a) | 500,235 | 47,112 | |
2,295,100 | |||
Semiconductors & Semiconductor Equipment - 7.1% | |||
Advanced Micro Devices, Inc. (a) | 6,290,635 | 133,991 | |
Applied Materials, Inc. | 313,396 | 11,683 | |
ASML Holding NV | 274,611 | 47,055 | |
Broadcom, Inc. | 216,770 | 51,463 | |
Cirrus Logic, Inc. (a) | 805,884 | 30,172 | |
Cree, Inc. (a) | 1,141,440 | 50,383 | |
Intel Corp. | 74,765 | 3,687 | |
KLA-Tencor Corp. | 214,708 | 21,162 | |
Marvell Technology Group Ltd. | 697,437 | 11,236 | |
Micron Technology, Inc. (a) | 354,801 | 13,681 | |
NVIDIA Corp. | 12,498,261 | 2,042,591 | |
Renesas Electronics Corp. (a) | 887,700 | 4,184 | |
Silicon Laboratories, Inc. (a)(e) | 3,165,711 | 279,754 | |
Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR | 1,119,730 | 42,091 | |
Texas Instruments, Inc. | 1,495,286 | 149,304 | |
Xilinx, Inc. | 93,681 | 8,664 | |
2,901,101 | |||
Software - 12.9% | |||
2U, Inc. (a) | 721,615 | 42,135 | |
Adobe, Inc. (a) | 1,587,800 | 398,363 | |
Aspen Technology, Inc. (a) | 315,075 | 27,191 | |
Atlassian Corp. PLC (a) | 426,540 | 36,657 | |
Autodesk, Inc. (a) | 1,381,430 | 199,617 | |
Avalara, Inc. (b) | 60,749 | 1,943 | |
Black Knight, Inc. (a) | 488,839 | 22,164 | |
Cadence Design Systems, Inc. (a) | 189,801 | 8,549 | |
DocuSign, Inc. | 61,168 | 2,554 | |
Domo, Inc. | 199,393 | 3,023 | |
Dropbox, Inc. Class A (a) | 79,018 | 1,848 | |
HubSpot, Inc. (a) | 1,660,943 | 230,921 | |
Intuit, Inc. | 507,677 | 108,912 | |
Microsoft Corp. | 12,173,226 | 1,349,889 | |
New Relic, Inc. (a) | 225,562 | 19,667 | |
Nutanix, Inc.: | |||
Class A (a) | 6,871,069 | 307,205 | |
Class B (a)(g) | 1,151,309 | 51,475 | |
Oracle Corp. | 944,533 | 46,055 | |
Parametric Technology Corp. (a) | 1,854,262 | 160,375 | |
Paylocity Holding Corp. (a) | 119,448 | 8,013 | |
Pluralsight, Inc. (b) | 235,318 | 5,669 | |
Proofpoint, Inc. (a) | 438,185 | 42,508 | |
Red Hat, Inc. (a) | 3,299,258 | 589,116 | |
RingCentral, Inc. (a) | 55,637 | 4,612 | |
Salesforce.com, Inc. (a) | 9,890,562 | 1,411,977 | |
Tenable Holdings, Inc. | 79,414 | 2,262 | |
Zendesk, Inc. (a) | 1,996,485 | 118,651 | |
Zscaler, Inc. (a) | 2,773,584 | 108,891 | |
5,310,242 | |||
Technology Hardware, Storage & Peripherals - 5.7% | |||
Apple, Inc. | 12,020,052 | 2,146,541 | |
NetApp, Inc. | 328,998 | 22,000 | |
Pure Storage, Inc. Class A (a) | 7,562,533 | 143,007 | |
Samsung Electronics Co. Ltd. | 979,935 | 36,607 | |
2,348,155 | |||
TOTAL INFORMATION TECHNOLOGY | 13,219,038 | ||
MATERIALS - 0.4% | |||
Chemicals - 0.4% | |||
CF Industries Holdings, Inc. | 1,326,769 | 55,976 | |
DowDuPont, Inc. | 787,614 | 45,563 | |
LG Chemical Ltd. | 110,617 | 34,114 | |
The Mosaic Co. | 250,646 | 9,023 | |
144,676 | |||
Metals & Mining - 0.0% | |||
Barrick Gold Corp. | 1,586,200 | 20,212 | |
TOTAL MATERIALS | 164,888 | ||
REAL ESTATE - 0.3% | |||
Equity Real Estate Investment Trusts (REITs) - 0.3% | |||
American Tower Corp. | 674,351 | 110,924 | |
Ant International Co. Ltd. Class C (c)(d) | 1,658,265 | 9,303 | |
120,227 | |||
TOTAL COMMON STOCKS | |||
(Cost $18,897,695) | 40,000,143 | ||
Preferred Stocks - 2.4% | |||
Convertible Preferred Stocks - 2.3% | |||
COMMUNICATION SERVICES - 0.6% | |||
Interactive Media & Services - 0.6% | |||
Uber Technologies, Inc.: | |||
Series D, 8.00% (a)(c)(d) | 4,770,180 | 232,642 | |
Series E, 8.00% (a)(c)(d) | 209,216 | 10,203 | |
242,845 | |||
Wireless Telecommunication Services - 0.0% | |||
Altiostar Networks, Inc. Series A1 (a)(c)(d) | 699,106 | 895 | |
TOTAL COMMUNICATION SERVICES | 243,740 | ||
CONSUMER DISCRETIONARY - 0.2% | |||
Hotels, Restaurants & Leisure - 0.1% | |||
MOD Super Fast Pizza Holdings LLC Series 3 Preferred (a)(c)(d)(f) | 61,485 | 9,796 | |
Topgolf International, Inc. Series F (c)(d) | 819,532 | 10,719 | |
20,515 | |||
Internet & Direct Marketing Retail - 0.0% | |||
Jet.Com, Inc. Series B1 (Escrow) (a)(c)(d) | 7,578,338 | 344 | |
The Honest Co., Inc.: | |||
Series C (a)(c)(d) | 92,950 | 1,822 | |
Series D (a)(c)(d) | 69,363 | 1,360 | |
3,526 | |||
Leisure Products - 0.1% | |||
Peloton Interactive, Inc. Series E (a)(c)(d) | 2,549,928 | 36,821 | |
Textiles, Apparel & Luxury Goods - 0.0% | |||
Allbirds, Inc.: | |||
Series A (c)(d) | 24,267 | 1,331 | |
Series B (c)(d) | 4,263 | 234 | |
Series C (c)(d) | 40,746 | 2,234 | |
ORIC Pharmaceuticals, Inc. Series C (c)(d) | 1,416,666 | 4,250 | |
8,049 | |||
TOTAL CONSUMER DISCRETIONARY | 68,911 | ||
CONSUMER STAPLES - 0.0% | |||
Food & Staples Retailing - 0.0% | |||
Sweetgreen, Inc. Series H (c)(d) | 705,259 | 9,197 | |
Food Products - 0.0% | |||
Agbiome LLC Series C (c)(d) | 1,060,308 | 6,716 | |
Tobacco - 0.0% | |||
JUUL Labs, Inc. Series E (c)(d) | 22,033 | 4,737 | |
TOTAL CONSUMER STAPLES | 20,650 | ||
FINANCIALS - 0.0% | |||
Insurance - 0.0% | |||
Clover Health Series D (a)(c)(d) | 863,631 | 8,099 | |
HEALTH CARE - 1.0% | |||
Biotechnology - 0.8% | |||
10X Genomics, Inc.: | |||
Series C (a)(c)(d) | 2,505,940 | 31,901 | |
Series D (c)(d) | 364,100 | 4,635 | |
23andMe, Inc. Series F (a)(c)(d) | 590,383 | 10,243 | |
Axcella Health, Inc.: | |||
Series C (a)(c)(d) | 536,592 | 5,994 | |
Series E (c)(d) | 366,851 | 4,098 | |
BioNTech AG Series A (c)(d) | 114,025 | 32,770 | |
Fulcrum Therapeutics, Inc. Series B 0.00% (c)(d) | 2,308,437 | 4,617 | |
Generation Bio Series B (c)(d) | 831,800 | 7,607 | |
Immunocore Ltd. Series A (a)(c)(d) | 67,323 | 8,698 | |
Intarcia Therapeutics, Inc.: | |||
Series CC (a)(c)(d) | 1,051,411 | 45,242 | |
Series DD (a)(c)(d) | 1,543,687 | 66,425 | |
Kaleido Biosciences, Inc. Series C (c)(d) | 729,738 | 7,290 | |
Moderna, Inc.: | |||
Series B (a)(c)(d) | 111,393 | 2,306 | |
Series C (a)(c)(d) | 254,542 | 5,269 | |
Series D (a)(c)(d) | 2,150,564 | 44,517 | |
Series E (a)(c)(d) | 2,592,279 | 53,660 | |
Series F (a)(c)(d) | 64,317 | 1,331 | |
336,603 | |||
Health Care Equipment & Supplies - 0.0% | |||
Shockwave Medical, Inc. Series C (a)(c)(d) | 5,413,080 | 6,101 | |
Health Care Providers & Services - 0.1% | |||
Mulberry Health, Inc. Series A8 (a)(c)(d) | 2,790,742 | 19,942 | |
Health Care Technology - 0.0% | |||
Codiak Biosciences, Inc.: | |||
Series A 8.00% (a)(c)(d) | 589,863 | 2,141 | |
Series B 8.00% (a)(c)(d) | 1,917,058 | 6,959 | |
Series C, 8.00% (c)(d) | 2,688,186 | 9,758 | |
18,858 | |||
Pharmaceuticals - 0.1% | |||
Castle Creek Pharmaceutical Holdings, Inc. Series B (c)(d) | 16,803 | 6,920 | |
Harmony Biosciences II, Inc. Series A (a)(c)(d) | 10,934,380 | 10,934 | |
Nohla Therapeutics, Inc. Series B (c)(d) | 9,124,200 | 4,161 | |
22,015 | |||
TOTAL HEALTH CARE | 403,519 | ||
INDUSTRIALS - 0.1% | |||
Aerospace & Defense - 0.1% | |||
Space Exploration Technologies Corp. Series G (a)(c)(d) | 216,276 | 36,551 | |
Professional Services - 0.0% | |||
YourPeople, Inc. Series C (a)(c)(d) | 5,833,137 | 25,024 | |
TOTAL INDUSTRIALS | 61,575 | ||
INFORMATION TECHNOLOGY - 0.4% | |||
Internet Software & Services - 0.2% | |||
Lyft, Inc. Series I (c)(d) | 772,439 | 36,578 | |
Reddit, Inc. Series B (a)(c)(d) | 384,303 | 3,989 | |
Starry, Inc.: | |||
Series B (a)(c)(d) | 9,869,159 | 9,099 | |
Series C (c)(d) | 5,234,614 | 4,826 | |
54,492 | |||
IT Services - 0.0% | |||
AppNexus, Inc. Series E (Escrow) (a)(c)(d) | 923,523 | 891 | |
Software - 0.2% | |||
Cloudflare, Inc. Series D, 8.00% (a)(c)(d) | 2,229,826 | 24,528 | |
Dataminr, Inc. Series D (a)(c)(d) | 1,773,901 | 35,301 | |
Outset Medical, Inc.: | |||
Series C (a)(c)(d) | 1,244,716 | 3,871 | |
Series D (c)(d) | 1,525,901 | 4,746 | |
Taboola.Com Ltd. Series E (a)(c)(d) | 1,337,420 | 23,525 | |
91,971 | |||
TOTAL INFORMATION TECHNOLOGY | 147,354 | ||
TOTAL CONVERTIBLE PREFERRED STOCKS | 953,848 | ||
Nonconvertible Preferred Stocks - 0.1% | |||
CONSUMER DISCRETIONARY - 0.0% | |||
Textiles, Apparel & Luxury Goods - 0.0% | |||
Allbirds, Inc. (c)(d) | 13,038 | 715 | |
FINANCIALS - 0.1% | |||
Banks - 0.1% | |||
Itau Unibanco Holding SA | 2,670,300 | 24,873 | |
HEALTH CARE - 0.0% | |||
Biotechnology - 0.0% | |||
Yumanity Holdings LLC: | |||
Class A (a)(c)(d) | 464,607 | 3,062 | |
Class B (c)(d) | 336,308 | 2,216 | |
5,278 | |||
Pharmaceuticals - 0.0% | |||
Castle Creek Pharmaceutical Holdings, Inc. Series A4 (c)(d) | 46,864 | 19,301 | |
TOTAL HEALTH CARE | 24,579 | ||
TOTAL NONCONVERTIBLE PREFERRED STOCKS | 50,167 | ||
TOTAL PREFERRED STOCKS | |||
(Cost $690,291) | 1,004,015 | ||
Money Market Funds - 1.4% | |||
Fidelity Cash Central Fund, 2.27% (h) | 49,905,281 | 49,915 | |
Fidelity Securities Lending Cash Central Fund 2.27% (h)(i) | 510,657,350 | 510,708 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $560,614) | 560,623 | ||
TOTAL INVESTMENT IN SECURITIES - 101.2% | |||
(Cost $20,148,600) | 41,564,781 | ||
NET OTHER ASSETS (LIABILITIES) - (1.2)% | (481,640) | ||
NET ASSETS - 100% | $41,083,141 |
Values shown as $0 in the Schedule of Investments may reflect amounts less than $500.
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $1,325,167,000 or 3.2% of net assets.
(d) Level 3 security
(e) Affiliated company
(f) Investment is owned by a wholly-owned subsidiary (Subsidiary) that is treated as a corporation for U.S. tax purposes.
(g) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $263,639,000 or 0.6% of net assets.
(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, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(i) 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) |
10X Genomics, Inc. Series C | 2/23/16 - 4/3/17 | $11,222 |
10X Genomics, Inc. Series D | 4/10/18 | $3,484 |
23andMe, Inc. Series F | 8/31/17 | $8,197 |
Adimab LLC | 9/17/14 - 6/5/15 | $47,869 |
Agbiome LLC Series C | 6/29/18 | $6,716 |
Allbirds, Inc. | 10/9/18 | $3,372 |
Allbirds, Inc. | 10/9/18 | $715 |
Allbirds, Inc. Series A | 10/9/18 | $1,331 |
Allbirds, Inc. Series B | 10/9/18 | $234 |
Allbirds, Inc. Series C | 10/9/18 | $2,234 |
Altiostar Networks, Inc. Series A1 | 1/10/17 | $3,216 |
Ant International Co. Ltd. Class C | 5/16/18 | $9,303 |
AppNexus, Inc. Series E (Escrow) | 8/1/14 | $1,665 |
Axcella Health, Inc. Series C | 8/11/17 | $5,409 |
Axcella Health, Inc. Series E | 11/30/18 | $4,098 |
BioNTech AG Series A | 12/29/17 | $24,972 |
Castle Creek Pharmaceutical Holdings, Inc. Series A4 | 9/29/16 | $15,506 |
Castle Creek Pharmaceutical Holdings, Inc. Series B | 10/9/18 | $6,920 |
Cibus Global Ltd. Series C | 2/16/18 | $9,500 |
Cloudflare, Inc. Series D, 8.00% | 11/5/14 - 9/10/18 | $17,559 |
Clover Health Series D | 6/7/17 | $8,099 |
Codiak Biosciences, Inc. Series A 8.00% | 11/12/15 | $590 |
Codiak Biosciences, Inc. Series B 8.00% | 11/12/15 | $5,751 |
Codiak Biosciences, Inc. Series C, 8.00% | 11/17/17 | $10,182 |
Dataminr, Inc. Series D | 2/18/15 - 3/6/15 | $22,617 |
Fulcrum Therapeutics, Inc. Series B 0.00% | 8/24/18 | $4,617 |
Generation Bio Series B | 2/21/18 | $7,607 |
Harmony Biosciences II, Inc. Series A | 9/22/17 | $10,934 |
Immunocore Ltd. Series A | 7/27/15 | $12,669 |
Intarcia Therapeutics, Inc. Series CC | 11/14/12 | $14,331 |
Intarcia Therapeutics, Inc. Series DD | 3/17/14 | $50,000 |
Jet.Com, Inc. Series B1 (Escrow) | 3/19/18 | $0 |
JUUL Labs, Inc. Class A | 7/6/18 | $7,899 |
JUUL Labs, Inc. Series E | 7/6/18 | $3,949 |
Kaleido Biosciences, Inc. Series C | 3/16/18 | $7,290 |
Lyft, Inc. Series I | 6/27/18 | $36,578 |
MOD Super Fast Pizza Holdings LLC Series 3 Preferred | 11/3/16 - 12/14/17 | $8,439 |
Moderna, Inc. Series B | 4/13/17 | $1,408 |
Moderna, Inc. Series C | 4/13/17 | $3,224 |
Moderna, Inc. Series D | 11/6/13 | $20,615 |
Moderna, Inc. Series E | 12/18/14 | $24,850 |
Moderna, Inc. Series F | 8/10/16 | $617 |
Mulberry Health, Inc. Series A8 | 1/20/16 | $18,851 |
Nohla Therapeutics, Inc. Series B | 5/1/18 | $4,161 |
ORIC Pharmaceuticals, Inc. Series C | 2/6/18 | $4,250 |
Outset Medical, Inc. Series C | 4/19/17 | $3,226 |
Outset Medical, Inc. Series D | 8/20/18 | $4,746 |
Peloton Interactive, Inc. Series E | 3/31/17 | $13,809 |
Reddit, Inc. Series B | 7/26/17 | $5,456 |
RPI International Holdings LP | 5/21/15 - 3/23/16 | $16,269 |
Shockwave Medical, Inc. Series C | 9/27/17 | $5,467 |
Space Exploration Technologies Corp. Class A | 10/16/15 - 4/6/17 | $38,201 |
Space Exploration Technologies Corp. Series G | 1/20/15 | $16,753 |
Starry, Inc. Series B | 12/1/16 | $5,339 |
Starry, Inc. Series C | 12/8/17 | $4,826 |
Sweetgreen, Inc. Series H | 11/9/18 | $9,197 |
Taboola.Com Ltd. Series E | 12/22/14 | $13,943 |
The Honest Co., Inc. | 8/21/14 | $1,078 |
The Honest Co., Inc. Series C | 8/21/14 | $2,515 |
The Honest Co., Inc. Series D | 8/3/15 | $3,174 |
Topgolf International, Inc. Series F | 11/10/17 | $11,337 |
Tory Burch LLC Class A | 5/14/15 | 67,653 |
Tory Burch LLC Class B | 12/31/12 | $17,505 |
Turn, Inc. (Escrow) | 4/11/17 | $591 |
Uber Technologies, Inc. Series D, 8.00% | 6/6/14 | $74,000 |
Uber Technologies, Inc. Series E, 8.00% | 12/5/14 | $6,971 |
Wheels Up Partners Holdings LLC Series B | 9/18/15 | $19,040 |
Wheels Up Partners Holdings LLC Series C | 6/22/17 | 10,815 |
YourPeople, Inc. Series C | 5/1/15 | $86,920 |
Yumanity Holdings LLC Class A | 2/8/16 | $3,140 |
Yumanity Holdings LLC Class B | 6/19/18 | $2,815 |
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 | $1,460 |
Fidelity Securities Lending Cash Central Fund | 11,925 |
Total | $13,385 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations if applicable.
Other Affiliated Issuers
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows:
Affiliate (Amounts in thousands) | Value, beginning of period | Purchases | Sales Proceeds(a) | Dividend Income | Realized Gain (loss) | Change in Unrealized appreciation (depreciation) | Value, end of period |
ACADIA Pharmaceuticals, Inc. | $231,213 | $9,787 | $25,611 | $-- | $(2,998) | $(74,067) | $138,324 |
Actua Corp. | 36,209 | -- | 942 | -- | (31,594) | (2,538)�� | 1,135 |
Akcea Therapeutics, Inc. | 70,889 | 43,569 | 9,902 | -- | 3,571 | 69,772 | 177,899 |
Alkermes PLC | 485,912 | 28,513 | 75,067 | -- | (19,962) | (128,253) | 291,143 |
Alnylam Pharmaceuticals, Inc. | 668,331 | 40,035 | 26,762 | -- | 17,019 | (286,920) | 411,703 |
aTyr Pharma, Inc. | 5,730 | -- | 19,001 | -- | -- | 18,954 | -- |
aTyr Pharma, Inc. | 3,031 | 27 | 109 | -- | (166) | (26,114) | 1,353 |
Avexis, Inc. | 162,779 | 14,222 | 387,476 | -- | 250,138 | (39,663) | -- |
bluebird bio, Inc. | 439,342 | 43,772 | 24,702 | -- | 17,955 | (150,517) | -- |
Calyxt, Inc. | 28,618 | 3,870 | 1,275 | -- | 725 | (12,539) | 19,399 |
Exelixis, Inc. | 410,001 | -- | 117,381 | -- | 51,970 | (149,274) | -- |
Infinera Corp. | 81,330 | 16,708 | 6,505 | -- | (9,603) | (25,855) | 56,075 |
Intra-Cellular Therapies, Inc. | 59,705 | 4,049 | 5,367 | -- | (2,174) | (1,704) | 54,509 |
Ionis Pharmaceuticals, Inc. | 417,706 | 38,526 | 18,768 | -- | 10,138 | 17,869 | 465,471 |
Lexicon Pharmaceuticals, Inc. | 71,027 | 1,381 | 4,079 | -- | (1,275) | (13,481) | 53,573 |
lululemon athletica, Inc. | 521,918 | 37,754 | 108,321 | -- | 50,989 | 456,687 | 959,027 |
Momenta Pharmaceuticals, Inc. | 70,799 | 3,610 | 4,063 | -- | 1,058 | (11,295) | 60,109 |
NETGEAR, Inc. | -- | 147,999 | 4,556 | -- | 576 | (13,213) | 130,806 |
OptiNose, Inc. | 14,894 | 9,211 | 792 | -- | 126 | (12,985) | 10,454 |
OptiNose, Inc. | 17,053 | -- | -- | -- | -- | (9,241) | 7,812 |
Presbia PLC | 3,510 | 10 | 152 | -- | (13) | (2,467) | 888 |
Prothena Corp. PLC | 100,105 | 274 | 8,612 | -- | (11,303) | (59,503) | -- |
Regulus Therapeutics, Inc. | 4,872 | 23 | 1,611 | -- | (33,983) | 30,699 | -- |
Rigel Pharmaceuticals, Inc. | 44,595 | 5,044 | 2,128 | -- | (443) | (14,798) | 32,270 |
Seres Therapeutics, Inc. | 12,125 | 3,348 | 488 | -- | 43 | (2,194) | 12,834 |
Seres Therapeutics, Inc. | 6,015 | -- | -- | -- | -- | (1,232) | 4,783 |
Sienna Biopharmaceuticals, Inc. | 16,690 | 649 | 576 | -- | 55 | (8,335) | 8,483 |
Sienna Biopharmaceuticals, Inc. | 10,803 | -- | -- | -- | -- | (5,101) | 5,702 |
Silicon Laboratories, Inc. | 298,944 | 7,915 | 18,435 | -- | 6,746 | (15,416) | 279,754 |
Syros Pharmaceuticals, Inc. | 10,854 | 5,650 | 477 | -- | 14 | (7,720) | 8,321 |
Syros Pharmaceuticals, Inc. | 13,929 | -- | -- | -- | -- | (7,541) | 6,388 |
Translate Bio, Inc. | -- | 5,454 | 61 | -- | -- | (2,356) | 3,037 |
Translate Bio, Inc. | -- | 17,962 | -- | -- | -- | (4,269) | 13,693 |
Total | $4,318,929 | $489,362 | $873,219 | $-- | $297,609 | $(494,610) | $3,214,945 |
(a) Includes the value of securities delivered through in-kind transactions, if applicable.
Investment Valuation
The following is a summary of the inputs used, as of November 30, 2018, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
(Amounts in thousands) | ||||
Investments in Securities: | ||||
Equities: | ||||
Communication Services | $5,573,112 | $5,251,164 | $77,553 | $244,395 |
Consumer Discretionary | 8,282,217 | 8,130,421 | -- | 151,796 |
Consumer Staples | 1,959,959 | 1,895,713 | 34,122 | 30,124 |
Energy | 755,648 | 755,648 | -- | -- |
Financials | 1,034,070 | 1,025,971 | -- | 8,099 |
Health Care | 7,613,229 | 6,955,585 | 67,683 | 589,961 |
Industrials | 2,134,416 | 1,986,503 | -- | 147,913 |
Information Technology | 13,366,392 | 13,214,880 | 3,023 | 148,489 |
Materials | 164,888 | 164,888 | -- | -- |
Real Estate | 120,227 | 110,924 | -- | 9,303 |
Money Market Funds | 560,623 | 560,623 | -- | -- |
Total Investments in Securities: | $41,564,781 | $40,052,320 | $182,381 | $1,330,080 |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value:
(Amounts in thousands) | |
Investments in Securities: | |
Equities - Health Care | |
Beginning Balance | $489,611 |
Net Realized Gain (Loss) on Investment Securities | -- |
Net Unrealized Gain (Loss) on Investment Securities | 33,500 |
Cost of Purchases | 100,317 |
Proceeds of Sales | (33,467) |
Amortization/Accretion | -- |
Transfers into Level 3 | -- |
Transfers out of Level 3 | -- |
Ending Balance | $589,961 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at November 30, 2018 | $43,136 |
Other Investments in Securities | |
Beginning Balance | $618,926 |
Net Realized Gain (Loss) on Investment Securities | 6,437 |
Net Unrealized Gain (Loss) on Investment Securities | 89,352 |
Cost of Purchases | 106,569 |
Proceeds of Sales | (117,374) |
Amortization/Accretion | -- |
Transfers into Level 3 | 36,209 |
Transfers out of Level 3 | -- |
Ending Balance | $740,119 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at November 30, 2018 | $97,660 |
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, and proceeds of sales includes securities delivered through in-kind transactions. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliations are included in Net Gain (Loss) on the Fund's Statement of Operations.
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | November 30, 2018 | |
Assets | ||
Investment in securities, at value (including securities loaned of $506,840) — See accompanying schedule: Unaffiliated issuers (cost $17,289,929) | $37,789,213 | |
Fidelity Central Funds (cost $560,614) | 560,623 | |
Other affiliated issuers (cost $2,298,057) | 3,214,945 | |
Total Investment in Securities (cost $20,148,600) | $41,564,781 | |
Cash | 53 | |
Restricted cash | 1,141 | |
Receivable for investments sold | 111,296 | |
Receivable for fund shares sold | 40,801 | |
Dividends receivable | 31,592 | |
Distributions receivable from Fidelity Central Funds | 894 | |
Prepaid expenses | 75 | |
Other receivables | 2,609 | |
Total assets | 41,753,242 | |
Liabilities | ||
Payable for investments purchased | $26,655 | |
Payable for fund shares redeemed | 105,445 | |
Accrued management fee | 20,891 | |
Other affiliated payables | 3,723 | |
Other payables and accrued expenses | 2,708 | |
Collateral on securities loaned | 510,679 | |
Total liabilities | 670,101 | |
Net Assets | $41,083,141 | |
Net Assets consist of: | ||
Paid in capital | $17,650,444 | |
Total distributable earnings (loss) | 23,432,697 | |
Net Assets | $41,083,141 | |
Net Asset Value and Maximum Offering Price | ||
Growth Company: | ||
Net Asset Value, offering price and redemption price per share ($25,615,326 ÷ 1,363,419 shares) | $18.79 | |
Class K: | ||
Net Asset Value, offering price and redemption price per share ($15,467,815 ÷ 822,806 shares) | $18.80 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Amounts in thousands | Year ended November 30, 2018 | |
Investment Income | ||
Dividends | $275,393 | |
Special dividends | 56,805 | |
Income from Fidelity Central Funds | 13,385 | |
Total income | 345,583 | |
Expenses | ||
Management fee | ||
Basic fee | $238,966 | |
Performance adjustment | 73,989 | |
Transfer agent fees | 43,726 | |
Accounting and security lending fees | 2,403 | |
Custodian fees and expenses | 885 | |
Independent trustees' fees and expenses | 226 | |
Registration fees | 308 | |
Audit | 201 | |
Legal | 69 | |
Interest | 6 | |
Miscellaneous | 293 | |
Total expenses before reductions | 361,072 | |
Expense reductions | (1,180) | |
Total expenses after reductions | 359,892 | |
Net investment income (loss) | (14,309) | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 3,347,606 | |
Fidelity Central Funds | 21 | |
Other affiliated issuers | 297,557 | |
Foreign currency transactions | (255) | |
Total net realized gain (loss) | 3,644,929 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers (net of decrease in deferred foreign taxes of $1,906) | (493,895) | |
Fidelity Central Funds | (16) | |
Other affiliated issuers | (494,610) | |
Assets and liabilities in foreign currencies | (214) | |
Total change in net unrealized appreciation (depreciation) | (988,735) | |
Net gain (loss) | 2,656,194 | |
Net increase (decrease) in net assets resulting from operations | $2,641,885 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Amounts in thousands | Year ended November 30, 2018 | Year ended November 30, 2017 |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $(14,309) | $904 |
Net realized gain (loss) | 3,644,929 | 5,300,359 |
Change in net unrealized appreciation (depreciation) | (988,735) | 6,673,348 |
Net increase (decrease) in net assets resulting from operations | 2,641,885 | 11,974,611 |
Distributions to shareholders | (1,899,438) | – |
Distributions to shareholders from net investment income | – | (37,300) |
Distributions to shareholders from net realized gain | – | (2,014,292) |
Total distributions | (1,899,438) | (2,051,592) |
Share transactions - net increase (decrease) | (1,331,921) | (4,103,390) |
Total increase (decrease) in net assets | (589,474) | 5,819,629 |
Net Assets | ||
Beginning of period | 41,672,615 | 35,852,986 |
End of period | $41,083,141 | $41,672,615 |
Other Information | ||
Distributions in excess of net investment income end of period | $(931) |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Growth Company Fund
Years ended November 30, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share DataA | |||||
Net asset value, beginning of period | $18.53 | $14.28 | $14.35 | $13.65 | $12.47 |
Income from Investment Operations | |||||
Net investment income (loss)B | (.01)C | (.01) | .01 | – | .02 |
Net realized and unrealized gain (loss) | 1.12 | 5.08 | .47 | 1.17 | 2.05 |
Total from investment operations | 1.11 | 5.07 | .48 | 1.17 | 2.07 |
Distributions from net investment income | – | (.01) | – | (.01) | (.02) |
Distributions from net realized gain | (.85) | (.81) | (.55) | (.46) | (.87) |
Total distributions | (.85) | (.82) | (.55) | (.47) | (.89) |
Net asset value, end of period | $18.79 | $18.53 | $14.28 | $14.35 | $13.65 |
Total ReturnD | 6.19% | 37.34% | 3.48% | 8.90% | 17.80% |
Ratios to Average Net AssetsE,F | |||||
Expenses before reductions | .85% | .85% | .77% | .88% | .82% |
Expenses net of fee waivers, if any | .85% | .85% | .77% | .87% | .82% |
Expenses net of all reductions | .85% | .85% | .77% | .87% | .82% |
Net investment income (loss) | (.07)%C | (.04)% | .07% | (.01)% | .12% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $25,615 | $25,256 | $21,114 | $23,513 | $24,165 |
Portfolio turnover rateG | 18%H | 15%H | 19%H | 18%H | 12%H |
A Per share amounts have been adjusted to reflect the impact of the 10 for 1 share split that occurred on August 10, 2018.
B Calculated based on average shares outstanding during the period.
C Net investment income per share reflects a large, non-recurring dividend which amounted to $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.19) %.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Fidelity Growth Company Fund Class K
Years ended November 30, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share DataA | |||||
Net asset value, beginning of period | $18.52 | $14.27 | $14.34 | $13.64 | $12.47 |
Income from Investment Operations | |||||
Net investment income (loss)B | –C,D | .01 | .02 | .01 | .03 |
Net realized and unrealized gain (loss) | 1.13 | 5.07 | .47 | 1.17 | 2.05 |
Total from investment operations | 1.13 | 5.08 | .49 | 1.18 | 2.08 |
Distributions from net investment income | –D | (.02) | (.01) | (.03) | (.04) |
Distributions from net realized gain | (.85) | (.81) | (.55) | (.45) | (.87) |
Total distributions | (.85) | (.83) | (.56) | (.48) | (.91) |
Net asset value, end of period | $18.80 | $18.52 | $14.27 | $14.34 | $13.64 |
Total ReturnE | 6.28% | 37.47% | 3.59% | 9.01% | 17.93% |
Ratios to Average Net AssetsF,G | |||||
Expenses before reductions | .76% | .75% | .66% | .77% | .71% |
Expenses net of fee waivers, if any | .76% | .75% | .66% | .77% | .71% |
Expenses net of all reductions | .76% | .75% | .66% | .77% | .71% |
Net investment income (loss) | .02%C | .06% | .17% | .09% | .24% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $15,468 | $16,416 | $14,739 | $17,587 | $18,242 |
Portfolio turnover rateH | 18%I | 15%I | 19%I | 18%I | 12%I |
A Per share amounts have been adjusted to reflect the impact of the 10 for 1 share split that occurred on August 10, 2018.
B Calculated based on average shares outstanding during the period.
C Net investment income per share reflects a large, non-recurring dividend which amounted to $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.11) %.
D Amount represents less than $.005 per share.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
I Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended November 30, 2018
(Amounts in thousands except percentages)
1. Organization.
Fidelity Growth Company Fund (the Fund) is a fund of Fidelity Mt. Vernon 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 Growth Company and Class K shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class.
Effective August 10, 2018, each class underwent a 10 for 1 share split. The effect of the share split transaction was to multiply the number of outstanding shares of the Class by a split factor of 10:1, with a corresponding decrease in net asset value (NAV) per share. This event does not impact the overall net assets of each class. The per share data presented in the Financial Highlights and Share Transactions presented in the Notes to Financial Statements have been retroactively adjusted to reflect this share split.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investments Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy. Equity securities, including restricted securities, for which observable inputs are not available are valued using alternate valuation approaches, including the market approach and the income approach and are categorized as Level 3 in the hierarchy. The market approach generally consists of using comparable market transactions while the income approach generally consists of using the net present value of estimated future cash flows, adjusted as appropriate for liquidity, credit, market and/or other risk factors.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
The following provides information on Level 3 securities held by the Fund that were valued at period end based on unobservable inputs. These amounts exclude valuations provided by a broker.
Asset Type | Fair Value | Valuation Technique(s) | Unobservable Input | Amount or Range/Weighted Average | Impact to Valuation from an Increase in Input(a) |
Equities | $ 1,330,080 | Market comparable | Enterprise value/Sales multiple (EV/S) | 1.2 - 7.2 / 2.6 | Increase |
Transaction price | $0.46 - $411.85 / $154.71 | Increase | |||
Enterprise value/EBITDA multiple (EV/EBITDA) | 10.5 | Increase | |||
Discount rate | 30.0% - 76.0% / 43.9% | Decrease | |||
Discount for lack of marketability | 10.0% - 15.0% / 14.7% | Decrease | |||
Premium rate | 40.0% | Increase | |||
Conversion ratio | 3.0 | Increase | |||
Proxy discount | 4.2% - 21.3% / 7.9% | Decrease | |||
Liquidity preference | $14.90 | Increase | |||
Market approach | Transaction price | $0.81 - $215.00 / $57.99 | Increase | ||
Discount for lack of marketability | 10.0% | Decrease | |||
Conversion ratio | 1.6 | Increase | |||
Discount cash flow | Discount rate | 8.0% | Decrease | ||
Discount for lack of marketability | 10.0% | Decrease | |||
Recovery value | Recovery value | 0.0% - 1.0% / 0.7% | Increase |
(a) Represents the expected directional change in the fair value of the Level 3 investments that would result from an increase in the corresponding input. A decrease to the unobservable input would have the opposite effect. Significant changes in these inputs could result in significantly higher or lower fair value measurements.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of November 30, 2018, as well as a roll forward of Level 3 investments, is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. Large, non-recurring dividends recognized by the Fund are presented separately on the Statement of Operations as "Special Dividends" and the impact of these dividends is presented in the Financial Highlights. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan) for the Fund, certain independent Trustees have elected to defer receipt of a portion of their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees of $2,270 are included in the accompanying Statement of Assets and Liabilities in other receivables and other payables and accrued expenses, respectively.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. As of November 30, 2018, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), redemptions in kind, deferred trustees compensation, net operating losses and losses deferred due to wash sales.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
Gross unrealized appreciation | $23,035,582 |
Gross unrealized depreciation | (1,851,754) |
Net unrealized appreciation (depreciation) | $21,183,828 |
Tax Cost | $20,380,953 |
The tax-based components of distributable earnings as of period end were as follows:
Undistributed long-term capital gain | $2,251,210 |
Net unrealized appreciation (depreciation) on securities and other investments | $21,183,758 |
The tax character of distributions paid was as follows:
November 30, 2018 | November 30, 2017 | |
Ordinary Income | $1,324 | $ 37,300 |
Long-term Capital Gains | 1,898,114 | 2,014,292 |
Total | $1,899,438 | $ 2,051,592 |
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
Consolidated Subsidiary. The Fund invests in certain investments through a wholly-owned subsidiary ("Subsidiary"), which may be subject to federal and state taxes upon disposition.
As of period end, the Fund held an investment of $242,941 in these Subsidiaries, representing .59% of the Fund's net assets. The financial statements have been consolidated and include accounts of the Fund and each Subsidiary. Accordingly, all inter-company transactions and balances have been eliminated.
Any cash held by the Subsidiaries is restricted as to its use and is presented as Restricted cash in the Statement of Assets and Liabilities.
New Rule Issuance. During August 2018, the U.S. Securities and Exchange Commission issued Final Rule Release No. 33-10532, Disclosure Update and Simplification. This Final Rule includes amendments specific to registered investment companies that are intended to eliminate overlap in disclosure requirements between Regulation S-X and GAAP. In accordance with these amendments, certain line-items in the Fund's financial statements have been combined or removed for the current period as outlined in the table below.
Financial Statement | Current Line-Item Presentation | Prior Line-Item Presentation |
Statement of Assets and Liabilities | Total distributable earnings (loss) | Undistributed/Distributions in excess of/Accumulated net investment income (loss) Accumulated/Undistributed net realized gain (loss) Net unrealized appreciation (depreciation) |
Statement of Changes in Net Assets | N/A - removed | Undistributed/Distributions in excess of/Accumulated net investment income (loss) end of period |
Statement of Changes in Net Assets | Distributions to shareholders | Distributions to shareholders from net investment income Distributions to shareholders from net realized gain |
Distributions to Shareholders Note to Financial Statements | Distributions to shareholders | Distributions to shareholders from net investment income Distributions to shareholders from net realized gain |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and in-kind transactions, aggregated $8,064,714 and $9,288,362, respectively.
Unaffiliated Redemptions In-Kind. During the period, 93,489* shares of the Fund were redeemed in-kind for investments and cash with a value of $1,799,315. The net realized gain of $1,264,532 on investments delivered through the in-kind redemptions is included in the accompanying Statement of Operations. The amount of the redemptions is included in share transactions activity shown in the accompanying Statement of Changes in Net Assets as well as the Notes to Financial Statements. The Fund recognized no gain or loss for federal income tax purposes.
Prior Fiscal Year Redemptions In-Kind.
During the prior period, 346,490* shares of the Fund held by unaffiliated entities were redeemed in-kind for investments and cash with a value of $5,209,289. The Fund had a net realized gain of $3,322,910 on investments delivered through the 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.
* Share activity prior to August 10, 2018 has been adjusted to reflect the impact of the 10 for 1 share split occurred on that date.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .24% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of +/- .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of Growth Company as compared to its benchmark index, the Russell 3000 Growth Index, over the same 36 month performance period. For the reporting period, the total annual management fee rate, including the performance adjustment, was .71% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of Growth Company, except for Class K. FIIOC receives an asset-based fee of Class K's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
Amount | % of Class-Level Average Net Assets | |
Growth Company | $35,951 | .13 |
Class K | 7,775 | .05 |
$43,726 |
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions. For the period, the fees were equivalent to an annual rate of .01%.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $242 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with Fidelity Management & Research Company (FMR) or other affiliated entities of FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Loan Balance | Weighted Average Interest Rate | Interest Expense |
Borrower | $25,753 | 1.65% | $6 |
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
Other. During the period, the investment adviser reimbursed the Fund for certain losses in the amount of $711.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $119 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. The value of securities loaned to FCM at period end was $41,618. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $11,925, including $1,656 from securities loaned to FCM.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $754 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $9.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $417.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Year ended November 30, 2018 | Year ended November 30, 2017 | |
Distributions to shareholders | ||
Growth Company | $1,149,671 | $– |
Class K | 749,767 | – |
Total | $1,899,438 | $– |
From net investment income | ||
Growth Company | $– | $13,724 |
Class K | – | 23,576 |
Total | $– | $37,300 |
From net realized gain | ||
Growth Company | $– | $1,190,770 |
Class K | – | 823,522 |
Total | $– | $2,014,292 |
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 | |
Year ended November 30, 2018(a) | Year ended November 30, 2017(a) | Year ended November 30, 2018 | Year ended November 30, 2017 | |
Growth Company | ||||
Shares sold | 248,528 | 171,270 | $4,759,280 | $2,740,883 |
Reinvestment of distributions | 58,986 | 80,920 | 1,059,253 | 1,134,062 |
Shares redeemed | (307,305)(b) | (367,910)(c) | (5,899,459)(b) | (5,635,831)(c) |
Net increase (decrease) | 209 | (115,720) | $(80,926) | $(1,760,886) |
Class K | ||||
Shares sold | 187,471 | 195,210 | $3,588,943 | $3,093,032 |
Reinvestment of distributions | 41,745 | 60,510 | 749,542 | 847,098 |
Shares redeemed | (292,620)(b) | (402,090)(c) | (5,589,480)(b) | (6,282,634)(c) |
Net increase (decrease) | (63,404) | (146,370) | $(1,250,995) | $(2,342,504) |
(a) Share activity prior to August 10, 2018 has been adjusted to reflect the impact of the 10 for 1 share split that occurred on that date.
(b) Amount includes in-kind redemptions (see the Redemptions In-Kind note for additional details).
(c) Amount includes in-kind redemptions (see the Prior Fiscal Year Redemptions In-Kind note for additional details).
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.
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Mt. Vernon Street Trust and Shareholders of Fidelity Growth Company Fund:
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statement of assets and liabilities of Fidelity Growth Company Fund (the "Fund"), a fund of Fidelity Mt. Vernon Street Trust, including the schedule of investments, as of November 30, 2018, and the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of November 30, 2018, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund's financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of November 30, 2018, by correspondence with the custodians and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/ Deloitte & Touche LLP
Boston, Massachusetts
January 16, 2019
We have served as the auditor of one or more of the Fidelity investment companies since 1999.
Trustees and Officers
The Trustees, Members of the Advisory Board (if any), and officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Except for Michael E. Wiley, each of the Trustees oversees 281 funds. Mr. Wiley oversees 192 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the fund is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund’s Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Board Structure and Oversight Function. James C. Curvey is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Ned C. Lautenbach serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and other equity funds. The asset allocation funds may invest in Fidelity® funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. In addition, the Independent Trustees have worked with Fidelity to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
James C. Curvey (1935)
Year of Election or Appointment: 2007
Trustee
Chairman of the Board of Trustees
Mr. Curvey also serves as Trustee of other Fidelity® funds. Mr. Curvey is Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey is an Overseer Emeritus for the Boston Symphony Orchestra, a Director of Artis-Naples, and a Trustee of Brewster Academy in Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-2018), Director of Fidelity Investments Money Management, Inc. (investment adviser firm, 2009-2014) and a Director of FMR and FMR Co., Inc. (investment adviser firms, 2007-2014).
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), as a member of the Independent Directors Council (IDC) Governing Council (2010-2015), and as a member of the Board of Directors for The Brookville Center for Children’s Services, Inc. (2009-2017). Mr. Dirks is a member of the Finance Committee (2016-present) and Board of Directors (2017-present) and is Treasurer (2018-present) of the Asolo Repertory Theatre.
Donald F. Donahue (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Donahue also serves as a Trustee of other Fidelity® funds. Mr. Donahue is President and Chief Executive Officer of Miranda Partners, LLC (risk consulting for the financial services industry, 2012-present). Previously, Mr. Donahue served as a Member of the Advisory Board of certain Fidelity® funds (2015-2018) and Chief Executive Officer (2006-2012), Chief Operating Officer (2003-2006), and Managing Director, Customer Marketing and Development (1999-2003) of The Depository Trust & Clearing Corporation (financial markets infrastructure). Mr. Donahue serves as a Member (2007-present) and Co-Chairman (2016-present) of the Board of Directors of United Way of New York, Member of the Board of Directors of NYC Leadership Academy (2012-present) and Member of the Board of Advisors of Ripple Labs, Inc. (financial services, 2015-present). He also served as Chairman (2010-2012) and Member of the Board of Directors (2012-2013) of Omgeo, LLC (financial services), Treasurer of United Way of New York (2012-2016), and Member of the Board of Directors of XBRL US (financial services non-profit, 2009-2012) and the International Securities Services Association (2009-2012).
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2014-2017) and a member (2010-2017) of the Board of Directors of Dave & Buster’s Entertainment, Inc. (restaurant and entertainment complexes), as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association, and as a member of the Board of Directors for The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), Earth Fare, Inc. (retail grocery, 2010-2014), and The Western Union Company (global money transfer, 2006-2011).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as Chair (2018-present) and Member (2013-present) of the Board of Governors, State University System of Florida and is a member of the Council on Foreign Relations (1994-present). He is also a member and has most recently served as Chairman of the Board of Directors of Artis-Naples (2012-present). Previously, Mr. Lautenbach served as a member and then Lead Director of the Board of Directors of Eaton Corporation (diversified industrial, 1997-2016). He was also a Partner and Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007). In addition, Mr. Lautenbach also had a 30-year career with IBM (technology company) during which time he served as Senior Vice President and a member of the Corporate Executive Committee (1968-1998).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-2018).
Cornelia M. Small (1944)
Year of Election or Appointment: 2005
Trustee
Ms. Small also serves as Trustee of other Fidelity® funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.
Garnett A. Smith (1947)
Year of Election or Appointment: 2018
Trustee
Mr. Smith also serves as Trustee of other Fidelity® funds. Prior to Mr. Smith's retirement, he served as Chairman and Chief Executive Officer of Inbrand Corp. (manufacturer of personal absorbent products, 1990-1997). He also served as President (1986-1990) of Inbrand Corp. Prior to his employment with Inbrand Corp., he was employed by a retail fabric chain and North Carolina National Bank. In addition, Mr. Smith served as a Member of the Advisory Board of certain Fidelity® funds (2012-2013) and as a board member of the Jackson Hole Land Trust (2009-2012).
David M. Thomas (1949)
Year of Election or Appointment: 2008
Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present) and as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), a Director of Fortune Brands, Inc. (consumer products, 2000-2011), and a member of the Board of Trustees of the University of Florida (2013-2018).
Michael E. Wiley (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Wiley also serves as Trustee or Member of the Advisory Board of other Fidelity® funds. Mr. Wiley serves as a Director of High Point Resources (exploration and production, 2005-present). Previously, Mr. Wiley served as a Director of Andeavor Corporation (independent oil refiner and marketer, 2005-2018), a Director of Andeavor Logistics LP (natural resources logistics, 2015-2018), a Director of Post Oak Bank (privately-held bank, 2004-2018), a Director of Asia Pacific Exploration Consolidated (international oil and gas exploration and production, 2008-2013), a member of the Board of Trustees of the University of Tulsa (2000-2006; 2007-2010), a Senior Energy Advisor of Katzenbach Partners, LLC (consulting, 2006-2007), an Advisory Director of Riverstone Holdings (private investment), a Director of Spinnaker Exploration Company (exploration and production, 2001-2005) and Chairman, President, and CEO of Baker Hughes, Inc. (oilfield services, 2000-2004).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Advisory Board Members and Officers:
Correspondence intended for a Member of the Advisory Board (if any) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235. Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Vicki L. Fuller (1957)
Year of Election or Appointment: 2018
Member of the Advisory Board
Ms. Fuller also serves as Member of the Advisory Board of other Fidelity® funds. Ms. Fuller serves as a member of the Board of Directors, Audit Committee, and Nominating and Governance Committee of The Williams Companies, Inc. (natural gas infrastructure, 2018-present). Previously, Ms. Fuller served as the Chief Investment Officer of the New York State Common Retirement Fund (2012-2018) and held a variety of positions at AllianceBernstein L.P. (global asset management, 1985-2012), including Managing Director (2006-2012) and Senior Vice President and Senior Portfolio Manager (2001-2006).
Peter S. Lynch (1944)
Year of Election or Appointment: 2003
Member of the Advisory Board
Mr. Lynch also serves as Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of FMR (investment adviser firm) and FMR Co., Inc. (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).
Carol B. Tomé (1957)
Year of Election or Appointment: 2018
Member of the Advisory Board
Ms. Tomé also serves as Member of the Advisory Board of other Fidelity® funds. Ms. Tomé is Chief Financial Officer (2001-present) and Executive Vice President of Corporate Services (2007-present) of The Home Depot, Inc. (home improvement retailer) and a Director (2003-present) and Chair of the Audit Committee (2004-present) of United Parcel Service, Inc. (package delivery and supply chain management). Previously, Ms. Tomé served as Trustee of certain Fidelity® funds (2017), Senior Vice President of Finance and Accounting/Treasurer (2000-2007) and Vice President and Treasurer (1995-2000) of The Home Depot, Inc. and Chair of the Board (2010-2012), Vice Chair of the Board (2009 and 2013), and a Director (2008-2013) of the Federal Reserve Bank of Atlanta. Ms. Tomé is also a director or trustee of many community and professional organizations.
Elizabeth Paige Baumann (1968)
Year of Election or Appointment: 2017
Anti-Money Laundering (AML) Officer
Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer (2012-present) and Senior Vice President (2014-present) of FMR LLC (diversified financial services company) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as AML Officer of the funds (2012-2016), and Vice President (2007-2014) and Deputy Anti-Money Laundering Officer (2007-2012) of FMR LLC.
John J. Burke III (1964)
Year of Election or Appointment: 2018
Chief Financial Officer
Mr. Burke also serves as Chief Financial Officer of other funds. Mr. Burke serves as Head of Investment Operations for Fidelity Fund and Investment Operations (2018-present) and is an employee of Fidelity Investments (1998-present). Previously Mr. Burke served as head of Asset Management Investment Operations (2012-2018).
William C. Coffey (1969)
Year of Election or Appointment: 2018
Secretary and Chief Legal Officer (CLO)
Mr. Coffey also serves as Secretary and CLO of other funds. Mr. Coffey serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2018-present); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2018-present); and CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2018-present). He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Assistant Secretary of certain funds (2009-2018) and as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Timothy M. Cohen (1969)
Year of Election or Appointment: 2018
Vice President
Mr. Cohen also serves as Vice President of other funds. Mr. Cohen serves as Co-Head of Global Equity Research (2016-present), a Director of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present), and is an employee of Fidelity Investments. Previously, Mr. Cohen served as Chief Investment Officer - Equity and a Director of Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2013-2015) and as a Director of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2017).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds. Mr. Davis serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present), and is an employee of Fidelity Investments (2008-present). Previously, Mr. Deberghes served as President and Treasurer of certain Fidelity® funds (2013-2018). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). Previously, Mr. Deberghes served in other fund officer roles.
Laura M. Del Prato (1964)
Year of Election or Appointment: 2018
Assistant Treasurer
Ms. Del Prato also serves as an officer of other funds. Ms. Del Prato is an employee of Fidelity Investments (2017-present). Prior to joining Fidelity Investments, Ms. Del Prato served as a Managing Director and Treasurer of the JPMorgan Mutual Funds (2014-2017). Prior to JPMorgan, Ms. Del Prato served as a partner at Cohen Fund Audit Services (accounting firm, 2012-2013) and KPMG LLP (accounting firm, 2004-2012).
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2005-present). Previously, Mr. Hogan served as Assistant Treasurer of certain Fidelity® funds (2016-2018).
Pamela R. Holding (1964)
Year of Election or Appointment: 2018
Vice President
Ms. Holding also serves as Vice President of other funds. Ms. Holding serves as Co-Head of Global Equity Research (2018-present) and is an employee of Fidelity Investments (2013-present).
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight, serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
Rieco E. Mello (1969)
Year of Election or Appointment: 2017
Assistant Treasurer
Mr. Mello also serves as Assistant Treasurer of other funds. Mr. Mello serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (1995-present).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. Ms. Smith serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), is an employee of Fidelity Investments (2009-present), and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Assistant Treasurer (2013-2018) and Deputy Treasurer (2013-2016) of certain Fidelity® funds.
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (June 1, 2018 to November 30, 2018).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee, which was eliminated effective August 1, 2018, is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee, which was eliminated effective August 1, 2018, is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
Annualized Expense Ratio-A | Beginning Account Value June 1, 2018 | Ending Account Value November 30, 2018 | Expenses Paid During Period-B June 1, 2018 to November 30, 2018 | |
Growth Company | .83% | |||
Actual | $1,000.00 | $946.60 | $4.05 | |
Hypothetical-C | $1,000.00 | $1,020.91 | $4.20 | |
Class K | .75% | |||
Actual | $1,000.00 | $947.00 | $3.66 | |
Hypothetical-C | $1,000.00 | $1,021.31 | $3.80 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period).
C 5% return per year before expenses
Distributions (Unaudited)
The Board of Trustees of Fidelity Growth Company Fund voted to pay to shareholders of record at the opening of business on record date, the following distributions per share derived from capital gains realized from sales of portfolio securities.
Pay Date | Record Date | Capital Gains | |
Fidelity Growth Company Fund | |||
Growth Company | 12/27/18 | 12/26/18 | $1.022 |
Class K | 12/27/18 | 12/26/18 | $1.022 |
The fund hereby designates as a capital gain dividend with respect to the taxable year ended November 30, 2018, $2,401,914,108, or, if subsequently determined to be different, the net capital gain of such year.
Class K designates 100% of the dividend distributed during the fiscal year as qualifying for the dividends–received deduction for corporate shareholders.
Class K designates 100% of the dividend distributed during the fiscal year as amounts which may be taken into account as a dividend for purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code.
The fund will notify shareholders in January 2019 of amounts for use in preparing 2018 income tax returns.
Board Approval of Investment Advisory Contracts
Fidelity Growth Company Fund
At its July 2018 meeting, the Board of Trustees, including the Independent Trustees (together, the Board), voted to continue the management contract with Fidelity Management & Research Company (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund for six months through January 31, 2019, in connection with the reunification of the Fidelity Equity High Income Funds Board, which oversees the fund, and the Sector Portfolios Board.
