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, MA 02210
(Address of principal executive offices) (Zip code)
William C. Coffey, Secretary
245 Summer St.
Boston, Massachusetts 02210
(Name and address of agent for service)
Registrant's telephone number, including area code:
617-563-7000
Date of fiscal year end: | November 30 |
Date of reporting period: | May 31, 2019 |
Item 1.
Reports to Stockholders
Fidelity® Growth Company Fund Semi-Annual Report May 31, 2019 |
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of a fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a financial advisor, broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from a fund electronically, by contacting your financial intermediary. For Fidelity customers, visit Fidelity's web site or call Fidelity using the contact information listed below.
You may elect to receive all future reports in paper free of charge. If you wish to continue receiving paper copies of your shareholder reports, you may contact your financial intermediary or, if you are a Fidelity customer, visit Fidelity’s website, or call Fidelity at the applicable toll-free number listed below. Your election to receive reports in paper will apply to all funds held with the fund complex/your financial intermediary.
Account Type | Website | Phone Number |
Brokerage, Mutual Fund, or Annuity Contracts: | fidelity.com/mailpreferences | 1-800-343-3548 |
Employer Provided Retirement Accounts: | netbenefits.fidelity.com/preferences (choose 'no' under Required Disclosures to continue to print) | 1-800-343-0860 |
Advisor Sold Accounts Serviced Through Your Financial Intermediary: | Contact Your Financial Intermediary | Your Financial Intermediary's phone number |
Advisor Sold Accounts Serviced by Fidelity: | institutional.fidelity.com | 1-877-208-0098 |
Contents
Board Approval of Investment Advisory Contracts and Management Fees |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-800-544-8544 if you’re an individual investing directly with Fidelity, call 1-800-835-5092 if you’re a plan sponsor or participant with Fidelity as your recordkeeper or call 1-877-208-0098 on institutional accounts or if you’re an advisor or invest through one to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2019 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT. Forms N-PORT are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-PORT may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Investment Summary (Unaudited)
Top Ten Stocks as of May 31, 2019
% of fund's net assets | |
Amazon.com, Inc. | 6.7 |
Apple, Inc. | 4.4 |
NVIDIA Corp. | 4.1 |
Alphabet, Inc. Class A | 4.0 |
Microsoft Corp. | 3.8 |
Salesforce.com, Inc. | 3.6 |
Facebook, Inc. Class A | 2.9 |
lululemon athletica, Inc. | 2.8 |
Shopify, Inc. Class A | 2.1 |
Alphabet, Inc. Class C | 2.1 |
36.5 |
Top Five Market Sectors as of May 31, 2019
% of fund's net assets | |
Information Technology | 34.0 |
Consumer Discretionary | 20.8 |
Health Care | 18.1 |
Communication Services | 13.4 |
Industrials | 5.1 |
Asset Allocation (% of fund's net assets)
As of May 31, 2019* | ||
Stocks | 98.3% | |
Convertible Securities | 1.5% | |
Short-Term Investments and Net Other Assets (Liabilities) | 0.2% |
* Foreign investments - 9.8%
Schedule of Investments May 31, 2019 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.0% | |||
Shares | Value (000s) | ||
COMMUNICATION SERVICES - 13.4% | |||
Diversified Telecommunication Services - 0.1% | |||
Verizon Communications, Inc. | 1,158,725 | $62,977 | |
Entertainment - 3.3% | |||
Activision Blizzard, Inc. | 4,060,687 | 176,112 | |
Electronic Arts, Inc. (a) | 1,286,869 | 119,782 | |
Lions Gate Entertainment Corp. Class A | 93,758 | 1,385 | |
Live Nation Entertainment, Inc. (a) | 1,109,780 | 67,497 | |
NetEase, Inc. ADR | 180,013 | 44,753 | |
Netflix, Inc. (a) | 2,000,278 | 686,655 | |
Nintendo Co. Ltd. | 73,300 | 25,875 | |
The Walt Disney Co. | 1,721,532 | 227,311 | |
1,349,370 | |||
Interactive Media & Services - 9.3% | |||
Alphabet, Inc.: | |||
Class A (a) | 1,493,084 | 1,652,097 | |
Class C (a) | 796,917 | 879,502 | |
CarGurus, Inc. Class A (a) | 375,280 | 12,820 | |
Facebook, Inc. Class A (a) | 6,657,047 | 1,181,426 | |
Match Group, Inc. (b) | 202,953 | 13,933 | |
Pinterest, Inc. Class A (b) | 255,016 | 6,355 | |
Snap, Inc. Class A (a)(b) | 4,091,470 | 48,648 | |
Tencent Holdings Ltd. | 1,091,400 | 45,509 | |
Twitter, Inc. (a) | 519,056 | 18,914 | |
3,859,204 | |||
Media - 0.2% | |||
Comcast Corp. Class A | 2,136,254 | 87,586 | |
Turn, Inc. (Escrow) (a)(c)(d) | 984,774 | 655 | |
88,241 | |||
Wireless Telecommunication Services - 0.5% | |||
T-Mobile U.S., Inc. (a) | 2,592,386 | 190,385 | |
TOTAL COMMUNICATION SERVICES | 5,550,177 | ||
CONSUMER DISCRETIONARY - 20.5% | |||
Auto Components - 0.0% | |||
Garrett Motion, Inc. (a) | 125,564 | 1,931 | |
Automobiles - 0.5% | |||
Tesla, Inc. (a)(b) | 1,079,514 | 199,883 | |
Hotels, Restaurants & Leisure - 1.1% | |||
Chipotle Mexican Grill, Inc. (a) | 73,865 | 48,749 | |
Hyatt Hotels Corp. Class A | 208,764 | 15,081 | |
Marriott International, Inc. Class A | 116,471 | 14,540 | |
McDonald's Corp. | 372,768 | 73,909 | |
Planet Fitness, Inc. (a) | 327,389 | 25,035 | |
Sea Ltd. ADR (a) | 1,972,187 | 56,089 | |
Shake Shack, Inc. Class A (a) | 159,195 | 9,767 | |
Starbucks Corp. | 2,160,900 | 164,358 | |
YETI Holdings, Inc. (b) | 398,195 | 9,525 | |
Yum China Holdings, Inc. | 1,194,456 | 47,790 | |
Yum! Brands, Inc. | 108,933 | 11,149 | |
475,992 | |||
Household Durables - 1.2% | |||
iRobot Corp. (a)(b) | 1,128,299 | 98,286 | |
Roku, Inc. (a) | 3,579,213 | 323,561 | |
Roku, Inc. Class A (a)(b) | 842,617 | 76,173 | |
498,020 | |||
Internet & Direct Marketing Retail - 9.4% | |||
Alibaba Group Holding Ltd. sponsored ADR (a) | 1,095,813 | 163,561 | |
Amazon.com, Inc. (a) | 1,576,443 | 2,798,302 | |
Ctrip.com International Ltd. ADR (a) | 463,412 | 16,016 | |
eBay, Inc. | 619,613 | 22,263 | |
Etsy, Inc. (a) | 179,759 | 11,201 | |
Expedia, Inc. | 255,501 | 29,383 | |
JD.com, Inc. sponsored ADR (a) | 2,932,716 | 75,547 | |
Ocado Group PLC (a) | 3,630,400 | 54,824 | |
The Booking Holdings, Inc. (a) | 70,123 | 116,139 | |
The Honest Co., Inc. (a)(c)(d) | 39,835 | 447 | |
Wayfair LLC Class A (a)(b) | 4,201,862 | 605,110 | |
3,892,793 | |||
Leisure Products - 0.1% | |||
Callaway Golf Co. | 1,583,720 | 23,281 | |
Multiline Retail - 0.4% | |||
Dollar General Corp. | 269,155 | 34,258 | |
Dollar Tree, Inc. (a) | 1,029,704 | 104,608 | |
Ollie's Bargain Outlet Holdings, Inc. (a) | 336,519 | 33,221 | |
Target Corp. | 118,637 | 9,544 | |
181,631 | |||
Specialty Retail - 1.7% | |||
Carvana Co. Class A (a)(b) | 554,834 | 32,114 | |
Five Below, Inc. (a) | 97,426 | 12,542 | |
Lowe's Companies, Inc. | 1,609,074 | 150,094 | |
RH (a)(b) | 970,108 | 82,605 | |
The Home Depot, Inc. | 1,845,431 | 350,355 | |
TJX Companies, Inc. | 1,394,094 | 70,109 | |
697,819 | |||
Textiles, Apparel & Luxury Goods - 6.1% | |||
adidas AG | 2,632,688 | 753,512 | |
Allbirds, Inc. (c)(d) | 61,486 | 3,241 | |
Canada Goose Holdings, Inc. (a)(b) | 1,276,170 | 42,989 | |
lululemon athletica, Inc. (a)(e) | 7,109,686 | 1,177,293 | |
NIKE, Inc. Class B | 2,108,800 | 162,673 | |
Rubius Therapeutics, Inc. (f) | 1,865,277 | 26,972 | |
Skechers U.S.A., Inc. Class A (sub. vtg.) (a) | 9,198,558 | 256,916 | |
Tory Burch LLC: | |||
Class A (a)(c)(d)(g) | 950,844 | 52,953 | |
Class B (a)(c)(d)(g) | 324,840 | 19,034 | |
Under Armour, Inc. Class C (non-vtg.) (a) | 733,330 | 14,835 | |
VF Corp. | 372,326 | 30,486 | |
2,540,904 | |||
TOTAL CONSUMER DISCRETIONARY | 8,512,254 | ||
CONSUMER STAPLES - 4.4% | |||
Beverages - 2.3% | |||
Fever-Tree Drinks PLC | 1,745,418 | 58,564 | |
Keurig Dr. Pepper, Inc. | 5,120,102 | 144,336 | |
Luckin Coffee, Inc. ADR (b) | 428,800 | 8,619 | |
Monster Beverage Corp. (a) | 5,930,676 | 366,872 | |
PepsiCo, Inc. | 893,047 | 114,310 | |
The Coca-Cola Co. | 5,284,112 | 259,608 | |
952,309 | |||
Food & Staples Retailing - 0.8% | |||
Costco Wholesale Corp. | 799,023 | 191,430 | |
Kroger Co. | 5,135,835 | 117,148 | |
308,578 | |||
Food Products - 0.3% | |||
Darling International, Inc. (a) | 1,281,661 | 24,223 | |
Lamb Weston Holdings, Inc. | 715,829 | 42,413 | |
Mondelez International, Inc. | 1,040,964 | 52,933 | |
The Hershey Co. | 156,227 | 20,616 | |
140,185 | |||
Household Products - 0.2% | |||
Church & Dwight Co., Inc. | 718,671 | 53,476 | |
Colgate-Palmolive Co. | 313,962 | 21,858 | |
Kimberly-Clark Corp. | 87,548 | 11,197 | |
86,531 | |||
Personal Products - 0.4% | |||
Coty, Inc. Class A (b) | 5,021,301 | 61,963 | |
Godrej Consumer Products Ltd. | 451,576 | 4,462 | |
Herbalife Nutrition Ltd. (a) | 940,969 | 39,314 | |
Unilever NV (Certificaten Van Aandelen) (Bearer) | 734,711 | 44,225 | |
149,964 | |||
Tobacco - 0.4% | |||
Altria Group, Inc. | 3,110,652 | 152,609 | |
JUUL Labs, Inc. Class A (c)(d) | 44,067 | 12,052 | |
Philip Morris International, Inc. | 92,324 | 7,121 | |
171,782 | |||
TOTAL CONSUMER STAPLES | 1,809,349 | ||
ENERGY - 1.3% | |||
Energy Equipment & Services - 0.0% | |||
Baker Hughes, a GE Co. Class A | 1,135,438 | 24,310 | |
Oil, Gas & Consumable Fuels - 1.3% | |||
Cabot Oil & Gas Corp. | 1,824,338 | 45,645 | |
Continental Resources, Inc. (a) | 122,302 | 4,281 | |
EOG Resources, Inc. | 1,390,345 | 113,841 | |
Hess Corp. | 3,248,655 | 181,470 | |
Noble Energy, Inc. | 1,271,737 | 27,215 | |
PDC Energy, Inc. (a) | 327,380 | 9,992 | |
Range Resources Corp. (b) | 1,389,233 | 10,864 | |
Reliance Industries Ltd. | 5,503,080 | 105,112 | |
Valero Energy Corp. | 373,513 | 26,295 | |
524,715 | |||
TOTAL ENERGY | 549,025 | ||
FINANCIALS - 1.8% | |||
Banks - 0.7% | |||
Bank of America Corp. | 1,371,032 | 36,469 | |
HDFC Bank Ltd. sponsored ADR | 1,207,309 | 149,899 | |
JPMorgan Chase & Co. | 967,552 | 102,522 | |
Signature Bank | 67,123 | 7,689 | |
Wells Fargo & Co. | 57,443 | 2,549 | |
299,128 | |||
Capital Markets - 0.9% | |||
BlackRock, Inc. Class A | 246,561 | 102,461 | |
Charles Schwab Corp. | 4,527,757 | 188,400 | |
Edelweiss Financial Services Ltd. | 6,327,164 | 18,430 | |
T. Rowe Price Group, Inc. | 366,801 | 37,098 | |
346,389 | |||
Consumer Finance - 0.2% | |||
American Express Co. | 519,449 | 59,586 | |
Discover Financial Services | 468,433 | 34,922 | |
94,508 | |||
Insurance - 0.0% | |||
Hiscox Ltd. | 325,700 | 6,736 | |
TOTAL FINANCIALS | 746,761 | ||
HEALTH CARE - 17.3% | |||
Biotechnology - 11.1% | |||
AbbVie, Inc. | 1,194,750 | 91,649 | |
ACADIA Pharmaceuticals, Inc. (a)(e) | 7,218,650 | 173,175 | |
Agios Pharmaceuticals, Inc. (a) | 2,845,036 | 131,355 | |
Alector, Inc. | 297,316 | 5,028 | |
Alexion Pharmaceuticals, Inc. (a) | 1,291,659 | 146,836 | |
Alkermes PLC (a) | 3,914,729 | 84,323 | |
Allakos, Inc. (a) | 127,866 | 5,012 | |
Allogene Therapeutics, Inc. (b) | 962,267 | 25,240 | |
Allogene Therapeutics, Inc. (f) | 301,764 | 7,915 | |
Alnylam Pharmaceuticals, Inc. (a)(e) | 5,352,825 | 361,423 | |
Amgen, Inc. | 1,079,938 | 180,026 | |
AnaptysBio, Inc. (a) | 522,051 | 38,011 | |
Argenx SE ADR (a) | 100,697 | 12,449 | |
Array BioPharma, Inc. (a) | 5,172,819 | 136,666 | |
Ascendis Pharma A/S sponsored ADR (a) | 297 | 37 | |
aTyr Pharma, Inc. | 2,155,275 | 931 | |
Axcella Health, Inc. | 255,150 | 3,641 | |
Axcella Health, Inc. | 490,468 | 6,299 | |
BeiGene Ltd. | 1,746,853 | 16,222 | |
BeiGene Ltd. ADR (a) | 2,233,973 | 263,452 | |
Biogen, Inc. (a) | 66,514 | 14,586 | |
bluebird bio, Inc. (a) | 2,601,830 | 312,011 | |
Blueprint Medicines Corp. (a) | 472,794 | 35,932 | |
Calyxt, Inc. (a)(e) | 1,652,371 | 20,985 | |
Celgene Corp. (a) | 700,393 | 65,690 | |
Cellectis SA sponsored ADR (a) | 815,367 | 12,948 | |
ChemoCentryx, Inc. (a) | 2,228,080 | 25,133 | |
Cibus Corp.: | |||
Series C (a)(c)(d)(g) | 4,523,810 | 7,616 | |
Series D (a)(c)(d)(g) | 2,741,040 | 3,426 | |
Coherus BioSciences, Inc. (a)(b) | 1,098,743 | 20,766 | |
Constellation Pharmaceuticals, Inc. | 198,503 | 1,711 | |
Constellation Pharmaceuticals, Inc. (f) | 423,827 | 3,653 | |
Crinetics Pharmaceuticals, Inc. (a) | 203,921 | 5,359 | |
CytomX Therapeutics, Inc. (a) | 234,297 | 2,263 | |
Denali Therapeutics, Inc. (a)(b) | 629,171 | 11,998 | |
Evelo Biosciences, Inc. (b)(e) | 710,182 | 5,312 | |
Evelo Biosciences, Inc. (e)(f) | 909,286 | 6,801 | |
Exact Sciences Corp. (a) | 282,679 | 29,294 | |
Exelixis, Inc. (a) | 8,164,687 | 159,946 | |
Fate Therapeutics, Inc. (a) | 2,823,250 | 54,432 | |
Five Prime Therapeutics, Inc. (a) | 1,270,772 | 10,674 | |
Global Blood Therapeutics, Inc. (a) | 1,543,533 | 93,816 | |
Homology Medicines, Inc. (a) | 1,046,868 | 21,189 | |
Intellia Therapeutics, Inc. (a)(b) | 618,627 | 8,587 | |
Intercept Pharmaceuticals, Inc. (a) | 190,971 | 15,816 | |
Ionis Pharmaceuticals, Inc. (a)(e) | 8,490,936 | 557,005 | |
Iovance Biotherapeutics, Inc. (a) | 148,200 | 2,423 | |
Ironwood Pharmaceuticals, Inc. Class A (a) | 4,581,058 | 50,071 | |
Jounce Therapeutics, Inc. (a) | 91,572 | 407 | |
Kaleido Biosciences, Inc. (a)(b) | 502,191 | 7,874 | |
Kaleido Biosciences, Inc. | 364,869 | 5,435 | |
Kiniksa Pharmaceuticals Ltd. | 304,279 | 4,640 | |
Lexicon Pharmaceuticals, Inc. (a)(b)(e) | 6,272,463 | 33,746 | |
Macrogenics, Inc. (a) | 403,378 | 7,398 | |
Mirati Therapeutics, Inc. (a) | 260,677 | 17,671 | |
Moderna, Inc. (b) | 679,751 | 14,125 | |
Moderna, Inc. | 5,170,469 | 106,368 | |
Momenta Pharmaceuticals, Inc. (a)(e) | 6,290,448 | 73,158 | |
Neon Therapeutics, Inc. | 889,854 | 4,342 | |
Principia Biopharma, Inc. | 182,507 | 5,340 | |
Protagonist Therapeutics, Inc. (a) | 775,622 | 7,803 | |
Prothena Corp. PLC (a) | 1,333,782 | 12,431 | |
Regeneron Pharmaceuticals, Inc. (a) | 608,705 | 183,658 | |
Rigel Pharmaceuticals, Inc. (a)(e) | 11,506,829 | 24,510 | |
Rubius Therapeutics, Inc. | 1,628,322 | 23,546 | |
Sage Therapeutics, Inc. (a) | 2,371,346 | 407,563 | |
Sarepta Therapeutics, Inc. (a) | 236,681 | 26,946 | |
Scholar Rock Holding Corp. | 733,661 | 13,455 | |
Seres Therapeutics, Inc. (a)(e) | 2,081,055 | 7,096 | |
Sienna Biopharmaceuticals, Inc. (a)(e) | 2,146,992 | 2,512 | |
Synthorx, Inc. | 420,651 | 6,036 | |
Syros Pharmaceuticals, Inc. (a)(e) | 1,316,930 | 7,770 | |
Syros Pharmaceuticals, Inc. (a)(e)(f) | 938,007 | 5,534 | |
Syros Pharmaceuticals, Inc. warrants 10/10/22 (a)(d) | 125,000 | 188 | |
Translate Bio, Inc. (e) | 671,334 | 7,036 | |
Translate Bio, Inc. (e)(f) | 1,993,527 | 20,892 | |
Ultragenyx Pharmaceutical, Inc. (a) | 614,324 | 33,745 | |
uniQure B.V. (a) | 895,170 | 53,093 | |
UNITY Biotechnology, Inc. (b)(e) | 2,300,241 | 18,770 | |
Vertex Pharmaceuticals, Inc. (a) | 452,433 | 75,185 | |
Wuxi Biologics (Cayman), Inc. (a)(f) | 4,045,000 | 38,234 | |
Xencor, Inc. (a) | 1,226,329 | 37,820 | |
Zai Lab Ltd. ADR (a) | 2,125,869 | 55,719 | |
4,599,179 | |||
Health Care Equipment & Supplies - 3.2% | |||
Abbott Laboratories | 723,101 | 55,050 | |
Align Technology, Inc. (a) | 79,886 | 22,716 | |
Boston Scientific Corp. (a) | 2,069,286 | 79,481 | |
Danaher Corp. | 1,387,600 | 183,177 | |
DexCom, Inc. (a) | 892,501 | 108,260 | |
Genmark Diagnostics, Inc. (a) | 1,430,574 | 9,571 | |
Insulet Corp. (a) | 1,903,214 | 208,954 | |
Intuitive Surgical, Inc. (a) | 480,586 | 223,400 | |
Novocure Ltd. (a) | 3,680,327 | 195,499 | |
Novocure Ltd. (a)(f) | 571,461 | 30,356 | |
Penumbra, Inc. (a) | 1,001,023 | 142,846 | |
Presbia PLC (a)(e) | 1,245,345 | 131 | |
Shockwave Medical, Inc. (a)(b) | 405,125 | 24,222 | |
Shockwave Medical, Inc. | 443,695 | 23,876 | |
Wright Medical Group NV (a) | 447,615 | 13,751 | |
1,321,290 | |||
Health Care Providers & Services - 0.9% | |||
Centene Corp. (a) | 386,949 | 22,346 | |
G1 Therapeutics, Inc. (a) | 336,603 | 7,055 | |
Humana, Inc. | 60,177 | 14,735 | |
Laboratory Corp. of America Holdings (a) | 69,317 | 11,272 | |
Notre Dame Intermedica Participacoes SA | 1,511,700 | 15,795 | |
OptiNose, Inc. (a)(b)(e) | 1,571,437 | 11,927 | |
OptiNose, Inc. (a)(e)(f) | 992,571 | 7,534 | |
UnitedHealth Group, Inc. | 1,251,195 | 302,539 | |
393,203 | |||
Health Care Technology - 0.1% | |||
Castlight Health, Inc. Class B (a) | 2,062,270 | 6,744 | |
Teladoc Health, Inc. (a)(b) | 360,652 | 20,961 | |
27,705 | |||
Life Sciences Tools & Services - 0.2% | |||
Illumina, Inc. (a) | 47,906 | 14,703 | |
Thermo Fisher Scientific, Inc. | 207,428 | 55,379 | |
70,082 | |||
Pharmaceuticals - 1.8% | |||
Adimab LLC (a)(c)(d)(g) | 3,162,765 | 141,123 | |
Akcea Therapeutics, Inc. (a)(b)(e) | 5,592,606 | 117,668 | |
Bristol-Myers Squibb Co. | 832,935 | 37,790 | |
Cyclerion Therapeutics, Inc. (a) | 459,345 | 6,408 | |
Cyclerion Therapeutics, Inc. (c) | 543,695 | 7,585 | |
Hookipa Pharma, Inc. | 149,148 | 1,280 | |
InflaRx NV (a) | 166,758 | 6,002 | |
Intra-Cellular Therapies, Inc. (a)(e) | 3,701,544 | 48,083 | |
Jiangsu Hengrui Medicine Co. Ltd. (A Shares) | 214,320 | 1,929 | |
MyoKardia, Inc. (a) | 1,797,357 | 83,721 | |
Nektar Therapeutics (a) | 5,683,780 | 178,016 | |
Rhythm Pharmaceuticals, Inc. (a) | 408,930 | 10,301 | |
RPI International Holdings LP (a)(c)(d) | 130,847 | 19,970 | |
Stemcentrx, Inc. rights 12/31/21 (a)(d) | 2,065,715 | 2,520 | |
The Medicines Company (a) | 2,142,990 | 76,398 | |
Theravance Biopharma, Inc. (a) | 1,542,376 | 25,634 | |
Turning Point Therapeutics, Inc. | 252,773 | 8,802 | |
773,230 | |||
TOTAL HEALTH CARE | 7,184,689 | ||
INDUSTRIALS - 4.9% | |||
Aerospace & Defense - 1.1% | |||
Lockheed Martin Corp. | 96,870 | 32,794 | |
Space Exploration Technologies Corp. Class A (a)(c)(d) | 418,210 | 85,315 | |
The Boeing Co. | 828,127 | 282,896 | |
United Technologies Corp. | 415,548 | 52,484 | |
453,489 | |||
Air Freight & Logistics - 0.2% | |||
FedEx Corp. | 81,361 | 12,552 | |
United Parcel Service, Inc. Class B | 648,558 | 60,264 | |
72,816 | |||
Airlines - 1.0% | |||
Azul SA sponsored ADR (a) | 433,577 | 12,908 | |
Delta Air Lines, Inc. | 622,038 | 32,035 | |
JetBlue Airways Corp.(a) | 4,164,150 | 71,748 | |
Ryanair Holdings PLC sponsored ADR (a) | 449,943 | 29,345 | |
Southwest Airlines Co. | 1,477,866 | 70,346 | |
Spirit Airlines, Inc. (a) | 402,845 | 18,563 | |
United Continental Holdings, Inc. (a) | 548,905 | 42,622 | |
Wheels Up Partners Holdings LLC: | |||
Series B (a)(c)(d)(g) | 6,703,518 | 23,328 | |
Series C (a)(c)(d)(g) | 3,466,281 | 12,063 | |
Series D (a)(c)(d)(g) | 2,655,848 | 9,242 | |
Wizz Air Holdings PLC (a)(f) | 2,683,084 | 106,308 | |
428,508 | |||
Building Products - 0.1% | |||
Resideo Technologies, Inc. (a) | 2,111,373 | 41,552 | |
Electrical Equipment - 0.3% | |||
AMETEK, Inc. | 22,937 | 1,878 | |
Eaton Corp. PLC | 267,652 | 19,937 | |
Emerson Electric Co. | 441,657 | 26,605 | |
Fortive Corp. | 769,564 | 58,602 | |
107,022 | |||
Industrial Conglomerates - 0.7% | |||
3M Co. | 372,560 | 59,516 | |
Honeywell International, Inc. | 1,349,544 | 221,744 | |
281,260 | |||
Machinery - 0.5% | |||
Caterpillar, Inc. | 211,530 | 25,343 | |
Deere & Co. | 338,373 | 47,430 | |
Illinois Tool Works, Inc. | 271,987 | 37,980 | |
Ingersoll-Rand PLC | 116,121 | 13,742 | |
Xylem, Inc. | 1,151,578 | 85,470 | |
209,965 | |||
Professional Services - 0.0% | |||
CoStar Group, Inc. (a) | 25,264 | 12,876 | |
Road & Rail - 1.0% | |||
Lyft, Inc. (b) | 16,609 | 957 | |
Lyft, Inc. | 772,439 | 40,057 | |
Uber Technologies, Inc. | 4,979,396 | 181,096 | |
Union Pacific Corp. | 1,158,368 | 193,193 | |
415,303 | |||
TOTAL INDUSTRIALS | 2,022,791 | ||
INFORMATION TECHNOLOGY - 33.7% | |||
Communications Equipment - 0.3% | |||
Arista Networks, Inc. (a) | 144,524 | 35,349 | |
Cisco Systems, Inc. | 270,100 | 14,053 | |
Infinera Corp. (a)(e) | 13,110,626 | 40,774 | |
NETGEAR, Inc. (a) | 1,269,688 | 31,996 | |
122,172 | |||
Electronic Equipment & Components - 0.2% | |||
Arlo Technologies, Inc. (e) | 5,455,805 | 18,713 | |
TE Connectivity Ltd. | 82,203 | 6,924 | |
Trimble, Inc. (a) | 1,628,915 | 64,994 | |
90,631 | |||
Internet Software & Services - 0.1% | |||
Farfetch Ltd. Class A | 988,424 | 19,818 | |
IT Services - 7.4% | |||
Actua Corp. (a)(d)(e) | 1,740,337 | 2,854 | |
Adyen BV (f) | 7,500 | 6,039 | |
Cognizant Technology Solutions Corp. Class A | 462,446 | 28,639 | |
Elastic NV (b) | 210,043 | 17,234 | |
Fastly, Inc. Class A | 90,500 | 1,882 | |
IBM Corp. | 77,099 | 9,791 | |
MasterCard, Inc. Class A | 2,086,759 | 524,799 | |
MongoDB, Inc. (a) | 956,702 | 134,264 | |
MongoDB, Inc. Class A (a) | 41,346 | 5,802 | |
Okta, Inc. (a) | 340,956 | 38,603 | |
PayPal Holdings, Inc. (a) | 5,175,784 | 568,042 | |
Shopify, Inc. Class A (a) | 3,200,796 | 880,574 | |
Square, Inc. (a) | 2,884,605 | 178,701 | |
Visa, Inc. Class A | 3,725,894 | 601,098 | |
Wix.com Ltd. (a) | 502,727 | 69,045 | |
3,067,367 | |||
Semiconductors & Semiconductor Equipment - 7.0% | |||
Advanced Micro Devices, Inc. (a) | 9,717,752 | 266,364 | |
Applied Materials, Inc. | 927,694 | 35,892 | |
ASML Holding NV | 325,883 | 61,282 | |
Broadcom, Inc. | 215,022 | 54,108 | |
Cirrus Logic, Inc. (a) | 506,786 | 18,939 | |
Cree, Inc. (a) | 1,072,216 | 59,122 | |
Intel Corp. | 73,363 | 3,231 | |
KLA-Tencor Corp. | 215,785 | 22,241 | |
Marvell Technology Group Ltd. | 1,778,251 | 39,655 | |
Micron Technology, Inc. (a) | 1,321,379 | 43,090 | |
NVIDIA Corp. | 12,389,766 | 1,678,318 | |
Qualcomm, Inc. | 981,456 | 65,581 | |
Silicon Laboratories, Inc. (a)(e) | 3,231,768 | 302,397 | |
Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR | 1,125,323 | 43,156 | |
Texas Instruments, Inc. | 1,485,310 | 154,933 | |
Xilinx, Inc. | 486,406 | 49,764 | |
2,898,073 | |||
Software - 13.8% | |||
2U, Inc. (a) | 689,010 | 26,175 | |
Adobe, Inc. (a) | 1,531,042 | 414,759 | |
Aspen Technology, Inc. (a) | 196,611 | 22,337 | |
Atlassian Corp. PLC (a) | 416,651 | 52,448 | |
Autodesk, Inc. (a) | 1,523,501 | 245,147 | |
Avalara, Inc. | 59,610 | 4,032 | |
Black Knight, Inc. (a) | 491,252 | 27,849 | |
Cadence Design Systems, Inc. (a) | 275,548 | 17,517 | |
Coupa Software, Inc. (a) | 429,799 | 46,938 | |
CyberArk Software Ltd. (a) | 122,225 | 16,140 | |
DocuSign, Inc. (a) | 60,021 | 3,365 | |
Domo, Inc. (f) | 199,393 | 6,680 | |
HubSpot, Inc. (a) | 1,550,364 | 268,647 | |
Intuit, Inc. | 497,872 | 121,904 | |
Microsoft Corp. | 12,654,018 | 1,565,049 | |
New Relic, Inc. (a) | 214,917 | 21,560 | |
Nutanix, Inc.: | |||
Class A (a) | 9,017,508 | 253,121 | |
Class B (a)(f) | 1,151,309 | 32,317 | |
Oracle Corp. | 939,601 | 47,544 | |
Pagerduty, Inc. | 69,802 | 3,588 | |
Parametric Technology Corp. (a) | 1,787,072 | 150,221 | |
Paylocity Holding Corp. (a) | 117,209 | 11,747 | |
Pluralsight, Inc. | 230,905 | 7,357 | |
Proofpoint, Inc. (a) | 425,495 | 47,809 | |
Q2 Holdings, Inc. (a) | 457,008 | 33,471 | |
Red Hat, Inc. (a) | 2,282,469 | 420,659 | |
RingCentral, Inc. (a) | 54,594 | 6,543 | |
Salesforce.com, Inc. (a) | 9,746,512 | 1,475,719 | |
Sciplay Corp. (A Shares) | 538,900 | 8,622 | |
Smartsheet, Inc. (a) | 403,239 | 17,331 | |
Tenable Holdings, Inc. | 77,923 | 2,170 | |
Zendesk, Inc. (a) | 2,002,406 | 168,703 | |
Zoom Video Communications, Inc. Class A (b) | 61,296 | 4,887 | |
Zscaler, Inc. (a) | 2,752,011 | 188,871 | |
5,741,227 | |||
Technology Hardware, Storage & Peripherals - 4.9% | |||
Apple, Inc. | 10,439,850 | 1,827,705 | |
NetApp, Inc. | 318,447 | 18,852 | |
Pure Storage, Inc. Class A (a) | 8,713,079 | 138,189 | |
Samsung Electronics Co. Ltd. | 885,615 | 31,666 | |
2,016,412 | |||
TOTAL INFORMATION TECHNOLOGY | 13,955,700 | ||
MATERIALS - 0.3% | |||
Chemicals - 0.2% | |||
CF Industries Holdings, Inc. | 1,268,730 | 51,054 | |
Dow, Inc. (a) | 192,824 | 9,016 | |
DowDuPont, Inc. | 578,474 | 17,655 | |
LG Chemical Ltd. | 9,697 | 2,717 | |
The Mosaic Co. | 245,946 | 5,280 | |
85,722 | |||
Metals & Mining - 0.1% | |||
Barrick Gold Corp. (Canada) | 1,594,100 | 19,826 | |
TOTAL MATERIALS | 105,548 | ||
REAL ESTATE - 0.4% | |||
Equity Real Estate Investment Trusts (REITs) - 0.4% | |||
American Tower Corp. | 668,801 | 139,626 | |
Ant International Co. Ltd. Class C (c)(d) | 1,658,265 | 10,364 | |
149,990 | |||
UTILITIES - 0.0% | |||
Electric Utilities - 0.0% | |||
DONG Energy A/S (f) | 191,500 | 15,263 | |
TOTAL COMMON STOCKS | |||
(Cost $18,747,662) | 40,601,547 | ||
Preferred Stocks - 1.8% | |||
Convertible Preferred Stocks - 1.5% | |||
COMMUNICATION SERVICES - 0.0% | |||
Wireless Telecommunication Services - 0.0% | |||
Altiostar Networks, Inc. Series A1 (a)(c)(d) | 699,106 | 895 | |
CONSUMER DISCRETIONARY - 0.3% | |||
Hotels, Restaurants & Leisure - 0.1% | |||
MOD Super Fast Pizza Holdings LLC: | |||
Series 3(a)(c)(d)(g) | 56,343 | 8,030 | |
Series 4 (a)(c)(d)(g) | 5,142 | 733 | |
Series 5 (a)(c)(d)(g) | 20,652 | 2,943 | |
Neutron Holdings, Inc. Series D (c)(d) | 17,893,728 | 4,339 | |
Topgolf International, Inc. Series F (a)(c)(d) | 819,532 | 11,777 | |
27,822 | |||
Internet & Direct Marketing Retail - 0.1% | |||
Reddit, Inc. Series B (a)(c)(d) | 384,303 | 8,334 | |
The Honest Co., Inc.: | |||
Series C (a)(c)(d) | 92,950 | 3,593 | |