The Board considered that the approval of the fund's Advisory Contracts will not result in any changes in (i) the investment process or strategies employed in the management of the fund's assets; (ii) the fees and expenses paid by shareholders; (iii) the nature, extent or quality of services provided under the fund's Advisory Contracts; or (iv) the day-to-day management of the fund or the persons primarily responsible for such management. The Board concluded that the fund's Advisory Contracts are fair and reasonable, and that the fund's Advisory Contracts should be renewed, without modification, through January 31, 2019, with the understanding that the Board will consider the annual renewal for a full one year period in January 2019.
In connection with its consideration of future renewals of the fund's Advisory Contracts, the Board will consider: (i) the nature, extent and quality of services provided to the fund, including shareholder and administrative services and investment performance; (ii) the competitiveness of the management fee and total expenses for the fund; (iii) the costs of the services and profitability, including the revenues earned and the expenses incurred in conducting the business of developing, marketing, distributing, managing, administering, and servicing the fund and its shareholders, to the extent applicable, as well as potential fall-out benefits from Fidelity's non-fund businesses; and (iv) whether there have been economies of scale in respect of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is the potential for realization of any further economies.
Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board ultimately concluded that the fund's management fee structure is fair and reasonable, and that the continuation of the fund's Advisory Contracts should be approved.
Corporate Headquarters
245 Summer St.
Boston, MA 02210
www.fidelity.com
GCF-ANN-0119
1.539089.121
Fidelity® Growth Company Fund Class K Annual Report November 30, 2018 |
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of a fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a financial advisor, broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from a fund electronically, by contacting your financial intermediary. For Fidelity customers, visit Fidelity's web site or call Fidelity using the contact information listed below.
You may elect to receive all future reports in paper free of charge. If you wish to continue receiving paper copies of your shareholder reports, you may contact your financial intermediary or, if you are a Fidelity customer, visit Fidelity’s website, or call Fidelity at the applicable toll-free number listed below. Your election to receive reports in paper will apply to all funds held with the fund complex/your financial intermediary.
Account Type | Website | Phone Number |
Brokerage, Mutual Fund, or Annuity Contracts: | fidelity.com/mailpreferences | 1-800-343-3548 |
Employer Provided Retirement Accounts: | netbenefits.fidelity.com/preferences (choose 'no' under Required Disclosures to continue to print) | 1-800-343-0860 |
Advisor Sold Accounts Serviced Through Your Financial Intermediary: | Contact Your Financial Intermediary | Your Financial Intermediary's phone number |
Advisor Sold Accounts Serviced by Fidelity: | institutional.fidelity.com | 1-877-208-0098 |
Contents
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-800-835-5092 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2019 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
For the periods ended November 30, 2018 | Past 1 year | Past 5 years | Past 10 years |
Class K | 6.28% | 14.24% | 18.65% |
The initial offering of Class K shares took place on May 9, 2008. Returns prior to May 9, 2008 are those of Fidelity® Growth Company Fund, the original class of the fund.
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity® Growth Company Fund - Class K on November 30, 2008.
The chart shows how the value of your investment would have changed, and also shows how the Russell 3000® Growth Index performed over the same period.
See above for additional information regarding the performance of Class K.
Period Ending Values | ||
$55.272 | Fidelity® Growth Company Fund - Class K | |
$45,893 | Russell 3000® Growth Index |
Management's Discussion of Fund Performance
Market Recap: The S&P 500® index gained 6.27% for the 12 months ending November 30, 2018, as the U.S. equity bellwether declined sharply in October after climbing steadily beginning in May and achieving a record close in late September. Rising U.S. Treasury yields and concern about peaking corporate earnings growth sent many investors fleeing from risk assets at a time when they were still dealing with lingering uncertainty related to global trade and the U.S. Federal Reserve picking up the pace of interest rate hikes. The index returned -6.84% in October alone, its largest monthly drop in roughly seven years, and then endured a highly volatile November in which it gained 2.04%. For the full year, growth stocks within the index maintained a sizable advantage over their value counterparts, extending a trend that began in early 2017. A number of economically sensitive sectors dropped to the bottom of the 12-month performance scale, with materials (-7%) and energy (-2%) faring worst, followed by industrials (-1%) and financials (0%). In contrast, the defensive-oriented health care sector gained about 16% to lead the way. Consumer discretionary and information technology were rattled in October but earlier strength resulted in each advancing roughly 13% for the full 12 months. The newly reconstituted communication services sector, which includes dividend-rich telecom stocks, rose about 4%. Real estate (+5%), consumer staples (+3%) and utilities (+2%) also advanced but lagged the broader market.Comments from Portfolio Manager Steven Wymer: For the fiscal year, the fund's share classes gained about 6%, behind the 8.14% advance of the benchmark Russell 3000® Growth Index. Versus the benchmark, security selection within the health care sector was by far the biggest detractor, primarily a result of choices and a sizable overweighting in the biotechnology, pharmaceuticals & life sciences segment. Included was Alnylam Pharmaceuticals (-40%), a biopharma company focused on the innovative area of RNA-interference therapies for genetic diseases. In information technology, chipmaker Nvidia (-18%) was the fund’s largest holding, on average, the past 12 months and also our biggest individual detractor. The stock was hurt by excessive supply in the firm’s video gaming card business in the wake of the robust wave of crypto mining the past year. In addition, Nvidia’s data center business, while strong and well-positioned, experienced slowing growth, partly due to a slowdown in cloud spending. Conversely, security selection in consumer discretionary helped relative performance, as did an overweighing here. Yoga-inspired athletic retailer lululemon athletica (+98%) was our top individual contributor versus the benchmark. The stock benefited from the company’s strong financial results this period, supported by enhanced online capabilities and improved offerings. Cloud-computing enterprise software provider Salesforce.com (+37%) also notably contributed.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Investment Summary (Unaudited)
Top Ten Stocks as of November 30, 2018
% of fund's net assets | |
Amazon.com, Inc. | 6.8 |
Apple, Inc. | 5.2 |
NVIDIA Corp. | 5.0 |
Alphabet, Inc. Class A | 4.1 |
Salesforce.com, Inc. | 3.4 |
Microsoft Corp. | 3.3 |
Facebook, Inc. Class A | 2.4 |
lululemon athletica, Inc. | 2.3 |
Alphabet, Inc. Class C | 2.2 |
adidas AG | 1.7 |
36.4 |
Top Five Market Sectors as of November 30, 2018
% of fund's net assets | |
Information Technology | 32.6 |
Consumer Discretionary | 20.3 |
Health Care | 18.4 |
Communication Services | 13.6 |
Industrials | 5.2 |
Asset Allocation (% of fund's net assets)
As of November 30, 2018* | ||
Stocks | 97.5% | |
Convertible Securities | 2.3% | |
Short-Term Investments and Net Other Assets (Liabilities) | 0.2% |
* Foreign investments - 9.0%
Schedule of Investments November 30, 2018
Showing Percentage of Net Assets
Common Stocks - 97.4% | |||
Shares | Value (000s) | ||
COMMUNICATION SERVICES - 13.0% | |||
Diversified Telecommunication Services - 0.2% | |||
Verizon Communications, Inc. | 1,189,892 | $71,750 | |
Entertainment - 3.2% | |||
Activision Blizzard, Inc. | 6,113,406 | 304,937 | |
Electronic Arts, Inc. (a) | 1,473,579 | 123,884 | |
Lions Gate Entertainment Corp.: | |||
Class A | 95,549 | 1,855 | |
Class B | 82,622 | 1,490 | |
Live Nation Entertainment, Inc. (a) | 1,148,030 | 63,922 | |
NetEase, Inc. ADR | 200,899 | 45,618 | |
Netflix, Inc. (a) | 1,997,541 | 571,556 | |
Nintendo Co. Ltd. | 109,900 | 33,425 | |
The Walt Disney Co. | 1,434,760 | 165,700 | |
1,312,387 | |||
Interactive Media & Services - 8.9% | |||
Alphabet, Inc.: | |||
Class A (a) | 1,508,185 | 1,673,557 | |
Class C (a) | 804,164 | 880,101 | |
Facebook, Inc. Class A (a) | 7,101,601 | 998,556 | |
Match Group, Inc. (b) | 206,831 | 8,329 | |
Snap, Inc. Class A (a)(b) | 6,452,292 | 42,004 | |
Tencent Holdings Ltd. | 1,103,800 | 44,128 | |
Twitter, Inc. (a) | 465,976 | 14,655 | |
3,661,330 | |||
Media - 0.3% | |||
Comcast Corp. Class A | 2,716,521 | 105,971 | |
Turn, Inc. (Escrow) (a)(c)(d) | 984,774 | 655 | |
106,626 | |||
Wireless Telecommunication Services - 0.4% | |||
T-Mobile U.S., Inc. (a) | 2,589,899 | 177,279 | |
TOTAL COMMUNICATION SERVICES | 5,329,372 | ||
CONSUMER DISCRETIONARY - 20.1% | |||
Auto Components - 0.0% | |||
Garrett Motion, Inc. (a)(b) | 127,964 | 1,472 | |
Automobiles - 1.5% | |||
Tesla, Inc. (a)(b) | 1,808,427 | 633,817 | |
Hotels, Restaurants & Leisure - 0.9% | |||
Chipotle Mexican Grill, Inc. (a) | 39,385 | 18,637 | |
Hyatt Hotels Corp. Class A | 230,053 | 16,405 | |
Marriott International, Inc. Class A | 118,697 | 13,654 | |
McDonald's Corp. | 384,851 | 72,548 | |
Planet Fitness, Inc. (a) | 332,941 | 18,385 | |
Shake Shack, Inc. Class A (a) | 162,238 | 9,012 | |
Starbucks Corp. | 2,177,217 | 145,264 | |
YETI Holdings, Inc. | 633,918 | 10,675 | |
Yum China Holdings, Inc. | 1,204,287 | 43,150 | |
Yum! Brands, Inc. | 119,816 | 11,049 | |
358,779 | |||
Household Durables - 0.7% | |||
iRobot Corp. (a)(b) | 1,181,074 | 112,674 | |
Roku, Inc. (a) | 3,579,213 | 145,853 | |
Roku, Inc. Class A (a)(b) | 605,178 | 24,661 | |
Sony Corp. sponsored ADR | 123,192 | 6,507 | |
289,695 | |||
Internet & Direct Marketing Retail - 9.1% | |||
Alibaba Group Holding Ltd. sponsored ADR (a) | 1,001,910 | 161,167 | |
Amazon.com, Inc. (a) | 1,650,086 | 2,788,938 | |
Ctrip.com International Ltd. ADR (a) | 472,270 | 13,625 | |
eBay, Inc. (a) | 489,582 | 14,614 | |
Etsy, Inc. (a) | 183,195 | 9,900 | |
Expedia, Inc. | 293,464 | 35,448 | |
JD.com, Inc. sponsored ADR (a) | 3,159,305 | 67,072 | |
The Booking Holdings, Inc. (a) | 96,571 | 182,701 | |
The Honest Co., Inc. (a)(c)(d) | 39,835 | 458 | |
Wayfair LLC Class A (a)(b) | 4,099,636 | 435,381 | |
Zozo, Inc. | 640,700 | 14,252 | |
3,723,556 | |||
Leisure Products - 0.1% | |||
Callaway Golf Co. | 1,871,706 | 32,062 | |
Multiline Retail - 0.4% | |||
Dollar General Corp. | 267,799 | 29,723 | |
Dollar Tree, Inc. (a) | 875,342 | 75,953 | |
Target Corp. | 664,180 | 47,130 | |
152,806 | |||
Specialty Retail - 1.6% | |||
Home Depot, Inc. | 1,878,105 | 338,660 | |
L Brands, Inc. | 132,742 | 4,395 | |
Lowe's Companies, Inc. | 1,459,509 | 137,734 | |
RH (a)(b) | 1,073,356 | 124,660 | |
TJX Companies, Inc. | 1,396,218 | 68,205 | |
673,654 | |||
Textiles, Apparel & Luxury Goods - 5.8% | |||
adidas AG | 3,196,966 | 705,037 | |
Allbirds, Inc. (c)(d) | 61,486 | 3,372 | |
Canada Goose Holdings, Inc. (a) | 1,519,270 | 102,180 | |
Kering SA | 123,575 | 53,721 | |
lululemon athletica, Inc. (a)(e) | 7,235,213 | 959,027 | |
NIKE, Inc. Class B | 2,049,785 | 153,980 | |
Skechers U.S.A., Inc. Class A (sub. vtg.) (a) | 9,047,844 | 244,292 | |
Tory Burch LLC: | |||
Class A (c)(d)(f) | 950,844 | 57,678 | |
Class B (c)(d)(f) | 324,840 | 20,662 | |
Under Armour, Inc. Class C (non-vtg.) (a)(b) | 747,344 | 16,688 | |
VF Corp. | 370,442 | 30,113 | |
2,346,750 | |||
TOTAL CONSUMER DISCRETIONARY | 8,212,591 | ||
CONSUMER STAPLES - 4.7% | |||
Beverages - 2.2% | |||
Fever-Tree Drinks PLC | 1,644,066 | 50,111 | |
Keurig Dr. Pepper, Inc. | 4,569,194 | 123,368 | |
Monster Beverage Corp. (a) | 6,218,389 | 371,113 | |
PepsiCo, Inc. | 884,470 | 107,852 | |
The Coca-Cola Co. | 5,013,941 | 252,703 | |
905,147 | |||
Food & Staples Retailing - 1.0% | |||
Costco Wholesale Corp. | 835,967 | 193,342 | |
Kroger Co. | 6,999,248 | 207,598 | |
400,940 | |||
Food Products - 0.3% | |||
Kellogg Co. | 79,997 | 5,092 | |
Lamb Weston Holdings, Inc. | 753,321 | 57,780 | |
Mondelez International, Inc. | 1,053,345 | 47,379 | |
The Hershey Co. | 179,903 | 19,483 | |
The Kraft Heinz Co. | 248,373 | 12,697 | |
142,431 | |||
Household Products - 0.2% | |||
Church & Dwight Co., Inc. | 727,958 | 48,184 | |
Colgate-Palmolive Co. | 312,361 | 19,841 | |
Kimberly-Clark Corp. | 89,222 | 10,294 | |
78,319 | |||
Personal Products - 0.4% | |||
Coty, Inc. Class A | 5,666,476 | 47,258 | |
Godrej Consumer Products Ltd. | 451,576 | 4,865 | |
Herbalife Nutrition Ltd. (a) | 1,576,401 | 90,249 | |
Unilever NV (Certificaten Van Aandelen) (Bearer) | 614,874 | 34,122 | |
176,494 | |||
Tobacco - 0.6% | |||
Altria Group, Inc. | 2,801,597 | 153,612 | |
JUUL Labs, Inc. Class A (c)(d) | 44,067 | 9,474 | |
Philip Morris International, Inc. | 842,388 | 72,892 | |
235,978 | |||
TOTAL CONSUMER STAPLES | 1,939,309 | ||
ENERGY - 1.8% | |||
Energy Equipment & Services - 0.1% | |||
Baker Hughes, a GE Co. Class A | 1,841,491 | 42,023 | |
Halliburton Co. | 494,825 | 15,552 | |
57,575 | |||
Oil, Gas & Consumable Fuels - 1.7% | |||
Anadarko Petroleum Corp. | 467,764 | 24,745 | |
Cabot Oil & Gas Corp. | 1,943,259 | 48,892 | |
Concho Resources, Inc. (a) | 409,372 | 53,358 | |
Continental Resources, Inc. (a) | 402,015 | 18,380 | |
Devon Energy Corp. | 268,650 | 7,262 | |
EOG Resources, Inc. | 1,727,427 | 178,460 | |
Hess Corp. | 521,160 | 28,085 | |
Noble Energy, Inc. | 1,232,872 | 29,268 | |
Oasis Petroleum, Inc. (a) | 1,884,753 | 13,457 | |
Occidental Petroleum Corp. | 675,457 | 47,464 | |
PDC Energy, Inc. (a) | 383,674 | 13,022 | |
Pioneer Natural Resources Co. | 587,236 | 86,764 | |
Range Resources Corp. | 1,596,508 | 23,229 | |
Reliance Industries Ltd. | 5,022,380 | 84,191 | |
Southwestern Energy Co. (a) | 607,920 | 2,930 | |
Valero Energy Corp. | 482,684 | 38,566 | |
698,073 | |||
TOTAL ENERGY | 755,648 | ||
FINANCIALS - 2.4% | |||
Banks - 0.9% | |||
Bank of America Corp. | 1,924,613 | 54,659 | |
HDFC Bank Ltd. sponsored ADR | 1,209,154 | 122,632 | |
JPMorgan Chase & Co. | 1,346,783 | 149,749 | |
Signature Bank | 68,405 | 8,436 | |
Wells Fargo & Co. | 620,691 | 33,691 | |
369,167 | |||
Capital Markets - 1.2% | |||
BlackRock, Inc. Class A | 328,643 | 140,662 | |
Charles Schwab Corp. | 6,548,255 | 293,362 | |
Edelweiss Financial Services Ltd. | 7,060,364 | 17,202 | |
T. Rowe Price Group, Inc. | 377,660 | 37,524 | |
488,750 | |||
Consumer Finance - 0.3% | |||
American Express Co. | 1,129,057 | 126,759 | |
Discover Financial Services | 130,276 | 9,289 | |
136,048 | |||
Insurance - 0.0% | |||
Hiscox Ltd. | 332,000 | 7,133 | |
TOTAL FINANCIALS | 1,001,098 | ||
HEALTH CARE - 17.4% | |||
Biotechnology - 11.5% | |||
AbbVie, Inc. | 1,259,197 | 118,705 | |
ACADIA Pharmaceuticals, Inc. (a)(e) | 7,257,318 | 138,324 | |
Agios Pharmaceuticals, Inc. (a) | 2,341,036 | 154,040 | |
Alexion Pharmaceuticals, Inc. (a) | 1,290,057 | 158,871 | |
Alkermes PLC (a)(e) | 7,989,655 | 291,143 | |
Allakos, Inc. (a) | 130,309 | 7,677 | |
Allogene Therapeutics, Inc. (b) | 831,440 | 26,007 | |
Allogene Therapeutics, Inc. | 301,764 | 8,495 | |
Alnylam Pharmaceuticals, Inc. (a)(e) | 5,072,739 | 411,703 | |
Amgen, Inc. | 1,101,874 | 229,465 | |
AnaptysBio, Inc. (a) | 530,173 | 39,540 | |
Argenx SE ADR (a) | 70,170 | 6,790 | |
Array BioPharma, Inc. (a) | 5,203,619 | 82,894 | |
aTyr Pharma, Inc. (a)(e) | 2,196,464 | 1,353 | |
BeiGene Ltd. | 1,780,053 | 19,612 | |
BeiGene Ltd. ADR (a) | 2,190,913 | 335,889 | |
Biogen, Inc. (a) | 350,238 | 116,881 | |
bluebird bio, Inc. (a) | 2,651,554 | 325,849 | |
Blueprint Medicines Corp. (a) | 369,977 | 21,226 | |
Calyxt, Inc. (a)(e) | 1,683,949 | 19,399 | |
Celgene Corp. (a) | 859,375 | 62,064 | |
Cellectis SA sponsored ADR (a) | 830,950 | 18,298 | |
Chimerix, Inc. (a) | 576,423 | 1,896 | |
Cibus Global Ltd. Series C (c)(d)(f) | 4,523,810 | 9,500 | |
Coherus BioSciences, Inc. (a) | 1,266,325 | 14,006 | |
Constellation Pharmaceuticals, Inc. | 202,297 | 1,194 | |
Constellation Pharmaceuticals, Inc. | 423,827 | 2,376 | |
Crinetics Pharmaceuticals, Inc. (a) | 208,633 | 7,290 | |
CytomX Therapeutics, Inc. (a) | 989,847 | 13,660 | |
CytomX Therapeutics, Inc. (a)(g) | 794,033 | 10,958 | |
Denali Therapeutics, Inc. (a)(b) | 641,196 | 12,292 | |
Editas Medicine, Inc. (a) | 249,825 | 7,785 | |
Evelo Biosciences, Inc. | 672,270 | 6,669 | |
Evelo Biosciences, Inc. | 909,286 | 9,020 | |
Exact Sciences Corp. (a) | 271,181 | 21,147 | |
Exelixis, Inc. (a) | 9,616,746 | 195,316 | |
Fate Therapeutics, Inc. (a) | 2,783,904 | 42,761 | |
Five Prime Therapeutics, Inc. (a) | 1,426,948 | 18,322 | |
Global Blood Therapeutics, Inc. (a) | 1,323,733 | 41,751 | |
Heron Therapeutics, Inc. (a) | 694,781 | 19,961 | |
Homology Medicines, Inc. (a)(b) | 382,900 | 8,420 | |
Homology Medicines, Inc. (g) | 712,521 | 15,668 | |
Intellia Therapeutics, Inc. (a)(b) | 762,855 | 13,663 | |
Intercept Pharmaceuticals, Inc. (a) | 134,086 | 14,871 | |
Ionis Pharmaceuticals, Inc. (a)(e) | 7,985,431 | 465,471 | |
Ironwood Pharmaceuticals, Inc. Class A (a) | 4,546,765 | 62,836 | |
Jounce Therapeutics, Inc. (a) | 146,622 | 633 | |
Kiniksa Pharmaceuticals Ltd. (g) | 304,279 | 6,153 | |
Lexicon Pharmaceuticals, Inc. (a)(b)(e) | 6,613,917 | 53,573 | |
Macrogenics, Inc. (a) | 198,438 | 3,415 | |
Momenta Pharmaceuticals, Inc. (a)(e) | 5,076,752 | 60,109 | |
Neon Therapeutics, Inc. | 17,627 | 109 | |
Neon Therapeutics, Inc. | 889,854 | 5,233 | |
Principia Biopharma, Inc. | 186,301 | 5,190 | |
Protagonist Therapeutics, Inc. (a) | 818,818 | 5,298 | |
Prothena Corp. PLC (a) | 1,745,414 | 20,962 | |
Regeneron Pharmaceuticals, Inc. (a) | 610,536 | 223,242 | |
Rigel Pharmaceuticals, Inc. (a)(e) | 11,402,836 | 32,270 | |
Rubius Therapeutics, Inc. | 1,166,576 | 24,941 | |
Rubius Therapeutics, Inc. | 1,865,277 | 37,886 | |
Sage Therapeutics, Inc. (a) | 2,149,704 | 247,839 | |
Sarepta Therapeutics, Inc. (a) | 160,097 | 20,728 | |
Scholar Rock Holding Corp. | 233,823 | 5,696 | |
Scholar Rock Holding Corp. (g) | 470,781 | 11,468 | |
Seres Therapeutics, Inc. (a)(b)(e) | 1,537,051 | 12,834 | |
Seres Therapeutics, Inc. (a)(e)(g) | 572,827 | 4,783 | |
Sienna Biopharmaceuticals, Inc. (a)(e) | 839,110 | 8,483 | |
Sienna Biopharmaceuticals, Inc. (e)(g) | 564,045 | 5,702 | |
Spark Therapeutics, Inc. (a) | 709,143 | 29,876 | |
Syros Pharmaceuticals, Inc. (a)(e) | 1,221,889 | 8,321 | |
Syros Pharmaceuticals, Inc. (a)(e)(g) | 938,007 | 6,388 | |
Translate Bio, Inc. (e) | 420,012 | 3,037 | |
Translate Bio, Inc. (e) | 1,993,527 | 13,693 | |
Ultragenyx Pharmaceutical, Inc. (a) | 659,920 | 35,418 | |
uniQure B.V. (a) | 882,638 | 25,844 | |
UNITY Biotechnology, Inc. (b) | 681,325 | 8,762 | |
UNITY Biotechnology, Inc. (g) | 1,193,604 | 15,350 | |
Vertex Pharmaceuticals, Inc. (a) | 413,384 | 74,736 | |
Wuxi Biologics (Cayman), Inc. (a) | 4,024,500 | 33,743 | |
Xencor, Inc. (a) | 1,249,765 | 52,503 | |
Zai Lab Ltd. ADR (a) | 1,833,135 | 36,149 | |
4,751,425 | |||
Health Care Equipment & Supplies - 2.8% | |||
Abbott Laboratories | 741,251 | 54,890 | |
Align Technology, Inc. (a) | 23,288 | 5,354 | |
Boston Scientific Corp. (a) | 2,072,354 | 78,066 | |
Danaher Corp. | 1,296,432 | 142,011 | |
DexCom, Inc. (a) | 925,912 | 119,989 | |
Genmark Diagnostics, Inc. (a) | 1,457,915 | 7,596 | |
Insulet Corp. (a) | 1,939,586 | 162,789 | |
Intuitive Surgical, Inc. (a) | 480,584 | 255,128 | |
Novocure Ltd. (a) | 3,685,877 | 126,499 | |
Novocure Ltd. (a)(g) | 571,461 | 19,613 | |
Penumbra, Inc. (a) | 1,088,637 | 151,560 | |
Presbia PLC (a)(e) | 1,258,087 | 888 | |
Wright Medical Group NV (a) | 375,185 | 10,490 | |
1,134,873 | |||
Health Care Providers & Services - 0.9% | |||
G1 Therapeutics, Inc. (a) | 343,036 | 13,114 | |
Humana, Inc. | 61,326 | 20,205 | |
Laboratory Corp. of America Holdings (a) | 112,995 | 16,457 | |
OptiNose, Inc. (a)(e) | 1,328,318 | 10,454 | |
OptiNose, Inc. (e)(g) | 992,571 | 7,812 | |
UnitedHealth Group, Inc. | 1,111,603 | 312,761 | |
380,803 | |||
Health Care Technology - 0.1% | |||
Castlight Health, Inc. Class B (a) | 2,101,679 | 5,485 | |
Teladoc Health, Inc. (a) | 374,353 | 23,378 | |
28,863 | |||
Life Sciences Tools & Services - 0.1% | |||
Illumina, Inc. (a) | 48,821 | 16,477 | |
Thermo Fisher Scientific, Inc. | 147,563 | 36,824 | |
53,301 | |||
Pharmaceuticals - 2.0% | |||
Adimab LLC (c)(d)(f) | 3,162,765 | 128,503 | |
Akcea Therapeutics, Inc. (a)(b)(e) | 5,249,296 | 177,899 | |
Bristol-Myers Squibb Co. | 991,987 | 53,032 | |
Intra-Cellular Therapies, Inc. (a)(e) | 3,772,282 | 54,509 | |
Jiangsu Hengrui Medicine Co. Ltd. (A Shares) | 178,600 | 1,679 | |
Kolltan Pharmaceuticals, Inc. rights (a)(d) | 7,940,644 | 0 | |
MyoKardia, Inc. (a) | 1,613,248 | 100,134 | |
Nektar Therapeutics (a) | 5,175,334 | 209,032 | |
Rhythm Pharmaceuticals, Inc. (a) | 457,608 | 13,513 | |
RPI International Holdings LP (a)(c)(d) | 130,847 | 20,080 | |
Stemcentrx, Inc. rights 12/31/21 (a)(d) | 2,065,715 | 3,780 | |
The Medicines Company (a) | 1,954,997 | 43,264 | |
Theravance Biopharma, Inc. (a) | 1,102,526 | 30,441 | |
835,866 | |||
TOTAL HEALTH CARE | 7,185,131 | ||
INDUSTRIALS - 5.1% | |||
Aerospace & Defense - 1.2% | |||
Lockheed Martin Corp. | 418,907 | 125,852 | |
Northrop Grumman Corp. | 55,202 | 14,346 | |
Space Exploration Technologies Corp. Class A (a)(c)(d) | 418,210 | 70,677 | |
The Boeing Co. | 682,805 | 236,769 | |
United Technologies Corp. | 423,395 | 51,586 | |
499,230 | |||
Air Freight & Logistics - 0.3% | |||
FedEx Corp. | 82,913 | 18,987 | |
United Parcel Service, Inc. Class B | 883,167 | 101,820 | |
120,807 | |||
Airlines - 1.2% | |||
Azul SA sponsored ADR (a) | 441,863 | 11,926 | |
Delta Air Lines, Inc. | 736,656 | 44,722 | |
JetBlue Airways Corp. (a) | 4,281,080 | 83,567 | |
Ryanair Holdings PLC sponsored ADR (a) | 447,741 | 36,863 | |
Southwest Airlines Co. | 2,007,140 | 109,610 | |
Spirit Airlines, Inc. (a) | 352,944 | 22,631 | |
United Continental Holdings, Inc. (a) | 541,195 | 52,334 | |
Wheels Up Partners Holdings LLC: | |||
Series B (a)(c)(d)(f) | 6,703,518 | 10,323 | |
Series C (a)(c)(d)(f) | 3,466,281 | 5,338 | |
Wizz Air Holdings PLC (a)(g) | 2,734,384 | 104,389 | |
481,703 | |||
Building Products - 0.1% | |||
Resideo Technologies, Inc. (a) | 1,889,819 | 38,987 | |
Construction & Engineering - 0.0% | |||
Fluor Corp. | 429,034 | 17,560 | |
Electrical Equipment - 0.3% | |||
AMETEK, Inc. | 23,375 | 1,716 | |
Eaton Corp. PLC | 277,011 | 21,313 | |
Emerson Electric Co. | 470,281 | 31,753 | |
Fortive Corp. | 802,708 | 61,062 | |
115,844 | |||
Industrial Conglomerates - 0.7% | |||
3M Co. | 387,264 | 80,520 | |
Honeywell International, Inc. | 1,362,427 | 199,936 | |
280,456 | |||
Machinery - 0.9% | |||
Aumann AG (g) | 87,086 | 3,880 | |
Caterpillar, Inc. | 872,879 | 118,423 | |
Deere & Co. | 368,687 | 57,102 | |
Illinois Tool Works, Inc. | 270,585 | 37,625 | |
Ingersoll-Rand PLC | 126,448 | 13,090 | |
Rational AG | 18,321 | 10,422 | |
Wabtec Corp. (b) | 168,973 | 15,985 | |
WashTec AG | 109,322 | 8,032 | |
Xylem, Inc. | 1,181,269 | 86,209 | |
350,768 | |||
Professional Services - 0.0% | |||
CoStar Group, Inc. (a) | 25,746 | 9,510 | |
Road & Rail - 0.4% | |||
Union Pacific Corp. | 1,027,287 | 157,976 | |
TOTAL INDUSTRIALS | 2,072,841 | ||
INFORMATION TECHNOLOGY - 32.2% | |||
Communications Equipment - 0.5% | |||
Arista Networks, Inc. (a) | 143,786 | 34,290 | |
Infinera Corp. (a)(e) | 13,010,495 | 56,075 | |
NETGEAR, Inc. (a)(e) | 2,361,124 | 130,806 | |
221,171 | |||
Electronic Equipment & Components - 0.3% | |||
Arlo Technologies, Inc. (b) | 3,576,054 | 43,020 | |
Cognex Corp. | 50,560 | 2,226 | |
IPG Photonics Corp. (a) | 16,893 | 2,401 | |
TE Connectivity Ltd. | 103,705 | 7,978 | |
Trimble, Inc. (a) | 1,641,893 | 62,441 | |
118,066 | |||
Internet Software & Services - 0.1% | |||
CarGurus, Inc. Class A (a) | 51,226 | 1,993 | |
Farfetch Ltd. Class A (b) | 1,020,219 | 23,210 | |
25,203 | |||
IT Services - 5.6% | |||
Actua Corp. (d)(e) | 1,773,597 | 1,135 | |
Adyen BV | 10,589 | 5,479 | |
Cognizant Technology Solutions Corp. Class A | 883,703 | 62,946 | |
Elastic NV | 41,434 | 2,960 | |
IBM Corp. | 91,027 | 11,312 | |
MasterCard, Inc. Class A | 2,119,172 | 426,102 | |
MongoDB, Inc. (a) | 956,702 | 79,311 | |
MongoDB, Inc. Class A (a) | 42,136 | 3,493 | |
Okta, Inc. (a) | 184,840 | 11,765 | |
PayPal Holdings, Inc. (a) | 4,983,730 | 427,654 | |
Shopify, Inc. Class A (a) | 3,261,996 | 496,524 | |
Square, Inc. (a) | 2,655,338 | 185,449 | |
Visa, Inc. Class A | 3,767,259 | 533,858 | |
Wix.com Ltd. (a) | 500,235 | 47,112 | |
2,295,100 | |||
Semiconductors & Semiconductor Equipment - 7.1% | |||
Advanced Micro Devices, Inc. (a) | 6,290,635 | 133,991 | |
Applied Materials, Inc. | 313,396 | 11,683 | |
ASML Holding NV | 274,611 | 47,055 | |
Broadcom, Inc. | 216,770 | 51,463 | |
Cirrus Logic, Inc. (a) | 805,884 | 30,172 | |
Cree, Inc. (a) | 1,141,440 | 50,383 | |
Intel Corp. | 74,765 | 3,687 | |
KLA-Tencor Corp. | 214,708 | 21,162 | |
Marvell Technology Group Ltd. | 697,437 | 11,236 | |
Micron Technology, Inc. (a) | 354,801 | 13,681 | |
NVIDIA Corp. | 12,498,261 | 2,042,591 | |
Renesas Electronics Corp. (a) | 887,700 | 4,184 | |
Silicon Laboratories, Inc. (a)(e) | 3,165,711 | 279,754 | |
Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR | 1,119,730 | 42,091 | |
Texas Instruments, Inc. | 1,495,286 | 149,304 | |
Xilinx, Inc. | 93,681 | 8,664 | |
2,901,101 | |||
Software - 12.9% | |||
2U, Inc. (a) | 721,615 | 42,135 | |
Adobe, Inc. (a) | 1,587,800 | 398,363 | |
Aspen Technology, Inc. (a) | 315,075 | 27,191 | |
Atlassian Corp. PLC (a) | 426,540 | 36,657 | |
Autodesk, Inc. (a) | 1,381,430 | 199,617 | |
Avalara, Inc. (b) | 60,749 | 1,943 | |
Black Knight, Inc. (a) | 488,839 | 22,164 | |
Cadence Design Systems, Inc. (a) | 189,801 | 8,549 | |
DocuSign, Inc. | 61,168 | 2,554 | |
Domo, Inc. | 199,393 | 3,023 | |
Dropbox, Inc. Class A (a) | 79,018 | 1,848 | |
HubSpot, Inc. (a) | 1,660,943 | 230,921 | |
Intuit, Inc. | 507,677 | 108,912 | |
Microsoft Corp. | 12,173,226 | 1,349,889 | |
New Relic, Inc. (a) | 225,562 | 19,667 | |
Nutanix, Inc.: | |||
Class A (a) | 6,871,069 | 307,205 | |
Class B (a)(g) | 1,151,309 | 51,475 | |
Oracle Corp. | 944,533 | 46,055 | |
Parametric Technology Corp. (a) | 1,854,262 | 160,375 | |
Paylocity Holding Corp. (a) | 119,448 | 8,013 | |
Pluralsight, Inc. (b) | 235,318 | 5,669 | |
Proofpoint, Inc. (a) | 438,185 | 42,508 | |
Red Hat, Inc. (a) | 3,299,258 | 589,116 | |
RingCentral, Inc. (a) | 55,637 | 4,612 | |
Salesforce.com, Inc. (a) | 9,890,562 | 1,411,977 | |
Tenable Holdings, Inc. | 79,414 | 2,262 | |
Zendesk, Inc. (a) | 1,996,485 | 118,651 | |
Zscaler, Inc. (a) | 2,773,584 | 108,891 | |
5,310,242 | |||
Technology Hardware, Storage & Peripherals - 5.7% | |||
Apple, Inc. | 12,020,052 | 2,146,541 | |
NetApp, Inc. | 328,998 | 22,000 | |
Pure Storage, Inc. Class A (a) | 7,562,533 | 143,007 | |
Samsung Electronics Co. Ltd. | 979,935 | 36,607 | |
2,348,155 | |||
TOTAL INFORMATION TECHNOLOGY | 13,219,038 | ||
MATERIALS - 0.4% | |||
Chemicals - 0.4% | |||
CF Industries Holdings, Inc. | 1,326,769 | 55,976 | |
DowDuPont, Inc. | 787,614 | 45,563 | |
LG Chemical Ltd. | 110,617 | 34,114 | |
The Mosaic Co. | 250,646 | 9,023 | |
144,676 | |||
Metals & Mining - 0.0% | |||
Barrick Gold Corp. | 1,586,200 | 20,212 | |
TOTAL MATERIALS | 164,888 | ||
REAL ESTATE - 0.3% | |||
Equity Real Estate Investment Trusts (REITs) - 0.3% | |||
American Tower Corp. | 674,351 | 110,924 | |
Ant International Co. Ltd. Class C (c)(d) | 1,658,265 | 9,303 | |
120,227 | |||
TOTAL COMMON STOCKS | |||
(Cost $18,897,695) | 40,000,143 | ||
Preferred Stocks - 2.4% | |||
Convertible Preferred Stocks - 2.3% | |||
COMMUNICATION SERVICES - 0.6% | |||
Interactive Media & Services - 0.6% | |||
Uber Technologies, Inc.: | |||
Series D, 8.00% (a)(c)(d) | 4,770,180 | 232,642 | |
Series E, 8.00% (a)(c)(d) | 209,216 | 10,203 | |
242,845 | |||
Wireless Telecommunication Services - 0.0% | |||
Altiostar Networks, Inc. Series A1 (a)(c)(d) | 699,106 | 895 | |
TOTAL COMMUNICATION SERVICES | 243,740 | ||
CONSUMER DISCRETIONARY - 0.2% | |||
Hotels, Restaurants & Leisure - 0.1% | |||
MOD Super Fast Pizza Holdings LLC Series 3 Preferred (a)(c)(d)(f) | 61,485 | 9,796 | |
Topgolf International, Inc. Series F (c)(d) | 819,532 | 10,719 | |
20,515 | |||
Internet & Direct Marketing Retail - 0.0% | |||
Jet.Com, Inc. Series B1 (Escrow) (a)(c)(d) | 7,578,338 | 344 | |
The Honest Co., Inc.: | |||
Series C (a)(c)(d) | 92,950 | 1,822 | |
Series D (a)(c)(d) | 69,363 | 1,360 | |
3,526 | |||
Leisure Products - 0.1% | |||
Peloton Interactive, Inc. Series E (a)(c)(d) | 2,549,928 | 36,821 | |
Textiles, Apparel & Luxury Goods - 0.0% | |||
Allbirds, Inc.: | |||
Series A (c)(d) | 24,267 | 1,331 | |
Series B (c)(d) | 4,263 | 234 | |
Series C (c)(d) | 40,746 | 2,234 | |
ORIC Pharmaceuticals, Inc. Series C (c)(d) | 1,416,666 | 4,250 | |
8,049 | |||
TOTAL CONSUMER DISCRETIONARY | 68,911 | ||
CONSUMER STAPLES - 0.0% | |||
Food & Staples Retailing - 0.0% | |||
Sweetgreen, Inc. Series H (c)(d) | 705,259 | 9,197 | |
Food Products - 0.0% | |||
Agbiome LLC Series C (c)(d) | 1,060,308 | 6,716 | |
Tobacco - 0.0% | |||
JUUL Labs, Inc. Series E (c)(d) | 22,033 | 4,737 | |
TOTAL CONSUMER STAPLES | 20,650 | ||
FINANCIALS - 0.0% | |||
Insurance - 0.0% | |||
Clover Health Series D (a)(c)(d) | 863,631 | 8,099 | |
HEALTH CARE - 1.0% | |||
Biotechnology - 0.8% | |||
10X Genomics, Inc.: | |||
Series C (a)(c)(d) | 2,505,940 | 31,901 | |
Series D (c)(d) | 364,100 | 4,635 | |
23andMe, Inc. Series F (a)(c)(d) | 590,383 | 10,243 | |
Axcella Health, Inc.: | |||
Series C (a)(c)(d) | 536,592 | 5,994 | |
Series E (c)(d) | 366,851 | 4,098 | |
BioNTech AG Series A (c)(d) | 114,025 | 32,770 | |
Fulcrum Therapeutics, Inc. Series B 0.00% (c)(d) | 2,308,437 | 4,617 | |
Generation Bio Series B (c)(d) | 831,800 | 7,607 | |
Immunocore Ltd. Series A (a)(c)(d) | 67,323 | 8,698 | |
Intarcia Therapeutics, Inc.: | |||
Series CC (a)(c)(d) | 1,051,411 | 45,242 | |
Series DD (a)(c)(d) | 1,543,687 | 66,425 | |
Kaleido Biosciences, Inc. Series C (c)(d) | 729,738 | 7,290 | |
Moderna, Inc.: | |||
Series B (a)(c)(d) | 111,393 | 2,306 | |
Series C (a)(c)(d) | 254,542 | 5,269 | |
Series D (a)(c)(d) | 2,150,564 | 44,517 | |
Series E (a)(c)(d) | 2,592,279 | 53,660 | |
Series F (a)(c)(d) | 64,317 | 1,331 | |
336,603 | |||
Health Care Equipment & Supplies - 0.0% | |||
Shockwave Medical, Inc. Series C (a)(c)(d) | 5,413,080 | 6,101 | |
Health Care Providers & Services - 0.1% | |||
Mulberry Health, Inc. Series A8 (a)(c)(d) | 2,790,742 | 19,942 | |
Health Care Technology - 0.0% | |||
Codiak Biosciences, Inc.: | |||
Series A 8.00% (a)(c)(d) | 589,863 | 2,141 | |
Series B 8.00% (a)(c)(d) | 1,917,058 | 6,959 | |
Series C, 8.00% (c)(d) | 2,688,186 | 9,758 | |
18,858 | |||
Pharmaceuticals - 0.1% | |||
Castle Creek Pharmaceutical Holdings, Inc. Series B (c)(d) | 16,803 | 6,920 | |
Harmony Biosciences II, Inc. Series A (a)(c)(d) | 10,934,380 | 10,934 | |
Nohla Therapeutics, Inc. Series B (c)(d) | 9,124,200 | 4,161 | |
22,015 | |||
TOTAL HEALTH CARE | 403,519 | ||
INDUSTRIALS - 0.1% | |||
Aerospace & Defense - 0.1% | |||
Space Exploration Technologies Corp. Series G (a)(c)(d) | 216,276 | 36,551 | |
Professional Services - 0.0% | |||
YourPeople, Inc. Series C (a)(c)(d) | 5,833,137 | 25,024 | |
TOTAL INDUSTRIALS | 61,575 | ||
INFORMATION TECHNOLOGY - 0.4% | |||
Internet Software & Services - 0.2% | |||
Lyft, Inc. Series I (c)(d) | 772,439 | 36,578 | |
Reddit, Inc. Series B (a)(c)(d) | 384,303 | 3,989 | |
Starry, Inc.: | |||
Series B (a)(c)(d) | 9,869,159 | 9,099 | |
Series C (c)(d) | 5,234,614 | 4,826 | |
54,492 | |||
IT Services - 0.0% | |||
AppNexus, Inc. Series E (Escrow) (a)(c)(d) | 923,523 | 891 | |
Software - 0.2% | |||
Cloudflare, Inc. Series D, 8.00% (a)(c)(d) | 2,229,826 | 24,528 | |
Dataminr, Inc. Series D (a)(c)(d) | 1,773,901 | 35,301 | |
Outset Medical, Inc.: | |||
Series C (a)(c)(d) | 1,244,716 | 3,871 | |
Series D (c)(d) | 1,525,901 | 4,746 | |
Taboola.Com Ltd. Series E (a)(c)(d) | 1,337,420 | 23,525 | |
91,971 | |||
TOTAL INFORMATION TECHNOLOGY | 147,354 | ||
TOTAL CONVERTIBLE PREFERRED STOCKS | 953,848 | ||
Nonconvertible Preferred Stocks - 0.1% | |||
CONSUMER DISCRETIONARY - 0.0% | |||
Textiles, Apparel & Luxury Goods - 0.0% | |||
Allbirds, Inc. (c)(d) | 13,038 | 715 | |
FINANCIALS - 0.1% | |||
Banks - 0.1% | |||
Itau Unibanco Holding SA | 2,670,300 | 24,873 | |
HEALTH CARE - 0.0% | |||
Biotechnology - 0.0% | |||
Yumanity Holdings LLC: | |||
Class A (a)(c)(d) | 464,607 | 3,062 | |
Class B (c)(d) | 336,308 | 2,216 | |
5,278 | |||
Pharmaceuticals - 0.0% | |||
Castle Creek Pharmaceutical Holdings, Inc. Series A4 (c)(d) | 46,864 | 19,301 | |
TOTAL HEALTH CARE | 24,579 | ||
TOTAL NONCONVERTIBLE PREFERRED STOCKS | 50,167 | ||
TOTAL PREFERRED STOCKS | |||
(Cost $690,291) | 1,004,015 | ||
Money Market Funds - 1.4% | |||
Fidelity Cash Central Fund, 2.27% (h) | 49,905,281 | 49,915 | |
Fidelity Securities Lending Cash Central Fund 2.27% (h)(i) | 510,657,350 | 510,708 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $560,614) | 560,623 | ||
TOTAL INVESTMENT IN SECURITIES - 101.2% | |||
(Cost $20,148,600) | 41,564,781 | ||
NET OTHER ASSETS (LIABILITIES) - (1.2)% | (481,640) | ||
NET ASSETS - 100% | $41,083,141 |
Values shown as $0 in the Schedule of Investments may reflect amounts less than $500.
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $1,325,167,000 or 3.2% of net assets.
(d) Level 3 security
(e) Affiliated company
(f) Investment is owned by a wholly-owned subsidiary (Subsidiary) that is treated as a corporation for U.S. tax purposes.
(g) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $263,639,000 or 0.6% of net assets.
(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, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(i) 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) |
10X Genomics, Inc. Series C | 2/23/16 - 4/3/17 | $11,222 |
10X Genomics, Inc. Series D | 4/10/18 | $3,484 |
23andMe, Inc. Series F | 8/31/17 | $8,197 |
Adimab LLC | 9/17/14 - 6/5/15 | $47,869 |
Agbiome LLC Series C | 6/29/18 | $6,716 |
Allbirds, Inc. | 10/9/18 | $3,372 |
Allbirds, Inc. | 10/9/18 | $715 |
Allbirds, Inc. Series A | 10/9/18 | $1,331 |
Allbirds, Inc. Series B | 10/9/18 | $234 |
Allbirds, Inc. Series C | 10/9/18 | $2,234 |
Altiostar Networks, Inc. Series A1 | 1/10/17 | $3,216 |
Ant International Co. Ltd. Class C | 5/16/18 | $9,303 |
AppNexus, Inc. Series E (Escrow) | 8/1/14 | $1,665 |
Axcella Health, Inc. Series C | 8/11/17 | $5,409 |
Axcella Health, Inc. Series E | 11/30/18 | $4,098 |
BioNTech AG Series A | 12/29/17 | $24,972 |
Castle Creek Pharmaceutical Holdings, Inc. Series A4 | 9/29/16 | $15,506 |
Castle Creek Pharmaceutical Holdings, Inc. Series B | 10/9/18 | $6,920 |
Cibus Global Ltd. Series C | 2/16/18 | $9,500 |
Cloudflare, Inc. Series D, 8.00% | 11/5/14 - 9/10/18 | $17,559 |
Clover Health Series D | 6/7/17 | $8,099 |
Codiak Biosciences, Inc. Series A 8.00% | 11/12/15 | $590 |
Codiak Biosciences, Inc. Series B 8.00% | 11/12/15 | $5,751 |
Codiak Biosciences, Inc. Series C, 8.00% | 11/17/17 | $10,182 |
Dataminr, Inc. Series D | 2/18/15 - 3/6/15 | $22,617 |
Fulcrum Therapeutics, Inc. Series B 0.00% | 8/24/18 | $4,617 |
Generation Bio Series B | 2/21/18 | $7,607 |
Harmony Biosciences II, Inc. Series A | 9/22/17 | $10,934 |
Immunocore Ltd. Series A | 7/27/15 | $12,669 |
Intarcia Therapeutics, Inc. Series CC | 11/14/12 | $14,331 |
Intarcia Therapeutics, Inc. Series DD | 3/17/14 | $50,000 |
Jet.Com, Inc. Series B1 (Escrow) | 3/19/18 | $0 |
JUUL Labs, Inc. Class A | 7/6/18 | $7,899 |
JUUL Labs, Inc. Series E | 7/6/18 | $3,949 |
Kaleido Biosciences, Inc. Series C | 3/16/18 | $7,290 |
Lyft, Inc. Series I | 6/27/18 | $36,578 |
MOD Super Fast Pizza Holdings LLC Series 3 Preferred | 11/3/16 - 12/14/17 | $8,439 |
Moderna, Inc. Series B | 4/13/17 | $1,408 |
Moderna, Inc. Series C | 4/13/17 | $3,224 |
Moderna, Inc. Series D | 11/6/13 | $20,615 |
Moderna, Inc. Series E | 12/18/14 | $24,850 |
Moderna, Inc. Series F | 8/10/16 | $617 |
Mulberry Health, Inc. Series A8 | 1/20/16 | $18,851 |
Nohla Therapeutics, Inc. Series B | 5/1/18 | $4,161 |
ORIC Pharmaceuticals, Inc. Series C | 2/6/18 | $4,250 |
Outset Medical, Inc. Series C | 4/19/17 | $3,226 |
Outset Medical, Inc. Series D | 8/20/18 | $4,746 |
Peloton Interactive, Inc. Series E | 3/31/17 | $13,809 |
Reddit, Inc. Series B | 7/26/17 | $5,456 |
RPI International Holdings LP | 5/21/15 - 3/23/16 | $16,269 |
Shockwave Medical, Inc. Series C | 9/27/17 | $5,467 |
Space Exploration Technologies Corp. Class A | 10/16/15 - 4/6/17 | $38,201 |
Space Exploration Technologies Corp. Series G | 1/20/15 | $16,753 |
Starry, Inc. Series B | 12/1/16 | $5,339 |
Starry, Inc. Series C | 12/8/17 | $4,826 |
Sweetgreen, Inc. Series H | 11/9/18 | $9,197 |
Taboola.Com Ltd. Series E | 12/22/14 | $13,943 |
The Honest Co., Inc. | 8/21/14 | $1,078 |
The Honest Co., Inc. Series C | 8/21/14 | $2,515 |
The Honest Co., Inc. Series D | 8/3/15 | $3,174 |
Topgolf International, Inc. Series F | 11/10/17 | $11,337 |
Tory Burch LLC Class A | 5/14/15 | 67,653 |
Tory Burch LLC Class B | 12/31/12 | $17,505 |
Turn, Inc. (Escrow) | 4/11/17 | $591 |
Uber Technologies, Inc. Series D, 8.00% | 6/6/14 | $74,000 |
Uber Technologies, Inc. Series E, 8.00% | 12/5/14 | $6,971 |
Wheels Up Partners Holdings LLC Series B | 9/18/15 | $19,040 |
Wheels Up Partners Holdings LLC Series C | 6/22/17 | 10,815 |
YourPeople, Inc. Series C | 5/1/15 | $86,920 |
Yumanity Holdings LLC Class A | 2/8/16 | $3,140 |
Yumanity Holdings LLC Class B | 6/19/18 | $2,815 |
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 | $1,460 |
Fidelity Securities Lending Cash Central Fund | 11,925 |
Total | $13,385 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations if applicable.
Other Affiliated Issuers
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows:
Affiliate (Amounts in thousands) | Value, beginning of period | Purchases | Sales Proceeds(a) | Dividend Income | Realized Gain (loss) | Change in Unrealized appreciation (depreciation) | Value, end of period |
ACADIA Pharmaceuticals, Inc. | $231,213 | $9,787 | $25,611 | $-- | $(2,998) | $(74,067) | $138,324 |
Actua Corp. | 36,209 | -- | 942 | -- | (31,594) | (2,538) | 1,135 |
Akcea Therapeutics, Inc. | 70,889 | 43,569 | 9,902 | -- | 3,571 | 69,772 | 177,899 |
Alkermes PLC | 485,912 | 28,513 | 75,067 | -- | (19,962) | (128,253) | 291,143 |
Alnylam Pharmaceuticals, Inc. | 668,331 | 40,035 | 26,762 | -- | 17,019 | (286,920) | 411,703 |
aTyr Pharma, Inc. | 5,730 | -- | 19,001 | -- | -- | 18,954 | -- |
aTyr Pharma, Inc. | 3,031 | 27 | 109 | -- | (166) | (26,114) | 1,353 |
Avexis, Inc. | 162,779 | 14,222 | 387,476 | -- | 250,138 | (39,663) | -- |
bluebird bio, Inc. | 439,342 | 43,772 | 24,702 | -- | 17,955 | (150,517) | -- |
Calyxt, Inc. | 28,618 | 3,870 | 1,275 | -- | 725 | (12,539) | 19,399 |
Exelixis, Inc. | 410,001 | -- | 117,381 | -- | 51,970 | (149,274) | -- |
Infinera Corp. | 81,330 | 16,708 | 6,505 | -- | (9,603) | (25,855) | 56,075 |
Intra-Cellular Therapies, Inc. | 59,705 | 4,049 | 5,367 | -- | (2,174) | (1,704) | 54,509 |
Ionis Pharmaceuticals, Inc. | 417,706 | 38,526 | 18,768 | -- | 10,138 | 17,869 | 465,471 |
Lexicon Pharmaceuticals, Inc. | 71,027 | 1,381 | 4,079 | -- | (1,275) | (13,481) | 53,573 |
lululemon athletica, Inc. | 521,918 | 37,754 | 108,321 | -- | 50,989 | 456,687 | 959,027 |
Momenta Pharmaceuticals, Inc. | 70,799 | 3,610 | 4,063 | -- | 1,058 | (11,295) | 60,109 |
NETGEAR, Inc. | -- | 147,999 | 4,556 | -- | 576 | (13,213) | 130,806 |
OptiNose, Inc. | 14,894 | 9,211 | 792 | -- | 126 | (12,985) | 10,454 |
OptiNose, Inc. | 17,053 | -- | -- | -- | -- | (9,241) | 7,812 |
Presbia PLC | 3,510 | 10 | 152 | -- | (13) | (2,467) | 888 |
Prothena Corp. PLC | 100,105 | 274 | 8,612 | -- | (11,303) | (59,503) | -- |
Regulus Therapeutics, Inc. | 4,872 | 23 | 1,611 | -- | (33,983) | 30,699 | -- |
Rigel Pharmaceuticals, Inc. | 44,595 | 5,044 | 2,128 | -- | (443) | (14,798) | 32,270 |
Seres Therapeutics, Inc. | 12,125 | 3,348 | 488 | -- | 43 | (2,194) | 12,834 |
Seres Therapeutics, Inc. | 6,015 | -- | -- | -- | -- | (1,232) | 4,783 |
Sienna Biopharmaceuticals, Inc. | 16,690 | 649 | 576 | -- | 55 | (8,335) | 8,483 |
Sienna Biopharmaceuticals, Inc. | 10,803 | -- | -- | -- | -- | (5,101) | 5,702 |
Silicon Laboratories, Inc. | 298,944 | 7,915 | 18,435 | -- | 6,746 | (15,416) | 279,754 |
Syros Pharmaceuticals, Inc. | 10,854 | 5,650 | 477 | -- | 14 | (7,720) | 8,321 |
Syros Pharmaceuticals, Inc. | 13,929 | -- | -- | -- | -- | (7,541) | 6,388 |
Translate Bio, Inc. | -- | 5,454 | 61 | -- | -- | (2,356) | 3,037 |
Translate Bio, Inc. | -- | 17,962 | -- | -- | -- | (4,269) | 13,693 |
Total | $4,318,929 | $489,362 | $873,219 | $-- | $297,609 | $(494,610) | $3,214,945 |
(a) Includes the value of securities delivered through in-kind transactions, if applicable.
Investment Valuation
The following is a summary of the inputs used, as of November 30, 2018, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
(Amounts in thousands) | ||||
Investments in Securities: | ||||
Equities: | ||||
Communication Services | $5,573,112 | $5,251,164 | $77,553 | $244,395 |
Consumer Discretionary | 8,282,217 | 8,130,421 | -- | 151,796 |
Consumer Staples | 1,959,959 | 1,895,713 | 34,122 | 30,124 |
Energy | 755,648 | 755,648 | -- | -- |
Financials | 1,034,070 | 1,025,971 | -- | 8,099 |
Health Care | 7,613,229 | 6,955,585 | 67,683 | 589,961 |
Industrials | 2,134,416 | 1,986,503 | -- | 147,913 |
Information Technology | 13,366,392 | 13,214,880 | 3,023 | 148,489 |
Materials | 164,888 | 164,888 | -- | -- |
Real Estate | 120,227 | 110,924 | -- | 9,303 |
Money Market Funds | 560,623 | 560,623 | -- | -- |
Total Investments in Securities: | $41,564,781 | $40,052,320 | $182,381 | $1,330,080 |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value:
(Amounts in thousands) | |
Investments in Securities: | |
Equities - Health Care | |
Beginning Balance | $489,611 |
Net Realized Gain (Loss) on Investment Securities | -- |
Net Unrealized Gain (Loss) on Investment Securities | 33,500 |
Cost of Purchases | 100,317 |
Proceeds of Sales | (33,467) |
Amortization/Accretion | -- |
Transfers into Level 3 | -- |
Transfers out of Level 3 | -- |
Ending Balance | $589,961 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at November 30, 2018 | $43,136 |
Other Investments in Securities | |
Beginning Balance | $618,926 |
Net Realized Gain (Loss) on Investment Securities | 6,437 |
Net Unrealized Gain (Loss) on Investment Securities | 89,352 |
Cost of Purchases | 106,569 |
Proceeds of Sales | (117,374) |
Amortization/Accretion | -- |
Transfers into Level 3 | 36,209 |
Transfers out of Level 3 | -- |
Ending Balance | $740,119 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at November 30, 2018 | $97,660 |
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, and proceeds of sales includes securities delivered through in-kind transactions. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliations are included in Net Gain (Loss) on the Fund's Statement of Operations.
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amounts) | November 30, 2018 | |
Assets | ||
Investment in securities, at value (including securities loaned of $506,840) — See accompanying schedule: Unaffiliated issuers (cost $17,289,929) | $37,789,213 | |
Fidelity Central Funds (cost $560,614) | 560,623 | |
Other affiliated issuers (cost $2,298,057) | 3,214,945 | |
Total Investment in Securities (cost $20,148,600) | $41,564,781 | |
Cash | 53 | |
Restricted cash | 1,141 | |
Receivable for investments sold | 111,296 | |
Receivable for fund shares sold | 40,801 | |
Dividends receivable | 31,592 | |
Distributions receivable from Fidelity Central Funds | 894 | |
Prepaid expenses | 75 | |
Other receivables | 2,609 | |
Total assets | 41,753,242 | |
Liabilities | ||
Payable for investments purchased | $26,655 | |
Payable for fund shares redeemed | 105,445 | |
Accrued management fee | 20,891 | |
Other affiliated payables | 3,723 | |
Other payables and accrued expenses | 2,708 | |
Collateral on securities loaned | 510,679 | |
Total liabilities | 670,101 | |
Net Assets | $41,083,141 | |
Net Assets consist of: | ||
Paid in capital | $17,650,444 | |
Total distributable earnings (loss) | 23,432,697 | |
Net Assets | $41,083,141 | |
Net Asset Value and Maximum Offering Price | ||
Growth Company: | ||
Net Asset Value, offering price and redemption price per share ($25,615,326 ÷ 1,363,419 shares) | $18.79 | |
Class K: | ||
Net Asset Value, offering price and redemption price per share ($15,467,815 ÷ 822,806 shares) | $18.80 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Amounts in thousands | Year ended November 30, 2018 | |
Investment Income | ||
Dividends | $275,393 | |
Special dividends | 56,805 | |
Income from Fidelity Central Funds | 13,385 | |
Total income | 345,583 | |
Expenses | ||
Management fee | ||
Basic fee | $238,966 | |
Performance adjustment | 73,989 | |
Transfer agent fees | 43,726 | |
Accounting and security lending fees | 2,403 | |
Custodian fees and expenses | 885 | |
Independent trustees' fees and expenses | 226 | |
Registration fees | 308 | |
Audit | 201 | |
Legal | 69 | |
Interest | 6 | |
Miscellaneous | 293 | |
Total expenses before reductions | 361,072 | |
Expense reductions | (1,180) | |
Total expenses after reductions | 359,892 | |
Net investment income (loss) | (14,309) | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 3,347,606 | |
Fidelity Central Funds | 21 | |
Other affiliated issuers | 297,557 | |
Foreign currency transactions | (255) | |
Total net realized gain (loss) | 3,644,929 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers (net of decrease in deferred foreign taxes of $1,906) | (493,895) | |
Fidelity Central Funds | (16) | |
Other affiliated issuers | (494,610) | |
Assets and liabilities in foreign currencies | (214) | |
Total change in net unrealized appreciation (depreciation) | (988,735) | |
Net gain (loss) | 2,656,194 | |
Net increase (decrease) in net assets resulting from operations | $2,641,885 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Amounts in thousands | Year ended November 30, 2018 | Year ended November 30, 2017 |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $(14,309) | $904 |
Net realized gain (loss) | 3,644,929 | 5,300,359 |
Change in net unrealized appreciation (depreciation) | (988,735) | 6,673,348 |
Net increase (decrease) in net assets resulting from operations | 2,641,885 | 11,974,611 |
Distributions to shareholders | (1,899,438) | – |
Distributions to shareholders from net investment income | – | (37,300) |
Distributions to shareholders from net realized gain | – | (2,014,292) |
Total distributions | (1,899,438) | (2,051,592) |
Share transactions - net increase (decrease) | (1,331,921) | (4,103,390) |
Total increase (decrease) in net assets | (589,474) | 5,819,629 |
Net Assets | ||
Beginning of period | 41,672,615 | 35,852,986 |
End of period | $41,083,141 | $41,672,615 |
Other Information | ||
Distributions in excess of net investment income end of period | $(931) |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Growth Company Fund
Years ended November 30, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share DataA | |||||
Net asset value, beginning of period | $18.53 | $14.28 | $14.35 | $13.65 | $12.47 |
Income from Investment Operations | |||||
Net investment income (loss)B | (.01)C | (.01) | .01 | – | .02 |
Net realized and unrealized gain (loss) | 1.12 | 5.08 | .47 | 1.17 | 2.05 |
Total from investment operations | 1.11 | 5.07 | .48 | 1.17 | 2.07 |
Distributions from net investment income | – | (.01) | – | (.01) | (.02) |
Distributions from net realized gain | (.85) | (.81) | (.55) | (.46) | (.87) |
Total distributions | (.85) | (.82) | (.55) | (.47) | (.89) |
Net asset value, end of period | $18.79 | $18.53 | $14.28 | $14.35 | $13.65 |
Total ReturnD | 6.19% | 37.34% | 3.48% | 8.90% | 17.80% |
Ratios to Average Net AssetsE,F | |||||
Expenses before reductions | .85% | .85% | .77% | .88% | .82% |
Expenses net of fee waivers, if any | .85% | .85% | .77% | .87% | .82% |
Expenses net of all reductions | .85% | .85% | .77% | .87% | .82% |
Net investment income (loss) | (.07)%C | (.04)% | .07% | (.01)% | .12% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $25,615 | $25,256 | $21,114 | $23,513 | $24,165 |
Portfolio turnover rateG | 18%H | 15%H | 19%H | 18%H | 12%H |
A Per share amounts have been adjusted to reflect the impact of the 10 for 1 share split that occurred on August 10, 2018.
B Calculated based on average shares outstanding during the period.
C Net investment income per share reflects a large, non-recurring dividend which amounted to $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.19) %.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
H Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Fidelity Growth Company Fund Class K
Years ended November 30, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share DataA | |||||
Net asset value, beginning of period | $18.52 | $14.27 | $14.34 | $13.64 | $12.47 |
Income from Investment Operations | |||||
Net investment income (loss)B | –C,D | .01 | .02 | .01 | .03 |
Net realized and unrealized gain (loss) | 1.13 | 5.07 | .47 | 1.17 | 2.05 |
Total from investment operations | 1.13 | 5.08 | .49 | 1.18 | 2.08 |
Distributions from net investment income | –D | (.02) | (.01) | (.03) | (.04) |
Distributions from net realized gain | (.85) | (.81) | (.55) | (.45) | (.87) |
Total distributions | (.85) | (.83) | (.56) | (.48) | (.91) |
Net asset value, end of period | $18.80 | $18.52 | $14.27 | $14.34 | $13.64 |
Total ReturnE | 6.28% | 37.47% | 3.59% | 9.01% | 17.93% |
Ratios to Average Net AssetsF,G | |||||
Expenses before reductions | .76% | .75% | .66% | .77% | .71% |
Expenses net of fee waivers, if any | .76% | .75% | .66% | .77% | .71% |
Expenses net of all reductions | .76% | .75% | .66% | .77% | .71% |
Net investment income (loss) | .02%C | .06% | .17% | .09% | .24% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $15,468 | $16,416 | $14,739 | $17,587 | $18,242 |
Portfolio turnover rateH | 18%I | 15%I | 19%I | 18%I | 12%I |
A Per share amounts have been adjusted to reflect the impact of the 10 for 1 share split that occurred on August 10, 2018.
B Calculated based on average shares outstanding during the period.
C Net investment income per share reflects a large, non-recurring dividend which amounted to $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been (.11) %.
D Amount represents less than $.005 per share.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
H Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
I Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended November 30, 2018
(Amounts in thousands except percentages)
1. Organization.
Fidelity Growth Company Fund (the Fund) is a fund of Fidelity Mt. Vernon 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 Growth Company and Class K shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class.
Effective August 10, 2018, each class underwent a 10 for 1 share split. The effect of the share split transaction was to multiply the number of outstanding shares of the Class by a split factor of 10:1, with a corresponding decrease in net asset value (NAV) per share. This event does not impact the overall net assets of each class. The per share data presented in the Financial Highlights and Share Transactions presented in the Notes to Financial Statements have been retroactively adjusted to reflect this share split.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investments Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy. Equity securities, including restricted securities, for which observable inputs are not available are valued using alternate valuation approaches, including the market approach and the income approach and are categorized as Level 3 in the hierarchy. The market approach generally consists of using comparable market transactions while the income approach generally consists of using the net present value of estimated future cash flows, adjusted as appropriate for liquidity, credit, market and/or other risk factors.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
The following provides information on Level 3 securities held by the Fund that were valued at period end based on unobservable inputs. These amounts exclude valuations provided by a broker.
Asset Type | Fair Value | Valuation Technique(s) | Unobservable Input | Amount or Range/Weighted Average | Impact to Valuation from an Increase in Input(a) |
Equities | $1,330,080 | Market comparable | Enterprise value/Sales multiple (EV/S) | 1.2 - 7.2 / 2.6 | Increase |
Transaction price | $0.46 - $411.85 / $154.71 | Increase | |||
Enterprise value/EBITDA multiple (EV/EBITDA) | 10.5 | Increase | |||
Discount rate | 30.0% - 76.0% / 43.9% | Decrease | |||
Discount for lack of marketability | 10.0% - 15.0% / 14.7% | Decrease | |||
Premium rate | 40.0% | Increase | |||
Conversion ratio | 3.0 | Increase | |||
Proxy discount | 4.2% - 21.3% / 7.9% | Decrease | |||
Liquidity preference | $14.90 | Increase | |||
Market approach | Transaction price | $0.81 - $215.00 / $57.99 | Increase | ||
Discount for lack of marketability | 10.0% | Decrease | |||
Conversion ratio | 1.6 | Increase | |||
Discount cash flow | Discount rate | 8.0% | Decrease | ||
Discount for lack of marketability | 10.0% | Decrease | |||
Recovery value | Recovery value | 0.0% - 1.0% / 0.7% | Increase |
(a) Represents the expected directional change in the fair value of the Level 3 investments that would result from an increase in the corresponding input. A decrease to the unobservable input would have the opposite effect. Significant changes in these inputs could result in significantly higher or lower fair value measurements.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of November 30, 2018, as well as a roll forward of Level 3 investments, is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. Large, non-recurring dividends recognized by the Fund are presented separately on the Statement of Operations as "Special Dividends" and the impact of these dividends is presented in the Financial Highlights. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan) for the Fund, certain independent Trustees have elected to defer receipt of a portion of their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees of $2,270 are included in the accompanying Statement of Assets and Liabilities in other receivables and other payables and accrued expenses, respectively.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. As of November 30, 2018, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), redemptions in kind, deferred trustees compensation, net operating losses and losses deferred due to wash sales.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
Gross unrealized appreciation | $23,035,582 |
Gross unrealized depreciation | (1,851,754) |
Net unrealized appreciation (depreciation) | $21,183,828 |
Tax Cost | $20,380,953 |
The tax-based components of distributable earnings as of period end were as follows:
Undistributed long-term capital gain | $2,251,210 |
Net unrealized appreciation (depreciation) on securities and other investments | $21,183,758 |
The tax character of distributions paid was as follows:
November 30, 2018 | November 30, 2017 | |
Ordinary Income | $1,324 | $ 37,300 |
Long-term Capital Gains | 1,898,114 | 2,014,292 |
Total | $1,899,438 | $ 2,051,592 |
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
Consolidated Subsidiary. The Fund invests in certain investments through a wholly-owned subsidiary ("Subsidiary"), which may be subject to federal and state taxes upon disposition.
As of period end, the Fund held an investment of $242,941 in these Subsidiaries, representing .59% of the Fund's net assets. The financial statements have been consolidated and include accounts of the Fund and each Subsidiary. Accordingly, all inter-company transactions and balances have been eliminated.
Any cash held by the Subsidiaries is restricted as to its use and is presented as Restricted cash in the Statement of Assets and Liabilities.
New Rule Issuance. During August 2018, the U.S. Securities and Exchange Commission issued Final Rule Release No. 33-10532, Disclosure Update and Simplification. This Final Rule includes amendments specific to registered investment companies that are intended to eliminate overlap in disclosure requirements between Regulation S-X and GAAP. In accordance with these amendments, certain line-items in the Fund's financial statements have been combined or removed for the current period as outlined in the table below.
Financial Statement | Current Line-Item Presentation | Prior Line-Item Presentation |
Statement of Assets and Liabilities | Total distributable earnings (loss) | Undistributed/Distributions in excess of/Accumulated net investment income (loss) Accumulated/Undistributed net realized gain (loss) Net unrealized appreciation (depreciation) |
Statement of Changes in Net Assets | N/A - removed | Undistributed/Distributions in excess of/Accumulated net investment income (loss) end of period |
Statement of Changes in Net Assets | Distributions to shareholders | Distributions to shareholders from net investment income Distributions to shareholders from net realized gain |
Distributions to Shareholders Note to Financial Statements | Distributions to shareholders | Distributions to shareholders from net investment income Distributions to shareholders from net realized gain |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and in-kind transactions, aggregated $8,064,714 and $9,288,362, respectively.
Unaffiliated Redemptions In-Kind. During the period, 93,489* shares of the Fund were redeemed in-kind for investments and cash with a value of $1,799,315. The net realized gain of $1,264,532 on investments delivered through the in-kind redemptions is included in the accompanying Statement of Operations. The amount of the redemptions is included in share transactions activity shown in the accompanying Statement of Changes in Net Assets as well as the Notes to Financial Statements. The Fund recognized no gain or loss for federal income tax purposes.
Prior Fiscal Year Redemptions In-Kind.
During the prior period, 346,490* shares of the Fund held by unaffiliated entities were redeemed in-kind for investments and cash with a value of $5,209,289. The Fund had a net realized gain of $3,322,910 on investments delivered through the 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.
* Share activity prior to August 10, 2018 has been adjusted to reflect the impact of the 10 for 1 share split occurred on that date.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .24% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of +/- .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of Growth Company as compared to its benchmark index, the Russell 3000 Growth Index, over the same 36 month performance period. For the reporting period, the total annual management fee rate, including the performance adjustment, was .71% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of Growth Company, except for Class K. FIIOC receives an asset-based fee of Class K's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
Amount | % of Class-Level Average Net Assets | |
Growth Company | $35,951 | .13 |
Class K | 7,775 | .05 |
$43,726 |
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions. For the period, the fees were equivalent to an annual rate of .01%.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $242 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with Fidelity Management & Research Company (FMR) or other affiliated entities of FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Loan Balance | Weighted Average Interest Rate | Interest Expense |
Borrower | $25,753 | 1.65% | $6 |
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
Other. During the period, the investment adviser reimbursed the Fund for certain losses in the amount of $711.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $119 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. The value of securities loaned to FCM at period end was $41,618. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $11,925, including $1,656 from securities loaned to FCM.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $754 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $9.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $417.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Year ended November 30, 2018 | Year ended November 30, 2017 | |
Distributions to shareholders | ||
Growth Company | $1,149,671 | $– |
Class K | 749,767 | – |
Total | $1,899,438 | $– |
From net investment income | ||
Growth Company | $– | $13,724 |
Class K | – | 23,576 |
Total | $– | $37,300 |
From net realized gain | ||
Growth Company | $– | $1,190,770 |
Class K | – | 823,522 |
Total | $– | $2,014,292 |
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 | |
Year ended November 30, 2018(a) | Year ended November 30, 2017(a) | Year ended November 30, 2018 | Year ended November 30, 2017 | |
Growth Company | ||||
Shares sold | 248,528 | 171,270 | $4,759,280 | $2,740,883 |
Reinvestment of distributions | 58,986 | 80,920 | 1,059,253 | 1,134,062 |
Shares redeemed | (307,305)(b) | (367,910)(c) | (5,899,459)(b) | (5,635,831)(c) |
Net increase (decrease) | 209 | (115,720) | $(80,926) | $(1,760,886) |
Class K | ||||
Shares sold | 187,471 | 195,210 | $3,588,943 | $3,093,032 |
Reinvestment of distributions | 41,745 | 60,510 | 749,542 | 847,098 |
Shares redeemed | (292,620)(b) | (402,090)(c) | (5,589,480)(b) | (6,282,634)(c) |
Net increase (decrease) | (63,404) | (146,370) | $(1,250,995) | $(2,342,504) |
(a) Share activity prior to August 10, 2018 has been adjusted to reflect the impact of the 10 for 1 share split that occurred on that date.
(b) Amount includes in-kind redemptions (see the Redemptions In-Kind note for additional details).
(c) Amount includes in-kind redemptions (see the Prior Fiscal Year Redemptions In-Kind note for additional details).
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.
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Mt. Vernon Street Trust and Shareholders of Fidelity Growth Company Fund:
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statement of assets and liabilities of Fidelity Growth Company Fund (the "Fund"), a fund of Fidelity Mt. Vernon Street Trust, including the schedule of investments, as of November 30, 2018, and the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of November 30, 2018, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund's financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of November 30, 2018, by correspondence with the custodians and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/ Deloitte & Touche LLP
Boston, Massachusetts
January 16, 2019
We have served as the auditor of one or more of the Fidelity investment companies since 1999.
Trustees and Officers
The Trustees, Members of the Advisory Board (if any), and officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Except for Michael E. Wiley, each of the Trustees oversees 281 funds. Mr. Wiley oversees 192 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the fund is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund’s Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-835-5092.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Board Structure and Oversight Function. James C. Curvey is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Ned C. Lautenbach serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and other equity funds. The asset allocation funds may invest in Fidelity® funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. In addition, the Independent Trustees have worked with Fidelity to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
James C. Curvey (1935)
Year of Election or Appointment: 2007
Trustee
Chairman of the Board of Trustees
Mr. Curvey also serves as Trustee of other Fidelity® funds. Mr. Curvey is Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey is an Overseer Emeritus for the Boston Symphony Orchestra, a Director of Artis-Naples, and a Trustee of Brewster Academy in Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-2018), Director of Fidelity Investments Money Management, Inc. (investment adviser firm, 2009-2014) and a Director of FMR and FMR Co., Inc. (investment adviser firms, 2007-2014).
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), as a member of the Independent Directors Council (IDC) Governing Council (2010-2015), and as a member of the Board of Directors for The Brookville Center for Children’s Services, Inc. (2009-2017). Mr. Dirks is a member of the Finance Committee (2016-present) and Board of Directors (2017-present) and is Treasurer (2018-present) of the Asolo Repertory Theatre.
Donald F. Donahue (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Donahue also serves as a Trustee of other Fidelity® funds. Mr. Donahue is President and Chief Executive Officer of Miranda Partners, LLC (risk consulting for the financial services industry, 2012-present). Previously, Mr. Donahue served as a Member of the Advisory Board of certain Fidelity® funds (2015-2018) and Chief Executive Officer (2006-2012), Chief Operating Officer (2003-2006), and Managing Director, Customer Marketing and Development (1999-2003) of The Depository Trust & Clearing Corporation (financial markets infrastructure). Mr. Donahue serves as a Member (2007-present) and Co-Chairman (2016-present) of the Board of Directors of United Way of New York, Member of the Board of Directors of NYC Leadership Academy (2012-present) and Member of the Board of Advisors of Ripple Labs, Inc. (financial services, 2015-present). He also served as Chairman (2010-2012) and Member of the Board of Directors (2012-2013) of Omgeo, LLC (financial services), Treasurer of United Way of New York (2012-2016), and Member of the Board of Directors of XBRL US (financial services non-profit, 2009-2012) and the International Securities Services Association (2009-2012).
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2014-2017) and a member (2010-2017) of the Board of Directors of Dave & Buster’s Entertainment, Inc. (restaurant and entertainment complexes), as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association, and as a member of the Board of Directors for The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), Earth Fare, Inc. (retail grocery, 2010-2014), and The Western Union Company (global money transfer, 2006-2011).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as Chair (2018-present) and Member (2013-present) of the Board of Governors, State University System of Florida and is a member of the Council on Foreign Relations (1994-present). He is also a member and has most recently served as Chairman of the Board of Directors of Artis-Naples (2012-present). Previously, Mr. Lautenbach served as a member and then Lead Director of the Board of Directors of Eaton Corporation (diversified industrial, 1997-2016). He was also a Partner and Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007). In addition, Mr. Lautenbach also had a 30-year career with IBM (technology company) during which time he served as Senior Vice President and a member of the Corporate Executive Committee (1968-1998).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-2018).
Cornelia M. Small (1944)
Year of Election or Appointment: 2005
Trustee
Ms. Small also serves as Trustee of other Fidelity® funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.
Garnett A. Smith (1947)
Year of Election or Appointment: 2018
Trustee
Mr. Smith also serves as Trustee of other Fidelity® funds. Prior to Mr. Smith's retirement, he served as Chairman and Chief Executive Officer of Inbrand Corp. (manufacturer of personal absorbent products, 1990-1997). He also served as President (1986-1990) of Inbrand Corp. Prior to his employment with Inbrand Corp., he was employed by a retail fabric chain and North Carolina National Bank. In addition, Mr. Smith served as a Member of the Advisory Board of certain Fidelity® funds (2012-2013) and as a board member of the Jackson Hole Land Trust (2009-2012).
David M. Thomas (1949)
Year of Election or Appointment: 2008
Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present) and as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), a Director of Fortune Brands, Inc. (consumer products, 2000-2011), and a member of the Board of Trustees of the University of Florida (2013-2018).
Michael E. Wiley (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Wiley also serves as Trustee or Member of the Advisory Board of other Fidelity® funds. Mr. Wiley serves as a Director of High Point Resources (exploration and production, 2005-present). Previously, Mr. Wiley served as a Director of Andeavor Corporation (independent oil refiner and marketer, 2005-2018), a Director of Andeavor Logistics LP (natural resources logistics, 2015-2018), a Director of Post Oak Bank (privately-held bank, 2004-2018), a Director of Asia Pacific Exploration Consolidated (international oil and gas exploration and production, 2008-2013), a member of the Board of Trustees of the University of Tulsa (2000-2006; 2007-2010), a Senior Energy Advisor of Katzenbach Partners, LLC (consulting, 2006-2007), an Advisory Director of Riverstone Holdings (private investment), a Director of Spinnaker Exploration Company (exploration and production, 2001-2005) and Chairman, President, and CEO of Baker Hughes, Inc. (oilfield services, 2000-2004).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Advisory Board Members and Officers:
Correspondence intended for a Member of the Advisory Board (if any) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235. Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Vicki L. Fuller (1957)
Year of Election or Appointment: 2018
Member of the Advisory Board
Ms. Fuller also serves as Member of the Advisory Board of other Fidelity® funds. Ms. Fuller serves as a member of the Board of Directors, Audit Committee, and Nominating and Governance Committee of The Williams Companies, Inc. (natural gas infrastructure, 2018-present). Previously, Ms. Fuller served as the Chief Investment Officer of the New York State Common Retirement Fund (2012-2018) and held a variety of positions at AllianceBernstein L.P. (global asset management, 1985-2012), including Managing Director (2006-2012) and Senior Vice President and Senior Portfolio Manager (2001-2006).
Peter S. Lynch (1944)
Year of Election or Appointment: 2003
Member of the Advisory Board
Mr. Lynch also serves as Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of FMR (investment adviser firm) and FMR Co., Inc. (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).
Carol B. Tomé (1957)
Year of Election or Appointment: 2018
Member of the Advisory Board
Ms. Tomé also serves as Member of the Advisory Board of other Fidelity® funds. Ms. Tomé is Chief Financial Officer (2001-present) and Executive Vice President of Corporate Services (2007-present) of The Home Depot, Inc. (home improvement retailer) and a Director (2003-present) and Chair of the Audit Committee (2004-present) of United Parcel Service, Inc. (package delivery and supply chain management). Previously, Ms. Tomé served as Trustee of certain Fidelity® funds (2017), Senior Vice President of Finance and Accounting/Treasurer (2000-2007) and Vice President and Treasurer (1995-2000) of The Home Depot, Inc. and Chair of the Board (2010-2012), Vice Chair of the Board (2009 and 2013), and a Director (2008-2013) of the Federal Reserve Bank of Atlanta. Ms. Tomé is also a director or trustee of many community and professional organizations.
Elizabeth Paige Baumann (1968)
Year of Election or Appointment: 2017
Anti-Money Laundering (AML) Officer
Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer (2012-present) and Senior Vice President (2014-present) of FMR LLC (diversified financial services company) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as AML Officer of the funds (2012-2016), and Vice President (2007-2014) and Deputy Anti-Money Laundering Officer (2007-2012) of FMR LLC.
John J. Burke III (1964)
Year of Election or Appointment: 2018
Chief Financial Officer
Mr. Burke also serves as Chief Financial Officer of other funds. Mr. Burke serves as Head of Investment Operations for Fidelity Fund and Investment Operations (2018-present) and is an employee of Fidelity Investments (1998-present). Previously Mr. Burke served as head of Asset Management Investment Operations (2012-2018).
William C. Coffey (1969)
Year of Election or Appointment: 2018
Secretary and Chief Legal Officer (CLO)
Mr. Coffey also serves as Secretary and CLO of other funds. Mr. Coffey serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2018-present); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2018-present); and CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2018-present). He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Assistant Secretary of certain funds (2009-2018) and as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Timothy M. Cohen (1969)
Year of Election or Appointment: 2018
Vice President
Mr. Cohen also serves as Vice President of other funds. Mr. Cohen serves as Co-Head of Global Equity Research (2016-present), a Director of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present), and is an employee of Fidelity Investments. Previously, Mr. Cohen served as Chief Investment Officer - Equity and a Director of Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2013-2015) and as a Director of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2017).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds. Mr. Davis serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present), and is an employee of Fidelity Investments (2008-present). Previously, Mr. Deberghes served as President and Treasurer of certain Fidelity® funds (2013-2018). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). Previously, Mr. Deberghes served in other fund officer roles.
Laura M. Del Prato (1964)
Year of Election or Appointment: 2018
Assistant Treasurer
Ms. Del Prato also serves as an officer of other funds. Ms. Del Prato is an employee of Fidelity Investments (2017-present). Prior to joining Fidelity Investments, Ms. Del Prato served as a Managing Director and Treasurer of the JPMorgan Mutual Funds (2014-2017). Prior to JPMorgan, Ms. Del Prato served as a partner at Cohen Fund Audit Services (accounting firm, 2012-2013) and KPMG LLP (accounting firm, 2004-2012).
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2005-present). Previously, Mr. Hogan served as Assistant Treasurer of certain Fidelity® funds (2016-2018).
Pamela R. Holding (1964)
Year of Election or Appointment: 2018
Vice President
Ms. Holding also serves as Vice President of other funds. Ms. Holding serves as Co-Head of Global Equity Research (2018-present) and is an employee of Fidelity Investments (2013-present).
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight, serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
Rieco E. Mello (1969)
Year of Election or Appointment: 2017
Assistant Treasurer
Mr. Mello also serves as Assistant Treasurer of other funds. Mr. Mello serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (1995-present).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. Ms. Smith serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), is an employee of Fidelity Investments (2009-present), and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Assistant Treasurer (2013-2018) and Deputy Treasurer (2013-2016) of certain Fidelity® funds.
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (June 1, 2018 to November 30, 2018).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee, which was eliminated effective August 1, 2018, is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee, which was eliminated effective August 1, 2018, is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
Annualized Expense Ratio-A | Beginning Account Value June 1, 2018 | Ending Account Value November 30, 2018 | Expenses Paid During Period-B June 1, 2018 to November 30, 2018 | |
Growth Company | .83% | |||
Actual | $1,000.00 | $946.60 | $4.05 | |
Hypothetical-C | $1,000.00 | $1,020.91 | $4.20 | |
Class K | .75% | |||
Actual | $1,000.00 | $947.00 | $3.66 | |
Hypothetical-C | $1,000.00 | $1,021.31 | $3.80 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period).
C 5% return per year before expenses
Distributions (Unaudited)
The Board of Trustees of Fidelity Growth Company Fund voted to pay to shareholders of record at the opening of business on record date, the following distributions per share derived from capital gains realized from sales of portfolio securities.
Pay Date | Record Date | Capital Gains | |
Fidelity Growth Company Fund | |||
Growth Company | 12/27/18 | 12/26/18 | $1.022 |
Class K | 12/27/18 | 12/26/18 | $1.022 |
The fund hereby designates as a capital gain dividend with respect to the taxable year ended November 30, 2018, $2,401,914,108, or, if subsequently determined to be different, the net capital gain of such year.
Class K designates 100% of the dividend distributed during the fiscal year as qualifying for the dividends–received deduction for corporate shareholders.
Class K designates 100% of the dividend distributed during the fiscal year as amounts which may be taken into account as a dividend for purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code.
The fund will notify shareholders in January 2019 of amounts for use in preparing 2018 income tax returns.
Board Approval of Investment Advisory Contracts
Fidelity Growth Company Fund
At its July 2018 meeting, the Board of Trustees, including the Independent Trustees (together, the Board), voted to continue the management contract with Fidelity Management & Research Company (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund for six months through January 31, 2019, in connection with the reunification of the Fidelity Equity High Income Funds Board, which oversees the fund, and the Sector Portfolios Board.
The Board considered that the approval of the fund's Advisory Contracts will not result in any changes in (i) the investment process or strategies employed in the management of the fund's assets; (ii) the fees and expenses paid by shareholders; (iii) the nature, extent or quality of services provided under the fund's Advisory Contracts; or (iv) the day-to-day management of the fund or the persons primarily responsible for such management. The Board concluded that the fund's Advisory Contracts are fair and reasonable, and that the fund's Advisory Contracts should be renewed, without modification, through January 31, 2019, with the understanding that the Board will consider the annual renewal for a full one year period in January 2019.
In connection with its consideration of future renewals of the fund's Advisory Contracts, the Board will consider: (i) the nature, extent and quality of services provided to the fund, including shareholder and administrative services and investment performance; (ii) the competitiveness of the management fee and total expenses for the fund; (iii) the costs of the services and profitability, including the revenues earned and the expenses incurred in conducting the business of developing, marketing, distributing, managing, administering, and servicing the fund and its shareholders, to the extent applicable, as well as potential fall-out benefits from Fidelity's non-fund businesses; and (iv) whether there have been economies of scale in respect of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is the potential for realization of any further economies.
Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board ultimately concluded that the fund's management fee structure is fair and reasonable, and that the continuation of the fund's Advisory Contracts should be approved.
Corporate Headquarters
245 Summer St.
Boston, MA 02210
www.fidelity.com
GCF-K-ANN-0119
1.863213.110
Fidelity® New Millennium Fund® Annual Report November 30, 2018 |
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. © 2019 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
For the periods ended November 30, 2018 | Past 1 year | Past 5 years | Past 10 years |
Fidelity® New Millennium Fund® | 3.19% | 8.54% | 15.16% |
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity® New Millennium Fund® on November 30, 2008.
The chart shows how the value of your investment would have changed, and also shows how the S&P 500® Index performed over the same period.
Period Ending Values | ||
$41,011 | Fidelity® New Millennium Fund® | |
$38,109 | S&P 500® Index |
Management's Discussion of Fund Performance
Market Recap: The S&P 500® index gained 6.27% for the 12 months ending November 30, 2018, as the U.S. equity bellwether declined sharply in October after climbing steadily beginning in May and achieving a record close in late September. Rising U.S. Treasury yields and concern about peaking corporate earnings growth sent many investors fleeing from risk assets at a time when they were still dealing with lingering uncertainty related to global trade and the U.S. Federal Reserve picking up the pace of interest rate hikes. The index returned -6.84% in October alone, its largest monthly drop in roughly seven years, and then endured a highly volatile November in which it gained 2.04%. For the full year, growth stocks within the index maintained a sizable advantage over their value counterparts, extending a trend that began in early 2017. A number of economically sensitive sectors dropped to the bottom of the 12-month performance scale, with materials (-7%) and energy (-2%) faring worst, followed by industrials (-1%) and financials (0%). In contrast, the defensive-oriented health care sector gained about 16% to lead the way. Consumer discretionary and information technology were rattled in October but earlier strength resulted in each advancing roughly 13% for the full 12 months. The newly reconstituted communication services sector, which includes dividend-rich telecom stocks, rose about 4%. Real estate (+5%), consumer staples (+3%) and utilities (+2%) also advanced but lagged the broader market.Comments from Portfolio Manager John Roth: For the fiscal year, the fund gained 3.19%, trailing the benchmark S&P 500® index. Security selection mainly detracted from the fund’s performance versus the benchmark, particularly my choices in the consumer discretionary and financials sectors. Among individual stocks, it hurt most to avoid Microsoft (+34%) and Amazon.com (+44%), two large index components that didn’t align with my strategy. Each rallied strongly for much of the period. The fund’s stake overweighted stake in multinational conglomerate General Electric (GE) also declined, due to investors’ concerns about the company’s debt, insurance liability and the health of its power business. Elsewhere, the fund's foreign holdings hurt versus the benchmark, hampered by a surging U.S. dollar. In particular, a position in Eurofins Scientific, a Luxembourg-based provider of testing and support services for the pharmaceutical, food and consumer products industries, detracted. Conversely, not owning index member and social media giant Facebook added value. Facebook shares declined about 21% for the period amid escalating concerns over users’ privacy. The company also reported slowing user growth and weak guidance. The fund’s stake in DexCom, a leader in continuous glucose monitoring systems for diabetes management, was another plus. I sold DexCom from the fund by period end to take profit.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Investment Summary (Unaudited)
Top Ten Stocks as of November 30, 2018
% of fund's net assets | |
Exxon Mobil Corp. | 3.0 |
Bank of America Corp. | 2.6 |
Cisco Systems, Inc. | 2.1 |
Berkshire Hathaway, Inc. Class B | 2.1 |
UnitedHealth Group, Inc. | 2.1 |
Comcast Corp. Class A | 2.1 |
Walmart, Inc. | 2.0 |
American International Group, Inc. | 1.9 |
ARAMARK Holdings Corp. | 1.9 |
Procter & Gamble Co. | 1.8 |
21.6 |
Top Five Market Sectors as of November 30, 2018
% of fund's net assets | |
Financials | 18.4 |
Health Care | 12.3 |
Energy | 12.0 |
Consumer Discretionary | 11.6 |
Industrials | 10.3 |
Asset Allocation (% of fund's net assets)
As of November 30, 2018* | ||
Stocks | 92.6% | |
Convertible Securities | 1.4% | |
Other Investments | 0.1% | |
Short-Term Investments and Net Other Assets (Liabilities) | 5.9% |
* Foreign investments - 15.0%
Schedule of Investments November 30, 2018
Showing Percentage of Net Assets
Common Stocks - 92.6% | |||
Shares | Value (000s) | ||
COMMUNICATION SERVICES - 3.9% | |||
Diversified Telecommunication Services - 1.5% | |||
Verizon Communications, Inc. | 794,000 | $47,878 | |
Entertainment - 0.3% | |||
Trion World, Inc. (a)(b)(c) | 1,062,359 | 0 | |
WME Entertainment Parent, LLC Class A (a)(b)(c)(d) | 3,761,973 | 11,060 | |
11,060 | |||
Media - 2.1% | |||
Comcast Corp. Class A | 1,727,200 | 67,378 | |
TOTAL COMMUNICATION SERVICES | 126,316 | ||
CONSUMER DISCRETIONARY - 10.9% | |||
Automobiles - 1.1% | |||
Fiat Chrysler Automobiles NV | 1,532,200 | 25,419 | |
Tesla, Inc. (a) | 29,900 | 10,479 | |
35,898 | |||
Hotels, Restaurants & Leisure - 3.1% | |||
ARAMARK Holdings Corp. | 1,571,300 | 59,804 | |
Del Frisco's Restaurant Group, Inc. (a) | 640,600 | 4,401 | |
Drive Shack, Inc. (a) | 2,114,780 | 9,876 | |
U.S. Foods Holding Corp. (a) | 732,600 | 24,308 | |
98,389 | |||
Household Durables - 1.9% | |||
D.R. Horton, Inc. | 550,700 | 20,497 | |
Newell Brands, Inc. | 550,700 | 12,886 | |
NVR, Inc. (a) | 5,100 | 12,495 | |
Toll Brothers, Inc. | 474,813 | 15,655 | |
61,533 | |||
Leisure Products - 0.1% | |||
New Academy Holding Co. LLC unit (a)(b)(c)(e) | 66,000 | 2,129 | |
Multiline Retail - 1.0% | |||
Dollar General Corp. | 207,500 | 23,030 | |
Dollar Tree, Inc. (a) | 102,500 | 8,894 | |
31,924 | |||
Specialty Retail - 2.0% | |||
AutoZone, Inc. (a) | 31,700 | 25,648 | |
Tiffany & Co., Inc. | 156,900 | 14,278 | |
TJX Companies, Inc. | 530,000 | 25,891 | |
65,817 | |||
Textiles, Apparel & Luxury Goods - 1.7% | |||
Allbirds, Inc. (b)(c) | 4,447 | 244 | |
Brunello Cucinelli SpA | 822,600 | 27,798 | |
PVH Corp. | 141,600 | 15,648 | |
Under Armour, Inc. Class A (sub. vtg.) (a)(f) | 475,000 | 11,343 | |
55,033 | |||
TOTAL CONSUMER DISCRETIONARY | 350,723 | ||
CONSUMER STAPLES - 9.0% | |||
Beverages - 0.3% | |||
Molson Coors Brewing Co. Class B | 167,000 | 10,984 | |
Food & Staples Retailing - 2.0% | |||
Walmart, Inc. | 646,600 | 63,140 | |
Food Products - 1.1% | |||
Amira Nature Foods Ltd. (a)(f) | 1,082,352 | 606 | |
Greencore Group PLC | 5,744,661 | 13,769 | |
The Hershey Co. | 185,200 | 20,057 | |
34,432 | |||
Household Products - 3.0% | |||
Kimberly-Clark Corp. | 197,100 | 22,739 | |
Procter & Gamble Co. | 624,900 | 59,059 | |
Reckitt Benckiser Group PLC | 182,400 | 15,183 | |
96,981 | |||
Personal Products - 0.9% | |||
Coty, Inc. Class A | 1,246,400 | 10,395 | |
Unilever NV (Certificaten Van Aandelen) (Bearer) | 303,000 | 16,815 | |
27,210 | |||
Tobacco - 1.7% | |||
British American Tobacco PLC sponsored ADR | 520,700 | 18,157 | |
Philip Morris International, Inc. | 426,900 | 36,940 | |
55,097 | |||
TOTAL CONSUMER STAPLES | 287,844 | ||
ENERGY - 11.9% | |||
Energy Equipment & Services - 1.7% | |||
Borr Drilling Ltd. (a) | 4,401,703 | 13,828 | |
Oceaneering International, Inc. (a) | 588,652 | 9,883 | |
Odfjell Drilling Ltd. | 4,699,224 | 15,500 | |
Pacific Drilling SA (a) | 142,594 | 2,125 | |
Pacific Drilling SA | 261,698 | 3,899 | |
TechnipFMC PLC | 325,600 | 7,518 | |
52,753 | |||
Oil, Gas & Consumable Fuels - 10.2% | |||
Cabot Oil & Gas Corp. | 676,300 | 17,016 | |
Cheniere Energy, Inc. (a) | 239,300 | 14,626 | |
Chevron Corp. | 400,900 | 47,683 | |
Cimarex Energy Co. | 110,600 | 9,067 | |
ConocoPhillips Co. | 664,300 | 43,963 | |
Denbury Resources, Inc. (a) | 2,486,300 | 5,619 | |
Diamondback Energy, Inc. | 99,800 | 11,016 | |
Exxon Mobil Corp. | 1,207,700 | 96,010 | |
GasLog Ltd. | 472,841 | 9,816 | |
Golar LNG Ltd. | 717,100 | 19,104 | |
Kosmos Energy Ltd. (a) | 1,690,300 | 9,094 | |
Legacy Reserves, Inc. (a)(f)(g) | 5,606,520 | 12,054 | |
The Williams Companies, Inc. | 1,117,997 | 28,308 | |
Whiting Petroleum Corp. (a) | 119,925 | 3,630 | |
327,006 | |||
TOTAL ENERGY | 379,759 | ||
FINANCIALS - 18.4% | |||
Banks - 5.3% | |||
Bank of America Corp. | 2,915,600 | 82,803 | |
First Republic Bank | 166,500 | 16,508 | |
HDFC Bank Ltd. sponsored ADR | 152,300 | 15,446 | |
Metro Bank PLC (a)(f) | 243,010 | 6,509 | |
PNC Financial Services Group, Inc. | 168,300 | 22,852 | |
Republic First Bancorp, Inc. (a) | 933,900 | 7,051 | |
SunTrust Banks, Inc. | 296,412 | 18,582 | |
169,751 | |||
Capital Markets - 1.3% | |||
The NASDAQ OMX Group, Inc. | 204,200 | 18,648 | |
TPG Specialty Lending, Inc. (f) | 1,064,000 | 21,589 | |
40,237 | |||
Diversified Financial Services - 2.3% | |||
Berkshire Hathaway, Inc. Class B (a) | 313,600 | 68,440 | |
Focus Financial Partners, Inc. Class A | 183,100 | 5,661 | |
74,101 | |||
Insurance - 7.7% | |||
American International Group, Inc. | 1,412,700 | 61,099 | |
Arch Capital Group Ltd. (a) | 924,600 | 26,462 | |
Beazley PLC | 1,192,000 | 8,491 | |
Chubb Ltd. | 309,709 | 41,420 | |
First American Financial Corp. | 271,800 | 13,136 | |
FNF Group | 657,300 | 22,085 | |
Hiscox Ltd. | 478,900 | 10,289 | |
Marsh & McLennan Companies, Inc. | 193,500 | 17,163 | |
MetLife, Inc. | 617,000 | 27,537 | |
The Travelers Companies, Inc. | 157,400 | 20,520 | |
248,202 | |||
Thrifts & Mortgage Finance - 1.8% | |||
Housing Development Finance Corp. Ltd. | 425,968 | 12,164 | |
MGIC Investment Corp. (a) | 1,213,634 | 14,212 | |
Radian Group, Inc. | 1,774,923 | 32,659 | |
59,035 | |||
TOTAL FINANCIALS | 591,326 | ||
HEALTH CARE - 12.1% | |||
Biotechnology - 1.9% | |||
Amgen, Inc. | 231,400 | 48,189 | |
Celgene Corp. (a) | 187,200 | 13,520 | |
61,709 | |||
Health Care Equipment & Supplies - 2.6% | |||
Becton, Dickinson & Co. | 117,000 | 29,572 | |
Boston Scientific Corp. (a) | 649,500 | 24,467 | |
Danaher Corp. | 182,200 | 19,958 | |
Integra LifeSciences Holdings Corp. (a) | 160,028 | 8,582 | |
82,579 | |||
Health Care Providers & Services - 4.6% | |||
Henry Schein, Inc. (a) | 291,200 | 25,975 | |
National Vision Holdings, Inc. (a) | 385,600 | 14,179 | |
Notre Dame Intermedica Participacoes SA | 1,052,460 | 7,593 | |
Premier, Inc. (a) | 239,400 | 9,495 | |
UnitedHealth Group, Inc. | 240,700 | 67,723 | |
Universal Health Services, Inc. Class B | 154,000 | 21,250 | |
146,215 | |||
Health Care Technology - 0.4% | |||
Cerner Corp. (a) | 231,200 | 13,389 | |
Life Sciences Tools & Services - 0.7% | |||
Agilent Technologies, Inc. | 180,300 | 13,045 | |
Bruker Corp. | 318,900 | 10,568 | |
23,613 | |||
Pharmaceuticals - 1.9% | |||
Amneal Pharmaceuticals, Inc. (a)(f) | 488,400 | 8,650 | |
Catalent, Inc. (a) | 248,493 | 9,853 | |
GlaxoSmithKline PLC | 180 | 4 | |
Perrigo Co. PLC | 294,100 | 18,317 | |
Prestige Brands Holdings, Inc. (a) | 300,000 | 11,646 | |
Roche Holding AG (participation certificate) | 42,220 | 10,960 | |
59,430 | |||
TOTAL HEALTH CARE | 386,935 | ||
INDUSTRIALS - 10.2% | |||
Aerospace & Defense - 4.7% | |||
General Dynamics Corp. | 239,300 | 44,244 | |
Huntington Ingalls Industries, Inc. | 76,500 | 16,486 | |
KEYW Holding Corp. (a)(f) | 1,868,837 | 18,259 | |
Kratos Defense & Security Solutions, Inc. (a) | 1,140,600 | 15,170 | |
Northrop Grumman Corp. | 142,700 | 37,085 | |
Space Exploration Technologies Corp.: | |||
Class A (a)(b)(c) | 58,589 | 9,902 | |
Class C (a)(b)(c) | 818 | 138 | |
Teledyne Technologies, Inc. (a) | 46,800 | 10,510 | |
151,794 | |||
Commercial Services & Supplies - 1.1% | |||
KAR Auction Services, Inc. | 283,900 | 16,222 | |
Stericycle, Inc. (a) | 125,800 | 6,047 | |
U.S. Ecology, Inc. | 193,056 | 13,450 | |
35,719 | |||
Electrical Equipment - 0.4% | |||
Melrose Industries PLC | 5,820,928 | 13,099 | |
Industrial Conglomerates - 1.6% | |||
General Electric Co. | 6,582,100 | 49,366 | |
Machinery - 1.4% | |||
Aumann AG (f)(h) | 222,500 | 9,912 | |
Donaldson Co., Inc. | 284,400 | 15,938 | |
Pentair PLC | 160,200 | 6,841 | |
Rational AG | 21,300 | 12,117 | |
44,808 | |||
Marine - 0.5% | |||
Goodbulk Ltd. (c) | 959,290 | 16,016 | |
Trading Companies & Distributors - 0.5% | |||
Bunzl PLC | 549,119 | 16,905 | |
TOTAL INDUSTRIALS | 327,707 | ||
INFORMATION TECHNOLOGY - 6.8% | |||
Communications Equipment - 2.1% | |||
Cisco Systems, Inc. | 1,429,900 | 68,449 | |
Electronic Equipment & Components - 1.3% | |||
Amphenol Corp. Class A | 280,182 | 24,639 | |
Keysight Technologies, Inc. (a) | 290,000 | 17,928 | |
42,567 | |||
IT Services - 2.1% | |||
Akamai Technologies, Inc. (a) | 245,400 | 16,871 | |
First Data Corp. Class A (a) | 1,031,062 | 19,673 | |
Leidos Holdings, Inc. | 340,800 | 21,470 | |
Science Applications International Corp. | 123,900 | 8,614 | |
66,628 | |||
Semiconductors & Semiconductor Equipment - 0.9% | |||
Qualcomm, Inc. | 459,800 | 26,788 | |
Software - 0.4% | |||
Black Knight, Inc. (a) | 275,149 | 12,475 | |
TOTAL INFORMATION TECHNOLOGY | 216,907 | ||
MATERIALS - 2.0% | |||
Chemicals - 1.2% | |||
International Flavors & Fragrances, Inc. | 147,000 | 20,820 | |
LG Chemical Ltd. | 20,430 | 6,301 | |
Nutrien Ltd. | 205,920 | 10,607 | |
37,728 | |||
Metals & Mining - 0.8% | |||
Franco-Nevada Corp. | 143,800 | 9,957 | |
Newcrest Mining Ltd. | 541,982 | 8,220 | |
Novagold Resources, Inc. (a)(f) | 2,591,580 | 9,558 | |
27,735 | |||
TOTAL MATERIALS | 65,463 | ||
REAL ESTATE - 1.6% | |||
Equity Real Estate Investment Trusts (REITs) - 1.4% | |||
Cousins Properties, Inc. | 901,553 | 7,618 | |
Crown Castle International Corp. | 78,200 | 8,985 | |
Healthcare Trust of America, Inc. | 274,800 | 7,727 | |
Spirit MTA REIT | 190,380 | 1,852 | |
Spirit Realty Capital, Inc. | 1,903,800 | 14,126 | |
VEREIT, Inc. | 471,400 | 3,606 | |
43,914 | |||
Real Estate Management & Development - 0.2% | |||
Realogy Holdings Corp. (f) | 414,300 | 7,979 | |
TOTAL REAL ESTATE | 51,893 | ||
UTILITIES - 5.8% | |||
Electric Utilities - 5.8% | |||
Alliant Energy Corp. | 409,800 | 18,601 | |
Duke Energy Corp. | 629,600 | 55,764 | |
Exelon Corp. | 454,100 | 21,066 | |
IDACORP, Inc. | 260,800 | 25,621 | |
OGE Energy Corp. | 265,200 | 10,507 | |
Southern Co. | 500,000 | 23,665 | |
Xcel Energy, Inc. | 557,200 | 29,225 | |
184,449 | |||
TOTAL COMMON STOCKS | |||
(Cost $2,599,674) | 2,969,322 | ||
Preferred Stocks - 1.4% | |||
Convertible Preferred Stocks - 1.4% | |||
CONSUMER DISCRETIONARY - 0.7% | |||
Leisure Products - 0.5% | |||
Peloton Interactive, Inc.: | |||
Series E (a)(b)(c) | 923,284 | 13,332 | |
Series F (b)(c) | 298,932 | 4,317 | |
17,649 | |||
Textiles, Apparel & Luxury Goods - 0.2% | |||
Allbirds, Inc.: | |||
Series A (b)(c) | 1,755 | 96 | |
Series B (b)(c) | 308 | 17 | |
Series C (b)(c) | 2,947 | 162 | |
Bolt Threads, Inc. Series D (b)(c) | 390,327 | 4,754 | |
5,029 | |||
TOTAL CONSUMER DISCRETIONARY | 22,678 | ||
HEALTH CARE - 0.2% | |||
Health Care Equipment & Supplies - 0.2% | |||
Butterfly Network, Inc. Series D (b)(c) | 658,083 | 6,759 | |
INDUSTRIALS - 0.1% | |||
Aerospace & Defense - 0.1% | |||
Space Exploration Technologies Corp. Series H (a)(b)(c) | 7,570 | 1,279 | |
INFORMATION TECHNOLOGY - 0.4% | |||
Internet Software & Services - 0.4% | |||
Lyft, Inc.: | |||
Series H (b)(c) | 143,083 | 6,776 | |
Series I (b)(c) | 151,561 | 7,177 | |
13,953 | |||
TOTAL CONVERTIBLE PREFERRED STOCKS | 44,669 | ||
Nonconvertible Preferred Stocks - 0.0% | |||
CONSUMER DISCRETIONARY - 0.0% | |||
Textiles, Apparel & Luxury Goods - 0.0% | |||
Allbirds, Inc. (b)(c) | 943 | 52 | |
TOTAL PREFERRED STOCKS | |||
(Cost $36,550) | 44,721 | ||
Principal Amount (000s) | Value (000s) | ||
Corporate Bonds - 0.0% | |||
Convertible Bonds - 0.0% | |||
COMMUNICATION SERVICES - 0.0% | |||
Entertainment - 0.0% | |||
Trion World, Inc. 8% 10/10/19 pay-in-kind (b)(c)(i)(j) | 474 | 0 | |
Nonconvertible Bonds - 0.0% | |||
ENERGY - 0.0% | |||
Energy Equipment & Services - 0.0% | |||
Pacific Drilling Second Lien Escrow Issuer Ltd. 11% 4/1/24 pay-in-kind (h) | 179 | 183 | |
TOTAL CORPORATE BONDS | |||
(Cost $657) | 183 | ||
Shares | Value (000s) | ||
Other - 0.1% | |||
ENERGY - 0.1% | |||
Oil, Gas & Consumable Fuels - 0.1% | |||
Utica Shale Drilling Program (non-operating revenue interest) (b)(c)(d) | |||
(Cost $8,368) | 8,367,654 | 4,087 | |
Money Market Funds - 7.8% | |||
Fidelity Cash Central Fund, 2.27% (k) | 184,869,631 | 184,907 | |
Fidelity Securities Lending Cash Central Fund 2.27% (k)(l) | 64,067,451 | 64,074 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $248,980) | 248,981 | ||
TOTAL INVESTMENT IN SECURITIES - 101.9% | |||
(Cost $2,894,229) | 3,267,294 | ||
NET OTHER ASSETS (LIABILITIES) - (1.9)% | (61,252) | ||
NET ASSETS - 100% | $3,206,042 |
Values shown as $0 in the Schedule of Investments may reflect amounts less than $500.