Series D (a)(c)(d) | 69,363 | 3,174 | |
15,101 | |||
Leisure Products - 0.1% | |||
Peloton Interactive, Inc. Series E (a)(c)(d) | 2,549,928 | 54,262 | |
Textiles, Apparel & Luxury Goods - 0.0% | |||
Allbirds, Inc.: | |||
Series A (c)(d) | 24,267 | 1,279 | |
Series B (c)(d) | 4,263 | 225 | |
Series C (c)(d) | 40,746 | 2,148 | |
ORIC Pharmaceuticals, Inc. Series C (a)(c)(d) | 1,416,666 | 4,222 | |
7,874 | |||
TOTAL CONSUMER DISCRETIONARY | 105,059 | ||
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 | 5,683 | |
Tobacco - 0.0% | |||
JUUL Labs, Inc. Series E (c)(d) | 22,033 | 6,026 | |
TOTAL CONSUMER STAPLES | 20,906 | ||
FINANCIALS - 0.0% | |||
Insurance - 0.0% | |||
Clover Health Series D (a)(c)(d) | 863,631 | 8,099 | |
HEALTH CARE - 0.7% | |||
Biotechnology - 0.5% | |||
10X Genomics, Inc.: | |||
Series C (a)(c)(d) | 2,505,940 | 38,591 | |
Series D (a)(c)(d) | 364,100 | 5,607 | |
23andMe, Inc. Series F (a)(c)(d) | 590,383 | 7,315 | |
BioNTech AG Series A (a)(c)(d) | 114,025 | 36,909 | |
Fulcrum Therapeutics, Inc. Series B (c)(d) | 2,308,437 | 4,340 | |
Generation Bio Series B (a)(c)(d) | 831,800 | 7,561 | |
Immunocore Ltd. Series A (a)(c)(d) | 67,323 | 8,287 | |
Intarcia Therapeutics, Inc.: | |||
Series CC (a)(c)(d) | 1,051,411 | 42,519 | |
Series DD (a)(c)(d) | 1,543,687 | 62,427 | |
213,556 | |||
Health Care Providers & Services - 0.0% | |||
Mulberry Health, Inc. Series A8 (a)(c)(d) | 2,790,742 | 19,942 | |
Health Care Technology - 0.1% | |||
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% (a)(c)(d) | 2,688,186 | 9,758 | |
Karuna Therapeutics, Inc. Series B (c) | 281,534 | 5,265 | |
24,123 | |||
Pharmaceuticals - 0.1% | |||
Allovir, Inc. Series B (c)(d) | 1,225,771 | 9,990 | |
Castle Creek Pharmaceutical Holdings, Inc. Series B (c)(d) | 16,803 | 7,069 | |
Harmony Biosciences II, Inc. Series A (a)(c)(d) | 10,934,380 | 10,934 | |
Nohla Therapeutics, Inc. Series B (a)(c)(d) | 9,124,200 | 0 | |
27,993 | |||
TOTAL HEALTH CARE | 285,614 | ||
INDUSTRIALS - 0.2% | |||
Aerospace & Defense - 0.1% | |||
Space Exploration Technologies Corp. Series G (a)(c)(d) | 216,276 | 44,120 | |
Professional Services - 0.1% | |||
YourPeople, Inc. Series C (a)(c)(d) | 5,833,137 | 20,124 | |
TOTAL INDUSTRIALS | 64,244 | ||
INFORMATION TECHNOLOGY - 0.3% | |||
Internet Software & Services - 0.0% | |||
Starry, Inc.: | |||
Series B (a)(c)(d) | 9,869,159 | 14,113 | |
Series C (a)(c)(d) | 5,234,614 | 7,485 | |
Series D (c)(d) | 5,078,764 | 7,263 | |
28,861 | |||
IT Services - 0.0% | |||
AppNexus, Inc. Series E (Escrow) (a)(c)(d) | 923,523 | 891 | |
Software - 0.3% | |||
Bird Rides, Inc. Series C (c)(d) | 348,328 | 4,091 | |
Cloudflare, Inc. Series D, 8.00% (a)(c)(d) | 2,229,826 | 30,303 | |
Dataminr, Inc. Series D (a)(c)(d) | 1,773,901 | 40,001 | |
Jet.Com, Inc. Series B1 (Escrow) (a)(c)(d) | 7,578,338 | 344 | |
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 | 31,563 | |
114,919 | |||
TOTAL INFORMATION TECHNOLOGY | 144,671 | ||
REAL ESTATE - 0.0% | |||
Real Estate Management & Development - 0.0% | |||
Sonder Canada, Inc. Series D (c)(d) | 965,896 | 10,138 | |
TOTAL CONVERTIBLE PREFERRED STOCKS | 639,626 | ||
Nonconvertible Preferred Stocks - 0.3% | |||
CONSUMER DISCRETIONARY - 0.0% | |||
Textiles, Apparel & Luxury Goods - 0.0% | |||
Allbirds, Inc. (c)(d) | 13,038 | 687 | |
ENERGY - 0.1% | |||
Oil, Gas & Consumable Fuels - 0.1% | |||
Petroleo Brasileiro SA - Petrobras (PN) sponsored ADR (non-vtg.) | 4,416,739 | 57,329 | |
FINANCIALS - 0.1% | |||
Banks - 0.1% | |||
Itau Unibanco Holding SA | 2,520,600 | 22,483 | |
HEALTH CARE - 0.1% | |||
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 - 0.1% | |||
Castle Creek Pharmaceutical Holdings, Inc. Series A4 (c)(d) | 46,864 | 19,715 | |
TOTAL HEALTH CARE | 24,993 | ||
TOTAL NONCONVERTIBLE PREFERRED STOCKS | 105,492 | ||
TOTAL PREFERRED STOCKS | |||
(Cost $601,284) | 745,118 | ||
Principal Amount (000s) | Value (000s) | ||
Preferred Securities - 0.0% | |||
HEALTH CARE - 0.0% | |||
Biotechnology - 0.0% | |||
Intarcia Therapeutics, Inc. 6% 7/18/21(c)(d) | |||
(Cost $13,682) | 13,682 | 13,899 | |
Shares | Value (000s) | ||
Money Market Funds - 1.4% | |||
Fidelity Cash Central Fund 2.41% (h) | 69,012,971 | 69,027 | |
Fidelity Securities Lending Cash Central Fund 2.42% (h)(i) | 513,799,609 | 513,851 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $582,869) | 582,878 | ||
TOTAL INVESTMENT IN SECURITIES - 101.2% | |||
(Cost $19,945,497) | 41,943,442 | ||
NET OTHER ASSETS (LIABILITIES) - (1.2)% | (491,001) | ||
NET ASSETS - 100% | $41,452,441 |
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 $1,087,620,000 or 2.6% of net assets.
(d) Level 3 security
(e) Affiliated company
(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 $314,498,000 or 0.8% of net assets.
(g) Investment is owned by a wholly-owned subsidiary (Subsidiary) that is treated as a corporation for U.S. tax purposes.
(h) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
(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 |
Allovir, Inc. Series B | 5/8/19 | $9,990 |
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 |
BioNTech AG Series A | 12/29/17 | $24,972 |
Bird Rides, Inc. Series C | 12/21/18 | $4,091 |
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 Corp. Series C | 2/16/18 | $9,500 |
Cibus Corp. Series D | 5/10/19 | $3,426 |
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 |
Cyclerion Therapeutics, Inc. | 4/2/19 | $8,052 |
Dataminr, Inc. Series D | 2/18/15 - 3/6/15 | $22,617 |
Fulcrum Therapeutics, Inc. Series B | 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 |
Intarcia Therapeutics, Inc. 6% 7/18/21 | 2/26/19 | $13,682 |
Jet.Com, Inc. Series B1 (Escrow) | 3/19/18 | $0 |
JUUL Labs, Inc. Class A | 7/6/18 | $1,299 |
JUUL Labs, Inc. Series E | 7/6/18 | $650 |
Karuna Therapeutics, Inc. Series B | 3/15/19 | $4,262 |
MOD Super Fast Pizza Holdings LLC Series 3 | 11/3/16 | $7,719 |
MOD Super Fast Pizza Holdings LLC Series 4 | 12/14/17 | $720 |
MOD Super Fast Pizza Holdings LLC Series 5 | 5/15/19 | $2,943 |
Mulberry Health, Inc. Series A8 | 1/20/16 | $18,851 |
Neutron Holdings, Inc. Series D | 1/25/19 | $4,339 |
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 |
Sonder Canada, Inc. Series D | 5/21/19 | $10,138 |
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 |
Starry, Inc. Series D | 3/6/19 | $7,263 |
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 |
Wheels Up Partners Holdings LLC Series B | 9/18/15 | $19,040 |
Wheels Up Partners Holdings LLC Series C | 6/22/17 | $10,815 |
Wheels Up Partners Holdings LLC Series D | 5/16/19 | $9,242 |
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 | $788 |
Fidelity Securities Lending Cash Central Fund | 6,917 |
Total | $7,705 |
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable.
Other Affiliated Issuers
An affiliated company is a company in which the Fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows:
Affiliate | Value, beginning of period | Purchases | Sales Proceeds(a) | Dividend Income | Realized Gain (loss) | Change in Unrealized appreciation (depreciation) | Value, end of period |
ACADIA Pharmaceuticals, Inc. | $138,324 | $2,609 | $2,781 | $-- | $2,176 | $32,847 | $173,175 |
Actua Corp. | 1,135 | -- | 21 | -- | 21 | 1,719 | 2,854 |
Akcea Therapeutics, Inc. | 177,899 | 19,794 | 8,667 | -- | 1,571 | (72,929) | 117,668 |
Alkermes PLC | 291,143 | -- | 130,358 | -- | (15,634) | (60,828) | -- |
Alnylam Pharmaceuticals, Inc. | 411,703 | 30,537 | 7,800 | -- | 4,480 | (77,497) | 361,423 |
Arlo Technologies, Inc. | 43,020 | 68 | 16,423 | -- | (34,998) | (26,915) | 18,713 |
aTyr Pharma, Inc. | 1,353 | -- | 21 | -- | (186) | (215) | -- |
Calyxt, Inc. | 19,399 | -- | 403 | -- | 150 | 1,839 | 20,985 |
Evelo Biosciences, Inc. | 6,669 | 424 | 134 | -- | 23 | (1,670) | 5,312 |
Evelo Biosciences, Inc. | 9,020 | -- | -- | -- | -- | (2,219) | 6,801 |
Infinera Corp. | 56,075 | 1,514 | 1,049 | -- | (43) | (15,723) | 40,774 |
Intra-Cellular Therapies, Inc. | 54,509 | -- | 859 | -- | (237) | (5,330) | 48,083 |
Ionis Pharmaceuticals, Inc. | 465,471 | 46,506 | 9,735 | -- | 7,182 | 47,581 | 557,005 |
Lexicon Pharmaceuticals, Inc. | 53,573 | 1,155 | 2,943 | -- | (3,220) | (14,819) | 33,746 |
lululemon athletica, Inc. | 959,027 | 5,111 | 23,036 | -- | 17,314 | 218,877 | 1,177,293 |
Momenta Pharmaceuticals, Inc. | 60,109 | 15,256 | 1,436 | -- | 145 | (916) | 73,158 |
NETGEAR, Inc. | 130,806 | 512 | 37,428 | -- | (8,412) | 480 | -- |
OptiNose, Inc. | 10,454 | 2,185 | 242 | -- | 2 | (472) | 11,927 |
OptiNose, Inc. | 7,812 | -- | -- | -- | -- | (278) | 7,534 |
Presbia PLC | 888 | 7 | 11 | -- | (55) | (698) | 131 |
Rigel Pharmaceuticals, Inc. | 32,270 | 796 | 503 | -- | 67 | (8,120) | 24,510 |
Seres Therapeutics, Inc. | 12,834 | -- | 165 | -- | (34) | (12,506) | 7,096 |
Seres Therapeutics, Inc. | 4,783 | -- | -- | -- | -- | 2,184 | -- |
Sienna Biopharmaceuticals, Inc. | 8,483 | 2,415 | 55 | -- | (37) | (15,196) | 2,512 |
Sienna Biopharmaceuticals, Inc. | 5,702 | -- | -- | -- | -- | 1,200 | -- |
Silicon Laboratories, Inc. | 279,754 | 14,265 | 7,804 | -- | 2,151 | 14,031 | 302,397 |
Syros Pharmaceuticals, Inc. | 8,321 | 4,541 | 3,134 | -- | (3,698) | 1,740 | 7,770 |
Syros Pharmaceuticals, Inc. | 6,388 | -- | -- | -- | -- | (854) | 5,534 |
Translate Bio, Inc. | 3,037 | 2,363 | 73 | -- | 24 | 1,685 | 7,036 |
Translate Bio, Inc. | 13,693 | -- | -- | -- | -- | 4,268 | -- |
Translate Bio, Inc. | -- | -- | -- | -- | -- | 2,931 | 20,892 |
UNITY Biotechnology, Inc. | 15,350 | -- | -- | -- | -- | 543 | -- |
UNITY Biotechnology, Inc. | 8,762 | 5,988 | 226 | -- | 32 | (11,679) | 18,770 |
$3,297,766 | $156,046 | $255,307 | $-- | $(31,216) | $3,061 | $3,053,099 |
(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 May 31, 2019, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
(Amounts in thousands) | ||||
Investments in Securities: | ||||
Equities: | ||||
Communication Services | $5,551,072 | $5,478,138 | $71,384 | $1,550 |
Consumer Discretionary | 8,618,000 | 8,436,579 | -- | 181,421 |
Consumer Staples | 1,830,255 | 1,753,072 | 44,225 | 32,958 |
Energy | 606,354 | 606,354 | -- | -- |
Financials | 777,343 | 769,244 | -- | 8,099 |
Health Care | 7,495,296 | 6,867,868 | 147,243 | 480,185 |
Industrials | 2,087,035 | 1,671,690 | 221,153 | 194,192 |
Information Technology | 14,100,371 | 13,952,846 | -- | 147,525 |
Materials | 105,548 | 105,548 | -- | -- |
Real Estate | 160,128 | 139,626 | -- | 20,502 |
Utilities | 15,263 | 15,263 | -- | -- |
Preferred Securities | 13,899 | -- | -- | 13,899 |
Money Market Funds | 582,878 | 582,878 | -- | -- |
Total Investments in Securities: | $41,943,442 | $40,379,106 | $484,005 | $1,080,331 |
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 | $589,961 |
Net Realized Gain (Loss) on Investment Securities | (1,304) |
Net Unrealized Gain (Loss) on Investment Securities | (48,988) |
Cost of Purchases | 13,494 |
Proceeds of Sales | (72,978) |
Amortization/Accretion | -- |
Transfers into Level 3 | -- |
Transfers out of Level 3 | -- |
Ending Balance | $480,185 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at May 31, 2019 | $7,273 |
Other Investments in Securities | |
Beginning Balance | $740,119 |
Net Realized Gain (Loss) on Investment Securities | 38 |
Net Unrealized Gain (Loss) on Investment Securities | (63,337) |
Cost of Purchases | 53,692 |
Proceeds of Sales | (130,366) |
Amortization/Accretion | -- |
Transfers into Level 3 | -- |
Transfers out of Level 3 | -- |
Ending Balance | $600,146 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at May 31, 2019 | $103,875 |
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 affiliated 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) | May 31, 2019 (Unaudited) | |
Assets | ||
Investment in securities, at value (including securities loaned of $493,995) — See accompanying schedule: Unaffiliated issuers (cost $17,222,029) | $38,307,465 | |
Fidelity Central Funds (cost $582,869) | 582,878 | |
Other affiliated issuers (cost $2,140,599) | 3,053,099 | |
Total Investment in Securities (cost $19,945,497) | $41,943,442 | |
Cash | 738 | |
Restricted cash | 141 | |
Foreign currency held at value (cost $139) | 139 | |
Receivable for investments sold | 53,426 | |
Receivable for fund shares sold | 33,097 | |
Dividends receivable | 26,223 | |
Distributions receivable from Fidelity Central Funds | 1,566 | |
Prepaid expenses | 11 | |
Other receivables | 2,232 | |
Total assets | 42,061,015 | |
Liabilities | ||
Payable for investments purchased | $38,332 | |
Payable for fund shares redeemed | 23,450 | |
Accrued management fee | 26,164 | |
Other affiliated payables | 3,861 | |
Other payables and accrued expenses | 2,938 | |
Collateral on securities loaned | 513,829 | |
Total liabilities | 608,574 | |
Net Assets | $41,452,441 | |
Net Assets consist of: | ||
Paid in capital | $18,743,441 | |
Total distributable earnings (loss) | 22,709,000 | |
Net Assets | $41,452,441 | |
Net Asset Value and Maximum Offering Price | ||
Growth Company: | ||
Net Asset Value, offering price and redemption price per share ($26,708,100 ÷ 1,458,244 shares) | $18.32 | |
Class K: | ||
Net Asset Value, offering price and redemption price per share ($14,744,341 ÷ 804,173 shares) | $18.33 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Amounts in thousands | Six months ended May 31, 2019 (Unaudited) | |
Investment Income | ||
Dividends | $129,447 | |
Income from Fidelity Central Funds (including $6,917 from security lending) | 7,705 | |
Total income | 137,152 | |
Expenses | ||
Management fee | ||
Basic fee | $112,516 | |
Performance adjustment | 35,131 | |
Transfer agent fees | 20,879 | |
Accounting and security lending fees | 1,180 | |
Custodian fees and expenses | 281 | |
Independent trustees' fees and expenses | 113 | |
Registration fees | 341 | |
Audit | 67 | |
Legal | 49 | |
Interest | 26 | |
Miscellaneous | 163 | |
Total expenses before reductions | 170,746 | |
Expense reductions | (336) | |
Total expenses after reductions | 170,410 | |
Net investment income (loss) | (33,258) | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 1,015,337 | |
Fidelity Central Funds | (8) | |
Other affiliated issuers | (31,216) | |
Foreign currency transactions | (225) | |
Total net realized gain (loss) | 983,888 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers (net of increase in deferred foreign taxes of $771) | 577,932 | |
Other affiliated issuers | 3,061 | |
Assets and liabilities in foreign currencies | (19) | |
Total change in net unrealized appreciation (depreciation) | 580,974 | |
Net gain (loss) | 1,564,862 | |
Net increase (decrease) in net assets resulting from operations | $1,531,604 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Amounts in thousands | Six months ended May 31, 2019 (Unaudited) | Year ended November 30, 2018 |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $(33,258) | $(14,309) |
Net realized gain (loss) | 983,888 | 3,644,929 |
Change in net unrealized appreciation (depreciation) | 580,974 | (988,735) |
Net increase (decrease) in net assets resulting from operations | 1,531,604 | 2,641,885 |
Distributions to shareholders | (2,255,301) | (1,899,438) |
Share transactions - net increase (decrease) | 1,092,997 | (1,331,921) |
Total increase (decrease) in net assets | 369,300 | (589,474) |
Net Assets | ||
Beginning of period | 41,083,141 | 41,672,615 |
End of period | $41,452,441 | $41,083,141 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Growth Company Fund
Six months ended (Unaudited) May 31, | Years endedNovember 30, | |||||
2019 | 2018A | 2017A | 2016A | 2015A | 2014A | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $18.79 | $18.53 | $14.28 | $14.35 | $13.65 | $12.47 |
Income from Investment Operations | ||||||
Net investment income (loss)B | (.02) | (.01)C | (.01) | .01 | – | .02 |
Net realized and unrealized gain (loss) | .57 | 1.12 | 5.08 | .47 | 1.17 | 2.05 |
Total from investment operations | .55 | 1.11 | 5.07 | .48 | 1.17 | 2.07 |
Distributions from net investment income | – | – | (.01) | – | (.01) | (.02) |
Distributions from net realized gain | (1.02) | (.85) | (.81) | (.55) | (.46) | (.87) |
Total distributions | (1.02) | (.85) | (.82) | (.55) | (.47) | (.89) |
Net asset value, end of period | $18.32 | $18.79 | $18.53 | $14.28 | $14.35 | $13.65 |
Total ReturnD,E | 3.81% | 6.19% | 37.34% | 3.48% | 8.90% | 17.80% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | .85%H | .85% | .85% | .77% | .88% | .82% |
Expenses net of fee waivers, if any | .85%H | .85% | .85% | .77% | .87% | .82% |
Expenses net of all reductions | .85%H | .85% | .85% | .77% | .87% | .82% |
Net investment income (loss) | (.19)%H | (.07)%C | (.04)% | .07% | (.01)% | .12% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $26,708 | $25,615 | $25,256 | $21,114 | $23,513 | $24,165 |
Portfolio turnover rateI | 17%H,J | 18%J | 15%J | 19%J | 18%J | 12%J |
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 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 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 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.
Fidelity Growth Company Fund Class K
Six months ended (Unaudited) May 31, | Years endedNovember 30, | |||||
2019 | 2018A | 2017A | 2016A | 2015A | 2014A | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $18.80 | $18.52 | $14.27 | $14.34 | $13.64 | $12.47 |
Income from Investment Operations | ||||||
Net investment income (loss)B | (.01) | –C,D | .01 | .02 | .01 | .03 |
Net realized and unrealized gain (loss) | .56 | 1.13 | 5.07 | .47 | 1.17 | 2.05 |
Total from investment operations | .55 | 1.13 | 5.08 | .49 | 1.18 | 2.08 |
Distributions from net investment income | – | –D | (.02) | (.01) | (.03) | (.04) |
Distributions from net realized gain | (1.02) | (.85) | (.81) | (.55) | (.45) | (.87) |
Total distributions | (1.02) | (.85) | (.83) | (.56) | (.48) | (.91) |
Net asset value, end of period | $18.33 | $18.80 | $18.52 | $14.27 | $14.34 | $13.64 |
Total ReturnE,F | 3.80% | 6.28% | 37.47% | 3.59% | 9.01% | 17.93% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | .76%I | .76% | .75% | .66% | .77% | .71% |
Expenses net of fee waivers, if any | .76%I | .76% | .75% | .66% | .77% | .71% |
Expenses net of all reductions | .76%I | .76% | .75% | .66% | .77% | .71% |
Net investment income (loss) | (.11)%I | .02%C | .06% | .17% | .09% | .24% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $14,744 | $15,468 | $16,416 | $14,739 | $17,587 | $18,242 |
Portfolio turnover rateJ | 17%I,K | 18%K | 15%K | 19%K | 18%K | 12%K |
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 for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
I Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
K Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended May 31, 2019
(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.
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 ranged from less than .005% to .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investments Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy. 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. Preferred securities are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
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 | $1,066,246 | Market comparable | Enterprise value/Sales multiple (EV/S) | 0.9 - 11.7 / 5.0 | Increase |
Transaction price | $1.00 - $411.85 / $197.90 | Increase | |||
Discount rate | 6.0% - 75.0% / 33.4% | Decrease | |||
Liquidity preference | $14.90 - $45.76 / $21.72 | Increase | |||
Premium rate | 6.9% - 15.5% / 8.2% | Increase | |||
Conversion ratio | 3.0 | Increase | |||
Proxy premium | 2.0% | Increase | |||
Proxy discount | 0.6% - 21.3% / 5.8% | Decrease | |||
Discount for lack of marketability | 10.0% - 15.0% / 14.7% | Decrease | |||
Recovery value | Recovery value | 0.0% - 1.6% / 1.3% | Increase | ||
Market approach | Transaction price | $0.24 - $277.00 / $85.02 | Increase | ||
Liquidity preference | $2.10 | Increase | |||
Conversion ratio | 1.6 | Increase | |||
Discount cash flow | Discount rate | 8.0% - 11.0% / 10.5% | Decrease | ||
Growth rate | 3.5% | Increase | |||
Probability rate | 6.3% | Increase | |||
Discount for lack of marketability | 10.0% | Decrease | |||
Preferred Securities | $13,899 | Market approach | Transaction price | $100.00 | Increase |
(a) Represents the directional change in the fair value of the Level 3 investments that could have resulted from an increase in the corresponding input as of period end. A decrease to the unobservable input would have had the opposite effect. Significant changes in these inputs may have resulted in a significantly higher or lower fair value measurement at period end.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of May 31, 2019, as well as a roll forward of Level 3 investments, is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Class Allocations and Expenses. Investment income, realized and unrealized capital gains and losses, common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated daily on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent fees incurred. Certain expense reductions may also differ by class. For the reporting period, the allocated portion of income and expenses to each class as a percent of its average net assets may vary due to the timing of recording these transactions in relation to fluctuating net assets of the classes. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan) for the Fund, certain independent Trustees have elected to defer receipt of a portion of their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees of $1,984 are included in the accompanying Statement of Assets and Liabilities in other receivables and other payables and accrued expenses, respectively.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests. The Fund is subject to a tax imposed on capital gains by certain countries in which it invests. An estimated deferred tax liability for net unrealized appreciation on the applicable securities is included in Other payables and accrued expenses on the Statement of Assets & Liabilities.
Distributions are declared and recorded on the ex-dividend date. Income and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
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 | $23,796,011 |
Gross unrealized depreciation | (2,022,302) |
Net unrealized appreciation (depreciation) | $21,773,709 |
Tax cost | $20,169,733 |
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 $280,632 in these Subsidiaries, representing .68% 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.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and in-kind transactions, aggregated $3,575,757 and $4,034,794, respectively.
Unaffiliated Redemptions In-Kind. During the period, 41,436 shares of the Fund were redeemed in-kind for investments and cash with a value of $724,911. The net realized gain of $507,556 on investments delivered through in-kind redemptions is included in the accompanying Statement of Operations. The amount of the in-kind redemptions is included in share transactions in the accompanying Statement of Changes in Net Assets, as well as the Notes to Financial Statements. The Fund recognized no gain or loss for federal income tax purposes.
Prior Fiscal Year Unaffiliated Redemptions In-Kind.
During the prior period, 93,489* shares of the Fund were redeemed in-kind for investments and cash with a value of $1,799,315. The Fund had a net realized gain of $1,264,532 on investments delivered through the in-kind redemptions. The amount of the redemptions is included in share transactions activity shown in the accompanying Statement of Changes in Net Assets as well as the Notes to Financial Statements. The Fund recognized no gain or loss for federal income tax purposes.
* 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 annualized 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(a) | |
Growth Company | $17,386 | .13 |
Class K | 3,493 | .05 |
$20,879 |
(a) Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Prior to April 1, 2019, FSC had a separate agreement with the Fund for administration of the security lending program, based on the number and duration of lending transactions. For the period, the total fees paid for accounting and administration of securities lending were equivalent to an annualized rate of .01%.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $108 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 | $50,567 | 2.65% | $26 |
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 $59 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 $36,357. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds, and includes $1,548 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 $170 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 $13.