Legend
(a) Non-income producing
(b) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $72,281,000 or 2.3% of net assets.
(c) Level 3 security
(d) Investment is owned by a wholly-owned subsidiary (Subsidiary) that is treated as a corporation for U.S. tax purposes.
(e) Investment is owned by an entity that is treated as a U.S. Corporation for tax purposes in which the Fund holds a percentage ownership.
(f) Security or a portion of the security is on loan at period end.
(g) Affiliated company
(h) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $10,095,000 or 0.3% of net assets.
(i) Non-income producing - Security is in default.
(j) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end.
(k) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(l) Investment made with cash collateral received from securities on loan.
Additional information on each restricted holding is as follows:
Security | Acquisition Date | Acquisition Cost (000s) |
Allbirds, Inc. | 10/9/18 | $244 |
Allbirds, Inc. | 10/9/18 | $52 |
Allbirds, Inc. Series A | 10/9/18 | $96 |
Allbirds, Inc. Series B | 10/9/18 | $17 |
Allbirds, Inc. Series C | 10/9/18 | $162 |
Bolt Threads, Inc. Series D | 12/13/17 | $6,261 |
Butterfly Network, Inc. Series D | 5/4/18 | $6,759 |
Lyft, Inc. Series H | 11/22/17 | $5,687 |
Lyft, Inc. Series I | 6/27/18 | $7,177 |
New Academy Holding Co. LLC unit | 8/1/11 | $6,956 |
Peloton Interactive, Inc. Series E | 3/31/17 | $5,000 |
Peloton Interactive, Inc. Series F | 8/30/18 | $4,317 |
Space Exploration Technologies Corp. Class A | 4/8/16 - 9/11/17 | $5,981 |
Space Exploration Technologies Corp. Class C | 9/11/17 | $110 |
Space Exploration Technologies Corp. Series H | 8/4/17 | $1,022 |
Trion World, Inc. | 8/22/08 - 3/20/13 | $5,798 |
Trion World, Inc. 8% 10/10/19 pay-in-kind | 10/10/13 - 4/10/18 | $473 |
Utica Shale Drilling Program (non-operating revenue interest) | 10/5/16 - 9/1/17 | $8,368 |
WME Entertainment Parent, LLC Class A | 8/16/16 | $7,349 |
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 | $1,895 |
Fidelity Securities Lending Cash Central Fund | 496 |
Total | $2,391 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations if applicable.
Other Affiliated Issuers
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows:
Affiliate (Amounts in thousands) | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Realized Gain (loss) | Change in Unrealized appreciation (depreciation) | Value, end of period |
Legacy Reserves LP | $8,690 | $-- | $-- | $-- | $-- | $6,894 | $-- |
Legacy Reserves, Inc. | -- | -- | -- | -- | -- | (3,530) | 12,054 |
Total | $8,690 | $-- | $-- | $-- | $-- | $3,364 | $12,054 |
Investment Valuation
The following is a summary of the inputs used, as of November 30, 2018, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
(Amounts in thousands) | ||||
Investments in Securities: | ||||
Equities: | ||||
Communication Services | $126,316 | $115,256 | $-- | $11,060 |
Consumer Discretionary | 373,453 | 348,350 | -- | 25,103 |
Consumer Staples | 287,844 | 255,846 | 31,998 | -- |
Energy | 379,759 | 379,759 | -- | -- |
Financials | 591,326 | 591,326 | -- | -- |
Health Care | 393,694 | 375,971 | 10,964 | 6,759 |
Industrials | 328,986 | 301,651 | -- | 27,335 |
Information Technology | 230,860 | 216,907 | -- | 13,953 |
Materials | 65,463 | 65,463 | -- | -- |
Real Estate | 51,893 | 51,893 | -- | -- |
Utilities | 184,449 | 184,449 | -- | -- |
Corporate Bonds | 183 | -- | 183 | -- |
Other | 4,087 | -- | -- | 4,087 |
Money Market Funds | 248,981 | 248,981 | -- | -- |
Total Investments in Securities: | $3,267,294 | $3,135,852 | $43,145 | $88,297 |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value:
(Amounts in thousands) | |
Investments in Securities: | |
Beginning Balance | $37,832 |
Net Realized Gain (Loss) on Investment Securities | -- |
Net Unrealized Gain (Loss) on Investment Securities | 12,454 |
Cost of Purchases | 32,896 |
Proceeds of Sales | -- |
Amortization/Accretion | -- |
Transfers into Level 3 | 5,115 |
Transfers out of Level 3 | -- |
Ending Balance | $88,297 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at November 30, 2018 | $12,454 |
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. 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 | 85.0% |
Bermuda | 3.7% |
United Kingdom | 2.8% |
Switzerland | 1.6% |
Netherlands | 1.4% |
Ireland | 1.3% |
Others (Individually Less Than 1%) | 4.2% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amount) | November 30, 2018 | |
Assets | ||
Investment in securities, at value (including securities loaned of $61,251) — See accompanying schedule: Unaffiliated issuers (cost $2,629,665) | $3,006,259 | |
Fidelity Central Funds (cost $248,980) | 248,981 | |
Other affiliated issuers (cost $15,584) | 12,054 | |
Total Investment in Securities (cost $2,894,229) | $3,267,294 | |
Cash | 289 | |
Restricted cash | 282 | |
Receivable for investments sold | 166 | |
Receivable for fund shares sold | 654 | |
Dividends receivable | 5,267 | |
Distributions receivable from Fidelity Central Funds | 448 | |
Prepaid expenses | 5 | |
Other receivables | 94 | |
Total assets | 3,274,499 | |
Liabilities | ||
Payable for investments purchased | $170 | |
Payable for fund shares redeemed | 2,414 | |
Accrued management fee | 1,180 | |
Other affiliated payables | 509 | |
Other payables and accrued expenses | 119 | |
Collateral on securities loaned | 64,065 | |
Total liabilities | 68,457 | |
Net Assets | $3,206,042 | |
Net Assets consist of: | ||
Paid in capital | $2,387,884 | |
Total distributable earnings (loss) | 818,158 | |
Net Assets, for 79,114 shares outstanding | $3,206,042 | |
Net Asset Value, offering price and redemption price per share ($3,206,042 ÷ 79,114 shares) | $40.52 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Amounts in thousands | Year ended November 30, 2018 | |
Investment Income | ||
Dividends | $52,191 | |
Interest | 28 | |
Income from Fidelity Central Funds | 2,391 | |
Total income | 54,610 | |
Expenses | ||
Management fee | ||
Basic fee | $17,799 | |
Performance adjustment | (3,047) | |
Transfer agent fees | 4,885 | |
Accounting and security lending fees | 971 | |
Custodian fees and expenses | 80 | |
Independent trustees' fees and expenses | 17 | |
Registration fees | 70 | |
Audit | 164 | |
Legal | 9 | |
Miscellaneous | 25 | |
Total expenses before reductions | 20,973 | |
Expense reductions | (255) | |
Total expenses after reductions | 20,718 | |
Net investment income (loss) | 33,892 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 437,684 | |
Fidelity Central Funds | 1 | |
Foreign currency transactions | 2 | |
Total net realized gain (loss) | 437,687 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers (net of increase in deferred foreign taxes of $22) | (373,038) | |
Fidelity Central Funds | (2) | |
Other affiliated issuers | 3,364 | |
Assets and liabilities in foreign currencies | (22) | |
Total change in net unrealized appreciation (depreciation) | (369,698) | |
Net gain (loss) | 67,989 | |
Net increase (decrease) in net assets resulting from operations | $101,881 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Amounts in thousands | Year ended November 30, 2018 | Year ended November 30, 2017 |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $33,892 | $31,033 |
Net realized gain (loss) | 437,687 | 246,779 |
Change in net unrealized appreciation (depreciation) | (369,698) | 319,973 |
Net increase (decrease) in net assets resulting from operations | 101,881 | 597,785 |
Distributions to shareholders | (265,435) | – |
Distributions to shareholders from net investment income | – | (34,461) |
Distributions to shareholders from net realized gain | – | (147,147) |
Total distributions | (265,435) | (181,608) |
Share transactions | ||
Proceeds from sales of shares | 375,717 | 217,367 |
Reinvestment of distributions | 252,831 | 173,679 |
Cost of shares redeemed | (546,925) | (563,945) |
Net increase (decrease) in net assets resulting from share transactions | 81,623 | (172,899) |
Total increase (decrease) in net assets | (81,931) | 243,278 |
Net Assets | ||
Beginning of period | 3,287,973 | 3,044,695 |
End of period | $3,206,042 | $3,287,973 |
Other Information | ||
Undistributed net investment income end of period | $15,017 | |
Shares | ||
Sold | 8,962 | 5,693 |
Issued in reinvestment of distributions | 6,362 | 4,765 |
Redeemed | (13,207) | (14,529) |
Net increase (decrease) | 2,117 | (4,071) |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity New Millennium Fund
Years ended November 30, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $42.70 | $37.56 | $38.99 | $42.10 | $40.16 |
Income from Investment Operations | |||||
Net investment income (loss)A | .43 | .38 | .43 | .39 | .38B |
Net realized and unrealized gain (loss) | .87 | 7.01 | 2.31 | (.46) | 3.89 |
Total from investment operations | 1.30 | 7.39 | 2.74 | (.07) | 4.27 |
Distributions from net investment income | (.36) | (.43) | (.35) | (.28) | (.19) |
Distributions from net realized gain | (3.12) | (1.82) | (3.82) | (2.76) | (2.13) |
Total distributions | (3.48) | (2.25) | (4.17) | (3.04) | (2.33)C |
Net asset value, end of period | $40.52 | $42.70 | $37.56 | $38.99 | $42.10 |
Total ReturnD | 3.19% | 20.69% | 8.57% | .08% | 11.31% |
Ratios to Average Net AssetsE,F | |||||
Expenses before reductions | .64% | .54% | .57% | .72% | .82% |
Expenses net of fee waivers, if any | .64% | .54% | .57% | .72% | .82% |
Expenses net of all reductions | .63% | .54% | .57% | .71% | .81% |
Net investment income (loss) | 1.03% | .98% | 1.25% | 1.00% | .92%B |
Supplemental Data | |||||
Net assets, end of period (in millions) | $3,206 | $3,288 | $3,045 | $3,313 | $4,282 |
Portfolio turnover rateG | 37% | 31% | 44% | 57% | 44% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $.13 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .59%.
C Total distributions of $2.33 per share is comprised of distributions from net investment income of $.192 and distributions from net realized gain of $2.133 per share.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended November 30, 2018
(Amounts in thousands except percentages)
1. Organization.
Fidelity New Millennium Fund (the Fund) is a fund of Fidelity Mt. Vernon Street Trust (the Trust) and is authorized to issue an unlimited number of shares. Share transactions on the Statement of Changes in Net Assets may contain exchanges between affiliated funds. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investments Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy. Equity securities, including restricted securities, for which observable inputs are not available are valued using alternate valuation approaches, including the market approach and the income approach and are categorized as Level 3 in the hierarchy. The market approach generally consists of using comparable market transactions while the income approach generally consists of using the net present value of estimated future cash flows, adjusted as appropriate for liquidity, credit, market and/or other risk factors.
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who make markets in such securities. Corporate bonds are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
The following provides information on Level 3 securities held by the Fund that were valued at period end based on unobservable inputs. These amounts exclude valuations provided by a broker.
Asset Type | Fair Value | Valuation Technique(s) | Unobservable Input | Amount or Range/Weighted Average | Impact to Valuation from an Increase in Input(a) |
Corporate Bonds | $0 | Recovery value | Recovery value | 0.0% | Increase |
Equities | $68,193 | Market comparable | Enterprise value/Sales multiple (EV/S) | 2.4 - 8.3 / 4.2 | Increase |
Enterprise value/EBITDA multiple (EV/EBITDA) | 6.5 | Increase | |||
Discount rate | 9.0% | Decrease | |||
Discount for lack of marketability | 10.0% | Decrease | |||
Premium rate | 10.0% - 94.0% / 68.0% | Increase | |||
Market approach | Transaction price | $10.27 - $169.00 / $58.29 | Increase | ||
Recovery value | Recovery value | 0.0% | Increase | ||
Other | $4,087 | Discount cash flow | Discount rate | 13.5% | Decrease |
(a) Represents the expected directional change in the fair value of the Level 3 investments that would result from an increase in the corresponding input. A decrease to the unobservable input would have the opposite effect. Significant changes in these inputs could result in significantly higher or lower fair value measurements.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of November 30, 2018, as well as a roll forward of Level 3 investments, is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. 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.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. As of November 30, 2018, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests. The Fund is subject to a tax imposed on capital gains by certain countries in which it invests. An estimated deferred tax liability for net unrealized appreciation on the applicable securities is included in Other payables and accrued expenses on the Statement of Assets & Liabilities.
Distributions are declared and recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), partnerships, market discount, 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 | $618,298 |
Gross unrealized depreciation | (235,050) |
Net unrealized appreciation (depreciation) | $383,248 |
Tax Cost | $2,884,046 |
The tax-based components of distributable earnings as of period end were as follows:
Undistributed ordinary income | $25,094 |
Undistributed long-term capital gain | $415,780 |
Net unrealized appreciation (depreciation) on securities and other investments | $377,306 |
The tax character of distributions paid was as follows:
November 30, 2018 | November 30, 2017 | |
Ordinary Income | $65,155 | $ 35,432 |
Long-term Capital Gains | 200,280 | 146,176 |
Total | $265,435 | $ 181,608 |
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
Consolidated Subsidiary. The Fund invests in certain investments through a wholly-owned subsidiary ("Subsidiary"), which may be subject to federal and state taxes upon disposition.
As of period end, the Fund held an investment of $15,429 in these Subsidiaries, representing .48% of the Fund's net assets. The financial statements have been consolidated and include accounts of the Fund and each Subsidiary. Accordingly, all inter-company transactions and balances have been eliminated.
Any cash held by the Subsidiaries is restricted as to its use and is presented as Restricted cash in the Statement of Assets and Liabilities.
New Rule Issuance. During August 2018, the U.S. Securities and Exchange Commission issued Final Rule Release No. 33-10532, Disclosure Update and Simplification. This Final Rule includes amendments specific to registered investment companies that are intended to eliminate overlap in disclosure requirements between Regulation S-X and GAAP. In accordance with these amendments, certain line-items in the Fund's financial statements have been combined or removed for the current period as outlined in the table below.
Financial Statement | Current Line-Item Presentation | Prior Line-Item Presentation |
Statement of Assets and Liabilities | Total distributable earnings (loss) | Undistributed/Distributions in excess of/Accumulated net investment income (loss) Accumulated/Undistributed net realized gain (loss) Net unrealized appreciation (depreciation) |
Statement of Changes in Net Assets | N/A - removed | Undistributed/Distributions in excess of/Accumulated net investment income (loss) end of period |
Statement of Changes in Net Assets | Distributions to shareholders | Distributions to shareholders from net investment income Distributions to shareholders from net realized gain |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $1,166,571 and $1,410,718, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .24% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of +/- .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the Fund's relative investment performance as compared to its benchmark index, the S&P 500 Index, over the same 36 month performance period. For the reporting period, the total annual management fee rate, including the performance adjustment, was .45% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of the investment adviser, is the Fund's transfer, dividend disbursing and shareholder servicing agent. FIIOC receives account fees and asset-based fees that vary according to account size and type of account. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the transfer agent fees were equivalent to an annual rate of .15% of average net assets.
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions. For the period, the fees were equivalent to an annual rate of .03%.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $37 for the period.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
Other. During the period, the investment adviser reimbursed the Fund for certain losses in the amount of $3.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $9 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. At period end, there were no security loans outstanding with FCM. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $496, including $34 from securities loaned to FCM.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $221 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $1.
In addition, during the period the investment adviser reimbursed and/or waived a portion of operating expenses in the amount of $33.
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.
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Fidelity Mt. Vernon Street Trust and Shareholders of Fidelity New Millennium Fund:
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Fidelity New Millennium Fund (one of the funds constituting Fidelity Mt. Vernon Street Trust, referred to hereafter as the "Fund") as of November 30, 2018, the related statement of operations for the year ended November 30, 2018, the statement of changes in net assets for each of the two years in the period ended November 30, 2018, including the related notes, and the financial highlights for each of the five years in the period ended November 30, 2018 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of November 30, 2018, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended November 30, 2018 and the financial highlights for each of the five years in the period ended November 30, 2018 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of November 30, 2018 by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Boston, Massachusetts
January 17, 2019
We have served as the auditor of one or more investment companies in the Fidelity group of funds since 1932.
Trustees and Officers
The Trustees, Members of the Advisory Board (if any), and officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Except for Michael E. Wiley, each of the Trustees oversees 281 funds. Mr. Wiley oversees 192 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the fund is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund’s Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Board Structure and Oversight Function. James C. Curvey is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Ned C. Lautenbach serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and other equity funds. The asset allocation funds may invest in Fidelity® funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. In addition, the Independent Trustees have worked with Fidelity to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
James C. Curvey (1935)
Year of Election or Appointment: 2007
Trustee
Chairman of the Board of Trustees
Mr. Curvey also serves as Trustee of other Fidelity® funds. Mr. Curvey is Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey is an Overseer Emeritus for the Boston Symphony Orchestra, a Director of Artis-Naples, and a Trustee of Brewster Academy in Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-2018), Director of Fidelity Investments Money Management, Inc. (investment adviser firm, 2009-2014) and a Director of FMR and FMR Co., Inc. (investment adviser firms, 2007-2014).
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), as a member of the Independent Directors Council (IDC) Governing Council (2010-2015), and as a member of the Board of Directors for The Brookville Center for Children’s Services, Inc. (2009-2017). Mr. Dirks is a member of the Finance Committee (2016-present) and Board of Directors (2017-present) and is Treasurer (2018-present) of the Asolo Repertory Theatre.
Donald F. Donahue (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Donahue also serves as a Trustee of other Fidelity® funds. Mr. Donahue is President and Chief Executive Officer of Miranda Partners, LLC (risk consulting for the financial services industry, 2012-present). Previously, Mr. Donahue served as a Member of the Advisory Board of certain Fidelity® funds (2015-2018) and Chief Executive Officer (2006-2012), Chief Operating Officer (2003-2006), and Managing Director, Customer Marketing and Development (1999-2003) of The Depository Trust & Clearing Corporation (financial markets infrastructure). Mr. Donahue serves as a Member (2007-present) and Co-Chairman (2016-present) of the Board of Directors of United Way of New York, Member of the Board of Directors of NYC Leadership Academy (2012-present) and Member of the Board of Advisors of Ripple Labs, Inc. (financial services, 2015-present). He also served as Chairman (2010-2012) and Member of the Board of Directors (2012-2013) of Omgeo, LLC (financial services), Treasurer of United Way of New York (2012-2016), and Member of the Board of Directors of XBRL US (financial services non-profit, 2009-2012) and the International Securities Services Association (2009-2012).
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2014-2017) and a member (2010-2017) of the Board of Directors of Dave & Buster’s Entertainment, Inc. (restaurant and entertainment complexes), as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association, and as a member of the Board of Directors for The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), Earth Fare, Inc. (retail grocery, 2010-2014), and The Western Union Company (global money transfer, 2006-2011).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as Chair (2018-present) and Member (2013-present) of the Board of Governors, State University System of Florida and is a member of the Council on Foreign Relations (1994-present). He is also a member and has most recently served as Chairman of the Board of Directors of Artis-Naples (2012-present). Previously, Mr. Lautenbach served as a member and then Lead Director of the Board of Directors of Eaton Corporation (diversified industrial, 1997-2016). He was also a Partner and Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007). In addition, Mr. Lautenbach also had a 30-year career with IBM (technology company) during which time he served as Senior Vice President and a member of the Corporate Executive Committee (1968-1998).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-2018).
Cornelia M. Small (1944)
Year of Election or Appointment: 2005
Trustee
Ms. Small also serves as Trustee of other Fidelity® funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.
Garnett A. Smith (1947)
Year of Election or Appointment: 2018
Trustee
Mr. Smith also serves as Trustee of other Fidelity® funds. Prior to Mr. Smith's retirement, he served as Chairman and Chief Executive Officer of Inbrand Corp. (manufacturer of personal absorbent products, 1990-1997). He also served as President (1986-1990) of Inbrand Corp. Prior to his employment with Inbrand Corp., he was employed by a retail fabric chain and North Carolina National Bank. In addition, Mr. Smith served as a Member of the Advisory Board of certain Fidelity® funds (2012-2013) and as a board member of the Jackson Hole Land Trust (2009-2012).
David M. Thomas (1949)
Year of Election or Appointment: 2008
Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present) and as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), a Director of Fortune Brands, Inc. (consumer products, 2000-2011), and a member of the Board of Trustees of the University of Florida (2013-2018).
Michael E. Wiley (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Wiley also serves as Trustee or Member of the Advisory Board of other Fidelity® funds. Mr. Wiley serves as a Director of High Point Resources (exploration and production, 2005-present). Previously, Mr. Wiley served as a Director of Andeavor Corporation (independent oil refiner and marketer, 2005-2018), a Director of Andeavor Logistics LP (natural resources logistics, 2015-2018), a Director of Post Oak Bank (privately-held bank, 2004-2018), a Director of Asia Pacific Exploration Consolidated (international oil and gas exploration and production, 2008-2013), a member of the Board of Trustees of the University of Tulsa (2000-2006; 2007-2010), a Senior Energy Advisor of Katzenbach Partners, LLC (consulting, 2006-2007), an Advisory Director of Riverstone Holdings (private investment), a Director of Spinnaker Exploration Company (exploration and production, 2001-2005) and Chairman, President, and CEO of Baker Hughes, Inc. (oilfield services, 2000-2004).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Advisory Board Members and Officers:
Correspondence intended for a Member of the Advisory Board (if any) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235. Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Vicki L. Fuller (1957)
Year of Election or Appointment: 2018
Member of the Advisory Board
Ms. Fuller also serves as Member of the Advisory Board of other Fidelity® funds. Ms. Fuller serves as a member of the Board of Directors, Audit Committee, and Nominating and Governance Committee of The Williams Companies, Inc. (natural gas infrastructure, 2018-present). Previously, Ms. Fuller served as the Chief Investment Officer of the New York State Common Retirement Fund (2012-2018) and held a variety of positions at AllianceBernstein L.P. (global asset management, 1985-2012), including Managing Director (2006-2012) and Senior Vice President and Senior Portfolio Manager (2001-2006).
Peter S. Lynch (1944)
Year of Election or Appointment: 2003
Member of the Advisory Board
Mr. Lynch also serves as Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of FMR (investment adviser firm) and FMR Co., Inc. (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).
Carol B. Tomé (1957)
Year of Election or Appointment: 2018
Member of the Advisory Board
Ms. Tomé also serves as Member of the Advisory Board of other Fidelity® funds. Ms. Tomé is Chief Financial Officer (2001-present) and Executive Vice President of Corporate Services (2007-present) of The Home Depot, Inc. (home improvement retailer) and a Director (2003-present) and Chair of the Audit Committee (2004-present) of United Parcel Service, Inc. (package delivery and supply chain management). Previously, Ms. Tomé served as Trustee of certain Fidelity® funds (2017), Senior Vice President of Finance and Accounting/Treasurer (2000-2007) and Vice President and Treasurer (1995-2000) of The Home Depot, Inc. and Chair of the Board (2010-2012), Vice Chair of the Board (2009 and 2013), and a Director (2008-2013) of the Federal Reserve Bank of Atlanta. Ms. Tomé is also a director or trustee of many community and professional organizations.
Elizabeth Paige Baumann (1968)
Year of Election or Appointment: 2017
Anti-Money Laundering (AML) Officer
Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer (2012-present) and Senior Vice President (2014-present) of FMR LLC (diversified financial services company) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as AML Officer of the funds (2012-2016), and Vice President (2007-2014) and Deputy Anti-Money Laundering Officer (2007-2012) of FMR LLC.
John J. Burke III (1964)
Year of Election or Appointment: 2018
Chief Financial Officer
Mr. Burke also serves as Chief Financial Officer of other funds. Mr. Burke serves as Head of Investment Operations for Fidelity Fund and Investment Operations (2018-present) and is an employee of Fidelity Investments (1998-present). Previously Mr. Burke served as head of Asset Management Investment Operations (2012-2018).
William C. Coffey (1969)
Year of Election or Appointment: 2018
Secretary and Chief Legal Officer (CLO)
Mr. Coffey also serves as Secretary and CLO of other funds. Mr. Coffey serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2018-present); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2018-present); and CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2018-present). He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Assistant Secretary of certain funds (2009-2018) and as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Timothy M. Cohen (1969)
Year of Election or Appointment: 2018
Vice President
Mr. Cohen also serves as Vice President of other funds. Mr. Cohen serves as Co-Head of Global Equity Research (2016-present), a Director of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present), and is an employee of Fidelity Investments. Previously, Mr. Cohen served as Chief Investment Officer - Equity and a Director of Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2013-2015) and as a Director of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2017).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds. Mr. Davis serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present), and is an employee of Fidelity Investments (2008-present). Previously, Mr. Deberghes served as President and Treasurer of certain Fidelity® funds (2013-2018). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). Previously, Mr. Deberghes served in other fund officer roles.
Laura M. Del Prato (1964)
Year of Election or Appointment: 2018
Assistant Treasurer
Ms. Del Prato also serves as an officer of other funds. Ms. Del Prato is an employee of Fidelity Investments (2017-present). Prior to joining Fidelity Investments, Ms. Del Prato served as a Managing Director and Treasurer of the JPMorgan Mutual Funds (2014-2017). Prior to JPMorgan, Ms. Del Prato served as a partner at Cohen Fund Audit Services (accounting firm, 2012-2013) and KPMG LLP (accounting firm, 2004-2012).
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2005-present). Previously, Mr. Hogan served as Assistant Treasurer of certain Fidelity® funds (2016-2018).
Pamela R. Holding (1964)
Year of Election or Appointment: 2018
Vice President
Ms. Holding also serves as Vice President of other funds. Ms. Holding serves as Co-Head of Global Equity Research (2018-present) and is an employee of Fidelity Investments (2013-present).
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight, serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
Rieco E. Mello (1969)
Year of Election or Appointment: 2017
Assistant Treasurer
Mr. Mello also serves as Assistant Treasurer of other funds. Mr. Mello serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (1995-present).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. Ms. Smith serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), is an employee of Fidelity Investments (2009-present), and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Assistant Treasurer (2013-2018) and Deputy Treasurer (2013-2016) of certain Fidelity® funds.
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (June 1, 2018 to November 30, 2018).
Actual Expenses
The first line of the accompanying table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee, which was eliminated effective August 1, 2018, is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee, which was eliminated effective August 1, 2018, is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
Annualized Expense Ratio-A | Beginning Account Value June 1, 2018 | Ending Account Value November 30, 2018 | Expenses Paid During Period-B June 1, 2018 to November 30, 2018 | |
Actual | .64% | $1,000.00 | $988.30 | $3.19 |
Hypothetical-C | $1,000.00 | $1,021.86 | $3.24 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period).
C 5% return per year before expenses
Distributions (Unaudited)
The Board of Trustees of Fidelity New Millennium Fund voted to pay on December 27, 2018, to shareholders of record at the opening of business on December 26, 2018, a distribution of $5.306 per share derived from capital gains realized from sales of portfolio securities and a dividend of $0.391 per share from net investment income.
The fund hereby designates as a capital gain dividend with respect to the taxable year ended November 30, 2018, $432,399,088, or, if subsequently determined to be different, the net capital gain of such year.
The fund designates 58% of the dividend distributed during the fiscal year as qualifying for the dividends–received deduction for corporate shareholders.
The fund designates 65% of the dividend distributed during the fiscal year as amounts which may be taken into account as a dividend for the purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code.
The fund will notify shareholders in January 2019 of amounts for use in preparing 2018 income tax returns.
Board Approval of Investment Advisory Contracts
Fidelity New Millennium Fund
At its July 2018 meeting, the Board of Trustees, including the Independent Trustees (together, the Board), voted to continue the management contract with Fidelity Management & Research Company (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund for six months through January 31, 2019, in connection with the reunification of the Fidelity Equity High Income Funds Board, which oversees the fund, and the Sector Portfolios Board.
The Board considered that the approval of the fund's Advisory Contracts will not result in any changes in (i) the investment process or strategies employed in the management of the fund's assets; (ii) the fees and expenses paid by shareholders; (iii) the nature, extent or quality of services provided under the fund's Advisory Contracts; or (iv) the day-to-day management of the fund or the persons primarily responsible for such management. The Board concluded that the fund's Advisory Contracts are fair and reasonable, and that the fund's Advisory Contracts should be renewed, without modification, through January 31, 2019, with the understanding that the Board will consider the annual renewal for a full one year period in January 2019.
In connection with its consideration of future renewals of the fund's Advisory Contracts, the Board will consider: (i) the nature, extent and quality of services provided to the fund, including shareholder and administrative services and investment performance; (ii) the competitiveness of the management fee and total expenses for the fund; (iii) the costs of the services and profitability, including the revenues earned and the expenses incurred in conducting the business of developing, marketing, distributing, managing, administering, and servicing the fund and its shareholders, to the extent applicable, as well as potential fall-out benefits from Fidelity's non-fund businesses; and (iv) whether there have been economies of scale in respect of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is the potential for realization of any further economies.
Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board ultimately concluded that the fund's management fee structure is fair and reasonable, and that the continuation of the fund's Advisory Contracts should be approved.
Corporate Headquarters
245 Summer St.
Boston, MA 02210
www.fidelity.com
NMF-ANN-0119
1.539033.121
Fidelity® Growth Strategies Fund Annual Report November 30, 2018 |
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. © 2019 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
For the periods ended November 30, 2018 | Past 1 year | Past 5 years | Past 10 years |
Fidelity® Growth Strategies Fund | 2.74% | 9.02% | 14.29% |
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity® Growth Strategies Fund, a class of the fund, on November 30, 2008.
The chart shows how the value of your investment would have changed, and also shows how the Russell Midcap® Growth Index performed over the same period.
Period Ending Values | ||
$38,022 | Fidelity® Growth Strategies Fund | |
$46,614 | Russell Midcap® Growth Index |
Management's Discussion of Fund Performance
Market Recap: The S&P 500® index gained 6.27% for the 12 months ending November 30, 2018, as the U.S. equity bellwether declined sharply in October after climbing steadily beginning in May and achieving a record close in late September. Rising U.S. Treasury yields and concern about peaking corporate earnings growth sent many investors fleeing from risk assets at a time when they were still dealing with lingering uncertainty related to global trade and the U.S. Federal Reserve picking up the pace of interest rate hikes. The index returned -6.84% in October alone, its largest monthly drop in roughly seven years, and then endured a highly volatile November in which it gained 2.04%. For the full year, growth stocks within the index maintained a sizable advantage over their value counterparts, extending a trend that began in early 2017. A number of economically sensitive sectors dropped to the bottom of the 12-month performance scale, with materials (-7%) and energy (-2%) faring worst, followed by industrials (-1%) and financials (0%). In contrast, the defensive-oriented health care sector gained about 16% to lead the way. Consumer discretionary and information technology were rattled in October but earlier strength resulted in each advancing roughly 13% for the full 12 months. The newly reconstituted communication services sector, which includes dividend-rich telecom stocks, rose about 4%. Real estate (+5%), consumer staples (+3%) and utilities (+2%) also advanced but lagged the broader market.Comments from Portfolio Manager Jean Park: For the fiscal year, the fund's share classes returned roughly 3%, falling behind the 5.32% advance of the benchmark Russell Midcap® Growth Index. While the mid-cap equity market experienced a strong run for most of the period, these stocks pulled back sharply in September as volatility increased. Versus the Russell index, stock selection detracted most from the fund's relative return, even though positive market selection countered some of that effect. Specifically, stock choices in consumer discretionary and information technology proved detrimental. On an individual stock basis, untimely ownership of software solutions provider Red Hat detracted most versus the benchmark. While I did establish a small stake in Red Hat, it was not enough to reap all the gains when International Business Machines announced its $34 billion acquisition of the firm, which sent Red Hat's stock sharply higher. Also detracting was the fund's overweighted stake in auto electronics maker Visteon, which struggled, in part, from U.S. trade tariffs and slowing growth in China, and we sold off the position before period end. Conversely, stock picking in health care added value. However, the fund's biggest individual contributor - website domain provider VeriSign - came from the information technology sector. A renewed contract to maintain the internet's database of domain names and approval to increase its rates helped bolster VeriSign's stock price. An overweighting in e-commerce company TripAdvisor also contributed.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Investment Summary (Unaudited)
Top Ten Stocks as of November 30, 2018
% of fund's net assets | |
Total System Services, Inc. | 3.4 |
VeriSign, Inc. | 3.2 |
Wellcare Health Plans, Inc. | 2.9 |
Citrix Systems, Inc. | 2.7 |
ResMed, Inc. | 2.3 |
Roper Technologies, Inc. | 2.3 |
Fiserv, Inc. | 2.3 |
ON Semiconductor Corp. | 2.1 |
Edwards Lifesciences Corp. | 2.1 |
Huntington Ingalls Industries, Inc. | 2.0 |
25.3 |
Top Five Market Sectors as of November 30, 2018
% of fund's net assets | |
Information Technology | 34.1 |
Health Care | 17.2 |
Industrials | 15.7 |
Consumer Discretionary | 12.2 |
Financials | 7.8 |
Asset Allocation (% of fund's net assets)
As of November 30, 2018* | ||
Stocks | 98.3% | |
Short-Term Investments and Net Other Assets (Liabilities) | 1.7% |
* Foreign investments - 4.1%
Schedule of Investments November 30, 2018
Showing Percentage of Net Assets
Common Stocks - 98.3% | |||
Shares | Value (000s) | ||
COMMUNICATION SERVICES - 4.3% | |||
Entertainment - 3.5% | |||
Electronic Arts, Inc. (a) | 153,500 | $12,905 | |
Live Nation Entertainment, Inc. (a) | 515,000 | 28,675 | |
Take-Two Interactive Software, Inc. (a) | 425,000 | 46,610 | |
88,190 | |||
Interactive Media & Services - 0.8% | |||
TripAdvisor, Inc. (a) | 336,032 | 21,526 | |
TOTAL COMMUNICATION SERVICES | 109,716 | ||
CONSUMER DISCRETIONARY - 12.2% | |||
Auto Components - 1.4% | |||
Aptiv PLC | 490,000 | 35,231 | |
Distributors - 0.9% | |||
Pool Corp. | 143,800 | 23,369 | |
Diversified Consumer Services - 1.4% | |||
Service Corp. International | 794,000 | 36,683 | |
Hotels, Restaurants & Leisure - 2.3% | |||
Domino's Pizza, Inc. | 105,000 | 29,119 | |
Wyndham Destinations, Inc. | 350,000 | 14,515 | |
Wyndham Hotels & Resorts, Inc. | 305,000 | 15,290 | |
58,924 | |||
Multiline Retail - 1.4% | |||
Dollar General Corp. | 323,000 | 35,850 | |
Specialty Retail - 2.8% | |||
Burlington Stores, Inc. (a) | 160,000 | 26,522 | |
Ross Stores, Inc. | 510,200 | 44,694 | |
71,216 | |||
Textiles, Apparel & Luxury Goods - 2.0% | |||
Carter's, Inc. | 166,000 | 15,355 | |
VF Corp. | 430,000 | 34,955 | |
50,310 | |||
TOTAL CONSUMER DISCRETIONARY | 311,583 | ||
CONSUMER STAPLES - 3.3% | |||
Beverages - 1.2% | |||
Brown-Forman Corp. Class B (non-vtg.) | 465,400 | 22,209 | |
Monster Beverage Corp. (a) | 163,000 | 9,728 | |
31,937 | |||
Food Products - 1.2% | |||
The Hershey Co. | 277,600 | 30,064 | |
Personal Products - 0.9% | |||
Estee Lauder Companies, Inc. Class A | 47,000 | 6,705 | |
Herbalife Nutrition Ltd. (a) | 280,000 | 16,030 | |
22,735 | |||
TOTAL CONSUMER STAPLES | 84,736 | ||
ENERGY - 0.7% | |||
Oil, Gas & Consumable Fuels - 0.7% | |||
Marathon Petroleum Corp. | 270,081 | 17,598 | |
FINANCIALS - 7.8% | |||
Banks - 2.1% | |||
Citizens Financial Group, Inc. | 1,122,864 | 40,827 | |
Huntington Bancshares, Inc. | 900,000 | 13,131 | |
53,958 | |||
Capital Markets - 5.3% | |||
Ameriprise Financial, Inc. | 190,100 | 24,665 | |
E*TRADE Financial Corp. | 370,000 | 19,347 | |
MarketAxess Holdings, Inc. | 23,200 | 5,051 | |
Moody's Corp. | 270,000 | 42,949 | |
MSCI, Inc. | 200,000 | 31,418 | |
S&P Global, Inc. | 68,000 | 12,434 | |
135,864 | |||
Insurance - 0.4% | |||
Progressive Corp. | 132,733 | 8,799 | |
TOTAL FINANCIALS | 198,621 | ||
HEALTH CARE - 17.2% | |||
Health Care Equipment & Supplies - 5.2% | |||
DexCom, Inc. (a) | 71,000 | 9,201 | |
Edwards Lifesciences Corp. (a) | 325,000 | 52,653 | |
Intuitive Surgical, Inc. (a) | 24,900 | 13,219 | |
ResMed, Inc. | 520,000 | 58,131 | |
133,204 | |||
Health Care Providers & Services - 5.4% | |||
Centene Corp. (a) | 342,000 | 48,650 | |
Elanco Animal Health, Inc. | 13,300 | 444 | |
Laboratory Corp. of America Holdings (a) | 109,540 | 15,953 | |
Wellcare Health Plans, Inc. (a) | 286,400 | 72,998 | |
138,045 | |||
Health Care Technology - 0.9% | |||
Cerner Corp. (a) | 414,000 | 23,975 | |
Life Sciences Tools & Services - 4.5% | |||
Charles River Laboratories International, Inc. (a) | 323,000 | 43,557 | |
Mettler-Toledo International, Inc. (a) | 62,100 | 39,537 | |
Waters Corp. (a) | 165,200 | 32,805 | |
115,899 | |||
Pharmaceuticals - 1.2% | |||
Jazz Pharmaceuticals PLC (a) | 116,900 | 17,675 | |
Teva Pharmaceutical Industries Ltd. sponsored ADR (b) | 535,000 | 11,524 | |
29,199 | |||
TOTAL HEALTH CARE | 440,322 | ||
INDUSTRIALS - 15.7% | |||
Aerospace & Defense - 3.3% | |||
Huntington Ingalls Industries, Inc. | 240,000 | 51,720 | |
TransDigm Group, Inc. (a) | 90,500 | 32,731 | |
84,451 | |||
Airlines - 0.5% | |||
Alaska Air Group, Inc. | 180,000 | 13,187 | |
Commercial Services & Supplies - 3.4% | |||
Cintas Corp. | 190,000 | 35,602 | |
Copart, Inc. (a) | 487,000 | 24,925 | |
KAR Auction Services, Inc. | 448,980 | 25,655 | |
86,182 | |||
Electrical Equipment - 2.3% | |||
AMETEK, Inc. | 332,000 | 24,379 | |
Fortive Corp. | 468,700 | 35,654 | |
60,033 | |||
Industrial Conglomerates - 2.9% | |||
ITT, Inc. | 298,900 | 16,574 | |
Roper Technologies, Inc. | 194,700 | 57,941 | |
74,515 | |||
Machinery - 2.2% | |||
Cummins, Inc. | 45,000 | 6,798 | |
IDEX Corp. | 211,100 | 29,005 | |
Toro Co. | 331,000 | 20,519 | |
56,322 | |||
Professional Services - 1.1% | |||
CoStar Group, Inc. (a) | 12,689 | 4,687 | |
Equifax, Inc. | 219,000 | 22,485 | |
27,172 | |||
TOTAL INDUSTRIALS | 401,862 | ||
INFORMATION TECHNOLOGY - 34.1% | |||
Communications Equipment - 1.7% | |||
F5 Networks, Inc. (a) | 250,300 | 43,044 | |
Electronic Equipment & Components - 1.5% | |||
Amphenol Corp. Class A | 454,300 | 39,951 | |
IT Services - 13.2% | |||
Adyen BV | 1,400 | 724 | |
Akamai Technologies, Inc. (a) | 370,000 | 25,438 | |
Alliance Data Systems Corp. | 120,500 | 24,143 | |
Fiserv, Inc. (a) | 727,000 | 57,528 | |
FleetCor Technologies, Inc. (a) | 83,900 | 16,226 | |
Global Payments, Inc. | 249,300 | 27,874 | |
Total System Services, Inc. | 988,000 | 86,319 | |
VeriSign, Inc. (a) | 516,400 | 80,589 | |
Worldpay, Inc. (a) | 203,000 | 17,419 | |
336,260 | |||
Semiconductors & Semiconductor Equipment - 8.8% | |||
Analog Devices, Inc. | 347,000 | 31,896 | |
Broadcom, Inc. | 28,500 | 6,766 | |
KLA-Tencor Corp. | 302,900 | 29,854 | |
Lam Research Corp. | 255,980 | 40,179 | |
Microchip Technology, Inc. (b) | 420,541 | 31,541 | |
ON Semiconductor Corp. (a) | 2,780,066 | 53,322 | |
Skyworks Solutions, Inc. | 422,000 | 30,709 | |
224,267 | |||
Software - 8.9% | |||
Adobe, Inc. (a) | 61,100 | 15,329 | |
Black Knight, Inc. (a) | 393,134 | 17,825 | |
CDK Global, Inc. | 180,000 | 9,072 | |
Check Point Software Technologies Ltd. (a) | 209,850 | 23,463 | |
Citrix Systems, Inc. | 629,000 | 68,542 | |
Intuit, Inc. | 50,000 | 10,727 | |
Parametric Technology Corp. (a) | 353,676 | 30,589 | |
Red Hat, Inc. (a) | 32,080 | 5,728 | |
Workday, Inc. Class A (a) | 285,000 | 46,740 | |
228,015 | |||
TOTAL INFORMATION TECHNOLOGY | 871,537 | ||
MATERIALS - 0.5% | |||
Chemicals - 0.5% | |||
Sherwin-Williams Co. | 27,400 | 11,620 | |
REAL ESTATE - 2.0% | |||
Equity Real Estate Investment Trusts (REITs) - 2.0% | |||
CoreSite Realty Corp. | 253,500 | 24,706 | |
Equity Lifestyle Properties, Inc. | 264,900 | 26,365 | |
51,071 | |||
UTILITIES - 0.5% | |||
Independent Power and Renewable Electricity Producers - 0.5% | |||
NRG Energy, Inc. | 340,900 | 13,101 | |
TOTAL COMMON STOCKS | |||
(Cost $2,048,448) | 2,511,767 | ||
Money Market Funds - 3.0% | |||
Fidelity Cash Central Fund, 2.27% (c) | 47,695,912 | 47,705 | |
Fidelity Securities Lending Cash Central Fund 2.27% (c)(d) | 28,124,159 | 28,127 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $75,832) | 75,832 | ||
TOTAL INVESTMENT IN SECURITIES - 101.3% | |||
(Cost $2,124,280) | 2,587,599 | ||
NET OTHER ASSETS (LIABILITIES) - (1.3)% | (33,426) | ||
NET ASSETS - 100% | $2,554,173 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(d) Investment made with cash collateral received from securities on loan.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
(Amounts in thousands) | |
Fidelity Cash Central Fund | $677 |
Fidelity Securities Lending Cash Central Fund | 193 |
Total | $870 |
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
All investments are categorized as Level 1 under the Fair Value Hierarchy. 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 please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
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) | November 30, 2018 | |
Assets | ||
Investment in securities, at value (including securities loaned of $27,611) — See accompanying schedule: Unaffiliated issuers (cost $2,048,448) | $2,511,767 | |
Fidelity Central Funds (cost $75,832) | 75,832 | |
Total Investment in Securities (cost $2,124,280) | $2,587,599 | |
Receivable for investments sold | 28,553 | |
Receivable for fund shares sold | 470 | |
Dividends receivable | 2,593 | |
Distributions receivable from Fidelity Central Funds | 105 | |
Prepaid expenses | 5 | |
Other receivables | 100 | |
Total assets | 2,619,425 | |
Liabilities | ||
Payable for investments purchased | $349 | |
Payable for fund shares redeemed | 35,503 | |
Accrued management fee | 699 | |
Other affiliated payables | 434 | |
Other payables and accrued expenses | 140 | |
Collateral on securities loaned | 28,127 | |
Total liabilities | 65,252 | |
Net Assets | $2,554,173 | |
Net Assets consist of: | ||
Paid in capital | $2,079,314 | |
Total distributable earnings (loss) | 474,859 | |
Net Assets | $2,554,173 | |
Net Asset Value and Maximum Offering Price | ||
Growth Strategies: | ||
Net Asset Value, offering price and redemption price per share ($2,349,120 ÷ 56,071.47 shares) | $41.90 | |
Class K: | ||
Net Asset Value, offering price and redemption price per share ($205,053 ÷ 4,855.09 shares) | $42.23 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Amounts in thousands | Year ended November 30, 2018 | |
Investment Income | ||
Dividends | $25,877 | |
Special dividends | 5,797 | |
Income from Fidelity Central Funds | 870 | |
Total income | 32,544 | |
Expenses | ||
Management fee | ||
Basic fee | $14,961 | |
Performance adjustment | (4,461) | |
Transfer agent fees | 4,578 | |
Accounting and security lending fees | 830 | |
Custodian fees and expenses | 41 | |
Independent trustees' fees and expenses | 14 | |
Registration fees | 61 | |
Audit | 65 | |
Legal | 8 | |
Miscellaneous | 21 | |
Total expenses before reductions | 16,118 | |
Expense reductions | (104) | |
Total expenses after reductions | 16,014 | |
Net investment income (loss) | 16,530 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 8,907 | |
Fidelity Central Funds | (5) | |
Foreign currency transactions | 1 | |
Total net realized gain (loss) | 8,903 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 52,052 | |
Fidelity Central Funds | 8 | |
Total change in net unrealized appreciation (depreciation) | 52,060 | |
Net gain (loss) | 60,963 | |
Net increase (decrease) in net assets resulting from operations | $77,493 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Amounts in thousands | Year ended November 30, 2018 | Year ended November 30, 2017 |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $16,530 | $11,703 |
Net realized gain (loss) | 8,903 | 130,731 |
Change in net unrealized appreciation (depreciation) | 52,060 | 367,532 |
Net increase (decrease) in net assets resulting from operations | 77,493 | 509,966 |
Distributions to shareholders | (12,074) | – |
Distributions to shareholders from net investment income | – | (13,542) |
Distributions to shareholders from net realized gain | – | (1,063) |
Total distributions | (12,074) | (14,605) |
Share transactions - net increase (decrease) | (238,326) | (323,399) |
Redemption fees | – | 42 |
Total increase (decrease) in net assets | (172,907) | 172,004 |
Net Assets | ||
Beginning of period | 2,727,080 | 2,555,076 |
End of period | $2,554,173 | $2,727,080 |
Other Information | ||
Undistributed net investment income end of period | $9,985 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Growth Strategies Fund
Years ended November 30, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $40.96 | $33.87 | $33.91 | $32.44 | $27.66 |
Income from Investment Operations | |||||
Net investment income (loss)A | .25B | .16C | .16D | .04 | .11 |
Net realized and unrealized gain (loss) | .87 | 7.13 | (.16) | 1.53 | 4.72 |
Total from investment operations | 1.12 | 7.29 | – | 1.57 | 4.83 |
Distributions from net investment income | (.16) | (.18) | (.04) | (.09) | (.05) |
Distributions from net realized gain | (.02) | (.02) | – | (.01) | – |
Total distributions | (.18) | (.20) | (.04) | (.10) | (.05) |
Redemption fees added to paid in capitalA | – | –E | –E | –E | –E |
Net asset value, end of period | $41.90 | $40.96 | $33.87 | $33.91 | $32.44 |
Total ReturnF | 2.74% | 21.63% | .02% | 4.86% | 17.50% |
Ratios to Average Net AssetsG,H | |||||
Expenses before reductions | .59% | .78% | .94% | .91% | .72% |
Expenses net of fee waivers, if any | .59% | .78% | .94% | .91% | .72% |
Expenses net of all reductions | .59% | .78% | .94% | .91% | .72% |
Net investment income (loss) | .59%B | .43%C | .49%D | .13% | .37% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $2,349 | $2,455 | $2,080 | $2,535 | $1,835 |
Portfolio turnover rateI | 43%J | 73%J | 63% | 40% | 58% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $.09 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .38 %.
C Net investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .27%.
D Net investment income per share reflects a large, non-recurring dividend which amounted to $.05 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .34%.
E Amount represents less than $.005 per share.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
J Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Fidelity Growth Strategies Fund Class K
Years ended November 30, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $41.29 | $34.14 | $34.17 | $32.70 | $27.88 |
Income from Investment Operations | |||||
Net investment income (loss)A | .31B | .21C | .21D | .10 | .17 |
Net realized and unrealized gain (loss) | .86 | 7.19 | (.14) | 1.52 | 4.76 |
Total from investment operations | 1.17 | 7.40 | .07 | 1.62 | 4.93 |
Distributions from net investment income | (.21) | (.23) | (.10) | (.15) | (.11) |
Distributions from net realized gain | (.02) | (.02) | – | (.01) | – |
Total distributions | (.23) | (.25) | (.10) | (.15)E | (.11) |
Redemption fees added to paid in capitalA | – | –F | –F | –F | –F |
Net asset value, end of period | $42.23 | $41.29 | $34.14 | $34.17 | $32.70 |
Total ReturnG | 2.84% | 21.81% | .20% | 5.00% | 17.75% |
Ratios to Average Net AssetsH,I | |||||
Expenses before reductions | .46% | .63% | .78% | .76% | .53% |
Expenses net of fee waivers, if any | .46% | .63% | .78% | .76% | .53% |
Expenses net of all reductions | .46% | .63% | .78% | .76% | .53% |
Net investment income (loss) | .72%B | .57%C | .64%D | .28% | .56% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $205 | $272 | $475 | $699 | $385 |
Portfolio turnover rateJ | 43%K | 73%K | 63% | 40% | 58% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $.09 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .51%.
C Net investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .42%.
D Net investment income per share reflects a large, non-recurring dividend which amounted to $.05 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .50%.
E Total distributions of $.15 per share is comprised of distributions from net investment income of $.145 and distributions from net realized gain of $.008 per share.
F Amount represents less than $.005 per share.
G Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
H Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
K Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended November 30, 2018
(Amounts in thousands except percentages)
1. Organization.
Fidelity Growth Strategies Fund (the Fund) is a fund of Fidelity Mt. Vernon 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 Growth Strategies and Class K shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investments Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. Large, non-recurring dividends recognized by the Fund are presented separately on the Statement of Operations as "Special Dividends" and the impact of these dividends is presented in the Financial Highlights. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan) for the Fund, certain independent Trustees have elected to defer receipt of a portion of their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees of $77 are included in the accompanying Statement of Assets and Liabilities in other receivables and other payables and accrued expenses, respectively.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. As of November 30, 2018, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
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, deferred trustees compensation, 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 | $518,358 |
Gross unrealized depreciation | (55,235) |
Net unrealized appreciation (depreciation) | $463,123 |
Tax Cost | $2,124,476 |
The tax-based components of distributable earnings as of period end were as follows:
Undistributed ordinary income | $15,802 |
Capital loss carryforward | $(3,989) |
Net unrealized appreciation (depreciation) on securities and other investments | $463,123 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of fiscal period end and is subject to adjustment.
No expiration | |
Short-term | $(3,989) |
The tax character of distributions paid was as follows:
November 30, 2018 | November 30, 2017 | |
Ordinary Income | $10,814 | $ 14,605 |
Long-term Capital Gains | 1,260 | – |
Total | $12,074 | $ 14,605 |
New Rule Issuance. During August 2018, the U.S. Securities and Exchange Commission issued Final Rule Release No. 33-10532, Disclosure Update and Simplification. This Final Rule includes amendments specific to registered investment companies that are intended to eliminate overlap in disclosure requirements between Regulation S-X and GAAP. In accordance with these amendments, certain line-items in the Fund's financial statements have been combined or removed for the current period as outlined in the table below.
Financial Statement | Current Line-Item Presentation | Prior Line-Item Presentation |
Statement of Assets and Liabilities | Total distributable earnings (loss) | Undistributed/Distributions in excess of/Accumulated net investment income (loss) Accumulated/Undistributed net realized gain (loss) Net unrealized appreciation (depreciation) |
Statement of Changes in Net Assets | N/A - removed | Undistributed/Distributions in excess of/Accumulated net investment income (loss) end of period |
Statement of Changes in Net Assets | Distributions to shareholders | Distributions to shareholders from net investment income Distributions to shareholders from net realized gain |
Distributions to Shareholders Note to Financial Statements | Distributions to shareholders | Distributions to shareholders from net investment income Distributions to shareholders from net realized gain |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and in-kind transactions, aggregated $1,161,113 and $1,343,867, respectively.
Unaffiliated Redemptions In-Kind. During the period, 1,166 shares of the Fund were redeemed in-kind for investments and cash with a value of $49,867. The net realized gain of $12,890 on investments delivered through the in-kind redemptions is included in the accompanying Statement of Operations. The amount of the redemptions is included in share transactions activity shown in the accompanying Statement of Changes in Net Assets as well as the Notes to Financial Statements. The Fund recognized no gain or loss for federal income tax purposes.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .24% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of +/- .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of Growth Strategies as compared to its benchmark index, the Russell Midcap Growth Index, over the same 36 month performance period. For the reporting period, the total annual management fee rate, including the performance adjustment, was .38% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of Growth Strategies, except for Class K. FIIOC receives an asset-based fee of Class K's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
Amount | % of Class-Level Average Net Assets | |
Growth Strategies | $4,472 | .18 |
Class K | 106 | .05 |
$4,578 |
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions. For the period, the fees were equivalent to an annual rate of .03%.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $24 for the period.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
Other. During the period, the investment adviser reimbursed the Fund for certain losses in the amount of $21.
Prior Fiscal Year Redemptions In-Kind. During the prior period, 2,028 shares of the Fund held by an affiliated entity were redeemed in-kind for investments and cash with a value of $77,806. The Fund had a net realized gain of $13,916 on investments delivered through the 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.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $8 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. At period end, there were no security loans outstanding with FCM. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $193, including an amount of less than five hundred dollars from securities loaned to FCM.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $76 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $1.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $27.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Year ended November 30, 2018 | Year ended November 30, 2017 | |
Distributions to shareholders | ||
Growth Strategies | $10,565 | $– |
Class K | 1,509 | – |
Total | $12,074 | $– |
From net investment income | ||
Growth Strategies | $– | $11,145 |
Class K | – | 2,397 |
Total | $– | $13,542 |
From net realized gain | ||
Growth Strategies | $– | $909 |
Class K | – | 154 |
Total | $– | $1,063 |
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 | |
Year ended November 30, 2018 | Year ended November 30, 2017 | Year ended November 30, 2018 | Year ended November 30, 2017 | |
Growth Strategies | ||||
Shares sold | 7,553 | 8,324 | $323,380 | $303,468 |
Reinvestment of distributions | 247 | 338 | 10,142 | 11,624 |
Shares redeemed | (11,655) | (10,158) | (497,572) | (373,570) |
Net increase (decrease) | (3,855) | (1,496) | $(164,050) | $(58,478) |
Class K | ||||
Shares sold | 623 | 1,619 | $26,706 | $59,764 |
Reinvestment of distributions | 36 | 74 | 1,509 | 2,551 |
Shares redeemed | (2,402)(a) | (9,002)(b) | (102,491)(a) | (327,236)(b) |
Net increase (decrease) | (1,743) | (7,309) | $(74,276) | $(264,921) |
(a) Amount includes in-kind redemptions (see the Unaffiliated Redemptions In-Kind note for additional details).
(b) Amount includes in-kind redemptions (see the Prior Fiscal Year Redemptions In-Kind note for additional details).
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.
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Fidelity Mt. Vernon Street Trust and Shareholders of Fidelity Growth Strategies Fund:
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Fidelity Growth Strategies Fund (one of the funds constituting Fidelity Mt. Vernon Street Trust, referred to hereafter as the "Fund") as of November 30, 2018, the related statement of operations for the year ended November 30, 2018, the statement of changes in net assets for each of the two years in the period ended November 30, 2018, including the related notes, and the financial highlights for each of the five years in the period ended November 30, 2018 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of November 30, 2018, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended November 30, 2018 and the financial highlights for each of the five years in the period ended November 30, 2018 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of November 30, 2018 by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Boston, Massachusetts
January 16, 2019
We have served as the auditor of one or more investment companies in the Fidelity group of funds since 1932.
Trustees and Officers
The Trustees, Members of the Advisory Board (if any), and officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Except for Michael E. Wiley, each of the Trustees oversees 281 funds. Mr. Wiley oversees 192 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the fund is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund’s Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Board Structure and Oversight Function. James C. Curvey is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Ned C. Lautenbach serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and other equity funds. The asset allocation funds may invest in Fidelity® funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. In addition, the Independent Trustees have worked with Fidelity to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
James C. Curvey (1935)
Year of Election or Appointment: 2007
Trustee
Chairman of the Board of Trustees
Mr. Curvey also serves as Trustee of other Fidelity® funds. Mr. Curvey is Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey is an Overseer Emeritus for the Boston Symphony Orchestra, a Director of Artis-Naples, and a Trustee of Brewster Academy in Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-2018), Director of Fidelity Investments Money Management, Inc. (investment adviser firm, 2009-2014) and a Director of FMR and FMR Co., Inc. (investment adviser firms, 2007-2014).
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), as a member of the Independent Directors Council (IDC) Governing Council (2010-2015), and as a member of the Board of Directors for The Brookville Center for Children’s Services, Inc. (2009-2017). Mr. Dirks is a member of the Finance Committee (2016-present) and Board of Directors (2017-present) and is Treasurer (2018-present) of the Asolo Repertory Theatre.
Donald F. Donahue (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Donahue also serves as a Trustee of other Fidelity® funds. Mr. Donahue is President and Chief Executive Officer of Miranda Partners, LLC (risk consulting for the financial services industry, 2012-present). Previously, Mr. Donahue served as a Member of the Advisory Board of certain Fidelity® funds (2015-2018) and Chief Executive Officer (2006-2012), Chief Operating Officer (2003-2006), and Managing Director, Customer Marketing and Development (1999-2003) of The Depository Trust & Clearing Corporation (financial markets infrastructure). Mr. Donahue serves as a Member (2007-present) and Co-Chairman (2016-present) of the Board of Directors of United Way of New York, Member of the Board of Directors of NYC Leadership Academy (2012-present) and Member of the Board of Advisors of Ripple Labs, Inc. (financial services, 2015-present). He also served as Chairman (2010-2012) and Member of the Board of Directors (2012-2013) of Omgeo, LLC (financial services), Treasurer of United Way of New York (2012-2016), and Member of the Board of Directors of XBRL US (financial services non-profit, 2009-2012) and the International Securities Services Association (2009-2012).
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2014-2017) and a member (2010-2017) of the Board of Directors of Dave & Buster’s Entertainment, Inc. (restaurant and entertainment complexes), as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association, and as a member of the Board of Directors for The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), Earth Fare, Inc. (retail grocery, 2010-2014), and The Western Union Company (global money transfer, 2006-2011).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as Chair (2018-present) and Member (2013-present) of the Board of Governors, State University System of Florida and is a member of the Council on Foreign Relations (1994-present). He is also a member and has most recently served as Chairman of the Board of Directors of Artis-Naples (2012-present). Previously, Mr. Lautenbach served as a member and then Lead Director of the Board of Directors of Eaton Corporation (diversified industrial, 1997-2016). He was also a Partner and Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007). In addition, Mr. Lautenbach also had a 30-year career with IBM (technology company) during which time he served as Senior Vice President and a member of the Corporate Executive Committee (1968-1998).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-2018).
Cornelia M. Small (1944)
Year of Election or Appointment: 2005
Trustee
Ms. Small also serves as Trustee of other Fidelity® funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.
Garnett A. Smith (1947)
Year of Election or Appointment: 2018
Trustee
Mr. Smith also serves as Trustee of other Fidelity® funds. Prior to Mr. Smith's retirement, he served as Chairman and Chief Executive Officer of Inbrand Corp. (manufacturer of personal absorbent products, 1990-1997). He also served as President (1986-1990) of Inbrand Corp. Prior to his employment with Inbrand Corp., he was employed by a retail fabric chain and North Carolina National Bank. In addition, Mr. Smith served as a Member of the Advisory Board of certain Fidelity® funds (2012-2013) and as a board member of the Jackson Hole Land Trust (2009-2012).
David M. Thomas (1949)
Year of Election or Appointment: 2008
Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present) and as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), a Director of Fortune Brands, Inc. (consumer products, 2000-2011), and a member of the Board of Trustees of the University of Florida (2013-2018).
Michael E. Wiley (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Wiley also serves as Trustee or Member of the Advisory Board of other Fidelity® funds. Mr. Wiley serves as a Director of High Point Resources (exploration and production, 2005-present). Previously, Mr. Wiley served as a Director of Andeavor Corporation (independent oil refiner and marketer, 2005-2018), a Director of Andeavor Logistics LP (natural resources logistics, 2015-2018), a Director of Post Oak Bank (privately-held bank, 2004-2018), a Director of Asia Pacific Exploration Consolidated (international oil and gas exploration and production, 2008-2013), a member of the Board of Trustees of the University of Tulsa (2000-2006; 2007-2010), a Senior Energy Advisor of Katzenbach Partners, LLC (consulting, 2006-2007), an Advisory Director of Riverstone Holdings (private investment), a Director of Spinnaker Exploration Company (exploration and production, 2001-2005) and Chairman, President, and CEO of Baker Hughes, Inc. (oilfield services, 2000-2004).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Advisory Board Members and Officers:
Correspondence intended for a Member of the Advisory Board (if any) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235. Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Vicki L. Fuller (1957)
Year of Election or Appointment: 2018
Member of the Advisory Board
Ms. Fuller also serves as Member of the Advisory Board of other Fidelity® funds. Ms. Fuller serves as a member of the Board of Directors, Audit Committee, and Nominating and Governance Committee of The Williams Companies, Inc. (natural gas infrastructure, 2018-present). Previously, Ms. Fuller served as the Chief Investment Officer of the New York State Common Retirement Fund (2012-2018) and held a variety of positions at AllianceBernstein L.P. (global asset management, 1985-2012), including Managing Director (2006-2012) and Senior Vice President and Senior Portfolio Manager (2001-2006).
Peter S. Lynch (1944)
Year of Election or Appointment: 2003
Member of the Advisory Board
Mr. Lynch also serves as Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of FMR (investment adviser firm) and FMR Co., Inc. (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).
Carol B. Tomé (1957)
Year of Election or Appointment: 2018
Member of the Advisory Board
Ms. Tomé also serves as Member of the Advisory Board of other Fidelity® funds. Ms. Tomé is Chief Financial Officer (2001-present) and Executive Vice President of Corporate Services (2007-present) of The Home Depot, Inc. (home improvement retailer) and a Director (2003-present) and Chair of the Audit Committee (2004-present) of United Parcel Service, Inc. (package delivery and supply chain management). Previously, Ms. Tomé served as Trustee of certain Fidelity® funds (2017), Senior Vice President of Finance and Accounting/Treasurer (2000-2007) and Vice President and Treasurer (1995-2000) of The Home Depot, Inc. and Chair of the Board (2010-2012), Vice Chair of the Board (2009 and 2013), and a Director (2008-2013) of the Federal Reserve Bank of Atlanta. Ms. Tomé is also a director or trustee of many community and professional organizations.
Elizabeth Paige Baumann (1968)
Year of Election or Appointment: 2017
Anti-Money Laundering (AML) Officer
Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer (2012-present) and Senior Vice President (2014-present) of FMR LLC (diversified financial services company) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as AML Officer of the funds (2012-2016), and Vice President (2007-2014) and Deputy Anti-Money Laundering Officer (2007-2012) of FMR LLC.
John J. Burke III (1964)
Year of Election or Appointment: 2018
Chief Financial Officer
Mr. Burke also serves as Chief Financial Officer of other funds. Mr. Burke serves as Head of Investment Operations for Fidelity Fund and Investment Operations (2018-present) and is an employee of Fidelity Investments (1998-present). Previously Mr. Burke served as head of Asset Management Investment Operations (2012-2018).
William C. Coffey (1969)
Year of Election or Appointment: 2018
Secretary and Chief Legal Officer (CLO)
Mr. Coffey also serves as Secretary and CLO of other funds. Mr. Coffey serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2018-present); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2018-present); and CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2018-present). He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Assistant Secretary of certain funds (2009-2018) and as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Timothy M. Cohen (1969)
Year of Election or Appointment: 2018
Vice President
Mr. Cohen also serves as Vice President of other funds. Mr. Cohen serves as Co-Head of Global Equity Research (2016-present), a Director of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present), and is an employee of Fidelity Investments. Previously, Mr. Cohen served as Chief Investment Officer - Equity and a Director of Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2013-2015) and as a Director of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2017).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds. Mr. Davis serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present), and is an employee of Fidelity Investments (2008-present). Previously, Mr. Deberghes served as President and Treasurer of certain Fidelity® funds (2013-2018). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). Previously, Mr. Deberghes served in other fund officer roles.
Laura M. Del Prato (1964)
Year of Election or Appointment: 2018
Assistant Treasurer
Ms. Del Prato also serves as an officer of other funds. Ms. Del Prato is an employee of Fidelity Investments (2017-present). Prior to joining Fidelity Investments, Ms. Del Prato served as a Managing Director and Treasurer of the JPMorgan Mutual Funds (2014-2017). Prior to JPMorgan, Ms. Del Prato served as a partner at Cohen Fund Audit Services (accounting firm, 2012-2013) and KPMG LLP (accounting firm, 2004-2012).
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2005-present). Previously, Mr. Hogan served as Assistant Treasurer of certain Fidelity® funds (2016-2018).
Pamela R. Holding (1964)
Year of Election or Appointment: 2018
Vice President
Ms. Holding also serves as Vice President of other funds. Ms. Holding serves as Co-Head of Global Equity Research (2018-present) and is an employee of Fidelity Investments (2013-present).
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight, serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
Rieco E. Mello (1969)
Year of Election or Appointment: 2017
Assistant Treasurer
Mr. Mello also serves as Assistant Treasurer of other funds. Mr. Mello serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (1995-present).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. Ms. Smith serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), is an employee of Fidelity Investments (2009-present), and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Assistant Treasurer (2013-2018) and Deputy Treasurer (2013-2016) of certain Fidelity® funds.
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (June 1, 2018 to November 30, 2018).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee, which was eliminated effective August 1, 2018, is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee, which was eliminated effective August 1, 2018, is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
Annualized Expense Ratio-A | Beginning Account Value June 1, 2018 | Ending Account Value November 30, 2018 | Expenses Paid During Period-B June 1, 2018 to November 30, 2018 | |
Growth Strategies | .55% | |||
Actual | $1,000.00 | $978.70 | $2.73 | |
Hypothetical-C | $1,000.00 | $1,022.31 | $2.79 | |
Class K | .42% | |||
Actual | $1,000.00 | $979.10 | $2.08 | |
Hypothetical-C | $1,000.00 | $1,022.96 | $2.13 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period).
C 5% return per year before expenses
Distributions (Unaudited)
Fidelity Growth Strategies and Class K designate 100% of the dividends distributed during the fiscal year as qualifying for the dividends–received deduction for corporate shareholders.
Fidelity Growth Strategies and Class K designate 100% of the dividends distributed during the fiscal year as amounts which may be taken into account as a dividend for purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code.
The fund will notify shareholders in January 2019 of amounts for use in preparing 2018 income tax returns.
Board Approval of Investment Advisory Contracts
Fidelity Growth Strategies Fund
At its July 2018 meeting, the Board of Trustees, including the Independent Trustees (together, the Board), voted to continue the management contract with Fidelity Management & Research Company (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund for six months through January 31, 2019, in connection with the reunification of the Fidelity Equity High Income Funds Board, which oversees the fund, and the Sector Portfolios Board.
The Board considered that the approval of the fund's Advisory Contracts will not result in any changes in (i) the investment process or strategies employed in the management of the fund's assets; (ii) the fees and expenses paid by shareholders; (iii) the nature, extent or quality of services provided under the fund's Advisory Contracts; or (iv) the day-to-day management of the fund or the persons primarily responsible for such management. The Board concluded that the fund's Advisory Contracts are fair and reasonable, and that the fund's Advisory Contracts should be renewed, without modification, through January 31, 2019, with the understanding that the Board will consider the annual renewal for a full one year period in January 2019.
In connection with its consideration of future renewals of the fund's Advisory Contracts, the Board will consider: (i) the nature, extent and quality of services provided to the fund, including shareholder and administrative services and investment performance; (ii) the competitiveness of the management fee and total expenses for the fund; (iii) the costs of the services and profitability, including the revenues earned and the expenses incurred in conducting the business of developing, marketing, distributing, managing, administering, and servicing the fund and its shareholders, to the extent applicable, as well as potential fall-out benefits from Fidelity's non-fund businesses; and (iv) whether there have been economies of scale in respect of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is the potential for realization of any further economies.
Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board ultimately concluded that the fund's management fee structure is fair and reasonable, and that the continuation of the fund's Advisory Contracts should be approved.
Corporate Headquarters
245 Summer St.
Boston, MA 02210
www.fidelity.com
FEG-ANN-0119
1.539208.121
Fidelity® Growth Strategies Fund Class K Annual Report November 30, 2018 |
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of a fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a financial advisor, broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from a fund electronically, by contacting your financial intermediary. For Fidelity customers, visit Fidelity's web site or call Fidelity using the contact information listed below.
You may elect to receive all future reports in paper free of charge. If you wish to continue receiving paper copies of your shareholder reports, you may contact your financial intermediary or, if you are a Fidelity customer, visit Fidelity’s website, or call Fidelity at the applicable toll-free number listed below. Your election to receive reports in paper will apply to all funds held with the fund complex/your financial intermediary.
Account Type | Website | Phone Number |
Brokerage, Mutual Fund, or Annuity Contracts: | fidelity.com/mailpreferences | 1-800-343-3548 |
Employer Provided Retirement Accounts: | netbenefits.fidelity.com/preferences (choose 'no' under Required Disclosures to continue to print) | 1-800-343-0860 |
Advisor Sold Accounts Serviced Through Your Financial Intermediary: | Contact Your Financial Intermediary | Your Financial Intermediary's phone number |
Advisor Sold Accounts Serviced by Fidelity: | institutional.fidelity.com | 1-877-208-0098 |
Contents
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-800-835-5092 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2019 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
For the periods ended November 30, 2018 | Past 1 year | Past 5 years | Past 10 years |
Class K | 2.84% | 9.19% | 14.52% |
The initial offering of Class K shares took place on May 9, 2008. Returns prior to May 9, 2008 are those of Fidelity® Growth Strategies Fund, the original class of the fund.
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity® Growth Strategies Fund - Class K on November 30, 2008.
The chart shows how the value of your investment would have changed, and also shows how the Russell Midcap® Growth Index performed over the same period.
See above for additional information regarding the performance of Class K.
Period Ending Values | ||
$38,811 | Fidelity® Growth Strategies Fund - Class K | |
$46,614 | Russell Midcap® Growth Index |
Management's Discussion of Fund Performance
Market Recap: The S&P 500® index gained 6.27% for the 12 months ending November 30, 2018, as the U.S. equity bellwether declined sharply in October after climbing steadily beginning in May and achieving a record close in late September. Rising U.S. Treasury yields and concern about peaking corporate earnings growth sent many investors fleeing from risk assets at a time when they were still dealing with lingering uncertainty related to global trade and the U.S. Federal Reserve picking up the pace of interest rate hikes. The index returned -6.84% in October alone, its largest monthly drop in roughly seven years, and then endured a highly volatile November in which it gained 2.04%. For the full year, growth stocks within the index maintained a sizable advantage over their value counterparts, extending a trend that began in early 2017. A number of economically sensitive sectors dropped to the bottom of the 12-month performance scale, with materials (-7%) and energy (-2%) faring worst, followed by industrials (-1%) and financials (0%). In contrast, the defensive-oriented health care sector gained about 16% to lead the way. Consumer discretionary and information technology were rattled in October but earlier strength resulted in each advancing roughly 13% for the full 12 months. The newly reconstituted communication services sector, which includes dividend-rich telecom stocks, rose about 4%. Real estate (+5%), consumer staples (+3%) and utilities (+2%) also advanced but lagged the broader market.Comments from Portfolio Manager Jean Park: For the fiscal year, the fund's share classes returned roughly 3%, falling behind the 5.32% advance of the benchmark Russell Midcap® Growth Index. While the mid-cap equity market experienced a strong run for most of the period, these stocks pulled back sharply in September as volatility increased. Versus the Russell index, stock selection detracted most from the fund's relative return, even though positive market selection countered some of that effect. Specifically, stock choices in consumer discretionary and information technology proved detrimental. On an individual stock basis, untimely ownership of software solutions provider Red Hat detracted most versus the benchmark. While I did establish a small stake in Red Hat, it was not enough to reap all the gains when International Business Machines announced its $34 billion acquisition of the firm, which sent Red Hat's stock sharply higher. Also detracting was the fund's overweighted stake in auto electronics maker Visteon, which struggled, in part, from U.S. trade tariffs and slowing growth in China, and we sold off the position before period end. Conversely, stock picking in health care added value. However, the fund's biggest individual contributor - website domain provider VeriSign - came from the information technology sector. A renewed contract to maintain the internet's database of domain names and approval to increase its rates helped bolster VeriSign's stock price. An overweighting in e-commerce company TripAdvisor also contributed.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Investment Summary (Unaudited)
Top Ten Stocks as of November 30, 2018
% of fund's net assets | |
Total System Services, Inc. | 3.4 |
VeriSign, Inc. | 3.2 |
Wellcare Health Plans, Inc. | 2.9 |
Citrix Systems, Inc. | 2.7 |
ResMed, Inc. | 2.3 |
Roper Technologies, Inc. | 2.3 |
Fiserv, Inc. | 2.3 |
ON Semiconductor Corp. | 2.1 |
Edwards Lifesciences Corp. | 2.1 |
Huntington Ingalls Industries, Inc. | 2.0 |
25.3 |
Top Five Market Sectors as of November 30, 2018
% of fund's net assets | |
Information Technology | 34.1 |
Health Care | 17.2 |
Industrials | 15.7 |
Consumer Discretionary | 12.2 |
Financials | 7.8 |
Asset Allocation (% of fund's net assets)
As of November 30, 2018* | ||
Stocks | 98.3% | |
Short-Term Investments and Net Other Assets (Liabilities) | 1.7% |
* Foreign investments - 4.1%
Schedule of Investments November 30, 2018
Showing Percentage of Net Assets
Common Stocks - 98.3% | |||
Shares | Value (000s) | ||
COMMUNICATION SERVICES - 4.3% | |||
Entertainment - 3.5% | |||
Electronic Arts, Inc. (a) | 153,500 | $12,905 | |
Live Nation Entertainment, Inc. (a) | 515,000 | 28,675 | |
Take-Two Interactive Software, Inc. (a) | 425,000 | 46,610 | |
88,190 | |||
Interactive Media & Services - 0.8% | |||
TripAdvisor, Inc. (a) | 336,032 | 21,526 | |
TOTAL COMMUNICATION SERVICES | 109,716 | ||
CONSUMER DISCRETIONARY - 12.2% | |||
Auto Components - 1.4% | |||
Aptiv PLC | 490,000 | 35,231 | |
Distributors - 0.9% | |||
Pool Corp. | 143,800 | 23,369 | |
Diversified Consumer Services - 1.4% | |||
Service Corp. International | 794,000 | 36,683 | |
Hotels, Restaurants & Leisure - 2.3% | |||
Domino's Pizza, Inc. | 105,000 | 29,119 | |
Wyndham Destinations, Inc. | 350,000 | 14,515 | |
Wyndham Hotels & Resorts, Inc. | 305,000 | 15,290 | |
58,924 | |||
Multiline Retail - 1.4% | |||
Dollar General Corp. | 323,000 | 35,850 | |
Specialty Retail - 2.8% | |||
Burlington Stores, Inc. (a) | 160,000 | 26,522 | |
Ross Stores, Inc. | 510,200 | 44,694 | |
71,216 | |||
Textiles, Apparel & Luxury Goods - 2.0% | |||
Carter's, Inc. | 166,000 | 15,355 | |
VF Corp. | 430,000 | 34,955 | |
50,310 | |||
TOTAL CONSUMER DISCRETIONARY | 311,583 | ||
CONSUMER STAPLES - 3.3% | |||
Beverages - 1.2% | |||
Brown-Forman Corp. Class B (non-vtg.) | 465,400 | 22,209 | |
Monster Beverage Corp. (a) | 163,000 | 9,728 | |
31,937 | |||
Food Products - 1.2% | |||
The Hershey Co. | 277,600 | 30,064 | |
Personal Products - 0.9% | |||
Estee Lauder Companies, Inc. Class A | 47,000 | 6,705 | |
Herbalife Nutrition Ltd. (a) | 280,000 | 16,030 | |
22,735 | |||
TOTAL CONSUMER STAPLES | 84,736 | ||
ENERGY - 0.7% | |||
Oil, Gas & Consumable Fuels - 0.7% | |||
Marathon Petroleum Corp. | 270,081 | 17,598 | |
FINANCIALS - 7.8% | |||
Banks - 2.1% | |||
Citizens Financial Group, Inc. | 1,122,864 | 40,827 | |
Huntington Bancshares, Inc. | 900,000 | 13,131 | |
53,958 | |||
Capital Markets - 5.3% | |||
Ameriprise Financial, Inc. | 190,100 | 24,665 | |
E*TRADE Financial Corp. | 370,000 | 19,347 | |
MarketAxess Holdings, Inc. | 23,200 | 5,051 | |
Moody's Corp. | 270,000 | 42,949 | |
MSCI, Inc. | 200,000 | 31,418 | |
S&P Global, Inc. | 68,000 | 12,434 | |
135,864 | |||
Insurance - 0.4% | |||
Progressive Corp. | 132,733 | 8,799 | |
TOTAL FINANCIALS | 198,621 | ||
HEALTH CARE - 17.2% | |||
Health Care Equipment & Supplies - 5.2% | |||
DexCom, Inc. (a) | 71,000 | 9,201 | |
Edwards Lifesciences Corp. (a) | 325,000 | 52,653 | |
Intuitive Surgical, Inc. (a) | 24,900 | 13,219 | |
ResMed, Inc. | 520,000 | 58,131 | |
133,204 | |||
Health Care Providers & Services - 5.4% | |||
Centene Corp. (a) | 342,000 | 48,650 | |
Elanco Animal Health, Inc. | 13,300 | 444 | |
Laboratory Corp. of America Holdings (a) | 109,540 | 15,953 | |
Wellcare Health Plans, Inc. (a) | 286,400 | 72,998 | |
138,045 | |||
Health Care Technology - 0.9% | |||
Cerner Corp. (a) | 414,000 | 23,975 | |
Life Sciences Tools & Services - 4.5% | |||
Charles River Laboratories International, Inc. (a) | 323,000 | 43,557 | |
Mettler-Toledo International, Inc. (a) | 62,100 | 39,537 | |
Waters Corp. (a) | 165,200 | 32,805 | |
115,899 | |||
Pharmaceuticals - 1.2% | |||
Jazz Pharmaceuticals PLC (a) | 116,900 | 17,675 | |
Teva Pharmaceutical Industries Ltd. sponsored ADR (b) | 535,000 | 11,524 | |
29,199 | |||
TOTAL HEALTH CARE | 440,322 | ||
INDUSTRIALS - 15.7% | |||
Aerospace & Defense - 3.3% | |||
Huntington Ingalls Industries, Inc. | 240,000 | 51,720 | |
TransDigm Group, Inc. (a) | 90,500 | 32,731 | |
84,451 | |||
Airlines - 0.5% | |||
Alaska Air Group, Inc. | 180,000 | 13,187 | |
Commercial Services & Supplies - 3.4% | |||
Cintas Corp. | 190,000 | 35,602 | |
Copart, Inc. (a) | 487,000 | 24,925 | |
KAR Auction Services, Inc. | 448,980 | 25,655 | |
86,182 | |||
Electrical Equipment - 2.3% | |||
AMETEK, Inc. | 332,000 | 24,379 | |
Fortive Corp. | 468,700 | 35,654 | |
60,033 | |||
Industrial Conglomerates - 2.9% | |||
ITT, Inc. | 298,900 | 16,574 | |
Roper Technologies, Inc. | 194,700 | 57,941 | |
74,515 | |||
Machinery - 2.2% | |||
Cummins, Inc. | 45,000 | 6,798 | |
IDEX Corp. | 211,100 | 29,005 | |
Toro Co. | 331,000 | 20,519 | |
56,322 | |||
Professional Services - 1.1% | |||
CoStar Group, Inc. (a) | 12,689 | 4,687 | |
Equifax, Inc. | 219,000 | 22,485 | |
27,172 | |||
TOTAL INDUSTRIALS | 401,862 | ||
INFORMATION TECHNOLOGY - 34.1% | |||
Communications Equipment - 1.7% | |||
F5 Networks, Inc. (a) | 250,300 | 43,044 | |
Electronic Equipment & Components - 1.5% | |||
Amphenol Corp. Class A | 454,300 | 39,951 | |
IT Services - 13.2% | |||
Adyen BV | 1,400 | 724 | |
Akamai Technologies, Inc. (a) | 370,000 | 25,438 | |
Alliance Data Systems Corp. | 120,500 | 24,143 | |
Fiserv, Inc. (a) | 727,000 | 57,528 | |
FleetCor Technologies, Inc. (a) | 83,900 | 16,226 | |
Global Payments, Inc. | 249,300 | 27,874 | |
Total System Services, Inc. | 988,000 | 86,319 | |
VeriSign, Inc. (a) | 516,400 | 80,589 | |
Worldpay, Inc. (a) | 203,000 | 17,419 | |
336,260 | |||
Semiconductors & Semiconductor Equipment - 8.8% | |||
Analog Devices, Inc. | 347,000 | 31,896 | |
Broadcom, Inc. | 28,500 | 6,766 | |
KLA-Tencor Corp. | 302,900 | 29,854 | |
Lam Research Corp. | 255,980 | 40,179 | |
Microchip Technology, Inc. (b) | 420,541 | 31,541 | |
ON Semiconductor Corp. (a) | 2,780,066 | 53,322 | |
Skyworks Solutions, Inc. | 422,000 | 30,709 | |
224,267 | |||
Software - 8.9% | |||
Adobe, Inc. (a) | 61,100 | 15,329 | |
Black Knight, Inc. (a) | 393,134 | 17,825 | |
CDK Global, Inc. | 180,000 | 9,072 | |
Check Point Software Technologies Ltd. (a) | 209,850 | 23,463 | |
Citrix Systems, Inc. | 629,000 | 68,542 | |
Intuit, Inc. | 50,000 | 10,727 | |
Parametric Technology Corp. (a) | 353,676 | 30,589 | |
Red Hat, Inc. (a) | 32,080 | 5,728 | |
Workday, Inc. Class A (a) | 285,000 | 46,740 | |
228,015 | |||
TOTAL INFORMATION TECHNOLOGY | 871,537 | ||
MATERIALS - 0.5% | |||
Chemicals - 0.5% | |||
Sherwin-Williams Co. | 27,400 | 11,620 | |
REAL ESTATE - 2.0% | |||
Equity Real Estate Investment Trusts (REITs) - 2.0% | |||
CoreSite Realty Corp. | 253,500 | 24,706 | |
Equity Lifestyle Properties, Inc. | 264,900 | 26,365 | |
51,071 | |||
UTILITIES - 0.5% | |||
Independent Power and Renewable Electricity Producers - 0.5% | |||
NRG Energy, Inc. | 340,900 | 13,101 | |
TOTAL COMMON STOCKS | |||
(Cost $2,048,448) | 2,511,767 | ||
Money Market Funds - 3.0% | |||
Fidelity Cash Central Fund, 2.27% (c) | 47,695,912 | 47,705 | |
Fidelity Securities Lending Cash Central Fund 2.27% (c)(d) | 28,124,159 | 28,127 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $75,832) | 75,832 | ||
TOTAL INVESTMENT IN SECURITIES - 101.3% | |||
(Cost $2,124,280) | 2,587,599 | ||
NET OTHER ASSETS (LIABILITIES) - (1.3)% | (33,426) | ||
NET ASSETS - 100% | $2,554,173 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(d) Investment made with cash collateral received from securities on loan.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
(Amounts in thousands) | |
Fidelity Cash Central Fund | $677 |
Fidelity Securities Lending Cash Central Fund | 193 |
Total | $870 |
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
All investments are categorized as Level 1 under the Fair Value Hierarchy. 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 please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
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) | November 30, 2018 | |
Assets | ||
Investment in securities, at value (including securities loaned of $27,611) — See accompanying schedule: Unaffiliated issuers (cost $2,048,448) | $2,511,767 | |
Fidelity Central Funds (cost $75,832) | 75,832 | |
Total Investment in Securities (cost $2,124,280) | $2,587,599 | |
Receivable for investments sold | 28,553 | |
Receivable for fund shares sold | 470 | |
Dividends receivable | 2,593 | |
Distributions receivable from Fidelity Central Funds | 105 | |
Prepaid expenses | 5 | |
Other receivables | 100 | |
Total assets | 2,619,425 | |
Liabilities | ||
Payable for investments purchased | $349 | |
Payable for fund shares redeemed | 35,503 | |
Accrued management fee | 699 | |
Other affiliated payables | 434 | |
Other payables and accrued expenses | 140 | |
Collateral on securities loaned | 28,127 | |
Total liabilities | 65,252 | |
Net Assets | $2,554,173 | |
Net Assets consist of: | ||
Paid in capital | $2,079,314 | |
Total distributable earnings (loss) | 474,859 | |
Net Assets | $2,554,173 | |
Net Asset Value and Maximum Offering Price | ||
Growth Strategies: | ||
Net Asset Value, offering price and redemption price per share ($2,349,120 ÷ 56,071.47 shares) | $41.90 | |
Class K: | ||
Net Asset Value, offering price and redemption price per share ($205,053 ÷ 4,855.09 shares) | $42.23 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Amounts in thousands | Year ended November 30, 2018 | |
Investment Income | ||
Dividends | $25,877 | |
Special dividends | 5,797 | |
Income from Fidelity Central Funds | 870 | |
Total income | 32,544 | |
Expenses | ||
Management fee | ||
Basic fee | $14,961 | |
Performance adjustment | (4,461) | |
Transfer agent fees | 4,578 | |
Accounting and security lending fees | 830 | |
Custodian fees and expenses | 41 | |
Independent trustees' fees and expenses | 14 | |
Registration fees | 61 | |
Audit | 65 | |
Legal | 8 | |
Miscellaneous | 21 | |
Total expenses before reductions | 16,118 | |
Expense reductions | (104) | |
Total expenses after reductions | 16,014 | |
Net investment income (loss) | 16,530 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 8,907 | |
Fidelity Central Funds | (5) | |
Foreign currency transactions | 1 | |
Total net realized gain (loss) | 8,903 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 52,052 | |
Fidelity Central Funds | 8 | |
Total change in net unrealized appreciation (depreciation) | 52,060 | |
Net gain (loss) | 60,963 | |
Net increase (decrease) in net assets resulting from operations | $77,493 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Amounts in thousands | Year ended November 30, 2018 | Year ended November 30, 2017 |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $16,530 | $11,703 |
Net realized gain (loss) | 8,903 | 130,731 |
Change in net unrealized appreciation (depreciation) | 52,060 | 367,532 |
Net increase (decrease) in net assets resulting from operations | 77,493 | 509,966 |
Distributions to shareholders | (12,074) | – |
Distributions to shareholders from net investment income | – | (13,542) |
Distributions to shareholders from net realized gain | – | (1,063) |
Total distributions | (12,074) | (14,605) |
Share transactions - net increase (decrease) | (238,326) | (323,399) |
Redemption fees | – | 42 |
Total increase (decrease) in net assets | (172,907) | 172,004 |
Net Assets | ||
Beginning of period | 2,727,080 | 2,555,076 |
End of period | $2,554,173 | $2,727,080 |
Other Information | ||
Undistributed net investment income end of period | $9,985 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Growth Strategies Fund
Years ended November 30, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $40.96 | $33.87 | $33.91 | $32.44 | $27.66 |
Income from Investment Operations | |||||
Net investment income (loss)A | .25B | .16C | .16D | .04 | .11 |
Net realized and unrealized gain (loss) | .87 | 7.13 | (.16) | 1.53 | 4.72 |
Total from investment operations | 1.12 | 7.29 | – | 1.57 | 4.83 |
Distributions from net investment income | (.16) | (.18) | (.04) | (.09) | (.05) |
Distributions from net realized gain | (.02) | (.02) | – | (.01) | – |
Total distributions | (.18) | (.20) | (.04) | (.10) | (.05) |
Redemption fees added to paid in capitalA | – | –E | –E | –E | –E |
Net asset value, end of period | $41.90 | $40.96 | $33.87 | $33.91 | $32.44 |
Total ReturnF | 2.74% | 21.63% | .02% | 4.86% | 17.50% |
Ratios to Average Net AssetsG,H | |||||
Expenses before reductions | .59% | .78% | .94% | .91% | .72% |
Expenses net of fee waivers, if any | .59% | .78% | .94% | .91% | .72% |
Expenses net of all reductions | .59% | .78% | .94% | .91% | .72% |
Net investment income (loss) | .59%B | .43%C | .49%D | .13% | .37% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $2,349 | $2,455 | $2,080 | $2,535 | $1,835 |
Portfolio turnover rateI | 43%J | 73%J | 63% | 40% | 58% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $.09 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .38 %.
C Net investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .27%.
D Net investment income per share reflects a large, non-recurring dividend which amounted to $.05 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .34%.
E Amount represents less than $.005 per share.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
J Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Fidelity Growth Strategies Fund Class K
Years ended November 30, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $41.29 | $34.14 | $34.17 | $32.70 | $27.88 |
Income from Investment Operations | |||||
Net investment income (loss)A | .31B | .21C | .21D | .10 | .17 |
Net realized and unrealized gain (loss) | .86 | 7.19 | (.14) | 1.52 | 4.76 |
Total from investment operations | 1.17 | 7.40 | .07 | 1.62 | 4.93 |
Distributions from net investment income | (.21) | (.23) | (.10) | (.15) | (.11) |
Distributions from net realized gain | (.02) | (.02) | – | (.01) | – |
Total distributions | (.23) | (.25) | (.10) | (.15)E | (.11) |
Redemption fees added to paid in capitalA | – | –F | –F | –F | –F |
Net asset value, end of period | $42.23 | $41.29 | $34.14 | $34.17 | $32.70 |
Total ReturnG | 2.84% | 21.81% | .20% | 5.00% | 17.75% |
Ratios to Average Net AssetsH,I | |||||
Expenses before reductions | .46% | .63% | .78% | .76% | .53% |
Expenses net of fee waivers, if any | .46% | .63% | .78% | .76% | .53% |
Expenses net of all reductions | .46% | .63% | .78% | .76% | .53% |
Net investment income (loss) | .72%B | .57%C | .64%D | .28% | .56% |
Supplemental Data | |||||
Net assets, end of period (in millions) | $205 | $272 | $475 | $699 | $385 |
Portfolio turnover rateJ | 43%K | 73%K | 63% | 40% | 58% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $.09 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .51%.
C Net investment income per share reflects a large, non-recurring dividend which amounted to $.06 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .42%.
D Net investment income per share reflects a large, non-recurring dividend which amounted to $.05 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .50%.
E Total distributions of $.15 per share is comprised of distributions from net investment income of $.145 and distributions from net realized gain of $.008 per share.
F Amount represents less than $.005 per share.
G Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
H Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
K Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended November 30, 2018
(Amounts in thousands except percentages)
1. Organization.
Fidelity Growth Strategies Fund (the Fund) is a fund of Fidelity Mt. Vernon 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 Growth Strategies and Class K shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investments Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. Large, non-recurring dividends recognized by the Fund are presented separately on the Statement of Operations as "Special Dividends" and the impact of these dividends is presented in the Financial Highlights. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan) for the Fund, certain independent Trustees have elected to defer receipt of a portion of their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees of $77 are included in the accompanying Statement of Assets and Liabilities in other receivables and other payables and accrued expenses, respectively.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. As of November 30, 2018, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
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, deferred trustees compensation, 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 | $518,358 |
Gross unrealized depreciation | (55,235) |
Net unrealized appreciation (depreciation) | $463,123 |
Tax Cost | $2,124,476 |
The tax-based components of distributable earnings as of period end were as follows:
Undistributed ordinary income | $15,802 |
Capital loss carryforward | $(3,989) |
Net unrealized appreciation (depreciation) on securities and other investments | $463,123 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of fiscal period end and is subject to adjustment.
No expiration | |
Short-term | $(3,989) |
The tax character of distributions paid was as follows:
November 30, 2018 | November 30, 2017 | |
Ordinary Income | $10,814 | $ 14,605 |
Long-term Capital Gains | 1,260 | – |
Total | $12,074 | $ 14,605 |
New Rule Issuance. During August 2018, the U.S. Securities and Exchange Commission issued Final Rule Release No. 33-10532, Disclosure Update and Simplification. This Final Rule includes amendments specific to registered investment companies that are intended to eliminate overlap in disclosure requirements between Regulation S-X and GAAP. In accordance with these amendments, certain line-items in the Fund's financial statements have been combined or removed for the current period as outlined in the table below.
Financial Statement | Current Line-Item Presentation | Prior Line-Item Presentation |
Statement of Assets and Liabilities | Total distributable earnings (loss) | Undistributed/Distributions in excess of/Accumulated net investment income (loss) Accumulated/Undistributed net realized gain (loss) Net unrealized appreciation (depreciation) |
Statement of Changes in Net Assets | N/A - removed | Undistributed/Distributions in excess of/Accumulated net investment income (loss) end of period |
Statement of Changes in Net Assets | Distributions to shareholders | Distributions to shareholders from net investment income Distributions to shareholders from net realized gain |
Distributions to Shareholders Note to Financial Statements | Distributions to shareholders | Distributions to shareholders from net investment income Distributions to shareholders from net realized gain |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and in-kind transactions, aggregated $1,161,113 and $1,343,867, respectively.
Unaffiliated Redemptions In-Kind. During the period, 1,166 shares of the Fund were redeemed in-kind for investments and cash with a value of $49,867. The net realized gain of $12,890 on investments delivered through the in-kind redemptions is included in the accompanying Statement of Operations. The amount of the redemptions is included in share transactions activity shown in the accompanying Statement of Changes in Net Assets as well as the Notes to Financial Statements. The Fund recognized no gain or loss for federal income tax purposes.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .24% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of +/- .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of Growth Strategies as compared to its benchmark index, the Russell Midcap Growth Index, over the same 36 month performance period. For the reporting period, the total annual management fee rate, including the performance adjustment, was .38% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc., (FIIOC), an affiliate of the investment adviser, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of Growth Strategies, except for Class K. FIIOC receives an asset-based fee of Class K's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.
For the period, transfer agent fees for each class were as follows:
Amount | % of Class-Level Average Net Assets | |
Growth Strategies | $4,472 | .18 |
Class K | 106 | .05 |
$4,578 |
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions. For the period, the fees were equivalent to an annual rate of .03%.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $24 for the period.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
Other. During the period, the investment adviser reimbursed the Fund for certain losses in the amount of $21.
Prior Fiscal Year Redemptions In-Kind. During the prior period, 2,028 shares of the Fund held by an affiliated entity were redeemed in-kind for investments and cash with a value of $77,806. The Fund had a net realized gain of $13,916 on investments delivered through the 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.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $8 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. At period end, there were no security loans outstanding with FCM. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $193, including an amount of less than five hundred dollars from securities loaned to FCM.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $76 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $1.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $27.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Year ended November 30, 2018 | Year ended November 30, 2017 | |
Distributions to shareholders | ||
Growth Strategies | $10,565 | $– |
Class K | 1,509 | – |
Total | $12,074 | $– |
From net investment income | ||
Growth Strategies | $– | $11,145 |
Class K | – | 2,397 |
Total | $– | $13,542 |
From net realized gain | ||
Growth Strategies | $– | $909 |
Class K | – | 154 |
Total | $– | $1,063 |
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 | |
Year ended November 30, 2018 | Year ended November 30, 2017 | Year ended November 30, 2018 | Year ended November 30, 2017 | |
Growth Strategies | ||||
Shares sold | 7,553 | 8,324 | $323,380 | $303,468 |
Reinvestment of distributions | 247 | 338 | 10,142 | 11,624 |
Shares redeemed | (11,655) | (10,158) | (497,572) | (373,570) |
Net increase (decrease) | (3,855) | (1,496) | $(164,050) | $(58,478) |
Class K | ||||
Shares sold | 623 | 1,619 | $26,706 | $59,764 |
Reinvestment of distributions | 36 | 74 | 1,509 | 2,551 |
Shares redeemed | (2,402)(a) | (9,002)(b) | (102,491)(a) | (327,236)(b) |
Net increase (decrease) | (1,743) | (7,309) | $(74,276) | $(264,921) |
(a) Amount includes in-kind redemptions (see the Unaffiliated Redemptions In-Kind note for additional details).
(b) Amount includes in-kind redemptions (see the Prior Fiscal Year Redemptions In-Kind note for additional details).
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.
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Fidelity Mt. Vernon Street Trust and Shareholders of Fidelity Growth Strategies Fund:
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Fidelity Growth Strategies Fund (one of the funds constituting Fidelity Mt. Vernon Street Trust, referred to hereafter as the "Fund") as of November 30, 2018, the related statement of operations for the year ended November 30, 2018, the statement of changes in net assets for each of the two years in the period ended November 30, 2018, including the related notes, and the financial highlights for each of the five years in the period ended November 30, 2018 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of November 30, 2018, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period ended November 30, 2018 and the financial highlights for each of the five years in the period ended November 30, 2018 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of November 30, 2018 by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Boston, Massachusetts
January 16, 2019
We have served as the auditor of one or more investment companies in the Fidelity group of funds since 1932.
Trustees and Officers
The Trustees, Members of the Advisory Board (if any), and officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Except for Michael E. Wiley, each of the Trustees oversees 281 funds. Mr. Wiley oversees 192 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the fund is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund’s Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-835-5092.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Board Structure and Oversight Function. James C. Curvey is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Ned C. Lautenbach serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and other equity funds. The asset allocation funds may invest in Fidelity® funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. In addition, the Independent Trustees have worked with Fidelity to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
James C. Curvey (1935)
Year of Election or Appointment: 2007
Trustee
Chairman of the Board of Trustees
Mr. Curvey also serves as Trustee of other Fidelity® funds. Mr. Curvey is Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey is an Overseer Emeritus for the Boston Symphony Orchestra, a Director of Artis-Naples, and a Trustee of Brewster Academy in Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-2018), Director of Fidelity Investments Money Management, Inc. (investment adviser firm, 2009-2014) and a Director of FMR and FMR Co., Inc. (investment adviser firms, 2007-2014).
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), as a member of the Independent Directors Council (IDC) Governing Council (2010-2015), and as a member of the Board of Directors for The Brookville Center for Children’s Services, Inc. (2009-2017). Mr. Dirks is a member of the Finance Committee (2016-present) and Board of Directors (2017-present) and is Treasurer (2018-present) of the Asolo Repertory Theatre.
Donald F. Donahue (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Donahue also serves as a Trustee of other Fidelity® funds. Mr. Donahue is President and Chief Executive Officer of Miranda Partners, LLC (risk consulting for the financial services industry, 2012-present). Previously, Mr. Donahue served as a Member of the Advisory Board of certain Fidelity® funds (2015-2018) and Chief Executive Officer (2006-2012), Chief Operating Officer (2003-2006), and Managing Director, Customer Marketing and Development (1999-2003) of The Depository Trust & Clearing Corporation (financial markets infrastructure). Mr. Donahue serves as a Member (2007-present) and Co-Chairman (2016-present) of the Board of Directors of United Way of New York, Member of the Board of Directors of NYC Leadership Academy (2012-present) and Member of the Board of Advisors of Ripple Labs, Inc. (financial services, 2015-present). He also served as Chairman (2010-2012) and Member of the Board of Directors (2012-2013) of Omgeo, LLC (financial services), Treasurer of United Way of New York (2012-2016), and Member of the Board of Directors of XBRL US (financial services non-profit, 2009-2012) and the International Securities Services Association (2009-2012).
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2014-2017) and a member (2010-2017) of the Board of Directors of Dave & Buster’s Entertainment, Inc. (restaurant and entertainment complexes), as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association, and as a member of the Board of Directors for The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), Earth Fare, Inc. (retail grocery, 2010-2014), and The Western Union Company (global money transfer, 2006-2011).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as Chair (2018-present) and Member (2013-present) of the Board of Governors, State University System of Florida and is a member of the Council on Foreign Relations (1994-present). He is also a member and has most recently served as Chairman of the Board of Directors of Artis-Naples (2012-present). Previously, Mr. Lautenbach served as a member and then Lead Director of the Board of Directors of Eaton Corporation (diversified industrial, 1997-2016). He was also a Partner and Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007). In addition, Mr. Lautenbach also had a 30-year career with IBM (technology company) during which time he served as Senior Vice President and a member of the Corporate Executive Committee (1968-1998).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-2018).
Cornelia M. Small (1944)
Year of Election or Appointment: 2005
Trustee
Ms. Small also serves as Trustee of other Fidelity® funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.
Garnett A. Smith (1947)
Year of Election or Appointment: 2018
Trustee
Mr. Smith also serves as Trustee of other Fidelity® funds. Prior to Mr. Smith's retirement, he served as Chairman and Chief Executive Officer of Inbrand Corp. (manufacturer of personal absorbent products, 1990-1997). He also served as President (1986-1990) of Inbrand Corp. Prior to his employment with Inbrand Corp., he was employed by a retail fabric chain and North Carolina National Bank. In addition, Mr. Smith served as a Member of the Advisory Board of certain Fidelity® funds (2012-2013) and as a board member of the Jackson Hole Land Trust (2009-2012).
David M. Thomas (1949)
Year of Election or Appointment: 2008
Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present) and as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), a Director of Fortune Brands, Inc. (consumer products, 2000-2011), and a member of the Board of Trustees of the University of Florida (2013-2018).
Michael E. Wiley (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Wiley also serves as Trustee or Member of the Advisory Board of other Fidelity® funds. Mr. Wiley serves as a Director of High Point Resources (exploration and production, 2005-present). Previously, Mr. Wiley served as a Director of Andeavor Corporation (independent oil refiner and marketer, 2005-2018), a Director of Andeavor Logistics LP (natural resources logistics, 2015-2018), a Director of Post Oak Bank (privately-held bank, 2004-2018), a Director of Asia Pacific Exploration Consolidated (international oil and gas exploration and production, 2008-2013), a member of the Board of Trustees of the University of Tulsa (2000-2006; 2007-2010), a Senior Energy Advisor of Katzenbach Partners, LLC (consulting, 2006-2007), an Advisory Director of Riverstone Holdings (private investment), a Director of Spinnaker Exploration Company (exploration and production, 2001-2005) and Chairman, President, and CEO of Baker Hughes, Inc. (oilfield services, 2000-2004).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Advisory Board Members and Officers:
Correspondence intended for a Member of the Advisory Board (if any) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235. Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Vicki L. Fuller (1957)
Year of Election or Appointment: 2018
Member of the Advisory Board
Ms. Fuller also serves as Member of the Advisory Board of other Fidelity® funds. Ms. Fuller serves as a member of the Board of Directors, Audit Committee, and Nominating and Governance Committee of The Williams Companies, Inc. (natural gas infrastructure, 2018-present). Previously, Ms. Fuller served as the Chief Investment Officer of the New York State Common Retirement Fund (2012-2018) and held a variety of positions at AllianceBernstein L.P. (global asset management, 1985-2012), including Managing Director (2006-2012) and Senior Vice President and Senior Portfolio Manager (2001-2006).
Peter S. Lynch (1944)
Year of Election or Appointment: 2003
Member of the Advisory Board
Mr. Lynch also serves as Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of FMR (investment adviser firm) and FMR Co., Inc. (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).
Carol B. Tomé (1957)
Year of Election or Appointment: 2018
Member of the Advisory Board
Ms. Tomé also serves as Member of the Advisory Board of other Fidelity® funds. Ms. Tomé is Chief Financial Officer (2001-present) and Executive Vice President of Corporate Services (2007-present) of The Home Depot, Inc. (home improvement retailer) and a Director (2003-present) and Chair of the Audit Committee (2004-present) of United Parcel Service, Inc. (package delivery and supply chain management). Previously, Ms. Tomé served as Trustee of certain Fidelity® funds (2017), Senior Vice President of Finance and Accounting/Treasurer (2000-2007) and Vice President and Treasurer (1995-2000) of The Home Depot, Inc. and Chair of the Board (2010-2012), Vice Chair of the Board (2009 and 2013), and a Director (2008-2013) of the Federal Reserve Bank of Atlanta. Ms. Tomé is also a director or trustee of many community and professional organizations.
Elizabeth Paige Baumann (1968)
Year of Election or Appointment: 2017
Anti-Money Laundering (AML) Officer
Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer (2012-present) and Senior Vice President (2014-present) of FMR LLC (diversified financial services company) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as AML Officer of the funds (2012-2016), and Vice President (2007-2014) and Deputy Anti-Money Laundering Officer (2007-2012) of FMR LLC.
John J. Burke III (1964)
Year of Election or Appointment: 2018
Chief Financial Officer
Mr. Burke also serves as Chief Financial Officer of other funds. Mr. Burke serves as Head of Investment Operations for Fidelity Fund and Investment Operations (2018-present) and is an employee of Fidelity Investments (1998-present). Previously Mr. Burke served as head of Asset Management Investment Operations (2012-2018).
William C. Coffey (1969)
Year of Election or Appointment: 2018
Secretary and Chief Legal Officer (CLO)
Mr. Coffey also serves as Secretary and CLO of other funds. Mr. Coffey serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2018-present); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2018-present); and CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2018-present). He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Assistant Secretary of certain funds (2009-2018) and as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Timothy M. Cohen (1969)
Year of Election or Appointment: 2018
Vice President
Mr. Cohen also serves as Vice President of other funds. Mr. Cohen serves as Co-Head of Global Equity Research (2016-present), a Director of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present), and is an employee of Fidelity Investments. Previously, Mr. Cohen served as Chief Investment Officer - Equity and a Director of Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2013-2015) and as a Director of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2017).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds. Mr. Davis serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present), and is an employee of Fidelity Investments (2008-present). Previously, Mr. Deberghes served as President and Treasurer of certain Fidelity® funds (2013-2018). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). Previously, Mr. Deberghes served in other fund officer roles.
Laura M. Del Prato (1964)
Year of Election or Appointment: 2018
Assistant Treasurer
Ms. Del Prato also serves as an officer of other funds. Ms. Del Prato is an employee of Fidelity Investments (2017-present). Prior to joining Fidelity Investments, Ms. Del Prato served as a Managing Director and Treasurer of the JPMorgan Mutual Funds (2014-2017). Prior to JPMorgan, Ms. Del Prato served as a partner at Cohen Fund Audit Services (accounting firm, 2012-2013) and KPMG LLP (accounting firm, 2004-2012).
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2005-present). Previously, Mr. Hogan served as Assistant Treasurer of certain Fidelity® funds (2016-2018).
Pamela R. Holding (1964)
Year of Election or Appointment: 2018
Vice President
Ms. Holding also serves as Vice President of other funds. Ms. Holding serves as Co-Head of Global Equity Research (2018-present) and is an employee of Fidelity Investments (2013-present).
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight, serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
Rieco E. Mello (1969)
Year of Election or Appointment: 2017
Assistant Treasurer
Mr. Mello also serves as Assistant Treasurer of other funds. Mr. Mello serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (1995-present).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. Ms. Smith serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), is an employee of Fidelity Investments (2009-present), and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Assistant Treasurer (2013-2018) and Deputy Treasurer (2013-2016) of certain Fidelity® funds.
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (June 1, 2018 to November 30, 2018).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee, which was eliminated effective August 1, 2018, is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee, which was eliminated effective August 1, 2018, is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
Annualized Expense Ratio-A | Beginning Account Value June 1, 2018 | Ending Account Value November 30, 2018 | Expenses Paid During Period-B June 1, 2018 to November 30, 2018 | |
Growth Strategies | .55% | |||
Actual | $1,000.00 | $978.70 | $2.73 | |
Hypothetical-C | $1,000.00 | $1,022.31 | $2.79 | |
Class K | .42% | |||
Actual | $1,000.00 | $979.10 | $2.08 | |
Hypothetical-C | $1,000.00 | $1,022.96 | $2.13 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period).