In addition, during the period the investment adviser reimbursed and/or waived a portion of fund-level operating expenses in the amount of $153.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended May 31, 2019 | Year ended November 30, 2018 | |
Distributions to shareholders | ||
Growth Company | $1,424,494 | $1,149,671 |
Class K | 830,807 | 749,767 |
Total | $2,255,301 | $1,899,438 |
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
Shares | Shares | Dollars | Dollars | |
Six months ended May 31, 2019 | Year ended November 30, 2018(a) | Six months ended May 31, 2019 | Year ended November 30, 2018 | |
Growth Company | ||||
Shares sold | 125,125 | 248,528 | $2,255,215 | $4,759,280 |
Reinvestment of distributions | 83,397 | 58,986 | 1,317,674 | 1,059,253 |
Shares redeemed | (113,697)(b) | (307,305)(c) | (2,037,088)(b) | (5,899,459)(c) |
Net increase (decrease) | 94,825 | 209 | $1,535,801 | $(80,926) |
Class K | ||||
Shares sold | 62,567 | 187,471 | $1,134,790 | $3,588,943 |
Reinvestment of distributions | 52,532 | 41,745 | 830,534 | 749,542 |
Shares redeemed | (133,732)(b) | (292,620)(c) | (2,408,128)(b) | (5,589,480)(c) |
Net increase (decrease) | (18,633) | (63,404) | $(442,804) | $(1,250,995) |
(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 Unaffiliated Redemptions In-Kind note for additional details).
(c) Amount includes in-kind redemptions (see the Prior Fiscal Year Unaffiliated 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.
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 (December 1, 2018 to May 31, 2019).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
Annualized Expense Ratio-A | Beginning Account Value December 1, 2018 | Ending Account Value May 31, 2019 | Expenses Paid During Period-B December 1, 2018 to May 31, 2019 | |
Growth Company | .85% | |||
Actual | $1,000.00 | $1,038.10 | $4.32 | |
Hypothetical-C | $1,000.00 | $1,020.69 | $4.28 | |
Class K | .76% | |||
Actual | $1,000.00 | $1,038.00 | $3.86 | |
Hypothetical-C | $1,000.00 | $1,021.14 | $3.83 |
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 182/365 (to reflect the one-half year period).
C 5% return per year before expenses
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Growth Company Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract with Fidelity Management & Research Company (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund. FMR and the sub-advisers are referred to herein as the Investment Advisers. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.
The Board meets regularly and, at each of its meetings, covers an extensive agenda of topics and materials and considers factors that are relevant to its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. The Board has established various standing committees (Committees), each composed of and chaired by Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of the fund's Advisory Contracts. The Board also meets as needed to review matters specifically related to the Board's annual consideration of the renewal of the Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through joint ad hoc committees to discuss certain matters relevant to all of the Fidelity funds.
At its January 2019 meeting, the Board unanimously determined to renew the fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the fund's management fee and total expense ratio relative to peer funds; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationships with the fund; and (iv) the extent to which, if any, economies of scale exist and would be realized as the fund grows, and whether any economies of scale are appropriately shared with fund shareholders.
In considering whether to renew the Advisory Contracts for the fund, the Board reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts was in the best interests of the fund and its shareholders and that the compensation payable under the Advisory Contracts was fair and reasonable. The Board's decision to renew the Advisory Contracts was not based on any single factor, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, was aware that shareholders of the fund have a broad range of investment choices available to them, including a wide choice among funds offered by Fidelity's competitors, and that the fund's shareholders, who have the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, which is part of the Fidelity family of funds.
Nature, Extent, and Quality of Services Provided. The Board considered Fidelity's staffing as it relates to the fund, including the backgrounds of investment personnel of Fidelity, and also considered the fund's investment objective, strategies, and related investment philosophy. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the investment personnel compensation program and whether this structure provides appropriate incentives to act in the best interests of the fund. Additionally, the Board considered the portfolio managers' investments, if any, in the funds that they manage.Resources Dedicated to Investment Management and Support Services. The Board and the Fund Oversight and Research Committees reviewed the general qualifications and capabilities of Fidelity's investment staff, including its size, education, experience, and resources, as well as Fidelity's approach to recruiting, training, managing, and compensating investment personnel. The Board noted that Fidelity has continued to increase the resources devoted to non-U.S. offices, including expansion of Fidelity's global investment organization. The Board also noted that Fidelity's analysts have extensive resources, tools and capabilities that allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and guarantors. Further, the Board considered that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered Fidelity's trading, risk management, compliance, and technology and operations capabilities and resources, which are integral parts of the investment management process.Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by the Investment Advisers and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for the fund; (ii) the nature and extent of the supervision of third party service providers, principally custodians, subcustodians, and pricing vendors; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures. The Board also reviewed the allocation of fund brokerage, including allocations to brokers affiliated with the Investment Advisers, the use of brokerage commissions to pay fund expenses, and the use of "soft" commission dollars to pay for research services.The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value and convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through telephone representatives and over the Internet, investor education materials and asset allocation tools, and the expanded availability of Fidelity Investor Centers.The Board noted that it and the boards of certain other Fidelity funds had formed an ad hoc Committee on Transfer Agency Fees to review the variety of transfer agency fee structures throughout the industry and Fidelity's competitive positioning with respect to industry participants.Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including: (i) continuing to dedicate additional resources to Fidelity's investment research process, which includes meetings with management of issuers of securities in which the funds invest, and to the support of the senior management team that oversees asset management; (ii) continuing efforts to enhance Fidelity's global research capabilities; (iii) launching new funds and making other enhancements to meet client needs; (iv) launching new share classes of existing funds; (v) eliminating purchase minimums and broadening eligibility requirements for certain funds and share classes; (vi) reducing management fees and total expenses for certain growth equity funds and index funds; (vii) lowering expense caps for certain existing funds and classes, and converting certain voluntary expense caps to contractual caps, to reduce expenses borne by shareholders; (viii) eliminating short-term redemption fees for funds that had such fees; (ix) rationalizing product lines and gaining increased efficiencies from fund mergers and share class consolidations; (x) continuing to develop, acquire and implement systems and technology to improve services to the funds and shareholders, strengthen information security, and increase efficiency; and (xi) continuing to implement enhancements to further strengthen Fidelity's product line to increase investors' probability of success in achieving their investment goals, including retirement income goals.Investment Performance. The Board considered whether the fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions and its performance history.The Board took into account discussions that occur at Board meetings throughout the year with representatives of the Investment Advisers about fund investment performance. In this regard the Board noted that as part of regularly scheduled fund reviews and other reports to the Board on fund performance, the Board considers annualized return information for the fund for different time periods, measured against an appropriate securities market index ("benchmark index") and a peer group of funds with similar objectives ("peer group"), if any. In its evaluation of fund investment performance, the Board gave particular attention to information indicating changes in performance of certain Fidelity funds for specific time periods and discussed with the Investment Advisers the reasons for any overperformance or underperformance.In addition to reviewing absolute and relative fund performance, the Independent Trustees periodically consider the appropriateness of fund performance metrics in evaluating the results achieved. In general, the Independent Trustees believe that fund performance should be evaluated based on net performance (after fees and expenses) of both the highest performing and lowest performing fund share classes, where applicable, compared to appropriate benchmark indices, over appropriate time periods that may include full market cycles, and compared to peer groups, as applicable, over the same periods, taking into account relevant factors including the following: general market conditions; issuer-specific information; and fund cash flows and other factors.The Independent Trustees recognize that shareholders evaluate performance on a net basis over their own holding periods, for which one-, three-, and five-year periods are often used as a proxy. For this reason, the performance information reviewed by the Board also included net cumulative total return information for the fund and an appropriate benchmark index and peer group for the most recent one-, three-, and five-year periods ended June 30, 2018, as shown below. Returns are shown compared to the 25th percentile (top of box, 75% beaten) and 75th percentile (bottom of box, 25% beaten) of the peer universe.Fidelity Growth Company Fund
Fidelity Growth Company Fund
GCF-SANN-0719
1.704741.121
Fidelity® New Millennium Fund® Semi-Annual Report May 31, 2019 |
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of a fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a financial advisor, broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from a fund electronically, by contacting your financial intermediary. For Fidelity customers, visit Fidelity's web site or call Fidelity using the contact information listed below.
You may elect to receive all future reports in paper free of charge. If you wish to continue receiving paper copies of your shareholder reports, you may contact your financial intermediary or, if you are a Fidelity customer, visit Fidelity’s website, or call Fidelity at the applicable toll-free number listed below. Your election to receive reports in paper will apply to all funds held with the fund complex/your financial intermediary.
Account Type | Website | Phone Number |
Brokerage, Mutual Fund, or Annuity Contracts: | fidelity.com/mailpreferences | 1-800-343-3548 |
Employer Provided Retirement Accounts: | netbenefits.fidelity.com/preferences (choose 'no' under Required Disclosures to continue to print) | 1-800-343-0860 |
Advisor Sold Accounts Serviced Through Your Financial Intermediary: | Contact Your Financial Intermediary | Your Financial Intermediary's phone number |
Advisor Sold Accounts Serviced by Fidelity: | institutional.fidelity.com | 1-877-208-0098 |
Contents
Board Approval of Investment Advisory Contracts and Management Fees |
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-PORT. Forms N-PORT are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-PORT may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Investment Summary (Unaudited)
Top Ten Stocks as of May 31, 2019
% of fund's net assets | |
General Electric Co. | 4.2 |
Exxon Mobil Corp. | 2.9 |
Bank of America Corp. | 2.5 |
American International Group, Inc. | 2.3 |
Comcast Corp. Class A | 2.3 |
Walmart, Inc. | 2.1 |
Berkshire Hathaway, Inc. Class B | 2.0 |
Duke Energy Corp. | 1.7 |
Procter& Gamble Co. | 1.7 |
Cisco Systems, Inc. | 1.5 |
23.2 |
Top Five Market Sectors as of May 31, 2019
% of fund's net assets | |
Financials | 20.5 |
Industrials | 13.1 |
Health Care | 11.3 |
Consumer Discretionary | 11.1 |
Energy | 10.3 |
Asset Allocation (% of fund's net assets)
As of May 31, 2019* | ||
Stocks | 95.0% | |
Convertible Securities | 1.3% | |
Other Investments | 0.2% | |
Short-Term Investments and Net Other Assets (Liabilities) | 3.5% |
* Foreign investments - 15.0%
Schedule of Investments May 31, 2019 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 95.0% | |||
Shares | Value (000s) | ||
COMMUNICATION SERVICES - 5.1% | |||
Diversified Telecommunication Services - 1.7% | |||
Cogent Communications Group, Inc. | 153,600 | $8,986 | |
Verizon Communications, Inc. | 736,500 | 40,029 | |
49,015 | |||
Entertainment - 0.4% | |||
Trion World, Inc. (a)(b)(c) | 1,062,359 | 0 | |
WME Entertainment Parent, LLC Class A (a)(b)(c)(d) | 3,848,154 | 12,083 | |
12,083 | |||
Media - 2.3% | |||
Comcast Corp. Class A | 1,602,200 | 65,690 | |
Wireless Telecommunication Services - 0.7% | |||
Sprint Corp. (a) | 2,963,300 | 20,358 | |
TOTAL COMMUNICATION SERVICES | 147,146 | ||
CONSUMER DISCRETIONARY - 10.0% | |||
Automobiles - 0.8% | |||
Fiat Chrysler Automobiles NV | 1,421,300 | 17,937 | |
Tesla, Inc. (a) | 22,800 | 4,222 | |
22,159 | |||
Hotels, Restaurants & Leisure - 1.6% | |||
ARAMARK Holdings Corp. | 243,200 | 8,461 | |
Del Frisco's Restaurant Group, Inc. (a)(e) | 594,200 | 4,076 | |
Drive Shack, Inc. (a) | 2,114,780 | 9,622 | |
U.S. Foods Holding Corp. (a) | 543,800 | 18,794 | |
Wynn Resorts Ltd. | 56,700 | 6,086 | |
47,039 | |||
Household Durables - 2.0% | |||
D.R. Horton, Inc. | 510,900 | 21,846 | |
Newell Brands, Inc. | 510,900 | 6,856 | |
NVR, Inc. (a) | 4,730 | 15,143 | |
Toll Brothers, Inc. | 440,413 | 15,313 | |
59,158 | |||
Leisure Products - 0.1% | |||
New Academy Holding Co. LLC unit (a)(b)(c)(f) | 66,000 | 1,803 | |
Multiline Retail - 1.2% | |||
Dollar General Corp. | 192,500 | 24,501 | |
Dollar Tree, Inc. (a) | 95,100 | 9,661 | |
34,162 | |||
Specialty Retail - 2.3% | |||
AutoZone, Inc. (a) | 29,400 | 30,197 | |
Tiffany & Co., Inc. | 145,500 | 12,966 | |
TJX Companies, Inc. | 491,700 | 24,728 | |
67,891 | |||
Textiles, Apparel & Luxury Goods - 2.0% | |||
Allbirds, Inc. (b)(c) | 4,447 | 234 | |
Brunello Cucinelli SpA | 822,600 | 25,878 | |
PVH Corp. | 131,400 | 11,194 | |
Tapestry, Inc. | 413,100 | 11,798 | |
Under Armour, Inc. Class A (sub. vtg.) (a)(e) | 440,600 | 10,046 | |
59,150 | |||
TOTAL CONSUMER DISCRETIONARY | 291,362 | ||
CONSUMER STAPLES - 7.5% | |||
Beverages - 0.3% | |||
Diageo PLC sponsored ADR | 56,000 | 9,411 | |
Food & Staples Retailing - 2.3% | |||
Performance Food Group Co. (a) | 141,200 | 5,556 | |
Walmart, Inc. | 599,800 | 60,844 | |
66,400 | |||
Food Products - 1.3% | |||
Amira Nature Foods Ltd. (a)(e) | 1,082,352 | 942 | |
Greencore Group PLC | 5,662,061 | 14,782 | |
The Hershey Co. | 171,800 | 22,671 | |
38,395 | |||
Household Products - 2.9% | |||
Kimberly-Clark Corp. | 182,800 | 23,378 | |
Procter & Gamble Co. | 478,300 | 49,222 | |
Reckitt Benckiser Group PLC | 153,000 | 12,280 | |
84,880 | |||
Personal Products - 0.7% | |||
Coty, Inc. Class A | 582,110 | 7,183 | |
Unilever NV (Certificaten Van Aandelen) (Bearer) | 218,700 | 13,164 | |
20,347 | |||
TOTAL CONSUMER STAPLES | 219,433 | ||
ENERGY - 10.1% | |||
Energy Equipment & Services - 1.4% | |||
Borr Drilling Ltd. (a) | 4,083,203 | 8,398 | |
Oceaneering International, Inc. (a) | 546,052 | 8,955 | |
Odfjell Drilling Ltd. (a) | 4,359,224 | 12,911 | |
Pacific Drilling SA | 23,209 | 317 | |
Pacific Drilling SA (a) | 371,574 | 5,083 | |
TechnipFMC PLC | 302,000 | 6,282 | |
41,946 | |||
Oil, Gas & Consumable Fuels - 8.7% | |||
BP PLC sponsored ADR | 689,100 | 28,060 | |
Cabot Oil & Gas Corp. | 627,400 | 15,698 | |
Cheniere Energy, Inc. (a) | 222,000 | 14,026 | |
Exxon Mobil Corp. | 1,183,100 | 83,728 | |
GasLog Ltd. | 438,641 | 6,316 | |
Golar LNG Ltd. | 665,200 | 12,100 | |
Hess Corp. | 574,200 | 32,075 | |
Kosmos Energy Ltd. | 2,934,000 | 18,073 | |
Legacy Reserves, Inc. (a)(e) | 5,606,520 | 707 | |
The Williams Companies, Inc. | 1,037,097 | 27,359 | |
Valero Energy Corp. | 202,200 | 14,235 | |
252,377 | |||
TOTAL ENERGY | 294,323 | ||
FINANCIALS - 20.5% | |||
Banks - 5.3% | |||
Bank of America Corp. | 2,704,600 | 71,942 | |
First Republic Bank | 95,600 | 9,275 | |
HDFC Bank Ltd. sponsored ADR | 141,300 | 17,544 | |
Metro Bank PLC (a)(e)(g) | 1,778,153 | 15,365 | |
PNC Financial Services Group, Inc. | 156,100 | 19,865 | |
Republic First Bancorp, Inc. (a) | 866,300 | 4,193 | |
SunTrust Banks, Inc. | 275,012 | 16,503 | |
154,687 | |||
Capital Markets - 1.3% | |||
The NASDAQ OMX Group, Inc. | 189,400 | 17,167 | |
TPG Specialty Lending, Inc. | 1,039,965 | 20,300 | |
37,467 | |||
Diversified Financial Services - 2.3% | |||
Berkshire Hathaway, Inc. Class B (a) | 290,900 | 57,429 | |
Focus Financial Partners, Inc. Class A | 352,900 | 9,899 | |
67,328 | |||
Insurance - 8.9% | |||
American International Group, Inc. | 1,310,500 | 66,927 | |
Arch Capital Group Ltd. (a) | 857,700 | 29,531 | |
Beazley PLC | 1,105,800 | 7,829 | |
Chubb Ltd. | 287,309 | 41,967 | |
First American Financial Corp. | 252,100 | 13,021 | |
FNF Group | 609,700 | 23,504 | |
Hiscox Ltd. | 444,200 | 9,187 | |
Marsh & McLennan Companies, Inc. | 179,500 | 17,160 | |
MetLife, Inc. | 572,400 | 26,451 | |
The Travelers Companies, Inc. | 146,000 | 21,253 | |
256,830 | |||
Thrifts & Mortgage Finance - 2.7% | |||
Housing Development Finance Corp. Ltd. | 395,168 | 12,385 | |
LIC Housing Finance Ltd. | 1,254,600 | 10,064 | |
MGIC Investment Corp. (a) | 1,208,134 | 16,370 | |
Radian Group, Inc. | 1,745,523 | 39,187 | |
78,006 | |||
TOTAL FINANCIALS | 594,318 | ||
HEALTH CARE - 11.1% | |||
Biotechnology - 1.8% | |||
Amgen, Inc. | 214,700 | 35,790 | |
Celgene Corp. (a) | 173,700 | 16,291 | |
52,081 | |||
Health Care Equipment & Supplies - 2.4% | |||
Becton, Dickinson & Co. | 108,500 | 25,328 | |
Boston Scientific Corp. (a) | 602,500 | 23,142 | |
Danaher Corp. | 169,000 | 22,310 | |
70,780 | |||
Health Care Providers & Services - 3.8% | |||
Covetrus, Inc. (a) | 116,480 | 2,872 | |
Henry Schein, Inc. (a) | 270,100 | 17,411 | |
National Vision Holdings, Inc. (a) | 357,700 | 9,740 | |
Notre Dame Intermedica Participacoes SA | 1,052,460 | 10,997 | |
Premier, Inc. (a) | 222,100 | 8,162 | |
UnitedHealth Group, Inc. | 176,300 | 42,629 | |
Universal Health Services, Inc. Class B | 142,900 | 17,084 | |
108,895 | |||
Health Care Technology - 0.5% | |||
Cerner Corp. | 214,500 | 15,009 | |
Life Sciences Tools & Services - 1.1% | |||
Agilent Technologies, Inc. | 167,300 | 11,217 | |
Avantor, Inc. | 532,600 | 9,321 | |
Bruker Corp. | 295,800 | 12,356 | |
32,894 | |||
Pharmaceuticals - 1.5% | |||
Amneal Pharmaceuticals, Inc. (a)(e) | 453,100 | 3,416 | |
Catalent, Inc. (a) | 230,493 | 10,487 | |
GlaxoSmithKline PLC | 180 | 3 | |
Perrigo Co. PLC | 272,800 | 11,463 | |
Prestige Brands Holdings, Inc. (a) | 278,300 | 8,079 | |
Roche Holding AG (participation certificate) | 39,120 | 10,275 | |
43,723 | |||
TOTAL HEALTH CARE | 323,382 | ||
INDUSTRIALS - 13.1% | |||
Aerospace & Defense - 4.8% | |||
General Dynamics Corp. | 222,000 | 35,702 | |
Huntington Ingalls Industries, Inc. | 152,500 | 31,281 | |
Kratos Defense & Security Solutions, Inc. (a) | 897,100 | 19,781 | |
Northrop Grumman Corp. | 132,400 | 40,150 | |
Space Exploration Technologies Corp.: | |||
Class A (a)(b)(c) | 58,589 | 11,952 | |
Class C (a)(b)(c) | 818 | 167 | |
139,033 | |||
Commercial Services & Supplies - 1.2% | |||
KAR Auction Services, Inc. | 263,400 | 14,808 | |
Stericycle, Inc. (a) | 185,600 | 8,608 | |
U.S. Ecology, Inc. | 179,056 | 10,657 | |
34,073 | |||
Electrical Equipment - 0.4% | |||
Melrose Industries PLC | 5,399,728 | 11,192 | |
Industrial Conglomerates - 4.2% | |||
General Electric Co. | 13,073,300 | 123,422 | |
Machinery - 0.7% | |||
Donaldson Co., Inc. | 263,800 | 12,517 | |
Pentair PLC | 148,600 | 5,174 | |
Wabtec Corp. (e) | 57,863 | 3,609 | |
21,300 | |||
Marine - 0.4% | |||
Goodbulk Ltd. (c) | 959,290 | 12,057 | |
Road & Rail - 0.9% | |||
Knight-Swift Transportation Holdings, Inc. Class A | 307,900 | 8,510 | |
Lyft, Inc. | 294,644 | 15,280 | |
Lyft, Inc. (e) | 17,600 | 1,014 | |
24,804 | |||
Trading Companies & Distributors - 0.5% | |||
Bunzl PLC | 509,419 | 13,621 | |
TOTAL INDUSTRIALS | 379,502 | ||
INFORMATION TECHNOLOGY - 6.7% | |||
Communications Equipment - 1.8% | |||
Cisco Systems, Inc. | 830,700 | 43,221 | |
Telefonaktiebolaget LM Ericsson (B Shares) | 809,100 | 7,785 | |
51,006 | |||
Electronic Equipment & Components - 1.3% | |||
Amphenol Corp. Class A | 259,882 | 22,610 | |
Keysight Technologies, Inc. (a) | 194,000 | 14,575 | |
37,185 | |||
IT Services - 2.4% | |||
Akamai Technologies, Inc. (a) | 227,600 | 17,152 | |
Euronet Worldwide, Inc. (a) | 30,800 | 4,775 | |
First Data Corp. Class A (a) | 956,462 | 24,313 | |
Leidos Holdings, Inc. | 316,100 | 23,812 | |
70,052 | |||
Software - 1.2% | |||
Black Knight, Inc. (a) | 640,649 | 36,318 | |
TOTAL INFORMATION TECHNOLOGY | 194,561 | ||
MATERIALS - 2.4% | |||
Chemicals - 1.4% | |||
International Flavors & Fragrances, Inc. (e) | 136,400 | 18,471 | |
LG Chemical Ltd. | 18,930 | 5,303 | |
Nutrien Ltd. | 191,020 | 9,316 | |
Olin Corp. | 328,500 | 6,442 | |
39,532 | |||
Metals & Mining - 1.0% | |||
Franco-Nevada Corp. | 133,400 | 10,300 | |
Newcrest Mining Ltd. | 502,782 | 9,490 | |
Novagold Resources, Inc. (a) | 2,588,380 | 10,514 | |
30,304 | |||
TOTAL MATERIALS | 69,836 | ||
REAL ESTATE - 2.3% | |||
Equity Real Estate Investment Trusts (REITs) - 2.3% | |||
Cousins Properties, Inc. | 836,353 | 7,569 | |
Crown Castle International Corp. | 72,500 | 9,426 | |
Gaming & Leisure Properties | 192,500 | 7,602 | |
Healthcare Trust of America, Inc. | 254,900 | 7,339 | |
Spirit MTA REIT | 190,380 | 1,338 | |
Spirit Realty Capital, Inc. | 353,260 | 15,070 | |
VEREIT, Inc. | 471,400 | 4,186 | |
VICI Properties, Inc. | 668,200 | 14,821 | |
67,351 | |||
UTILITIES - 6.2% | |||
Electric Utilities - 6.2% | |||
Alliant Energy Corp. | 380,100 | 18,040 | |
Duke Energy Corp. | 584,000 | 49,996 | |
Exelon Corp. | 421,200 | 20,251 | |
IDACORP, Inc. | 260,800 | 26,150 | |
OGE Energy Corp. | 246,000 | 10,224 | |
Southern Co. | 463,800 | 24,813 | |
Xcel Energy, Inc. | 516,900 | 29,639 | |
179,113 | |||
TOTAL COMMON STOCKS | |||
(Cost $2,391,763) | 2,760,327 | ||
Preferred Stocks - 1.3% | |||
Convertible Preferred Stocks - 1.3% | |||
CONSUMER DISCRETIONARY - 1.1% | |||
Leisure Products - 0.9% | |||
Peloton Interactive, Inc.: | |||
Series E (a)(b)(c) | 923,284 | 19,647 | |
Series F (b)(c) | 298,932 | 6,361 | |
26,008 | |||
Textiles, Apparel & Luxury Goods - 0.2% | |||
Allbirds, Inc.: | |||
Series A (b)(c) | 1,755 | 93 | |
Series B (b)(c) | 308 | 16 | |
Series C (b)(c) | 2,947 | 155 | |
Bolt Threads, Inc. Series D (a)(b)(c) | 390,327 | 5,000 | |
5,264 | |||
TOTAL CONSUMER DISCRETIONARY | 31,272 | ||
HEALTH CARE - 0.2% | |||
Health Care Equipment & Supplies - 0.2% | |||
Butterfly Network, Inc. Series D (a)(b)(c) | 658,083 | 6,087 | |
INDUSTRIALS - 0.0% | |||
Aerospace & Defense - 0.0% | |||
Space Exploration Technologies Corp. Series H (a)(b)(c) | 7,570 | 1,544 | |
TOTAL CONVERTIBLE PREFERRED STOCKS | 38,903 | ||
Nonconvertible Preferred Stocks - 0.0% | |||
CONSUMER DISCRETIONARY - 0.0% | |||
Textiles, Apparel & Luxury Goods - 0.0% | |||
Allbirds, Inc. (b)(c) | 943 | 50 | |
TOTAL PREFERRED STOCKS | |||
(Cost $23,686) | 38,953 | ||
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)(h)(i) | 474 | 0 | |
Nonconvertible Bonds - 0.0% | |||
ENERGY - 0.0% | |||
Energy Equipment & Services - 0.0% | |||
Pacific Drilling Second Lien Escrow Issuer Ltd. 12% 4/1/24 pay-in-kind (i)(j) | 190 | 187 | |
TOTAL CORPORATE BONDS | |||
(Cost $667) | 187 | ||
Shares | Value (000s) | ||
Other - 0.2% | |||
ENERGY - 0.2% | |||
Oil, Gas & Consumable Fuels - 0.2% | |||
Utica Shale Drilling Program (non-operating revenue interest) (b)(c)(d) | |||
(Cost $8,368) | 8,367,654 | 4,221 | |
Money Market Funds - 5.0% | |||
Fidelity Cash Central Fund 2.41% (k) | 113,746,755 | 113,770 | |
Fidelity Securities Lending Cash Central Fund 2.42% (k)(l) | 32,792,096 | 32,795 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $146,564) | 146,565 | ||
TOTAL INVESTMENT IN SECURITIES - 101.5% | |||
(Cost $2,571,048) | 2,950,253 | ||
NET OTHER ASSETS (LIABILITIES) - (1.5)% | (44,492) | ||
NET ASSETS - 100% | $2,905,761 |
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 $69,413,000 or 2.4% 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) Security or a portion of the security is on loan at period end.
(f) 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.
(g) Security or a portion of the security purchased on a delayed delivery or when-issued basis.
(h) Non-income producing - Security is in default.
(i) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end.
(j) 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 $187,000 or 0.0% of net assets.
(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 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 |
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 | $1,250 |
Fidelity Securities Lending Cash Central Fund | 288 |
Total | $1,538 |
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, Inc. | $12,054 | $-- | $-- | $-- | $-- | $(11,347) | $-- |
Total | $12,054 | $-- | $-- | $-- | $-- | $(11,347) | $-- |
Investment Valuation
The following is a summary of the inputs used, as of May 31, 2019, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
(Amounts in thousands) | ||||
Investments in Securities: | ||||
Equities: | ||||
Communication Services | $147,146 | $135,063 | $-- | $12,083 |
Consumer Discretionary | 322,684 | 289,325 | -- | 33,359 |
Consumer Staples | 219,433 | 193,989 | 25,444 | -- |
Energy | 294,323 | 294,323 | -- | -- |
Financials | 594,318 | 594,318 | -- | -- |
Health Care | 329,469 | 313,104 | 10,278 | 6,087 |
Industrials | 381,046 | 340,046 | 15,280 | 25,720 |
Information Technology | 194,561 | 186,776 | 7,785 | -- |
Materials | 69,836 | 69,836 | -- | -- |
Real Estate | 67,351 | 67,351 | -- | -- |
Utilities | 179,113 | 179,113 | -- | -- |
Corporate Bonds | 187 | -- | 187 | 0 |
Other | 4,221 | -- | -- | 4,221 |
Money Market Funds | 146,565 | 146,565 | -- | -- |
Total Investments in Securities: | $2,950,253 | $2,809,809 | $58,974 | $81,470 |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value:
(Amounts in thousands) | |
Investments in Securities: | |
Equities - Consumer Discretionary | |
Beginning Balance | $25,103 |
Net Realized Gain (Loss) on Investment Securities | -- |
Net Unrealized Gain (Loss) on Investment Securities | 8,256 |
Cost of Purchases | -- |
Proceeds of Sales | -- |
Amortization/Accretion | -- |
Transfers into Level 3 | -- |
Transfers out of Level 3 | -- |
Ending Balance | $33,359 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at May 31, 2019 | $8,256 |
Other investments in securities | |
Beginning Balance | $63,194 |
Net Realized Gain (Loss) on Investment Securities | -- |
Net Unrealized Gain (Loss) on Investment Securities | (2,298) |
Cost of Purchases | 79 |
Proceeds of Sales | (12,864) |
Amortization/Accretion | -- |
Transfers into Level 3 | -- |
Transfers out of Level 3 | -- |
Ending Balance | $48,111 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at May 31, 2019 | $(15,162) |
The information used in the above reconciliations represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represent the beginning value of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. The cost of purchases and the proceeds of sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) disclosed in the reconciliations are included in Net Gain (Loss) on the Fund's Statement of Operations.