C 5% return per year before expenses
Distributions (Unaudited)
Fidelity Growth Strategies and Class K designate 100% of the dividends distributed during the fiscal year as qualifying for the dividends–received deduction for corporate shareholders.
Fidelity Growth Strategies and Class K designate 100% of the dividends distributed during the fiscal year as amounts which may be taken into account as a dividend for purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code.
The fund will notify shareholders in January 2019 of amounts for use in preparing 2018 income tax returns.
Board Approval of Investment Advisory Contracts
Fidelity Growth Strategies Fund
At its July 2018 meeting, the Board of Trustees, including the Independent Trustees (together, the Board), voted to continue the management contract with Fidelity Management & Research Company (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund for six months through January 31, 2019, in connection with the reunification of the Fidelity Equity High Income Funds Board, which oversees the fund, and the Sector Portfolios Board.
The Board considered that the approval of the fund's Advisory Contracts will not result in any changes in (i) the investment process or strategies employed in the management of the fund's assets; (ii) the fees and expenses paid by shareholders; (iii) the nature, extent or quality of services provided under the fund's Advisory Contracts; or (iv) the day-to-day management of the fund or the persons primarily responsible for such management. The Board concluded that the fund's Advisory Contracts are fair and reasonable, and that the fund's Advisory Contracts should be renewed, without modification, through January 31, 2019, with the understanding that the Board will consider the annual renewal for a full one year period in January 2019.
In connection with its consideration of future renewals of the fund's Advisory Contracts, the Board will consider: (i) the nature, extent and quality of services provided to the fund, including shareholder and administrative services and investment performance; (ii) the competitiveness of the management fee and total expenses for the fund; (iii) the costs of the services and profitability, including the revenues earned and the expenses incurred in conducting the business of developing, marketing, distributing, managing, administering, and servicing the fund and its shareholders, to the extent applicable, as well as potential fall-out benefits from Fidelity's non-fund businesses; and (iv) whether there have been economies of scale in respect of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is the potential for realization of any further economies.
Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board ultimately concluded that the fund's management fee structure is fair and reasonable, and that the continuation of the fund's Advisory Contracts should be approved.
Corporate Headquarters
245 Summer St.
Boston, MA 02210
www.fidelity.com
FEG-K-ANN-0119
1.863026.110
Fidelity® Series Growth Company Fund Annual Report November 30, 2018 |
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 |
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Advisor Sold Accounts Serviced Through Your Financial Intermediary: | Contact Your Financial Intermediary | Your Financial Intermediary's phone number |
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Contents
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2019 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
For the periods ended November 30, 2018 | Past 1 year | Past 5 years | Life of fundA |
Fidelity® Series Growth Company Fund | 6.96% | 14.38% | 14.82% |
A From November 7, 2013
$10,000 Over Life of Fund
Let's say hypothetically that $10,000 was invested in Fidelity® Series Growth Company Fund on November 7, 2013, when the fund started.
The chart shows how the value of your investment would have changed, and also shows how the Russell 3000® Growth Index performed over the same period.
Period Ending Values | ||
$20,143 | Fidelity® Series Growth Company Fund | |
$18,868 | Russell 3000® Growth Index |
Management's Discussion of Fund Performance
Market Recap: The S&P 500® index gained 6.27% for the 12 months ending November 30, 2018, as the U.S. equity bellwether declined sharply in October after climbing steadily beginning in May and achieving a record close in late September. Rising U.S. Treasury yields and concern about peaking corporate earnings growth sent many investors fleeing from risk assets at a time when they were still dealing with lingering uncertainty related to global trade and the U.S. Federal Reserve picking up the pace of interest rate hikes. The index returned -6.84% in October alone, its largest monthly drop in roughly seven years, and then endured a highly volatile November in which it gained 2.04%. For the full year, growth stocks within the index maintained a sizable advantage over their value counterparts, extending a trend that began in early 2017. A number of economically sensitive sectors dropped to the bottom of the 12-month performance scale, with materials (-7%) and energy (-2%) faring worst, followed by industrials (-1%) and financials (0%). In contrast, the defensive-oriented health care sector gained about 16% to lead the way. Consumer discretionary and information technology were rattled in October but earlier strength resulted in each advancing roughly 13% for the full 12 months. The newly reconstituted communication services sector, which includes dividend-rich telecom stocks, rose about 4%. Real estate (+5%), consumer staples (+3%) and utilities (+2%) also advanced but lagged the broader market.Comments from Portfolio Manager Steven Wymer: For the fiscal year, the fund gained 6.96%, behind the 8.14% advance of the benchmark Russell 3000® Growth Index. Versus the benchmark, security selection within the health care sector was by far the biggest detractor, primarily a result of choices and a sizable overweighting in the biotechnology, pharmaceuticals & life sciences segment. Included was Alnylam Pharmaceuticals (-40%), a biopharma company focused on the innovative area of RNA-interference therapies for genetic diseases. In information technology, chipmaker Nvidia (-18%) was the fund’s largest holding, on average, the past 12 months and also our biggest individual detractor. The stock was hurt by excessive supply in the firm’s video gaming card business in the wake of the robust wave of crypto mining the past year. In addition, Nvidia’s data center business, while strong and well-positioned, experienced slowing growth, partly due to a slowdown in cloud spending. Conversely, security selection in consumer discretionary helped relative performance, as did an overweighing here. Yoga-inspired athletic retailer lululemon athletica (+98%) was our top individual contributor versus the benchmark. The stock benefited from the company’s strong financial results this period, supported by enhanced online capabilities and improved offerings. Cloud-computing enterprise software provider Salesforce.com (+37%) also notably contributed.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Investment Summary (Unaudited)
Top Ten Stocks as of November 30, 2018
% of fund's net assets | |
Amazon.com, Inc. | 6.8 |
Apple, Inc. | 5.3 |
NVIDIA Corp. | 5.0 |
Alphabet, Inc. Class A | 4.2 |
Salesforce.com, Inc. | 3.4 |
Microsoft Corp. | 3.3 |
Facebook, Inc. Class A | 2.4 |
lululemon athletica, Inc. | 2.4 |
Alphabet, Inc. Class C | 2.1 |
adidas AG | 1.7 |
36.6 |
Top Five Market Sectors as of November 30, 2018
% of fund's net assets | |
Information Technology | 32.3 |
Consumer Discretionary | 20.2 |
Health Care | 18.5 |
Communication Services | 13.6 |
Industrials | 5.2 |
Asset Allocation (% of fund's net assets)
As of November 30, 2018* | ||
Stocks | 97.5% | |
Convertible Securities | 2.0% | |
Short-Term Investments and Net Other Assets (Liabilities) | 0.5% |
* Foreign investments - 9.2%
Schedule of Investments November 30, 2018
Showing Percentage of Net Assets
Common Stocks - 97.4% | |||
Shares | Value | ||
COMMUNICATION SERVICES - 13.1% | |||
Diversified Telecommunication Services - 0.2% | |||
Verizon Communications, Inc. | 316,600 | $19,090,980 | |
Entertainment - 3.2% | |||
Activision Blizzard, Inc. | 1,676,800 | 83,638,784 | |
Electronic Arts, Inc. (a) | 406,100 | 34,140,827 | |
Lions Gate Entertainment Corp.: | |||
Class A | 22,700 | 440,607 | |
Class B | 20,200 | 364,206 | |
Live Nation Entertainment, Inc. (a) | 315,600 | 17,572,608 | |
NetEase, Inc. ADR | 54,600 | 12,398,022 | |
Netflix, Inc. (a) | 549,700 | 157,285,661 | |
Nintendo Co. Ltd. | 28,200 | 8,576,825 | |
The Walt Disney Co. | 395,100 | 45,630,099 | |
360,047,639 | |||
Interactive Media & Services - 9.0% | |||
Alphabet, Inc.: | |||
Class A (a) | 420,070 | 466,130,676 | |
Class C (a) | 219,456 | 240,179,230 | |
Facebook, Inc. Class A (a) | 1,945,958 | 273,621,154 | |
Match Group, Inc. (b) | 56,400 | 2,271,228 | |
Snap, Inc. Class A (a)(b) | 1,722,197 | 11,211,502 | |
Tencent Holdings Ltd. | 266,200 | 10,642,315 | |
Twitter, Inc. (a) | 127,490 | 4,009,561 | |
1,008,065,666 | |||
Media - 0.3% | |||
Comcast Corp. Class A | 935,800 | 36,505,558 | |
Turn, Inc. (Escrow) (a)(c)(d) | 205,882 | 136,912 | |
36,642,470 | |||
Wireless Telecommunication Services - 0.4% | |||
T-Mobile U.S., Inc. (a) | 716,100 | 49,017,045 | |
TOTAL COMMUNICATION SERVICES | 1,472,863,800 | ||
CONSUMER DISCRETIONARY - 20.0% | |||
Auto Components - 0.0% | |||
Garrett Motion, Inc. (a)(b) | 33,950 | 390,425 | |
Automobiles - 1.5% | |||
Tesla, Inc. (a)(b) | 493,400 | 172,926,832 | |
Hotels, Restaurants & Leisure - 0.9% | |||
Chipotle Mexican Grill, Inc. (a) | 11,100 | 5,252,631 | |
Hyatt Hotels Corp. Class A | 64,400 | 4,592,364 | |
Marriott International, Inc. Class A | 33,700 | 3,876,511 | |
McDonald's Corp. | 102,800 | 19,378,828 | |
Planet Fitness, Inc. (a) | 88,400 | 4,881,448 | |
Shake Shack, Inc. Class A (a) | 44,200 | 2,455,310 | |
Starbucks Corp. | 600,100 | 40,038,672 | |
YETI Holdings, Inc. | 168,400 | 2,835,856 | |
Yum China Holdings, Inc. | 320,200 | 11,472,766 | |
Yum! Brands, Inc. | 34,000 | 3,135,480 | |
97,919,866 | |||
Household Durables - 0.7% | |||
iRobot Corp. (a)(b) | 324,900 | 30,995,460 | |
Roku, Inc. (a) | 148,375 | 6,046,281 | |
Roku, Inc. Class A (a)(b) | 1,017,999 | 41,483,459 | |
Sony Corp. sponsored ADR | 28,900 | 1,526,498 | |
80,051,698 | |||
Internet & Direct Marketing Retail - 9.0% | |||
Alibaba Group Holding Ltd. sponsored ADR (a) | 276,600 | 44,493,876 | |
Amazon.com, Inc. (a) | 451,899 | 763,786,128 | |
Ctrip.com International Ltd. ADR (a) | 134,800 | 3,888,980 | |
eBay, Inc. (a) | 141,200 | 4,214,820 | |
Etsy, Inc. (a) | 51,200 | 2,766,848 | |
Expedia, Inc. | 81,000 | 9,783,990 | |
JD.com, Inc. sponsored ADR (a) | 860,100 | 18,259,923 | |
The Booking Holdings, Inc. (a) | 26,500 | 50,134,820 | |
The Honest Co., Inc. (a)(c)(d) | 9,496 | 109,204 | |
Wayfair LLC Class A (a) | 1,037,059 | 110,135,666 | |
Zozo, Inc. | 176,400 | 3,923,799 | |
1,011,498,054 | |||
Leisure Products - 0.1% | |||
Callaway Golf Co. | 503,800 | 8,630,094 | |
Multiline Retail - 0.4% | |||
Dollar General Corp. | 72,900 | 8,091,171 | |
Dollar Tree, Inc. (a) | 239,300 | 20,764,061 | |
Target Corp. | 182,200 | 12,928,912 | |
41,784,144 | |||
Specialty Retail - 1.6% | |||
Home Depot, Inc. | 514,700 | 92,810,704 | |
L Brands, Inc. | 31,300 | 1,036,343 | |
Lowe's Companies, Inc. | 402,910 | 38,022,617 | |
RH (a)(b) | 295,644 | 34,336,094 | |
TJX Companies, Inc. | 391,600 | 19,129,660 | |
185,335,418 | |||
Textiles, Apparel & Luxury Goods - 5.8% | |||
adidas AG | 874,891 | 192,942,408 | |
Allbirds, Inc. (c)(d) | 16,248 | 890,972 | |
Canada Goose Holdings, Inc. (a) | 420,671 | 28,292,749 | |
Kering SA | 35,417 | 15,396,705 | |
lululemon athletica, Inc. (a) | 2,056,820 | 272,631,491 | |
NIKE, Inc. Class B | 563,200 | 42,307,584 | |
Skechers U.S.A., Inc. Class A (sub. vtg.) (a) | 2,471,600 | 66,733,200 | |
Tory Burch LLC (c)(d)(e) | 248,840 | 15,094,634 | |
Under Armour, Inc. Class C (non-vtg.) (a)(b) | 202,259 | 4,516,443 | |
VF Corp. | 93,800 | 7,625,002 | |
646,431,188 | |||
TOTAL CONSUMER DISCRETIONARY | 2,244,967,719 | ||
CONSUMER STAPLES - 4.7% | |||
Beverages - 2.2% | |||
Fever-Tree Drinks PLC | 433,302 | 13,207,071 | |
Keurig Dr. Pepper, Inc. | 1,265,000 | 34,155,000 | |
Monster Beverage Corp. (a) | 1,708,300 | 101,951,344 | |
PepsiCo, Inc. | 242,300 | 29,546,062 | |
The Coca-Cola Co. | 1,383,500 | 69,728,400 | |
248,587,877 | |||
Food & Staples Retailing - 1.0% | |||
Costco Wholesale Corp. | 227,500 | 52,616,200 | |
Kroger Co. | 1,927,300 | 57,163,718 | |
109,779,918 | |||
Food Products - 0.3% | |||
Kellogg Co. | 23,400 | 1,489,410 | |
Lamb Weston Holdings, Inc. | 200,900 | 15,409,030 | |
Mondelez International, Inc. | 285,800 | 12,855,284 | |
The Hershey Co. | 48,200 | 5,220,060 | |
The Kraft Heinz Co. | 67,100 | 3,430,152 | |
38,403,936 | |||
Household Products - 0.2% | |||
Church & Dwight Co., Inc. | 197,800 | 13,092,382 | |
Colgate-Palmolive Co. | 84,100 | 5,342,032 | |
Kimberly-Clark Corp. | 24,500 | 2,826,565 | |
21,260,979 | |||
Personal Products - 0.4% | |||
Coty, Inc. Class A | 1,543,900 | 12,876,126 | |
Godrej Consumer Products Ltd. | 105,996 | 1,141,911 | |
Herbalife Nutrition Ltd. (a) | 437,900 | 25,069,775 | |
Unilever NV (Certificaten Van Aandelen) (Bearer) | 164,200 | 9,112,166 | |
48,199,978 | |||
Tobacco - 0.6% | |||
Altria Group, Inc. | 770,600 | 42,251,998 | |
JUUL Labs, Inc. Class A (c)(d) | 13,297 | 2,858,855 | |
Philip Morris International, Inc. | 231,600 | 20,040,348 | |
65,151,201 | |||
TOTAL CONSUMER STAPLES | 531,383,889 | ||
ENERGY - 1.8% | |||
Energy Equipment & Services - 0.1% | |||
Baker Hughes, a GE Co. Class A | 515,600 | 11,765,992 | |
Halliburton Co. | 133,800 | 4,205,334 | |
15,971,326 | |||
Oil, Gas & Consumable Fuels - 1.7% | |||
Anadarko Petroleum Corp. | 131,700 | 6,966,930 | |
Cabot Oil & Gas Corp. | 534,000 | 13,435,440 | |
Concho Resources, Inc. (a) | 112,600 | 14,676,284 | |
Continental Resources, Inc. (a) | 111,800 | 5,111,496 | |
Devon Energy Corp. | 75,800 | 2,048,874 | |
EOG Resources, Inc. | 469,300 | 48,483,383 | |
Hess Corp. | 145,400 | 7,835,606 | |
Noble Energy, Inc. | 315,300 | 7,485,222 | |
Oasis Petroleum, Inc. (a) | 511,400 | 3,651,396 | |
Occidental Petroleum Corp. | 196,900 | 13,836,163 | |
PDC Energy, Inc. (a) | 106,638 | 3,619,294 | |
Pioneer Natural Resources Co. | 167,893 | 24,806,191 | |
Range Resources Corp. | 426,500 | 6,205,575 | |
Reliance Industries Ltd. | 1,349,631 | 22,624,001 | |
Southwestern Energy Co. (a) | 163,100 | 786,142 | |
Valero Energy Corp. | 132,200 | 10,562,780 | |
192,134,777 | |||
TOTAL ENERGY | 208,106,103 | ||
FINANCIALS - 2.4% | |||
Banks - 0.9% | |||
Bank of America Corp. | 519,500 | 14,753,800 | |
HDFC Bank Ltd. sponsored ADR | 332,511 | 33,723,266 | |
JPMorgan Chase & Co. | 368,000 | 40,917,920 | |
Signature Bank | 18,200 | 2,244,606 | |
Wells Fargo & Co. | 170,400 | 9,249,312 | |
100,888,904 | |||
Capital Markets - 1.2% | |||
BlackRock, Inc. Class A | 90,100 | 38,563,701 | |
Charles Schwab Corp. | 1,799,100 | 80,599,680 | |
Edelweiss Financial Services Ltd. | 1,769,687 | 4,311,786 | |
T. Rowe Price Group, Inc. | 102,800 | 10,214,208 | |
133,689,375 | |||
Consumer Finance - 0.3% | |||
American Express Co. | 312,700 | 35,106,829 | |
Discover Financial Services | 35,258 | 2,513,895 | |
37,620,724 | |||
Insurance - 0.0% | |||
Hiscox Ltd. | 86,900 | 1,866,947 | |
TOTAL FINANCIALS | 274,065,950 | ||
HEALTH CARE - 17.6% | |||
Biotechnology - 11.5% | |||
AbbVie, Inc. | 337,984 | 31,861,752 | |
ACADIA Pharmaceuticals, Inc. (a)(b) | 2,121,687 | 40,439,354 | |
Agios Pharmaceuticals, Inc. (a)(b) | 636,928 | 41,909,862 | |
Alexion Pharmaceuticals, Inc. (a) | 353,900 | 43,582,785 | |
Alkermes PLC (a) | 2,148,825 | 78,303,183 | |
Allakos, Inc. (a) | 36,400 | 2,144,324 | |
Allogene Therapeutics, Inc. (b) | 221,907 | 6,941,251 | |
Allogene Therapeutics, Inc. | 80,261 | 2,259,508 | |
Alnylam Pharmaceuticals, Inc. (a) | 1,365,478 | 110,822,194 | |
Amgen, Inc. | 300,500 | 62,579,125 | |
AnaptysBio, Inc. (a) | 147,900 | 11,030,382 | |
Argenx SE ADR (a) | 21,800 | 2,109,586 | |
Array BioPharma, Inc. (a) | 1,346,900 | 21,456,117 | |
aTyr Pharma, Inc. (a) | 398,874 | 245,706 | |
BeiGene Ltd. | 454,500 | 5,007,400 | |
BeiGene Ltd. ADR (a) | 625,251 | 95,857,231 | |
Biogen, Inc. (a) | 95,000 | 31,703,400 | |
bluebird bio, Inc. (a)(b) | 762,465 | 93,699,324 | |
Blueprint Medicines Corp. (a) | 108,700 | 6,236,119 | |
Calyxt, Inc. (a) | 460,500 | 5,304,960 | |
Celgene Corp. (a) | 233,400 | 16,856,148 | |
Cellectis SA sponsored ADR (a) | 290,045 | 6,386,791 | |
Chimerix, Inc. (a) | 150,546 | 495,296 | |
Cibus Global Ltd. Series C (c)(d)(e) | 1,142,857 | 2,400,000 | |
Coherus BioSciences, Inc. (a) | 306,292 | 3,387,590 | |
Constellation Pharmaceuticals, Inc. | 50,600 | 298,540 | |
Constellation Pharmaceuticals, Inc. | 83,878 | 470,136 | |
Crinetics Pharmaceuticals, Inc. (a) | 52,200 | 1,823,868 | |
CytomX Therapeutics, Inc. (a)(f) | 207,739 | 2,866,798 | |
CytomX Therapeutics, Inc. (a) | 329,628 | 4,548,866 | |
Denali Therapeutics, Inc. (a)(b) | 168,800 | 3,235,896 | |
Editas Medicine, Inc. (a) | 65,862 | 2,052,260 | |
Evelo Biosciences, Inc. (b) | 177,700 | 1,762,784 | |
Evelo Biosciences, Inc. | 230,736 | 2,288,901 | |
Exact Sciences Corp. (a) | 74,600 | 5,817,308 | |
Exelixis, Inc. (a) | 2,609,184 | 52,992,527 | |
Fate Therapeutics, Inc. (a) | 768,973 | 11,811,425 | |
Five Prime Therapeutics, Inc. (a) | 418,500 | 5,373,540 | |
Global Blood Therapeutics, Inc. (a) | 362,700 | 11,439,558 | |
Heron Therapeutics, Inc. (a) | 188,251 | 5,408,451 | |
Homology Medicines, Inc. (a)(b) | 97,800 | 2,150,622 | |
Homology Medicines, Inc. (f) | 182,088 | 4,004,115 | |
Intellia Therapeutics, Inc. (a)(b) | 196,038 | 3,511,041 | |
Intercept Pharmaceuticals, Inc. (a) | 43,000 | 4,769,130 | |
Ionis Pharmaceuticals, Inc. (a) | 2,148,379 | 125,229,012 | |
Ironwood Pharmaceuticals, Inc. Class A (a) | 1,244,156 | 17,194,236 | |
Jounce Therapeutics, Inc. (a) | 36,200 | 156,384 | |
Kiniksa Pharmaceuticals Ltd. (f) | 90,238 | 1,824,612 | |
Lexicon Pharmaceuticals, Inc. (a)(b) | 1,783,077 | 14,442,924 | |
Macrogenics, Inc. (a) | 57,200 | 984,412 | |
Momenta Pharmaceuticals, Inc. (a) | 1,483,395 | 17,563,397 | |
Neon Therapeutics, Inc. | 4,300 | 26,617 | |
Neon Therapeutics, Inc. | 268,754 | 1,580,408 | |
Principia Biopharma, Inc. | 53,800 | 1,498,868 | |
Protagonist Therapeutics, Inc. (a) | 263,400 | 1,704,198 | |
Prothena Corp. PLC (a) | 465,977 | 5,596,384 | |
Regeneron Pharmaceuticals, Inc. (a) | 166,900 | 61,026,985 | |
Rigel Pharmaceuticals, Inc. (a) | 3,273,312 | 9,263,473 | |
Rubius Therapeutics, Inc. (b) | 307,300 | 6,570,074 | |
Rubius Therapeutics, Inc. | 461,018 | 9,363,737 | |
Sage Therapeutics, Inc. (a) | 605,334 | 69,788,957 | |
Sarepta Therapeutics, Inc. (a) | 46,600 | 6,033,302 | |
Scholar Rock Holding Corp. | 66,100 | 1,610,196 | |
Scholar Rock Holding Corp. (f) | 93,749 | 2,283,726 | |
Seres Therapeutics, Inc. (a)(f) | 142,139 | 1,186,861 | |
Seres Therapeutics, Inc. (a)(b) | 514,837 | 4,298,889 | |
Sienna Biopharmaceuticals, Inc. (a) | 253,748 | 2,565,392 | |
Sienna Biopharmaceuticals, Inc. (f) | 155,108 | 1,568,142 | |
Spark Therapeutics, Inc. (a) | 194,600 | 8,198,498 | |
Syros Pharmaceuticals, Inc. (a) | 347,138 | 2,364,010 | |
Syros Pharmaceuticals, Inc. (a)(f) | 301,001 | 2,049,817 | |
Translate Bio, Inc. | 518,118 | 3,558,693 | |
Translate Bio, Inc. | 106,500 | 769,995 | |
Ultragenyx Pharmaceutical, Inc. (a) | 164,200 | 8,812,614 | |
uniQure B.V. (a) | 252,700 | 7,399,056 | |
UNITY Biotechnology, Inc. (b) | 178,600 | 2,296,796 | |
UNITY Biotechnology, Inc. (f) | 308,360 | 3,965,510 | |
Vertex Pharmaceuticals, Inc. (a) | 111,700 | 20,194,243 | |
Wuxi Biologics (Cayman), Inc. (a) | 1,086,500 | 9,109,714 | |
Xencor, Inc. (a) | 392,000 | 16,467,920 | |
Zai Lab Ltd. ADR (a) | 508,300 | 10,023,676 | |
1,308,216,882 | |||
Health Care Equipment & Supplies - 2.9% | |||
Abbott Laboratories | 199,821 | 14,796,745 | |
Align Technology, Inc. (a) | 6,934 | 1,594,057 | |
Boston Scientific Corp. (a) | 588,500 | 22,168,795 | |
Danaher Corp. | 357,600 | 39,171,504 | |
DexCom, Inc. (a) | 254,200 | 32,941,778 | |
Genmark Diagnostics, Inc. (a) | 550,700 | 2,869,147 | |
Insulet Corp. (a) | 553,320 | 46,440,148 | |
Intuitive Surgical, Inc. (a) | 132,721 | 70,457,597 | |
Novocure Ltd. (a)(f) | 149,451 | 5,129,158 | |
Novocure Ltd. (a) | 1,156,900 | 39,704,808 | |
Penumbra, Inc. (a) | 298,792 | 41,597,822 | |
Presbia PLC (a) | 443,695 | 313,160 | |
Wright Medical Group NV (a) | 254,700 | 7,121,412 | |
324,306,131 | |||
Health Care Providers & Services - 0.9% | |||
G1 Therapeutics, Inc. (a) | 99,900 | 3,819,177 | |
Humana, Inc. | 17,000 | 5,600,990 | |
Laboratory Corp. of America Holdings (a) | 31,200 | 4,543,968 | |
OptiNose, Inc. (a) | 385,475 | 3,033,688 | |
OptiNose, Inc. (f) | 301,785 | 2,375,048 | |
UnitedHealth Group, Inc. | 312,400 | 87,896,864 | |
107,269,735 | |||
Health Care Technology - 0.1% | |||
Castlight Health, Inc. Class B (a) | 777,600 | 2,029,536 | |
Teladoc Health, Inc. (a) | 99,000 | 6,182,550 | |
8,212,086 | |||
Life Sciences Tools & Services - 0.1% | |||
Illumina, Inc. (a) | 13,262 | 4,475,925 | |
Thermo Fisher Scientific, Inc. | 41,300 | 10,306,415 | |
14,782,340 | |||
Pharmaceuticals - 2.1% | |||
Adimab LLC (c)(d)(e) | 762,787 | 30,992,036 | |
Akcea Therapeutics, Inc. (a)(b) | 1,538,933 | 52,154,439 | |
Bristol-Myers Squibb Co. | 269,600 | 14,412,816 | |
Intra-Cellular Therapies, Inc. (a) | 1,017,498 | 14,702,846 | |
Jiangsu Hengrui Medicine Co. Ltd. (A Shares) | 45,400 | 426,899 | |
Kolltan Pharmaceuticals, Inc. rights (a)(d) | 1,692,030 | 17 | |
MyoKardia, Inc. (a) | 455,100 | 28,248,057 | |
Nektar Therapeutics (a) | 1,419,052 | 57,315,510 | |
Rhythm Pharmaceuticals, Inc. (a) | 114,300 | 3,375,279 | |
RPI International Holdings LP (a)(c)(d) | 35,220 | 5,404,861 | |
Stemcentrx, Inc. rights 12/31/21 (a)(d) | 568,100 | 1,039,623 | |
The Medicines Company (a) | 633,523 | 14,019,864 | |
Theravance Biopharma, Inc. (a) | 347,148 | 9,584,756 | |
231,677,003 | |||
TOTAL HEALTH CARE | 1,994,464,177 | ||
INDUSTRIALS - 5.1% | |||
Aerospace & Defense - 1.3% | |||
Lockheed Martin Corp. | 114,800 | 34,489,364 | |
Northrop Grumman Corp. | 14,600 | 3,794,248 | |
Space Exploration Technologies Corp. Class A (a)(c)(d) | 137,569 | 23,249,161 | |
The Boeing Co. | 192,300 | 66,681,948 | |
United Technologies Corp. | 115,600 | 14,084,704 | |
142,299,425 | |||
Air Freight & Logistics - 0.3% | |||
FedEx Corp. | 22,800 | 5,221,200 | |
United Parcel Service, Inc. Class B | 240,700 | 27,750,303 | |
32,971,503 | |||
Airlines - 1.2% | |||
Azul SA sponsored ADR (a) | 140,500 | 3,792,095 | |
Delta Air Lines, Inc. | 203,100 | 12,330,201 | |
JetBlue Airways Corp. (a) | 1,199,400 | 23,412,288 | |
Ryanair Holdings PLC sponsored ADR (a) | 124,010 | 10,209,743 | |
Southwest Airlines Co. | 549,900 | 30,030,039 | |
Spirit Airlines, Inc. (a) | 103,300 | 6,623,596 | |
United Continental Holdings, Inc. (a) | 149,900 | 14,495,330 | |
Wheels Up Partners Holdings LLC: | |||
Series B (a)(c)(d)(e) | 1,843,115 | 2,838,397 | |
Series C (a)(c)(d)(e) | 670,590 | 1,032,709 | |
Wizz Air Holdings PLC (a)(f) | 765,173 | 29,211,650 | |
133,976,048 | |||
Building Products - 0.1% | |||
Resideo Technologies, Inc. (a) | 514,533 | 10,614,816 | |
Construction & Engineering - 0.0% | |||
Fluor Corp. | 113,000 | 4,625,090 | |
Electrical Equipment - 0.3% | |||
AMETEK, Inc. | 5,800 | 425,894 | |
Eaton Corp. PLC | 70,900 | 5,455,046 | |
Emerson Electric Co. | 129,100 | 8,716,832 | |
Fortive Corp. | 216,900 | 16,499,583 | |
31,097,355 | |||
Industrial Conglomerates - 0.7% | |||
3M Co. | 103,500 | 21,519,720 | |
Honeywell International, Inc. | 374,800 | 55,001,900 | |
76,521,620 | |||
Machinery - 0.8% | |||
Aumann AG (f) | 27,944 | 1,244,853 | |
Caterpillar, Inc. | 238,200 | 32,316,594 | |
Deere & Co. | 100,600 | 15,580,928 | |
Illinois Tool Works, Inc. | 74,200 | 10,317,510 | |
Ingersoll-Rand PLC | 34,800 | 3,602,496 | |
Rational AG | 5,202 | 2,959,315 | |
Wabtec Corp. | 43,200 | 4,086,720 | |
WashTec AG | 27,600 | 2,027,863 | |
Xylem, Inc. | 327,100 | 23,871,758 | |
96,008,037 | |||
Professional Services - 0.0% | |||
CoStar Group, Inc. (a) | 6,900 | 2,548,791 | |
Road & Rail - 0.4% | |||
Union Pacific Corp. | 281,500 | 43,289,070 | |
TOTAL INDUSTRIALS | 573,951,755 | ||
INFORMATION TECHNOLOGY - 32.0% | |||
Communications Equipment - 0.5% | |||
Arista Networks, Inc. (a) | 39,800 | 9,491,504 | |
Infinera Corp. (a) | 3,552,400 | 15,310,844 | |
NETGEAR, Inc. (a) | 647,862 | 35,891,555 | |
60,693,903 | |||
Electronic Equipment & Components - 0.3% | |||
Arlo Technologies, Inc. (b) | 982,300 | 11,817,069 | |
Cognex Corp. | 12,000 | 528,240 | |
IPG Photonics Corp. (a) | 4,800 | 682,320 | |
TE Connectivity Ltd. | 24,700 | 1,900,171 | |
Trimble, Inc. (a) | 449,100 | 17,079,273 | |
32,007,073 | |||
Internet Software & Services - 0.1% | |||
CarGurus, Inc. Class A (a) | 15,400 | 599,214 | |
Farfetch Ltd. Class A (b) | 276,200 | 6,283,550 | |
6,882,764 | |||
IT Services - 5.4% | |||
Actua Corp. (d) | 546,564 | 349,801 | |
Adyen BV | 2,793 | 1,445,172 | |
Cognizant Technology Solutions Corp. Class A | 224,100 | 15,962,643 | |
Elastic NV | 11,000 | 785,950 | |
IBM Corp. | 22,300 | 2,771,221 | |
MasterCard, Inc. Class A | 576,800 | 115,977,176 | |
MongoDB, Inc. Class A (a) | 29,500 | 2,445,550 | |
Okta, Inc. (a) | 51,200 | 3,258,880 | |
PayPal Holdings, Inc. (a) | 1,368,500 | 117,430,985 | |
Shopify, Inc. Class A (a) | 913,649 | 139,070,766 | |
Square, Inc. (a) | 729,500 | 50,948,280 | |
Visa, Inc. Class A | 1,030,400 | 146,017,984 | |
Wix.com Ltd. (a) | 137,207 | 12,922,155 | |
609,386,563 | |||
Semiconductors & Semiconductor Equipment - 7.0% | |||
Advanced Micro Devices, Inc. (a) | 1,792,500 | 38,180,250 | |
Applied Materials, Inc. | 101,300 | 3,776,464 | |
ASML Holding NV | 75,600 | 12,954,060 | |
Broadcom, Inc. | 58,236 | 13,825,809 | |
Cirrus Logic, Inc. (a) | 216,800 | 8,116,992 | |
Cree, Inc. (a) | 315,266 | 13,915,841 | |
Intel Corp. | 17,800 | 877,718 | |
KLA-Tencor Corp. | 60,600 | 5,972,736 | |
Marvell Technology Group Ltd. | 190,400 | 3,067,344 | |
Micron Technology, Inc. (a) | 99,800 | 3,848,288 | |
NVIDIA Corp. | 3,407,600 | 556,904,068 | |
Renesas Electronics Corp. (a) | 218,300 | 1,028,855 | |
Silicon Laboratories, Inc. (a) | 864,082 | 76,358,926 | |
Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR | 310,900 | 11,686,731 | |
Texas Instruments, Inc. | 410,400 | 40,978,440 | |
Xilinx, Inc. | 25,100 | 2,321,248 | |
793,813,770 | |||
Software - 12.9% | |||
2U, Inc. (a) | 195,880 | 11,437,433 | |
Adobe, Inc. (a) | 436,200 | 109,438,218 | |
Aspen Technology, Inc. (a) | 85,800 | 7,404,540 | |
Atlassian Corp. PLC (a) | 116,700 | 10,029,198 | |
Autodesk, Inc. (a) | 380,200 | 54,938,900 | |
Avalara, Inc. (b) | 14,849 | 475,020 | |
Black Knight, Inc. (a) | 134,700 | 6,107,298 | |
Cadence Design Systems, Inc. (a) | 51,000 | 2,297,040 | |
DocuSign, Inc. | 16,200 | 676,512 | |
Domo, Inc. | 40,872 | 619,701 | |
Dropbox, Inc. Class A (a) | 51,000 | 1,192,890 | |
HubSpot, Inc. (a) | 455,600 | 63,342,068 | |
Intuit, Inc. | 140,600 | 30,162,918 | |
Microsoft Corp. | 3,356,392 | 372,190,309 | |
New Relic, Inc. (a) | 58,746 | 5,122,064 | |
Nutanix, Inc. Class A (a) | 2,184,051 | 97,648,920 | |
Oracle Corp. | 254,300 | 12,399,668 | |
Parametric Technology Corp. (a) | 513,200 | 44,386,668 | |
Paylocity Holding Corp. (a) | 33,000 | 2,213,640 | |
Pluralsight, Inc. | 61,800 | 1,488,762 | |
Proofpoint, Inc. (a) | 120,000 | 11,641,200 | |
Red Hat, Inc. (a) | 900,000 | 160,704,000 | |
RingCentral, Inc. (a) | 17,300 | 1,434,170 | |
Salesforce.com, Inc. (a) | 2,703,442 | 385,943,380 | |
Tenable Holdings, Inc. | 19,900 | 566,752 | |
Zendesk, Inc. (a) | 541,700 | 32,193,231 | |
Zscaler, Inc. (a)(b) | 762,900 | 29,951,454 | |
1,456,005,954 | |||
Technology Hardware, Storage & Peripherals - 5.8% | |||
Apple, Inc. | 3,343,165 | 597,022,406 | |
NetApp, Inc. | 83,500 | 5,583,645 | |
Pure Storage, Inc. Class A (a) | 2,121,678 | 40,120,931 | |
Samsung Electronics Co. Ltd. | 246,923 | 9,224,072 | |
651,951,054 | |||
TOTAL INFORMATION TECHNOLOGY | 3,610,741,081 | ||
MATERIALS - 0.4% | |||
Chemicals - 0.3% | |||
CF Industries Holdings, Inc. | 358,200 | 15,112,458 | |
DowDuPont, Inc. | 215,705 | 12,478,534 | |
LG Chemical Ltd. | 29,661 | 9,147,439 | |
The Mosaic Co. | 68,100 | 2,451,600 | |
39,190,031 | |||
Metals & Mining - 0.1% | |||
Barrick Gold Corp. | 437,700 | 5,577,286 | |
TOTAL MATERIALS | 44,767,317 | ||
REAL ESTATE - 0.3% | |||
Equity Real Estate Investment Trusts (REITs) - 0.3% | |||
American Tower Corp. | 185,600 | 30,529,344 | |
Ant International Co. Ltd. Class C (c)(d) | 419,242 | 2,351,948 | |
32,881,292 | |||
TOTAL COMMON STOCKS | |||
(Cost $6,052,938,385) | 10,988,193,083 | ||
Preferred Stocks - 2.1% | |||
Convertible Preferred Stocks - 2.0% | |||
COMMUNICATION SERVICES - 0.5% | |||
Interactive Media & Services - 0.5% | |||
Uber Technologies, Inc.: | |||
Series D, 8.00% (a)(c)(d) | 1,095,852 | 53,444,702 | |
Series E, 8.00% (a)(c)(d) | 51,852 | 2,528,822 | |
55,973,524 | |||
Wireless Telecommunication Services - 0.0% | |||
Altiostar Networks, Inc. Series A1 (a)(c)(d) | 202,849 | 259,647 | |
TOTAL COMMUNICATION SERVICES | 56,233,171 | ||
CONSUMER DISCRETIONARY - 0.2% | |||
Hotels, Restaurants & Leisure - 0.1% | |||
MOD Super Fast Pizza Holdings LLC Series 3 Preferred (a)(c)(d)(e) | 17,731 | 2,825,080 | |
Topgolf International, Inc. Series F (c)(d) | 234,069 | 3,061,623 | |
5,886,703 | |||
Internet & Direct Marketing Retail - 0.0% | |||
Jet.Com, Inc. Series B1 (Escrow) (a)(c)(d) | 2,105,094 | 95,571 | |
The Honest Co., Inc.: | |||
Series C (a)(c)(d) | 22,157 | 434,384 | |
Series D (a)(c)(d) | 19,064 | 373,746 | |
903,701 | |||
Leisure Products - 0.1% | |||
Peloton Interactive, Inc. Series E (a)(c)(d) | 776,112 | 11,207,197 | |
Textiles, Apparel & Luxury Goods - 0.0% | |||
Allbirds, Inc.: | |||
Series A (c)(d) | 6,413 | 351,662 | |
Series B (c)(d) | 1,127 | 61,800 | |
Series C (c)(d) | 10,767 | 590,417 | |
ORIC Pharmaceuticals, Inc. Series C (c)(d) | 316,667 | 950,001 | |
1,953,880 | |||
TOTAL CONSUMER DISCRETIONARY | 19,951,481 | ||
CONSUMER STAPLES - 0.1% | |||
Food & Staples Retailing - 0.1% | |||
Sweetgreen, Inc. Series H (c)(d) | 168,337 | 2,195,114 | |
Food Products - 0.0% | |||
Agbiome LLC Series C (c)(d) | 338,565 | 2,144,369 | |
Tobacco - 0.0% | |||
JUUL Labs, Inc. Series E (c)(d) | 6,648 | 1,429,320 | |
TOTAL CONSUMER STAPLES | 5,768,803 | ||
FINANCIALS - 0.0% | |||
Insurance - 0.0% | |||
Clover Health Series D (a)(c)(d) | 264,037 | 2,476,086 | |
HEALTH CARE - 0.8% | |||
Biotechnology - 0.6% | |||
10X Genomics, Inc.: | |||
Series C (a)(c)(d) | 715,467 | 9,107,895 | |
Series D (c)(d) | 100,390 | 1,277,965 | |
23andMe, Inc. Series F (a)(c)(d) | 164,720 | 2,857,892 | |
Axcella Health, Inc.: | |||
Series C (a)(c)(d) | 111,581 | 1,246,360 | |
Series E (c)(d) | 120,735 | 1,348,610 | |
BioNTech AG Series A (c)(d) | 25,199 | 7,242,064 | |
Fulcrum Therapeutics, Inc. Series B 0.00% (c)(d) | 614,195 | 1,228,390 | |
Generation Bio Series B (c)(d) | 224,243 | 2,050,859 | |
Immunocore Ltd. Series A (a)(c)(d) | 18,504 | 2,390,647 | |
Intarcia Therapeutics, Inc. Series EE (a)(c)(d) | 116,544 | 5,014,888 | |
Kaleido Biosciences, Inc. Series C (c)(d) | 212,696 | 2,124,833 | |
Moderna, Inc.: | |||
Series B (a)(c)(d) | 78,597 | 1,626,958 | |
Series C (a)(c)(d) | 51,305 | 1,062,014 | |
Series E (a)(c)(d) | 643,610 | 13,322,727 | |
Series F (a)(c)(d) | 705,628 | 14,606,500 | |
66,508,602 | |||
Health Care Equipment & Supplies - 0.0% | |||
Shockwave Medical, Inc. Series C (a)(c)(d) | 1,015,306 | 1,144,250 | |
Health Care Providers & Services - 0.1% | |||
Mulberry Health, Inc. Series A8 (a)(c)(d) | 783,663 | 5,599,883 | |
Health Care Technology - 0.0% | |||
Codiak Biosciences, Inc.: | |||
Series A 8.00% (a)(c)(d) | 163,914 | 595,008 | |
Series B 8.00% (a)(c)(d) | 532,720 | 1,933,774 | |
Series C, 8.00% (c)(d) | 648,255 | 2,353,166 | |
4,881,948 | |||
Pharmaceuticals - 0.1% | |||
Castle Creek Pharmaceutical Holdings, Inc. Series B (c)(d) | 4,910 | 2,022,184 | |
Harmony Biosciences II, Inc. Series A (a)(c)(d) | 2,550,636 | 2,550,636 | |
Nohla Therapeutics, Inc. Series B (c)(d) | 3,126,919 | 1,426,000 | |
5,998,820 | |||
TOTAL HEALTH CARE | 84,133,503 | ||
INDUSTRIALS - 0.1% | |||
Aerospace & Defense - 0.1% | |||
Space Exploration Technologies Corp. Series G (a)(c)(d) | 53,937 | 9,115,353 | |
Professional Services - 0.0% | |||
YourPeople, Inc. Series C (a)(c)(d) | 1,527,000 | 6,550,830 | |
TOTAL INDUSTRIALS | 15,666,183 | ||
INFORMATION TECHNOLOGY - 0.3% | |||
Internet Software & Services - 0.1% | |||
Lyft, Inc. Series I (c)(d) | 226,423 | 10,722,012 | |
Reddit, Inc. Series B (a)(c)(d) | 37,935 | 393,765 | |
Starry, Inc.: | |||
Series B (a)(c)(d) | 2,961,147 | 2,730,178 | |
Series C (c)(d) | 1,339,018 | 1,234,575 | |
15,080,530 | |||
IT Services - 0.0% | |||
AppNexus, Inc. Series E (Escrow) (a)(c)(d) | 209,665 | 202,327 | |
Software - 0.2% | |||
Cloudflare, Inc. Series D, 8.00% (a)(c)(d) | 560,425 | 6,164,675 | |
Dataminr, Inc. Series D (a)(c)(d) | 442,241 | 8,800,596 | |
Outset Medical, Inc.: | |||
Series C (a)(c)(d) | 382,862 | 1,190,701 | |
Series D (c)(d) | 373,580 | 1,161,834 | |
Taboola.Com Ltd. Series E (a)(c)(d) | 331,426 | 5,829,783 | |
23,147,589 | |||
TOTAL INFORMATION TECHNOLOGY | 38,430,446 | ||
TOTAL CONVERTIBLE PREFERRED STOCKS | 222,659,673 | ||
Nonconvertible Preferred Stocks - 0.1% | |||
CONSUMER DISCRETIONARY - 0.0% | |||
Textiles, Apparel & Luxury Goods - 0.0% | |||
Allbirds, Inc. (c)(d) | 3,445 | 188,909 | |
FINANCIALS - 0.0% | |||
Banks - 0.0% | |||
Itau Unibanco Holding SA | 666,000 | 6,203,600 | |
HEALTH CARE - 0.1% | |||
Biotechnology - 0.0% | |||
Yumanity Holdings LLC: | |||
Class A (a)(c)(d) | 130,754 | 861,669 | |
Class B (c)(d) | 85,345 | 562,424 | |
1,424,093 | |||
Pharmaceuticals - 0.1% | |||
Castle Creek Pharmaceutical Holdings, Inc. Series A4 (c)(d) | 13,511 | 5,564,505 | |
TOTAL HEALTH CARE | 6,988,598 | ||
TOTAL NONCONVERTIBLE PREFERRED STOCKS | 13,381,107 | ||
TOTAL PREFERRED STOCKS | |||
(Cost $180,376,580) | 236,040,780 | ||
Money Market Funds - 3.1% | |||
Fidelity Cash Central Fund, 2.27% (g) | 19,623,678 | 19,627,603 | |
Fidelity Securities Lending Cash Central Fund 2.27% (g)(h) | 329,461,484 | 329,494,430 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $349,122,033) | 349,122,033 | ||
TOTAL INVESTMENT IN SECURITIES - 102.6% | |||
(Cost $6,582,436,998) | 11,573,355,896 | ||
NET OTHER ASSETS (LIABILITIES) - (2.6)% | (296,886,130) | ||
NET ASSETS - 100% | $11,276,469,766 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $317,196,865 or 2.8% of net assets.
(d) Level 3 security
(e) Investment is owned by a wholly-owned subsidiary (Subsidiary) that is treated as a corporation for U.S. tax purposes.
(f) 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 $57,710,290 or 0.5% of net assets.
(g) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(h) Investment made with cash collateral received from securities on loan.
Additional information on each restricted holding is as follows:
Security | Acquisition Date | Acquisition Cost |
10X Genomics, Inc. Series C | 2/23/16 - 4/3/17 | $3,204,004 |
10X Genomics, Inc. Series D | 4/10/18 | $960,732 |
23andMe, Inc. Series F | 8/31/17 | $2,287,005 |
Adimab LLC | 9/17/14 - 6/5/15 | $11,583,995 |
Agbiome LLC Series C | 6/29/18 | $2,144,369 |
Allbirds, Inc. | 10/9/18 | $890,972 |
Allbirds, Inc. | 10/9/18 | $188,909 |
Allbirds, Inc. Series A | 10/9/18 | $351,662 |
Allbirds, Inc. Series B | 10/9/18 | $61,800 |
Allbirds, Inc. Series C | 10/9/18 | $590,417 |
Altiostar Networks, Inc. Series A1 | 1/10/17 | $933,105 |
Ant International Co. Ltd. Class C | 5/16/18 | $2,351,948 |
AppNexus, Inc. Series E (Escrow) | 8/1/14 | $378,005 |
Axcella Health, Inc. Series C | 8/11/17 | $1,124,736 |
Axcella Health, Inc. Series E | 11/30/18 | $1,348,610 |
BioNTech AG Series A | 12/29/17 | $5,518,798 |
Castle Creek Pharmaceutical Holdings, Inc. Series A4 | 9/29/16 | $4,471,547 |
Castle Creek Pharmaceutical Holdings, Inc. Series B | 10/9/18 | $2,022,184 |
Cibus Global Ltd. Series C | 2/16/18 | $2,400,000 |
Cloudflare, Inc. Series D, 8.00% | 11/5/14 - 9/10/18 | $4,486,263 |
Clover Health Series D | 6/7/17 | $2,476,086 |
Codiak Biosciences, Inc. Series A 8.00% | 11/12/15 | $163,914 |
Codiak Biosciences, Inc. Series B 8.00% | 11/12/15 | $1,598,160 |
Codiak Biosciences, Inc. Series C, 8.00% | 11/17/17 | $2,455,331 |
Dataminr, Inc. Series D | 2/18/15 - 3/6/15 | $5,638,573 |
Fulcrum Therapeutics, Inc. Series B 0.00% | 8/24/18 | $1,228,390 |
Generation Bio Series B | 2/21/18 | $2,050,859 |
Harmony Biosciences II, Inc. Series A | 9/22/17 | $2,550,636 |
Immunocore Ltd. Series A | 7/27/15 | $3,482,067 |
Intarcia Therapeutics, Inc. Series EE | 9/2/16 | $6,992,640 |
Jet.Com, Inc. Series B1 (Escrow) | 3/19/18 | $0 |
JUUL Labs, Inc. Class A | 7/6/18 | $2,383,487 |
JUUL Labs, Inc. Series E | 7/6/18 | $1,191,654 |
Kaleido Biosciences, Inc. Series C | 3/16/18 | $2,124,833 |
Lyft, Inc. Series I | 6/27/18 | $10,722,012 |
MOD Super Fast Pizza Holdings LLC Series 3 Preferred | 11/3/16 - 12/14/17 | $2,433,492 |
Moderna, Inc. Series B | 4/13/17 | $993,789 |
Moderna, Inc. Series C | 4/13/17 | $649,825 |
Moderna, Inc. Series E | 12/18/14 | $10,570,104 |
Moderna, Inc. Series F | 8/10/16 | $11,588,640 |
Mulberry Health, Inc. Series A8 | 1/20/16 | $5,293,448 |
Nohla Therapeutics, Inc. Series B | 5/1/18 | $1,426,000 |
ORIC Pharmaceuticals, Inc. Series C | 2/6/18 | $950,001 |
Outset Medical, Inc. Series C | 4/19/17 | $992,187 |
Outset Medical, Inc. Series D | 8/20/18 | $1,161,834 |
Peloton Interactive, Inc. Series E | 3/31/17 | $4,202,996 |
Reddit, Inc. Series B | 7/26/17 | $538,544 |
RPI International Holdings LP | 5/21/15 - 3/23/16 | $4,390,645 |
Shockwave Medical, Inc. Series C | 9/27/17 | $1,025,439 |
Space Exploration Technologies Corp. Class A | 10/16/15 - 4/6/17 | $12,876,729 |
Space Exploration Technologies Corp. Series G | 1/20/15 | $4,177,960 |
Starry, Inc. Series B | 12/1/16 | $1,601,981 |
Starry, Inc. Series C | 12/8/17 | $1,234,575 |
Sweetgreen, Inc. Series H | 11/9/18 | $2,195,114 |
Taboola.Com Ltd. Series E | 12/22/14 | $3,455,249 |
The Honest Co., Inc. | 8/21/14 | $256,936 |
The Honest Co., Inc. Series C | 8/21/14 | $599,509 |
The Honest Co., Inc. Series D | 8/3/15 | $872,273 |
Topgolf International, Inc. Series F | 11/10/17 | $3,237,994 |
Tory Burch LLC | 5/14/15 | $17,704,966 |
Turn, Inc. (Escrow) | 4/11/17 | $123,537 |
Uber Technologies, Inc. Series D, 8.00% | 6/6/14 | $17,000,007 |
Uber Technologies, Inc. Series E, 8.00% | 12/5/14 | $1,727,583 |
Wheels Up Partners Holdings LLC Series B | 9/18/15 | $5,235,000 |
Wheels Up Partners Holdings LLC Series C | 6/22/17 | 2,092,241 |
YourPeople, Inc. Series C | 5/1/15 | $22,753,949 |
Yumanity Holdings LLC Class A | 2/8/16 | $883,727 |
Yumanity Holdings LLC Class B | 6/19/18 | $714,338 |
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 | $862,011 |
Fidelity Securities Lending Cash Central Fund | 3,637,340 |
Total | $4,499,351 |
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 November 30, 2018, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Equities: | ||||
Communication Services | $1,529,096,971 | $1,453,507,748 | $19,219,140 | $56,370,083 |
Consumer Discretionary | 2,265,108,109 | 2,228,872,909 | -- | 36,235,200 |
Consumer Staples | 537,152,692 | 519,412,868 | 9,112,166 | 8,627,658 |
Energy | 208,106,103 | 208,106,103 | -- | -- |
Financials | 282,745,636 | 280,269,550 | -- | 2,476,086 |
Health Care | 2,085,586,278 | 1,937,395,158 | 17,232,482 | 130,958,638 |
Industrials | 589,617,938 | 546,831,488 | -- | 42,786,450 |
Information Technology | 3,649,171,527 | 3,609,771,579 | 619,701 | 38,780,247 |
Materials | 44,767,317 | 44,767,317 | -- | -- |
Real Estate | 32,881,292 | 30,529,344 | -- | 2,351,948 |
Money Market Funds | 349,122,033 | 349,122,033 | -- | -- |
Total Investments in Securities: | $11,573,355,896 | $11,208,586,097 | $46,183,489 | $318,586,310 |
The following is a reconciliation of Investments in Securities and Derivative Instruments for which Level 3 inputs were used in determining value:
Investments in Securities: | |
Equities - Health Care | |
Beginning Balance | $95,454,102 |
Net Realized Gain (Loss) on Investment Securities | -- |
Net Unrealized Gain (Loss) on Investment Securities | 18,123,945 |
Cost of Purchases | 26,459,110 |
Proceeds of Sales | (9,078,519) |
Amortization/Accretion | -- |
Transfers into Level 3 | -- |
Transfers out of Level 3 | -- |
Ending Balance | $130,958,638 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at November 30, 2018 | $20,796,692 |
Other investments in securites | |
Beginning Balance | $150,274,375 |
Net Realized Gain (Loss) on Investment Securities | 661,800 |
Net Unrealized Gain (Loss) on Investment Securities | 25,097,967 |
Cost of Purchases | 30,582,993 |
Proceeds of Sales | (30,084,642) |
Amortization/Accretion | -- |
Transfers into Level 3 | 11,095,179 |
Transfers out of Level 3 | -- |
Ending Balance | $187,627,672 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at November 30, 2018 | $25,847,267 |
The information used in the above reconciliations represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations.
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
November 30, 2018 | ||
Assets | ||
Investment in securities, at value (including securities loaned of $325,858,059) — See accompanying schedule: Unaffiliated issuers (cost $6,233,314,965) | $11,224,233,863 | |
Fidelity Central Funds (cost $349,122,033) | 349,122,033 | |
Total Investment in Securities (cost $6,582,436,998) | $11,573,355,896 | |
Restricted cash | 266,573 | |
Foreign currency held at value (cost $203) | 203 | |
Receivable for investments sold | 10,789,378 | |
Receivable for fund shares sold | 201,202,216 | |
Dividends receivable | 8,316,671 | |
Distributions receivable from Fidelity Central Funds | 453,769 | |
Total assets | 11,794,384,706 | |
Liabilities | ||
Payable for investments purchased | $161,259,701 | |
Payable for fund shares redeemed | 27,014,736 | |
Other payables and accrued expenses | 160,817 | |
Collateral on securities loaned | 329,479,686 | |
Total liabilities | 517,914,940 | |
Net Assets | $11,276,469,766 | |
Net Assets consist of: | ||
Paid in capital | $5,166,842,881 | |
Total distributable earnings (loss) | 6,109,626,885 | |
Net Assets | $11,276,469,766 | |
Net Asset Value and Maximum Offering Price | ||
Net Asset Value, offering price and redemption price per share ($11,276,469,766 ÷ 640,200,017 shares) | $17.61 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Year ended November 30, 2018 | ||
Investment Income | ||
Dividends | $74,649,886 | |
Special dividends | 16,714,697 | |
Income from Fidelity Central Funds | 4,499,351 | |
Total income | 95,863,934 | |
Expenses | ||
Custodian fees and expenses | $401,627 | |
Independent trustees' fees and expenses | 61,905 | |
Interest | 1,164 | |
Miscellaneous | 32,615 | |
Total expenses before reductions | 497,311 | |
Expense reductions | (169,465) | |
Total expenses after reductions | 327,846 | |
Net investment income (loss) | 95,536,088 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 1,070,345,258 | |
Fidelity Central Funds | 2,858 | |
Foreign currency transactions | (147,265) | |
Total net realized gain (loss) | 1,070,200,851 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers (net of decrease in deferred foreign taxes of $539,342) | (283,108,635) | |
Fidelity Central Funds | (1,515) | |
Assets and liabilities in foreign currencies | (50,222) | |
Total change in net unrealized appreciation (depreciation) | (283,160,372) | |
Net gain (loss) | 787,040,479 | |
Net increase (decrease) in net assets resulting from operations | $882,576,567 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Year ended November 30, 2018 | Year ended November 30, 2017 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $95,536,088 | $50,717,898 |
Net realized gain (loss) | 1,070,200,851 | 1,020,994,032 |
Change in net unrealized appreciation (depreciation) | (283,160,372) | 2,493,193,965 |
Net increase (decrease) in net assets resulting from operations | 882,576,567 | 3,564,905,895 |
Distributions to shareholders | (1,092,225,333) | – |
Distributions to shareholders from net investment income | – | (21,273,177) |
Distributions to shareholders from net realized gain | – | (237,558,300) |
Total distributions | (1,092,225,333) | (258,831,477) |
Share transactions - net increase (decrease) | (136,043,011) | (2,090,059,508) |
Total increase (decrease) in net assets | (345,691,777) | 1,216,014,910 |
Net Assets | ||
Beginning of period | 11,622,161,543 | 10,406,146,633 |
End of period | $11,276,469,766 | $11,622,161,543 |
Other Information | ||
Undistributed net investment income end of period | $49,100,719 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Series Growth Company Fund
Years ended November 30, | 2018 | 2017 | 2016 | 2015 | 2014 |
Selected Per–Share Data | |||||
Net asset value, beginning of period | $18.19 | $13.49 | $13.08 | $12.10 | $10.29 |
Income from Investment Operations | |||||
Net investment income (loss)A | .15B | .07 | .01 | .03 | .02 |
Net realized and unrealized gain (loss) | 1.02 | 4.96 | .43 | 1.04 | 1.80 |
Total from investment operations | 1.17 | 5.03 | .44 | 1.07 | 1.82 |
Distributions from net investment income | (.09) | (.02) | (.03) | (.02) | (.01) |
Distributions from net realized gain | (1.66) | (.31) | – | (.07) | – |
Total distributions | (1.75) | (.33) | (.03) | (.09) | (.01) |
Net asset value, end of period | $17.61 | $18.19 | $13.49 | $13.08 | $12.10 |
Total ReturnC | 6.96% | 38.10% | 3.38% | 8.94% | 17.67% |
Ratios to Average Net AssetsD,E | |||||
Expenses before reductions | - %F | .38% | .74% | .79% | .74% |
Expenses net of fee waivers, if any | - %F | .38% | .74% | .79% | .74% |
Expenses net of all reductions | - %F | .37% | .74% | .79% | .74% |
Net investment income (loss) | .79%B | .43% | .11% | .24% | .22% |
Supplemental Data | |||||
Net assets, end of period (000 omitted) | $11,276,470 | $11,622,162 | $4,032,151 | $4,602,479 | $4,353,274 |
Portfolio turnover rateG | 23% | 15% | 20% | 18% | 14% |
A Calculated based on average shares outstanding during the period.
B Net investment income per share reflects a large, non-recurring dividend which amounted to $.03 per share. This dividend is not annualized in the ratio of net investment income (loss) to average net assets. Excluding this dividend the ratio would have been .65%.
C Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
D Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
E Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
F Amount represents less than .005%.
G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended November 30, 2018
1. Organization.
Fidelity Series Growth Company Fund (the Fund) is a fund of Fidelity Mt. Vernon Street Trust (the Trust) and is authorized to issue an unlimited number of shares. Shares of the Fund are only available for purchase by mutual funds for which FMR or an affiliate serves as an investment manager. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. Effective August 28, 2017, the Fund no longer offered Class F, and all outstanding shares of Class F were exchanged for shares of Series Growth Company.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investments Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy. Equity securities, including restricted securities, for which observable inputs are not available are valued using alternate valuation approaches, including the market approach and the income approach and are categorized as Level 3 in the hierarchy. The market approach generally consists of using comparable market transactions while the income approach generally consists of using the net present value of estimated future cash flows, adjusted as appropriate for liquidity, credit, market and/or other risk factors.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
The following provides information on Level 3 securities held by the Fund that were valued at period end based on unobservable inputs. These amounts exclude valuations provided by a broker.
Asset Type | Fair Value | Valuation Technique(s) | Unobservable Input | Amount or Range/Weighted Average | Impact to Valuation from an Increase in Input(a) |
Equities | $ 318,586,310 | Market comparable | Enterprise value/Sales multiple (EV/S) | 1.2 - 7.2 / 2.2 | Increase |
Transaction price | $0.46 - $411.85 / $154.50 | Increase | |||
Enterprise value/EBITDA multiple (EV/EBITDA) | 10.5 | Increase | |||
Discount rate | 30.0% - 76.0% / 55.6% | Decrease | |||
Discount for lack of marketability | 10.0% - 15.0% / 14.4% | Decrease | |||
Premium rate | 40.0% | Increase | |||
Conversion ratio | 3.0 | Increase | |||
Proxy discount | 4.2% - 21.3% / 8.1% | Decrease | |||
Liquidity preference | $14.90 | Increase | |||
Market approach | Transaction price | $0.81 - $215.00 / $60.72 | Increase | ||
Discount for lack of marketability | 10.0% | Decrease | |||
Conversion ratio | 1.6 | Increase | |||
Discount cash flow | Discount rate | 8.0% | Decrease | ||
Discount for lack of marketability | 10.0% | Decrease | |||
Recovery value | Recovery value | 0.0% - 1.0% / 0.7% | Increase |
(a) Represents the expected directional change in the fair value of the Level 3 investments that would result from an increase in the corresponding input. A decrease to the unobservable input would have the opposite effect. Significant changes in these inputs could result in significantly higher or lower fair value measurements.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of November 30, 2018, as well as a roll forward of Level 3 investments, is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. Large, non-recurring dividends recognized by the Fund are presented separately on the Statement of Operations as "Special Dividends" and the impact of these dividends is presented in the Financial Highlights. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. As of November 30, 2018, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), partnership 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 | $5,366,016,839 |
Gross unrealized depreciation | (446,627,794) |
Net unrealized appreciation (depreciation) | $4,919,389,045 |
Tax Cost | $6,653,966,851 |
The tax-based components of distributable earnings as of period end were as follows:
Undistributed ordinary income | $120,195,207 |
Undistributed long-term capital gain | $1,070,059,130 |
Net unrealized appreciation (depreciation) on securities and other investments | $4,919,389,045 |
The tax character of distributions paid was as follows:
November 30, 2018 | November 30, 2017 | |
Ordinary Income | $85,603,473 | $ 21,273,177 |
Long-term Capital Gains | 1,006,621,860 | 237,558,300 |
Total | $1,092,225,333 | $ 258,831,477 |
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
Consolidated Subsidiary. The Fund invests in certain investments through a wholly-owned subsidiary ("Subsidiary"), which may be subject to federal and state taxes upon disposition.
As of period end, the Fund held an investment of $55,449,429 in these Subsidiaries, representing .49% of the Fund's net assets. The financial statements have been consolidated and include accounts of the Fund and each Subsidiary. Accordingly, all inter-company transactions and balances have been eliminated.
Any cash held by the Subsidiaries is restricted as to its use and is presented as Restricted cash in the Statement of Assets and Liabilities.
New Rule Issuance. During August 2018, the U.S. Securities and Exchange Commission issued Final Rule Release No. 33-10532, Disclosure Update and Simplification. This Final Rule includes amendments specific to registered investment companies that are intended to eliminate overlap in disclosure requirements between Regulation S-X and GAAP. In accordance with these amendments, certain line-items in the Fund's financial statements have been combined or removed for the current period as outlined in the table below.
Financial Statement | Current Line-Item Presentation | Prior Line-Item Presentation |
Statement of Assets and Liabilities | Total distributable earnings (loss) | Undistributed/Distributions in excess of/Accumulated net investment income (loss) Accumulated/Undistributed net realized gain (loss) Net unrealized appreciation (depreciation) |
Statement of Changes in Net Assets | N/A - removed | Undistributed/Distributions in excess of/Accumulated net investment income (loss) end of period |
Statement of Changes in Net Assets | Distributions to shareholders | Distributions to shareholders from net investment income Distributions to shareholders from net realized gain |
Distributions to Shareholders Note to Financial Statements | Distributions to shareholders | Distributions to shareholders from net investment income Distributions to shareholders from net realized gain |
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $2,710,542,712 and $3,746,913,385, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund does not pay a management fee. Under the management contract, the investment adviser or an affiliate pays all ordinary operating expenses of the Fund, except custody fees, fees and expenses of the independent Trustees, and certain miscellaneous expenses such as proxy and shareholder meeting expenses.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $67,292 for the period.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with Fidelity Management & Research Company (FMR) or other affiliated entities of FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Loan Balance | Weighted Average Interest Rate | Interest Expense |
Borrower | $25,697,000 | 1.63% | $1,164 |
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
Other. During the period, the investment adviser reimbursed the Fund for certain losses in the amount of $21,806.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $32,712 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. The value of securities loaned to FCM at period end was $19,121,176. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $3,637,340, including $228,221 from securities loaned to FCM.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $167,480 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $1,985.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Year ended November 30, 2018 | Year ended November 30, 2017 | |
Distributions to shareholders | ||
Series Growth Company | $1,092,225,333 | $– |
Total | $1,092,225,333 | $– |
From net investment income | ||
Series Growth Company | $– | $4,446,809 |
Class F | – | 16,826,368 |
Total | $– | $21,273,177 |
From net realized gain | ||
Series Growth Company | $– | $92,197,173 |
Class F | – | 145,361,127 |
Total | $– | $237,558,300 |
10. Share Transactions.
Transactions for each class of shares were as follows:
Shares | Shares | Dollars | Dollars | |
Year ended November 30, 2018 | Year ended November 30, 2017 | Year ended November 30, 2018 | Year ended November 30, 2017 | |
Series Growth Company | ||||
Shares sold | 57,708,359 | 431,705,596 | $1,042,406,601 | $7,133,495,773 |
Reinvestment of distributions | 65,481,135 | 7,164,120 | 1,092,225,333 | 96,643,982 |
Shares redeemed | (121,804,349) | (98,878,934) | (2,270,674,945) | (1,617,775,564) |
Net increase (decrease) | 1,385,145 | 339,990,782 | $(136,043,011) | $5,612,364,191 |
Class F | ||||
Shares sold | – | 5,710,126 | $– | $91,560,409 |
Reinvestment of distributions | – | 12,022,794 | – | 162,187,495 |
Shares redeemed | – | (489,437,017) | – | (7,956,171,603) |
Net increase (decrease) | – | (471,704,097) | $– | $(7,702,423,699) |
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.
At the end of the period, mutual funds managed by the investment adviser or its affiliates were the owners of record of all of the outstanding shares of the Fund.
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Mt. Vernon Street Trust and Shareholders of Fidelity Series Growth Company Fund:
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statement of assets and liabilities of Fidelity Series Growth Company Fund (the "Fund"), a fund of Fidelity Mt. Vernon Street Trust, including the schedule of investments, as of November 30, 2018, and the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of November 30, 2018, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund's financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of November 30, 2018, by correspondence with the custodians and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/ Deloitte & Touche LLP
Boston, Massachusetts
January 17, 2019
We have served as the auditor of one or more of the Fidelity investment companies since 1999.
Trustees and Officers
The Trustees, Members of the Advisory Board (if any), and officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Except for Michael E. Wiley, each of the Trustees oversees 281 funds. Mr. Wiley oversees 192 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the fund is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund’s Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Board Structure and Oversight Function. James C. Curvey is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Ned C. Lautenbach serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and other equity funds. The asset allocation funds may invest in Fidelity® funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. In addition, the Independent Trustees have worked with Fidelity to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
James C. Curvey (1935)
Year of Election or Appointment: 2007
Trustee
Chairman of the Board of Trustees
Mr. Curvey also serves as Trustee of other Fidelity® funds. Mr. Curvey is Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey is an Overseer Emeritus for the Boston Symphony Orchestra, a Director of Artis-Naples, and a Trustee of Brewster Academy in Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-2018), Director of Fidelity Investments Money Management, Inc. (investment adviser firm, 2009-2014) and a Director of FMR and FMR Co., Inc. (investment adviser firms, 2007-2014).
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), as a member of the Independent Directors Council (IDC) Governing Council (2010-2015), and as a member of the Board of Directors for The Brookville Center for Children’s Services, Inc. (2009-2017). Mr. Dirks is a member of the Finance Committee (2016-present) and Board of Directors (2017-present) and is Treasurer (2018-present) of the Asolo Repertory Theatre.
Donald F. Donahue (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Donahue also serves as a Trustee of other Fidelity® funds. Mr. Donahue is President and Chief Executive Officer of Miranda Partners, LLC (risk consulting for the financial services industry, 2012-present). Previously, Mr. Donahue served as a Member of the Advisory Board of certain Fidelity® funds (2015-2018) and Chief Executive Officer (2006-2012), Chief Operating Officer (2003-2006), and Managing Director, Customer Marketing and Development (1999-2003) of The Depository Trust & Clearing Corporation (financial markets infrastructure). Mr. Donahue serves as a Member (2007-present) and Co-Chairman (2016-present) of the Board of Directors of United Way of New York, Member of the Board of Directors of NYC Leadership Academy (2012-present) and Member of the Board of Advisors of Ripple Labs, Inc. (financial services, 2015-present). He also served as Chairman (2010-2012) and Member of the Board of Directors (2012-2013) of Omgeo, LLC (financial services), Treasurer of United Way of New York (2012-2016), and Member of the Board of Directors of XBRL US (financial services non-profit, 2009-2012) and the International Securities Services Association (2009-2012).
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2014-2017) and a member (2010-2017) of the Board of Directors of Dave & Buster’s Entertainment, Inc. (restaurant and entertainment complexes), as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association, and as a member of the Board of Directors for The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), Earth Fare, Inc. (retail grocery, 2010-2014), and The Western Union Company (global money transfer, 2006-2011).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as Chair (2018-present) and Member (2013-present) of the Board of Governors, State University System of Florida and is a member of the Council on Foreign Relations (1994-present). He is also a member and has most recently served as Chairman of the Board of Directors of Artis-Naples (2012-present). Previously, Mr. Lautenbach served as a member and then Lead Director of the Board of Directors of Eaton Corporation (diversified industrial, 1997-2016). He was also a Partner and Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007). In addition, Mr. Lautenbach also had a 30-year career with IBM (technology company) during which time he served as Senior Vice President and a member of the Corporate Executive Committee (1968-1998).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-2018).
Cornelia M. Small (1944)
Year of Election or Appointment: 2005
Trustee
Ms. Small also serves as Trustee of other Fidelity® funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.
Garnett A. Smith (1947)
Year of Election or Appointment: 2018
Trustee
Mr. Smith also serves as Trustee of other Fidelity® funds. Prior to Mr. Smith's retirement, he served as Chairman and Chief Executive Officer of Inbrand Corp. (manufacturer of personal absorbent products, 1990-1997). He also served as President (1986-1990) of Inbrand Corp. Prior to his employment with Inbrand Corp., he was employed by a retail fabric chain and North Carolina National Bank. In addition, Mr. Smith served as a Member of the Advisory Board of certain Fidelity® funds (2012-2013) and as a board member of the Jackson Hole Land Trust (2009-2012).
David M. Thomas (1949)
Year of Election or Appointment: 2008
Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present) and as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), a Director of Fortune Brands, Inc. (consumer products, 2000-2011), and a member of the Board of Trustees of the University of Florida (2013-2018).
Michael E. Wiley (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Wiley also serves as Trustee or Member of the Advisory Board of other Fidelity® funds. Mr. Wiley serves as a Director of High Point Resources (exploration and production, 2005-present). Previously, Mr. Wiley served as a Director of Andeavor Corporation (independent oil refiner and marketer, 2005-2018), a Director of Andeavor Logistics LP (natural resources logistics, 2015-2018), a Director of Post Oak Bank (privately-held bank, 2004-2018), a Director of Asia Pacific Exploration Consolidated (international oil and gas exploration and production, 2008-2013), a member of the Board of Trustees of the University of Tulsa (2000-2006; 2007-2010), a Senior Energy Advisor of Katzenbach Partners, LLC (consulting, 2006-2007), an Advisory Director of Riverstone Holdings (private investment), a Director of Spinnaker Exploration Company (exploration and production, 2001-2005) and Chairman, President, and CEO of Baker Hughes, Inc. (oilfield services, 2000-2004).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Advisory Board Members and Officers:
Correspondence intended for a Member of the Advisory Board (if any) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235. Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Vicki L. Fuller (1957)
Year of Election or Appointment: 2018
Member of the Advisory Board
Ms. Fuller also serves as Member of the Advisory Board of other Fidelity® funds. Ms. Fuller serves as a member of the Board of Directors, Audit Committee, and Nominating and Governance Committee of The Williams Companies, Inc. (natural gas infrastructure, 2018-present). Previously, Ms. Fuller served as the Chief Investment Officer of the New York State Common Retirement Fund (2012-2018) and held a variety of positions at AllianceBernstein L.P. (global asset management, 1985-2012), including Managing Director (2006-2012) and Senior Vice President and Senior Portfolio Manager (2001-2006).
Peter S. Lynch (1944)
Year of Election or Appointment: 2003
Member of the Advisory Board
Mr. Lynch also serves as Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of FMR (investment adviser firm) and FMR Co., Inc. (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).
Carol B. Tomé (1957)
Year of Election or Appointment: 2018
Member of the Advisory Board
Ms. Tomé also serves as Member of the Advisory Board of other Fidelity® funds. Ms. Tomé is Chief Financial Officer (2001-present) and Executive Vice President of Corporate Services (2007-present) of The Home Depot, Inc. (home improvement retailer) and a Director (2003-present) and Chair of the Audit Committee (2004-present) of United Parcel Service, Inc. (package delivery and supply chain management). Previously, Ms. Tomé served as Trustee of certain Fidelity® funds (2017), Senior Vice President of Finance and Accounting/Treasurer (2000-2007) and Vice President and Treasurer (1995-2000) of The Home Depot, Inc. and Chair of the Board (2010-2012), Vice Chair of the Board (2009 and 2013), and a Director (2008-2013) of the Federal Reserve Bank of Atlanta. Ms. Tomé is also a director or trustee of many community and professional organizations.
Elizabeth Paige Baumann (1968)
Year of Election or Appointment: 2017
Anti-Money Laundering (AML) Officer
Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer (2012-present) and Senior Vice President (2014-present) of FMR LLC (diversified financial services company) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as AML Officer of the funds (2012-2016), and Vice President (2007-2014) and Deputy Anti-Money Laundering Officer (2007-2012) of FMR LLC.
John J. Burke III (1964)
Year of Election or Appointment: 2018
Chief Financial Officer
Mr. Burke also serves as Chief Financial Officer of other funds. Mr. Burke serves as Head of Investment Operations for Fidelity Fund and Investment Operations (2018-present) and is an employee of Fidelity Investments (1998-present). Previously Mr. Burke served as head of Asset Management Investment Operations (2012-2018).
William C. Coffey (1969)
Year of Election or Appointment: 2018
Secretary and Chief Legal Officer (CLO)
Mr. Coffey also serves as Secretary and CLO of other funds. Mr. Coffey serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2018-present); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2018-present); and CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2018-present). He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Assistant Secretary of certain funds (2009-2018) and as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Timothy M. Cohen (1969)
Year of Election or Appointment: 2018
Vice President
Mr. Cohen also serves as Vice President of other funds. Mr. Cohen serves as Co-Head of Global Equity Research (2016-present), a Director of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present), and is an employee of Fidelity Investments. Previously, Mr. Cohen served as Chief Investment Officer - Equity and a Director of Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2013-2015) and as a Director of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2017).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds. Mr. Davis serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present), and is an employee of Fidelity Investments (2008-present). Previously, Mr. Deberghes served as President and Treasurer of certain Fidelity® funds (2013-2018). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). Previously, Mr. Deberghes served in other fund officer roles.
Laura M. Del Prato (1964)
Year of Election or Appointment: 2018
Assistant Treasurer
Ms. Del Prato also serves as an officer of other funds. Ms. Del Prato is an employee of Fidelity Investments (2017-present). Prior to joining Fidelity Investments, Ms. Del Prato served as a Managing Director and Treasurer of the JPMorgan Mutual Funds (2014-2017). Prior to JPMorgan, Ms. Del Prato served as a partner at Cohen Fund Audit Services (accounting firm, 2012-2013) and KPMG LLP (accounting firm, 2004-2012).
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2005-present). Previously, Mr. Hogan served as Assistant Treasurer of certain Fidelity® funds (2016-2018).
Pamela R. Holding (1964)
Year of Election or Appointment: 2018
Vice President
Ms. Holding also serves as Vice President of other funds. Ms. Holding serves as Co-Head of Global Equity Research (2018-present) and is an employee of Fidelity Investments (2013-present).
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight, serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
Rieco E. Mello (1969)
Year of Election or Appointment: 2017
Assistant Treasurer
Mr. Mello also serves as Assistant Treasurer of other funds. Mr. Mello serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (1995-present).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. Ms. Smith serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), is an employee of Fidelity Investments (2009-present), and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Assistant Treasurer (2013-2018) and Deputy Treasurer (2013-2016) of certain Fidelity® funds.
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs and (2) ongoing costs, including other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (June 1, 2018 to November 30, 2018).
Actual Expenses
The first line of the accompanying table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
Annualized Expense Ratio-A | Beginning Account Value June 1, 2018 | Ending Account Value November 30, 2018 | Expenses Paid During Period-B June 1, 2018 to November 30, 2018 | |
Series Growth Company | - %-C | |||
Actual | $1,000.00 | $948.80 | $--D | |
Hypothetical-E | $1,000.00 | $1,025.07 | $--D |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period).
C Amount represents less than .005%.
D Amount represents less than $.005.
E 5% return per year before expenses
Distributions (Unaudited)
The Board of Trustees of Fidelity Series Growth Company Fund voted to pay on December 20, 2018, to shareholders of record at the opening of business on December 19, 2018, a distribution of $1.716 per share derived from capital gains realized from sales of portfolio securities and a dividend of $0.150 per share from net investment income.
The fund hereby designates as a capital gain dividend with respect to the taxable year ended November 30, 2018, $ 1,070,943,175, or, if subsequently determined to be different, the net capital gain of such year.
The fund designates 94% of the dividends distributed during the fiscal year as qualifying for the dividends–received deduction for corporate shareholders.
The fund designates 99% of the dividends distributed during the fiscal year as amounts which may be taken into account as a dividend for the purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code.
The fund will notify shareholders in January 2019 of amounts for use in preparing 2018 income tax returns.
Board Approval of Investment Advisory Contracts
Fidelity Series Growth Company Fund
At its July 2018 meeting, the Board of Trustees, including the Independent Trustees (together, the Board), voted to continue the management contract with Fidelity Management & Research Company (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund for six months through January 31, 2019, in connection with the reunification of the Fidelity Equity High Income Funds Board, which oversees the fund, and the Sector Portfolios Board.
The Board considered that the approval of the fund's Advisory Contracts will not result in any changes in (i) the investment process or strategies employed in the management of the fund's assets; (ii) the fees and expenses paid by shareholders, including the expense cap arrangement currently in place for the fund; (iii) the nature, extent or quality of services provided under the fund's Advisory Contracts; or (iv) the day-to-day management of the fund or the persons primarily responsible for such management. The Board concluded that the fund's Advisory Contracts are fair and reasonable, and that the fund's Advisory Contracts should be renewed, without modification, through January 31, 2019, with the understanding that the Board will consider the annual renewal for a full one year period in January 2019.
In connection with its consideration of future renewals of the fund's Advisory Contracts, the Board will consider: (i) the nature, extent and quality of services provided to the fund, including shareholder and administrative services and investment performance; (ii) the competitiveness of the management fee and total expenses for the fund; (iii) the costs of the services and profitability, including the revenues earned and the expenses incurred in conducting the business of developing, marketing, distributing, managing, administering, and servicing the fund and its shareholders, to the extent applicable, as well as potential fall-out benefits from Fidelity's non-fund businesses; and (iv) whether there have been economies of scale in respect of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is the potential for realization of any further economies.
Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board ultimately concluded that the fund's management fee structure is fair and reasonable, and that the continuation of the fund's Advisory Contracts should be approved.
Corporate Headquarters
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Boston, MA 02210
www.fidelity.com
XS7-ANN-0119
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Fidelity Flex℠ Funds Fidelity Flex℠ Mid Cap Growth Fund Annual Report November 30, 2018 |
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of a fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a financial advisor, broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from a fund electronically, by contacting your financial intermediary. For Fidelity customers, visit Fidelity's web site or call Fidelity using the contact information listed below.
You may elect to receive all future reports in paper free of charge. If you wish to continue receiving paper copies of your shareholder reports, you may contact your financial intermediary or, if you are a Fidelity customer, visit Fidelity’s website, or call Fidelity at the applicable toll-free number listed below. Your election to receive reports in paper will apply to all funds held with the fund complex/your financial intermediary.
Account Type | Website | Phone Number |
Brokerage, Mutual Fund, or Annuity Contracts: | fidelity.com/mailpreferences | 1-800-343-3548 |
Employer Provided Retirement Accounts: | netbenefits.fidelity.com/preferences (choose 'no' under Required Disclosures to continue to print) | 1-800-343-0860 |
Advisor Sold Accounts Serviced Through Your Financial Intermediary: | Contact Your Financial Intermediary | Your Financial Intermediary's phone number |
Advisor Sold Accounts Serviced by Fidelity: | institutional.fidelity.com | 1-877-208-0098 |
Contents
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-800-835-5092 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2019 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
For the periods ended November 30, 2018 | Past 1 year | Life of fundA |
Fidelity Flex℠ Mid Cap Growth Fund | 4.29% | 9.67% |
A From March 8, 2017
$10,000 Over Life of Fund
Let's say hypothetically that $10,000 was invested in Fidelity Flex℠ Mid Cap Growth Fund on March 8, 2017, when the fund started.
The chart shows how the value of your investment would have changed, and also shows how the Russell Midcap® Growth Index performed over the same period.
Period Ending Values | ||
$11,733 | Fidelity Flex℠ Mid Cap Growth Fund | |
$12,408 | Russell Midcap® Growth Index |
Management's Discussion of Fund Performance
Market Recap: The S&P 500® index gained 6.27% for the 12 months ending November 30, 2018, as the U.S. equity bellwether declined sharply in October after climbing steadily beginning in May and achieving a record close in late September. Rising U.S. Treasury yields and concern about peaking corporate earnings growth sent many investors fleeing from risk assets at a time when they were still dealing with lingering uncertainty related to global trade and the U.S. Federal Reserve picking up the pace of interest rate hikes. The index returned -6.84% in October alone, its largest monthly drop in roughly seven years, and then endured a highly volatile November in which it gained 2.04%. For the full year, growth stocks within the index maintained a sizable advantage over their value counterparts, extending a trend that began in early 2017. A number of economically sensitive sectors dropped to the bottom of the 12-month performance scale, with materials (-7%) and energy (-2%) faring worst, followed by industrials (-1%) and financials (0%). In contrast, the defensive-oriented health care sector gained about 16% to lead the way. Consumer discretionary and information technology were rattled in October but earlier strength resulted in each advancing roughly 13% for the full 12 months. The newly reconstituted communication services sector, which includes dividend-rich telecom stocks, rose about 4%. Real estate (+5%), consumer staples (+3%) and utilities (+2%) also advanced but lagged the broader market.Comments from Portfolio Manager Jean Park: For the fiscal year, the fund returned 4.29%, falling behind the 5.32% advance of the benchmark Russell Midcap® Growth Index. While the mid-cap equity market experienced a strong run for most of the period, these stocks pulled back sharply in September as volatility increased. Versus the Russell index, sector and industry selection helped buoy the fund's relative result, while stock selection detracted modestly. The most significant drag on the fund's relative performance was its cash position of roughly 3%, on average, which was maintained for liquidity purposes. Looking at sector and industry selection, stock choices in consumer discretionary proved detrimental. On an individual stock basis, untimely ownership of software solutions provider Red Hat detracted most versus the benchmark. While I did establish a small stake in Red Hat, it was not enough to reap all the gains when International Business Machines (IBM) announced its $34 billion acquisition of the firm, which sent Red Hat's stock sharply higher. Also detracting was the fund's overweighted stake in auto electronics maker Visteon, which struggled, in part, from U.S. trade tariffs and slowing growth in China, and we sold off the position before period end. Conversely, stock picking in health care added value. However, the fund's biggest individual contributor - website domain provider VeriSign - came from the information technology sector. A renewed contract to maintain the internet's database of domain names and approval to increase its rates helped bolster VeriSign's stock price. An overweighting in e-commerce company TripAdvisor also contributed.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Investment Summary (Unaudited)
Top Ten Stocks as of November 30, 2018
% of fund's net assets | |
Total System Services, Inc. | 3.3 |
VeriSign, Inc. | 3.1 |
Wellcare Health Plans, Inc. | 2.8 |
Citrix Systems, Inc. | 2.7 |
ResMed, Inc. | 2.3 |
Roper Technologies, Inc. | 2.2 |
ON Semiconductor Corp. | 2.2 |
Fiserv, Inc. | 2.2 |
Edwards Lifesciences Corp. | 2.0 |
Centene Corp. | 2.0 |
24.8 |
Top Five Market Sectors as of November 30, 2018
% of fund's net assets | |
Information Technology | 33.2 |
Health Care | 17.0 |
Industrials | 15.7 |
Consumer Discretionary | 11.6 |
Financials | 7.8 |
Asset Allocation (% of fund's net assets)
As of November 30, 2018* | ||
Stocks | 96.9% | |
Short-Term Investments and Net Other Assets (Liabilities) | 3.1% |
* Foreign investments - 4.1%
Schedule of Investments November 30, 2018
Showing Percentage of Net Assets
Common Stocks - 96.9% | |||
Shares | Value | ||
COMMUNICATION SERVICES - 4.2% | |||
Entertainment - 3.4% | |||
Electronic Arts, Inc. (a) | 950 | $79,867 | |
Live Nation Entertainment, Inc. (a) | 3,000 | 167,040 | |
Take-Two Interactive Software, Inc. (a) | 2,600 | 285,142 | |
532,049 | |||
Interactive Media & Services - 0.8% | |||
TripAdvisor, Inc. (a) | 1,900 | 121,714 | |
TOTAL COMMUNICATION SERVICES | 653,763 | ||
CONSUMER DISCRETIONARY - 11.6% | |||
Auto Components - 1.4% | |||
Aptiv PLC | 2,950 | 212,105 | |
Distributors - 0.9% | |||
Pool Corp. | 850 | 138,134 | |
Diversified Consumer Services - 1.4% | |||
Service Corp. International | 4,800 | 221,760 | |
Hotels, Restaurants & Leisure - 1.7% | |||
Domino's Pizza, Inc. | 620 | 171,938 | |
Wyndham Hotels & Resorts, Inc. | 1,800 | 90,234 | |
262,172 | |||
Multiline Retail - 1.4% | |||
Dollar General Corp. | 1,900 | 210,881 | |
Specialty Retail - 2.8% | |||
Burlington Stores, Inc. (a) | 979 | 162,279 | |
Ross Stores, Inc. | 3,100 | 271,560 | |
433,839 | |||
Textiles, Apparel & Luxury Goods - 2.0% | |||
Carter's, Inc. | 1,100 | 101,750 | |
VF Corp. | 2,550 | 207,290 | |
309,040 | |||
TOTAL CONSUMER DISCRETIONARY | 1,787,931 | ||
CONSUMER STAPLES - 3.4% | |||
Beverages - 1.3% | |||
Brown-Forman Corp. Class B (non-vtg.) | 3,000 | 143,160 | |
Monster Beverage Corp. (a) | 1,000 | 59,680 | |
202,840 | |||
Food Products - 1.2% | |||
The Hershey Co. | 1,700 | 184,110 | |
Personal Products - 0.9% | |||
Estee Lauder Companies, Inc. Class A | 250 | 35,665 | |
Herbalife Nutrition Ltd. (a) | 1,760 | 100,760 | |
136,425 | |||
TOTAL CONSUMER STAPLES | 523,375 | ||
ENERGY - 0.7% | |||
Oil, Gas & Consumable Fuels - 0.7% | |||
Marathon Petroleum Corp. | 1,700 | 110,772 | |
FINANCIALS - 7.8% | |||
Banks - 2.2% | |||
Citizens Financial Group, Inc. | 6,900 | 250,884 | |
Huntington Bancshares, Inc. | 5,500 | 80,245 | |
331,129 | |||
Capital Markets - 5.3% | |||
Ameriprise Financial, Inc. | 1,100 | 142,725 | |
E*TRADE Financial Corp. | 2,200 | 115,038 | |
MarketAxess Holdings, Inc. | 100 | 21,773 | |
Moody's Corp. | 1,740 | 276,782 | |
MSCI, Inc. | 1,200 | 188,508 | |
S&P Global, Inc. | 400 | 73,144 | |
817,970 | |||
Insurance - 0.3% | |||
Progressive Corp. | 800 | 53,032 | |
TOTAL FINANCIALS | 1,202,131 | ||
HEALTH CARE - 17.0% | |||
Health Care Equipment & Supplies - 5.2% | |||
DexCom, Inc. (a) | 420 | 54,428 | |
Edwards Lifesciences Corp. (a) | 1,930 | 312,679 | |
Intuitive Surgical, Inc. (a) | 160 | 84,939 | |
ResMed, Inc. | 3,130 | 349,903 | |
801,949 | |||
Health Care Providers & Services - 5.4% | |||
Centene Corp. (a) | 2,130 | 302,993 | |
Laboratory Corp. of America Holdings (a) | 670 | 97,579 | |
Wellcare Health Plans, Inc. (a) | 1,700 | 433,296 | |
833,868 | |||
Health Care Technology - 0.9% | |||
Cerner Corp. (a) | 2,480 | 143,617 | |
Life Sciences Tools & Services - 4.4% | |||
Charles River Laboratories International, Inc. (a) | 1,950 | 262,958 | |
Mettler-Toledo International, Inc. (a) | 380 | 241,931 | |
Waters Corp. (a) | 900 | 178,722 | |
683,611 | |||
Pharmaceuticals - 1.1% | |||
Jazz Pharmaceuticals PLC (a) | 700 | 105,840 | |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 2,900 | 62,466 | |
168,306 | |||
TOTAL HEALTH CARE | 2,631,351 | ||
INDUSTRIALS - 15.7% | |||
Aerospace & Defense - 3.2% | |||
Huntington Ingalls Industries, Inc. | 1,400 | 301,700 | |
TransDigm Group, Inc. (a) | 540 | 195,302 | |
497,002 | |||
Airlines - 0.5% | |||
Alaska Air Group, Inc. | 1,100 | 80,586 | |
Commercial Services & Supplies - 3.5% | |||
Cintas Corp. | 1,300 | 243,594 | |
Copart, Inc. (a) | 2,900 | 148,422 | |
KAR Auction Services, Inc. | 2,710 | 154,849 | |
546,865 | |||
Electrical Equipment - 2.4% | |||
AMETEK, Inc. | 2,000 | 146,860 | |
Fortive Corp. | 2,840 | 216,039 | |
362,899 | |||
Industrial Conglomerates - 2.9% | |||
ITT, Inc. | 1,900 | 105,355 | |
Roper Technologies, Inc. | 1,150 | 342,229 | |
447,584 | |||
Machinery - 2.2% | |||
Cummins, Inc. | 260 | 39,276 | |
IDEX Corp. | 1,300 | 178,620 | |
Toro Co. | 2,000 | 123,980 | |
341,876 | |||
Professional Services - 1.0% | |||
CoStar Group, Inc. (a) | 50 | 18,470 | |
Equifax, Inc. | 1,300 | 133,471 | |
151,941 | |||
TOTAL INDUSTRIALS | 2,428,753 | ||
INFORMATION TECHNOLOGY - 33.2% | |||
Communications Equipment - 1.7% | |||
F5 Networks, Inc. (a) | 1,480 | 254,516 | |
Electronic Equipment & Components - 1.5% | |||
Amphenol Corp. Class A | 2,700 | 237,438 | |
IT Services - 12.9% | |||
Adyen BV | 10 | 5,174 | |
Akamai Technologies, Inc. (a) | 2,200 | 151,250 | |
Alliance Data Systems Corp. | 690 | 138,248 | |
Fiserv, Inc. (a) | 4,200 | 332,346 | |
FleetCor Technologies, Inc. (a) | 500 | 96,700 | |
Global Payments, Inc. | 1,500 | 167,715 | |
Total System Services, Inc. | 5,900 | 515,477 | |
VeriSign, Inc. (a) | 3,080 | 480,665 | |
Worldpay, Inc. (a) | 1,200 | 102,972 | |
1,990,547 | |||
Semiconductors & Semiconductor Equipment - 8.6% | |||
Analog Devices, Inc. | 2,115 | 194,411 | |
Broadcom, Inc. | 100 | 23,741 | |
KLA-Tencor Corp. | 1,800 | 177,408 | |
Lam Research Corp. | 1,530 | 240,149 | |
Microchip Technology, Inc. | 2,500 | 187,500 | |
ON Semiconductor Corp. (a) | 17,400 | 333,732 | |
Skyworks Solutions, Inc. | 2,450 | 178,287 | |
1,335,228 | |||
Software - 8.5% | |||
Adobe, Inc. (a) | 350 | 87,812 | |
Black Knight, Inc. (a) | 2,400 | 108,816 | |
CDK Global, Inc. | 1,100 | 55,440 | |
Check Point Software Technologies Ltd. (a) | 1,250 | 139,763 | |
Citrix Systems, Inc. | 3,770 | 410,817 | |
Intuit, Inc. | 200 | 42,906 | |
Parametric Technology Corp. (a) | 2,100 | 181,629 | |
Workday, Inc. Class A (a) | 1,700 | 278,800 | |
1,305,983 | |||
TOTAL INFORMATION TECHNOLOGY | 5,123,712 | ||
MATERIALS - 0.8% | |||
Chemicals - 0.8% | |||
Sherwin-Williams Co. | 130 | 55,129 | |
The Chemours Co. LLC | 2,400 | 68,352 | |
123,481 | |||
REAL ESTATE - 2.0% | |||
Equity Real Estate Investment Trusts (REITs) - 2.0% | |||
CoreSite Realty Corp. | 1,550 | 151,063 | |
Equity Lifestyle Properties, Inc. | 1,570 | 156,262 | |
307,325 | |||
UTILITIES - 0.5% | |||
Independent Power and Renewable Electricity Producers - 0.5% | |||
NRG Energy, Inc. | 2,000 | 76,860 | |
TOTAL COMMON STOCKS | |||
(Cost $15,000,280) | 14,969,454 | ||
Money Market Funds - 2.9% | |||
Fidelity Cash Central Fund, 2.27% (b) | |||
(Cost $448,410) | 448,321 | 448,410 | |
TOTAL INVESTMENT IN SECURITIES - 99.8% | |||
(Cost $15,448,690) | 15,417,864 | ||
NET OTHER ASSETS (LIABILITIES) - 0.2% | 28,790 | ||
NET ASSETS - 100% | $15,446,654 |
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, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
Fidelity Cash Central Fund | $5,283 |
Total | $5,283 |
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
All investments are categorized as Level 1 under the Fair Value Hierarchy. 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 please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
November 30, 2018 | ||
Assets | ||
Investment in securities, at value — See accompanying schedule: Unaffiliated issuers (cost $15,000,280) | $14,969,454 | |
Fidelity Central Funds (cost $448,410) | 448,410 | |
Total Investment in Securities (cost $15,448,690) | $15,417,864 | |
Receivable for investments sold | 8,634 | |
Receivable for fund shares sold | 12,880 | |
Dividends receivable | 15,978 | |
Distributions receivable from Fidelity Central Funds | 504 | |
Total assets | 15,455,860 | |
Liabilities | ||
Payable for investments purchased | $4,978 | |
Payable for fund shares redeemed | 4,228 | |
Total liabilities | 9,206 | |
Net Assets | $15,446,654 | |
Net Assets consist of: | ||
Paid in capital | $16,186,581 | |
Total distributable earnings (loss) | (739,927) | |
Net Assets, for 1,327,159 shares outstanding | $15,446,654 | |
Net Asset Value, offering price and redemption price per share ($15,446,654 ÷ 1,327,159 shares) | $11.64 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Year ended November 30, 2018 | ||
Investment Income | ||
Dividends | $69,384 | |
Special dividends | 14,308 | |
Income from Fidelity Central Funds | 5,283 | |
Total income | 88,975 | |
Expenses | ||
Independent trustees' fees and expenses | $32 | |
Commitment fees | 11 | |
Total expenses | 43 | |
Net investment income (loss) | 88,932 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | (787,717) | |
Fidelity Central Funds | 85 | |
Foreign currency transactions | (134) | |
Total net realized gain (loss) | (787,766) | |
Change in net unrealized appreciation (depreciation) on investment securities | (102,925) | |
Net gain (loss) | (890,691) | |
Net increase (decrease) in net assets resulting from operations | $(801,759) |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Year ended November 30, 2018 | For the period March 8, 2017 (commencement of operations) to November 30, 2017 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $88,932 | $5,271 |
Net realized gain (loss) | (787,766) | (9,608) |
Change in net unrealized appreciation (depreciation) | (102,925) | 72,099 |
Net increase (decrease) in net assets resulting from operations | (801,759) | 67,762 |
Distributions to shareholders | (5,930) | – |
Total distributions | (5,930) | – |
Share transactions | ||
Proceeds from sales of shares | 21,757,731 | 652,377 |
Reinvestment of distributions | 5,930 | – |
Cost of shares redeemed | (6,220,240) | (9,217) |
Net increase (decrease) in net assets resulting from share transactions | 15,543,421 | 643,160 |
Total increase (decrease) in net assets | 14,735,732 | 710,922 |
Net Assets | ||
Beginning of period | 710,922 | – |
End of period | $15,446,654 | $710,922 |
Other Information | ||
Undistributed net investment income end of period | $5,271 | |
Shares | ||
Sold | 1,794,375 | 64,021 |
Issued in reinvestment of distributions | 527 | – |
Redeemed | (530,911) | (853) |
Net increase (decrease) | 1,263,991 | 63,168 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Flex Mid Cap Growth Fund
Years ended November 30, | 2018 | 2017 A |
Selected Per–Share Data | ||
Net asset value, beginning of period | $11.25 | $10.00 |
Income from Investment Operations | ||
Net investment income (loss)B | .13C | .10D |
Net realized and unrealized gain (loss) | .35E | 1.15 |
Total from investment operations | .48 | 1.25 |
Distributions from net investment income | (.09) | – |
Total distributions | (.09) | – |
Net asset value, end of period | $11.64 | $11.25 |
Total ReturnF | 4.29% | 12.50% |
Ratios to Average Net AssetsG,H | ||
Expenses before reductionsI | -% | - %J |
Expenses net of fee waivers, if anyI | -% | - %J |
Expenses net of all reductionsI | -% | - %J |
Net investment income (loss) | 1.11%C | 1.29%D,J |
Supplemental Data | ||
Net assets, end of period (000 omitted) | $15,447 | $711 |
Portfolio turnover rateK | 88% | 38%J |
A For the period March 8, 2017 (commencement of operations) to November 30, 2017.
B Calculated based on average shares outstanding during the period.
C Net investment income per share reflects a large, non-recurring dividend which amounted to $.02 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .93%.
D Net investment income per share reflects a large, non-recurring dividend which amounted to $.02 per share. This dividend is not annualized in the ratio of net investment income (loss) to average net assets. Excluding this dividend the ratio would have been 1.14%.
E 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.
F Total returns for periods of less than one year are not annualized.
G Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
I Amount represents less than .005%.
J Annualized
K Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended November 30, 2018
1. Organization.
Fidelity Flex Mid Cap Growth Fund (the Fund) is a fund of Fidelity Mt. Vernon Street Trust (the Trust) and is authorized to issue an unlimited number of shares. Share transactions on the Statement of Changes in Net Assets may contain exchanges between affiliated funds. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund is available only to certain fee-based accounts offered by Fidelity.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investments Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. Large, non-recurring dividends recognized by the Fund are presented separately on the Statement of Operations as "Special Dividends" and the impact of these dividends is presented in the Financial Highlights. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. As of November 30, 2018, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, capital loss carryforwards and certain 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 | $686,324 |
Gross unrealized depreciation | (762,615) |
Net unrealized appreciation (depreciation) | $(76,291) |
Tax Cost | $15,494,155 |
The tax-based components of distributable earnings as of period end were as follows:
Undistributed ordinary income | $88,121 |
Capital loss carryforward | $(751,757) |
Net unrealized appreciation (depreciation) on securities and other investments | $(76,291) |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of fiscal period end and is subject to adjustment.
No expiration | |
Short-term | $(751,757) |
Total capital loss carryforward | $(751,757) |
The tax character of distributions paid was as follows:
November 30, 2018 | November 30, 2017A | |
Ordinary Income | $5,930 | $ - |
Total | $5,930 | $ - |
A For the period March 8, 2017 (commencement of operations) to November 30, 2017.
New Rule Issuance. During August 2018, the U.S. Securities and Exchange Commission issued Final Rule Release No. 33-10532, Disclosure Update and Simplification. This Final Rule includes amendments specific to registered investment companies that are intended to eliminate overlap in disclosure requirements between Regulation S-X and GAAP. In accordance with these amendments, certain line-items in the Fund's financial statements have been combined or removed for the current period as outlined in the table below.
Financial Statement | Current Line-Item Presentation | Prior Line-Item Presentation |
Statement of Assets and Liabilities | Total distributable earnings (loss) | Undistributed/Distributions in excess of/Accumulated net investment income (loss) Accumulated/Undistributed net realized gain (loss) Net unrealized appreciation (depreciation) |
Statement of Changes in Net Assets | N/A - removed | Undistributed/Distributions in excess of/Accumulated net investment income (loss) end of period |
Statement of Changes in Net Assets | Distributions to shareholders | Distributions to shareholders from net investment income Distributions to shareholders from net realized gain |
4. Purchases and Sales of Investments.
Purchases and sales of securities other than short-term securities, aggregated $21,610,921 and $6,389,554, respectively.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services and the Fund does not pay any fees for these services. Under the management contract, the investment adviser or an affiliate pays all other expenses of the Fund, excluding fees and expenses of the independent Trustees, and certain miscellaneous expenses such as proxy and shareholder meeting expenses.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $229 for the period.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $11 and is reflected in Commitment fees on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Fidelity Mt. Vernon Street Trust and Shareholders of Fidelity Flex Mid Cap Growth Fund:
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Fidelity Flex Mid Cap Growth Fund (one of the funds constituting Fidelity Mt. Vernon Street Trust, referred to hereafter as the "Fund") as of November 30, 2018, the related statement of operations for the year ended November 30, 2018 and the statement of changes in net assets and the financial highlights for the year ended November 30, 2018 and for the period March 8, 2017 (commencement of operations) through November 30, 2017, including the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of November 30, 2018, the results of its operations for the year ended November 30, 2018, and the changes in its net assets and the financial highlights for the year ended November 30, 2018 and for the period March 8, 2017 (commencement of operations) through November 30, 2017 in the conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of November 30, 2018 by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Boston, Massachusetts
January 17, 2019
We have served as the auditor of one or more investment companies in the Fidelity group of funds since 1932.
Trustees and Officers
The Trustees, Members of the Advisory Board (if any), and officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Except for Michael E. Wiley, each of the Trustees oversees 281 funds. Mr. Wiley oversees 192 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the fund is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund’s Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-835-5092.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Board Structure and Oversight Function. James C. Curvey is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Ned C. Lautenbach serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and other equity funds. The asset allocation funds may invest in Fidelity® funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. In addition, the Independent Trustees have worked with Fidelity to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
James C. Curvey (1935)
Year of Election or Appointment: 2007
Trustee
Chairman of the Board of Trustees
Mr. Curvey also serves as Trustee of other Fidelity® funds. Mr. Curvey is Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey is an Overseer Emeritus for the Boston Symphony Orchestra, a Director of Artis-Naples, and a Trustee of Brewster Academy in Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-2018), Director of Fidelity Investments Money Management, Inc. (investment adviser firm, 2009-2014) and a Director of FMR and FMR Co., Inc. (investment adviser firms, 2007-2014).
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), as a member of the Independent Directors Council (IDC) Governing Council (2010-2015), and as a member of the Board of Directors for The Brookville Center for Children’s Services, Inc. (2009-2017). Mr. Dirks is a member of the Finance Committee (2016-present) and Board of Directors (2017-present) and is Treasurer (2018-present) of the Asolo Repertory Theatre.
Donald F. Donahue (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Donahue also serves as a Trustee of other Fidelity® funds. Mr. Donahue is President and Chief Executive Officer of Miranda Partners, LLC (risk consulting for the financial services industry, 2012-present). Previously, Mr. Donahue served as a Member of the Advisory Board of certain Fidelity® funds (2015-2018) and Chief Executive Officer (2006-2012), Chief Operating Officer (2003-2006), and Managing Director, Customer Marketing and Development (1999-2003) of The Depository Trust & Clearing Corporation (financial markets infrastructure). Mr. Donahue serves as a Member (2007-present) and Co-Chairman (2016-present) of the Board of Directors of United Way of New York, Member of the Board of Directors of NYC Leadership Academy (2012-present) and Member of the Board of Advisors of Ripple Labs, Inc. (financial services, 2015-present). He also served as Chairman (2010-2012) and Member of the Board of Directors (2012-2013) of Omgeo, LLC (financial services), Treasurer of United Way of New York (2012-2016), and Member of the Board of Directors of XBRL US (financial services non-profit, 2009-2012) and the International Securities Services Association (2009-2012).
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2014-2017) and a member (2010-2017) of the Board of Directors of Dave & Buster’s Entertainment, Inc. (restaurant and entertainment complexes), as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association, and as a member of the Board of Directors for The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), Earth Fare, Inc. (retail grocery, 2010-2014), and The Western Union Company (global money transfer, 2006-2011).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as Chair (2018-present) and Member (2013-present) of the Board of Governors, State University System of Florida and is a member of the Council on Foreign Relations (1994-present). He is also a member and has most recently served as Chairman of the Board of Directors of Artis-Naples (2012-present). Previously, Mr. Lautenbach served as a member and then Lead Director of the Board of Directors of Eaton Corporation (diversified industrial, 1997-2016). He was also a Partner and Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007). In addition, Mr. Lautenbach also had a 30-year career with IBM (technology company) during which time he served as Senior Vice President and a member of the Corporate Executive Committee (1968-1998).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-2018).
Cornelia M. Small (1944)
Year of Election or Appointment: 2005
Trustee
Ms. Small also serves as Trustee of other Fidelity® funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.
Garnett A. Smith (1947)
Year of Election or Appointment: 2018
Trustee
Mr. Smith also serves as Trustee of other Fidelity® funds. Prior to Mr. Smith's retirement, he served as Chairman and Chief Executive Officer of Inbrand Corp. (manufacturer of personal absorbent products, 1990-1997). He also served as President (1986-1990) of Inbrand Corp. Prior to his employment with Inbrand Corp., he was employed by a retail fabric chain and North Carolina National Bank. In addition, Mr. Smith served as a Member of the Advisory Board of certain Fidelity® funds (2012-2013) and as a board member of the Jackson Hole Land Trust (2009-2012).
David M. Thomas (1949)
Year of Election or Appointment: 2008
Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present) and as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), a Director of Fortune Brands, Inc. (consumer products, 2000-2011), and a member of the Board of Trustees of the University of Florida (2013-2018).
Michael E. Wiley (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Wiley also serves as Trustee or Member of the Advisory Board of other Fidelity® funds. Mr. Wiley serves as a Director of High Point Resources (exploration and production, 2005-present). Previously, Mr. Wiley served as a Director of Andeavor Corporation (independent oil refiner and marketer, 2005-2018), a Director of Andeavor Logistics LP (natural resources logistics, 2015-2018), a Director of Post Oak Bank (privately-held bank, 2004-2018), a Director of Asia Pacific Exploration Consolidated (international oil and gas exploration and production, 2008-2013), a member of the Board of Trustees of the University of Tulsa (2000-2006; 2007-2010), a Senior Energy Advisor of Katzenbach Partners, LLC (consulting, 2006-2007), an Advisory Director of Riverstone Holdings (private investment), a Director of Spinnaker Exploration Company (exploration and production, 2001-2005) and Chairman, President, and CEO of Baker Hughes, Inc. (oilfield services, 2000-2004).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Advisory Board Members and Officers:
Correspondence intended for a Member of the Advisory Board (if any) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235. Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Vicki L. Fuller (1957)
Year of Election or Appointment: 2018
Member of the Advisory Board
Ms. Fuller also serves as Member of the Advisory Board of other Fidelity® funds. Ms. Fuller serves as a member of the Board of Directors, Audit Committee, and Nominating and Governance Committee of The Williams Companies, Inc. (natural gas infrastructure, 2018-present). Previously, Ms. Fuller served as the Chief Investment Officer of the New York State Common Retirement Fund (2012-2018) and held a variety of positions at AllianceBernstein L.P. (global asset management, 1985-2012), including Managing Director (2006-2012) and Senior Vice President and Senior Portfolio Manager (2001-2006).