Other Information
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% |
United Kingdom | 3.6% |
Bermuda | 3.0% |
Switzerland | 1.8% |
India | 1.3% |
Ireland | 1.1% |
Netherlands | 1.1% |
Canada | 1.0% |
Others (Individually Less Than 1%) | 2.1% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
Amounts in thousands (except per-share amount) | May 31, 2019 (Unaudited) | |
Assets | ||
Investment in securities, at value (including securities loaned of $26,946) — See accompanying schedule: Unaffiliated issuers (cost $2,424,484) | $2,803,688 | |
Fidelity Central Funds (cost $146,564) | 146,565 | |
Total Investment in Securities (cost $2,571,048) | $2,950,253 | |
Cash | 289 | |
Restricted cash | 411 | |
Receivable for investments sold | 2,250 | |
Receivable for fund shares sold | 584 | |
Dividends receivable | 5,458 | |
Interest receivable | 3 | |
Distributions receivable from Fidelity Central Funds | 339 | |
Prepaid expenses | 1 | |
Other receivables | 70 | |
Total assets | 2,959,658 | |
Liabilities | ||
Payable for investments purchased | ||
Regular delivery | $11,772 | |
Delayed delivery | 5,125 | |
Payable for fund shares redeemed | 2,219 | |
Accrued management fee | 1,149 | |
Other affiliated payables | 445 | |
Other payables and accrued expenses | 401 | |
Collateral on securities loaned | 32,786 | |
Total liabilities | 53,897 | |
Net Assets | $2,905,761 | |
Net Assets consist of: | ||
Paid in capital | $2,486,783 | |
Total distributable earnings (loss) | 418,978 | |
Net Assets, for 83,620 shares outstanding | $2,905,761 | |
Net Asset Value, offering price and redemption price per share ($2,905,761 ÷ 83,620 shares) | $34.75 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Amounts in thousands | Six months ended May 31, 2019 (Unaudited) | |
Investment Income | ||
Dividends | $34,681 | |
Non-Cash dividends | 4,782 | |
Interest | 439 | |
Income from Fidelity Central Funds | 1,538 | |
Total income | 41,440 | |
Expenses | ||
Management fee | ||
Basic fee | $8,166 | |
Performance adjustment | (903) | |
Transfer agent fees | 2,338 | |
Accounting and security lending fees | 450 | |
Custodian fees and expenses | 36 | |
Independent trustees' fees and expenses | 8 | |
Registration fees | 21 | |
Audit | 48 | |
Legal | 6 | |
Interest | 2 | |
Miscellaneous | 12 | |
Total expenses before reductions | 10,184 | |
Expense reductions | (65) | |
Total expenses after reductions | 10,119 | |
Net investment income (loss) | 31,321 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 10,231 | |
Foreign currency transactions | (71) | |
Total net realized gain (loss) | 10,160 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers (net of increase in deferred foreign taxes of $315) | 17,173 | |
Other affiliated issuers | (11,347) | |
Assets and liabilities in foreign currencies | 1 | |
Total change in net unrealized appreciation (depreciation) | 5,827 | |
Net gain (loss) | 15,987 | |
Net increase (decrease) in net assets resulting from operations | $47,308 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Amounts in thousands | Six months ended May 31, 2019 (Unaudited) | Year ended November 30, 2018 |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $31,321 | $33,892 |
Net realized gain (loss) | 10,160 | 437,687 |
Change in net unrealized appreciation (depreciation) | 5,827 | (369,698) |
Net increase (decrease) in net assets resulting from operations | 47,308 | 101,881 |
Distributions to shareholders | (446,488) | (265,435) |
Share transactions | ||
Proceeds from sales of shares | 98,697 | 375,717 |
Reinvestment of distributions | 425,460 | 252,831 |
Cost of shares redeemed | (425,258) | (546,925) |
Net increase (decrease) in net assets resulting from share transactions | 98,899 | 81,623 |
Total increase (decrease) in net assets | (300,281) | (81,931) |
Net Assets | ||
Beginning of period | 3,206,042 | 3,287,973 |
End of period | $2,905,761 | $3,206,042 |
Other Information | ||
Shares | ||
Sold | 2,859 | 8,962 |
Issued in reinvestment of distributions | 13,854 | 6,362 |
Redeemed | (12,207) | (13,207) |
Net increase (decrease) | 4,506 | 2,117 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity New Millennium Fund
Six months ended (Unaudited) May 31, | Years endedNovember 30, | |||||
2019 | 2018 | 2017 | 2016 | 2015 | 2014 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $40.52 | $42.70 | $37.56 | $38.99 | $42.10 | $40.16 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .36 | .43 | .38 | .43 | .39 | .38B |
Net realized and unrealized gain (loss) | (.43)C | .87 | 7.01 | 2.31 | (.46) | 3.89 |
Total from investment operations | (.07) | 1.30 | 7.39 | 2.74 | (.07) | 4.27 |
Distributions from net investment income | (.39) | (.36) | (.43) | (.35) | (.28) | (.19) |
Distributions from net realized gain | (5.31) | (3.12) | (1.82) | (3.82) | (2.76) | (2.13) |
Total distributions | (5.70) | (3.48) | (2.25) | (4.17) | (3.04) | (2.33)D |
Net asset value, end of period | $34.75 | $40.52 | $42.70 | $37.56 | $38.99 | $42.10 |
Total ReturnE,F | 1.67% | 3.19% | 20.69% | 8.57% | .08% | 11.31% |
Ratios to Average Net AssetsG,H | ||||||
Expenses before reductions | .67%I | .64% | .54% | .57% | .72% | .82% |
Expenses net of fee waivers, if any | .67%I | .64% | .54% | .57% | .72% | .82% |
Expenses net of all reductions | .67%I | .63% | .54% | .57% | .71% | .81% |
Net investment income (loss) | 2.07%I | 1.03% | .98% | 1.25% | 1.00% | .92%B |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $2,906 | $3,206 | $3,288 | $3,045 | $3,313 | $4,282 |
Portfolio turnover rateJ | 28%I | 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 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.
D 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.
E Total returns for periods of less than one year are not annualized.
F Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
G Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
H Expense ratios reflect operating expenses of the 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.
I Annualized
J Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended May 31, 2019
(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 ranged from less than .005% to .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investments Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy. 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) |
Equities | $65,194 | Market comparable | Enterprise value/Sales multiple (EV/S) | 2.8 - 22.8 / 9.3 | Increase |
Enterprise value/EBITDA multiple (EV/EBITDA) | 6.8 | Increase | |||
Premium rate | 10.0% - 94.7% - 76.6% | Increase | |||
Discount for lack of marketability | 10.0% | Decrease | |||
Recovery value | Recovery value | 0.0% | Increase | ||
Market approach | Transaction price | $19.55 - $204.00 / $59.29 | Increase | ||
Corporate Bonds | $0 | Recovery value | Recovery value | 0.0% | Increase |
Other | $4,221 | Discount cash flow | Discount rate | 17.2% | Decrease |
(a) Represents the directional change in the fair value of the Level 3 investments that could have resulted from an increase in the corresponding input as of period end. A decrease to the unobservable input would have had the opposite effect. Significant changes in these inputs may have resulted in a significantly higher or lower fair value measurement at period end.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of May 31, 2019, as well as a roll forward of Level 3 investments, is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Paid in Kind (PIK) income is recorded at the fair market value of the securities received. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests. 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.
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 | $614,629 |
Gross unrealized depreciation | (222,589) |
Net unrealized appreciation (depreciation) | $392,040 |
Tax cost | $2,558,213 |
Delayed Delivery Transactions and When-Issued Securities. During the period, the Fund transacted in securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. The securities purchased on a delayed delivery or when-issued basis are identified as such in the Fund's Schedule of Investments. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
Consolidated Subsidiary. The Fund invests in certain investments through a wholly-owned subsidiary ("Subsidiary"), which may be subject to federal and state taxes upon disposition.
As of period end, the Fund held an investment of $16,715 in these Subsidiaries, representing .58% 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.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $417,356 and $648,402, 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 annualized management fee rate, including the performance adjustment, was .48% of the Fund's average net assets. The performance adjustment included in the management fee rate may be higher or lower than the maximum performance adjustment rate due to the difference between the average net assets for the reporting and performance periods.
Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of the investment adviser, is the Fund's transfer, dividend disbursing and shareholder servicing agent. FIIOC receives account fees and asset-based fees that vary according to account size and type of account. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the transfer agent fees were equivalent to an annualized rate of .15% of average net assets.
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Prior to April 1, 2019, FSC had a separate agreement with the Fund for administration of the security lending program, based on the number and duration of lending transactions. For the period, the total fees paid for accounting and administration of securities lending were equivalent to an annualized rate of .03%.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $22 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 | $33,118 | 2.68% | $2 |
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 $4 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 $288, including 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 $51 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 $2.
In addition, during the period the investment adviser reimbursed and/or waived a portion of operating expenses in the amount of $12.
9. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
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 (December 1, 2018 to May 31, 2019).
Actual Expenses
The first line of the accompanying table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
Annualized Expense Ratio-A | Beginning Account Value December 1, 2018 | Ending Account Value May 31, 2019 | Expenses Paid During Period-B December 1, 2018 to May 31, 2019 | |
Actual | .67% | $1,000.00 | $1,016.70 | $3.37 |
Hypothetical-C | $1,000.00 | $1,021.59 | $3.38 |
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 182/365 (to reflect the one-half year period).
C 5% return per year before expenses
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity New Millennium Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract with Fidelity Management & Research Company (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund. FMR and the sub-advisers are referred to herein as the Investment Advisers. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.
The Board meets regularly and, at each of its meetings, covers an extensive agenda of topics and materials and considers factors that are relevant to its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. The Board has established various standing committees (Committees), each composed of and chaired by Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of the fund's Advisory Contracts. The Board also meets as needed to review matters specifically related to the Board's annual consideration of the renewal of the Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through joint ad hoc committees to discuss certain matters relevant to all of the Fidelity funds.
At its January 2019 meeting, the Board unanimously determined to renew the fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the fund's management fee and total expense ratio relative to peer funds; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationships with the fund; and (iv) the extent to which, if any, economies of scale exist and would be realized as the fund grows, and whether any economies of scale are appropriately shared with fund shareholders.
In considering whether to renew the Advisory Contracts for the fund, the Board reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts was in the best interests of the fund and its shareholders and that the compensation payable under the Advisory Contracts was fair and reasonable. The Board's decision to renew the Advisory Contracts was not based on any single factor, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, was aware that shareholders of the fund have a broad range of investment choices available to them, including a wide choice among funds offered by Fidelity's competitors, and that the fund's shareholders, who have the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, which is part of the Fidelity family of funds.
Nature, Extent, and Quality of Services Provided. The Board considered Fidelity's staffing as it relates to the fund, including the backgrounds of investment personnel of Fidelity, and also considered the fund's investment objective, strategies, and related investment philosophy. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the investment personnel compensation program and whether this structure provides appropriate incentives to act in the best interests of the fund. Additionally, the Board considered the portfolio managers' investments, if any, in the funds that they manage.Resources Dedicated to Investment Management and Support Services. The Board and the Fund Oversight and Research Committees reviewed the general qualifications and capabilities of Fidelity's investment staff, including its size, education, experience, and resources, as well as Fidelity's approach to recruiting, training, managing, and compensating investment personnel. The Board noted that Fidelity has continued to increase the resources devoted to non-U.S. offices, including expansion of Fidelity's global investment organization. The Board also noted that Fidelity's analysts have extensive resources, tools and capabilities that allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and guarantors. Further, the Board considered that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered Fidelity's trading, risk management, compliance, and technology and operations capabilities and resources, which are integral parts of the investment management process.Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by the Investment Advisers and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for the fund; (ii) the nature and extent of the supervision of third party service providers, principally custodians, subcustodians, and pricing vendors; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures. The Board also reviewed the allocation of fund brokerage, including allocations to brokers affiliated with the Investment Advisers, the use of brokerage commissions to pay fund expenses, and the use of "soft" commission dollars to pay for research services.The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value and convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through telephone representatives and over the Internet, investor education materials and asset allocation tools, and the expanded availability of Fidelity Investor Centers.The Board noted that it and the boards of certain other Fidelity funds had formed an ad hoc Committee on Transfer Agency Fees to review the variety of transfer agency fee structures throughout the industry and Fidelity's competitive positioning with respect to industry participants.Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including: (i) continuing to dedicate additional resources to Fidelity's investment research process, which includes meetings with management of issuers of securities in which the funds invest, and to the support of the senior management team that oversees asset management; (ii) continuing efforts to enhance Fidelity's global research capabilities; (iii) launching new funds and making other enhancements to meet client needs; (iv) launching new share classes of existing funds; (v) eliminating purchase minimums and broadening eligibility requirements for certain funds and share classes; (vi) reducing management fees and total expenses for certain growth equity funds and index funds; (vii) lowering expense caps for certain existing funds and classes, and converting certain voluntary expense caps to contractual caps, to reduce expenses borne by shareholders; (viii) eliminating short-term redemption fees for funds that had such fees; (ix) rationalizing product lines and gaining increased efficiencies from fund mergers and share class consolidations; (x) continuing to develop, acquire and implement systems and technology to improve services to the funds and shareholders, strengthen information security, and increase efficiency; and (xi) continuing to implement enhancements to further strengthen Fidelity's product line to increase investors' probability of success in achieving their investment goals, including retirement income goals.Investment Performance. The Board considered whether the fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions and its performance history.The Board took into account discussions that occur at Board meetings throughout the year with representatives of the Investment Advisers about fund investment performance. In this regard the Board noted that as part of regularly scheduled fund reviews and other reports to the Board on fund performance, the Board considers annualized return information for the fund for different time periods, measured against an appropriate securities market index ("benchmark index") and a peer group of funds with similar objectives ("peer group"), if any. In its evaluation of fund investment performance, the Board gave particular attention to information indicating changes in performance of certain Fidelity funds for specific time periods and discussed with the Investment Advisers the reasons for any overperformance or underperformance.In addition to reviewing absolute and relative fund performance, the Independent Trustees periodically consider the appropriateness of fund performance metrics in evaluating the results achieved. In general, the Independent Trustees believe that fund performance should be evaluated based on net performance (after fees and expenses) of both the highest performing and lowest performing fund share classes, where applicable, compared to appropriate benchmark indices, over appropriate time periods that may include full market cycles, and compared to peer groups, as applicable, over the same periods, taking into account relevant factors including the following: general market conditions; issuer-specific information; and fund cash flows and other factors.The Independent Trustees recognize that shareholders evaluate performance on a net basis over their own holding periods, for which one-, three-, and five-year periods are often used as a proxy. For this reason, the performance information reviewed by the Board also included net cumulative total return information for the fund and an appropriate benchmark index and peer group for the most recent one-, three-, and five-year periods ended June 30, 2018, as shown below. Returns are shown compared to the 25th percentile (top of box, 75% beaten) and 75th percentile (bottom of box, 25% beaten) of the peer universe.Fidelity New Millennium Fund
Fidelity New Millennium Fund
The Board considered that effective February 1, 2017, the fund's individual fund fee rate was reduced from 0.35% to 0.30%. The Board considered that the chart below reflects the fund's management rate for 2016, as if the lower fee rate were in effect for the entire year.
NMF-SANN-0719
1.704547.121
Fidelity® Growth Strategies Fund Semi-Annual Report May 31, 2019 |
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of a fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a financial advisor, broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from a fund electronically, by contacting your financial intermediary. For Fidelity customers, visit Fidelity's web site or call Fidelity using the contact information listed below.
You may elect to receive all future reports in paper free of charge. If you wish to continue receiving paper copies of your shareholder reports, you may contact your financial intermediary or, if you are a Fidelity customer, visit Fidelity’s website, or call Fidelity at the applicable toll-free number listed below. Your election to receive reports in paper will apply to all funds held with the fund complex/your financial intermediary.
Account Type | Website | Phone Number |
Brokerage, Mutual Fund, or Annuity Contracts: | fidelity.com/mailpreferences | 1-800-343-3548 |
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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
Board Approval of Investment Advisory Contracts and Management Fees |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-800-544-8544 if you’re an individual investing directly with Fidelity, call 1-800-835-5092 if you’re a plan sponsor or participant with Fidelity as your recordkeeper or call 1-877-208-0098 on institutional accounts or if you’re an advisor or invest through one to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2019 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT. Forms N-PORT are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-PORT may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Investment Summary (Unaudited)
Top Ten Stocks as of May 31, 2019
% of fund's net assets | |
Total System Services, Inc. | 4.2 |
VeriSign, Inc. | 3.6 |
Roper Technologies, Inc. | 2.8 |
Fiserv, Inc. | 2.5 |
Wellcare Health Plans, Inc. | 2.4 |
Dollar General Corp. | 2.2 |
ResMed, Inc. | 2.2 |
Workday, Inc. Class A | 2.1 |
Edwards Lifesciences Corp. | 1.9 |
ON Semiconductor Corp. | 1.9 |
25.8 |
Top Five Market Sectors as of May 31, 2019
% of fund's net assets | |
Information Technology | 36.3 |
Industrials | 16.5 |
Health Care | 15.2 |
Consumer Discretionary | 13.2 |
Financials | 7.3 |
Asset Allocation (% of fund's net assets)
As of May 31, 2019 * | ||
Stocks | 98.9% | |
Short-Term Investments and Net Other Assets (Liabilities) | 1.1% |
* Foreign investments - 1.3%
Schedule of Investments May 31, 2019 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.9% | |||
Shares | Value (000s) | ||
COMMUNICATION SERVICES - 3.8% | |||
Entertainment - 3.3% | |||
Electronic Arts, Inc. (a) | 152,000 | $14,148 | |
Live Nation Entertainment, Inc. (a) | 592,028 | 36,007 | |
Take-Two Interactive Software, Inc. (a) | 330,000 | 35,690 | |
85,845 | |||
Interactive Media & Services - 0.4% | |||
TripAdvisor, Inc. (a) | 257,000 | 10,863 | |
Media - 0.1% | |||
Sinclair Broadcast Group, Inc. Class A | 40,000 | 2,147 | |
TOTAL COMMUNICATION SERVICES | 98,855 | ||
CONSUMER DISCRETIONARY - 13.2% | |||
Distributors - 1.0% | |||
Pool Corp. | 145,158 | 26,097 | |
Diversified Consumer Services - 1.5% | |||
Service Corp. International | 900,000 | 39,483 | |
Hotels, Restaurants & Leisure - 1.3% | |||
Domino's Pizza, Inc. | 85,258 | 23,830 | |
Planet Fitness, Inc. (a) | 115,607 | 8,840 | |
32,670 | |||
Internet & Direct Marketing Retail - 0.5% | |||
GrubHub, Inc. (a)(b) | 213,000 | 13,877 | |
Multiline Retail - 2.2% | |||
Dollar General Corp. | 451,246 | 57,435 | |
Specialty Retail - 4.6% | |||
AutoZone, Inc. (a) | 23,813 | 24,459 | |
Best Buy Co., Inc. | 259,567 | 16,267 | |
Ross Stores, Inc. | 506,155 | 47,067 | |
Ulta Beauty, Inc. (a) | 83,700 | 27,904 | |
Urban Outfitters, Inc. (a) | 192,000 | 4,314 | |
120,011 | |||
Textiles, Apparel & Luxury Goods - 2.1% | |||
Carter's, Inc. | 195,000 | 16,401 | |
Deckers Outdoor Corp. (a) | 19,967 | 3,037 | |
Levi Strauss & Co. Class A (a) | 47,021 | 913 | |
VF Corp. | 429,283 | 35,150 | |
55,501 | |||
TOTAL CONSUMER DISCRETIONARY | 345,074 | ||
CONSUMER STAPLES - 3.2% | |||
Beverages - 0.9% | |||
Brown-Forman Corp. Class B (non-vtg.) | 444,258 | 22,204 | |
Food Products - 1.2% | |||
The Hershey Co. | 232,000 | 30,615 | |
Household Products - 0.8% | |||
Clorox Co. | 148,694 | 22,127 | |
Personal Products - 0.3% | |||
Estee Lauder Companies, Inc. Class A | 35,940 | 5,787 | |
Herbalife Nutrition Ltd. (a) | 58,750 | 2,455 | |
8,242 | |||
TOTAL CONSUMER STAPLES | 83,188 | ||
FINANCIALS - 7.3% | |||
Banks - 0.8% | |||
Citizens Financial Group, Inc. | 464,174 | 15,123 | |
Huntington Bancshares, Inc. | 577,966 | 7,311 | |
22,434 | |||
Capital Markets - 6.1% | |||
LPL Financial | 348,300 | 27,941 | |
MarketAxess Holdings, Inc. | 91,038 | 27,113 | |
Moody's Corp. | 262,062 | 47,926 | |
MSCI, Inc. | 199,667 | 43,929 | |
S&P Global, Inc. | 57,000 | 12,191 | |
Tradeweb Markets, Inc. Class A | 11,680 | 527 | |
159,627 | |||
Insurance - 0.4% | |||
Progressive Corp. | 132,512 | 10,506 | |
TOTAL FINANCIALS | 192,567 | ||
HEALTH CARE - 15.2% | |||
Health Care Equipment & Supplies - 6.2% | |||
DexCom, Inc. (a) | 210,000 | 25,473 | |
Edwards Lifesciences Corp. (a) | 289,804 | 49,470 | |
Intuitive Surgical, Inc. (a) | 25,557 | 11,880 | |
Masimo Corp. (a) | 87,400 | 11,427 | |
ResMed, Inc. | 499,166 | 56,965 | |
Teleflex, Inc. | 25,000 | 7,208 | |
162,423 | |||
Health Care Providers & Services - 3.0% | |||
Elanco Animal Health, Inc. | 504,000 | 15,765 | |
Wellcare Health Plans, Inc. (a) | 231,613 | 63,969 | |
79,734 | |||
Health Care Technology - 1.1% | |||
Veeva Systems, Inc. Class A (a) | 185,200 | 28,575 | |
Life Sciences Tools & Services - 4.9% | |||
Bruker Corp. | 235,700 | 9,845 | |
Charles River Laboratories International, Inc. (a) | 338,000 | 42,402 | |
Mettler-Toledo International, Inc. (a) | 62,100 | 44,904 | |
Waters Corp. (a) | 152,599 | 30,628 | |
127,779 | |||
TOTAL HEALTH CARE | 398,511 | ||
INDUSTRIALS - 16.5% | |||
Aerospace & Defense - 3.2% | |||
Huntington Ingalls Industries, Inc. | 204,000 | 41,844 | |
TransDigm Group, Inc. (a) | 99,234 | 43,757 | |
85,601 | |||
Commercial Services & Supplies - 3.8% | |||
Cintas Corp. | 198,668 | 44,071 | |
Copart, Inc. (a) | 521,130 | 37,250 | |
KAR Auction Services, Inc. | 313,000 | 17,597 | |
98,918 | |||
Electrical Equipment - 2.1% | |||
AMETEK, Inc. | 331,447 | 27,142 | |
Fortive Corp. | 370,150 | 28,187 | |
55,329 | |||
Industrial Conglomerates - 3.4% | |||
ITT, Inc. | 279,617 | 16,112 | |
Roper Technologies, Inc. | 210,948 | 72,549 | |
88,661 | |||
Machinery - 2.1% | |||
IDEX Corp. | 223,627 | 34,150 | |
Toro Co. | 330,448 | 21,532 | |
55,682 | |||
Professional Services - 1.9% | |||
CoStar Group, Inc. (a) | 12,668 | 6,456 | |
Equifax, Inc. | 158,735 | 19,191 | |
Verisk Analytics, Inc. | 169,208 | 23,689 | |
49,336 | |||
TOTAL INDUSTRIALS | 433,527 | ||
INFORMATION TECHNOLOGY - 36.3% | |||
Communications Equipment - 1.7% | |||
Arista Networks, Inc. (a) | 59,160 | 14,470 | |
F5 Networks, Inc. (a) | 222,572 | 29,397 | |
43,867 | |||
Electronic Equipment & Components - 3.0% | |||
Amphenol Corp. Class A | 477,000 | 41,499 | |
CDW Corp. | 300,214 | 29,553 | |
Keysight Technologies, Inc. (a) | 114,000 | 8,565 | |
79,617 | |||
IT Services - 14.0% | |||
Adyen BV (c) | 1,398 | 1,126 | |
Broadridge Financial Solutions, Inc. | 132,479 | 16,543 | |
EPAM Systems, Inc. (a) | 72,467 | 12,507 | |
Fiserv, Inc. (a) | 749,748 | 64,373 | |
Global Payments, Inc. | 263,223 | 40,547 | |
Total System Services, Inc. | 894,000 | 110,433 | |
VeriSign, Inc. (a) | 489,029 | 95,351 | |
Worldpay, Inc. (a) | 208,751 | 25,392 | |
366,272 | |||
Semiconductors & Semiconductor Equipment - 9.6% | |||
Analog Devices, Inc. | 346,422 | 33,471 | |
Broadcom, Inc. | 28,452 | 7,160 | |
KLA-Tencor Corp. | 302,395 | 31,168 | |
Lam Research Corp. | 260,565 | 45,497 | |
NXP Semiconductors NV | 189,683 | 16,722 | |
ON Semiconductor Corp. (a) | 2,775,432 | 49,292 | |
Skyworks Solutions, Inc. | 392,954 | 26,183 | |
Xilinx, Inc. | 401,800 | 41,108 | |
250,601 | |||
Software - 8.0% | |||
Adobe, Inc. (a) | 49,917 | 13,523 | |
Black Knight, Inc. (a) | 270,149 | 15,315 | |
Cadence Design Systems, Inc. (a) | 408,100 | 25,943 | |
Check Point Software Technologies Ltd. (a) | 152,610 | 16,830 | |
Citrix Systems, Inc. | 409,373 | 38,530 | |
Fortinet, Inc. (a) | 248,000 | 17,975 | |
Intuit, Inc. | 43,927 | 10,756 | |
Parametric Technology Corp. (a) | 58,681 | 4,933 | |
Red Hat, Inc. (a) | 1,500 | 276 | |
ServiceNow, Inc. (a) | 30,050 | 7,871 | |
Synopsys, Inc. (a) | 38,973 | 4,538 | |
Workday, Inc. Class A (a) | 267,104 | 54,521 | |
211,011 | |||
TOTAL INFORMATION TECHNOLOGY | 951,368 | ||
MATERIALS - 0.3% | |||
Chemicals - 0.3% | |||
Sherwin-Williams Co. | 19,068 | 7,998 | |
REAL ESTATE - 2.7% | |||
Equity Real Estate Investment Trusts (REITs) - 2.7% | |||
Equity Lifestyle Properties, Inc. | 271,000 | 32,970 | |
SBA Communications Corp. Class A (a) | 171,700 | 37,158 | |
70,128 | |||
UTILITIES - 0.4% | |||
Independent Power and Renewable Electricity Producers - 0.4% | |||
NRG Energy, Inc. | 315,900 | 10,753 | |
TOTAL COMMON STOCKS | |||
(Cost $1,964,657) | 2,591,969 | ||
Money Market Funds - 1.7% | |||
Fidelity Cash Central Fund 2.41% (d) | 33,023,725 | 33,030 | |
Fidelity Securities Lending Cash Central Fund 2.42% (d)(e) | 12,200,534 | 12,202 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $45,230) | 45,232 | ||
TOTAL INVESTMENT IN SECURITIES - 100.6% | |||
(Cost $2,009,887) | 2,637,201 | ||
NET OTHER ASSETS (LIABILITIES) - (0.6)% | (15,266) | ||
NET ASSETS - 100% | $2,621,935 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $1,126,000 or 0.0% of net assets.
(d) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
(e) Investment made with cash collateral received from securities on loan.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
(Amounts in thousands) | |
Fidelity Cash Central Fund | $572 |
Fidelity Securities Lending Cash Central Fund | 16 |
Total | $588 |
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) | May 31, 2019 (Unaudited) | |
Assets | ||
Investment in securities, at value (including securities loaned of $12,183) — See accompanying schedule: Unaffiliated issuers (cost $1,964,657) | $2,591,969 | |
Fidelity Central Funds (cost $45,230) | 45,232 | |
Total Investment in Securities (cost $2,009,887) | $2,637,201 | |
Receivable for investments sold | 9,539 | |
Receivable for fund shares sold | 756 | |
Dividends receivable | 1,899 | |
Distributions receivable from Fidelity Central Funds | 67 | |
Prepaid expenses | 1 | |
Other receivables | 69 | |
Total assets | 2,649,532 | |
Liabilities | ||
Payable for investments purchased | $12,839 | |
Payable for fund shares redeemed | 1,289 | |
Accrued management fee | 748 | |
Other affiliated payables | 435 | |
Other payables and accrued expenses | 84 | |
Collateral on securities loaned | 12,202 | |
Total liabilities | 27,597 | |
Net Assets | $2,621,935 | |
Net Assets consist of: | ||
Paid in capital | $2,009,247 | |
Total distributable earnings (loss) | 612,688 | |
Net Assets | $2,621,935 | |
Net Asset Value and Maximum Offering Price | ||
Growth Strategies: | ||
Net Asset Value, offering price and redemption price per share ($2,419,749 ÷ 54,732 shares) | $44.21 | |
Class K: | ||
Net Asset Value, offering price and redemption price per share ($202,186 ÷ 4,540 shares) | $44.53 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Amounts in thousands | Six months ended May 31, 2019 (Unaudited) | |
Investment Income | ||
Dividends | $18,636 | |
Income from Fidelity Central Funds | 588 | |
Total income | 19,224 | |
Expenses | ||
Management fee | ||
Basic fee | $6,881 | |
Performance adjustment | (2,698) | |
Transfer agent fees | 2,152 | |
Accounting and security lending fees | 382 | |
Custodian fees and expenses | 18 | |
Independent trustees' fees and expenses | 7 | |
Registration fees | 36 | |
Audit | 41 | |
Legal | 5 | |
Miscellaneous | 9 | |
Total expenses before reductions | 6,833 | |
Expense reductions | (22) | |
Total expenses after reductions | 6,811 | |
Net investment income (loss) | 12,413 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | (21,178) | |
Fidelity Central Funds | (2) | |
Total net realized gain (loss) | (21,180) | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | 163,993 | |
Fidelity Central Funds | 2 | |
Total change in net unrealized appreciation (depreciation) | 163,995 | |
Net gain (loss) | 142,815 | |
Net increase (decrease) in net assets resulting from operations | $155,228 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Amounts in thousands | Six months ended May 31, 2019 (Unaudited) | Year ended November 30, 2018 |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $12,413 | $16,530 |
Net realized gain (loss) | (21,180) | 8,903 |
Change in net unrealized appreciation (depreciation) | 163,995 | 52,060 |
Net increase (decrease) in net assets resulting from operations | 155,228 | 77,493 |
Distributions to shareholders | (17,399) | (12,074) |
Share transactions - net increase (decrease) | (70,067) | (238,326) |
Total increase (decrease) in net assets | 67,762 | (172,907) |
Net Assets | ||
Beginning of period | 2,554,173 | 2,727,080 |
End of period | $2,621,935 | $2,554,173 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Growth Strategies Fund
Six months ended (Unaudited) May 31, | Years endedNovember 30, | |||||
2019 | 2018 | 2017 | 2016 | 2015 | 2014 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $41.90 | $40.96 | $33.87 | $33.91 | $32.44 | $27.66 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .20 | .25B | .16C | .16D | .04 | .11 |
Net realized and unrealized gain (loss) | 2.39 | .87 | 7.13 | (.16) | 1.53 | 4.72 |
Total from investment operations | 2.59 | 1.12 | 7.29 | – | 1.57 | 4.83 |
Distributions from net investment income | (.28) | (.16) | (.18) | (.04) | (.09) | (.05) |
Distributions from net realized gain | – | (.02) | (.02) | – | (.01) | – |
Total distributions | (.28) | (.18) | (.20) | (.04) | (.10) | (.05) |
Redemption fees added to paid in capitalA | – | – | –E | –E | –E | –E |
Net asset value, end of period | $44.21 | $41.90 | $40.96 | $33.87 | $33.91 | $32.44 |
Total ReturnF,G | 6.32% | 2.74% | 21.63% | .02% | 4.86% | 17.50% |
Ratios to Average Net AssetsH,I | ||||||
Expenses before reductions | .54%J | .59% | .78% | .94% | .91% | .72% |
Expenses net of fee waivers, if any | .54%J | .59% | .78% | .94% | .91% | .72% |
Expenses net of all reductions | .54%J | .59% | .78% | .94% | .91% | .72% |
Net investment income (loss) | .96%J | .59%B | .43%C | .49%D | .13% | .37% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $2,420 | $2,349 | $2,455 | $2,080 | $2,535 | $1,835 |
Portfolio turnover rateK | 52%J,L | 43%L | 73%L | 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 for periods of less than one year are not annualized.
G Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
H Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
J Annualized
K Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
L Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Fidelity Growth Strategies Fund Class K
Six months ended (Unaudited) May 31, | Years endedNovember 30, | |||||
2019 | 2018 | 2017 | 2016 | 2015 | 2014 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $42.23 | $41.29 | $34.14 | $34.17 | $32.70 | $27.88 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .23 | .31B | .21C | .21D | .10 | .17 |
Net realized and unrealized gain (loss) | 2.41 | .86 | 7.19 | (.14) | 1.52 | 4.76 |
Total from investment operations | 2.64 | 1.17 | 7.40 | .07 | 1.62 | 4.93 |
Distributions from net investment income | (.34) | (.21) | (.23) | (.10) | (.15) | (.11) |
Distributions from net realized gain | – | (.02) | (.02) | – | (.01) | – |
Total distributions | (.34) | (.23) | (.25) | (.10) | (.15)E | (.11) |
Redemption fees added to paid in capitalA | – | – | –F | –F | –F | –F |
Net asset value, end of period | $44.53 | $42.23 | $41.29 | $34.14 | $34.17 | $32.70 |
Total ReturnG,H | 6.41% | 2.84% | 21.81% | .20% | 5.00% | 17.75% |
Ratios to Average Net AssetsI,J | ||||||
Expenses before reductions | .41%K | .46% | .63% | .78% | .76% | .53% |
Expenses net of fee waivers, if any | .41%K | .46% | .63% | .78% | .76% | .53% |
Expenses net of all reductions | .41%K | .46% | .63% | .78% | .76% | .53% |
Net investment income (loss) | 1.09%K | .72%B | .57%C | .64%D | .28% | .56% |
Supplemental Data | ||||||
Net assets, end of period (in millions) | $202 | $205 | $272 | $475 | $699 | $385 |
Portfolio turnover rateL | 52%K,M | 43%M | 73%M | 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 for periods of less than one year are not annualized.
H Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
I Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.
K Annualized
L Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
M Portfolio turnover rate excludes securities received or delivered in-kind.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended May 31, 2019
(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 ranged from less than .005% to .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investments Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy.
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. During the period, dividend income has been increased $7,736 with a corresponding decrease to net unrealized appreciation (depreciation) as a result of a change in the prior period estimate, which had no impact on the total net assets or total return of the Fund.
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 $51 are included in the accompanying Statement of Assets and Liabilities in other receivables and other payables and accrued expenses, respectively.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction.
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 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 | $662,579 |
Gross unrealized depreciation | (35,349) |
Net unrealized appreciation (depreciation) | $627,230 |
Tax cost | $2,009,971 |
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and in-kind transactions, aggregated $660,280 and $726,003, respectively.
Unaffiliated Redemptions In-Kind. During the period, 99 shares of the Fund were redeemed in-kind for investments and cash with a value of $4,554. The net realized gain of $1,581 on investments delivered through in-kind redemptions is included in the accompanying Statement of Operations. The amount of the in-kind redemptions is included in share transactions in the accompanying Statement of Changes in Net Assets as well as the Notes to Financial Statements. The Fund recognized no gain or loss for federal income tax purposes.
Prior Fiscal Year Unaffiliated Redemptions In-Kind. During the prior period, 1,166 shares of the Fund were redeemed in-kind for investments and cash with a value of $49,867. The Fund had a net realized gain of $12,890 on investments delivered through the in-kind redemptions. The amount of the redemptions is included in share transactions activity shown in the accompanying Statement of Changes in Net Assets as well as the Notes to Financial Statements. The Fund recognized no gain or loss for federal income tax purposes.
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and an annualized group fee rate that averaged .24% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by the investment adviser, including any mutual funds previously advised by the investment adviser that are currently advised by Fidelity SelectCo, LLC, an affiliate of the investment adviser. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of +/- .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the 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 annualized management fee rate, including the performance adjustment, was .33% 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(a) | |
Growth Strategies | $2,105 | .18 |
Class K | 47 | .05 |
$2,152 |
(a) Annualized
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for each month. Prior to April 1, 2019, FSC had a separate agreement with the Fund for administration of the security lending program, based on the number and duration of lending transactions. For the period, the total fees paid for accounting and administration of securities lending were equivalent to an annualized rate of .03%.
Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were $14 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 $4 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. 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 $16. 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 $12 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 $9.
9. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
Six months ended May 31, 2019 | Year ended November 30, 2018 | |
Distributions to shareholders | ||
Growth Strategies | $15,750 | $10,565 |
Class K | 1,649 | 1,509 |
Total | $17,399 | $12,074 |
10. Share Transactions.
Share transactions for each class were as follows and may contain automatic conversions between classes or exchanges between affiliated funds:
Shares | Shares | Dollars | Dollars | |
Six months ended May 31, 2019 | Year ended November 30, 2018 | Six months ended May 31, 2019 | Year ended November 30, 2018 | |
Growth Strategies | ||||
Shares sold | 2,269 | 7,553 | $97,270 | $323,380 |
Reinvestment of distributions | 404 | 247 | 15,039 | 10,142 |
Shares redeemed | (4,012) | (11,655) | (168,328) | (497,572) |
Net increase (decrease) | (1,339) | (3,855) | $(56,019) | $(164,050) |
Class K | ||||
Shares sold | 222 | 623 | $9,559 | $26,706 |
Reinvestment of distributions | 44 | 36 | 1,649 | 1,509 |
Shares redeemed | (581)(a) | (2,402)(b) | (25,256)(a) | (102,491)(b) |
Net increase (decrease) | (315) | (1,743) | $(14,048) | $(74,276) |
(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 Unaffiliated 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.
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 (December 1, 2018 to May 31, 2019).
Actual Expenses
The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
Annualized Expense Ratio-A | Beginning Account Value December 1, 2018 | Ending Account Value May 31, 2019 | Expenses Paid During Period-B December 1, 2018 to May 31, 2019 | |
Growth Strategies | .54% | |||
Actual | $1,000.00 | $1,063.20 | $2.78 | |
Hypothetical-C | $1,000.00 | $1,022.24 | $2.72 | |
Class K | .41% | |||
Actual | $1,000.00 | $1,064.10 | $2.11 | |
Hypothetical-C | $1,000.00 | $1,022.89 | $2.07 |
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 182/365 (to reflect the one-half year period).
C 5% return per year before expenses
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Growth Strategies Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract with Fidelity Management & Research Company (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund. FMR and the sub-advisers are referred to herein as the Investment Advisers. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.
The Board meets regularly and, at each of its meetings, covers an extensive agenda of topics and materials and considers factors that are relevant to its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. The Board has established various standing committees (Committees), each composed of and chaired by Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of the fund's Advisory Contracts. The Board also meets as needed to review matters specifically related to the Board's annual consideration of the renewal of the Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through joint ad hoc committees to discuss certain matters relevant to all of the Fidelity funds.
At its January 2019 meeting, the Board unanimously determined to renew the fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the fund's management fee and total expense ratio relative to peer funds; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationships with the fund; and (iv) the extent to which, if any, economies of scale exist and would be realized as the fund grows, and whether any economies of scale are appropriately shared with fund shareholders.
In considering whether to renew the Advisory Contracts for the fund, the Board reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts was in the best interests of the fund and its shareholders and that the compensation payable under the Advisory Contracts was fair and reasonable. The Board's decision to renew the Advisory Contracts was not based on any single factor, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, was aware that shareholders of the fund have a broad range of investment choices available to them, including a wide choice among funds offered by Fidelity's competitors, and that the fund's shareholders, who have the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, which is part of the Fidelity family of funds.
Nature, Extent, and Quality of Services Provided. The Board considered Fidelity's staffing as it relates to the fund, including the backgrounds of investment personnel of Fidelity, and also considered the fund's investment objective, strategies, and related investment philosophy. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the investment personnel compensation program and whether this structure provides appropriate incentives to act in the best interests of the fund. Additionally, the Board considered the portfolio managers' investments, if any, in the funds that they manage.Resources Dedicated to Investment Management and Support Services. The Board and the Fund Oversight and Research Committees reviewed the general qualifications and capabilities of Fidelity's investment staff, including its size, education, experience, and resources, as well as Fidelity's approach to recruiting, training, managing, and compensating investment personnel. The Board noted that Fidelity has continued to increase the resources devoted to non-U.S. offices, including expansion of Fidelity's global investment organization. The Board also noted that Fidelity's analysts have extensive resources, tools and capabilities that allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and guarantors. Further, the Board considered that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered Fidelity's trading, risk management, compliance, and technology and operations capabilities and resources, which are integral parts of the investment management process.Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by the Investment Advisers and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for the fund; (ii) the nature and extent of the supervision of third party service providers, principally custodians, subcustodians, and pricing vendors; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures. The Board also reviewed the allocation of fund brokerage, including allocations to brokers affiliated with the Investment Advisers, the use of brokerage commissions to pay fund expenses, and the use of "soft" commission dollars to pay for research services.The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value and convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through telephone representatives and over the Internet, investor education materials and asset allocation tools, and the expanded availability of Fidelity Investor Centers.The Board noted that it and the boards of certain other Fidelity funds had formed an ad hoc Committee on Transfer Agency Fees to review the variety of transfer agency fee structures throughout the industry and Fidelity's competitive positioning with respect to industry participants.Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including: (i) continuing to dedicate additional resources to Fidelity's investment research process, which includes meetings with management of issuers of securities in which the funds invest, and to the support of the senior management team that oversees asset management; (ii) continuing efforts to enhance Fidelity's global research capabilities; (iii) launching new funds and making other enhancements to meet client needs; (iv) launching new share classes of existing funds; (v) eliminating purchase minimums and broadening eligibility requirements for certain funds and share classes; (vi) reducing management fees and total expenses for certain growth equity funds and index funds; (vii) lowering expense caps for certain existing funds and classes, and converting certain voluntary expense caps to contractual caps, to reduce expenses borne by shareholders; (viii) eliminating short-term redemption fees for funds that had such fees; (ix) rationalizing product lines and gaining increased efficiencies from fund mergers and share class consolidations; (x) continuing to develop, acquire and implement systems and technology to improve services to the funds and shareholders, strengthen information security, and increase efficiency; and (xi) continuing to implement enhancements to further strengthen Fidelity's product line to increase investors' probability of success in achieving their investment goals, including retirement income goals.Investment Performance. The Board considered whether the fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions and its performance history.The Board took into account discussions that occur at Board meetings throughout the year with representatives of the Investment Advisers about fund investment performance. In this regard the Board noted that as part of regularly scheduled fund reviews and other reports to the Board on fund performance, the Board considers annualized return information for the fund for different time periods, measured against an appropriate securities market index ("benchmark index") and a peer group of funds with similar objectives ("peer group"), if any. In its evaluation of fund investment performance, the Board gave particular attention to information indicating changes in performance of certain Fidelity funds for specific time periods and discussed with the Investment Advisers the reasons for any overperformance or underperformance.In addition to reviewing absolute and relative fund performance, the Independent Trustees periodically consider the appropriateness of fund performance metrics in evaluating the results achieved. In general, the Independent Trustees believe that fund performance should be evaluated based on net performance (after fees and expenses) of both the highest performing and lowest performing fund share classes, where applicable, compared to appropriate benchmark indices, over appropriate time periods that may include full market cycles, and compared to peer groups, as applicable, over the same periods, taking into account relevant factors including the following: general market conditions; issuer-specific information; and fund cash flows and other factors.The Independent Trustees recognize that shareholders evaluate performance on a net basis over their own holding periods, for which one-, three-, and five-year periods are often used as a proxy. For this reason, the performance information reviewed by the Board also included net cumulative total return information for the fund and an appropriate benchmark index and peer group for the most recent one-, three-, and five-year periods ended June 30, 2018, as shown below. Returns are shown compared to the 25th percentile (top of box, 75% beaten) and 75th percentile (bottom of box, 25% beaten) of the peer universe.Fidelity Growth Strategies Fund
Fidelity Growth Strategies Fund
The Board considered that effective February 1, 2017, the fund's individual fund fee rate was reduced from 0.35% to 0.30%. The Board considered that the chart below reflects the fund's lower management fee rate for 2016, as if the lower fee rate were in effect for the entire year.
FEG-SANN-0719
1.704532.121
Fidelity® Series Growth Company Fund Semi-Annual Report May 31, 2019 |
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of a fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a financial advisor, broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from a fund electronically, by contacting your financial intermediary. For Fidelity customers, visit Fidelity's web site or call Fidelity using the contact information listed below.
You may elect to receive all future reports in paper free of charge. If you wish to continue receiving paper copies of your shareholder reports, you may contact your financial intermediary or, if you are a Fidelity customer, visit Fidelity’s website, or call Fidelity at the applicable toll-free number listed below. Your election to receive reports in paper will apply to all funds held with the fund complex/your financial intermediary.
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Contents
Board Approval of Investment Advisory Contracts and Management Fees |
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-PORT. Forms N-PORT are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-PORT may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Investment Summary (Unaudited)
Top Ten Stocks as of May 31, 2019
% of fund's net assets | |
Amazon.com, Inc. | 6.7 |
Apple, Inc. | 4.4 |
NVIDIA Corp. | 4.0 |
Alphabet, Inc. Class A | 4.0 |
Microsoft Corp. | 3.7 |
Salesforce.com, Inc. | 3.5 |
lululemon athletica, Inc. | 3.1 |
Facebook, Inc. Class A | 2.9 |
Shopify, Inc. Class A | 2.3 |
Alphabet, Inc. Class C | 2.1 |
36.7 |
Top Five Market Sectors as of May 31, 2019
% of fund's net assets | |
Information Technology | 33.5 |
Consumer Discretionary | 20.9 |
Health Care | 18.4 |
Communication Services | 13.3 |
Industrials | 5.0 |
Asset Allocation (% of fund's net assets)
As of May 31, 2019 * | ||
Stocks | 98.1% | |
Convertible Securities | 1.3% | |
Short-Term Investments and Net Other Assets (Liabilities) | 0.6% |
* Foreign investments - 10.1%
Schedule of Investments May 31, 2019 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 97.8% | |||
Shares | Value | ||
COMMUNICATION SERVICES - 13.3% | |||
Diversified Telecommunication Services - 0.1% | |||
Verizon Communications, Inc. | 304,900 | $16,571,315 | |
Entertainment - 3.2% | |||
Activision Blizzard, Inc. | 1,056,500 | 45,820,405 | |
Electronic Arts, Inc. (a) | 335,400 | 31,219,032 | |
Lions Gate Entertainment Corp. Class A | 21,900 | 323,463 | |
Live Nation Entertainment, Inc. (a) | 288,500 | 17,546,570 | |
NetEase, Inc. ADR | 47,900 | 11,908,419 | |
Netflix, Inc. (a) | 519,600 | 178,368,288 | |
Nintendo Co. Ltd. | 17,400 | 6,142,165 | |
The Walt Disney Co. | 459,800 | 60,711,992 | |
352,040,334 | |||
Interactive Media & Services - 9.3% | |||
Alphabet, Inc.: | |||
Class A (a) | 391,470 | 433,161,555 | |
Class C (a) | 210,656 | 232,486,281 | |
CarGurus, Inc. Class A (a) | 100,500 | 3,433,080 | |
Facebook, Inc. Class A (a) | 1,755,558 | 311,558,878 | |
Match Group, Inc. (b) | 51,500 | 3,535,475 | |
Pinterest, Inc. Class A (b) | 66,000 | 1,644,720 | |
Snap, Inc. Class A (a)(b) | 1,062,197 | 12,629,522 | |
Tencent Holdings Ltd. | 286,100 | 11,929,699 | |
Twitter, Inc. (a) | 133,390 | 4,860,732 | |
1,015,239,942 | |||
Media - 0.2% | |||
Comcast Corp. Class A | 556,600 | 22,820,600 | |
Turn, Inc. (Escrow) (a)(c)(d) | 205,882 | 136,912 | |
22,957,512 | |||
Wireless Telecommunication Services - 0.5% | |||
T-Mobile U.S., Inc. (a) | 680,300 | 49,961,232 | |
TOTAL COMMUNICATION SERVICES | 1,456,770,335 | ||
CONSUMER DISCRETIONARY - 20.5% | |||
Auto Components - 0.0% | |||
Garrett Motion, Inc. (a)(b) | 31,650 | 486,777 | |
Automobiles - 0.5% | |||
Tesla, Inc. (a)(b) | 281,000 | 52,029,960 | |
Hotels, Restaurants & Leisure - 1.1% | |||
Chipotle Mexican Grill, Inc. (a) | 18,900 | 12,473,433 | |
Hyatt Hotels Corp. Class A | 57,400 | 4,146,576 | |
Marriott International, Inc. Class A | 30,700 | 3,832,588 | |
McDonald's Corp. | 97,700 | 19,370,979 | |
Planet Fitness, Inc. (a) | 86,400 | 6,607,008 | |
Sea Ltd. ADR (a) | 512,600 | 14,578,344 | |
Shake Shack, Inc. Class A (a) | 40,400 | 2,478,540 | |
Starbucks Corp. | 557,700 | 42,418,662 | |
YETI Holdings, Inc.(b) | 114,300 | 2,734,056 | |
Yum China Holdings, Inc. | 310,500 | 12,423,105 | |
Yum! Brands, Inc. | 30,100 | 3,080,735 | |
124,144,026 | |||
Household Durables - 1.2% | |||
iRobot Corp. (a)(b) | 291,800 | 25,418,698 | |
Roku, Inc. Class A (a) | 1,127,974 | 101,968,850 | |
127,387,548 | |||
Internet & Direct Marketing Retail - 9.3% | |||
Alibaba Group Holding Ltd. sponsored ADR (a) | 295,700 | 44,136,182 | |
Amazon.com, Inc. (a) | 412,799 | 732,747,108 | |
Ctrip.com International Ltd. ADR (a) | 123,200 | 4,257,792 | |
eBay, Inc. | 162,400 | 5,835,032 | |
Etsy, Inc. (a) | 46,800 | 2,916,108 | |
Expedia, Inc. | 66,300 | 7,624,500 | |
JD.com, Inc. sponsored ADR (a) | 761,600 | 19,618,816 | |
Ocado Group PLC (a) | 983,800 | 14,856,822 | |
The Booking Holdings, Inc. (a) | 18,400 | 30,474,448 | |
The Honest Co., Inc. (a)(c)(d) | 9,496 | 106,545 | |
Wayfair LLC Class A (a) | 1,086,505 | 156,467,585 | |
1,019,040,938 | |||
Leisure Products - 0.0% | |||
Callaway Golf Co. | 387,600 | 5,697,720 | |
Multiline Retail - 0.4% | |||
Dollar General Corp. | 66,700 | 8,489,576 | |
Dollar Tree, Inc. (a) | 267,800 | 27,205,802 | |
Ollie's Bargain Outlet Holdings, Inc. (a) | 88,700 | 8,756,464 | |
Target Corp. | 30,600 | 2,461,770 | |
46,913,612 | |||
Specialty Retail - 1.7% | |||
Carvana Co. Class A (a)(b) | 146,600 | 8,485,208 | |
Five Below, Inc. (a) | 30,400 | 3,913,392 | |
Lowe's Companies, Inc. | 439,310 | 40,978,837 | |
RH (a)(b) | 272,344 | 23,190,092 | |
The Home Depot, Inc. | 480,700 | 91,260,895 | |
TJX Companies, Inc. | 362,200 | 18,215,038 | |
186,043,462 | |||
Textiles, Apparel & Luxury Goods - 6.3% | |||
adidas AG | 684,791 | 195,996,655 | |
Allbirds, Inc. (c)(d) | 16,248 | 856,432 | |
Canada Goose Holdings, Inc. (a) | 329,171 | 11,088,455 | |
lululemon athletica, Inc. (a) | 2,050,320 | 339,512,489 | |
NIKE, Inc. Class B | 548,400 | 42,303,576 | |
Rubius Therapeutics, Inc. (e) | 461,018 | 6,666,320 | |
Skechers U.S.A., Inc. Class A (sub. vtg.) (a) | 2,542,600 | 71,014,818 | |
Tory Burch LLC (a)(c)(d)(f) | 248,840 | 13,857,900 | |
Under Armour, Inc. Class C (non-vtg.) (a) | 196,059 | 3,966,274 | |
VF Corp. | 94,700 | 7,754,036 | |
693,016,955 | |||
TOTAL CONSUMER DISCRETIONARY | 2,254,760,998 | ||
CONSUMER STAPLES - 4.4% | |||
Beverages - 2.3% | |||
Fever-Tree Drinks PLC | 463,268 | 15,544,121 | |
Keurig Dr. Pepper, Inc. | 1,411,500 | 39,790,185 | |
Luckin Coffee, Inc. ADR (b) | 112,300 | 2,257,230 | |
Monster Beverage Corp. (a) | 1,536,500 | 95,047,890 | |
PepsiCo, Inc. | 235,300 | 30,118,400 | |
The Coca-Cola Co. | 1,455,900 | 71,528,367 | |
254,286,193 | |||
Food & Staples Retailing - 0.8% | |||
Costco Wholesale Corp. | 209,800 | 50,263,884 | |
Kroger Co. | 1,320,200 | 30,113,762 | |
80,377,646 | |||
Food Products - 0.3% | |||
Darling International, Inc. (a) | 357,100 | 6,749,190 | |
Lamb Weston Holdings, Inc. | 185,600 | 10,996,800 | |
Mondelez International, Inc. | 265,600 | 13,505,760 | |
The Hershey Co. | 38,200 | 5,040,872 | |
36,292,622 | |||
Household Products - 0.2% | |||
Church & Dwight Co., Inc. | 187,000 | 13,914,670 | |
Colgate-Palmolive Co. | 76,900 | 5,353,778 | |
Kimberly-Clark Corp. | 22,400 | 2,864,736 | |
22,133,184 | |||
Personal Products - 0.4% | |||
Coty, Inc. Class A (b) | 1,341,100 | 16,549,174 | |
Godrej Consumer Products Ltd. | 98,896 | 977,116 | |
Herbalife Nutrition Ltd. (a) | 244,500 | 10,215,210 | |
Unilever NV (Certificaten Van Aandelen) (Bearer) | 191,400 | 11,521,028 | |
39,262,528 | |||
Tobacco - 0.4% | |||
Altria Group, Inc. | 809,900 | 39,733,694 | |
JUUL Labs, Inc. Class A (c)(d) | 13,297 | 3,636,730 | |
Philip Morris International, Inc. | 23,700 | 1,827,981 | |
45,198,405 | |||
TOTAL CONSUMER STAPLES | 477,550,578 | ||
ENERGY - 1.3% | |||
Energy Equipment & Services - 0.1% | |||
Baker Hughes, a GE Co. Class A | 288,600 | 6,178,926 | |
Oil, Gas & Consumable Fuels - 1.2% | |||
Cabot Oil & Gas Corp. | 488,000 | 12,209,760 | |
Continental Resources, Inc. (a) | 30,900 | 1,081,500 | |
EOG Resources, Inc. | 358,500 | 29,353,980 | |
Hess Corp. | 849,000 | 47,425,140 | |
Noble Energy, Inc. | 331,000 | 7,083,400 | |
PDC Energy, Inc. (a) | 84,738 | 2,586,204 | |
Range Resources Corp. | 365,800 | 2,860,556 | |
Reliance Industries Ltd. | 1,451,431 | 27,723,272 | |
Valero Energy Corp. | 96,000 | 6,758,400 | |
137,082,212 | |||
TOTAL ENERGY | 143,261,138 | ||
FINANCIALS - 1.8% | |||
Banks - 0.7% | |||
Bank of America Corp. | 363,100 | 9,658,460 | |
HDFC Bank Ltd. sponsored ADR | 313,211 | 38,888,278 | |
JPMorgan Chase & Co. | 251,400 | 26,638,344 | |
Signature Bank | 16,600 | 1,901,530 | |
Wells Fargo & Co. | 15,200 | 674,424 | |
77,761,036 | |||
Capital Markets - 0.8% | |||
BlackRock, Inc. Class A | 64,100 | 26,637,396 | |
Charles Schwab Corp. | 1,177,300 | 48,987,453 | |
Edelweiss Financial Services Ltd. | 1,691,887 | 4,928,263 | |
T. Rowe Price Group, Inc. | 96,100 | 9,719,554 | |
90,272,666 | |||
Consumer Finance - 0.3% | |||
American Express Co. | 135,100 | 15,497,321 | |
Discover Financial Services | 122,858 | 9,159,064 | |
24,656,385 | |||
Insurance - 0.0% | |||
Hiscox Ltd. | 79,400 | 1,642,241 | |
TOTAL FINANCIALS | 194,332,328 | ||
HEALTH CARE - 17.8% | |||
Biotechnology - 11.5% | |||
AbbVie, Inc. | 310,884 | 23,847,912 | |
ACADIA Pharmaceuticals, Inc. (a)(b) | 2,148,487 | 51,542,203 | |
Agios Pharmaceuticals, Inc. (a)(b) | 835,528 | 38,576,328 | |
Alector, Inc. | 75,800 | 1,281,778 | |
Alexion Pharmaceuticals, Inc. (a) | 333,500 | 37,912,280 | |
Alkermes PLC (a) | 1,025,659 | 22,092,695 | |
Allakos, Inc. (a) | 33,200 | 1,301,440 | |
Allogene Therapeutics, Inc. (b) | 253,407 | 6,646,866 | |
Allogene Therapeutics, Inc. (e) | 80,261 | 2,105,246 | |
Alnylam Pharmaceuticals, Inc. (a) | 1,457,007 | 98,377,113 | |
Amgen, Inc. | 282,700 | 47,126,090 | |
AnaptysBio, Inc. (a) | 148,600 | 10,819,566 | |
Argenx SE ADR (a) | 31,358 | 3,876,790 | |
Array BioPharma, Inc. (a) | 1,316,500 | 34,781,930 | |
aTyr Pharma, Inc. | 398,874 | 172,314 | |
Axcella Health, Inc. | 68,200 | 973,214 | |
Axcella Health, Inc. | 126,121 | 1,619,772 | |
BeiGene Ltd. | 454,500 | 4,220,599 | |
BeiGene Ltd. ADR (a)(b) | 649,336 | 76,576,194 | |
Biogen, Inc. (a) | 16,600 | 3,640,214 | |
bluebird bio, Inc. (a)(b) | 709,165 | 85,043,067 | |
Blueprint Medicines Corp. (a) | 131,100 | 9,963,600 | |
Calyxt, Inc. (a) | 460,500 | 5,848,350 | |
Celgene Corp. (a) | 181,600 | 17,032,264 | |
Cellectis SA sponsored ADR (a) | 290,045 | 4,605,915 | |
ChemoCentryx, Inc. (a) | 609,000 | 6,869,520 | |
Cibus Corp.: | |||
Series C (a)(c)(d)(f) | 1,142,857 | 1,939,901 | |
Series D (a)(c)(d)(f) | 750,960 | 938,700 | |
Coherus BioSciences, Inc. (a)(b) | 279,992 | 5,291,849 | |
Constellation Pharmaceuticals, Inc. | 47,200 | 406,864 | |