Peter S. Lynch (1944)
Year of Election or Appointment: 2003
Member of the Advisory Board
Mr. Lynch also serves as Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of FMR (investment adviser firm) and FMR Co., Inc. (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).
Carol B. Tomé (1957)
Year of Election or Appointment: 2018
Member of the Advisory Board
Ms. Tomé also serves as Member of the Advisory Board of other Fidelity® funds. Ms. Tomé is Chief Financial Officer (2001-present) and Executive Vice President of Corporate Services (2007-present) of The Home Depot, Inc. (home improvement retailer) and a Director (2003-present) and Chair of the Audit Committee (2004-present) of United Parcel Service, Inc. (package delivery and supply chain management). Previously, Ms. Tomé served as Trustee of certain Fidelity® funds (2017), Senior Vice President of Finance and Accounting/Treasurer (2000-2007) and Vice President and Treasurer (1995-2000) of The Home Depot, Inc. and Chair of the Board (2010-2012), Vice Chair of the Board (2009 and 2013), and a Director (2008-2013) of the Federal Reserve Bank of Atlanta. Ms. Tomé is also a director or trustee of many community and professional organizations.
Elizabeth Paige Baumann (1968)
Year of Election or Appointment: 2017
Anti-Money Laundering (AML) Officer
Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer (2012-present) and Senior Vice President (2014-present) of FMR LLC (diversified financial services company) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as AML Officer of the funds (2012-2016), and Vice President (2007-2014) and Deputy Anti-Money Laundering Officer (2007-2012) of FMR LLC.
John J. Burke III (1964)
Year of Election or Appointment: 2018
Chief Financial Officer
Mr. Burke also serves as Chief Financial Officer of other funds. Mr. Burke serves as Head of Investment Operations for Fidelity Fund and Investment Operations (2018-present) and is an employee of Fidelity Investments (1998-present). Previously Mr. Burke served as head of Asset Management Investment Operations (2012-2018).
William C. Coffey (1969)
Year of Election or Appointment: 2018
Secretary and Chief Legal Officer (CLO)
Mr. Coffey also serves as Secretary and CLO of other funds. Mr. Coffey serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2018-present); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2018-present); and CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2018-present). He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Assistant Secretary of certain funds (2009-2018) and as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Timothy M. Cohen (1969)
Year of Election or Appointment: 2018
Vice President
Mr. Cohen also serves as Vice President of other funds. Mr. Cohen serves as Co-Head of Global Equity Research (2016-present), a Director of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present), and is an employee of Fidelity Investments. Previously, Mr. Cohen served as Chief Investment Officer - Equity and a Director of Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2013-2015) and as a Director of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2017).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds. Mr. Davis serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present), and is an employee of Fidelity Investments (2008-present). Previously, Mr. Deberghes served as President and Treasurer of certain Fidelity® funds (2013-2018). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). Previously, Mr. Deberghes served in other fund officer roles.
Laura M. Del Prato (1964)
Year of Election or Appointment: 2018
Assistant Treasurer
Ms. Del Prato also serves as an officer of other funds. Ms. Del Prato is an employee of Fidelity Investments (2017-present). Prior to joining Fidelity Investments, Ms. Del Prato served as a Managing Director and Treasurer of the JPMorgan Mutual Funds (2014-2017). Prior to JPMorgan, Ms. Del Prato served as a partner at Cohen Fund Audit Services (accounting firm, 2012-2013) and KPMG LLP (accounting firm, 2004-2012).
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2005-present). Previously, Mr. Hogan served as Assistant Treasurer of certain Fidelity® funds (2016-2018).
Pamela R. Holding (1964)
Year of Election or Appointment: 2018
Vice President
Ms. Holding also serves as Vice President of other funds. Ms. Holding serves as Co-Head of Global Equity Research (2018-present) and is an employee of Fidelity Investments (2013-present).
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight, serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
Rieco E. Mello (1969)
Year of Election or Appointment: 2017
Assistant Treasurer
Mr. Mello also serves as Assistant Treasurer of other funds. Mr. Mello serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (1995-present).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. Ms. Smith serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), is an employee of Fidelity Investments (2009-present), and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Assistant Treasurer (2013-2018) and Deputy Treasurer (2013-2016) of certain Fidelity® funds.
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs and (2) ongoing costs, including other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (June 1, 2018 to November 30, 2018).
Actual Expenses
The first line of the accompanying table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
Annualized Expense Ratio-A | Beginning Account Value June 1, 2018 | Ending Account Value November 30, 2018 | Expenses Paid During Period-B June 1, 2018 to November 30, 2018 | |
Actual | - %-C | $1,000.00 | $982.30 | $--D |
Hypothetical-E | $1,000.00 | $1,025.07 | $--D |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period).
C Amount represents less than .005%.
D Amount represents less than $.005.
E 5% return per year before expenses
Distributions (Unaudited)
The fund designates 83% of the dividend distributed during the fiscal year as qualifying for the dividends–received deduction for corporate shareholders.
The fund designates 87% of the dividend distributed during the fiscal year as amounts which may be taken into account as a dividend for the purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code.
The fund will notify shareholders in January 2019 of amounts for use in preparing 2018 income tax returns.
Board Approval of Investment Advisory Contracts
Fidelity Flex Mid Cap Growth Fund
At its July 2018 meeting, the Board of Trustees, including the Independent Trustees (together, the Board), voted to continue the management contract with Fidelity Management & Research Company (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund for six months through January 31, 2019, in connection with the reunification of the Fidelity Equity High Income Funds Board, which oversees the fund, and the Sector Portfolios Board.
The Board considered that the approval of the fund's Advisory Contracts will not result in any changes in (i) the investment process or strategies employed in the management of the fund's assets; (ii) the fees and expenses paid by shareholders; (iii) the nature, extent or quality of services provided under the fund's Advisory Contracts; or (iv) the day-to-day management of the fund or the persons primarily responsible for such management. The Board concluded that the fund's Advisory Contracts are fair and reasonable, and that the fund's Advisory Contracts should be renewed, without modification, through January 31, 2019, with the understanding that the Board will consider the annual renewal for a full one year period in January 2019.
In connection with its consideration of future renewals of the fund's Advisory Contracts, the Board will consider: (i) the nature, extent and quality of services provided to the fund, including shareholder and administrative services and investment performance; (ii) the competitiveness of the management fee and total expenses for the fund; (iii) the costs of the services and profitability, including the revenues earned and the expenses incurred in conducting the business of developing, marketing, distributing, managing, administering, and servicing the fund and its shareholders, to the extent applicable, as well as potential fall-out benefits from Fidelity's non-fund businesses; and (iv) whether there have been economies of scale in respect of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is the potential for realization of any further economies.
Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board ultimately concluded that the fund's management fee structure is fair and reasonable, and that the continuation of the fund's Advisory Contracts should be approved.
Corporate Headquarters
245 Summer St.
Boston, MA 02210
www.fidelity.com
ZDG-ANN-0119
1.9881579.101
Fidelity® Growth Strategies K6 Fund Annual Report November 30, 2018 |
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of a fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a financial advisor, broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from a fund electronically, by contacting your financial intermediary. For Fidelity customers, visit Fidelity's web site or call Fidelity using the contact information listed below.
You may elect to receive all future reports in paper free of charge. If you wish to continue receiving paper copies of your shareholder reports, you may contact your financial intermediary or, if you are a Fidelity customer, visit Fidelity’s website, or call Fidelity at the applicable toll-free number listed below. Your election to receive reports in paper will apply to all funds held with the fund complex/your financial intermediary.
Account Type | Website | Phone Number |
Brokerage, Mutual Fund, or Annuity Contracts: | fidelity.com/mailpreferences | 1-800-343-3548 |
Employer Provided Retirement Accounts: | netbenefits.fidelity.com/preferences (choose 'no' under Required Disclosures to continue to print) | 1-800-343-0860 |
Advisor Sold Accounts Serviced Through Your Financial Intermediary: | Contact Your Financial Intermediary | Your Financial Intermediary's phone number |
Advisor Sold Accounts Serviced by Fidelity: | institutional.fidelity.com | 1-877-208-0098 |
Contents
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-800-835-5092 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2019 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Performance: The Bottom Line
Average annual total return reflects the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
For the periods ended November 30, 2018 | Past 1 year | Life of fundA |
Fidelity® Growth Strategies K6 Fund | 2.68% | 8.03% |
A From May 25, 2017
$10,000 Over Life of Fund
Let's say hypothetically that $10,000 was invested in Fidelity® Growth Strategies K6 Fund on May 25, 2017, when the fund started.
The chart shows how the value of your investment would have changed, and also shows how the Russell Midcap® Growth Index performed over the same period.
Period Ending Values | ||
$11,244 | Fidelity® Growth Strategies K6 Fund | |
$11,814 | Russell Midcap® Growth Index |
Management's Discussion of Fund Performance
Market Recap: The S&P 500® index gained 6.27% for the 12 months ending November 30, 2018, as the U.S. equity bellwether declined sharply in October after climbing steadily beginning in May and achieving a record close in late September. Rising U.S. Treasury yields and concern about peaking corporate earnings growth sent many investors fleeing from risk assets at a time when they were still dealing with lingering uncertainty related to global trade and the U.S. Federal Reserve picking up the pace of interest rate hikes. The index returned -6.84% in October alone, its largest monthly drop in roughly seven years, and then endured a highly volatile November in which it gained 2.04%. For the full year, growth stocks within the index maintained a sizable advantage over their value counterparts, extending a trend that began in early 2017. A number of economically sensitive sectors dropped to the bottom of the 12-month performance scale, with materials (-7%) and energy (-2%) faring worst, followed by industrials (-1%) and financials (0%). In contrast, the defensive-oriented health care sector gained about 16% to lead the way. Consumer discretionary and information technology were rattled in October but earlier strength resulted in each advancing roughly 13% for the full 12 months. The newly reconstituted communication services sector, which includes dividend-rich telecom stocks, rose about 4%. Real estate (+5%), consumer staples (+3%) and utilities (+2%) also advanced but lagged the broader market.Comments from Portfolio Manager Jean Park: For the fiscal year, the fund returned roughly 3%, falling behind the 5.32% advance of the benchmark Russell Midcap® Growth Index. While the mid-cap equity market experienced a strong run for most of the period, these stocks pulled back sharply in September as volatility increased. Versus the Russell index, stock selection detracted most from the fund's relative return, even though positive market selection countered some of that effect. Specifically, stock choices in consumer discretionary and information technology proved detrimental. On an individual stock basis, untimely ownership of software solutions provider Red Hat detracted most versus the benchmark. While I did establish a small stake in Red Hat, it was not enough to reap all the gains when International Business Machines (IBM) announced its $34 billion acquisition of the firm, which sent Red Hat's stock sharply higher. Also detracting was the fund's overweighted stake in auto electronics maker Visteon, which struggled, in part, from U.S. trade tariffs and slowing growth in China, and we sold off the position before period end. Conversely, stock picking in health care added value. However, the fund's biggest individual contributor - website domain provider VeriSign - came from the information technology sector. A renewed contract to maintain the internet's database of domain names and approval to increase its rates helped bolster VeriSign's stock price. An overweighting in e-commerce company TripAdvisor also contributed.The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Investment Summary (Unaudited)
Top Ten Stocks as of November 30, 2018
% of fund's net assets | |
Total System Services, Inc. | 3.3 |
VeriSign, Inc. | 3.1 |
Wellcare Health Plans, Inc. | 2.8 |
Citrix Systems, Inc. | 2.7 |
ResMed, Inc. | 2.3 |
Roper Technologies, Inc. | 2.3 |
Fiserv, Inc. | 2.2 |
ON Semiconductor Corp. | 2.1 |
Huntington Ingalls Industries, Inc. | 2.0 |
Edwards Lifesciences Corp. | 2.0 |
24.8 |
Top Five Market Sectors as of November 30, 2018
% of fund's net assets | |
Information Technology | 33.8 |
Health Care | 17.1 |
Industrials | 15.8 |
Consumer Discretionary | 12.1 |
Financials | 7.7 |
Asset Allocation (% of fund's net assets)
As of November 30, 2018 * | ||
Stocks | 98.1% | |
Short-Term Investments and Net Other Assets (Liabilities) | 1.9% |
* Foreign investments - 4.1%
Schedule of Investments November 30, 2018
Showing Percentage of Net Assets
Common Stocks - 98.1% | |||
Shares | Value | ||
COMMUNICATION SERVICES - 4.2% | |||
Entertainment - 3.4% | |||
Electronic Arts, Inc. (a) | 7,700 | $647,339 | |
Live Nation Entertainment, Inc. (a) | 26,400 | 1,469,952 | |
Take-Two Interactive Software, Inc. (a) | 21,900 | 2,401,773 | |
4,519,064 | |||
Interactive Media & Services - 0.8% | |||
TripAdvisor, Inc. (a) | 17,400 | 1,114,644 | |
TOTAL COMMUNICATION SERVICES | 5,633,708 | ||
CONSUMER DISCRETIONARY - 12.1% | |||
Auto Components - 1.4% | |||
Aptiv PLC | 25,600 | 1,840,640 | |
Distributors - 0.9% | |||
Pool Corp. | 7,500 | 1,218,825 | |
Diversified Consumer Services - 1.4% | |||
Service Corp. International | 40,700 | 1,880,340 | |
Hotels, Restaurants & Leisure - 2.3% | |||
Domino's Pizza, Inc. | 5,400 | 1,497,528 | |
Wyndham Destinations, Inc. | 18,000 | 746,460 | |
Wyndham Hotels & Resorts, Inc. | 15,600 | 782,028 | |
3,026,016 | |||
Multiline Retail - 1.4% | |||
Dollar General Corp. | 16,500 | 1,831,335 | |
Specialty Retail - 2.7% | |||
Burlington Stores, Inc. (a) | 8,300 | 1,375,808 | |
Ross Stores, Inc. | 26,300 | 2,303,880 | |
3,679,688 | |||
Textiles, Apparel & Luxury Goods - 2.0% | |||
Carter's, Inc. | 9,200 | 851,000 | |
VF Corp. | 21,900 | 1,780,251 | |
2,631,251 | |||
TOTAL CONSUMER DISCRETIONARY | 16,108,095 | ||
CONSUMER STAPLES - 3.3% | |||
Beverages - 1.3% | |||
Brown-Forman Corp. Class B (non-vtg.) | 25,100 | 1,197,772 | |
Monster Beverage Corp. (a) | 8,700 | 519,216 | |
1,716,988 | |||
Food Products - 1.1% | |||
The Hershey Co. | 14,300 | 1,548,690 | |
Personal Products - 0.9% | |||
Estee Lauder Companies, Inc. Class A | 2,300 | 328,118 | |
Herbalife Nutrition Ltd. (a) | 14,700 | 841,575 | |
1,169,693 | |||
TOTAL CONSUMER STAPLES | 4,435,371 | ||
ENERGY - 0.7% | |||
Oil, Gas & Consumable Fuels - 0.7% | |||
Marathon Petroleum Corp. | 14,641 | 954,008 | |
FINANCIALS - 7.7% | |||
Banks - 2.1% | |||
Citizens Financial Group, Inc. | 58,000 | 2,108,880 | |
Huntington Bancshares, Inc. | 45,000 | 656,550 | |
2,765,430 | |||
Capital Markets - 5.3% | |||
Ameriprise Financial, Inc. | 9,300 | 1,206,675 | |
E*TRADE Financial Corp. | 18,800 | 983,052 | |
MarketAxess Holdings, Inc. | 900 | 195,957 | |
Moody's Corp. | 14,900 | 2,370,143 | |
MSCI, Inc. | 10,200 | 1,602,318 | |
S&P Global, Inc. | 3,500 | 640,010 | |
6,998,155 | |||
Insurance - 0.3% | |||
Progressive Corp. | 6,800 | 450,772 | |
TOTAL FINANCIALS | 10,214,357 | ||
HEALTH CARE - 17.1% | |||
Health Care Equipment & Supplies - 5.2% | |||
DexCom, Inc. (a) | 3,600 | 466,524 | |
Edwards Lifesciences Corp. (a) | 16,500 | 2,673,165 | |
Intuitive Surgical, Inc. (a) | 1,300 | 690,131 | |
ResMed, Inc. | 26,800 | 2,995,972 | |
6,825,792 | |||
Health Care Providers & Services - 5.4% | |||
Centene Corp. (a) | 18,200 | 2,588,950 | |
Elanco Animal Health, Inc. | 700 | 23,387 | |
Laboratory Corp. of America Holdings (a) | 5,800 | 844,712 | |
Wellcare Health Plans, Inc. (a) | 14,700 | 3,746,736 | |
7,203,785 | |||
Health Care Technology - 0.9% | |||
Cerner Corp. (a) | 21,200 | 1,227,692 | |
Life Sciences Tools & Services - 4.5% | |||
Charles River Laboratories International, Inc. (a) | 16,500 | 2,225,025 | |
Mettler-Toledo International, Inc. (a) | 3,200 | 2,037,312 | |
Waters Corp. (a) | 8,400 | 1,668,072 | |
5,930,409 | |||
Pharmaceuticals - 1.1% | |||
Jazz Pharmaceuticals PLC (a) | 6,000 | 907,200 | |
Teva Pharmaceutical Industries Ltd. sponsored ADR | 27,000 | 581,580 | |
1,488,780 | |||
TOTAL HEALTH CARE | 22,676,458 | ||
INDUSTRIALS - 15.8% | |||
Aerospace & Defense - 3.3% | |||
Huntington Ingalls Industries, Inc. | 12,500 | 2,693,750 | |
TransDigm Group, Inc. (a) | 4,600 | 1,663,682 | |
4,357,432 | |||
Airlines - 0.5% | |||
Alaska Air Group, Inc. | 9,500 | 695,970 | |
Commercial Services & Supplies - 3.5% | |||
Cintas Corp. | 11,100 | 2,079,918 | |
Copart, Inc. (a) | 24,700 | 1,264,146 | |
KAR Auction Services, Inc. | 23,100 | 1,319,934 | |
4,663,998 | |||
Electrical Equipment - 2.3% | |||
AMETEK, Inc. | 17,100 | 1,255,653 | |
Fortive Corp. | 24,300 | 1,848,501 | |
3,104,154 | |||
Industrial Conglomerates - 2.9% | |||
ITT, Inc. | 15,100 | 837,295 | |
Roper Technologies, Inc. | 9,970 | 2,966,972 | |
3,804,267 | |||
Machinery - 2.2% | |||
Cummins, Inc. | 2,250 | 339,885 | |
IDEX Corp. | 11,000 | 1,511,400 | |
Toro Co. | 17,000 | 1,053,830 | |
2,905,115 | |||
Professional Services - 1.1% | |||
CoStar Group, Inc. (a) | 1,000 | 369,390 | |
Equifax, Inc. | 11,100 | 1,139,637 | |
1,509,027 | |||
TOTAL INDUSTRIALS | 21,039,963 | ||
INFORMATION TECHNOLOGY - 33.8% | |||
Communications Equipment - 1.7% | |||
F5 Networks, Inc. (a) | 12,900 | 2,218,413 | |
Electronic Equipment & Components - 1.5% | |||
Amphenol Corp. Class A | 23,100 | 2,031,414 | |
IT Services - 13.0% | |||
Adyen BV | 100 | 51,743 | |
Akamai Technologies, Inc. (a) | 19,000 | 1,306,250 | |
Alliance Data Systems Corp. | 6,150 | 1,232,214 | |
Fiserv, Inc. (a) | 37,100 | 2,935,723 | |
FleetCor Technologies, Inc. (a) | 4,300 | 831,620 | |
Global Payments, Inc. | 12,800 | 1,431,168 | |
Total System Services, Inc. | 50,700 | 4,429,658 | |
VeriSign, Inc. (a) | 26,500 | 4,135,590 | |
Worldpay, Inc. (a) | 10,300 | 883,843 | |
17,237,809 | |||
Semiconductors & Semiconductor Equipment - 8.7% | |||
Analog Devices, Inc. | 17,800 | 1,636,176 | |
Broadcom, Inc. | 1,500 | 356,115 | |
KLA-Tencor Corp. | 15,500 | 1,527,680 | |
Lam Research Corp. | 13,100 | 2,056,176 | |
Microchip Technology, Inc. (b) | 21,602 | 1,620,150 | |
ON Semiconductor Corp. (a) | 148,000 | 2,838,640 | |
Skyworks Solutions, Inc. | 21,500 | 1,564,555 | |
11,599,492 | |||
Software - 8.9% | |||
Adobe, Inc. (a) | 3,400 | 853,026 | |
Black Knight, Inc. (a) | 20,800 | 943,072 | |
CDK Global, Inc. | 9,600 | 483,840 | |
Check Point Software Technologies Ltd. (a) | 10,600 | 1,185,186 | |
Citrix Systems, Inc. | 32,400 | 3,530,628 | |
Intuit, Inc. | 2,600 | 557,778 | |
Parametric Technology Corp. (a) | 18,200 | 1,574,118 | |
Red Hat, Inc. (a) | 1,700 | 303,552 | |
Workday, Inc. Class A (a) | 14,500 | 2,378,000 | |
11,809,200 | |||
TOTAL INFORMATION TECHNOLOGY | 44,896,328 | ||
MATERIALS - 0.9% | |||
Chemicals - 0.9% | |||
Sherwin-Williams Co. | 1,400 | 593,698 | |
The Chemours Co. LLC | 20,800 | 592,384 | |
1,186,082 | |||
REAL ESTATE - 2.0% | |||
Equity Real Estate Investment Trusts (REITs) - 2.0% | |||
CoreSite Realty Corp. | 13,200 | 1,286,472 | |
Equity Lifestyle Properties, Inc. | 13,600 | 1,353,608 | |
2,640,080 | |||
UTILITIES - 0.5% | |||
Independent Power and Renewable Electricity Producers - 0.5% | |||
NRG Energy, Inc. | 18,000 | 691,740 | |
TOTAL COMMON STOCKS | |||
(Cost $120,367,157) | 130,476,190 | ||
Money Market Funds - 3.2% | |||
Fidelity Cash Central Fund, 2.27% (c) | 2,690,354 | 2,690,892 | |
Fidelity Securities Lending Cash Central Fund 2.27% (c)(d) | 1,610,336 | 1,610,497 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $4,301,389) | 4,301,389 | ||
TOTAL INVESTMENT IN SECURITIES - 101.3% | |||
(Cost $124,668,546) | 134,777,579 | ||
NET OTHER ASSETS (LIABILITIES) - (1.3)% | (1,784,972) | ||
NET ASSETS - 100% | $132,992,607 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
(d) 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 | $29,516 |
Fidelity Securities Lending Cash Central Fund | 5,898 |
Total | $35,414 |
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
All investments are categorized as Level 1 under the Fair Value Hierarchy. 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 please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
November 30, 2018 | ||
Assets | ||
Investment in securities, at value (including securities loaned of $1,590,150) — See accompanying schedule: Unaffiliated issuers (cost $120,367,157) | $130,476,190 | |
Fidelity Central Funds (cost $4,301,389) | 4,301,389 | |
Total Investment in Securities (cost $124,668,546) | $134,777,579 | |
Receivable for fund shares sold | 57,318 | |
Dividends receivable | 133,850 | |
Distributions receivable from Fidelity Central Funds | 3,506 | |
Other receivables | 971 | |
Total assets | 134,973,224 | |
Liabilities | ||
Payable for investments purchased | $314,276 | |
Payable for fund shares redeemed | 6,680 | |
Accrued management fee | 49,269 | |
Collateral on securities loaned | 1,610,392 | |
Total liabilities | 1,980,617 | |
Net Assets | $132,992,607 | |
Net Assets consist of: | ||
Paid in capital | $125,704,027 | |
Total distributable earnings (loss) | 7,288,580 | |
Net Assets, for 11,864,552 shares outstanding | $132,992,607 | |
Net Asset Value, offering price and redemption price per share ($132,992,607 ÷ 11,864,552 shares) | $11.21 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Year ended November 30, 2018 | ||
Investment Income | ||
Dividends | $1,174,121 | |
Special dividends | 300,900 | |
Income from Fidelity Central Funds | 35,414 | |
Total income | 1,510,435 | |
Expenses | ||
Management fee | $561,423 | |
Independent trustees' fees and expenses | 615 | |
Commitment fees | 199 | |
Total expenses before reductions | 562,237 | |
Expense reductions | (2,503) | |
Total expenses after reductions | 559,734 | |
Net investment income (loss) | 950,701 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | (3,199,841) | |
Fidelity Central Funds | 381 | |
Foreign currency transactions | 67 | |
Total net realized gain (loss) | (3,199,393) | |
Change in net unrealized appreciation (depreciation) on investment securities | 4,122,474 | |
Net gain (loss) | 923,081 | |
Net increase (decrease) in net assets resulting from operations | $1,873,782 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Year ended November 30, 2018 | For the period May 25, 2017 (commencement of operations) to November 30, 2017 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $950,701 | $192,445 |
Net realized gain (loss) | (3,199,393) | (523,829) |
Change in net unrealized appreciation (depreciation) | 4,122,474 | 5,986,559 |
Net increase (decrease) in net assets resulting from operations | 1,873,782 | 5,655,175 |
Distributions to shareholders | (240,378) | – |
Total distributions | (240,378) | – |
Share transactions | ||
Proceeds from sales of shares | 72,393,898 | 81,896,163 |
Reinvestment of distributions | 240,378 | – |
Cost of shares redeemed | (21,786,663) | (7,039,748) |
Net increase (decrease) in net assets resulting from share transactions | 50,847,613 | 74,856,415 |
Total increase (decrease) in net assets | 52,481,017 | 80,511,590 |
Net Assets | ||
Beginning of period | 80,511,590 | – |
End of period | $132,992,607 | $80,511,590 |
Other Information | ||
Undistributed net investment income end of period | $197,572 | |
Shares | ||
Sold | 6,382,053 | 8,041,900 |
Issued in reinvestment of distributions | 21,833 | – |
Redeemed | (1,892,561) | (688,673) |
Net increase (decrease) | 4,511,325 | 7,353,227 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Growth Strategies K6 Fund
Years ended November 30, | 2018 | 2017 A |
Selected Per–Share Data | ||
Net asset value, beginning of period | $10.95 | $10.00 |
Income from Investment Operations | ||
Net investment income (loss)B | .09C | .04 |
Net realized and unrealized gain (loss) | .20 | .91 |
Total from investment operations | .29 | .95 |
Distributions from net investment income | (.03) | – |
Total distributions | (.03) | – |
Net asset value, end of period | $11.21 | $10.95 |
Total ReturnD,E | 2.68% | 9.50% |
Ratios to Average Net AssetsF,G | ||
Expenses before reductions | .45% | .45%H |
Expenses net of fee waivers, if any | .45% | .45%H |
Expenses net of all reductions | .45% | .45%H |
Net investment income (loss) | .76%C | .81%H |
Supplemental Data | ||
Net assets, end of period (000 omitted) | $132,993 | $80,512 |
Portfolio turnover rateI | 51%J | 56%H,J |
A For the period May 25, 2017 (commencement of operations) to November 30, 2017.
B Calculated based on average shares outstanding during the period.
C Net investment income per share reflects a large, non-recurring dividend which amounted to $.03 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been .52%.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
G Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
H Annualized
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
J Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended November 30, 2018
1. Organization.
Fidelity Growth Strategies K6 Fund (the Fund) is a fund of Fidelity Mt. Vernon Street Trust (the Trust) and is authorized to issue an unlimited number of shares. Share transactions on the Statement of Changes in Net Assets may contain exchanges between affiliated funds. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. Shares generally are available only to employer-sponsored retirement plans that are recordkept by Fidelity, or to certain employer-sponsored retirement plans that are not recordkept by Fidelity.
2. Investments in Fidelity Central Funds.
The Fund invests in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investments Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. Utilizing these techniques may result in transfers between Level 1 and Level 2. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. Large, non-recurring dividends recognized by the Fund are presented separately on the Statement of Operations as "Special Dividends" and the impact of these dividends is presented in the Financial Highlights. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. As of November 30, 2018, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, 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 | $15,287,550 |
Gross unrealized depreciation | (5,218,848) |
Net unrealized appreciation (depreciation) | $10,068,702 |
Tax Cost | $124,708,877 |
The tax-based components of distributable earnings as of period end were as follows:
Undistributed ordinary income | $907,486 |
Capital loss carryforward | $(3,687,609) |
Net unrealized appreciation (depreciation) on securities and other investments | $10,068,702 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of fiscal period end and is subject to adjustment.
No expiration | |
Short-term | $(3,687,609) |
The tax character of distributions paid was as follows:
November 30, 2018 | November 30, 2017(a) | |
Ordinary Income | $240,378 | $ - |
(a) For the period May 25, 2017 (commencement of operations) to November 30, 2017.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and in-kind transactions, aggregated $61,141,364 and $59,644,231, respectively.
Unaffiliated Exchanges In-Kind. During the period, the Fund received investments and cash valued at $49,866,907 in exchange for 4,391,663 shares of the Fund. The amount of in-kind exchanges is included in share transactions in the accompanying Statement of Changes in Net Assets.
New Rule Issuance. During August 2018, the U.S. Securities and Exchange Commission issued Final Rule Release No. 33-10532, Disclosure Update and Simplification. This Final Rule includes amendments specific to registered investment companies that are intended to eliminate overlap in disclosure requirements between Regulation S-X and GAAP. In accordance with these amendments, certain line-items in the Fund's financial statements have been combined or removed for the current period as outlined in the table below.
Financial Statement | Current Line-Item Presentation | Prior Line-Item Presentation |
Statement of Assets and Liabilities | Total distributable earnings (loss) | Undistributed/Distributions in excess of/Accumulated net investment income (loss) Accumulated/Undistributed net realized gain (loss) Net unrealized appreciation (depreciation) |
Statement of Changes in Net Assets | N/A - removed | Undistributed/Distributions in excess of/Accumulated net investment income (loss) end of period |
Statement of Changes in Net Assets | Distributions to shareholders | Distributions to shareholders from net investment income Distributions to shareholders from net realized gain |
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee that is based on an annual rate of .45% of average net assets. Under the management contract, the investment adviser or an affiliate pays all other expenses of the Fund, excluding fees and expenses of the independent Trustees, and certain miscellaneous expenses such as proxy and shareholder meeting expenses.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $933 for the period.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
Prior Fiscal Year Exchanges In-Kind. During the prior period, an affiliated entity completed an exchange in-kind with the Fund. The affiliated entity delivered investments and cash valued at $77,806,295 in exchange for 7,648,188 shares of the Fund. The amount of in-kind exchanges is included in share transactions in the accompanying Statement of Changes in Net Assets. The Fund recognized no gain or loss for federal income tax purposes.
6. Committed Line of Credit.
The Fund participates with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $199 and is reflected in Commitment fees on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Total security lending income during the period amounted to $5,898. During the period, there were no securities loaned to FCM.
8. Expense Reductions.
Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of the Fund include an amount in addition to trade execution, which may be rebated back to the Fund to offset certain expenses. This amount totaled $2,468 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's expenses by $35.
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.
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Fidelity Mt. Vernon Street Trust and Shareholders of Fidelity Growth Strategies K6 Fund:
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including the schedule of investments, of Fidelity Growth Strategies K6 Fund (one of the funds constituting Fidelity Mt. Vernon Street Trust, referred to hereafter as the "Fund") as of November 30, 2018, the related statement of operations for the year ended November 30, 2018 and the statement of changes in net assets and the financial highlights for the year ended November 30, 2018 and for the period May 25, 2017 (commencement of operations) through November 30, 2017, including the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of November 30, 2018, the results of its operations for the year ended November 30, 2018, and the changes in its net assets and the financial highlights for the year ended November 30, 2018 and for the period May 25, 2017 (commencement of operations) through November 30, 2017 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of November 30, 2018 by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Boston, Massachusetts
January 17, 2019
We have served as the auditor of one or more investment companies in the Fidelity group of funds since 1932.
Trustees and Officers
The Trustees, Members of the Advisory Board (if any), and officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Except for Michael E. Wiley, each of the Trustees oversees 281 funds. Mr. Wiley oversees 192 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the fund is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund’s Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-835-5092.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Board Structure and Oversight Function. James C. Curvey is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Ned C. Lautenbach serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's investment-grade bond, money market, asset allocation, and other equity funds. The asset allocation funds may invest in Fidelity® funds overseen by the fund's Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. In addition, the Independent Trustees have worked with Fidelity to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
James C. Curvey (1935)
Year of Election or Appointment: 2007
Trustee
Chairman of the Board of Trustees
Mr. Curvey also serves as Trustee of other Fidelity® funds. Mr. Curvey is Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey is an Overseer Emeritus for the Boston Symphony Orchestra, a Director of Artis-Naples, and a Trustee of Brewster Academy in Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-2018), Director of Fidelity Investments Money Management, Inc. (investment adviser firm, 2009-2014) and a Director of FMR and FMR Co., Inc. (investment adviser firms, 2007-2014).
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Dennis J. Dirks (1948)
Year of Election or Appointment: 2005
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), as a member of the Independent Directors Council (IDC) Governing Council (2010-2015), and as a member of the Board of Directors for The Brookville Center for Children’s Services, Inc. (2009-2017). Mr. Dirks is a member of the Finance Committee (2016-present) and Board of Directors (2017-present) and is Treasurer (2018-present) of the Asolo Repertory Theatre.
Donald F. Donahue (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Donahue also serves as a Trustee of other Fidelity® funds. Mr. Donahue is President and Chief Executive Officer of Miranda Partners, LLC (risk consulting for the financial services industry, 2012-present). Previously, Mr. Donahue served as a Member of the Advisory Board of certain Fidelity® funds (2015-2018) and Chief Executive Officer (2006-2012), Chief Operating Officer (2003-2006), and Managing Director, Customer Marketing and Development (1999-2003) of The Depository Trust & Clearing Corporation (financial markets infrastructure). Mr. Donahue serves as a Member (2007-present) and Co-Chairman (2016-present) of the Board of Directors of United Way of New York, Member of the Board of Directors of NYC Leadership Academy (2012-present) and Member of the Board of Advisors of Ripple Labs, Inc. (financial services, 2015-present). He also served as Chairman (2010-2012) and Member of the Board of Directors (2012-2013) of Omgeo, LLC (financial services), Treasurer of United Way of New York (2012-2016), and Member of the Board of Directors of XBRL US (financial services non-profit, 2009-2012) and the International Securities Services Association (2009-2012).
Alan J. Lacy (1953)
Year of Election or Appointment: 2008
Trustee
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2014-2017) and a member (2010-2017) of the Board of Directors of Dave & Buster’s Entertainment, Inc. (restaurant and entertainment complexes), as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association, and as a member of the Board of Directors for The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), Earth Fare, Inc. (retail grocery, 2010-2014), and The Western Union Company (global money transfer, 2006-2011).
Ned C. Lautenbach (1944)
Year of Election or Appointment: 2000
Trustee
Chairman of the Independent Trustees
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as Chair (2018-present) and Member (2013-present) of the Board of Governors, State University System of Florida and is a member of the Council on Foreign Relations (1994-present). He is also a member and has most recently served as Chairman of the Board of Directors of Artis-Naples (2012-present). Previously, Mr. Lautenbach served as a member and then Lead Director of the Board of Directors of Eaton Corporation (diversified industrial, 1997-2016). He was also a Partner and Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007). In addition, Mr. Lautenbach also had a 30-year career with IBM (technology company) during which time he served as Senior Vice President and a member of the Corporate Executive Committee (1968-1998).
Joseph Mauriello (1944)
Year of Election or Appointment: 2008
Trustee
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-2018).
Cornelia M. Small (1944)
Year of Election or Appointment: 2005
Trustee
Ms. Small also serves as Trustee of other Fidelity® funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.
Garnett A. Smith (1947)
Year of Election or Appointment: 2018
Trustee
Mr. Smith also serves as Trustee of other Fidelity® funds. Prior to Mr. Smith's retirement, he served as Chairman and Chief Executive Officer of Inbrand Corp. (manufacturer of personal absorbent products, 1990-1997). He also served as President (1986-1990) of Inbrand Corp. Prior to his employment with Inbrand Corp., he was employed by a retail fabric chain and North Carolina National Bank. In addition, Mr. Smith served as a Member of the Advisory Board of certain Fidelity® funds (2012-2013) and as a board member of the Jackson Hole Land Trust (2009-2012).
David M. Thomas (1949)
Year of Election or Appointment: 2008
Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present) and as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), a Director of Fortune Brands, Inc. (consumer products, 2000-2011), and a member of the Board of Trustees of the University of Florida (2013-2018).
Michael E. Wiley (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Wiley also serves as Trustee or Member of the Advisory Board of other Fidelity® funds. Mr. Wiley serves as a Director of High Point Resources (exploration and production, 2005-present). Previously, Mr. Wiley served as a Director of Andeavor Corporation (independent oil refiner and marketer, 2005-2018), a Director of Andeavor Logistics LP (natural resources logistics, 2015-2018), a Director of Post Oak Bank (privately-held bank, 2004-2018), a Director of Asia Pacific Exploration Consolidated (international oil and gas exploration and production, 2008-2013), a member of the Board of Trustees of the University of Tulsa (2000-2006; 2007-2010), a Senior Energy Advisor of Katzenbach Partners, LLC (consulting, 2006-2007), an Advisory Director of Riverstone Holdings (private investment), a Director of Spinnaker Exploration Company (exploration and production, 2001-2005) and Chairman, President, and CEO of Baker Hughes, Inc. (oilfield services, 2000-2004).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Advisory Board Members and Officers:
Correspondence intended for a Member of the Advisory Board (if any) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235. Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Vicki L. Fuller (1957)
Year of Election or Appointment: 2018
Member of the Advisory Board
Ms. Fuller also serves as Member of the Advisory Board of other Fidelity® funds. Ms. Fuller serves as a member of the Board of Directors, Audit Committee, and Nominating and Governance Committee of The Williams Companies, Inc. (natural gas infrastructure, 2018-present). Previously, Ms. Fuller served as the Chief Investment Officer of the New York State Common Retirement Fund (2012-2018) and held a variety of positions at AllianceBernstein L.P. (global asset management, 1985-2012), including Managing Director (2006-2012) and Senior Vice President and Senior Portfolio Manager (2001-2006).
Peter S. Lynch (1944)
Year of Election or Appointment: 2003
Member of the Advisory Board
Mr. Lynch also serves as Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of FMR (investment adviser firm) and FMR Co., Inc. (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).
Carol B. Tomé (1957)
Year of Election or Appointment: 2018
Member of the Advisory Board
Ms. Tomé also serves as Member of the Advisory Board of other Fidelity® funds. Ms. Tomé is Chief Financial Officer (2001-present) and Executive Vice President of Corporate Services (2007-present) of The Home Depot, Inc. (home improvement retailer) and a Director (2003-present) and Chair of the Audit Committee (2004-present) of United Parcel Service, Inc. (package delivery and supply chain management). Previously, Ms. Tomé served as Trustee of certain Fidelity® funds (2017), Senior Vice President of Finance and Accounting/Treasurer (2000-2007) and Vice President and Treasurer (1995-2000) of The Home Depot, Inc. and Chair of the Board (2010-2012), Vice Chair of the Board (2009 and 2013), and a Director (2008-2013) of the Federal Reserve Bank of Atlanta. Ms. Tomé is also a director or trustee of many community and professional organizations.
Elizabeth Paige Baumann (1968)
Year of Election or Appointment: 2017
Anti-Money Laundering (AML) Officer
Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer (2012-present) and Senior Vice President (2014-present) of FMR LLC (diversified financial services company) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as AML Officer of the funds (2012-2016), and Vice President (2007-2014) and Deputy Anti-Money Laundering Officer (2007-2012) of FMR LLC.
John J. Burke III (1964)
Year of Election or Appointment: 2018
Chief Financial Officer
Mr. Burke also serves as Chief Financial Officer of other funds. Mr. Burke serves as Head of Investment Operations for Fidelity Fund and Investment Operations (2018-present) and is an employee of Fidelity Investments (1998-present). Previously Mr. Burke served as head of Asset Management Investment Operations (2012-2018).
William C. Coffey (1969)
Year of Election or Appointment: 2018
Secretary and Chief Legal Officer (CLO)
Mr. Coffey also serves as Secretary and CLO of other funds. Mr. Coffey serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2018-present); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2018-present); and CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2018-present). He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Assistant Secretary of certain funds (2009-2018) and as Vice President and Associate General Counsel of FMR LLC (2005-2009).
Timothy M. Cohen (1969)
Year of Election or Appointment: 2018
Vice President
Mr. Cohen also serves as Vice President of other funds. Mr. Cohen serves as Co-Head of Global Equity Research (2016-present), a Director of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present), and is an employee of Fidelity Investments. Previously, Mr. Cohen served as Chief Investment Officer - Equity and a Director of Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2013-2015) and as a Director of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2017).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds. Mr. Davis serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present), and is an employee of Fidelity Investments (2008-present). Previously, Mr. Deberghes served as President and Treasurer of certain Fidelity® funds (2013-2018). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). Previously, Mr. Deberghes served in other fund officer roles.
Laura M. Del Prato (1964)
Year of Election or Appointment: 2018
Assistant Treasurer
Ms. Del Prato also serves as an officer of other funds. Ms. Del Prato is an employee of Fidelity Investments (2017-present). Prior to joining Fidelity Investments, Ms. Del Prato served as a Managing Director and Treasurer of the JPMorgan Mutual Funds (2014-2017). Prior to JPMorgan, Ms. Del Prato served as a partner at Cohen Fund Audit Services (accounting firm, 2012-2013) and KPMG LLP (accounting firm, 2004-2012).
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Deputy Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2005-present). Previously, Mr. Hogan served as Assistant Treasurer of certain Fidelity® funds (2016-2018).
Pamela R. Holding (1964)
Year of Election or Appointment: 2018
Vice President
Ms. Holding also serves as Vice President of other funds. Ms. Holding serves as Co-Head of Global Equity Research (2018-present) and is an employee of Fidelity Investments (2013-present).
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight, serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
Rieco E. Mello (1969)
Year of Election or Appointment: 2017
Assistant Treasurer
Mr. Mello also serves as Assistant Treasurer of other funds. Mr. Mello serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (1995-present).
Kenneth B. Robins (1969)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles.
Stacie M. Smith (1974)
Year of Election or Appointment: 2016
President and Treasurer
Ms. Smith also serves as an officer of other funds. Ms. Smith serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), is an employee of Fidelity Investments (2009-present), and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Assistant Treasurer (2013-2018) and Deputy Treasurer (2013-2016) of certain Fidelity® funds.
Marc L. Spector (1972)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Spector also serves as an officer of other funds. Mr. Spector serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013).
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (June 1, 2018 to November 30, 2018).
Actual Expenses
The first line of the accompanying table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
Annualized Expense Ratio-A | Beginning Account Value June 1, 2018 | Ending Account Value November 30, 2018 | Expenses Paid During Period-B June 1, 2018 to November 30, 2018 | |
Actual | .45% | $1,000.00 | $979.00 | $2.23 |
Hypothetical-C | $1,000.00 | $1,022.81 | $2.28 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period).
C 5% return per year before expenses
Distributions (Unaudited)
The fund designates 97% of the dividends distributed during the fiscal year as qualifying for the dividends–received deduction for corporate shareholders.
The fund designates 100% of the dividends distributed during the fiscal year as amounts which may be taken into account as a dividend for purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code.
The fund will notify shareholders in January 2019 of amounts for use in preparing 2018 income tax returns.
Board Approval of Investment Advisory Contracts
Fidelity Growth Strategies K6 Fund
At its July 2018 meeting, the Board of Trustees, including the Independent Trustees (together, the Board), voted to continue the management contract with Fidelity Management & Research Company (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund for six months through January 31, 2019, in connection with the reunification of the Fidelity Equity High Income Funds Board, which oversees the fund, and the Sector Portfolios Board.
The Board considered that the approval of the fund's Advisory Contracts will not result in any changes in (i) the investment process or strategies employed in the management of the fund's assets; (ii) the fees and expenses paid by shareholders; (iii) the nature, extent or quality of services provided under the fund's Advisory Contracts; or (iv) the day-to-day management of the fund or the persons primarily responsible for such management. The Board concluded that the fund's Advisory Contracts are fair and reasonable, and that the fund's Advisory Contracts should be renewed, without modification, through January 31, 2019, with the understanding that the Board will consider the annual renewal for a full one year period in January 2019.
In connection with its consideration of future renewals of the fund's Advisory Contracts, the Board will consider: (i) the nature, extent and quality of services provided to the fund, including shareholder and administrative services and investment performance; (ii) the competitiveness of the management fee and total expenses for the fund; (iii) the costs of the services and profitability, including the revenues earned and the expenses incurred in conducting the business of developing, marketing, distributing, managing, administering, and servicing the fund and its shareholders, to the extent applicable, as well as potential fall-out benefits from Fidelity's non-fund businesses; and (iv) whether there have been economies of scale in respect of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is the potential for realization of any further economies.
Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board ultimately concluded that the fund's management fee structure is fair and reasonable, and that the continuation of the fund's Advisory Contracts should be approved.
Corporate Headquarters
245 Summer St.
Boston, MA 02210
www.fidelity.com
FEGK6-ANN-0119
1.9883995.101
Item 2.
Code of Ethics
As of the end of the period, November 30, 2018, Fidelity Mt. Vernon Street Trust (the trust) has adopted a code of ethics, as defined in Item 2 of Form N-CSR, that applies to its President and Treasurer and its Chief Financial Officer. A copy of the code of ethics is filed as an exhibit to this Form N-CSR.
Item 3.
Audit Committee Financial Expert
The Board of Trustees of the trust has determined that Joseph Mauriello is an audit committee financial expert, as defined in Item 3 of Form N-CSR. Mr. Mauriello is independent for purposes of Item 3 of Form N-CSR.
Item 4.
Principal Accountant Fees and Services
Fees and Services
The following table presents fees billed by Deloitte & Touche LLP, the member firms of Deloitte Touche Tohmatsu, and their respective affiliates (collectively, “Deloitte Entities”) in each of the last two fiscal years for services rendered to Fidelity Growth Company Fund and Fidelity Series Growth Company Fund (the “Funds”):
Services Billed by Deloitte Entities
November 30, 2018 FeesA
| Audit Fees | Audit-Related Fees | Tax Fees | All Other Fees |
Fidelity Growth Company Fund | $108,000 | $100 | $19,000 | $2,300 |
Fidelity Series Growth Company Fund | $70,000 | $100 | $19,000 | $1,900 |
November 30, 2017 FeesA,B
| Audit Fees | Audit-Related Fees | Tax Fees | All Other Fees |
Fidelity Growth Company Fund | $145,000 | $200 | $19,100 | $3,400 |
Fidelity Series Growth Company Fund | $62,000 | $100 | $19,400 | $1,700 |
AAmounts may reflect rounding.
The following table presents fees billed by PricewaterhouseCoopers LLP (“PwC”) in each of the last two fiscal years for services rendered to Fidelity Flex Mid Cap Growth Fund, Fidelity Growth Strategies Fund, Fidelity Growth Strategies K6 Fund and Fidelity New Millennium Fund (the “Funds”):
Services Billed by PwC
November 30, 2018 FeesA
| Audit Fees | Audit-Related Fees | Tax Fees | All Other Fees |
Fidelity Flex Mid Cap Growth Fund | $38,000 | $3,200 | $2,600 | $1,600 |
Fidelity Growth Strategies Fund | $49,000 | $4,200 | $8,200 | $2,100 |
Fidelity Growth Strategies K6 Fund | $38,000 | $3,200 | $4,000 | $1,600 |
Fidelity New Millennium Fund | $64,000 | $5,500 | $3,800 | $2,700 |
November 30, 2017 FeesA,B
| Audit Fees | Audit-Related Fees | Tax Fees | All Other Fees |
Fidelity Flex Mid Cap Growth Fund | $38,000 | $2,300 | $2,800 | $1,100 |
Fidelity Growth Strategies Fund | $48,000 | $4,500 | $3,500 | $2,200 |
Fidelity Growth Strategies K6 Fund | $38,000 | $1,700 | $2,800 | $800 |
Fidelity New Millennium Fund | $63,000 | $5,700 | $67,500 | $2,700 |
AAmounts may reflect rounding.
BFidelity Flex Mid Cap Growth Fund commenced operations on March 8, 2017 and Fidelity Growth Strategies K6 Fund commenced operations on May 25, 2017.
The following table presents fees billed by PwC and Deloitte Entities that were required to be approved by the Audit Committee for services that relate directly to the operations and financial reporting of the Funds and that are rendered on behalf of Fidelity Management & Research Company (“FMR”) and entities controlling, controlled by, or under common control with FMR (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) that provide ongoing services to the Funds (“Fund Service Providers”):
Services Billed by Deloitte Entities
| November 30, 2018A | November 30, 2017A |
Audit-Related Fees | $290,000 | $- |
Tax Fees | $5,000 | $25,000 |
All Other Fees | $- | $- |
A Amounts may reflect rounding.
Services Billed by PwC
| November 30, 2018A | November 30, 2017A,B |
Audit-Related Fees | $7,745,000 | $9,220,000 |
Tax Fees | $20,000 | $150,000 |
All Other Fees | $- | $- |
A Amounts may reflect rounding.
BMay include amounts billed prior to the Fidelity Flex Mid Cap Growth Fund and Fidelity Growth Strategies K6 Fund’s commencement of operations.
“Audit-Related Fees” represent fees billed for assurance and related services that are reasonably related to the performance of the fund audit or the review of the fund's financial statements and that are not reported under Audit Fees.
“Tax Fees” represent fees billed for tax compliance, tax advice or tax planning that relate directly to the operations and financial reporting of the fund.
“All Other Fees” represent fees billed for services provided to the fund or Fund Service Provider, a significant portion of which are assurance related, that relate directly to the operations and financial reporting of the fund, excluding those services that are reported under Audit Fees, Audit-Related Fees or Tax Fees.
Assurance services must be performed by an independent public accountant.
* * *
The aggregate non-audit fees billed by PwC and Deloitte Entities for services rendered to the Funds, FMR (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any Fund Service Provider for each of the last two fiscal years of the Funds are as follows:
Billed By | November 30, 2018A | November 30, 2017A,B |
Deloitte Entities | $795,000 | $340,000 |
PwC | $10,985,000 | $11,775,000 |
A Amounts may reflect rounding.
BMay include amounts billed prior to the Fidelity Flex Mid Cap Growth Fund and Fidelity Growth Strategies K6 Fund’s commencement of operations.
The trust's Audit Committee has considered non-audit services that were not pre-approved that were provided by PwC and Deloitte Entities to Fund Service Providers to be compatible with maintaining the independence of PwC and Deloitte Entities in their audits of the Funds, taking into account representations from PwC and Deloitte Entities, in accordance with Public Company Accounting Oversight Board rules, regarding their independence from the Funds and their related entities and FMR’s review of the appropriateness and permissibility under applicable law of such non-audit services prior to their provision to the Fund Service Providers.
Audit Committee Pre-Approval Policies and Procedures
The trust’s Audit Committee must pre-approve all audit and non-audit services provided by a fund’s independent registered public accounting firm relating to the operations or financial reporting of the fund. Prior to the commencement of any audit or non-audit services to a fund, the Audit Committee reviews the services to determine whether they are appropriate and permissible under applicable law.
The Audit Committee has adopted policies and procedures to, among other purposes, provide a framework for the Committee’s consideration of non-audit services by the audit firms that audit the Fidelity funds. The policies and procedures require that any non-audit service provided by a fund audit firm to a Fidelity fund and any non-audit service provided by a fund auditor to a Fund Service Provider that relates directly to the operations and financial reporting of a Fidelity fund (“Covered Service”) are subject to approval by the Audit Committee before such service is provided.
All Covered Services must be approved in advance of provision of the service either: (i) by formal resolution of the Audit Committee, or (ii) by oral or written approval of the service by the Chair of the Audit Committee (or if the Chair is unavailable, such other member of the Audit Committee as may be designated by the Chair to act in the Chair’s absence). The approval contemplated by (ii) above is permitted where the Treasurer determines that action on such an engagement is necessary before the next meeting of the Audit Committee.
Non-audit services provided by a fund audit firm to a Fund Service Provider that do not relate directly to the operations and financial reporting of a Fidelity fund are reported to the Audit Committee periodically.
Non-Audit Services Approved Pursuant to Rule 2-01(c)(7)(i)(C) and (ii) of Regulation S-X (“De Minimis Exception”)
There were no non-audit services approved or required to be approved by the Audit Committee pursuant to the De Minimis Exception during the Funds’ last two fiscal years relating to services provided to (i) the Funds or (ii) any Fund Service Provider that relate directly to the operations and financial reporting of the Funds.
Item 5.
Audit Committee of Listed Registrants
Not applicable.
Item 6.
Investments
(a)
Not applicable.
(b)
Not applicable
Item 7.
Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not applicable.
Item 8.
Portfolio Managers of Closed-End Management Investment Companies
Not applicable.
Item 9.
Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
Not applicable.
Item 10.
Submission of Matters to a Vote of Security Holders
There were no material changes to the procedures by which shareholders may recommend nominees to the trust’s Board of Trustees.
Item 11.
Controls and Procedures
(a)(i) The President and Treasurer and the Chief Financial Officer have concluded that the trust’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act) provide reasonable assurances that material information relating to the trust is made known to them by the appropriate persons, based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this report.
(a)(ii) There was no change in the trust’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act) that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the trust’s internal control over financial reporting.
Item 12.
Disclosure of Securities Lending Activities for Closed-End Management
Investment Companies
Not applicable.
Item 13.
Exhibits
(a) | (1) | Code of Ethics pursuant to Item 2 of Form N-CSR is filed and attached hereto as EX-99.CODE ETH. |
(a) | (2) | Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT. |
(a) | (3) | Not applicable. |
(b) |
| Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) is furnished and attached hereto as Exhibit 99.906CERT. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Fidelity Mt. Vernon Street Trust
By: | /s/Stacie M. Smith |
| Stacie M. Smith |
| President and Treasurer |
|
|
Date: | January 24, 2019 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/Stacie M. Smith |
| Stacie M. Smith |
| President and Treasurer |
|
|
Date: | January 24, 2019 |
By: | /s/John J. Burke III |
| John J. Burke III |
| Chief Financial Officer |
|
|
Date: | January 24, 2019 |