Constellation Pharmaceuticals, Inc. (e) | 83,878 | 723,028 | |
Crinetics Pharmaceuticals, Inc. (a) | 52,000 | 1,366,560 | |
CytomX Therapeutics, Inc. (a) | 93,539 | 903,587 | |
Denali Therapeutics, Inc. (a)(b) | 154,300 | 2,942,501 | |
Evelo Biosciences, Inc. (b) | 179,100 | 1,339,668 | |
Evelo Biosciences, Inc. (e) | 230,736 | 1,725,905 | |
Exact Sciences Corp. (a) | 72,800 | 7,544,264 | |
Exelixis, Inc. (a) | 2,116,284 | 41,458,004 | |
Fate Therapeutics, Inc. (a) | 731,373 | 14,100,871 | |
Five Prime Therapeutics, Inc. (a) | 382,500 | 3,213,000 | |
Global Blood Therapeutics, Inc. (a) | 410,800 | 24,968,424 | |
Homology Medicines, Inc. (a) | 265,388 | 5,371,453 | |
Intellia Therapeutics, Inc. (a)(b) | 160,038 | 2,221,327 | |
Intercept Pharmaceuticals, Inc. (a) | 58,900 | 4,878,098 | |
Ionis Pharmaceuticals, Inc. (a) | 2,307,785 | 151,390,696 | |
Iovance Biotherapeutics, Inc. (a) | 32,800 | 536,280 | |
Ironwood Pharmaceuticals, Inc. Class A (a) | 1,167,656 | 12,762,480 | |
Jounce Therapeutics, Inc. (a) | 20,400 | 90,780 | |
Kaleido Biosciences, Inc. (a)(b) | 135,200 | 2,119,936 | |
Kaleido Biosciences, Inc. | 106,348 | 1,584,160 | |
Kiniksa Pharmaceuticals Ltd. (b) | 88,338 | 1,347,155 | |
Lexicon Pharmaceuticals, Inc. (a)(b) | 1,629,777 | 8,768,200 | |
Macrogenics, Inc. (a) | 105,500 | 1,934,870 | |
Mirati Therapeutics, Inc. (a) | 66,600 | 4,514,814 | |
Moderna, Inc. (b) | 173,700 | 3,609,486 | |
Moderna, Inc. | 1,478,237 | 30,410,587 | |
Momenta Pharmaceuticals, Inc. (a) | 1,803,395 | 20,973,484 | |
Neon Therapeutics, Inc. | 263,154 | 1,284,192 | |
Principia Biopharma, Inc. | 53,700 | 1,571,262 | |
Protagonist Therapeutics, Inc. (a) | 254,300 | 2,558,258 | |
Prothena Corp. PLC (a) | 331,177 | 3,086,570 | |
Regeneron Pharmaceuticals, Inc. (a) | 159,000 | 47,973,480 | |
Rigel Pharmaceuticals, Inc. (a) | 3,327,312 | 7,087,175 | |
Rubius Therapeutics, Inc. | 473,100 | 6,841,026 | |
Sage Therapeutics, Inc. (a) | 678,534 | 116,619,639 | |
Sarepta Therapeutics, Inc. (a) | 64,800 | 7,377,480 | |
Scholar Rock Holding Corp. | 170,049 | 3,118,699 | |
Seres Therapeutics, Inc. (a)(b) | 604,876 | 2,062,627 | |
Sienna Biopharmaceuticals, Inc. (a) | 620,556 | 726,051 | |
Synthorx, Inc. (b) | 107,844 | 1,547,561 | |
Syros Pharmaceuticals, Inc. (a) | 649,260 | 3,830,634 | |
Syros Pharmaceuticals, Inc. (a)(e) | 301,001 | 1,775,906 | |
Syros Pharmaceuticals, Inc. warrants 10/10/22 (a)(d) | 34,075 | 51,113 | |
Translate Bio, Inc. (e) | 518,118 | 5,429,877 | |
Translate Bio, Inc. | 174,000 | 1,823,520 | |
Ultragenyx Pharmaceutical, Inc. (a) | 150,100 | 8,244,993 | |
uniQure B.V. (a) | 252,700 | 14,987,637 | |
UNITY Biotechnology, Inc. (b) | 608,260 | 4,963,402 | |
Vertex Pharmaceuticals, Inc. (a) | 118,200 | 19,642,476 | |
Wuxi Biologics (Cayman), Inc. (a)(e) | 1,049,000 | 9,915,225 | |
Xencor, Inc. (a) | 392,000 | 12,089,280 | |
Zai Lab Ltd. ADR (a)(b) | 596,315 | 15,629,416 | |
1,258,467,691 | |||
Health Care Equipment & Supplies - 3.2% | |||
Abbott Laboratories | 189,621 | 14,435,847 | |
Align Technology, Inc. (a) | 21,134 | 6,009,453 | |
Boston Scientific Corp. (a) | 537,900 | 20,660,739 | |
Danaher Corp. | 369,900 | 48,830,499 | |
DexCom, Inc. (a) | 232,900 | 28,250,770 | |
Genmark Diagnostics, Inc. (a) | 550,700 | 3,684,183 | |
Insulet Corp. (a) | 527,520 | 57,916,421 | |
Intuitive Surgical, Inc. (a) | 125,321 | 58,255,467 | |
Novocure Ltd. (a) | 1,198,651 | 63,672,341 | |
Penumbra, Inc. (a) | 275,392 | 39,298,438 | |
Presbia PLC (a) | 443,695 | 46,588 | |
Shockwave Medical, Inc. (a)(b) | 104,000 | 6,218,160 | |
Shockwave Medical, Inc. | 83,221 | 4,478,205 | |
Wright Medical Group NV (a) | 202,500 | 6,220,800 | |
357,977,911 | |||
Health Care Providers & Services - 1.0% | |||
Centene Corp. (a) | 102,700 | 5,930,925 | |
G1 Therapeutics, Inc. (a) | 99,900 | 2,093,904 | |
Humana, Inc. | 15,600 | 3,819,816 | |
Laboratory Corp. of America Holdings (a) | 17,900 | 2,910,719 | |
Notre Dame Intermedica Participacoes SA | 391,700 | 4,092,738 | |
OptiNose, Inc. (a)(b) | 460,075 | 3,491,969 | |
OptiNose, Inc. (a)(e) | 301,785 | 2,290,548 | |
UnitedHealth Group, Inc. | 344,200 | 83,227,560 | |
107,858,179 | |||
Health Care Technology - 0.1% | |||
Castlight Health, Inc. Class B (a) | 749,800 | 2,451,846 | |
Teladoc Health, Inc. (a)(b) | 96,300 | 5,596,956 | |
8,048,802 | |||
Life Sciences Tools & Services - 0.1% | |||
Illumina, Inc. (a) | 12,062 | 3,701,948 | |
Thermo Fisher Scientific, Inc. | 51,400 | 13,722,772 | |
17,424,720 | |||
Pharmaceuticals - 1.9% | |||
Adimab LLC (a)(c)(d)(f) | 762,787 | 34,035,556 | |
Akcea Therapeutics, Inc. (a)(b) | 1,459,039 | 30,698,181 | |
Bristol-Myers Squibb Co. | 218,500 | 9,913,345 | |
Cyclerion Therapeutics, Inc. (a) | 124,005 | 1,729,870 | |
Cyclerion Therapeutics, Inc. (c) | 150,550 | 2,100,173 | |
Hookipa Pharma, Inc. | 39,500 | 338,910 | |
InflaRx NV (a) | 45,400 | 1,633,946 | |
Intra-Cellular Therapies, Inc. (a) | 1,068,252 | 13,876,593 | |
Jiangsu Hengrui Medicine Co. Ltd. (A Shares) | 50,880 | 458,031 | |
MyoKardia, Inc. (a) | 516,700 | 24,067,886 | |
Nektar Therapeutics (a) | 1,496,964 | 46,884,912 | |
Rhythm Pharmaceuticals, Inc. (a) | 102,082 | 2,571,446 | |
RPI International Holdings LP (a)(c)(d) | 35,220 | 5,375,276 | |
Stemcentrx, Inc. rights 12/31/21 (a)(d) | 568,100 | 693,082 | |
The Medicines Company (a) | 639,723 | 22,806,125 | |
Theravance Biopharma, Inc. (a) | 365,812 | 6,079,795 | |
Turning Point Therapeutics, Inc. | 65,600 | 2,284,192 | |
205,547,319 | |||
TOTAL HEALTH CARE | 1,955,324,622 | ||
INDUSTRIALS - 4.9% | |||
Aerospace & Defense - 1.2% | |||
Lockheed Martin Corp. | 25,400 | 8,598,916 | |
Space Exploration Technologies Corp. Class A (a)(c)(d) | 137,569 | 28,064,076 | |
The Boeing Co. | 228,200 | 77,955,402 | |
United Technologies Corp. | 109,100 | 13,779,330 | |
128,397,724 | |||
Air Freight & Logistics - 0.2% | |||
FedEx Corp. | 20,900 | 3,224,452 | |
United Parcel Service, Inc. Class B | 168,200 | 15,629,144 | |
18,853,596 | |||
Airlines - 1.0% | |||
Azul SA sponsored ADR (a) | 128,400 | 3,822,468 | |
Delta Air Lines, Inc. | 163,100 | 8,399,650 | |
JetBlue Airways Corp. (a) | 1,081,400 | 18,632,522 | |
Ryanair Holdings PLC sponsored ADR (a) | 113,310 | 7,390,078 | |
Southwest Airlines Co. | 384,300 | 18,292,680 | |
Spirit Airlines, Inc. (a) | 106,300 | 4,898,304 | |
United Continental Holdings, Inc. (a) | 143,800 | 11,166,070 | |
Wheels Up Partners Holdings LLC: | |||
Series B (a)(c)(d)(f) | 1,843,115 | 6,414,040 | |
Series C (a)(c)(d)(f) | 670,590 | 2,333,653 | |
Series D (a)(c)(d)(f) | 768,671 | 2,674,975 | |
Wizz Air Holdings PLC (a)(e) | 765,173 | 30,317,375 | |
114,341,815 | |||
Building Products - 0.1% | |||
Resideo Technologies, Inc. (a) | 547,033 | 10,765,609 | |
Electrical Equipment - 0.2% | |||
AMETEK, Inc. | 5,400 | 442,206 | |
Eaton Corp. PLC | 64,700 | 4,819,503 | |
Emerson Electric Co. | 118,000 | 7,108,320 | |
Fortive Corp. | 201,000 | 15,306,150 | |
27,676,179 | |||
Industrial Conglomerates - 0.7% | |||
3M Co. | 97,600 | 15,591,600 | |
Honeywell International, Inc. | 349,700 | 57,459,207 | |
73,050,807 | |||
Machinery - 0.5% | |||
Caterpillar, Inc. | 56,200 | 6,733,322 | |
Deere & Co. | 79,000 | 11,073,430 | |
Illinois Tool Works, Inc. | 67,800 | 9,467,592 | |
Ingersoll-Rand PLC | 31,800 | 3,763,212 | |
Xylem, Inc. | 299,100 | 22,199,202 | |
53,236,758 | |||
Professional Services - 0.0% | |||
CoStar Group, Inc. (a) | 6,600 | 3,363,624 | |
Road & Rail - 1.0% | |||
Lyft, Inc. (b) | 4,500 | 259,290 | |
Lyft, Inc. | 226,423 | 11,741,844 | |
Uber Technologies, Inc. | 1,147,704 | 41,740,847 | |
Uber Technologies, Inc. (b) | 171,200 | 6,918,192 | |
Union Pacific Corp. | 304,800 | 50,834,544 | |
111,494,717 | |||
TOTAL INDUSTRIALS | 541,180,829 | ||
INFORMATION TECHNOLOGY - 33.2% | |||
Communications Equipment - 0.3% | |||
Arista Networks, Inc. (a) | 37,600 | 9,196,584 | |
Cisco Systems, Inc. | 55,600 | 2,892,868 | |
Infinera Corp. (a) | 3,694,200 | 11,488,962 | |
NETGEAR, Inc. (a) | 328,654 | 8,282,081 | |
31,860,495 | |||
Electronic Equipment & Components - 0.2% | |||
Arlo Technologies, Inc. | 1,526,457 | 5,235,748 | |
TE Connectivity Ltd. | 22,500 | 1,895,175 | |
Trimble, Inc. (a) | 424,700 | 16,945,530 | |
24,076,453 | |||
Internet Software & Services - 0.0% | |||
Farfetch Ltd. Class A (b) | 251,300 | 5,038,565 | |
IT Services - 7.2% | |||
Actua Corp. (a)(d) | 546,564 | 896,365 | |
Adyen BV (e) | 1,962 | 1,579,884 | |
Cognizant Technology Solutions Corp. Class A | 120,000 | 7,431,600 | |
Elastic NV (b) | 57,000 | 4,676,850 | |
Fastly, Inc. Class A | 24,200 | 503,360 | |
IBM Corp. | 20,400 | 2,590,596 | |
MasterCard, Inc. Class A | 541,900 | 136,282,431 | |
MongoDB, Inc. Class A (a) | 27,000 | 3,789,180 | |
Okta, Inc. (a) | 92,900 | 10,518,138 | |
PayPal Holdings, Inc. (a) | 1,342,100 | 147,295,475 | |
Shopify, Inc. Class A (a) | 913,649 | 251,354,871 | |
Square, Inc. (a) | 746,800 | 46,264,260 | |
Visa, Inc. Class A | 967,200 | 156,038,376 | |
Wix.com Ltd. (a) | 125,307 | 17,209,663 | |
786,431,049 | |||
Semiconductors & Semiconductor Equipment - 7.0% | |||
Advanced Micro Devices, Inc. (a) | 2,612,300 | 71,603,143 | |
Applied Materials, Inc. | 265,600 | 10,276,064 | |
ASML Holding NV | 84,600 | 15,909,030 | |
Broadcom, Inc. | 56,736 | 14,277,047 | |
Cirrus Logic, Inc. (a) | 128,800 | 4,813,256 | |
Cree, Inc. (a) | 278,166 | 15,338,073 | |
Intel Corp. | 16,300 | 717,852 | |
KLA-Tencor Corp. | 55,400 | 5,710,078 | |
Marvell Technology Group Ltd. | 490,200 | 10,931,460 | |
Micron Technology, Inc. (a) | 360,800 | 11,765,688 | |
NVIDIA Corp. | 3,259,000 | 441,464,140 | |
Qualcomm, Inc. | 251,600 | 16,811,912 | |
Silicon Laboratories, Inc. (a) | 854,943 | 79,997,017 | |
Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR | 292,400 | 11,213,540 | |
Texas Instruments, Inc. | 385,300 | 40,190,643 | |
Xilinx, Inc. | 126,000 | 12,891,060 | |
763,910,003 | |||
Software - 13.7% | |||
2U, Inc. (a) | 176,580 | 6,708,274 | |
Adobe, Inc. (a) | 397,800 | 107,764,020 | |
Aspen Technology, Inc. (a) | 54,200 | 6,157,662 | |
Atlassian Corp. PLC (a) | 106,700 | 13,431,396 | |
Autodesk, Inc. (a) | 407,400 | 65,554,734 | |
Avalara, Inc. | 13,549 | 916,454 | |
Black Knight, Inc. (a) | 127,400 | 7,222,306 | |
Cadence Design Systems, Inc. (a) | 69,700 | 4,430,829 | |
Coupa Software, Inc. (a) | 109,100 | 11,914,811 | |
CyberArk Software Ltd. (a) | 33,000 | 4,357,650 | |
DocuSign, Inc. (a) | 14,800 | 829,688 | |
Domo, Inc. (e) | 40,872 | 1,369,212 | |
HubSpot, Inc. (a) | 401,300 | 69,537,264 | |
Intuit, Inc. | 129,400 | 31,683,590 | |
Microsoft Corp. | 3,287,692 | 406,621,747 | |
New Relic, Inc. (a) | 55,946 | 5,612,503 | |
Nutanix, Inc. Class A (a) | 2,796,486 | 78,497,362 | |
Oracle Corp. | 242,300 | 12,260,380 | |
Pagerduty, Inc. | 18,100 | 930,340 | |
Parametric Technology Corp. (a) | 465,500 | 39,129,930 | |
Paylocity Holding Corp. (a) | 30,200 | 3,026,644 | |
Pluralsight, Inc. | 56,500 | 1,800,090 | |
Proofpoint, Inc. (a) | 107,100 | 12,033,756 | |
Q2 Holdings, Inc. (a) | 121,300 | 8,884,012 | |
Red Hat, Inc. (a) | 600,700 | 110,709,010 | |
RingCentral, Inc. (a) | 15,800 | 1,893,630 | |
Salesforce.com, Inc. (a) | 2,537,642 | 384,224,375 | |
Sciplay Corp. (A Shares) (b) | 145,000 | 2,320,000 | |
Smartsheet, Inc. (a) | 108,900 | 4,680,522 | |
Tenable Holdings, Inc. | 18,600 | 518,010 | |
Zendesk, Inc. (a) | 516,700 | 43,531,975 | |
Zoom Video Communications, Inc. Class A (b) | 16,000 | 1,275,680 | |
Zscaler, Inc. (a) | 710,100 | 48,734,163 | |
1,498,562,019 | |||
Technology Hardware, Storage & Peripherals - 4.8% | |||
Apple, Inc. | 2,744,265 | 480,438,474 | |
NetApp, Inc. | 83,800 | 4,960,960 | |
Pure Storage, Inc. Class A (a) | 2,261,978 | 35,874,971 | |
Samsung Electronics Co. Ltd. | 252,813 | 9,039,519 | |
530,313,924 | |||
TOTAL INFORMATION TECHNOLOGY | 3,640,192,508 | ||
MATERIALS - 0.2% | |||
Chemicals - 0.2% | |||
CF Industries Holdings, Inc. | 332,800 | 13,391,872 | |
Dow, Inc. (a) | 51,668 | 2,415,996 | |
DowDuPont, Inc. | 155,105 | 4,733,805 | |
LG Chemical Ltd. | 2,511 | 703,474 | |
The Mosaic Co. | 62,200 | 1,335,434 | |
22,580,581 | |||
Metals & Mining - 0.0% | |||
Barrick Gold Corp. (Canada) | 400,000 | 4,974,845 | |
TOTAL MATERIALS | 27,555,426 | ||
REAL ESTATE - 0.4% | |||
Equity Real Estate Investment Trusts (REITs) - 0.4% | |||
American Tower Corp. | 172,600 | 36,033,702 | |
Ant International Co. Ltd. Class C (c)(d) | 419,242 | 2,620,263 | |
38,653,965 | |||
UTILITIES - 0.0% | |||
Electric Utilities - 0.0% | |||
DONG Energy A/S (e) | 54,100 | 4,312,008 | |
TOTAL COMMON STOCKS | |||
(Cost $5,517,234,775) | 10,733,894,735 | ||
Preferred Stocks - 1.6% | |||
Convertible Preferred Stocks - 1.3% | |||
COMMUNICATION SERVICES - 0.0% | |||
Wireless Telecommunication Services - 0.0% | |||
Altiostar Networks, Inc. Series A1 (a)(c)(d) | 202,849 | 259,647 | |
CONSUMER DISCRETIONARY - 0.3% | |||
Hotels, Restaurants & Leisure - 0.1% | |||
MOD Super Fast Pizza Holdings LLC: | |||
Series 3(a)(c)(d)(f) | 16,248 | 2,315,665 | |
Series 4 (a)(c)(d)(f) | 1,483 | 211,357 | |
Series 5 (a)(c)(d)(f) | 5,955 | 848,707 | |
Neutron Holdings, Inc. Series D (c)(d) | 5,678,726 | 1,377,091 | |
Topgolf International, Inc. Series F (a)(c)(d) | 234,069 | 3,363,572 | |
8,116,392 | |||
Internet & Direct Marketing Retail - 0.0% | |||
Reddit, Inc. Series B (a)(c)(d) | 37,935 | 822,670 | |
The Honest Co., Inc.: | |||
Series C (a)(c)(d) | 22,157 | 856,368 | |
Series D (a)(c)(d) | 19,064 | 872,369 | |
2,551,407 | |||
Leisure Products - 0.2% | |||
Peloton Interactive, Inc. Series E (a)(c)(d) | 776,112 | 16,515,663 | |
Textiles, Apparel & Luxury Goods - 0.0% | |||
Allbirds, Inc.: | |||
Series A (c)(d) | 6,413 | 338,029 | |
Series B (c)(d) | 1,127 | 59,404 | |
Series C (c)(d) | 10,767 | 567,529 | |
ORIC Pharmaceuticals, Inc. Series C (a)(c)(d) | 316,667 | 943,668 | |
1,908,630 | |||
TOTAL CONSUMER DISCRETIONARY | 29,092,092 | ||
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 | 1,814,708 | |
Tobacco - 0.0% | |||
JUUL Labs, Inc. Series E (c)(d) | 6,648 | 1,818,228 | |
TOTAL CONSUMER STAPLES | 5,828,050 | ||
FINANCIALS - 0.0% | |||
Insurance - 0.0% | |||
Clover Health Series D (a)(c)(d) | 264,037 | 2,476,086 | |
HEALTH CARE - 0.5% | |||
Biotechnology - 0.3% | |||
10X Genomics, Inc.: | |||
Series C (a)(c)(d) | 715,467 | 11,018,192 | |
Series D (a)(c)(d) | 100,390 | 1,546,006 | |
23andMe, Inc. Series F (a)(c)(d) | 164,720 | 2,040,881 | |
BioNTech AG Series A (a)(c)(d) | 25,199 | 8,156,770 | |
Fulcrum Therapeutics, Inc. Series B (c)(d) | 614,195 | 1,154,687 | |
Generation Bio Series B (a)(c)(d) | 224,243 | 2,038,369 | |
Immunocore Ltd. Series A (a)(c)(d) | 18,504 | 2,277,609 | |
Intarcia Therapeutics, Inc. Series EE (a)(c)(d) | 116,544 | 4,713,039 | |
32,945,553 | |||
Health Care Providers & Services - 0.0% | |||
Mulberry Health, Inc. Series A8 (a)(c)(d) | 783,663 | 5,599,883 | |
Health Care Technology - 0.1% | |||
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% (a)(c)(d) | 648,255 | 2,353,166 | |
Karuna Therapeutics, Inc. Series B (c) | 91,124 | 1,704,019 | |
6,585,967 | |||
Pharmaceuticals - 0.1% | |||
Allovir, Inc. Series B (c)(d) | 340,345 | 2,773,812 | |
Castle Creek Pharmaceutical Holdings, Inc. Series B (c)(d) | 4,910 | 2,065,588 | |
Harmony Biosciences II, Inc. Series A (a)(c)(d) | 2,550,636 | 2,550,636 | |
Nohla Therapeutics, Inc. Series B (a)(c)(d) | 3,126,919 | 31 | |
7,390,067 | |||
TOTAL HEALTH CARE | 52,521,470 | ||
INDUSTRIALS - 0.1% | |||
Aerospace & Defense - 0.1% | |||
Space Exploration Technologies Corp. Series G (a)(c)(d) | 53,937 | 11,003,148 | |
Professional Services - 0.0% | |||
YourPeople, Inc. Series C (a)(c)(d) | 1,527,000 | 5,268,150 | |
TOTAL INDUSTRIALS | 16,271,298 | ||
INFORMATION TECHNOLOGY - 0.3% | |||
Internet Software & Services - 0.1% | |||
Starry, Inc.: | |||
Series B (a)(c)(d) | 2,961,147 | 4,234,440 | |
Series C (a)(c)(d) | 1,339,018 | 1,914,796 | |
Series D (c)(d) | 1,344,355 | 1,922,428 | |
8,071,664 | |||
IT Services - 0.0% | |||
AppNexus, Inc. Series E (Escrow) (a)(c)(d) | 209,665 | 202,327 | |
Software - 0.2% | |||
Bird Rides, Inc. Series C (c)(d) | 117,022 | 1,374,482 | |
Cloudflare, Inc. Series D, 8.00% (a)(c)(d) | 560,425 | 7,616,176 | |
Dataminr, Inc. Series D (a)(c)(d) | 442,241 | 9,972,535 | |
Jet.Com, Inc. Series B1 (Escrow) (a)(c)(d) | 2,105,094 | 95,571 | |
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 | 7,821,654 | |
29,232,953 | |||
TOTAL INFORMATION TECHNOLOGY | 37,506,944 | ||
REAL ESTATE - 0.0% | |||
Real Estate Management & Development - 0.0% | |||
Sonder Canada, Inc. Series D (c)(d) | 265,415 | 2,785,793 | |
TOTAL CONVERTIBLE PREFERRED STOCKS | 146,741,380 | ||
Nonconvertible Preferred Stocks - 0.3% | |||
CONSUMER DISCRETIONARY - 0.0% | |||
Textiles, Apparel & Luxury Goods - 0.0% | |||
Allbirds, Inc. (c)(d) | 3,445 | 181,586 | |
ENERGY - 0.1% | |||
Oil, Gas & Consumable Fuels - 0.1% | |||
Petroleo Brasileiro SA - Petrobras (PN) sponsored ADR (non-vtg.) | 1,198,200 | 15,552,636 | |
FINANCIALS - 0.1% | |||
Banks - 0.1% | |||
Itau Unibanco Holding SA | 653,700 | 5,830,732 | |
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 | 5,683,943 | |
TOTAL HEALTH CARE | 7,108,036 | ||
TOTAL NONCONVERTIBLE PREFERRED STOCKS | 28,672,990 | ||
TOTAL PREFERRED STOCKS | |||
(Cost $149,963,182) | 175,414,370 | ||
Principal Amount | Value | ||
Preferred Securities - 0.0% | |||
HEALTH CARE - 0.0% | |||
Biotechnology - 0.0% | |||
Intarcia Therapeutics, Inc. 6% 7/18/21(c)(d) | |||
(Cost $614,446) | 614,446 | 624,175 | |
Shares | Value | ||
Money Market Funds - 3.1% | |||
Fidelity Cash Central Fund 2.41% (g) | 57,252,376 | 57,263,826 | |
Fidelity Securities Lending Cash Central Fund 2.42% (g)(h) | 278,255,534 | 278,283,360 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $335,547,281) | 335,547,186 | ||
TOTAL INVESTMENT IN SECURITIES - 102.5% | |||
(Cost $6,003,359,684) | 11,245,480,466 | ||
NET OTHER ASSETS (LIABILITIES) - (2.5)% | (271,421,555) | ||
NET ASSETS - 100% | $10,974,058,911 |
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 $259,746,309 or 2.4% of net assets.
(d) Level 3 security
(e) 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 $68,210,534 or 0.6% of net assets.
(f) Investment is owned by a wholly-owned subsidiary (Subsidiary) that is treated as a corporation for U.S. tax purposes.
(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 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 |
Allovir, Inc. Series B | 5/8/19 | $2,773,812 |
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 |
BioNTech AG Series A | 12/29/17 | $5,518,798 |
Bird Rides, Inc. Series C | 12/21/18 | $1,374,482 |
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 Corp. Series C | 2/16/18 | $2,400,000 |
Cibus Corp. Series D | 5/10/19 | 938,700 |
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 |
Cyclerion Therapeutics, Inc. | 4/2/19 | $2,229,495 |
Dataminr, Inc. Series D | 2/18/15 - 3/6/15 | $5,638,573 |
Fulcrum Therapeutics, Inc. Series B | 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 |
Intarcia Therapeutics, Inc. 6% 7/18/21 | 2/26/19 | $614,446 |
Jet.Com, Inc. Series B1 (Escrow) | 3/19/18 | $0 |
JUUL Labs, Inc. Class A | 7/6/18 | $392,042 |
JUUL Labs, Inc. Series E | 7/6/18 | $196,006 |
Karuna Therapeutics, Inc. Series B | 3/15/19 | $1,379,617 |
MOD Super Fast Pizza Holdings LLC Series 3 | 11/3/16 | $2,225,976 |
MOD Super Fast Pizza Holdings LLC Series 4 | 12/14/17 | 207,516 |
MOD Super Fast Pizza Holdings LLC Series 5 | 5/15/19 | 848,707 |
Mulberry Health, Inc. Series A8 | 1/20/16 | $5,293,448 |
Neutron Holdings, Inc. Series D | 1/25/19 | $1,377,091 |
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 |
Sonder Canada, Inc. Series D | 5/21/19 | $2,785,793 |
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 |
Starry, Inc. Series D | 3/6/19 | $1,922,428 |
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 |
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 |
Wheels Up Partners Holdings LLC Series D | 5/16/19 | 2,674,975 |
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 | $448,997 |
Fidelity Securities Lending Cash Central Fund | 2,867,254 |
Total | $3,316,251 |
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 May 31, 2019, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
Valuation Inputs at Reporting Date: | ||||
Description | Total | Level 1 | Level 2 | Level 3 |
Investments in Securities: | ||||
Equities: | ||||
Communication Services | $1,457,029,982 | $1,438,561,559 | $18,071,864 | $396,559 |
Consumer Discretionary | 2,284,034,676 | 2,239,940,121 | -- | 44,094,555 |
Consumer Staples | 483,378,628 | 462,392,820 | 11,521,028 | 9,464,780 |
Energy | 158,813,774 | 158,813,774 | -- | -- |
Financials | 202,639,146 | 200,163,060 | -- | 2,476,086 |
Health Care | 2,014,954,128 | 1,874,198,270 | 39,796,743 | 100,959,115 |
Industrials | 557,452,127 | 448,211,394 | 53,482,691 | 55,758,042 |
Information Technology | 3,677,699,452 | 3,639,296,143 | -- | 38,403,309 |
Materials | 27,555,426 | 27,555,426 | -- | -- |
Real Estate | 41,439,758 | 36,033,702 | -- | 5,406,056 |
Utilities | 4,312,008 | 4,312,008 | -- | -- |
Preferred Securities | 624,175 | -- | -- | 624,175 |
Money Market Funds | 335,547,186 | 335,547,186 | -- | -- |
Total Investments in Securities: | $11,245,480,466 | $10,865,025,463 | $122,872,326 | $257,582,677 |
The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value:
Investments in Securities: | |
Equities - Health Care | |
Beginning Balance | $130,958,638 |
Net Realized Gain (Loss) on Investment Securities | (260,569) |
Net Unrealized Gain (Loss) on Investment Securities | (4,075,590) |
Cost of Purchases | 3,762,613 |
Proceeds of Sales | (29,425,976) |
Amortization/Accretion | -- |
Transfers into Level 3 | -- |
Transfers out of Level 3 | -- |
Ending Balance | $100,959,116 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at May 31, 2019 | $2,698,133 |
Other investments in securites | |
Beginning Balance | $187,627,672 |
Net Realized Gain (Loss) on Investment Securities | 15,000 |
Net Unrealized Gain (Loss) on Investment Securities | (10,264,823) |
Cost of Purchases | 12,270,456 |
Proceeds of Sales | (33,024,744) |
Amortization/Accretion | -- |
Transfers into Level 3 | -- |
Transfers out of Level 3 | -- |
Ending Balance | $156,623,561 |
The change in unrealized gain (loss) for the period attributable to Level 3 securities held at May 31, 2019 | $28,503,157 |
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.
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 | 89.9% |
Canada | 2.4% |
Cayman Islands | 2.2% |
Germany | 1.9% |
Others (Individually Less Than 1%) | 3.6% |
100.0% |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
May 31, 2019 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $266,725,937) — See accompanying schedule: Unaffiliated issuers (cost $5,667,812,403) | $10,909,933,280 | |
Fidelity Central Funds (cost $335,547,281) | 335,547,186 | |
Total Investment in Securities (cost $6,003,359,684) | $11,245,480,466 | |
Restricted cash | 266,573 | |
Foreign currency held at value (cost $1,205,686) | 1,206,880 | |
Receivable for investments sold | 141,731,718 | |
Receivable for fund shares sold | 1,671,281 | |
Dividends receivable | 6,879,238 | |
Distributions receivable from Fidelity Central Funds | 617,440 | |
Other receivables | 22 | |
Total assets | 11,397,853,618 | |
Liabilities | ||
Payable for investments purchased | $1,625,632 | |
Payable for fund shares redeemed | 143,531,862 | |
Other payables and accrued expenses | 369,345 | |
Collateral on securities loaned | 278,267,868 | |
Total liabilities | 423,794,707 | |
Net Assets | $10,974,058,911 | |
Net Assets consist of: | ||
Paid in capital | $5,565,263,763 | |
Total distributable earnings (loss) | 5,408,795,148 | |
Net Assets, for 677,816,180 shares outstanding | $10,974,058,911 | |
Net Asset Value, offering price and redemption price per share ($10,974,058,911 ÷ 677,816,180 shares) | $16.19 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended May 31, 2019 (Unaudited) | ||
Investment Income | ||
Dividends | $35,320,712 | |
Income from Fidelity Central Funds (including $2,867,254 from security lending) | 3,316,251 | |
Total income | 38,636,963 | |
Expenses | ||
Custodian fees and expenses | $84,778 | |
Independent trustees' fees and expenses | 30,716 | |
Interest | 45,269 | |
Commitment fees | 16,096 | |
Total expenses | 176,859 | |
Net investment income (loss) | 38,460,104 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | $204,993,225 | |
Fidelity Central Funds | 844 | |
Foreign currency transactions | (45,835) | |
Total net realized gain (loss) | 204,948,234 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers (net of increase in deferred foreign taxes of $282,860) | 250,919,119 | |
Fidelity Central Funds | (95) | |
Assets and liabilities in foreign currencies | (11,761) | |
Total change in net unrealized appreciation (depreciation) | 250,907,263 | |
Net gain (loss) | 455,855,497 | |
Net increase (decrease) in net assets resulting from operations | $494,315,601 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended May 31, 2019 (Unaudited) | Year ended November 30, 2018 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $38,460,104 | $95,536,088 |
Net realized gain (loss) | 204,948,234 | 1,070,200,851 |
Change in net unrealized appreciation (depreciation) | 250,907,263 | (283,160,372) |
Net increase (decrease) in net assets resulting from operations | 494,315,601 | 882,576,567 |
Distributions to shareholders | (1,195,147,338) | (1,092,225,333) |
Share transactions | ||
Proceeds from sales of shares | 425,900,556 | 1,042,406,601 |
Reinvestment of distributions | 1,195,147,338 | 1,092,225,333 |
Cost of shares redeemed | (1,222,627,012) | (2,270,674,945) |
Net increase (decrease) in net assets resulting from share transactions | 398,420,882 | (136,043,011) |
Total increase (decrease) in net assets | (302,410,855) | (345,691,777) |
Net Assets | ||
Beginning of period | 11,276,469,766 | 11,622,161,543 |
End of period | $10,974,058,911 | $11,276,469,766 |
Other Information | ||
Shares | ||
Sold | 26,333,784 | 57,708,359 |
Issued in reinvestment of distributions | 85,003,367 | 65,481,135 |
Redeemed | (73,720,988) | (121,804,349) |
Net increase (decrease) | 37,616,163 | 1,385,145 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Series Growth Company Fund
Six months ended (Unaudited) May 31, | Years endedNovember 30, | |||||
2019 | 2018 | 2017 | 2016 | 2015 | 2014 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $17.61 | $18.19 | $13.49 | $13.08 | $12.10 | $10.29 |
Income from Investment Operations | ||||||
Net investment income (loss)A | .05 | .15B | .07 | .01 | .03 | .02 |
Net realized and unrealized gain (loss) | .40 | 1.02 | 4.96 | .43 | 1.04 | 1.80 |
Total from investment operations | .45 | 1.17 | 5.03 | .44 | 1.07 | 1.82 |
Distributions from net investment income | (.15) | (.09) | (.02) | (.03) | (.02) | (.01) |
Distributions from net realized gain | (1.72) | (1.66) | (.31) | – | (.07) | – |
Total distributions | (1.87) | (1.75) | (.33) | (.03) | (.09) | (.01) |
Net asset value, end of period | $16.19 | $17.61 | $18.19 | $13.49 | $13.08 | $12.10 |
Total ReturnC,D | 4.14% | 6.96% | 38.10% | 3.38% | 8.94% | 17.67% |
Ratios to Average Net AssetsE,F | ||||||
Expenses before reductions | - %G,H | - %H | .38% | .74% | .79% | .74% |
Expenses net of fee waivers, if any | - %G,H | - %H | .38% | .74% | .79% | .74% |
Expenses net of all reductions | - %G,H | - %H | .37% | .74% | .79% | .74% |
Net investment income (loss) | .67%G | .79%B | .43% | .11% | .24% | .22% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $10,974,059 | $11,276,470 | $11,622,162 | $4,032,151 | $4,602,479 | $4,353,274 |
Portfolio turnover rateI | 17%G | 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 for periods of less than one year are not annualized.
D Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
E Fees and expenses of any underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
F Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
G Annualized
H Amount represents less than .005%.
I Amount does not include the portfolio activity of any underlying Fidelity Central Funds.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended May 31, 2019
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 Fidelity Management & Research Company (FMR) or an affiliate serves as an investment manager. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust.
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 ranged from less than .005% to .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investments Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy. 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. Preferred securities are valued by pricing vendors who utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type or by broker-supplied prices. When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
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 | $256,907,389 | Market comparable | Enterprise value/Sales multiple (EV/S) | 0.9 - 11.7 / 5.6 | Increase |
Transaction price | $1.00 - $411.85 / $199.15 | Increase | |||
Discount rate | 6.0% - 75.0% / 34.6% | Decrease | |||
Liquidity preference | $14.90 - $45.76 / $21.65 | Increase | |||
Premium rate | 6.9% - 15.5% / 8.3% | Increase | |||
Conversion ratio | 3.0 | Increase | |||
Proxy premium | 2.0% | Increase | |||
Proxy discount | 0.6% - 21.3% / 5.6% | Decrease | |||
Discount for lack of marketability | 10.0% - 15.0% / 14.4% | Decrease | |||
Recovery value | Recovery value | 0.0% - 1.6% / 1.3% | Increase | ||
Market approach | Transaction price | $0.24 - $277.00 / $93.13 | Increase | ||
Liquidity preference | $2.10 | Increase | |||
Conversion ratio | 1.6 | Increase | |||
Discount cash flow | Discount rate | 8.0% - 11.0% / 10.5% | Decrease | ||
Growth rate | 3.5% | Increase | |||
Probability rate | 6.3% | Increase | |||
Discount for lack of marketability | 10.0% | Decrease | |||
Preferred Securities | $624,175 | Market approach | Transaction price | $100.00 | Increase |
(a) Represents the directional change in the fair value of the Level 3 investments that could have resulted from an increase in the corresponding input as of period end. A decrease to the unobservable input would have had the opposite effect. Significant changes in these inputs may have resulted in a significantly higher or lower fair value measurement at period end.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of May 31, 2019, as well as a roll forward of Level 3 investments, is included at the end of the Fund's Schedule of Investments.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests. 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.
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 | $5,649,799,868 |
Gross unrealized depreciation | (469,095,943) |
Net unrealized appreciation (depreciation) | $5,180,703,925 |
Tax cost | $6,064,776,541 |
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 $65,837,027 in these Subsidiaries, representing .60% 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.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $975,976,746 and $1,743,195,114, 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 $33,629 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 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 | $120,935,600 | 2.70% | $45,269 |
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 $16,096 and is reflected in Commitment fees on the Statement of Operations. During the period, the Fund did not borrow on this line of credit.
7. Security Lending.
The Fund lends portfolio securities through a lending agent from time to time in order to earn additional income. For equity securities, a lending agent is used and may loan securities to certain qualified borrowers, including Fidelity Capital Markets (FCM), a broker-dealer affiliated with the Fund. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Fund and any additional required collateral is delivered to the Fund on the next business day. The Fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Fund may apply collateral received from the borrower against the obligation. The Fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. The value of securities loaned to FCM at period end was $7,932,978. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds, and includes $356,379 from securities loaned to FCM.
8. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
At the end of the period, mutual funds managed by the investment adviser or its affiliates were the owners of record of all of the outstanding shares of the Fund.
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs and (2) ongoing costs, including other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (December 1, 2018 to May 31, 2019).
Actual Expenses
The first line of the accompanying table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
Annualized Expense Ratio-A | Beginning Account Value December 1, 2018 | Ending Account Value May 31, 2019 | Expenses Paid During Period-B December 1, 2018 to May 31, 2019 | |
Actual | - %-C | $1,000.00 | $1,041.40 | $--D |
Hypothetical-E | $1,000.00 | $1,024.93 | $--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 182/365 (to reflect the one-half year period).
C Amount represents less than .005%.
D Amount represents less than $.005.
E 5% return per year before expenses
Board Approval of Investment Advisory Contracts
Fidelity Series Growth Company Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract with Fidelity Management & Research Company (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund. FMR and the sub-advisers are referred to herein as the Investment Advisers. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.
The Board meets regularly and, at each of its meetings, covers an extensive agenda of topics and materials and considers factors that are relevant to its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. The Board has established various standing committees (Committees), each composed of and chaired by Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of the fund's Advisory Contracts. The Board also meets as needed to review matters specifically related to the Board's annual consideration of the renewal of the Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through joint ad hoc committees to discuss certain matters relevant to all of the Fidelity funds.
At its January 2019 meeting, the Board unanimously determined to renew the fund's Advisory Contracts. In considering whether to renew the Advisory Contracts for the fund, the Board considered all factors it believed relevant and reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts was in the best interests of the fund and its shareholders and the fact that no fee is payable under the management contract was fair and reasonable.
Nature, Extent, and Quality of Services Provided. The Board considered Fidelity's staffing as it relates to the fund, including the backgrounds of investment personnel of Fidelity, and also considered the fund's investment objective, strategies, and related investment philosophy. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the investment personnel compensation program and whether this structure provides appropriate incentives to act in the best interests of the fund.Resources Dedicated to Investment Management and Support Services. The Board and the Fund Oversight and Research Committees reviewed the general qualifications and capabilities of Fidelity's investment staff, including its size, education, experience, and resources, as well as Fidelity's approach to recruiting, training, managing, and compensating investment personnel. The Board noted that Fidelity has continued to increase the resources devoted to non-U.S. offices, including expansion of Fidelity's global investment organization. The Board also noted that Fidelity's analysts have extensive resources, tools and capabilities that allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and guarantors. Further, the Board considered that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered Fidelity's trading, risk management, compliance, and technology and operations capabilities and resources, which are integral parts of the investment management process.Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory and administrative services performed by the Investment Advisers and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for the fund; (ii) the nature and extent of the supervision of third party service providers, principally custodians, subcustodians, and pricing vendors; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures. The Board also reviewed the allocation of fund brokerage, including allocations to brokers affiliated with the Investment Advisers, the use of brokerage commissions to pay fund expenses, and the use of "soft" commission dollars to pay for research services.Investment Performance. The Board considered whether the fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions. The Board reviewed the fund's absolute investment performance, as well as the fund's relative investment performance, but did not consider performance to be a material factor in its decision to renew the fund's Advisory Contracts, as the fund is not publicly offered as a stand-alone investment product. In this regard, the Board noted that the fund is designed to offer an investment option for other investment companies managed by Fidelity and ultimately to enhance the performance of those investment companies.Based on its review, the Board concluded that the nature, extent, and quality of services provided to the fund under the Advisory Contracts should continue to benefit the shareholders of the fund.Competitiveness of Management Fee and Total Expense Ratio. The Board considered that the fund does not pay FMR a management fee for investment advisory services. The Board also noted that FMR or an affiliate undertakes to pay all operating expenses of the fund with certain exceptions.In connection with the renewal of the Advisory Contracts, the Board also approved amendments to the management contract for the fund to clarify that the fund pays its non-operating expenses, including brokerage commissions and fees and expenses associated with the fund's securities lending program. The Board considered that the amendments would not change the services provided to the fund or the party responsible for making such payments under the current management contract.The Board further considered that FMR has contractually agreed to reimburse the fund to the extent that total operating expenses, with certain exceptions, as a percentage of its average net assets, exceed 0.014% through January 31, 2021.Based on its review, the Board considered that the fund does not pay a management fee and concluded that the total expense ratio of each class of the fund was reasonable in light of the services that the fund and its shareholders receive and the other factors considered.Costs of the Services and Profitability. The Board considered the level of Fidelity's profits in respect of all the Fidelity funds.PricewaterhouseCoopers LLP (PwC), auditor to Fidelity and certain Fidelity funds, has been engaged annually by the Board as part of the Board's assessment of Fidelity's profitability analysis. PwC's engagement includes the review and assessment of the methodologies used by Fidelity in determining the revenues and expenses attributable to Fidelity's mutual fund business, and completion of agreed-upon procedures in respect of the mathematical accuracy of the fund profitability information and its conformity to established allocation methodologies. After considering PwC's reports issued under the engagement and information provided by Fidelity, the Board concluded that while other allocation methods may also be reasonable, Fidelity's profitability methodologies are reasonable in all material respects.The Board also reviewed Fidelity's non-fund businesses and potential indirect benefits such businesses may have received as a result of their association with Fidelity's mutual fund business (i.e., fall-out benefits) as well as cases where Fidelity's affiliates may benefit from the fund's business. The Board noted that changes to fall-out benefits year-over-year reflect business developments at Fidelity's various businesses.The Board concluded that the costs of the services provided by and the profits realized by Fidelity in connection with the operation of the fund were not relevant to the renewal of the Advisory Contracts because the fund pays no advisory fees and FMR or an affiliate bears all expenses of the fund with certain exceptions.Economies of Scale. The Board concluded that because the fund pays no advisory fees and FMR or an affiliate bears all expenses of the fund with certain exceptions, the realization of economies of scale was not a material factor in the Board's decision to renew the fund's Advisory Contracts.Additional Information Requested by the Board. In order to develop fully the factual basis for consideration of the Fidelity funds' advisory contracts, the Board requested and received additional information on certain topics, including: (i) fund performance trends, in particular the underperformance of certain funds, and Fidelity's long-term strategies for certain funds; (ii) Fidelity's fund profitability methodology, profitability trends for certain funds, and the impact of certain factors on fund profitability results; (iii) metrics for evaluating index fund and ETF performance and information about ETF trading characteristics; (iv) the methodology with respect to the evaluation of competitive fund data and peer group classifications and fee comparisons; (v) the expense structures for different funds and classes; (vi) information regarding other accounts managed by Fidelity, including collective investment trusts; and (vii) Fidelity's philosophies and strategies for evaluating funds and classes with lower or declining asset levels.Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board concluded that the advisory fee arrangements are fair and reasonable, and that the fund's Advisory Contracts should be renewed.XS7-SANN-0719
1.968010.105
Fidelity Flex℠ Funds Fidelity Flex℠ Mid Cap Growth Fund Semi-Annual Report May 31, 2019 |
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of a fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a financial advisor, broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from a fund electronically, by contacting your financial intermediary. For Fidelity customers, visit Fidelity's web site or call Fidelity using the contact information listed below.
You may elect to receive all future reports in paper free of charge. If you wish to continue receiving paper copies of your shareholder reports, you may contact your financial intermediary or, if you are a Fidelity customer, visit Fidelity’s website, or call Fidelity at the applicable toll-free number listed below. Your election to receive reports in paper will apply to all funds held with the fund complex/your financial intermediary.
Account Type | Website | Phone Number |
Brokerage, Mutual Fund, or Annuity Contracts: | fidelity.com/mailpreferences | 1-800-343-3548 |
Employer Provided Retirement Accounts: | netbenefits.fidelity.com/preferences (choose 'no' under Required Disclosures to continue to print) | 1-800-343-0860 |
Advisor Sold Accounts Serviced Through Your Financial Intermediary: | Contact Your Financial Intermediary | Your Financial Intermediary's phone number |
Advisor Sold Accounts Serviced by Fidelity: | institutional.fidelity.com | 1-877-208-0098 |
Contents
Board Approval of Investment Advisory Contracts and Management Fees |
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 1-800-544-3455 (for managed account clients) or 1-800-835-5092 (for retirement plan participants) to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2019 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT. Forms N-PORT are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-PORT may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Investment Summary (Unaudited)
Top Ten Stocks as of May 31, 2019
% of fund's net assets | |
Total System Services, Inc. | 4.0 |
VeriSign, Inc. | 3.3 |
Roper Technologies, Inc. | 2.5 |
Fiserv, Inc. | 2.3 |
Wellcare Health Plans, Inc. | 2.2 |
ResMed, Inc. | 2.0 |
Dollar General Corp. | 2.0 |
Edwards Lifesciences Corp. | 1.9 |
Workday, Inc. Class A | 1.8 |
Ross Stores, Inc. | 1.8 |
23.8 |
Top Five Market Sectors as of May 31, 2019
% of fund's net assets | |
Information Technology | 34.4 |
Industrials | 15.3 |
Health Care | 14.6 |
Consumer Discretionary | 12.8 |
Financials | 6.8 |
Asset Allocation (% of fund's net assets)
As of May 31, 2019* | ||
Stocks | 93.7% | |
Short-Term Investments and Net Other Assets (Liabilities) | 6.3% |
* Foreign investments - 1.2%
Schedule of Investments May 31, 2019 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 93.7% | |||
Shares | Value | ||
COMMUNICATION SERVICES - 3.6% | |||
Entertainment - 3.1% | |||
Electronic Arts, Inc. (a) | 500 | $46,540 | |
Live Nation Entertainment, Inc. (a) | 2,200 | 133,804 | |
Take-Two Interactive Software, Inc. (a) | 1,200 | 129,780 | |
310,124 | |||
Interactive Media & Services - 0.4% | |||
TripAdvisor, Inc. (a) | 900 | 38,043 | |
Media - 0.1% | |||
Sinclair Broadcast Group, Inc. Class A | 150 | 8,052 | |
TOTAL COMMUNICATION SERVICES | 356,219 | ||
CONSUMER DISCRETIONARY - 12.8% | |||
Distributors - 1.0% | |||
Pool Corp. | 550 | 98,879 | |
Diversified Consumer Services - 1.4% | |||
Service Corp. International | 3,100 | 135,997 | |
Hotels, Restaurants & Leisure - 1.1% | |||
Domino's Pizza, Inc. | 300 | 83,850 | |
Planet Fitness, Inc. (a) | 300 | 22,941 | |
106,791 | |||
Internet & Direct Marketing Retail - 0.5% | |||
GrubHub, Inc. (a) | 800 | 52,120 | |
Multiline Retail - 2.0% | |||
Dollar General Corp. | 1,600 | 203,648 | |
Specialty Retail - 4.6% | |||
AutoZone, Inc. (a) | 90 | 92,440 | |
Best Buy Co., Inc. | 1,100 | 68,937 | |
Ross Stores, Inc. | 1,950 | 181,331 | |
Ulta Beauty, Inc. (a) | 310 | 103,348 | |
Urban Outfitters, Inc. (a) | 630 | 14,156 | |
460,212 | |||
Textiles, Apparel & Luxury Goods - 2.2% | |||
Carter's, Inc. | 750 | 63,083 | |
Deckers Outdoor Corp. (a) | 70 | 10,647 | |
Levi Strauss & Co. Class A (a) | 200 | 3,884 | |
VF Corp. | 1,700 | 139,196 | |
216,810 | |||
TOTAL CONSUMER DISCRETIONARY | 1,274,457 | ||
CONSUMER STAPLES - 2.9% | |||
Beverages - 0.8% | |||
Brown-Forman Corp. Class B (non-vtg.) | 1,500 | 74,970 | |
Food Products - 1.1% | |||
The Hershey Co. | 870 | 114,805 | |
Household Products - 0.8% | |||
Clorox Co. | 570 | 84,822 | |
Personal Products - 0.2% | |||
Estee Lauder Companies, Inc. Class A | 100 | 16,103 | |
TOTAL CONSUMER STAPLES | 290,700 | ||
FINANCIALS - 6.8% | |||
Banks - 0.7% | |||
Citizens Financial Group, Inc. | 1,650 | 53,757 | |
Huntington Bancshares, Inc. | 1,500 | 18,975 | |
72,732 | |||
Capital Markets - 5.7% | |||
LPL Financial | 1,300 | 104,286 | |
MarketAxess Holdings, Inc. | 330 | 98,281 | |
Moody's Corp. | 900 | 164,592 | |
MSCI, Inc. | 700 | 154,007 | |
S&P Global, Inc. | 200 | 42,776 | |
Tradeweb Markets, Inc. Class A | 100 | 4,509 | |
568,451 | |||
Insurance - 0.4% | |||
Progressive Corp. | 500 | 39,640 | |
TOTAL FINANCIALS | 680,823 | ||
HEALTH CARE - 14.6% | |||
Health Care Equipment & Supplies - 6.1% | |||
DexCom, Inc. (a) | 800 | 97,040 | |
Edwards Lifesciences Corp. (a) | 1,100 | 187,770 | |
Intuitive Surgical, Inc. (a) | 100 | 46,485 | |
Masimo Corp. (a) | 300 | 39,222 | |
ResMed, Inc. | 1,800 | 205,416 | |
Teleflex, Inc. | 100 | 28,830 | |
604,763 | |||
Health Care Providers & Services - 2.8% | |||
Elanco Animal Health, Inc. | 1,900 | 59,432 | |
Wellcare Health Plans, Inc. (a) | 800 | 220,952 | |
280,384 | |||
Health Care Technology - 1.1% | |||
Veeva Systems, Inc. Class A (a) | 700 | 108,003 | |
Life Sciences Tools & Services - 4.6% | |||
Bruker Corp. | 900 | 37,593 | |
Charles River Laboratories International, Inc. (a) | 1,240 | 155,558 | |
Mettler-Toledo International, Inc. (a) | 220 | 159,080 | |
Waters Corp. (a) | 540 | 108,383 | |
460,614 | |||
TOTAL HEALTH CARE | 1,453,764 | ||
INDUSTRIALS - 15.3% | |||
Aerospace & Defense - 3.2% | |||
Huntington Ingalls Industries, Inc. | 770 | 157,942 | |
TransDigm Group, Inc. (a) | 370 | 163,152 | |
321,094 | |||
Commercial Services & Supplies - 2.9% | |||
Cintas Corp. | 710 | 157,499 | |
Copart, Inc. (a) | 1,800 | 128,664 | |
286,163 | |||
Electrical Equipment - 2.0% | |||
AMETEK, Inc. | 1,200 | 98,268 | |
Fortive Corp. | 1,300 | 98,995 | |
197,263 | |||
Industrial Conglomerates - 3.1% | |||
ITT, Inc. | 1,000 | 57,620 | |
Roper Technologies, Inc. | 730 | 251,062 | |
308,682 | |||
Machinery - 2.2% | |||
IDEX Corp. | 850 | 129,804 | |
Toro Co. | 1,400 | 91,224 | |
221,028 | |||
Professional Services - 1.9% | |||
CoStar Group, Inc. (a) | 50 | 25,482 | |
Equifax, Inc. | 600 | 72,540 | |
Verisk Analytics, Inc. | 630 | 88,200 | |
186,222 | |||
TOTAL INDUSTRIALS | 1,520,452 | ||
INFORMATION TECHNOLOGY - 34.4% | |||
Communications Equipment - 1.6% | |||
Arista Networks, Inc. (a) | 210 | 51,364 | |
F5 Networks, Inc. (a) | 800 | 105,664 | |
157,028 | |||
Electronic Equipment & Components - 3.1% | |||
Amphenol Corp. Class A | 1,900 | 165,300 | |
CDW Corp. | 1,100 | 108,284 | |
Keysight Technologies, Inc. (a) | 450 | 33,809 | |
307,393 | |||
IT Services - 13.1% | |||
Adyen BV (b) | 3 | 2,416 | |
Broadridge Financial Solutions, Inc. | 480 | 59,938 | |
EPAM Systems, Inc. (a) | 250 | 43,148 | |
Fiserv, Inc. (a) | 2,700 | 231,822 | |
Global Payments, Inc. | 970 | 149,419 | |
Total System Services, Inc. | 3,200 | 395,289 | |
VeriSign, Inc. (a) | 1,700 | 331,466 | |
Worldpay, Inc. (a) | 800 | 97,312 | |
1,310,810 | |||
Semiconductors & Semiconductor Equipment - 9.3% | |||
Analog Devices, Inc. | 1,200 | 115,944 | |
Broadcom, Inc. | 90 | 22,648 | |
KLA-Tencor Corp. | 1,200 | 123,684 | |
Lam Research Corp. | 1,000 | 174,610 | |
NXP Semiconductors NV | 700 | 61,712 | |
ON Semiconductor Corp. (a) | 9,800 | 174,048 | |
Skyworks Solutions, Inc. | 1,500 | 99,945 | |
Xilinx, Inc. | 1,500 | 153,465 | |
926,056 | |||
Software - 7.3% | |||
Adobe, Inc. (a) | 160 | 43,344 | |
Black Knight, Inc. (a) | 900 | 51,021 | |
Cadence Design Systems, Inc. (a) | 1,500 | 95,355 | |
Check Point Software Technologies Ltd. (a) | 570 | 62,860 | |
Citrix Systems, Inc. | 1,400 | 131,768 | |
Fortinet, Inc. (a) | 950 | 68,856 | |
Intuit, Inc. | 150 | 36,728 | |
Parametric Technology Corp. (a) | 100 | 8,406 | |
ServiceNow, Inc. (a) | 100 | 26,193 | |
Synopsys, Inc. (a) | 130 | 15,137 | |
Workday, Inc. Class A (a) | 900 | 183,708 | |
723,376 | |||
TOTAL INFORMATION TECHNOLOGY | 3,424,663 | ||
MATERIALS - 0.3% | |||
Chemicals - 0.3% | |||
Sherwin-Williams Co. | 70 | 29,362 | |
REAL ESTATE - 2.6% | |||
Equity Real Estate Investment Trusts (REITs) - 2.6% | |||
Equity Lifestyle Properties, Inc. | 1,000 | 121,660 | |
SBA Communications Corp. Class A (a) | 650 | 140,667 | |
262,327 | |||
UTILITIES - 0.4% | |||
Independent Power and Renewable Electricity Producers - 0.4% | |||
NRG Energy, Inc. | 1,100 | 37,444 | |
TOTAL COMMON STOCKS | |||
(Cost $8,290,108) | 9,330,211 | ||
Money Market Funds - 6.3% | |||
Fidelity Cash Central Fund 2.41% (c) | |||
(Cost $624,399) | 624,274 | 624,399 | |
TOTAL INVESTMENT IN SECURITIES - 100.0% | |||
(Cost $8,914,507) | 9,954,610 | ||
NET OTHER ASSETS (LIABILITIES) - 0.0% | 4,848 | ||
NET ASSETS - 100% | $9,959,458 |
Legend
(a) Non-income producing
(b) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $2,416 or 0.0% of net assets.
(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 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 | $4,160 |
Total | $4,160 |
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
May 31, 2019 (Unaudited) | ||
Assets | ||
Investment in securities, at value — See accompanying schedule: Unaffiliated issuers (cost $8,290,108) | $9,330,211 | |
Fidelity Central Funds (cost $624,399) | 624,399 | |
Total Investment in Securities (cost $8,914,507) | $9,954,610 | |
Receivable for investments sold | 52,859 | |
Receivable for fund shares sold | 10,984 | |
Dividends receivable | 6,818 | |
Distributions receivable from Fidelity Central Funds | 437 | |
Total assets | 10,025,708 | |
Liabilities | ||
Payable for investments purchased | $57,667 | |
Payable for fund shares redeemed | 8,583 | |
Total liabilities | 66,250 | |
Net Assets | $9,959,458 | |
Net Assets consist of: | ||
Paid in capital | $10,092,017 | |
Total distributable earnings (loss) | (132,559) | |
Net Assets, for 810,465 shares outstanding | $9,959,458 | |
Net Asset Value, offering price and redemption price per share ($9,959,458 ÷ 810,465 shares) | $12.29 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended May 31, 2019 (Unaudited) | ||
Investment Income | ||
Dividends | $51,061 | |
Income from Fidelity Central Funds | 4,160 | |
Total income | 55,221 | |
Expenses | ||
Independent trustees' fees and expenses | $37 | |
Commitment fees | 21 | |
Total expenses | 58 | |
Net investment income (loss) | 55,163 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | (413,854) | |
Foreign currency transactions | (1) | |
Total net realized gain (loss) | (413,855) | |
Change in net unrealized appreciation (depreciation) on investment securities | 1,070,929 | |
Net gain (loss) | 657,074 | |
Net increase (decrease) in net assets resulting from operations | $712,237 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended May 31, 2019 (Unaudited) | Year ended November 30, 2018 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $55,163 | $88,932 |
Net realized gain (loss) | (413,855) | (787,766) |
Change in net unrealized appreciation (depreciation) | 1,070,929 | (102,925) |
Net increase (decrease) in net assets resulting from operations | 712,237 | (801,759) |
Distributions to shareholders | (104,869) | (5,930) |
Share transactions | ||
Proceeds from sales of shares | 1,281,011 | 21,757,731 |
Reinvestment of distributions | 104,869 | 5,930 |
Cost of shares redeemed | (7,480,444) | (6,220,240) |
Net increase (decrease) in net assets resulting from share transactions | (6,094,564) | 15,543,421 |
Total increase (decrease) in net assets | (5,487,196) | 14,735,732 |
Net Assets | ||
Beginning of period | 15,446,654 | 710,922 |
End of period | $9,959,458 | $15,446,654 |
Other Information | ||
Shares | ||
Sold | 109,094 | 1,794,375 |
Issued in reinvestment of distributions | 10,113 | 527 |
Redeemed | (635,901) | (530,911) |
Net increase (decrease) | (516,694) | 1,263,991 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Flex Mid Cap Growth Fund
Six months ended (Unaudited) May 31, | Years endedNovember 30, | ||
2019 | 2018 | 2017 A | |
Selected Per–Share Data | |||
Net asset value, beginning of period | $11.64 | $11.25 | $10.00 |
Income from Investment Operations | |||
Net investment income (loss)B | .05 | .13C | .10D |
Net realized and unrealized gain (loss) | .68 | .35E | 1.15 |
Total from investment operations | .73 | .48 | 1.25 |
Distributions from net investment income | (.08) | (.09) | – |
Total distributions | (.08) | (.09) | – |
Net asset value, end of period | $12.29 | $11.64 | $11.25 |
Total ReturnF | 6.43% | 4.29% | 12.50% |
Ratios to Average Net AssetsG,H | |||
Expenses before reductionsI | - %J | -% | - %J |
Expenses net of fee waivers, if anyI | - %J | -% | - %J |
Expenses net of all reductionsI | - %J | -% | - %J |
Net investment income (loss) | .90%J | 1.11%C | 1.29%D,J |
Supplemental Data | |||
Net assets, end of period (000 omitted) | $9,959 | $15,447 | $711 |
Portfolio turnover rateK | 49%J | 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. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets 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 (Unaudited)
For the period ended May 31, 2019
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 ranged from less than .005% to .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investments Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy.
Foreign Currency. The Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, 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 | $1,270,930 |
Gross unrealized depreciation | (242,921) |
Net unrealized appreciation (depreciation) | $1,028,009 |
Tax cost | $8,926,601 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of prior fiscal period end and is subject to adjustment.
No expiration | |
Short-term | $(751,757) |
Total capital loss carryforward | $(751,757) |
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $2,936,656 and $9,232,510, 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 $80 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 $21 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.
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 (December 1, 2018 to May 31, 2019).
Actual Expenses
The first line of the accompanying table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
Annualized Expense Ratio-A | Beginning Account Value December 1, 2018 | Ending Account Value May 31, 2019 | Expenses Paid During Period-B December 1, 2018 to May 31, 2019 | |
Actual | - %-C | $1,000.00 | $1,064.30 | $--D |
Hypothetical-E | $1,000.00 | $1,024.93 | $--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 182/365 (to reflect the one-half year period).
C Amount represents less than .005%.
D Amount represents less than $.005.
E 5% return per year before expenses
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Flex Mid Cap Growth Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract with Fidelity Management & Research Company (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund. FMR and the sub-advisers are referred to herein as the Investment Advisers. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.
The Board meets regularly and, at each of its meetings, covers an extensive agenda of topics and materials and considers factors that are relevant to its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. The Board has established various standing committees (Committees), each composed of and chaired by Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of the fund's Advisory Contracts. The Board also meets as needed to review matters specifically related to the Board's annual consideration of the renewal of the Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through joint ad hoc committees to discuss certain matters relevant to all of the Fidelity funds.
At its January 2019 meeting, the Board unanimously determined to renew the fund's Advisory Contracts. In considering whether to renew the Advisory Contracts for the fund, the Board considered all factors it believed relevant and reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts was in the best interests of the fund and its shareholders and the fact that no fee is payable under the management contract was fair and reasonable.
Nature, Extent, and Quality of Services Provided. The Board considered Fidelity's staffing as it relates to the fund, including the backgrounds of investment personnel of Fidelity, and also considered the fund's investment objective, strategies, and related investment philosophy. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the investment personnel compensation program and whether this structure provides appropriate incentives to act in the best interests of the fund. Additionally, the Board considered the portfolio managers' investments, if any, in the funds that they manage.
Resources Dedicated to Investment Management and Support Services. The Board and the Fund Oversight and Research Committees reviewed the general qualifications and capabilities of Fidelity's investment staff, including its size, education, experience, and resources, as well as Fidelity's approach to recruiting, training, managing, and compensating investment personnel. The Board noted that Fidelity has continued to increase the resources devoted to non-U.S. offices, including expansion of Fidelity's global investment organization. The Board also noted that Fidelity's analysts have extensive resources, tools and capabilities that allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and guarantors. Further, the Board considered that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered Fidelity's trading, risk management, compliance, and technology and operations capabilities and resources, which are integral parts of the investment management process.
Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by the Investment Advisers and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for the fund; (ii) the nature and extent of the supervision of third party service providers, principally custodians, subcustodians, and pricing vendors; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures. The Board also reviewed the allocation of fund brokerage, including allocations to brokers affiliated with the Investment Advisers, the use of brokerage commissions to pay fund expenses, and the use of "soft" commission dollars to pay for research services.
The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value and convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through telephone representatives and over the Internet, investor education materials and asset allocation tools, and the expanded availability of Fidelity Investor Centers.
Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including: (i) continuing to dedicate additional resources to Fidelity's investment research process, which includes meetings with management of issuers of securities in which the funds invest, and to the support of the senior management team that oversees asset management; (ii) continuing efforts to enhance Fidelity's global research capabilities; (iii) launching new funds and making other enhancements to meet client needs; (iv) launching new share classes of existing funds; (v) eliminating purchase minimums and broadening eligibility requirements for certain funds and share classes; (vi) reducing management fees and total expenses for certain growth equity funds and index funds; (vii) lowering expense caps for certain existing funds and classes, and converting certain voluntary expense caps to contractual caps, to reduce expenses borne by shareholders; (viii) eliminating short-term redemption fees for funds that had such fees; (ix) rationalizing product lines and gaining increased efficiencies from fund mergers and share class consolidations; (x) continuing to develop, acquire and implement systems and technology to improve services to the funds and shareholders, strengthen information security, and increase efficiency; and (xi) continuing to implement enhancements to further strengthen Fidelity's product line to increase investors' probability of success in achieving their investment goals, including retirement income goals.
Investment Performance. The Board considered whether the fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions. As the fund recently commenced operations, the Board did not believe that it was appropriate to assign significant weight to its limited investment performance.
Based on its review, the Board concluded that the nature, extent, and quality of services provided to the fund under the Advisory Contracts should continue to benefit the shareholders of the fund.
Competitiveness of Management Fee and Total Expense Ratio. The Board noted that the fund is available exclusively to certain Fidelity fee-based programs. The Board considered that the fund does not pay FMR a management fee for investment advisory services, but that FMR is indirectly compensated for its services out of the program fees. The Board also noted that FMR or an affiliate undertakes to pay all operating expenses of the fund with limited exceptions.In connection with the renewal of the Advisory Contracts, the Board also approved amendments to the management contract for the fund to clarify that the fund pays its non-operating expenses, including brokerage commissions and fees and expenses associated with the fund's securities lending program. The Board considered that the amendments would not change the services provided to the fund or the party responsible for making such payments under the current management contract.Based on its review, the Board considered that the fund does not pay a management fee and concluded that the total expense ratio of the fund was reasonable in light of the services that the fund and its shareholders receive and the other factors considered.Costs of the Services and Profitability. The Board considered the level of Fidelity's profits in respect of all the Fidelity funds.PricewaterhouseCoopers LLP (PwC), auditor to Fidelity and certain Fidelity funds, has been engaged annually by the Board as part of the Board's assessment of Fidelity's profitability analysis. PwC's engagement includes the review and assessment of the methodologies used by Fidelity in determining the revenues and expenses attributable to Fidelity's mutual fund business, and completion of agreed-upon procedures in respect of the mathematical accuracy of the fund profitability information and its conformity to established allocation methodologies. After considering PwC's reports issued under the engagement and information provided by Fidelity, the Board concluded that while other allocation methods may also be reasonable, Fidelity's profitability methodologies are reasonable in all material respects.The Board also reviewed Fidelity's non-fund businesses and potential indirect benefits such businesses may have received as a result of their association with Fidelity's mutual fund business (i.e., fall-out benefits) as well as cases where Fidelity's affiliates may benefit from the fund's business. The Board noted that changes to fall-out benefits year-over-year reflect business developments at Fidelity's various businesses.The Board concluded that the costs of the services provided by and the profits realized by Fidelity in connection with the operation of the fund were not relevant to the renewal of the Advisory Contracts because the fund pays no advisory fees and FMR or an affiliate bears all expenses of the fund with limited exceptions.Economies of Scale. The Board concluded that because the fund pays no advisory fees and FMR bears all expenses of the fund with limited exceptions, the realization of economies of scale was not a material factor in the Board's decision to renew the fund's Advisory Contract.Additional Information Requested by the Board. In order to develop fully the factual basis for consideration of the Fidelity funds' advisory contracts, the Board requested and received additional information on certain topics, including: (i) fund performance trends, in particular the underperformance of certain funds, and Fidelity's long-term strategies for certain funds; (ii) Fidelity's fund profitability methodology, profitability trends for certain funds, and the impact of certain factors on fund profitability results; (iii) metrics for evaluating index fund and ETF performance and information about ETF trading characteristics; (iv) the methodology with respect to the evaluation of competitive fund data and peer group classifications and fee comparisons; (v) the expense structures for different funds and classes; (vi) information regarding other accounts managed by Fidelity, including collective investment trusts; and (vii) Fidelity's philosophies and strategies for evaluating funds and classes with lower or declining asset levels.Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board concluded that the advisory fee arrangements are fair and reasonable, and that the fund's Advisory Contracts should be renewed.ZDG-SANN-0719
1.9881578.102
Fidelity® Growth Strategies K6 Fund Semi-Annual Report May 31, 2019 |
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of a fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a financial advisor, broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from a fund electronically, by contacting your financial intermediary. For Fidelity customers, visit Fidelity's web site or call Fidelity using the contact information listed below.
You may elect to receive all future reports in paper free of charge. If you wish to continue receiving paper copies of your shareholder reports, you may contact your financial intermediary or, if you are a Fidelity customer, visit Fidelity’s website, or call Fidelity at the applicable toll-free number listed below. Your election to receive reports in paper will apply to all funds held with the fund complex/your financial intermediary.
Account Type | Website | Phone Number |
Brokerage, Mutual Fund, or Annuity Contracts: | fidelity.com/mailpreferences | 1-800-343-3548 |
Employer Provided Retirement Accounts: | netbenefits.fidelity.com/preferences (choose 'no' under Required Disclosures to continue to print) | 1-800-343-0860 |
Advisor Sold Accounts Serviced Through Your Financial Intermediary: | Contact Your Financial Intermediary | Your Financial Intermediary's phone number |
Advisor Sold Accounts Serviced by Fidelity: | institutional.fidelity.com | 1-877-208-0098 |
Contents
Board Approval of Investment Advisory Contracts and Management Fees |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-800-835-5092 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2019 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT. Forms N-PORT are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-PORT may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Investment Summary (Unaudited)
Top Ten Stocks as of May 31, 2019
% of fund's net assets | |
Total System Services, Inc. | 4.2 |
VeriSign, Inc. | 3.7 |
Roper Technologies, Inc. | 2.7 |
Fiserv, Inc. | 2.4 |
Wellcare Health Plans, Inc. | 2.4 |
Dollar General Corp. | 2.2 |
ResMed, Inc. | 2.2 |
Workday, Inc. Class A | 2.1 |
ON Semiconductor Corp. | 1.9 |
Edwards Lifesciences Corp. | 1.9 |
25.7 |
Top Five Market Sectors as of May 31, 2019
% of fund's net assets | |
Information Technology | 36.1 |
Industrials | 16.6 |
Health Care | 15.2 |
Consumer Discretionary | 13.2 |
Financials | 7.4 |
Asset Allocation (% of fund's net assets)
As of May 31, 2019 * | ||
Stocks | 98.7% | |
Short-Term Investments and Net Other Assets (Liabilities) | 1.3% |
* Foreign investments - 1.4%
Schedule of Investments May 31, 2019 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.7% | |||
Shares | Value | ||
COMMUNICATION SERVICES - 3.7% | |||
Entertainment - 3.2% | |||
Electronic Arts, Inc. (a) | 7,200 | $670,176 | |
Live Nation Entertainment, Inc. (a) | 30,091 | 1,830,135 | |
Take-Two Interactive Software, Inc. (a) | 16,800 | 1,816,920 | |
4,317,231 | |||
Interactive Media & Services - 0.4% | |||
TripAdvisor, Inc. (a) | 13,100 | 553,737 | |
Media - 0.1% | |||
Sinclair Broadcast Group, Inc. Class A | 2,100 | 112,728 | |
TOTAL COMMUNICATION SERVICES | 4,983,696 | ||
CONSUMER DISCRETIONARY - 13.2% | |||
Distributors - 1.0% | |||
Pool Corp. | 7,342 | 1,319,945 | |
Diversified Consumer Services - 1.5% | |||
Service Corp. International | 46,000 | 2,018,020 | |
Hotels, Restaurants & Leisure - 1.2% | |||
Domino's Pizza, Inc. | 4,242 | 1,185,639 | |
Planet Fitness, Inc. (a) | 5,693 | 435,344 | |
1,620,983 | |||
Internet & Direct Marketing Retail - 0.6% | |||
GrubHub, Inc. (a)(b) | 11,200 | 729,680 | |
Multiline Retail - 2.2% | |||
Dollar General Corp. | 23,000 | 2,927,440 | |
Specialty Retail - 4.6% | |||
AutoZone, Inc. (a) | 1,240 | 1,273,616 | |
Best Buy Co., Inc. | 12,933 | 810,511 | |
Ross Stores, Inc. | 25,745 | 2,394,028 | |
Ulta Beauty, Inc. (a) | 4,300 | 1,433,534 | |
Urban Outfitters, Inc. (a) | 10,000 | 224,700 | |
6,136,389 | |||
Textiles, Apparel & Luxury Goods - 2.1% | |||
Carter's, Inc. | 10,000 | 841,100 | |
Deckers Outdoor Corp. (a) | 1,033 | 157,119 | |
Levi Strauss & Co. Class A (a) | 2,379 | 46,200 | |
VF Corp. | 21,717 | 1,778,188 | |
2,822,607 | |||
TOTAL CONSUMER DISCRETIONARY | 17,575,064 | ||
CONSUMER STAPLES - 3.1% | |||
Beverages - 0.8% | |||
Brown-Forman Corp. Class B (non-vtg.) | 22,242 | 1,111,655 | |
Food Products - 1.2% | |||
The Hershey Co. | 11,700 | 1,543,932 | |
Household Products - 0.8% | |||
Clorox Co. | 7,500 | 1,116,075 | |
Personal Products - 0.3% | |||
Estee Lauder Companies, Inc. Class A | 1,860 | 299,516 | |
Herbalife Nutrition Ltd. (a) | 3,000 | 125,340 | |
424,856 | |||
TOTAL CONSUMER STAPLES | 4,196,518 | ||
FINANCIALS - 7.4% | |||
Banks - 0.9% | |||
Citizens Financial Group, Inc. | 23,400 | 762,372 | |
Huntington Bancshares, Inc. | 30,434 | 384,990 | |
1,147,362 | |||
Capital Markets - 6.1% | |||
LPL Financial | 17,800 | 1,427,916 | |
MarketAxess Holdings, Inc. | 4,652 | 1,385,459 | |
Moody's Corp. | 13,238 | 2,420,965 | |
MSCI, Inc. | 10,200 | 2,244,102 | |
S&P Global, Inc. | 2,900 | 620,252 | |
Tradeweb Markets, Inc. Class A | 620 | 27,956 | |
8,126,650 | |||
Insurance - 0.4% | |||
Progressive Corp. | 7,021 | 556,625 | |
TOTAL FINANCIALS | 9,830,637 | ||
HEALTH CARE - 15.2% | |||
Health Care Equipment & Supplies - 6.2% | |||
DexCom, Inc. (a) | 10,800 | 1,310,040 | |
Edwards Lifesciences Corp. (a) | 14,600 | 2,492,220 | |
Intuitive Surgical, Inc. (a) | 1,293 | 601,051 | |
Masimo Corp. (a) | 4,500 | 588,330 | |
ResMed, Inc. | 25,234 | 2,879,704 | |
Teleflex, Inc. | 1,300 | 374,790 | |
8,246,135 | |||
Health Care Providers & Services - 3.0% | |||
Elanco Animal Health, Inc. | 26,000 | 813,280 | |
Wellcare Health Plans, Inc. (a) | 11,487 | 3,172,595 | |
3,985,875 | |||
Health Care Technology - 1.1% | |||
Veeva Systems, Inc. Class A (a) | 9,830 | 1,516,671 | |
Life Sciences Tools & Services - 4.9% | |||
Bruker Corp. | 12,500 | 522,125 | |
Charles River Laboratories International, Inc. (a) | 17,238 | 2,162,507 | |
Mettler-Toledo International, Inc. (a) | 3,200 | 2,313,888 | |
Waters Corp. (a) | 7,655 | 1,536,435 | |
6,534,955 | |||
TOTAL HEALTH CARE | 20,283,636 | ||
INDUSTRIALS - 16.6% | |||
Aerospace & Defense - 3.3% | |||
Huntington Ingalls Industries, Inc. | 10,376 | 2,128,325 | |
TransDigm Group, Inc. (a) | 5,016 | 2,211,805 | |
4,340,130 | |||
Commercial Services & Supplies - 3.8% | |||
Cintas Corp. | 10,032 | 2,225,399 | |
Copart, Inc. (a) | 26,170 | 1,870,632 | |
KAR Auction Services, Inc. | 16,000 | 899,520 | |
4,995,551 | |||
Electrical Equipment - 2.1% | |||
AMETEK, Inc. | 17,153 | 1,404,659 | |
Fortive Corp. | 18,900 | 1,439,235 | |
2,843,894 | |||
Industrial Conglomerates - 3.3% | |||
ITT, Inc. | 13,767 | 793,255 | |
Roper Technologies, Inc. | 10,652 | 3,663,436 | |
4,456,691 | |||
Machinery - 2.1% | |||
IDEX Corp. | 11,373 | 1,736,771 | |
Toro Co. | 17,052 | 1,111,108 | |
2,847,879 | |||
Professional Services - 2.0% | |||
CoStar Group, Inc. (a) | 1,021 | 520,342 | |
Equifax, Inc. | 8,065 | 975,059 | |
Verisk Analytics, Inc. | 8,700 | 1,218,000 | |
2,713,401 | |||
TOTAL INDUSTRIALS | 22,197,546 | ||
INFORMATION TECHNOLOGY - 36.1% | |||
Communications Equipment - 1.7% | |||
Arista Networks, Inc. (a) | 3,000 | 733,770 | |
F5 Networks, Inc. (a) | 11,300 | 1,492,504 | |
2,226,274 | |||
Electronic Equipment & Components - 3.0% | |||
Amphenol Corp. Class A | 24,100 | 2,096,700 | |
CDW Corp. | 15,500 | 1,525,820 | |
Keysight Technologies, Inc. (a) | 5,800 | 435,754 | |
4,058,274 | |||
IT Services - 14.0% | |||
Adyen BV (c) | 102 | 82,135 | |
Broadridge Financial Solutions, Inc. | 6,721 | 839,251 | |
EPAM Systems, Inc. (a) | 3,900 | 673,101 | |
Fiserv, Inc. (a) | 37,752 | 3,241,387 | |
Global Payments, Inc. | 13,240 | 2,039,490 | |
Total System Services, Inc. | 45,600 | 5,632,966 | |
VeriSign, Inc. (a) | 24,900 | 4,855,002 | |
Worldpay, Inc. (a) | 10,649 | 1,295,344 | |
18,658,676 | |||
Semiconductors & Semiconductor Equipment - 9.5% | |||
Analog Devices, Inc. | 17,678 | 1,708,048 | |
Broadcom, Inc. | 1,300 | 327,132 | |
KLA-Tencor Corp. | 15,405 | 1,587,793 | |
Lam Research Corp. | 13,135 | 2,293,502 | |
NXP Semiconductors NV | 9,717 | 856,651 | |
ON Semiconductor Corp. (a) | 140,834 | 2,501,212 | |
Skyworks Solutions, Inc. | 19,900 | 1,325,937 | |
Xilinx, Inc. | 20,600 | 2,107,586 | |
12,707,861 | |||
Software - 7.9% | |||
Adobe, Inc. (a) | 2,483 | 672,645 | |
Black Knight, Inc. (a) | 13,329 | 755,621 | |
Cadence Design Systems, Inc. (a) | 20,600 | 1,309,542 | |
Check Point Software Technologies Ltd. (a) | 7,700 | 849,156 | |
Citrix Systems, Inc. | 20,100 | 1,891,812 | |
Fortinet, Inc. (a) | 12,500 | 906,000 | |
Intuit, Inc. | 1,873 | 458,604 | |
Parametric Technology Corp. (a) | 2,903 | 244,026 | |
ServiceNow, Inc. (a) | 1,450 | 379,799 | |
Synopsys, Inc. (a) | 2,200 | 256,168 | |
Workday, Inc. Class A (a) | 13,946 | 2,846,658 | |
10,570,031 | |||
TOTAL INFORMATION TECHNOLOGY | 48,221,116 | ||
MATERIALS - 0.3% | |||
Chemicals - 0.3% | |||
Sherwin-Williams Co. | 932 | 390,927 | |
REAL ESTATE - 2.7% | |||
Equity Real Estate Investment Trusts (REITs) - 2.7% | |||
Equity Lifestyle Properties, Inc. | 13,700 | 1,666,742 | |
SBA Communications Corp. Class A (a) | 8,800 | 1,904,408 | |
3,571,150 | |||
UTILITIES - 0.4% | |||
Independent Power and Renewable Electricity Producers - 0.4% | |||
NRG Energy, Inc. | 16,400 | 558,256 | |
TOTAL COMMON STOCKS | |||
(Cost $110,964,854) | 131,808,546 | ||
Money Market Funds - 1.5% | |||
Fidelity Cash Central Fund 2.41% (d) | 1,690,282 | 1,690,620 | |
Fidelity Securities Lending Cash Central Fund 2.42% (d)(e) | 323,623 | 323,655 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $2,014,275) | 2,014,275 | ||
TOTAL INVESTMENT IN SECURITIES - 100.2% | |||
(Cost $112,979,129) | 133,822,821 | ||
NET OTHER ASSETS (LIABILITIES) - (0.2)% | (251,816) | ||
NET ASSETS - 100% | $133,571,005 |
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $82,135 or 0.1% of net assets.
(d) Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements are available on the SEC's website or upon request.
(e) Investment made with cash collateral received from securities on loan.
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned |
Fidelity Cash Central Fund | $29,625 |
Fidelity Securities Lending Cash Central Fund | 520 |
Total | $30,145 |
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
May 31, 2019 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $323,144) — See accompanying schedule: Unaffiliated issuers (cost $110,964,854) | $131,808,546 | |
Fidelity Central Funds (cost $2,014,275) | 2,014,275 | |
Total Investment in Securities (cost $112,979,129) | $133,822,821 | |
Cash | 20,099 | |
Receivable for investments sold | 539,010 | |
Receivable for fund shares sold | 230,839 | |
Dividends receivable | 96,670 | |
Distributions receivable from Fidelity Central Funds | 4,182 | |
Other receivables | 828 | |
Total assets | 134,714,449 | |
Liabilities | ||
Payable for investments purchased | $600,245 | |
Payable for fund shares redeemed | 168,672 | |
Accrued management fee | 50,887 | |
Collateral on securities loaned | 323,640 | |
Total liabilities | 1,143,444 | |
Net Assets | $133,571,005 | |
Net Assets consist of: | ||
Paid in capital | $119,989,509 | |
Total distributable earnings (loss) | 13,581,496 | |
Net Assets, for 11,269,247 shares outstanding | $133,571,005 | |
Net Asset Value, offering price and redemption price per share ($133,571,005 ÷ 11,269,247 shares) | $11.85 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended May 31, 2019 (Unaudited) | ||
Investment Income | ||
Dividends | $548,211 | |
Income from Fidelity Central Funds | 30,145 | |
Total income | 578,356 | |
Expenses | ||
Management fee | $288,389 | |
Independent trustees' fees and expenses | 348 | |
Commitment fees | 183 | |
Total expenses before reductions | 288,920 | |
Expense reductions | (630) | |
Total expenses after reductions | 288,290 | |
Net investment income (loss) | 290,066 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | (3,715,652) | |
Fidelity Central Funds | 9 | |
Total net realized gain (loss) | (3,715,643) | |
Change in net unrealized appreciation (depreciation) on investment securities | 10,734,659 | |
Net gain (loss) | 7,019,016 | |
Net increase (decrease) in net assets resulting from operations | $7,309,082 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended May 31, 2019 (Unaudited) | Year ended November 30, 2018 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $290,066 | $950,701 |
Net realized gain (loss) | (3,715,643) | (3,199,393) |
Change in net unrealized appreciation (depreciation) | 10,734,659 | 4,122,474 |
Net increase (decrease) in net assets resulting from operations | 7,309,082 | 1,873,782 |
Distributions to shareholders | (1,016,166) | (240,378) |
Share transactions | ||
Proceeds from sales of shares | 11,957,219 | 72,393,898 |
Reinvestment of distributions | 1,016,166 | 240,378 |
Cost of shares redeemed | (18,687,903) | (21,786,663) |
Net increase (decrease) in net assets resulting from share transactions | (5,714,518) | 50,847,613 |
Total increase (decrease) in net assets | 578,398 | 52,481,017 |
Net Assets | ||
Beginning of period | 132,992,607 | 80,511,590 |
End of period | $133,571,005 | $132,992,607 |
Other Information | ||
Shares | ||
Sold | 1,037,503 | 6,382,053 |
Issued in reinvestment of distributions | 101,922 | 21,833 |
Redeemed | (1,734,730) | (1,892,561) |
Net increase (decrease) | (595,305) | 4,511,325 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Growth Strategies K6 Fund
Six months ended (Unaudited) May 31, | Years endedNovember 30, | ||
2019 | 2018 | 2017 A | |
Selected Per–Share Data | |||
Net asset value, beginning of period | $11.21 | $10.95 | $10.00 |
Income from Investment Operations | |||
Net investment income (loss)B | .03 | .09C | .04 |
Net realized and unrealized gain (loss) | .70 | .20 | .91 |
Total from investment operations | .73 | .29 | .95 |
Distributions from net investment income | (.09) | (.03) | – |
Total distributions | (.09) | (.03) | – |
Net asset value, end of period | $11.85 | $11.21 | $10.95 |
Total ReturnD,E | 6.62% | 2.68% | 9.50% |
Ratios to Average Net AssetsF,G | |||
Expenses before reductions | .45%H | .45% | .45%H |
Expenses net of fee waivers, if any | .45%H | .45% | .45%H |
Expenses net of all reductions | .45%H | .45% | .45%H |
Net investment income (loss) | .45%H | .76%C | .81%H |
Supplemental Data | |||
Net assets, end of period (000 omitted) | $133,571 | $132,993 | $80,512 |
Portfolio turnover rateI | 52%H,J | 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 (Unaudited)
For the period ended May 31, 2019
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 ranged from less than .005% to .01%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investments Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy.
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.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction.
Distributions are declared and recorded 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 | $23,645,308 |
Gross unrealized depreciation | (2,858,198) |
Net unrealized appreciation (depreciation) | $20,787,110 |
Tax cost | $113,035,711 |
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Fund is permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of prior fiscal period end and is subject to adjustment.
No expiration | |
Short-term | $(3,687,609) |
Restricted Securities. The Fund may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and in-kind transactions, aggregated $32,485,835 and $42,674,357, respectively.
Unaffiliated Exchanges In-Kind. During the period, the Fund received investments and cash valued at $4,553,966 in exchange for 372,056 shares of the Fund. The amount of in-kind exchanges is included in share transactions in the accompanying Statement of Changes in Net Assets.
Prior Fiscal Year Unaffiliated Exchanges In-Kind. During the prior 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.
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 $538 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 $183 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 $520. 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 $552 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 $78.
9. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (December 1, 2018 to May 31, 2019).
Actual Expenses
The first line of the accompanying table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
Annualized Expense Ratio-A | Beginning Account Value December 1, 2018 | Ending Account Value May 31, 2019 | Expenses Paid During Period-B December 1, 2018 to May 31, 2019 | |
Actual | .45% | $1,000.00 | $1,066.20 | $2.32 |
Hypothetical-C | $1,000.00 | $1,022.69 | $2.27 |
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 182/365 (to reflect the one-half year period).
C 5% return per year before expenses
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Growth Strategies K6 Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract with Fidelity Management & Research Company (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund. FMR and the sub-advisers are referred to herein as the Investment Advisers. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.
The Board meets regularly and, at each of its meetings, covers an extensive agenda of topics and materials and considers factors that are relevant to its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. The Board has established various standing committees (Committees), each composed of and chaired by Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration of the renewal of the fund's Advisory Contracts. The Board also meets as needed to review matters specifically related to the Board's annual consideration of the renewal of the Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through joint ad hoc committees to discuss certain matters relevant to all of the Fidelity funds.
At its January 2019 meeting, the Board unanimously determined to renew the fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the fund's management fee and total expense ratio relative to peer funds; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationships with the fund; and (iv) the extent to which, if any, economies of scale exist and would be realized as the fund grows, and whether any economies of scale are appropriately shared with fund shareholders.
In considering whether to renew the Advisory Contracts for the fund, the Board reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts was in the best interests of the fund and its shareholders and that the compensation payable under the Advisory Contracts was fair and reasonable. The Board's decision to renew the Advisory Contracts was not based on any single factor, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, was aware that shareholders of the fund have a broad range of investment choices available to them, including a wide choice among funds offered by Fidelity's competitors, and that the fund's shareholders, who have the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, which is part of the Fidelity family of funds.
Nature, Extent, and Quality of Services Provided. The Board considered Fidelity's staffing as it relates to the fund, including the backgrounds of investment personnel of Fidelity, and also considered the fund's investment objective, strategies, and related investment philosophy. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the investment personnel compensation program and whether this structure provides appropriate incentives to act in the best interests of the fund. Additionally, the Board considered the portfolio managers' investments, if any, in the funds that they manage.Resources Dedicated to Investment Management and Support Services. The Board and the Fund Oversight and Research Committees reviewed the general qualifications and capabilities of Fidelity's investment staff, including its size, education, experience, and resources, as well as Fidelity's approach to recruiting, training, managing, and compensating investment personnel. The Board noted that Fidelity has continued to increase the resources devoted to non-U.S. offices, including expansion of Fidelity's global investment organization. The Board also noted that Fidelity's analysts have extensive resources, tools and capabilities that allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and guarantors. Further, the Board considered that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered Fidelity's trading, risk management, compliance, and technology and operations capabilities and resources, which are integral parts of the investment management process.Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by the Investment Advisers and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for the fund; (ii) the nature and extent of the supervision of third party service providers, principally custodians, subcustodians, and pricing vendors; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures. The Board also reviewed the allocation of fund brokerage, including allocations to brokers affiliated with the Investment Advisers, the use of brokerage commissions to pay fund expenses, and the use of "soft" commission dollars to pay for research services.The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value and convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through telephone representatives and over the Internet, investor education materials and asset allocation tools, and the expanded availability of Fidelity Investor Centers.The Board noted that it and the boards of certain other Fidelity funds had formed an ad hoc Committee on Transfer Agency Fees to review the variety of transfer agency fee structures throughout the industry and Fidelity's competitive positioning with respect to industry participants.Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including: (i) continuing to dedicate additional resources to Fidelity's investment research process, which includes meetings with management of issuers of securities in which the funds invest, and to the support of the senior management team that oversees asset management; (ii) continuing efforts to enhance Fidelity's global research capabilities; (iii) launching new funds and making other enhancements to meet client needs; (iv) launching new share classes of existing funds; (v) eliminating purchase minimums and broadening eligibility requirements for certain funds and share classes; (vi) reducing management fees and total expenses for certain growth equity funds and index funds; (vii) lowering expense caps for certain existing funds and classes, and converting certain voluntary expense caps to contractual caps, to reduce expenses borne by shareholders; (viii) eliminating short-term redemption fees for funds that had such fees; (ix) rationalizing product lines and gaining increased efficiencies from fund mergers and share class consolidations; (x) continuing to develop, acquire and implement systems and technology to improve services to the funds and shareholders, strengthen information security, and increase efficiency; and (xi) continuing to implement enhancements to further strengthen Fidelity's product line to increase investors' probability of success in achieving their investment goals, including retirement income goals.Investment Performance. The Board considered whether the fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions and its performance history.The Board took into account discussions that occur at Board meetings throughout the year with representatives of the Investment Advisers about fund investment performance. In this regard the Board noted that as part of regularly scheduled fund reviews and other reports to the Board on fund performance, the Board considers annualized return information for the fund for different time periods, measured against an appropriate securities market index ("benchmark index") and a peer group of funds with similar objectives ("peer group"), if any. In its evaluation of fund investment performance, the Board gave particular attention to information indicating changes in performance of certain Fidelity funds for specific time periods and discussed with the Investment Advisers the reasons for any overperformance or underperformance.In addition to reviewing absolute and relative fund performance, the Independent Trustees periodically consider the appropriateness of fund performance metrics in evaluating the results achieved. In general, the Independent Trustees believe that fund performance should be evaluated based on net performance (after fees and expenses) of both the highest performing and lowest performing fund share classes, where applicable, compared to appropriate benchmark indices, over appropriate time periods that may include full market cycles, and compared to peer groups, as applicable, over the same periods, taking into account relevant factors including the following: general market conditions; issuer-specific information; and fund cash flows and other factors.The Independent Trustees recognize that shareholders evaluate performance on a net basis over their own holding periods, for which one-, three-, and five-year periods are often used as a proxy. For this reason, the performance information reviewed by the Board also included net total return information for the fund and an appropriate benchmark index and peer group for the most recent one-year period ended June 30, 2018, as shown below. Returns are shown compared to the 25th percentile (top of box, 75% beaten) and 75th percentile (bottom of box, 25% beaten) of the peer universe.Fidelity Growth Strategies K6 Fund
Fidelity Growth Strategies K6 Fund
FEGK6-SANN-0719
1.9883994.102
Item 2.
Code of Ethics
Not applicable.
Item 3.
Audit Committee Financial Expert
Not applicable.
Item 4.
Principal Accountant Fees and Services
Not applicable.
Item 5.
Audit Committee of Listed Registrants
Not applicable.
Item 6.
Investments
(a)
Not applicable.
(b)
Not applicable
Item 7.
Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not applicable.
Item 8.
Portfolio Managers of Closed-End Management Investment Companies
Not applicable.
Item 9.
Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
Not applicable.
Item 10.
Submission of Matters to a Vote of Security Holders
There were no material changes to the procedures by which shareholders may recommend nominees to the Fidelity Mt. Vernon Street Trust’s Board of Trustees.
Item 11.
Controls and Procedures
(a)(i) The President and Treasurer and the Chief Financial Officer have concluded that the Fidelity Mt. Vernon Street Trust’s (the “Trust”) disclosure controls and procedures
(as defined in Rule 30a-3(c) under the Investment Company Act) provide reasonable assurances that material information relating to the Trust is made known to them by the appropriate persons, based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this report.
(a)(ii) There was no change in the Trust’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act) that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Trust’s internal control over financial reporting.
Item 12.
Disclosure of Securities Lending Activities for Closed-End Management
Investment Companies
Not applicable.
Item 13.
Exhibits
(a) | (1) | Not applicable. |
(a) | (2) | Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT. |
(a) | (3) | Not applicable. |
(b) | Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) is furnished and attached hereto as Exhibit 99.906CERT. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Fidelity Mt. Vernon Street Trust
By: | /s/Stacie M. Smith |
Stacie M. Smith | |
President and Treasurer | |
Date: | July 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: | July 24, 2019 |
By: | /s/John J. Burke III |
John J. Burke III | |
Chief Financial Officer | |
Date: | July 24, 2019 |